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Sherwood, J.
The plaintiff brought an action on the case against George Cooper in the circuit court for the county of Muskegon, laying her damages. The suit was commenced by capias, and the defendants, on the 28th day of August, became special bail for Cooper to pay such sum as might be awarded against him in the suit, or that he should surrender himself on execution in case of default in payment. At the April term of court judgment was rendered against Cooper for the sum of $573.50. On the 21st day of November, 1883, a fi. fa. was issued upon the judgment against Cooper, returnable the 12th day of December following, and was returned nulla bona on the 14th day of December thereafter. On the 19th day of December, 1883, a ca. sa. was issued against Cooper and delivered to the sheriff of Muskegon county, returnable January 8, 1884, at which time the sheriff made return thereof non est inventus. After these proceedings the said Cooper, failing to pay the judgment, or surrender himself, or be surrendered by his bail, the plaintiff brought this suit against the defendants, who. were Cooper’s sureties.
The declaration sets forth the above facts, and claims the right to recover the amount of the judgment obtained against Cooper, viz., $573.50. To which declaration the defendant interposed a special demurrer, assigning eight causes, as follows : “ First, it is not stated and shown in and by said declaration that the said defendants had notice of the rendition of said judgment; or second, that said defendants had any notice of the issuing or return of said execution . against the goods and chattels, and for want thereof against the lands and tenements, of the said Cooper; third, that said defendants had any notice of the issuing or return of said execution against the body of said Cooper; fourth, it is not in' and by said declaration alleged, stated, or shown that the said execution against the goods and chattels, etc., was issued within a reasonable time after the rendition of said judgment; or fifth, that said execution against the body of said Cooper was issued within a reasonable time after the rendition of said judgment against said Cooper; or sixth, it is not shown in and by said declaration that the said plaintiff, or her attorney, used due diligence to recover the amount of the said judgment of or from said Cooper ; or seventh, to take the body of said Cooper in execution ; eighth, it is not shown in and by said declaration that the said plaintiff, or her attorney, ever made any demand upon the said defendants, or either of them, for any sum of money sought to be recovered in this suit before said declaration was filed.”
The demurrer was argued before Judge Russell, who sustained the demurrer principally upon the ground “ that the plaintiff’s declaration does not well and sufficiently state the reason for the delay in issuing execution, and the diligence used by the plaintiff with reference to the collection of his execution.”
The record shows that about seven months elapsed after the rendition of the judgment before the fi. fa. was issued. The delay is unexplained, and is claimed by defendant’s counsel as showing such a degree of negligence as to prevent the plaintiff’s right to recover. We do not agree with counsel upon this point. We do not think, as a matter of law, we can say a delay of eight months, in the absence of any showing that the defendants on that account have been specially injured thereby, is sufficient to defeat the plaintiff’s cause of action. There is no statute attaching such consequences to the delay, and we know of no practice requiring it.
The declaration shows the proper executions issued and returned, and in the order required by statute, precedent to the bringing of plaintiff’s action in this case. It was not necessary for the plaintiff to give the defendants any special notice of the judgment rendered against Cooper, nor of the issuing and return of the execution upon the same, before bringing this suit. When they became his bail, they had notice of the pendency of the suit and the extent of the liability they assumed, and they were ■ required to take notice after that at their peril of the arrival of the contingency when the plaintiff’s right accrued to enforce the liability against them. No ■demand was required to be made by the plaintiff, her agents or attorneys* upon the defendants for the satisfaction of her ■claim before bringing her suit therefor against them. If‘ the defendants wished to avoid suit by payment, it was their duty to discharge their obligation as soon as the plaintiff’s right of action accrued thereon, and no demand was necessary.
The judgment at the circuit must be reversed, the demurrer overruled, and the defendants allowed the usual time for pleading. The record will be remanded, and the plaintiff allowed her costs.
The other Justices concurred. | [
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Cooley, 0. J.
This is an action of trespass. The following is a statement of the case, as made for the plaintiff, for the argument in this Court:
“ The plaintiff and defendant are corporations, which for twenty-five years and more have been engaged in copper mining in Ontonagon county. Their mines adjoin each other. Each owns the land in fee on which its mine is situated. The plaintiff, in carrying on jt.s mining operations, left a wall of rock, from fifteen to eighteen feet thick, next to the boundary line of defendant’s mine. This was left as a barrier and protection to its mine against water or other encroachments from the Minnesota. The Minnesota left no such barrier; it not only worked up to the boundary line, but broke through into defendant’s mine. About the year 1866 the plaintiff, at about forty feet above its fourth level, and from twenty to twenty-five feet from the boundary line, drilled a hole, of the ordinary size, about one and one-half inches in diameter, and when the blast was fired it blew through into the opening which had been previously made by the defendant into the plaintiff’s territory. The drill-hole was left through from two to two and one-half feet of solid rock. Capt. Chynoweth, then the agent of plaintiff, examined this hole and the surroundings, and immediately gave orders to cease work there. This was done as a further protection against the defendant. No work was done at this point after that until the winter of 1883-4. The plaintiff had no knowledge of any further trespass at this point until February, 1884, under the circumstances related hereafter. The pump of the defendant was stopped in 1870, and that of the plaintiff in 1871 or 1872. Plaintiff’s mine filled up to the adit level in about five years. Since 1870 the defendant has worked its Tnine more or less upon tribute, and so did the plaintiff, until May 1880, when it resumed work. In order to avoid liability for the trespass committed by it at the plaintiff’s fourth level (being the defendant’s fifth level), the defendant sought to show, and did show, another hole at the first level, between the two mines. A continuation of the inquiry showed that this hole also was about twenty feet from the boundary line, on the plaintiff’s side, and that defendant had here trespassed twenty feet upon plaintiff’s land. We do not think that the history of mining upon Lake Superior will disclose another instance of such reckless disregard of the rights of an adjoining mine-owner. This encroachment and trespass by the defendant at the defendant’s fifth level occurred about the year 1859.
In May, 1880, the plaintiff resumed mining operations and commenced to pump the water from its mine. The six-inch pump, formerly used by the mine, and which had always been adequate to keep the mine unwatered, proved wholly inadequate, and it was compelled to get a twelve-inch pump, and even this was not sufficient in the spring; and in 1882 the water gained on them one hundred and twenty feet, and in 1883, two hundred and twenty-two feet, with the pump working night and day. Capt. Parnel 1, the agent of the plaintiff’s mine, was thoroughly acquainted with it, having worked in the mine years before ; he soon became convinced that the bulk of the water came from the defendant’s mine. He found that the water came from the fourth level. He cleaned out the level, and, on reaching the point where the drill-hole had been made years before, he found that the rock had begn all blasted away from the Minnesota side, and that the water was rushing through an opening from twenty to twenty-five feet high and twelve feet wide. When discovered there was a volume of water seven feet wide flowing from the Minnesota into the National. When the defendant made its second encroachment at this point does not clearly appear; according to the defendant’s witness Spargo it was in 1871 or 1872. This witness was an employe of the defendant, and one of its tributors. He says he saw the hole from the Minnesota side, and it was then six. to eight feet high, and from four to five feet wide. William George, a witness for defendant, last saw the hole in 1870 or 1871. It was then about a foot in diameter. The witness was then working for the defendant as tributer and captain. Thomas James was in charge of the mine. He admits that the defendant’s tributers were then mining there. This same Capt. James has,been in charge of the defendant’s mine as agent ever since.
It was not denied in the court below, and we presume will not be in this Court, that the defendant committed these several acts of trespass. But, in proof of the fact, we refer to the admission of the agent Harris, the evidence that the track of a tram-road, sollars, and a system of timbering were found constructed from the fifth level of defendant’s mine into this opening, and the testimony of plaintiff’s witnesses already referred to. Furthermore, it is beyond dispute that the defendant hnoiuingly and willfully committed these acts of trespass, and broke down the barrier which the plaintiff had so carefully left to protect its mine for all future time, and against all possible dangers.
About 1870 the defendant concluded to abandon regular mining, stopped its pumps, and commenced what is known among miners as robbing the mine. It placed its tributers at work at the bottom of the mine, took out all the copper ground that could be found, took out the supports of the roof of the mine, and allowed it to settle or cave in. This was all done under the direction of the defendant’s agent, ■James. The defendant’s mine is situated upon a hill or mountain side. The result was that the surface of the ground became depressed, and openings were made in it. Defendant’s agent, James, testified to openings of this character on the surface of the Minnesota, amounting in all to over five hundred feet in length ; some were three or four feet wide. Into these openings the water from rains and melting snow ran into the defendant’s mine, and from thence flowed into the plaintiff’s mine, through the opening at its fourth level. But for these openings the water would have run down the hill-side. As one of defendant’s own witnesses expressed it, ‘ There has been a general falling away of the bluff.’ Thei’e were no such openings on the surface of the National. In fact, we everywhere nnd the plaintiff conducting its mining •operations with due regard to the rights of adjoining owners; while we find the defendant conducting its operations in the most reckless disregard of such rights.”
The above -is a sufficient statement of the facts for a discussion of the principal question in the case, viz.: Is the plaintiff’s right of action barred by the statute of limitations ?
The count in .the declaration on which the parties went to 'trial alleged that the defendant, on March 15, 1882, and on divers days and .times between that day and the commencement of suit, with force and arms broke down the partition wall between the mine of the plaintiff and the mine of the ■defendant, and let the water from its said mine into the mine ■of the plaintiff, and then and there filled the mine of the plaintiff with water, greatly damaging its timbering, workings, walls, and machinery, hindered and prevented the plaintiff from carrying on and transacting its lawful and necessary affairs and business, caused the plaintiff great damage and expense in removing water from its mine, etc.
The defendant pleaded the general issue, with notice that the statute of limitations would be relied upon. The plaintiff recovered a large judgment.
I.The time limited for the commencement of suit for trespass upon lands in this State is two years from the time the right of action accrues. How. Stat. § 8714. This action was commenced, in May, 1884, and it is not claimed that damages for the original trespass can be recovered in it. The contention of the plaintiff may be succinctly stated as follows:
1. Had the plaintiff instituted suit within two years from the original trespass, the recovery would have been limited to such damages as were the direct and immediate result of the trespass. The subsequent flowage of water through the opening was not the direct, immediate, or necessary result of breaking down the barriers; therefore no damages could have been recovered therefor in an action so brought.
2. Two trespasses may be the result of one act. In other words, one trespass may cause another, an,d he who commits the wrongful act in s.uch a case will be responsible for both trespasses.
3. In this case no action accrued for the flowage of water into the plaintiff’s mine until the flowage actually took place, but when the flowage occurred as a result of defendant’s wrongful act it was a trespass, and if it continued from day to day there was a continuous trespass for which repeated actions might be maintained.
Upon these positions the plaintiff plants its case, and unless they are sound in law the recovery cannot be supported. All right of recovery for the original trespass, which consisted in breaking through into the plaintiff’s mine, was long since barred, and it is not claimed that there was, from the time of the first wrong, a continuous trespass which can give a right of action now. The merely leaving an opening between the two mines is not the wrong for which suit is brought, but it'is the flowing of water through the opening which is complained of as a new trespass; the original wrongful act of the defendant in breaking through being the cause, and the injurious consequence when it happened, connecting itself with the cause to complete the right of action.
In support of its contention that the case- before us may be- regarded as one of continuous trespass from the first, several authorities are cited for the plaintiff, which may be briefly noticed. Among them is Holmes v. Wilson 10 Ad. & El. 503. It appeared in that case that a turnpike company liad built buttresses on the plaintiff’s land for the support of its road. The act was a trespass, and the plaintiff recovered damages therefor; but this, it was held, did not preclude its maintaining a subsequent action for the continuance of the buttresses where they had been wrongfully placed. The ground of the decision was that in the first suit damages could be recovered only for the continuance of the trespass to the time of its institution. There could be no legal presumption that the turnpike company would persist in its wrongful conduct, and, consequently, prospective damages, which would only be recoverable on the ground of such persistent wrong-doing, would not have been within the compass of the first recovery. The cases of Bowyer v. Coole 4 C. B. 236; Thompson v. Gibson 7 M. & W. 456; Russell v. Brown 63 Me. 203; and Powers v. Council Bluffs 45 Ia. 652, are all decided upon the same principle. Cumberland &c. Co. v. Hitchings 65 Me. 140, was one of the wrongful filling up of a canal by a trespasser. It was held that the trespasser was under legal obligation to remove what he had unlawfully placed on the plaintiff’s premises, and that, so long as he suffered the obstruction to remain, he was guilty-of a continuous trespass from day to day. In Adams v. Railroad Co. 18 Minn. 260, and Troy v Railroad Co. 23 N. H. 83, railroad companies which, by trespass, had entered upon the lands of individuals and constructed and begun the operation of railroads, were held liable as trespassers from day to day so long as the operation of the road was continued. The principle of decision in all these cases is clear and not open to question. In each of them there 'was an original wrong, but there was also a persistency in the wrong from day to day; the plaintiff’s possession was continually invaded, and his right to the exclusive occupation and enjoyment of his freehold continually encroached upon and limited. Each day, therefore, tire plaintiff suffered a new wrong, but no single suit could be made to embrace prospec tive damages, for the reason that future persistency in the wrong could not legally be assumed.
To make these cases applicable, it is necessary that it should appear that the action of the defendant has been continuously wrongful from the first. Whether it can be so regarded will be considered further on. The plaintiff, however, does not, as we have seen, rely exclusively upon this view. Its case is likened by counsel to that of a farmer, whose fences are thrown down by a trespasser; the cattle of the trespasser on a subsequent day entering through the opening. In such a case it is said there are two trespasses; the one consisting in throwing down the fences, and the other in the entry of the cattle; and the right of action for the latter would accrue at the time the entry was actually made. The plaintiff also cites and relies upon a number of eases in which the act of the party which furnishes the ground of complaint antedates the injurious consequence, as the original trespass in this case antedated the flowing from which the plaintiff has suffered damage.
One of these cases is Bank of Hartford County v. Waterman 26 Conn. 324. In that case action was brought against a sheriff for a false return to a writ of attachment. The falsity consisted in a misdescription of the land attached. When suit was brought, the period of limitation, if it was to be computed from the time the return was made, had already run ; but under the statute the plaintiff was entitled to bring suit only after he had taken out execution and had a return made upon it, which would show a necessity for a resort to the attached lands. It was only after such a return of execution that the plaintiff would suffer even nominal damage from the official misfeasance; and it was therefore a necessary consequence that the time of limitation must be computed from that time, and not from the time of the false return.
Another case is that of McGuire v. Grant 25 N. J. L. 356, which is to be referred to the same principle. The defendant removed the lateral support to the plaintiff’s land by an excavation, made within his own boundaries. Injury subsequently resulted to the plaintiff in consequence. The statute •of limitations was held to run from the time the damage occurred ; the excavation not being of itself a tort until damage resulted. The case of Bonomi v. Backhouse El. Bl. & El. 622, was like the last in principle, and was decided in the same way.
The plaintiff also, in this connection, likens its ease to that of one who, in consequence of a ditch dug upon his neighbor’s land, has water collected and thrown upon his premises to his injury. It is not the act of digging the ditch that sets the time of limitation to running in such a case, but it is the happening of the injurious consequence.
The case supposed, however, is not a case of trespass. The act of digging the ditch was not in itself a wrongful act. The owner of land is at liberty to dig as many ditches as he pleases on his own land, and he becomes a wrong-doer only when, by means of them, he causes injury to another. If he floods his neighbor’s land the ease is one of nuisance, and every successive instance of flooding is a new injury. But here, as in the case of a continuous trespass, prospective damages cannot be taken into account, because it must be presumed that wrongful conduct will be abandoned rather than persisted in, and that the party will either fill up his ditches or in some proper way guard against the recurrence of injury. Battishill v. Reed 18 C. B. 696. Cases of flooding lands by dams or other obstructions to running water are cases of this description. Baldwin, v. Calkins 10 Wend. 169; Mersereau v. Pearsall 19 N. Y. 108; Plate v. Railroad Co. 37 N. Y. 472. So are cases of diverting water, to the flow of which upon his premises the plaintiff is entitled. Langford v. Owsley 2 Bibb 215. So are cases of the -wrongful occupation of a public street, whereby the access of the plaintiff to his premises is obstructed. Carl v. Railroad Co. 46 Wis. 625. Other cases cited for the plaintiff, and resting on the same principle, are Thayer v. Brooks 17 Ohio 489; Blunt v. McCormick 3 Den. 283; Winchester v. Stevens Point 58 Wis. 350; Union Trust Co. v. Cuppy 26 Kan. 754; Spilman v. Roanoke Nav. Co. 74 N. C. 675; Loweth v. Smith 12 M. & W. 582. The case of Whitehouse v. Fellowes 10 C. B. (N. S.) 765, was one of nuisance. A turnpike company made a covered drain with gratings at intervals and catch-pits. In consequence of the insufficiency of the catch-pits, or of their not being kept in proper condition, the plaintiffs colliery was flooded every time there was a heavy shower. In an action for this flooding it -was held that every damage was a new injury and gave a new right of action. The ruling sustained the position taken for the plaintiff in the case, which was thus succinctly stated by counsel arguendo : “ The distinction which pervades the cases is this: Where the plaintiff complains of a trespass, the statute runs from the time when the act of trespass was committed, except in the case of a continuing trespass. But where the cause of action is not in itself a trespass, as an act done upon a man’s own land, and the cause of action is the consequential injury to the plaintiff, there the period of limitation runs from the time the damage is sustained.”
The case before us was one of admitted trespass, from which immediate damage resulted. Had suit been brought at that time, all the natural and probable damage to result from the wrongful act would have been taken into account, and the plaintiff would have recovered for it. But there was no continuous trespass from that time on. The defendant had built no structure on the plaintiff’s premises, was occupying no part of them with anything it had placed there, and was in no way interrupting the plaintiff’s occupation or enjoyment. All it had left there was a hole in the wall. But there is no analogy between leaving a hole in a wall on another’s premises and leaving houses or other obstructions there to encumber or hinder his occupation ; the physical hindrances are a continuance of the original -wrongful force, but the hole is only the consequence of a wrongful force which ceased to operate the moment it was made. —
If, therefore, the plaintiff had brought suit more than two years after the original trespass, and before the flooding of its mine by water flowing through the opening had begun, and if the statute of limitations had been pleaded, there could have been no recovery. The action for the original wrong ■would then have been barred, and there had been no repetition of the injury in -the mean time to give a new cause of •action. The mere continuance of the opening in the wall could not be a continuous. damage. Lloyd v. Wigney 6 Bing. 489. The right of action, if any, for which the plaintiff can complain, must therefore arise from the flowing itself as a wrongful act; there being no longer any action for the original breaking, and no continuous acts of wrong from that time until the flowing began.
The flowage caused a damage to the plaintiff; but damage alone does not give a right of action; there must be a concurrence of wrong and damage. The wrong, then, must-be found in leaving the opening unclosed and permitting the water to flow through. It must therefore rest upon an obligation on the part of the defendant either to close the opening, because persons for whose acts it was responsible had made it, or to restrain water which had collected on its own premises from flowing upon the premises of the plaintiff to its injury. The latter seems to be the ground upon which •the plaintiff chiefly relies for a recovery.
In the argument made for the plaintiff in this Court stress is laid upon the fact that the damage which has actually resulted from the flooding could not have been anticipated at •the time of the original trespass, and therefore could not then have been recovered, for. This consideration, it is urged, -ought to be decisive. But, while we agree that it is to be -considered in the case for what it is worth, it is by no means •necessarily conclusive. The plaintiff must fix some distinct wrong upon the defendant within the period of statutory .limitation, or the action must fail; and there is no such -wrong in this case unless the failure to prevent the flowing ■constitutes one. • The original act of wrong is no more in ■question now, after having been barred by the statute, than dt would have been if damages had been recovered or settled, ■for amicably; nor do we see that it can be important in a ■case like the present, where the wrong must be found in the-injurious flowing, whether there was or was not a wrong originally. If there was, it stands altogether apart from the wrong now sued for, with an interval between them- when no legal wrong could have been complained of.
The mere fact that an opening was made by the- defendant, between the two mines, would not of itself have been a tres pass unless the defendant invaded the plaintiff’s premises in making it. Each party had a right to mine 'on its own side to the boundary. Wilson v. Waddell L. R. 2 App. Cas. 95; and if the plaintiff had first done so, the defendant might have done the same at the same point, and in that way have made an opening rightfully. The difference between the case supposed and this is, that here the defendant was found to have gone beyond the boundary and committed a trespass. But suppose the defendant had then made compensation for the trespass,'so far as it was then damaging, how would the case have differed from the present ? The opening would remain, made by the defendant, through which, if the water was allowed to collect in his mine, it must eventually pass ; and if he was under obligation to keep it within the bounds of his own premises, he would be liable for allowing it to pass: otherwise not. The fact that compensation was not actually made for the breaking away of the plaintiff’s barrier is immaterial when the statute has run, as has been already explained.
The case of Clegg v. Dearden 12 Q. B. 576, is not unlike in its facts the case before us. In that case, also, there had been a wrongful breaking through from one mine to another, and an injurious fiowage of water through the opening. The facts were- found by special verdict, and Lord Denman, in-pronouncing judgment, said, “ The gist of the action, as stated in the declaration, is the keeping open and unfilled up-an aperture and excavation made’ by the defendant into-the plaintiff’s mine. By the custom the defendant was entitled to excavate up to the boundary of his mine without leaving any barrier: and the cause of action, therefore, is the-not filling up the excavation made by him on the plaintiff’s side of the boundary and within their mine. It is not, as in the case of Holmes v. Wilson 10 Ad. & El. 503, a continuing of something wrongfully placed by the defendant upon the premises of the plaintiffs; nor is it a continuing of something placed upon the land of a third person to the nuisance of the plaintiffs, as in the case of Thompson v. Gibson 7 M. & W. 456. There is a legal obligation to discontinue a trespass or remove a nuisance; but no such obligation upon a trespasser to replace what he has pulled down or destroyed, upon the land of another, though he is liable in an action of trespass to compensate in damages for the loss sustained. The defendant having made an excavation and aperture in the plaintiffs’ lánd was liable to an action of. trespass: but no cause of action arises from his omitting to re-enter the plaintiffs’ land and fill up the excavation: such an omission is neither a continuation of a trespass nor of a nuisance; nor is it the breach of any legal duty. It was, however, contended on the part of the plaintiffs, that, admitting this to be so, there nevertheless was a legal obligation or duty upon the defendant to take means to prevent the water from flowing from his mine into that of the plaintiffs through the aperture he bad made but “ the plaintiffs have not alleged any such duty or obligation in their declaration, nor is their action founded upon a breach of'any such duty, if it exists, but upon the omission to fill up the aperture made by them in the plaintiffs’ mine. It appears to us that the defendant, upon the facts found by the jury, is entitled to have the verdict entered for him upon the plea of not guilty.”
If this case was rightly decided, it should rule the one before us. It has been followed by the Supreme Court of Ohio in Williams v. Pomeroy Coal Co. 37 Ohio St. 583, in a case wdiich also closely resembles this upon its facts, and is not distinguishable in principle.
It seems to us that these cases are sound in law as well as conclusive. . The only wrongful act with which the defendant is chargeable, was committed so long before the bringing of suit that action for it was barred. Had suit been brought^ in due time, recovery might have been had for all damages which could then have been anticipated as the natural and probable result of the wrongful act. If the particular damages which have been suffered could not then have been anticipated, it is because it could not then be known that the defendant would cease mining operations and the plaintiff would not. There could be no flowing from one mine into the other while both were worked; and had the plaintiff ceased operations and the defendant continued to work, the defendant would have suffered 'the damage instead of the plaintiff. But neither party was under obligation to keep its mine pumped out for the benefit of its neighbor. Either was at liberty to discontinue its operations and abandon its mine whenever its interest should seem to require it. And had the plaintiff brought an action within two years from the time of trespass, its recovery would necessarily have been had with this undoubted right of abandonment in view. But a jury could not have awarded damages for any exercise of a right, and they could not, therefore, have given damages for a possible injury to flow from such an abandonment. This is on the plain principle that the mere exercise of a right cannot be a legal wrong to another, and if damage shall happen, it is damnum absque injuria.
This view of the case is conclusive; but there is another that is equally so. The wrong to the plaintiff consisted in breaking down the wall which had been left by it in its operations. If any damage might possibly result from this which was not then so far probable that a jury could have taken it into account in awarding damages, the plaintiff was not without redress. It would have been entitled in a suit then brought to recover the cost of restoring the barrier which had been taken away; and if it had done so, and made the restoration, the damage now complained of could not have happened. It thus appears that complete redress could have been had in a suit brought at that time; and, that being the case, the plaintiff is not entitled to recover now for an injury for which an award of means of prevention was within the right of action which was suffered to become barred. The right which then existed, being a right to recover for all the injury which had then been suffered, including the loss of the dividing barrier, it would not have been competent for the plaintiff, had suit then been brought, to ■leave the loss of the barrier out of account, awaiting possible special damages to-flow therefrom as a ground for a new suit. The wrong which had then been committed was indivisible ; and the bar of the statute must be as broad as the remedy was which it extinguishes.
The judgment must be set aside and a new trial ordered.
The other Justices concurred. | [
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Champlin, J.
' Complainant filed his bill for the purpose ■of enjoining the collection of a tax upon a portion of the gross earnings of the Merchants’ Despatch Transportation 'Company for the year 1883. The general demurrer to j;he bill was overruled, and defendant appeals..
The bill of complaint sets forth that the Merchants’ Despatch Transportation Company is a joint-stock associa tion, consisting of more than seven members, organized and existing under the laws of the state of New York, and authorized to sue in the name of its president; that during;' the year ending December 31, 1883, the company was engaged in the business of soliciting and contracting for the transportation of freight required to be carried over connecting lines of railroad, in order to reach its destination, and for the prosecution of its said business it had agencies located: generally throughout the United States and the dominion of Canada;.it issued through bills of lading for such freight-,, and caused the same to be carried by the appropriate railroad companies, and, as compensation for its services in the-premises, it was paid by the. railroad companies a definite proportion of the through rate charged and collected by said' companies for the carriage of said freights; that-during said year it was possessed of certain freight cars, which were used and run by the railroad companies in whose possession they chanced to be from time to time for the transportation upon their own and connecting lines of railroad, of through freight, principally between New York, Boston and commercial centers in the West, Northwest and Southwest, without the-State of Michigan ; that said cars were not used for carriage of freight between points situate within the State of Michigan, but wholly for the transportation of freight either passing through the State, or originating at points without the State, and destined to points within, or originating at points-within, and destined to points without, the State; that the railroad companies thus making use of cars during the year paid to. the transportation company, as compensation therefor, a definite sum per mile for the distance traveled by the said cars over their respective lines ; that the transportation company, during the year, was not running or interested im any'special fast, through, or other stock, coal or refrigerator-car freight line, or doing business in, or running cars ovei’, any of the railroads of said State otherwise than as before stated1; that -prior to April 1,1884, the Commissioner of Railroads furnished certain blank forms of a report to the company, under the Act of June 5, 1883,.-.entitled “An Act to ■provide for the taxation of persons, copartnerships, associar tions, car-loaning companies, and fast freight lines engaged in the business of running cars over any of the railroads of this State, and not being exclusively the property of any railroad company paying taxes on their gross receipts,” with the requirement that it should make up.and return said report to the office of said Commissioner on or before April 1, 1884, under the penalties of said act; that, protesting against the validity of said law, or its applicability to said company, it made and filed with the Commissioner a report, duly verified, of the gross amount of the receipts of the said transportation company for the mileage of said cars during the year 1883, while in use.in the transportation of freight between points without said State, and passing through it in transit, [which] estimated and pro-rated according to the mileage of- said ears within the State while so in use, was the sum of $95,714.50; and while in the use of transportation of freight from points without to points within, and from points within to points without, said State, estimated and pro-rated according to the mileage of said cars within the-State of Michigan while so in use, was $28,890.01, making, in the aggregate, the sum of $124,604.51; that during said year it received no money whatever on business done solely within the State, and- no money which was or could be regarded as earned during said year within the limits of the State, other than as herein before .set forth; that the law makes it the duty of the Commissioner to make and file with the Auditor General a computation, based on the report, of the amount of tax to become due, and the company is required, before the first day of July, to pay to the State Treasurer, upon the statement of the Auditor General, 2-]-per cent.- upon its gross receipts, as computed by the Commissioner, and derived from loaning, renting or hiring of cars to any railroad corporation; the tax and interest is made a lien upon all the property of the company, and in default of payment the Auditor General may issue his warrant and collect the same by distress and sale of any property of the company ; that the Commissioner determined that the gross- receipts of the transportation company under the Act is $28,890.01, and that there is due, as a tax thereon, $'722.25, for which the property of the company is liable to seizure and sale ; that the company is advised that said Act as to the gross receipts of the company, or any of its receipts or earnings from use of its cars within the State of Michigan, and the transaction of its business' aforesaid, is in violation of the Constitution of the United States and void, and that said Act is inapplicable to said transportation company, and inoperative, for further reasons appearing on its face, and that said company is not amenable thereto ; that the chief office for the transaction of corporate business was and is in the city of New York, and that all moneys earned by it were paid to it at its said office ; that it had no funds or property in the State of Michigan, except cars in transit and office furniture in possession of agents; and that during said year the said transportation company was subject to taxation, and was taxed on account of its property and earnings, within and under the laws of the state of New York; that its business is permanently established, and the enforcement of such tax would deprive it of rights and privileges conferred upon it by the Constitution of the United States.
The prayer of the bill is that the said tax upon the said gross receipts of complainant may be decreed to be invalid ; and that any tax upon the earnings or receipts of said transportation ’company, from the soliciting of freights and the making of contracts for the through transportation of the same, and from the use of its cars in manner aforesaid, may be decreed to be unauthorized by said act; and that the Auditor General may be restrained from collecting or enforcing, or proceeding to collect and enforce, the said tax upon the receipts of the said transportation company, or any part thereof.
It will be perceived, from the statement made in the bill, •that the only tax which the Auditor General has laid under the act against the complainant is upon the gross earnings of its cars, computed upon the mileage of said cars used in transportation of freight from - points without the State to points within, and from points within to points without the State; and that he has not attempted to lay any tax upon the gross receipts received for mileage of its cars used in transporting freight through the State, nor upon its business of soliciting and contracting for freight either into, through, or without the State.
The sections of the act necessary to be considered in the •disposition of the case read as follows:
“ An act to provide for the taxation of persons, copartnerships, associations, car-loaning companies, corporations, and fast-freight lines engaged in the business of running cars over any of the railroads of this State, and not being exclusively the property of any railroad company paying taxes on their gross receipts.
“ Section 1. The People of the State of Michigan enact, 'That every person, copartnership, corporation, association, ■car-loaning company or fast-freight line engaged in the business of running cars over any of the railroads this State, and not being exclusively the property of any railroad ■company paying taxes in this State, on their gross receipts, who are or may hereafter be engaged in the business of •carrying passengers in any palace, drawing-room, sleeping, chair, or other car over or upon any railroad in this State, ■or any part thereof, for the right of occupancy of which passengers are required to pay a sum additional to that charged upon the ordinary cars of the road over which said palace, drawing-room, sleeping, chair, or other car as aforesaid may be hauled, shall keep, in such manner as shall be prescribed by the Commissioner of Railroads, a just and true .account of all sums so received by them as additional charges for the occupancy of such cars over any road or portion thereof, within the limits of this State, and shall, on or before ■the first day of April of each year, report to said Commissioner of Railroads, on blanks to be furnished by him for such purpose, the gross amount of such receipts as aforesaid, ■earned within the limits of this State, for the year ending on the thirty-first day of December next preceding the date of .such report.
“Sec. 2. Every person, association, copartnership, or corporation owning running or interested in any special, fast, through, or other stock, coal, or refrigerator car freight lines, the cars of which are not the exclusive property of railroad companies, also any car-loaning company, incorpo ration, copartnership, or association doing business in or running cars over any of the railroads of this State, — shall keep accounts and make reports in like manner as is provided for in the case of palace, drawing-room, and other passenger cars by the first section of this act.
“ Sec. 3. The reports required to be made, by sections one and two of this act, shall be verified, in the case of corporations, by the oath of the president and secretary thereof, and in the case of copartnerships, associations, or persons, by the oath of their proper agents or accountants, as the Commissioner of Railroads shall-require.
“ Sec. 4. The Commissioner of Railroads shall, on or before the first day of June of each year, make and file with the Auditor General a computation of the amount of tax which will become due on the first day of July next succeeding, ''from each person, association, copartnership, or corporation, liable to pay taxes under the provisions of section five of this act, which computation shall be based upon the report of such person, association, copartnership, or corporation, required to be made by the provisions of sections one and two of this act, and any such person, association, copartnership, or corporation neglecting or refusing to make such report, or who shall willfully make a false report, shall be liable.to a penalty of one thousand dollars, and it shall be the duty of the Auditor General and he is hereby required, in case such penalty shall be incurred as aforesaid, to forthwith issue his warrant for the collection of the same, in the same manner, and to levy and collect the same in all respects as is herein provided for the collection of taxes against such person, association, copartnership,, or corporation, and the collection of said penalty shall in no wise absolve the person, association, copartnership, or corporation, from making the report or payment of the taxes as herein provided.
“Sec. 5. Every corporation, association, copartnership, car-loaning company, or person as specified in sections one and two of this act, shall, on or. before the first day of July in each year, pay to the State Treasurer, upon the statement of the Auditor General, an annual tax of two and one half per cent, upon their gross receipts as computed by the Commissioner of Railroads, and derived from passengers or from the loaning, renting, or hiring these cars to any railroad or other corporation, association, copartnership, or party, and such taxes shall be in lieu of all other taxes upon the cars used for the purposes mentioned in sections one and two of this act.”
It is claimed that the bill can be maintained upon two ■grounds: (1) The Merchants’ Despatch Transportation Company is not amenable to the Act. (2) The tax is invalid, because there was no subject for lawful taxation within the State.
Under the first point it is urged that the Act cannot be • broader than its title, and if the title does not comprehend the company, the tax in question laid under its authority is void; that the Act by its titles reaches companies “ engaged in the business of running cars over any of the railroads of this State;” and that this company furnishes cars toother companies which were engaged in the business of running cars, but itself was not engaged in that business. The case stated by the bill, however, is that this company was possessed ■of certain freight cars which were used and run by the railroad companies in whose possession they chanced from time to time to be, and that the several railroad companies thus making use of said cars during the year paid to the said transportation company, as compensation therefor, a definite sum per mile for the distance traveled by the said cars over the respective lines. This method of doing business with the freight cars possessed by the complainant brings them within the class named in the title called “ Car-loaning Companies,” and also within the.description of associations engaged in the business of running cars over any of the railroads of this State; and I have no doubt that complainant’s business is •comprehended in the title of the Act.
Under the second point the complainant’s counsel claim that the tax in question is laid, either on the company by reason of business done within the State, measured by its gross -earnings, or upon the gross earnings of the company within the State as specific property; that the tax in either case is void, (1) because the business of the company is inter-state transportation; and (2) because the earnings or assets are not within the jurisdiction of the State. And it is contended that the application of the Act above recited to the Merchants’ Despatch Transportation Company is enjoined by the Federal Constitution, which gives to Congress exclusive power to regulate commerce among the states. Art. 1, section 8, ■ subd. 3.
The points raised by counsel for complainant have frequently been the subject of discussion by eminent jurists, and in different phases have been before the Supreme Court of the United States for final determination. I shall not attempt a discussion of the eases.
The difficulty of drawing the line between constitutional and unconstitutional taxation by state authority has been recognized by that tribunal. It was held in the case of State Tax on Railway Gross Receipts 15 Wall. 284, that a statute of a state imposing a tax upon the gross receipts of the railroad corporation was not repugnant to the clause of the Constitution above cited. But counsel for complainant insist that the decision in that case is not authority for a like holding in this, because the corporations upon which the tax was laid were home corporations, and subject to the control of the state which enacted the law, and also because the reasoning of the court in sustaining the tax proceeded upon the ground that they were domestic corporations, and held their franchises under authority of the state imposing the tax, anfl it was competent for the legisláture to adopt this mode of exacting an excise tax from its corporations. But the point decided was that such a tax was not invalid because in conflict with the power of Congress to regulate commerce among the states. The law under which the present tax is exacted makes no distinction between domestic and foreign corporations, and. applies to all persons and associations doing business in the State. It is a tax upon business done in the State, and the fact that the complainant is a non-resident doing business in the State is the mere accident of place. Indeed, if the law made a distinction against non-residents, it might be invalid for that reason. The objections to the validity of the law on the ground urged by the complainant would be equally potent if taken by a resident of the State. It is general in its application.
Following the case last cited is that of Osborne v. Mobile 16 Wall. 479, in which the court held that a tax in the shape of a license fee imposed upon an express company,, which was a foreign corporation, having a business extending beyond the limits of the state, was not repugnant to the provision of the Constitution under consideration. The chief justice, in giving the opinion of the court, expressed himself as follows : “ The license tax in the present case was upon a business carried on within the city of Mobile. The business .licensed included transportation beyond the limits of the state, or rather the making of contracts, within the state, for such transportation beyond it. It was with reference to this feature of the business that the tax was, in part, imposed ; but it was no more a tax upon inter-state commerce than a general tax on drayage would be because the licensed drayman might sometimes be employed in hauling goods to vessels to be transported beyond the limits of the state.”
I think the tax in question is within the conceded authority of the State to tax persons, property, business or occupations within its limits; and that, within the principles of the cases above cited, the tax imposed is a valid exercise of such authority. The decree of the circuit court must be
Reversed, and the bill dismissed.
Campbell and Sherwood, JJ. concurred.
Cooley, C. J. did not sit in this case. | [
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Cooley, C. J.
This is an action of ejectment, instituted to recover possession of a parcel of farming land in the county of °St. Clair. Both parties claim title, and both deduce their claim from John K. Hatheway, to whom it is conceded the title was conveyed by Josephine L. Calzin, on November 11, 1868.
To make good his claim the plaintiff produced the following proofs:
1. A general power of attorney from John K. Hatheway and wife to Gilbert Hatheway, bearing date November 15, 1858, duly executed, acknowledged, and recorded. This instrument is not given in the record, but it was assumed on the argument to have been sufficient to empower the attorney to convey land, and from its being said to be general it is inferred that it did not describe particular parcels of land, but only referred to them in some general way.
2. A warranty deed from John K, Hatheway and wife, by Gilbert Hatheway, their attorney, to Oliver Suey, dated December 16, 1868, and recorded June 15, 1883.
3. A quitclaim deed from Oliver Suey and wife to the plaintiff, dated June 12, 1883, and recorded June 15, 18S3.
4. Evidence by Suey and others that soon after the date of the deed to him he went into the possession of the land, cultivated and improved a part of it, and remained in pos. session until 1878, then left his son in possession for two years, after which he put in one Addy as tenant; also that the taxes were paid by Suey from the time he bought up to and including the year 1881; also that when Suey bought he gave back to John K. Hatheway a mortgage for $719.77, in which it was recited that it was given “as part payment of the purchase price of said land,” which mortgage was recorded December 22, 1868.
5. By way of meeting the defense, plaintiff also gave evidence that in 1881 an agent of James S. P. Hatheway called on Addy, claiming the land for his principal, and demanding that Addy surrender possession or pay rent, and Addy then agreed to pay rent to him. Suey was informed of this transaction when he called for his rent in 1882. Piaintiff also testified that he had lived near the land and knew what Suey had done in clearing, and that Suey had occupied in person or by tenant up to 1881.
Defendant’s evidence to show title in himself was as follows:
1. The following deed, which was duly witnessed and acknowledged, and recorded August 2, 1872:
“ This indenture, made the twenty-sixth day of February, in the year of our Lord one thousand eight hundred and seventy-two, between John Eh Hathaway and his wife, Mary O. Hathaway, of Plymouth county, in the State of Massachusetts, of the first part, and James S. P. Hathaway, of the county of Macomb, in the State of Michigan, of the second part, witnesseth: That the said parties of the first part, for and in consideration of the sum of five hundred dollars to them in hand paid by the said parties of the second part, the receipt whereof is hereby confessed and acknowledged, do, by these presents, grant, bargain, sell, remise, release, and forever quitclaim unto the said parties of the second part, and to his heirs and assigns, forever, all of our and each of our rights, titles, and interests in and to all real estate and per sonal estate and property, of whatever name or nature, situate in the counties of Macomb and St. Clair, in the State of Michigan, or elsewhere in the United States, which has in any way arisen or grown out of the stave business (so-called transactions) as conducted by Gilbert Hathaway, as attorney in fact for the said John K. Hathaway, including all notes, mortgages, and accounts, dues, demands, ehoses in action, and all evidences of indebtedness whatever that may arise or grow out of any and all bargains, transactions, and dealings of Gilbert Hathaway, as attorney in fact for John K. Hathaway, in conducting all the aforesaid referred to so-called stave business in all and every part of the United States of America ; and also the said John K. Hathaway and Mary 0. Hathaway hereby convey and deed unto the said Jaihes S. P. Hathaway all other real and personal estate and property, of whatsoever name or nature, that they, or either of them, have any right, title, and interest in and to, situate in the aforesaid Macomb and St. Clair counties, or elsewhere in the State of Michigan, together with all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining ; to have and to hold the said above-described property to the said party of the second part, and to his heirs and assigns, to the sole and only proper use, benefit, and behoof of the said party of the second part, his heirs and assigns, forever.
In witness thereof, the said parties of the first part have hereunto set their hands and seals the day and year first above written.
JohN K. Hathaway, [l. s.]
Mary C. Hathaway, [l. s.]”
2. A warranty deed of the land how in controversy from James S. P. Hatheway and wife to Horace F. Leonard, dated June 29, 1879, and recorded July 1, 1879.
3. A deed from Horace F. Leonard and wife to the defendant, dated January 11, 1882, and recorded January 18, 1882.
4. Evidence by the defendant himself that when he bought he paid in cash thirteen hundred dollars for the land, which was its full value; that he bought without any knowlege of claim to the land by Suey, or by any one else, adverse to the James S. P. Hatheway title; and that when he made his purchase the land was occupied by a man who rented of James S. P. Hatheway.
A cursory examination of the evidence thus produced by the parties respectively will make it apparent that the plaintiff had a perfect chain of title upon which he was entitled to recover, unless by force of the recording laws it was lost to him by reason of the deed from John K. Hatheway to Suey not being recorded until after the deeds to James S. P. Hatheway to Leonard and the defendant had been made and recorded. The circuit judge was of opinion that it was not so lost, and directed a verdict for the plaintiff. The correctness of this ruling is the question now to be decided.
The deed to James S. P. Hatheway was supposed to be inoperative to convey the land in question for three reasons: (1) By its terms it was restricted to such interests as the grantor then possessed, and therefore could not apply to any which had been previously conveyed. (2) The land in controversy was at the time occupied by Suey under his deed, and his occupation was good notice of his title. (3) The deed to James S. P. Hatheway conveyed to him the Suey mortgage, which by its terms apprised him, and would apprise a purchaser from him, that Suey had a deed of the land.
This third reason lacks facts to support it. It was not shown that James S. P. Hatheway received the Suey mortgage, and some other disposition may have been made of it. But constructive notice to him of the mortgage and of its contents would not be notice to one who should purchase from him. Leonard, if he had no actual knowledge of the Suey mortgage, would not be constructively charged with notice by the fact of its being recorded, for he did not claim through Suey, and if he went to the records before purchasing, he would be under no obligation to search for mortgages by Suey, or for mortgages to either of the Hatheways. He would begin his examination of the records with John K. Hatheway as owner, and look for deeds and other conveyances by him; not to him. Those to him would presumptively not concern a purchaser at all; and if the registry law •were to bold Mm chargeable with constructive notice of their ■contents, it would be a dangerous trap to purchasers, and worse than useless. But it does not so hold him chargeable. The Sney mortgage and its recital may, therefore, be dismissed from further attention.
The fact that Suey was in possession, claiming title, at the date of the deed to James S. P. Hatheway, would be conusive as against him: Rood v. Chapin Walker’s Ch. 79; McKee v. Wilcox 11 Mich. 358; Woodward v. Clark 15 Mich. 104; Dunks v. Fuller 32 Mich. 242; Hommel v. Devinney 39 Mich. 522. But possession at that time would :be of no force as against a purchaser from James S. P. Hatheway, who should take his own conveyance at a time when the land was unoccupied, or when it was held under his grantor. And the defendant on this branch of the case made a prima facie showing that must have entitled him to •a verdict if the case had turned upon it.
The other objection to the James S. P. Hatheway ■presents a more difficult question. The deed to him pur•ports to convey all the “ rights, titles, and interests ” of the grantors “ in and to all real estate and personal estate and property, of whatever name and nature, situate in the counrties of Macomb and St. Clair, in the State of Michigan or ■elsewhere in the United States,” and that have arisen or grown out of a certain stave business, including mortgages, •etc., and also “ all other real and personal estate and property, of whatsoever name or nature,” that the grantors or either ■of them had “ any right, title, or interest in and to, situate in the aforesaid counties,” ete. The attention is challenged here to the fact that the deed nowhere asserts for the grant■ors an ownership of any described lands, or assumes to ■convey definite parcels, but it is seen that it is general in ita terms, and assumes to convey such right, title and interest ¡in such real and personal estate as the grantors then had. And apparently they did not then' have the land in controversy.
In Eaton v. Trowbridge 38 Mich. 454, 460, a deed was a umder consideration whereby the grantor conveyed “ all the right, title and interest of and now remaining in the party of the first part of, in and to all that piece or parcel of land. * * * known as the ‘ Mullett Farm.’ ” The following is-an extract from the opinion of the Court in that case r “ Where a deed describes land by metes and bounds or otherwise, and purports to convey it, the grantee, if a purchaser for value without actual or constructive notice of previous conveyances, is entitled to claim what is described;. but when one receives a conveyance of a ‘remaining:’ interest, the description itself limits the operative words to-the interest remaining nneonveyed. The grantee purchases nothing further, and the grantor assumes to convey nothing' more. The deed, under the recording laws, defeats no prior unrecorded conveyance, because it is not a second conveyance of anything previously conveyed. Both deeds may and do well stand together.”
This language is applicable to the deed to James S. Bl Hatheway, and would have precluded his taking under it, by force of the recording laws, any lands which his grantors had previously conveyed to others.
But the case is not determined when it is found that James S. P. Hatheway could not hold this land ; his grantee may,, perhaps, hold it notwithstanding. It is the general fact that when a party is entitled to the protection of the recording laws, he claims and holds a title which his grantor could not hold, and which his grantor in fact, did not own. The state gives him the title by virtue of its general sovereignty, and under a general law intended for the protection of parties-who in good faith have relied upon the public records.. Loomis v. Brush 36 Mich. 40. Somebody is usually a> sufferer in such a case, but it is only the party who has been negligent, and whose negligence would otherwise bring loss, upon the diligent.
Let us see, then, how, upon the facts, the case stands witlu this defendant. His deed from Leonard bears date January-11, 1882. Supposing him to have gone on that day to the records for examination, what would he have found ? Firsts he would have found a deed of warranty of the land front James S. P. Hatheway to Leonard, bearing date some two years and a half before that time. Next, he would have found the general deed from John K. Hatheway to James S. P. Hatheway. Looking to see if John K. Hatheway, previous to the deed to James, had made conveyance of this parcel, he would have discovered no such conveyance. The report of the record to him would therefore have been that Leonard owned the land. And this report would be true. The plaintiff had a right to act upon it by completing his purchase, paying his money, and taking and recording his deed. His case is within the language as well as the intent of the registry laws; and Suey, by retaining his deed from the record, has subjected himself to the loss which the registry law intends to inflict when the protection of subsequent good-faith purchasers requires it.
Allusion has been made to the fact that the power of attorney, through an exercise of which the plaintiff claims, was general. Suppose John K. Hatheway, instead of deeding to James S. P. Hatheway, had given him a power of attorney authorizing him to convey interests, making use therein of the same general terms which are made use of in the deed. What doubt can there be that a deed, under the power, made of a parcel not appearing of record to have been previously conveyed, would have been a good deed; or that the purchaser under it, who caused his deed to be promptly recorded, would be entitled to hold the parcel as against the holder of a previous unrecorded conveyance of whose existence he was ignorant when he received his own ? These questions cannot be answered adversely to the claim of such second grantee without depriving of the benefit of the registry laws one whose claim to rely upon what is shown by the public records is as good in right and reason as that of any other. It is also as good on the words of the statute. The statute, in terms, applies wherever there is a “subsequent purchaser in good faith and for a valuable consideration of the same real estate, or any part thereof, whose conveyance shall be first duly recorded.” How. Stat. § 5683. And if the subsequent conveyance is sufficient to pass the title, if there had been no other, it is sufficient to have effect as against the prior conveyance, if the statutory conditions as to recording exist.
In the case before us there is no question that the deed to the defendant would have passed to him the title, were it not for the earlier deed to Suey. But the evidence showed that defendant was a purchaser in good faith and for a valuable consideration, and his deed was duly recorded before that of Suey. The jury should therefore have been directed to return a verdict in his favor.
A new trial should be awarded.
Sherwood, J. concurred.
Campbell, J.
In this action of ejectment both parties claim as grantees of the title of John K. Hatheway, and the question is, which has the best title ? Plaintiff bought - from one Suey, who obtained a conveyance under a valid general power of attorney from said Hatheway to Gilbert Hatheway, executed, acknowledged and recorded in 1858. This conveyance, made in 1868, and in due form, and for a complete and valuable consideration, was left for recording with Gilbert Hatheway, and money given him to pay for the record, but by some omission it was not recorded, and was returned to Suey, who failed to notice the defect. Suey went at once into possession and remained there personally until 1818, when he left it in charge of a tenant. He gave back a purchase-money mortgage, which was duly recorded. He also paid taxes up to and including 1881, and the land was regularly assessed to him.
In February, 1872, while Suey was in possession, John K. Hatheway and wife made a quitclaim deed of property in Michigan to James S. P. Hatheway, which covered by express words all lands and other property arising out of certain stave business which had been carried on for the grantor by Gilbert Hatheway as his attorney in fact. This instrument •contained a residuary clause, conveying further, “all other real and personal estate and property, of whatsoever name ■or nature, that they or either of them have any right, title, or interest in and to, situate in the aforesaid Macomb and St. Glair counties, or elsewhere in the State of Michigan.”
On June 2S, 1879, while Suey was in possession, James S. P. Hatheway gave a warranty deed of the land now in controversy to Horace P. Leonard. There is. nothing in the record to show that Leonard was a purchaser for value, and he could not be a bona fide purchaser as the possession then stood. It does not appear that he undertook to assert any such claim. Some time in 1881 Hatheway managed, by intimidation, to obtain an attornment to himself from Suey’s tenant. At this time the title had passed from him on the record to Leonard, and there is nothing to show that he retained any interest whatever. About the end of 1881, but at what precise time does not appear, defendant, who had occupied an adjoining farm for many years, negotiated with Hatheway for this property. He was informed expressly by the register of deeds that Hatheway had conveyed to Leonard, and he so informed Hatheway, who told him substantially that it did not concern him who owned it, as he would have it deeded to him. A deed from Leonard, which was a quitclaim, with covenant against his own acts, was given in January, 1882, to defendant, who had no dealings with any •one but Hatheway, and defendant paid a valuable consideration for the land. The deed from John K. Hatheway to Suey was subsequently recorded, and Suey conveyed to plaintiff. Hatheway put defendant in possession when he purchased.
There is no question but that plaintiff has the earliest title in fact, derived from John 3L Hatheway, and defendant can «nly be preferred to it by making himself out to be a bona fide purchaser without notice and for. a valuable consideration, whose deed was first recorded.
It is not pretended that James S. P. Hatheway or Leonard can be treated as bona fide purchasers. Their claims were unquestionably subject to plaintiff’s priorities. Defendant’s equities began with himself, and can only be made out by holding that James S. P. Hatheway obtained á convey anee which in law would take precedence of a prior unrecorded deed, if taken in good faith for value, and by holding further that defendant had nothing to put him on inquiry when he purchased.
It appears from his ow n showing that defendant did not deal with Leonard personally, but did deal with a person, who had no title. It is not very clear that under such circumstances he could get by the quitclaim deed from Leonard any better title than Leonard had. He made no inquiries from Leonard, and the information he got from Hatheway gave him no light whatever on the real title. Leonard had no actual title as against plaintiff, neither did HathewayThe deed from Leonard asserted none.
So far as the deed to James S. P. Hathéway is concernedy it has been held in several cases cited on the argument, that it does not convey any more title than the grantor had ; and if this is so, it cannot be held that the record can import any more than the deed itself. Neither can the record be any more available to subsequent than to early purchasers. No land is described in the portion of the deed under which this claim is set up. The deed might as well have quitclaimed the whole State, as in legal effect it does. If it conveys no title not actually owned or asserted, then it cannot be very important whether the holder of the prior title has his deed recorded or not. It is enough that he owns the land.
In my opinion the judgment below was correct and should be affirmed.
ChahpliN, J. concurred. | [
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Campbell, J.
This was an action for use and occupation of a building in Detroit, claiming about two months’ rent, for April and May, 1883, at $60 a month, and a small balance beyond. Defendant gave notice that he would prove a surrender and acceptance by plaintiff about April 1, 1883. The case, which was begun in a justice’s court and appealed to the circuit, terminated in a verdict for the full sum claimed. Defendant brings error.
Plaintiff proved a written léaseto defendant, under which possession was held. Defendant introduced testimony tending to prove a surrender, and that plaintiff subsequently had one Diehard McElligott as his tenant in possession. Plaintiff thereupon, among other things, was allowed to prove by two witnesses that McElligott, while keeping the saloon, and ,in dealing with them as customers, told them the saloon was not his, but that he was running it for defendant, to whom he was, responsible for the receipts. It appears that McElligott had given a different version of his possession.
The testimony was objected to as impeaching, without having a proper foundation for impeachment laid by specific questions to McElligott as to time and place.
The court, however, did not treat it as impeaching testimony, but as simply contradictory as to the character of his possession.
It is not claimed for plaintiff that McElligott could bind defendant by his statements as to tenancy in his behalf ; but it is insisted that it was competent to show by his declarations, made in the course of his business, that he claimed by tenure inconsistent with any possessory rights of his own.
It is said by Mr. Greenleaf that there is no reason why every declaration accompanying the act of possession, whether in disparagement of the claimant’s title, or otherwise qualifying his possession, if made in good faith, should not be received as part of the res gestae ; leaving its effect to be governed by the other rules of evidence. 1 Greenl. Ev. § 110, and cases there cited. It would certainly, under the pleadings in this case, be competent for defendant to show just what relations existed between plaintiff and McElligott, and equally competent for plaintiff to do so. This could only be done by showing what transactions had passed between them, including the language used by both. There is no other way of proof, although, so far as defendant is concerned, he would be a stranger, to their dealings. It would be taken out of the disabilities of hearsay, because relating to transactions and conduct pertinent to the issue. The question of the nature of the possession stands on the same footing as showing what would be inconsistent with contract relations between those persons, for what may be proved may be disproved. It is, a familiar and necessary practice to show adverse possession, and its character, by the claims and assertions of tenants; and if made in the ordinary course of possession, and not under a dispute or litigation, such statements are admissible as explanatory, and for what they are worth.
The fact that declarations, if true, would bear upon the rights of third persons, cannot exclude them if otherwise competent. These statements could not bind defendant as an admission that he was in occupancy. That would have to be shown in another way, and it is to be presumed that everything was shown that was essential. But, so far as McElligott’s possession, as held in his own right or not, became important, this testimony was relevant and competent.
As the case is presented by the exceptions there is nothing to require a reversal, and it should be affirmed.
The other Justices concurred. | [
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Campbell, J.
This is a suit to foreclose a mortgage given to Warren A. Sherwood, deceased, and claimed to have been discharged. The case involves some of the features of Reynolds v. McMullen 55 Mich. 568, decided by this Court at the January term, 1885. It differs from that, however, in some important facts.
The public administrator in Missouri, who, as explained in the former case, undertook to deal with the assets of Sherwood to the extent of between $60,000 and $70,000, put up Michigan assets at auction, and sold the whole for a few hundred dollars. The former Alichigan administrator, Mr. Russell, who attended the sale and warned bidders of his rights, bid off a considerable part of these assets with funds of the estate. The mortgage now in dispute he bid off in the name of his wife, Julia Russell, and had it assigned to her. He subsequently, with his attorney, Mr. Woolford, called on the mortgagor, and demanded payment, representing that his wife owned the security. The mortgagor disputed the amount, claiming, among other things, that a portion was usurious, but offered to pay what was due by his own computation. This was not accepted. Russell died, and after his death, Mr. Woolford applied for payment, on behalf of Mrs. Russell, and accepted a smaller amount than the face of the mortgage and interest, and gave a release, which was duly executed and acknowledged by Mrs. Russell, to whom he accounted for the money by paying a part, retaining a part as due him from Mr. Russell, in which she acquiesced. There is testimony indicating that Mrs. Russell was in a condition to be imposed upon; but it is evident that the mortgagor paid the money and took the release in good faith.
The court below sustained the defense and dismissed the bill.
In the case of Reynolds v. McMullen, the defendant’s equities depended entirely on the action of the Missouri administrator. In this case the defense is based on the action of the Michigan administrator, who asserted that the mortgage belonged* to Julia Russell, and on the faith of that assertion the money was paid to her agent. This defense seems to us to be complete. It was entirely competent for Russell to dispose of the mortgage, and a sale or transfer could be made which would operate to. pass title without legal formalities. Any one dealing with an administrator has a right if acting honestly, to rely upon his representations concerning claims which belonged to his intestate, and when he says they belong to another person for whom he seeks payment, the debtor may act on his statement, and will be protected when he does so in good faith. He cannot be compelled to make special inquiry when the administrator acts in person in making the representations. The rights of defendant depend on the plainest rules of honesty and justice. If Russell was responsible for a wrongful diversion of assets, his successor must have recourse to his bond or estate to get redress. Innocent persons must not be made to suffer for their confidence in his assertions.
The decree must be affirmed with costs.
Sherwood and Champlin, JJ. concurred. Cooley, C. J. did not sit. | [
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Campbell, J.
The action in this case was brought by .the widow and administratrix of Nicholas Staal, deceased, to -recover damages for his death, alleged to have been caused by the negligence of defendant, by one of whose trains he was killed. Many errors were assigned, but upon the argu-ment the grounds for reversal urged by defendant were confined to the rulings upon charges given and refused, and some other matters connected with the submission to the jury. A verdict was given for $5000, which would give $1666.66 to ■the widow, and $1111.11 to each of three minor children, who are step-children of plaintiff.
As there is a little conflict upon some of the circumstances, ■although in the main there is an agreement, an outline sufficient to explain the case is all that can be given.
The transaction took place at the crossing of Prescott •street and defendant’s road in the city of Grand Rapids, on the twenty-fifth day of September, 1883, between one and two o’clock in the afternoon. The defendant had made up ■a train of loaded freight cars at its shops not far from three-fourths of a mile south; and this train was moving to the •depot, which was at a considerable distance off, to the northward of Prescott street, which runs east and west, and is a •city street traveled freely. The track of defendant is one ■main track, without switches or side tracks of its own in that neighborhood, and it crosses Prescott street very nearly at a right angle. Just east of it, and within a space of about forty feet, are the main track, and two side tracks of the Michigan Central Railroad. The easterly side track,-called the Bending Works track, is a few feet from a building belonging to the Grand Rapids Bending works, lying on the .south side of Prescott street, and separated by an interval from another building of the same works. About one hundred' feet north of Prescott street the defendant’s line is •crossed by the main line of Jhe Chicago & West Michigan Railroad, which crosses Prescott street westward of defend■ant’s line.
On the day in question, Nicholas Staal was driving'a one-horse wagon along Prescott street, going westward, having with him a neighbor named Postma sitting on the same seat, and his son Gerrit, a lad of twelve years old, standing behind them and resting his hands on their shoulders. As they reached the Bending Works track they halted, while a Michigan Central engine was moving several coaches across. This train moved over to the north, and left one coach on that •side of Prescott street. It then returned southward across the •street, and as soon as the rear had passed, Staal started his horse westward; two other teams being close behind and beginning to move after he did. Most "of the witnesses say-lie started his horse on a trot. The distance between the Bending Works track and the east rail of defendant’s track is left in a little obscurity, but seems to have been about thirty-five feet. Defendant’s train came up from the south and reached Prescott street about the time that Staal started his horse. There is some conflict concerning the immediate order of events, but the horse swerved as the train reached him, and the wagon was, either before or after the persons in it were thrown out, struck, and subsequently demolished by the cars, and Staal was thrown under the train and killed, with Postma, and the boy Gerrit was injured. This suit is for the death of Nicholas Staal, and for no other cause of grievance.
The issue was whether he was killed by the negligence of defendant, and without his own negligence.
The defendant was claimed to be in fault for running over the street with too much speed, and without a flagman or other local warning or safeguard, and without the proper signals of bell or whistle; and the injury was alleged to be due to this negligence. The defendant denies the failure of any duty; denies its duty to have gates or flagmen; and claims that Staal did not exercise proper c&re himself.
There is the usual conflict in this case concerning bell ringing, and it was, in our judgment, left properly to the jury. The ordinances forbade using the steam-whistle. There is some very positive testimony that the bell was rung. There is some equally positive that it was not heard by those who were apparently listening. Some of the witnesses for defense testify in such a way as to indicate that their recollection is partly based on habit. The circumstances were such that, in all probability, the sound might have been drowned by or confounded with other noises, and it probably was not á very decisive fact in the case. The question of speed was also controverted. There were several witnesses who put it at about the rate allowed by the ordinances of Grand Rapids as the maximum, and some that set it higher. The train was made up of heavy cars, and the grade was a descending one? which rendered it more difficult to stop the motion. A difference of a second or two would have avoided the mishap, and the question of undue speed was of some importance. In this point of view the question whether the train should not have stopped before reaching Prescott street, although not averred in the declaration as a substantive wrongful neglect, cannot be said to have no significance on the question of speed. If the train had come to a halt south of Prescott street, it could not, within so short a space, have acquired any considerable speed. By How. Stat. § 3376, it is made the duty of trains to come to a full stop not less than 200 nor more than 800 feet from a railroad crossing, and not to cross until the way is clear. In the present case the defendant’s road crossed the Chicago & "West Michigan less than 200 feet north of the south line of Prescott street, and although it was signaled that the way was clear, the statute nevertheless requires the stoppage. It is not impossible for signals to be erroneous, and the precaution has been made imperative.
The principal grievance, however, was, as claimed, the absence of any local warning. The duty of having gates or flag-men at a street-crossing is not imposed absolutely at all city street-crossings. Butit cannot be held that circumstances^ may not impose a duty to do this or something which will be of service to passers-by. Under the charter of Grand Bapids it appears that the common council passed resolutions requiring the marshal to notify the proper officers of railroads to station flag-men at street-crossings, and that this notice reached the defendant. The court below did not recognize this as imposing any legal duty, and we need not now consider how far it did so. But the jury were told that while there was no absolute duty laid on them by law, it was for them to decide whether ordinary care and prudence required some such precaution under the circumstances. In this we think there was no error.
This was not a mere single crossing where the only danger was from cars running in one direction at a time, on a single and clear track, plainly visible. Within a small range three separate companies had tracks crossing this highway, and one of those companies had three tracks within forty feet of defendant’s. The immediate cause why the view was more or less obscured was the passing and repassing of a Michigan Central train between Staal and defendant’s train, and the standing of cars upon a track near by. Defendant could not control the movements of other companies, and could not be controlled by them. This proximity made the running of all these cars, especially in opposite directions, more dangerous, as likely not only to cut off view, but also to confuse the sound of passing trains. It cannot be said that companies that obstruct the ordinary travel on city streets may not be bound to make that obstruction as little dangerous as they reasonably can ; and if from local surroundings such precautions as are sufficient generally are not sufficient there, it is open to inquiry how far they are culpable for mischief that can be traced to such neglect. We think the jury had enough before them to warrant them in considering these surroundings so dangerous as to call for some efficient local warning to passers-by.
Whether the case shows contributory negligence, which should cut off plaintiff’s right of action, is also made a prominent point in' the case. The negligence attributed to decedent is not seeing the train of defendant before it came into the street, and starting his horse before he could see that the way was clear, and starting him so fast that he could not be stopped.
There was sufficient testimony to go to the jury to justify them in finding that Staal did not see the train, and could not have done so where he was. Gerrit, the only survivor, testifies to the exercise of considerable caution, and his testimony indicates that his father was looking out. Thei’e is testimony of a warning whistle given by a person north of the street, but nothing to show that it was understood, if heard, as intended for such a warning. It would not necessarily be reckless conduct to omit further dilatory action under such circumstances. Whether the moving forward, as it was done, was culpably negligent must depend on what Staal was bound to anticipate. In the absence of any knowledge of what was passing in his mind, we cannot hold him conclusively at fault, unless there is no sensible explanation to the contrary reasonably possible. But he had a fight to suppose that defendant would not violate any legal duty, and he could not be bound to suppose it would fail to take reasonable measures to prevent mischief. And he could not be censured if he acted as seemed proper at the time. The case could not be taken away from the jury so as to prevent them giving to either party the benefit of any inference which might be drawn from a comparison of all the facts. If they had found him negligent, their verdict, perhaps, could not have been set aside as without support. But they have found otherwise, and we think they had enough before them to make their verdict legally sufficient.
It is objected that the testimony concerning the means for estimating damages took too wide a range. We do not think so. The object of the statute is to give such pecuniary damages, and no more, as the widow and next of kin have suffered by the loss of the person killed. In many cases there is no such immediate dependent connection between the deceased and his kindred that their loss is more than problematical. In such case their poverty and his industry or wealth can furnish no accurate guidance to a result. If they had no legal claims upon him? and received no reliable help from him, his life may have had small, if any, pecuniary value to them. But where the head of a family is taken away, there is a distinct relation between the family circilmstances and the family supporter. In such a case we think the fullest insight into the family circumstances is of value in determining to what extent they are injured by the loss of their head. No special instructions were asked whereby the attention of the jury might be confined to the proper line of inquiry. If this had been desired, no doubt the judge would have given it. Without it the jury were at liberty to use their best judgment in drawing their own deductions.
We had some doubts whether there was not something in the amount of the verdict to indicate that the jury had been misled upon the extent of their discretion. Five thousand dollars seems to be a large verdict. But when we consider how it is to be apportioned, it loses some of its apparent magnitude. The three children of the person killed are. minors, and the widow is not their mother, although she seems to have been very kind to them. She is not, however, bound to assume their support by any legal obligation. These children have been deprived of any certainty of maintenance in a family* home, and as the case shows they were always maintained in -comfort, it cannot be legally held unreasonable to award each of them a'trifle over $1100, as representing what they have lost in a mere money point of view. If the widow had sued for her own loss, and there were no heirs, a verdict for the sum which now goes to her would not appear extravagant. Courts should not allow juries to give anything that goes beyond a fair pecuniary compensation based on the actual pecuniary loss. But the jury here was properly instructed to keep within those bounds, and we have no right to say they have not done so.
The only other errors assigned are based on alleged extravagances in the summing up of counsel. We do not think that there is any reason to believe the court did not in the charge prevent any danger, if it existed, that the jury would be led astray. Counsel cannot be deprived of some latitude in urging inference^ from facts actually in evidence; and while they may be uncharitable, and perhaps unjust, yet the trial court may usually be expected to do whatever is necessary to preserve order and decency. An appellate court must have a very strong case of misconduct presented, before it can disturb a verdict for anything but the errors of the trial judge. This case does not seem to us to call for such action.
The judgment must be affirmed.
Sherwood and Champlin, JJ. concurred. | [
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Cooley, O. J.
The principal question in this case is whether the assignees in a common-law assignment, under the facts which will be recited, took the title as trustees for the creditors, so as to preclude the property being seized on attachments.
On November 19, 1883, the banking firm of Rice & Mess-more, doing business at Cadillac, in this State, finding themselves insolvent, executed to William E. Ambler and John C. Mosser, as trustees, a general assignment of all their property for the benefit of their creditors ratably. Ambler and Mosser joined with the assignors in executing the assignment, and it was placed upon record by them.
Before further action was taken, certain creditors filed with the circuit judge a petition, under the Assignment Law of 1883, praying for the appointment of a receiver, and such proceedings were liad upon the petition that Fred. S. Kieldson was appointed receiver, gave bond, took possession ,of the assets, and entered irpon the performance of duty under the appointment. He continued to act as receiver until this Court, in the case of Risser v. Hoyt 53 Mich. 185, held the Assignment Act of 1883 unconstitutional.
When this decision was made, a number of creditors, and among them Ambler and Mosser, sued out attachments, and levied upon the property which had been assigned. This was done on an assumption that the trust which the assignment was intended to create had failed by reason of the non-action of Ambler and Mosser as assignees, and, the receivership proving to be invalid, the creditors were remitted to such remedies as would have existed if no assignment had been made. The complainants in this suit, who are creditors to a large amount, thereupon filed their bill, praying for the appointment of a receiver, and the execution by him of the trust which the bill claims was created by the assignment. They also prayed that the creditors who had attached should be enjoined from proceeding on their levies. •
The defendants, who are the debtors and the attaching creditors, answered ; but, as there is no dispute in the leading facts, the pleadings and evidence need not be further referred to. ■ The circuit court in chancery made a decree whereby the assignment was declared to have created a valid trust, which the assignees had failed to execute, and Kieldson was thereupon appointed receiver for the purpose of executing the same. It was declared in the decree that “all of the right, title, authority, interest, property, and estate granted by said deeds in terms or intent to the assignees therein named, are hereby continued, vested, and confirmed in the said receiver, and he shall have and possess all power, right, authority and estate which the said assignees would have had under said assignment. He shall take the same, subject to the trust expressed in said deed, and shall discharge and perform all of the duties, trusts, and obligations which would otherwise have devolved upon the said assignee?, and execute and discharge said trust, and expend and distribute the funds coming into his hands by virtue of the same, in all respects according to the terms and intent of said deed of assignment, and the laws of this State governing sucli assignments.”
All levies on the assigned property, and all other proceedings taken by creditors with a view to obtaining preferences, were set aside. Mosser and three other defendants appealed.
We think this case is within the ruling in Fuller v. Hasbrouck 46 Mich. 78. It was there held that the failure of the assignee to proceed within the time contemplated by the statute to give his bond and commence the execution of his duties, did not defeat the trust which had been accepted by him. In that case there were further acts of acceptance than appear in this; for he had taken possession of the property and given notice to creditors. But these were only significant facts indicating acceptance, and the acceptance is conclusively made out in this case by the assignees joining in the assignment, and putting it upon record after the execution was completed. They went no further because they supposed they were displaced by the appointment of a receiver. We adhere to what was said in Fuller v. Hasbrouck, and also in Coots v. Radford 47 Mich. 37, and Pickersgill v. Riker 50 Mich. 98. Those cases, we think, require an affirmance of this decree.
The purpose of the Act of 1879 (How. Stat. ch. 303), which the bill seeks to enforce in this case, is to compel an equal distribution of insolvent estates among creditors in cases where a trust for their nominal benefit has been created. This is to be done through the assignee, if he proceeds to execute the trust as the statute provides; otherwise, a receiver appointed by the court of chancery. The assignees in this case have failed to act; the reasons are immaterial. The intent of the statute can now be accomplished only through a receiver, and any creditor had a right to have one appointed.
The decree must be affirmed.
The other Justices concurred. | [
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Champlin, J.
The bill alleges that complainant is the owner in fee and in the actual possession of the northeast quarter of the southeast quarter of section 24, township 13 north, range 7 east, and that it is worth $1500 or upwards. This land he states was purchased from the State of Michi gan on the 17th day of April, 1851, by Ephraim Beebe, and by him sold and conveyed by warranty deed about January 1, 1853, to J. L. Watkins; that Beebe paid the State the full purchase price and took the usual certificate of purchase,.and never surrendered the same or received a patent of the land from the State. Watkins never recorded his deed. The land was returned to the Auditor General for delinquent taxes assessed for the years 1852, 1853 and 1851, and was purchased at the tax sales by one Darwin A. Pettibone, who received the Auditor General’s deeds therefor, which were duly recorded. He further claims by his bill that one John S. Moore purchased the land from Pettibone in 1859, who promised to convey by warranty deed, but did not do so; that Moore went into actual possession in 1860, built a house thereon, and remained and continued in ' open and .peaceable possession of the same, claiming title thereto ■by virtue of such purchase, until about the 13th day of August, 1873, when he sold and conveyed the same by ■warranty deed to one Joshua Parks, who went imme■diately into actual possession of the land, and remained ■in possession until about September 15, 1873, when he sold •and conveyed the premises to Abraham Carter, and that he 'went into immediate possession and so remained until No'■vember 3, 1873, when he sold and conveyed the same by ■warranty deed to complainant, who has since the date thereof •been in the actual, open and peaceable possession of said ■land, claiming title thereto ; that when Moore went into possession the land was wild and uncultivated, but that he and those claiming through and under him have improved, •cultivated and cleared up all but about five acres of the land ; that on the 10th of November, 1880, Pettibone conveyed •said land to complainant by a quitclaim deed, in pursuance ■of his agreement with Moore.
The bill further charges that one H. H. Hoyt, as the agent .and attorney of Nelson L. Boberts, on or about the 10th day of March, A- D. 1879, applied to said Beebe to purchase .-said land; that at the time said Beebe informed said Hoyt Be did not own said land, nor did he have any interest therein, as he had before that time — in the year 1853 — sold and conveyed the same by warranty deed to said J. L. Watkins. Thereupon said Hoyt inquired of said Beebe if he had in his possession the certificate of purchase issued to him by the Commissioner of the Land Office, and Beebe replied that he had. Thereupon said Hoyt proposed that if Beebe would assign said certificate to said Roberts he would give him five dollars for so doing, and said Beebe consented so to do, at the time expressly stating to said Hoyt that he had no interest in the land. Further, that on that day said Beebe, for the consideration of five dollars, did execute and deliver an assignment in writing of said certificate to said Nelson L. Roberts. That afterwards, on or about the 21th day of March, 1879, said Nelson L. Roberts surrendered said certificate, together with the assignment thereof, to the Secretary of State of Michigan, and received from the State a patent of said lands in his own name, which patent he had procured to be recorded in the office of the register of deeds for Tuscola county, and now fraudulently claims to own said land in fee by virtue of said patent. Your orator further shows that on or about the 16th day of May, 1879, said Roberts commenced a suit in ejectment in the circuit court for Tuscola county against your orator,o for the purpose of obtaining possession of said land by virtue of said patent, in which your orator has appeared and pleaded, and the cause has been regularly noticed for tidal at the present term of this Court. Your orator further shows that said Roberts has not any other or further claim of title to said land than by virtue of said patent, and that said patent, the record thereof, and claim of title made by said Roberts, constitute a cloud upon your orator’s title, and ought to be removed by a decree of this Court.
The answer admits the purchase by Beebe as alleged; that defendant procured a patent, in his name, and claims ownership in virtue of it; and that he brought ejectment, as stated, to enforce his right of entry as such owner; and that such action has reached the stage mentioned, and is pending. It denies that Beebe conveyed to Watkins as stated, or conveyed to any person other than defendant, and denies that Beebe, on the occasion of the assignment of the certificate to defendant, informed defendant’s agent that he had previously conveyed to Watkins or any other person by warranty deed. It denies generally that Loomis has any prescriptive title or any tax title. Without any admission or denial, it puts Loomis to proof of the tax pi'oceedings and tax titles, but sets up that in case the alleged tax deeds were given, they were overreached and made abortive by a later sale, viz., a sale to Alson Greenfield for the tax of 1861. The sale set up by Pettibone to Moore is expressly denied, and it is particularly denied that Pettibone ever agreed to sell to Moore, or ever deeded to him. On the contrary the answer insists that Pet. tibone made conveyance to others. Moore’s entry, about January 1, 1880, and his occupation therefrom, as stated, is denied, as is also the allegation that he resided on the premises under claim of title based on any tax sale to Pettibone until about August 13, 1873. *
The existence of the tax sales and tax deeds to Pettibone is- neither admitted nor denied. Likewise the conveyance by Pettibone to complainant; the successive possessions after Moore’s entry; but the answer denies possession from the first of January, 1860. . Proofs were taken. Two deeds were introduced from the Auditor General to D. A. Pettibone of the land in question: one for the taxes of 1852 and the other for the taxes of 1854. Also a contract from D. A. Pettibone to William LI. Nandall, agreeing to convey, by quitclaim deed, the land in question to Kandall, bearing date July 6, 1860, and a contract to extend the time mentioned in this contract to a Mr. Johnson, dated May 21, 1861. Oral testimony was introduced of an assignment of the Pettibone contract by Johnson to Moore, and under this contract Moore entered into possession either in the fall of 1861 or the spring of 1862. The conveyances from Moore to Parks, from Parks to Garter, and from Garter to the complainant, were proved, as alleged in the bill; also the possession from the time of Moore’s entry, and the improvements made, as stated in the bill. Proof was also made of the defendant’s obtaining the assignment of the certificate from Beebe, who testified that he sold the land to Watkins two or three years after he bought it, and had received his pay in full, and that he informed Hoyt when he obtained the assignment that he had previously sold the land to Watkins. Witness further said : “ If I did assign the certificate, I can say that I never received to exceed five dollars for the assignment of the certificate. I have-no recollection of ever receiving anything. I understood that Roberts and Hoyt were connected with the land in some way, and were having trouble about the title, and wanted to find out something about the title. Main question seemed to be was when I bought, or who I bought it of, and who I sold it to. I think, if I did make the assignment of the certificate, I made it in order to assist them in perfecting their title, but at the same time told them I had sold the land to Watkins.”
The deed from Pettibone to complainant was also given in evidence. The defendant’s solicitor contends that it was incumbent upon the complainant to substantiate and clearly establish his title as alleged ; and he claims that it was indispensable for him to trace his right to the legal title by a continuous chain back to Pettibone ; not through the quitclaim deed direct from Pettibone to him, but through the intermediate contracts and conveyances alleged. He also claims that complainant must show valid deeds from the Auditor General to Pettibone, or an adverse possession for twenty years prior to the commencement of the ejectment suit. Several objections to the validity of the tax deeds are urged, which, in the view I take of the case, it is not necessary to discuss.
It was held in Hall v Kellogg 16 Mich. 135, that where a bill is filed by a party in possession for the purpose of removing a cloud upon his title, he need make out only a presumptive title to the land in question. Mr. Justice Campbell in delivering the opinion of the Court in that case, said: “ We can see no reason for'requiring of complainant any proof of title beyond that which, when making out a presumptive case :against the defendant, has not been met by any proofs ¡adequate to shake or destroy it.” This decision was subsequently approved in the case of Rayner v. Lee 20 Mich. 389. •In this case the complainant had made out a title presumptively good as against the defendant by showing that the parties through whom he obtained his conveyance were in actual possession, claiming ownership in fee. This title is good as against every person except those having a better title. If the tax titles were admitted to be invalid, the case shows that the legal owner of a better title is Mr. Watkins, who makes ¡no claim; that by obtaining an assignment of the certificate ■of purchase, and obtaining the patent thereon, the defendant is a trustee mala fide of the legal title for Watkins, but he is ■not thereby vested with the rights of the legal owner of such 'title as against complainant, and was neither authorized nor justified in harassing the complainant with the action of ejectment commenced by him. The presumptive case made by ¡the complainant must prevail over that acquired by the defendant, because its acquisition by the defendant was a fraud ¡upon-the true owner of the grantee of Beebe, and was obtained by deceit in the manner stated in Beebe’s testimony, and is now being used to dispossess complainant of lands of which he is the rightful owner and lawful possessor against every ¡person except Watkins, who does not appear to make any Maim.
The decree appealed from is affirmed with costs.
The other Justices concurred. | [
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Cooley, C. J.
This is an action of trespass quare clausum. The real question involved is one of title. ' The plaintiff recovered in the circuit court, and had treble damages assessed under How. Stat. § 7959. We may remark here that there seems to have been no valid ground for this increased recovery, as the trespass consisted in tearing down a fence which the defendant claimed had been wrongfully placed on his own land, and on the evidence no reason appears for doubting that the claim was made in good faith.
Plaintiff is owner of lot three of block seven of the subdivision of Fort Gratiot Military Reservation, which was conveyed to her by Clara J. O’Neiil, March 27, 1873. O’Neill purchased that lot and the adjoining lot two, on the east side of it, and received a patent from the United States, January 7, 1871. The description in this patent is as follows :
“ Being lots 2 and 3 of block 7, of a plat of the subdivision of the Fort Gratiot Military Reservation, filed with the register of deeds of the county of St. Clair on the fifth day of November, 1870, and bounded as follows: ‘ Beginning at a point in the south line of Stanton street, south 87 degrees and 48 minutes west, 130 feet, from the southwest corner of Stanton and St. Clair streets ; thence along the south line of Stanton street north 87 degrees and 48 minutes east, 80 feet; thence south two degrees and 12 minutes east, 144feet, to a 20-foot alley ; thence along the north side of said alley south 87 degrees and 48 minutes west, 80 feet, to the line of the cemetery grant; thence along said line of said grant north 2 degrees and 12 minutes, 144 feet, to the place of beginning.’ ”
Lots one and two, in block 7, according to this plat, are-each fifty feet in width, and lot three occupies the space between lot two and the line of the Cemetery grant, and would therefore be, according to this description, thirty feet in-width. Plaintiff claims, however, that the line of the Cemetery grant was m fact 140 feet from St. Clair street, leaving lot 3 forty feet in width; and on this claim she had constructed, on the supposed line of the Cemetery grant, the-fence which the defendant tore down. The plat of the military reservation was made on an actual survey under the supervision of Maj. Poe, of the regular army, and was put in ■ evidence, but without any field-notes or references to perman-' ent monuments. The Cemetery grant had been made several: years before, but there was no distinct evidence that it had: ever been surveyed, and monuments planted or designated.
In 1881 the Cemetery grant was also platted for the United States, and the streets on the former plat were continued across it. Block seven, which was fractional on the plat of the military reservation, was thereby made a complete block,., but without uniformity in the width of lots. There was no-evidence in the case that an actual survey was made at this-time, and on that subject the court and the jury were left to-conjecture. Lot four, the added lot to block seven upon this-plat, appears upon it as sixty feet in width ; but the block is-assumed to be two hundred feet wide, which, if St. Clair street: is only one hundred and thirty feet from the line of the-Cemetery grant, would give seventy feet instead of sixty to lot four. Defendant became purchaser of this lot four.
It thus appears that there must be an error in one of the plats or in the deeds, and that one of these parties has a strip of land ten feet in width beyond what the plat bj' which her or his purchase was made would on its face allow. The question is, which of the two is entitled to this strip of land ?
It is claimed in the brief for the plaintiff that the line of' the Cemetery grant was not ascertained until the plat of 1881 was made; that defendant bought by that plat, and is bound' by the line as there laid, and can take only what is thereby allowed him. But that the line was not ascertained until that: time is matter of surmise only. Plaintiff herself put evidence into the case which she claimed tended to show that the lines' of the Cemetery grant had been fixed several years before the-plat of 1871 was made ; but it was quite too vague and uncertain for judicial action.
We are informed by the parties, and can see by the plats-which have been put in evidence, that many controversies must depend upon the question that is in issue here. That being the case, we shall say no more about it at the present time than is absolutely essential to a decision. It is very manifest to us that there is important evidence which is attainable, and upon which the proper decision of the-controversy may depend, but which no attempt to bring forward has yet been made.
Maj. Poe was not called as a witness in the case, though, both plats were made by him or under his supervision. No-records of the field-notes of any survey were produced or sought for, and no search made for a survey previous to 1871. It is probable that by calling upon Maj. Poe the line of the-Cemetery grant could have been determined with certainty. The most certain and reliable evidence appearing in this record respecting its location is given by the deed to O’Neill, which fixed it at one hundred and thirty feet from St. Clair street. There is nothing in the exceedingly vague and indefinite evidence put in as the basis for an inference that it was further away, which fairly tends to raise a question.
The judgment must be set aside and a new trial ordered.
The other Justices concurred. | [
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Campbell, J.
Plaintiff sued out an original writ of certiorari to review a judgment rendered by Justice P. W. A. Kurth, of Springwells, Wayne county, in favor of respondents, which he claims to have been fraudulently obtained, and also to be void for want of jurisdiction.
The affidavit for certiorari sets out that plaintiff was discharged in bankruptcy in 1876, and has since had no dealings with defendants; that on November 28, 1884, the elevator boy in the Buhl block, Detroit, handed him a paper which turns out to be a copy of a summons in favor of defendants against George H. Moore, issued by Justice Kurth, and that knowing he was not indebted to defendants, and that there were other persons of the same name, he asked the boy to find out whether he was the person intended, and also wrote to defendants, who made no reply, and he gave it no further attention, and was informed by defendants’ attorneys of the judgment when it had ceased to be appealable.
The justice’s return shows a summons directed to “any constable or any competent person of said county,” which he delivered to Pick & Young, attorneys for respondents, and which was returned with an affidavit of Arthur Waterfall that he had served it by delivering a copy, and that “ he is a competent person.” The justice did not appoint him, and had no knowledge of him not afforded by this affidavit. Waterfall was then a boy not 15 years of age: On the return-day, Mr. Rasch, one of the respondents, came with his attorney and put in a claim, the last item of which was more than nine years old, and recovered interest for more than nine years, on his oath that Moore was indebted to that amount.
We need not consider how far an outlawed claim is open to dispute on default, as we think there was no jurisdiction.
We have no statute allowing a summons to be directed to any one but a constable, except by personal appointment of the justice. It cannot be directed generally to “ any competent person.” The statute (How. Stat. § 6827) declares a summons may be served “ by any competent person.” But there must be some determination who is a competent person, and unless the record shows it the service cannot be held good. And we have no doubt it must be determined before the writ is served. A person cannot be required to take his chances and appear before a distant justice upon a summons served by any one whom the party suing him may see fit to choose, whether young or old, native or alien, intelligent or ignorant, honest or dishonest. It is always supposed in law that there may be a legal redress for a false return, and where justices have, as here, a jurisdiction reaching $300, with no power to set aside their own judgments, and no-appeal of right beyond five days, it would be a scandalous reproach if that jurisdiction could be made to attach without the action of some responsible and reliable process-server.
Our statutes have not left this in doubt, but have declared how the competency of such persons shall be determined. Sections 259 and 260 of the act concerning justices. (How. Stat. §§7071, 7075), of which the section previously eited is a part, contain the rule on this subject. They provide as follows:
Sec. 259. “ Every justice who shall issue any process ' authorized by this chapter, whenever he shall judge it expedient, on the request of a party, may, by written authority indorsed on such process, empower any proper person being of lawful age, and not a party or interested! in the suit, to execute the same.”
Sec. 260. “The person so empowered shall possess all the authority of a constable in relation to the execution of such-process, and shall be subject to the same obligations, but shall not receive any fee or reward for his services thereon.”
These sections say nothing about the method of making a return. In 1879, § 6827, providing how a summons shall be served, was changed so as to provide for its service by any competent person, with proof by affidavit instead of certificate.
This change must be read with the rest of the statute, and it is evident that, inasmuch as no new rule of competency is declared, the one already provided for must apply. This required a personal appointment by the justice, after an inquiry, not only into age, but also into such other facts as would bear upon the propriety of selection, in a matter involving important consequences. It is entirely inconsistent with any idea that the writ may be directed at random, and served by anybody, employed without reference to age or character. The statute is too clear to admit Of discussion.
The case presents some features which are not creditable, but -which need not be considered, since the judgment is void for want of jurisdiction. It must be
Reversed, with costs.
The other Justices concurred. | [
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Shjeewood, J.
The plaintiff brought suit in the Kent circuit court to recover for injuries sustained July 13, 1883, by the capsizing of a wagon owned and driven by one Weight-man, with whom the plaintiff was at the time riding. The injury occurred in the township of Wyoming, about a mile south of the city of Grand Bapids, on the Grandville road, at the crossing of the track of the Lake Shore & Michigan Southern Bailway, which was then used by the defendant. The defendant’s bridge over Grand river in the city having recently been carried away by high water, it was compelled to cross the river about three miles below the city, upon the bridge of the Lake Shore & Michigan Southern Bailroad Company. Bunning westerly and southerly from the city, down the river, and near its west bank, is a turnpike used by the Grandville Plank-road Company, and upon which it collects toll. Near the Lake Shore bridge the railway crosses this toll-road, but not at right angles, the railroad running south twelve degrees west, and the toll-road running east and about the same- number of degrees north. The toll-road has a prepared surface twenty-four feet wide, and on each side of this it declines to the gutters.
At the time of the injury the defendant had a train of cars drawn across this toll-road, the engine facing the south. They had run down to this point for some purpose of their own to aid them in getting into the city.. While this train stood across the highway, Mr. Weightman, with whom plaintiff was riding, drove up from the west to within thirty feet of the cars, and waited about ten minutes for them to back off the highway. At the end of this time the engine backed the train far enough so that' the engine cleared the highway; the cow-catcher being just over the cattle-guard on the north side of the highway, and being turned a little sideways to the highway by reason of the acute angle formed by the rails and the highway. From this cattle-guard to where Weightman crossed the rails was thirty-three feet.
The plaintiff claims, before Weightman started to drive across, the engine was blowing off steam from the safety-valve, but his team had become accustomed to ■this from being used by Weightman in delivering freights at the depots in the city, and were perfectly quiet, paying no attention to this; that after the engine stopped, Mr. Weigh tman thought they had backed to give him an opportunity to cross, and started forward; that his team was perfectly quiet and showed no signs of fear, until they had stepped over the rails and his wagon stood on the rails; that at this moment the cylinder cocks were opened, and the steam rushed out with a sharp hissing sound, and a cloud of vapor blown towards the horses at the same time, which caused them to spring to one side and forward, overturning the wagon in which plaintiff was riding; that soon thereafter the plaintiff was found at this moment standing on his knees, but pitched forward with his face in the dirt; and he had his right shoulder badly hurt, his right arm broken, a severe cut under the right arm in his side, and a bad gash in his head, nearly on the top, and many other minor bruises, but not serious; that the break in the arm healed properly; the hurt at the shoulder proves to be a severe and permanent injury, causing atrophy of the right arm, inability to raise it, and leaving it almost entirely without strength in any position ; that the hurt of the head produces dizziness, so that he is in danger of falling when the fits come on, and has to seize something to hold him up, and renders him sleepy and helpless while it lasts; that he lost about thirty pounds of flesh, which he has not regained; that the shock has rendered him morbidly timid about handling horses and riding after them; that he is a Hollander, and was sixty-two years old at the time of the accident.
The defendant claims that when the team was first seen by the engineer, the engine was moving slowly towards the north, and the accident had occurred; the engineer, being on the opposite side of the engine with his attention directed to the rear of the train, did not see the team at all until after it had broken loose from the wagon and run up the road ; that when the signal had been given to the engineer, and he started the train back, Weigh tman started to drive across; that when he reached the track the engine stood nearly at the north line of the highway, and at this point the horses were frightened and sprang forward and to one side ; that the road was turnpiked and the wagon was drawn into such a position that it tipped over, and the men were thrown out, and the horses broke loose from the wagon and ran away ; that the injury was one which might have been avoided with proper and reasonable care on the part of plaintiff; and that it was not occasioned by any negligence on the part of the -defendant..
The cause was tried by jury, and the plaintiff recovered a . verdict for $2500, and the case comes here for review on error, the bill of exceptions containing substantially all the ■testimony in the case.
•Assignments of error number 1, 9, 10 and 11 raise the ■question of the sufficiency of the plaintiff’s declaration.The first relates to the introduction of evidence. The defendant objected to any being given, on the ground that the declaration does not state a cause of action, and asked the court to say to the jury that the plaintiff could not recover for the same reason. If this position of defendant’s counsel is correct, he should have demurred to the amended declaration ; but, aside from this, we do not think these exceptions well taken.
Upon the facts stated in the declaration, the duty of the defendant was clearly implied, and that is sufficient without an express averment. The engine and train had been obstructing the highway; Mr. Weightman had stood with his team and wagon some moments, waiting for the train to pass; it did so, and apparently for the accommodation of "Weightman, who wished to pass on east. The engine stood just out of the highway by the cattle-guard, and the road was clear; the horses were gentle and accustomed to cars and the usual noise made by them and engines. It was then “the plaintiff’s privilege to pass on, unless in some way warned to the contrary by the defendant or its servants. No such warning came until a burst of steam from the cylinder cocks was thrown from the engine against the horses just as they had crossed the defendant’s track, the wagon yet being thereon, enveloping the team in vapor, and frightening them to the extent that they became unmanageable. The engine ■stood heading towards the crossing, the cow-catcher being just over the cattle-guard. It was certainly not negligence-in the plaintiff in attempting to cross the track under such circumstances, and it was for the jury to say whether, under all the circumstances, it was negligence for the company’s agents not to have discovered the plaintiff’s team before, and to allow the steam to escape in the manner it did just at the time the plaintiff was making the crossing. We have discovered nothing in the record showing any necessity for opening the cylinder cocks just at that time. We find no-error under either of the assignments referred to.
Assignments numbered 2, 3, 4, 5, t>, 7 and 8 relate to-questions of evidence. We see no reason why it was not competent for Mr. Weightman to give his opinion as to what frightened the team. He was driving them at the-time, and his attention was directed to the surroundings, and-his observation must have enabled him to form some judgment. We find nothing improper in the rulings of the-court under either of these numbers.
The 13th, 14th, 18th and 28th assignments all relate to the-contributory negligence of the plaintiff. The court gave all that was proper to be given in the requests to which they refer in his general chai-ge. .
The attention of this Court is challenged to the negligence-claimed on the part of the defendant in the requests of the-defendant under the 12th, 16th, 17th, 19th and 20th assignments of error, and to those portions of the charge as given by the court numbered 23, 24, 25, 26 and 27 in the assignments of error. We have examined the requests referred to, and think they were all properly rejected. The most of these requests ask the court to pass upon the facts, which are not conceded, and therefore strictly within the province of the jury. The charge given by the court, and excepted to, is as follows: ' .
“ Naturally the first question which you will consider will be, was the engineer negligent in the manner alleged? And in determining this question you are at liberty to and should take into consideration the situation of the train, and the rights and duties of the engineer in its conduct. A railroad company has the right of way over the track, and in run ning its trains over its road has necessarily the right to make all reasonable and usual noise incident thereto, whether caused by the escape of steam, rattling of cars, or from other causes. The defendant had the right to use the engine in any usual, ordinary way, and open the steam-valves when necessary to the proper management of the train; and whether the opening of these valves was neeessai’y, and whether it was usual and common to do so under like circumstances, is a question of fact for you to determine; or whether, on. the other hand, the engineer was negligent in what he did, is a question of fact for you to determine. If, as a matter of fact, the valves were not opened, the plaintiff cannot recover in this action at all; for, in that case,.there is no evidence of any negligence on the part of the engineer. The two claims are conflicting upon the evidence upon some points. There is evidence on the part of the plaintiff which tends to show, as is claimed, at least by inference, that the valves were opened and steam emitted from the engine after the engine had come to a standstill and had backed off the highway, 'leaving room for the plaintiff to pass with his team, or Mr. Weightman to pass. On the other hand, it is claimed on the part of the defendant that these steam-valves were not at any time open after the train came to a halt. I instruct you, as a matter of law, that if the steam-valves were not opened by the engineer, there is no evidence of any negligence on his part which would justify a recovery in this action.
If, on the other hand, you find that the steam-valves were open so as to emit steam in the manner claimed, it then becomes a question of fact for you to determine whether, under all the circumstances of this case, in view of all the surroundings, the location and situation of the train, and the duty which the engineer owed in the conduct of the train to look out in the direction in which the train -was then going — to wit, to the rear of the train, as well as to use reasonable caution with reference to this highway — as to whether or not, as a matter of fact, the engineer was in the exercise of due and proper caution; and if he was, the plaintiff cannot recover. If he was not, the other questions will then be opened for your consideration. In other words, whether, in opening the valves, under the circumstances of this case, if you find the valves to have been open, the engineer exercised such care as a person of ordinary prudence would exercise under like circumstances; if he did, he was not guilty of negligence; if he did not, he would be guilty of negligence.
From what I have said to you you will understand that if both parties, the driver of this vehicle, Mr. Weightman, and the engineer, were alike in the exercise of ordinary care, and there was no negligence on the part of either, then this injury would be what is termed a mere accident, and there could be no recovery, and no liability on the part of either. If you find that there was negligence on the part of the engineer in the conduct of this train, and in the manner alleged, it then becomes your duty to inquire whether the plaintiff, or the driver of the wagon, who stands in the same position as the plaintiff, contributed to that negligence. For the rule of the law is that no party can recover in a court of law for the negligence of another if his own negligence — -or if, as in this action, the negligence of the person with whom he is traveling in the vehicle, the driver of the vehicle in which he is traveling — contributes to the injury. And so I charge you as requested, any negligence of the driver is chargeable to the plaintiff in this case; and if there was negligence on the part of the driver which contributed to this injury, the plaintiff cannot recover.”
We think this charge of Judge Montgomery was correct, and the exceptions relied upon by the defendant’s counsel cannot be sustained. It was very fair, and stated the law applicable. to the facts presented by the testimony very clearly.
The defendant’s eighth request, and its 29th, 30th, 31st and 32d assignments of error, relate to the subject of damages and the court’s rulings thereon. In the request made, the court is asked to charge that plaintiff is limited in his declaration to recovery for loss of business to the period of one year. We do not think, however, such construction is the proper one to place upon the declaration. The plaintiff alleges that he was permanently disordered, and avers what had been the effect of the injury upon him in the past, and what was then apparent to him. We think the construction claimed by defendant’s counsel too narrow, and no error was committed in refusing the request. In the charge given, and to which the other exceptions relate, the court said to the jury: The plaintiff, if entitled to a verdict, would have the right to recover
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The exceptions cover nearly all the paragraph above quoted. We do not think they can be sustained. It seems to us that the items stated and pointed out to the jury enter' into the character and extent of the actual injury complained of, and for which the plaintiff is entitled to recover, if at all. Seger v. Barkhamsted 22 Conn. 298; Sedg. Dam. 648, note 2; Shearm. & Redf. on Neg. 606; Thomp. on Neg. 1258; 3 Suth. Dam. 712, and cases cited; Ransom v. New York & E. R. Co. 15 N. Y. 415.
We have passed in review all the points made in the case by counsel for defendant, and have carefully examined the record and briefs on both sides. We fail to discover any error in the record, and
The judgment must be affirmed.
Cooley, C. J.and Champlin, J. concurred.
Campbell, J. I think there was no case for the jury. | [
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Campbell, J.
Plaintiff sued defendant for services in going with him from Allegan to Detroit, and giving his views about defendant’s condition, arising out of injuries in a railroad accident upon the Lake Shore & Michigan Southern road. There were some further items for expenses and treatment.
The defendant considered that he had a cause of action for his injuries, and had some correspondence with the eompanjT, who would not pay him what he was willing to accept. Finally it was arranged that he should go to Detroit and confer with the counsel of the company, and, if necessary, be examined. Plaintiff was to go with him, and defendant procured a pass for both. Plaintiff had also a desire to attend a medical commencement. The parties differ in their statements concerning the terms and arrangements.
Plaintiff testified in substance that, having ascertained that defendant was willing to accept $1200, although, as both testify, he thought he ought to have $1500 or more, they had a conference, in which it was understood that if defendant received $1500 plaintiff should have $300; if $2000, $500; and in similar way for a larger sum. Plaintiff’s employment was to lay the facts before the company’s counsel and medical advisers. At Detroit, at plaintiff’s suggestion, defendant was examined by another surgeon; and he was also examined by Dr. McLean, the company’s surgeon; and a settlement was finally had upon Dr. McLean’s report of the case, the amoimt having been reached by a reduction of defendant’s demand of $2500 down to $1500. Defendant did all the pecuniary negotiating himself, but plaintiff advised him at different times what to demand, and that he ought to have all that he asked.
The declaration contained a special count and the common counts. Such questions as arose under the special count, as such, were put out of the case by its relinquishment on trial. As the demand for compensation was for money actually due under any contract, if one existed, it was recoverable under the common counts. The verdict of the jury was for an amount which if based on the special contract must have left out items additional, which had testimony to support them.- Nevertheless, we cannot say, as matter of law, that the finding may not have been based on the special agreement to which plaintiff testified. We must therefore treat it as in the case.
Upon the proof of the value of plaintiff’s services, apart from any special contract, we do not see that the testimony was improper. It cannot be held, as matter of law, that the value of scientific services depends on a man’s actual average daily receipts. If that were so, there could be no room for advancement. A physician’s services may be worth much more than this. A jury may properly have before them all the elements which will aid them in forming a judgment, and may, where these elements are various, draw their own conclusions by comparison. The services rendered here were the description and medical interpretation of a serious and somewhat obscure inj ury, which, it seems likely from the testimony of the witnesses, required considerable professional skill to perceive and appreciate, and describe clearly. It appears also that the conclusions and descriptions of plaintiff corresponded with those of the other gentlemen who acted in the matter. The value of a physician’s services of that kind could not very well be measured by his usual receipts in daily business to such an extent as to exclude opinions of competent men as to their worth.
The only really important question before us is whether the special contract testified to, and on which the jury may have acted, was legally valid. The testimony of defendant, as well as of other witnesses, fails to indicate that plaintiff made any statements which were not accurate. But the contract must be measured by its tendency, and not merely by what was done to carry it out. There is no particular reason to suppose defendant got any more than he should have got. This, however, is not the test.
When we come down to the real nature of this alleged contract, it is. one which contemplated that plaintiff was to give his view of the facts relating to defendant’s physical condition and injuries, as they had existed and been developed under his observation, and the medical bearing of these facts, and the extent of past or future dangers and sufferings. While it is probable, from the medical testimony, that the present condition and future prospects can be got at with considerable certainty, yet it is also possible that some complications may escape detection, and some appearances may be ambiguous,unless explained by previous symptoms.or conditions. Beyond this there can be no doubt that suggestions may often be made by one physician which will aid others, to whom they might not have occurred from their own experience or observation. Under these circumstances, it is at least possible, if not probable, that the judgment ultimately formed will depend very much on the facts and opinions and the coloring of the statements furnished by the person relied upon as best informed. He puts himself in a position where both parties are expected to rely upon him, and to act on what he says.
When, under such circumstances, he makes the disclosure of his knowledge and opinions the subject of a contract, whereby his compensation is to depend on the amount obtained by his employer by reason of the disclosure, it is plain that he puts himself in a position where it is his interest to exaggerate. If he were to explain to those whom he is to influence that he is acting under such an employment, andas :a solicitor, then there would be nothing to put him on a different footing than other known agents. But no such explanation was contemplated, and none given. And, however honest a mah’s actual intentions may be, and however truth ful he may be, there is a direct temptation to misrepresent,, and a direct danger that the misrepresentation will operate-injuriously to the parties dealt with. Such secret agreements by persons putting themselves in positions of confidence come within recognized prohibitory. rules'as tendingto defraud. In such cases we cannot expect to find precisely analogous precedents, but the principle is familiar and of long standing. It belongs with the class of combinations to raise-prices by biddings at auction, or other devices whereby the illegality is not worked out merely by success, but inheres in the transaction itself; and with those contracts where success is dependent on personal influence and persuasion, having the appearance of disinterestedness.
TJpon this point we think the court erred in not so charging the jury; and therefore the judgment must be
Reversed, and a new trial ordered.
Cooley, C. J. and Champlin, J. concurred. | [
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Sherwood, J.
The complainant in this case was a lumberman, residing in the county of Alpena. In the winter of 1877-78 he was carrying on the business at Alpena and vicinity, and owned the timber on 320 acres of pine land which adjoined timber lands belonging to the State. During the winter the complainant cut and put afloat from his timber a large quantity of logs, intending to cut all from his own land. On an examination and survey thereafter made, after the timber had been taken off by the complainant, it was ascertained that a portion had been cut and taken by the complainant’s men from the lands belonging to the State, which, when ascertained, the State, by its agent (the defendant Menzo Swart), proceeded to adjust and settle with the complainant.
The bill alleges that complainant cut from what was called the “Carter Lands,” 161,700 feet, besides what'he took from his own timber, and that he had the right to take the timber he did from the Carter' lands; that John S. Minor furnished him with supplies while he was doing the lumber ing, and purchased from complainant all his logs, and that he furnished them to Minor in the boom at the city of Alpena;, that after the logs had been driven and placed in the boom, in the spring of 1878, defendant Swart called upon him, represented himself as State Trespass Agent, with full power to settle trespasses ; that he found complainant had cut and taken large quantities of logs from State lands, and, from his examination and personal knowledge, complainant had trespassed over 1,100,000 feet; that he, Swart, would settle for two dollars per thousand feet, and that unless complainant settled, he would be immediately arrested, fined and imprisoned ; that he believed and relied upon Swart’s statements, and settled, paying Swart $123.15 in cash for the expenses of examination, and $2100 in two promissory notes, running from Minor to Partridge, State Land Commissioner, for $1050 each, to fall due at different dates; that Swart took said notes, and turned them over to Partridge; that at the time he settled he believed he had made a mistake and cut on the wrong descriptions, but having since caused a careful survey and examination of the lands he finds that the amount of timber on the lands of the State and the Carter lands both, taken by complainant, amounted to only Ml,605 feet, so that he had really, in round numbers, taken from the State but 287,000 feet; that, in respect to the amount taken by him as claimed by Swart, said Swart’s representations were false, and he, Swart, knew them to be false; that Partridge threatened to transfer the notes to bona fide holders ;. and he prays that the court will relieve him by enjoining the collection of the notes, and order them to be delivered up for cancellation, or will take an account of the actual amount of the trespass, and have the excess above the amount of said trespass credited to him on the note, and he offers to give bond to pay the amount of the trespass according to the agreement on settlement.
To this defendant Partridge answered, claiming the benefit of a demurrer, stating that he was State Land Commissioner; that defendant Swart was StateTrespass Agent, and was legally authorized to settle the trespass; that he received the two notes in his official capacity, and turned them over to the State Treasurer; that he had not since had custody of or control over them; charged, on information and belief, that the lands were State property, and the timber cut also State property ; and that the notes were given in full settlement of the trespass. ;
Defendant Swart also answered that he was properly appointed State Trespass Agent, citing the act under which he was so appointed ; that at the time mentioned by the complainant he was in the active discharge of his duties, and had full authority to settle the trespass ; that in May, 1878, ho called on complainant, and stated to him that he was reliably informed and believed that complainant had trespassed to the amount of about 1,100,000 feet, according to the best information he could get; that complainant made some objection to the amount, and that he told him that he had better take steps to inform himself, and consult his attorney, and meet him at some future time, that the next day complainant called on him, and told him he was ready to settle, and took him to Minor’s office, and had Minor execute and deliver to him the notes, and took a receipt 'from him, made out by Minor’s book-keeper; that complainant seemed to act on Minor’s advice; that on information he believes complainant’s estimate of the trespass to be untrue; denies that complainant acted on his representations in the settlement of the trespass; denies any knowledge of the Carter State Koad reservation ; asserts that it is irrelevant and immaterial, and claims the benefit of a demurrer.
A temporary injunction was issued on filing the bill and affidavits attached. Proofs were taken on both sides in the case, which was heard on pleadings and proofs in the Alpena circuit and a decree entered dismissing the complainant’s bill on. the 11th day of February, 1881. Complainant appeals.
The fact that a trespass was committed, and a considerable amount of timber taken from the lands of the State by the complainant, plainly appears, and no question is made but that a settlement might lawfully be made for the same with the State; neither is the power of defendant Swart to make such settlement in behalf of the State disputed.
The vital questions in the case upon the merits are, Was a settlement made, and if so, What were its terms ? Both parties swear a settlement was made, and they agree that the notes in question and the expense money in making the settlement were given at the time ; but the consideration for the notes is a disputed question between the parties. It is claimed by the complainant that the consideration of .the notes was that he had by mistake cut and taken away from the lands of the State 1,100,000 feet of timber, for which he agreed in settlement to pay to the State two' dollars per thousand; that he did not know the amount taken, or that any had been taken, until informed by the State Agent, Mr. Swart, who told him he had examined and estimated it; and that he relied upon the assurance of Swart that there was that quantity taken in giving the notes and was deceived by Swart. Mr. Swart, on the contrary, denies that the settlement was made on the basis of two dollars per thousand, and says that, while he admits that he told the complainant that 1,100,000 feet had been taken from the land of the State, he told him he would take the $2100 and $123.15, and settle the trespass and for the timber, and upon these terms alone was the settlement made, the money paid, and the notes given. After the notes were given, the complainant caused a survey of the" land to be made, and a careful examination .and estimate of the actual amount of timber cut and taken .away from the lands claimed by the State, and found the same to be 441,605 feet, and of this amount 161,700 feet ■eame from the Carter lands.
After a careful examination of all the testimony, I cannot :avoid the conclusion that McElroy’s version of the contract of settlement is supported by a preponderance of the evidence which ought to govern in the case, and that the amount of timber found to have been taken under the examination and estimates he caused to be made was correct; that the damages to the State for the trespass and timber taken were to be settled and satisfied by the payment of two dollars per thousand for the amount actually taken.
It is claimed by counsel that as soon as the contract had been arranged and completed, it being one the State could*' lawfully make with the complainant, the parties stood upon their contract relations ; the complainant having received the-full consideration for his part, it only remained for him to make the payment promised to complete fulfillment, and this, I think, was the true status of the parties. As soon as-the agreement was made and became binding upon the respective parties, the element of wrong became eliminated and if any mistake had been made or fraud committed in securing the contract for the payment of the amount stated in the notes, it should, in some manner, have been corrected. There is no doubt in my mind but that the amount of timber taken from the State land by complainant was greatly mis.* represented by the State Agent, whether with knowledge of the facts or otherwise is immaterial, so long as the misrepresentation entered into the consideration of the notes,and their procurement was secured under a threat of prosecution and imprisonment. Under the testimony in the ease the complainant should have relief somewhere. There was in the case a clearly false representation of an important fact, and one which the complainant knew nothing about.
Two elements entered into the complainant’s settlement and the consideration for the notes ; one was the injury done by the trespass, and the other was the value of timber wrongfully taken. Both were adjusted in the arrangement, and the amount to be paid by complainant was two dollars per thousand feet. This amount of timber was unknown at the time to the complainant, and if known at the time to Swart, and not correctly given to the complainant, and he acted thereon in making payment, simple justice requires that a correction should be made; but the difficulty in the complainant’s case is, this is not the place for him to obtain his relief. The State is substantially the defendant. If we could grant the prayer of the bill, it would be wholly inadequate to-relieve the complainant. The notes taken are substantially under the control of the Treasurer of the State, and we can not, in a proceeding of this kind, enforce specific performance of the complainant’s contract made with the Commissioner of the State Land-oifice.
The complainant’s remedy must come, if at all, in some other form. The decree dismissing the complainant’s bill was therefore right, and must be
Affirmed without costs. | [
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Sherwood, J.
The plaintiffs bring ejectment in this case to recover possession of land in the county of Kent, purchased by them at an execution sale thereof made on the 28th day of May, 1877. The cause was tried before Judge Montgomery at the Kent circuit, without a jury, and the plaintiffs recovered. On the trial the circuit judge found among others, the following facts, viz.: “ That on the 4th day of November, 1876, the plaintiffs obtained a judgment against defendant Dwight Nankin et al. for the sum of $1793.57; that, upon this judgment, execution was issued on the day of its rendition to the sheriff of Kent county, who, before the return-day thereof, levied the same upon the lands in question ; that afterwards, on the 28th day of May, 1877, the said sheriff, by virtue of said writ, having first given the notice required by law, duly sold said premises to the said Luman Jenison and Lucius Jenison for the sum of eleven dollars per acre, and thereupon the said sheriff, on the day of the date of said sale, made, executed and delivered to said purchasers the certificate of such sale required by law, and at the same time made, executed ánd filed in the office of the .register of deeds for the county of Kent aforesaid one of said certificates ; that the said premises were not, nor was any part thereof, ever redeemed from such sale, and that after the expiration of more than fifteen months from the date of said' sale, and on the 19th day of September, 1878, the successor' in office of the sheriff making such sale completed the same by executing and delivering, in due form of law, a conveyance of said premises to the said Luman' Jenison and Lucius Jenison; that on the 2d day of December, 1873, and for several years prior thereto, the said Dwight Nankin had been and then was the owner in fee-simple of the premises mentioned, and that on said 2d day of December, 1873, the said Dwight Nankin, without any consideration therefor, and with the intent to hinder, delay, and defraud his then existing creditors, and also with intent to hinder, delay and defraud his future creditors, made, executed and delivered to the said Albert D. Rankin a deed of the premises aforesaid,' and that the said Albert D. Rankin knew of the intent of said Dwight Rankin at the time he received said conveyance, and received the same with the intent to hinder, delay and defraud such creditors ; that said Dwight Rankin, at the date of such conveyance, was indebted to the said plaintiff herein, in the sum of eight hundred and forty dollars, and was also indebted to other parties in considerable sums; that the said Dwight Rankin, at the date of making such conveyance, was about embarking in a hazardous business, and did immediately thereafter embark in such business as one of the firm of Haven, Blake & Co., which firm, while he was yet a member thereof, and within less than a year thereafter, failed in business, were insolvent, and owed the plaintiff herein more than fifteen hundred dollars, and were also largely indebted to others; that the plaintiffs at the time of the commencement of this suit were and still are the owners in fee-of the premises above described, and were then and are still entitled to the possession thereof, and that the said deed so given by the said Dwight Rankin to the said Albert D. Rankin is void and of no force or effect as against these plaintiffs, and that the said defendants at the time of the commencement of this suit were and are still in the possession of said premises unlawfully withholding possession thereof from the said plaintiffs.”
Some other findings were made at the request of counsel, but the foregoing are sufficient to raise the questions necessary for the disposition of the case.
Counsel for defendants took the following exceptions to the findings of the court, viz;: “ (1) That said finding does not purport to state the facts, but states conclusions instead; (2) that said finding of facts is insufficient to support the judgment ; (3) that they except to the neglect to find, as matter of law, that defendants were entitled to judgment; (4) that they except to the neglect and refusal of the court to find that this suit was brought too late, and that for that reason plaintiffs could not recover; (5) that they except to the neglect and refusal to find that the plaintiffs had lost their right to bring this action by laches; (6) that they except to the neglect and refusal to find, as a matter of law, that the plaintiff must bring this suit, if at all, within one year as provided in section 6108 How. Stat.; (7) that they except to the conclusion of the circuit judge that this action might be brought at any time within fifteen years after sale; (8) they except to the conclusion that any title whatever passed to the land in question to plaintiffs by reason of the execution sale and proceedings thereunder.”
The provision of the statute referred to in the sixth exception reads as follows: “ All the real estate of any debtor, * * * including lands fraudulently conveyed, with intent to defeat, delay or defraud his creditors, * * * shall be subject to the payment of his debts, * * * and may be levied upon and sold on execution as hereinafter provided, * * *: provided, * * * that in case of a levy upon the equitable interest of a judgment debtor, the judgment creditor may, before sale, institute proceedings in aid of said execution, to ascertain and determine the rights and equities of said judgment debtor in the premises so levied upon, and that in case of a sale of said premises without having ascertained and determined the interest of said judgment debtor in the premises so levied upon and sold, he shall, within one year, institute proceedings to ascertain and determine the same, and to settle the rights of the parties in interest therein.” How. Stat. § 6108.
It is evident the circuit judge in t this case followed the case of Cleland v. Taylor 3 Mich. 201, and held that ejectment was proper after sale made and the deed given. The statute then under consideration was simply a provision that lands fraudulently conveyed might be sold on execution. Rev. Stat. 1846, p. 317, § 1. That statute was amended in 1867 so as to read as it does now, and- contains provisions stating how and where persons desiring to reach interests in lands fraudulently conveyed should proceed. Sess. L. 1867, vol. 1, p. 132. Evidently the statute was intended to cover such cases as the present.
In Messmore v. Huggard 46 Mich. 558, this subject came under examination. Messmore levied an execution on lands mortgaged, and sold them without taking any step to defeat the mortgage, and then filed his bill to set it aside, as a cloud upon his title. It was held by taking this course he recognized the mortgage on the sale, and the mortgage being for the value of the land, nothing passed by the sale. In discussing the case Mr. Justice Cooley says: “ It cannot plausibly be claimed that the law will suffer the judgment creditor to occupy any more favorable position as bidder at his sale than do all other persons. Judicial sales are required to be public for the purpose of inviting full and free competition, with the primary object of producing for the benefit of parties concerned as large a price as public biddings can secure for them. A secondary object is to give all who may desire the property an equal opportunity to compete for it. But full and free competition implies that all parties have equal knowledge of the state of the title ; and the policy of the law is defeated if some one party may bid with such advantages as render competition impossible.”
These remarks, I think, apply with great force to the case in hand. The land in this case was offered for sale ; nothing more and nothing less. But the land was not owned by the defendant in the execution. It had been sold and conveyed to Albert Bankin. His deed was not void; at most voidable only, if what plaintiff claimed was true. The record showed, as well as the conveyances themselves, that the land was not that of the defendant in the execution. No claim was made in the notice -of sale that the deed to Albert was void, and that the property offered for sale was only the interest of Dwight Bankin. It is very evident, in this case that all the parties who might feel inclined to bid stood on an unequal footing; they did not have equal knowledge of the state of the title, and in all such cases there is a failure to secure one of the main objects of a public sale, viz., that all bidders should stand on an equality with the judgment creditor at least. Ledyard v. Phillips 32 Mich. 13.
In this case, whatever the form of the levy was, only the equitable interest of the defendants could properly be levied upon, and under the statute the judgment debtor may, before sale, institute proceedings in aid of execution, and have determined the interest of the defendant in the premises; or, if he fails to do this, and proceeds to make sale, he must do so within one year thereafter. The plaintiffs in this case did neither, and still claim the benefit of the statute attaching these conditions to their right to make such levy and sale at all. This they cannot have. If the plaintiffs seek to make title to equitable interests in the lands of their judgment debtors under this statute, the highest considerations of justice require that its provisions shall be strictly complied with. It was about five years after the sale was made in this case before the present suit was brought. There was no occasion for making Mrs. Eankin a party to this proceeding, and it should not have keen done.
The judgment must be reversed, and judgment entered for the defendants, who will recover costs of both courts, and the record must be remanded.
The other Justices concurred. | [
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Champlin, J.
The bill was filed to foreclose a mortgage ■covering certain real estate in Kalamazoo, executed by George W. Kennicutt and his wife, on the 16th day of April, 1860, to Mary Davis, to secure the payment of $120, one year after date, with interest at the rate of ten per cent, peiannum, according to the conditions of a certain promissory note of even date of the mortgage. This mortgage was, on the 1st day of April, A. D. 1863, duly assigned by Mary Davis, the mortgagee, to a person of the same name, Mary Davis, who died before this suit was commenced, and is now represented by complainant as her administratrix.
There are several indorsements made of payments on the note and upon the mortgage, but no proof, other than such indorsements, was offered by complainant to show that they had actually been made; and the defendant, while inferentially admitting in his answer the making of said note and mortgage, and also testifying to it upon the stand, also testified that he never made any of the payments of the indorsements appearing upon the mortgage, and testified that nothing in fact had been paid thereon. There is no question raised in the case but that the note and mortgage were originally a valid indebtedness, and the complainant’s right to a decree-is resisted upon two grounds. They are these:
First. The answer claims that the defendant did not make-said mortgage at any time within twenty years before the date of commencement of said suit, and that within twenty years he had not made any payments on said mortgage, and that he had not within that time made any promise recognizing said note and mortgage.
Second. The answer of defendant also claims that the said Mary Davis, deceased, was a sister of defendant’s wife, and that she was an inmate of his family from 1838 until 1881, except for about two years, and that during all that time defendant furnished her board, washing, and clothing, and with care and attention when she was in poor health, and that for the care, board, clothing and attention, said Mary Davis never-paid any consideration to the defendant, and that long ago it had beeif considered that on account of the relationship she had to his family, the note she held against defendant should offset the expense of furnishing her a home in his family,. and that by means of said board, care, washing, etc., said note has been fully paid.
The suit was commenced October, 1883. Attention is called by defendant’s counsel to the face of the bill; that it does not set out any payments as having been made on the note and mortgage; and that it appears to be an attempt to foreclose a mortgage that became due April 16, 1861, without showing any excuse for the laches; and counsel claims that the bill shows no equity that entitles complainant to the relief prayed. In support of this position he cites the following cases: Hurlbut v. Britain 2 Doug. (Mich.) 191; McLean v. Barton Har. Ch. 279; Campau v. Chene 1Mich. 400; Reynolds v. Green 10 Mich. 355; Ford v. Loomis 33 Mich. 122.
The case of Ford v. Loomis is not in point. The others are cases where the objection was taken by demurrer. In this case the objection is not raised by demurrer, but by answer, and the case is before us upon pleadings and proofs. Had the objection bepn taken by demurrer, the complainant would have been obliged to go out of court, or amend his bill showing that the suit was not barred by the laches of the holder of the mortgage. But the objection to the bill cannot be urged upón the hearing upon pleadings and proofs, if the proofs show that the action is not barred.
Prior to 1879 there was no statute of limitations in force in this State applicable to mortgages upon real estate, and no conclusive presumption of payment, after a certain period had elapsed, existed by express legislative enactment. But courts of equity, following the analogies of the law, have refused relief in cases where it would have been barred at law by lapse of time. The bar is not, however, a legal, but an equitable one, and the presumption of payment may be rebutted by circumstances. Abbott v. Godfroy's Heirs 1 Mich. 179; Michigan Ins. Co. v. Brown 11 Mich. 272; Curtis v. Goodenow 24 Mich. 18; McKinney v. Miller 19 Mich. 142; Baldwin v. Cullen 51 Mich. 33.
The evidence in this case shows conclusively that both mortgagor and mortgagee recognized the continued validity and.force of the mortgage debt. The defendant introduced several witnesses, who testified to conversations with complainant’s intestate, in which she claimed the existence of the mortgage, and that nothing had been paid upon it, and as late as January 26, 1882, the defendant wrote to Miss Mary Davis, the person who held the mortgage, also recognizing the existence and validity of the mortgage, and his obligation to pay the mortgage debt. The language used by him in the letter is as follows: “ In the meantime I will like to know your .whereabouts, in case Mr. De Yoe finds a buyer for my house and lot, as 1 will want you to get your money and discharge the mortgages you have on the place, so I can give a good title.”
"We think the evidence in the case clearly rebuts the presumption of payment raised by the lapse of time, especially when taken in connection with what the evidence discloses was the object and purpose of complainant’s intestate in purchasing the mortgages. Miss Davis, the assignee of the mortgage, was sister to Mrs. Kennicutt, the wife of defendant. This mortgage was upon the homestead. Mr. Kennicutt was in straitened circumstances, and Miss Davis purchased the mortgage so that her sister might not be deprived of a home during her life. Miss Davis also lived in the family as a member thereof. She assisted in household duties, not as a servant, but as one of the family. I do not think it was intended to charge her for her board, and that part of the defense is not made out.
The indorsement of interest upon the mortgage and note must be allowed. The mortgage was assigned to complainant’s intestate on the 1st day of April, 1863, and on the 6th of April, 1863, she agreed with defendant, as appears by an indorsement on the note, that the note should, from and after that date, bear but seven per cent, interest per annum. The interest must be computed at that rate from that date. There can be no personal decree against defendant for the mortgage debt represented by the note, as the right of action upon that was long since barred by the statute of limitations.
The court below computed the interest at the rate of ten per cent. Although the indorsement on the note is not signed, it is stamped with a five-cent internal revenue stamp, and being indorsed upon the note while in the possession of the owner, Miss Davis, it is presumed to have been made by her, or by her authority and direction, and is evidence of an agreement to change the interest from ten to seven per cent. This indorsement was offered in evidence by complainant, and she must be bound by it.
The decree appealed from must be modified in this respect, and, as modified, affirmed, with costs of this Court to dedefendant ; the sale to occur on or after September 1, 1885, if the amount decreed and costs are not sooner paid.
The other Justices concurred. | [
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Campbell, J.
Plaintiffs sued defendant to recover back taxes paid under protest upon logs assessed in Muskegon, but actually held by plaintiffs in Clare and Newaygo counties. The facts are not disputed, but there is a controversy whether the property in Clare and Newaygo should be held for taxing purposes, as liable to taxation in the city of Muskegon, where plaintiffs have a business office.
The case showed that plaintiffs’ principal business office in Michigan is in the city of Muskegon, in the First ward, where this assessment was made. At that time the firm had in and near Muskegon, or outside of any of their local establishments, about nine and a half millions of logs, which they gave in as taxable there. They had in Newaygo county a camp known as “Camp Three,” and about that camp they had 7,592,837 feet. In the same county was Camp Jacobs, with about 10,000,000 feet. At Camp Bagley, in Clare county, they had a little over 8,000,000; and a few thousand feet at their mill in Laketon, Muskegon county.
Their lumber market was Chicago, in the state of Illinois, where sales and collections were made. .Their financial headquarters were* in Muskegon, which was the place where the general accounts were kept. The logs were cut into lumber chiefly at mills on Muskegon lake.
The only question is whether the logs at the camps in the other counties were assessable in Muskegon. For if not, we think there was a want of jurisdiction, which would make, the assessments as to them void, as beyond the right of the city officials to deal with at all.
Our taxing laws have so far changed the rule of holding personalty present at the residence of its owner, as to make it taxable where it is found, if connected there with some fixed local establishment. This rule was found necessary to ■secure to localities where property is located and protected, •the right to make it subject to local taxation. This is the rule where goods and chattels are actually situate in some township, where the owner or person in charge “hires or occupies a store, mill, place for sale of property, shop, office, mine, farm, storage, manufactory or warehouse therein, for use in connection with such goods and chattels.” 1 How. Stat. p. 126T.
The case shows that each of the camps named has connected with it, in order to carry on logging operations, in the region dependent upon it, an office, store, blacksmith shop, slaughter-house, boarding-houses, barns and outhouses; that the local superintendents purchased their own supplies, superintended and paid the men, kept accounts of the cutting and scaling, sold goods to the men and to others, and settled most of the local supply bills, and the local business, receiving funds, and making returns each year to headquarters.
¥e think that the office and other buildings were used in connection with the logs which came from these camps, as plainly as the Muskegon buildings were used in connection with the lumber shipped thence to Chicago, and that the logs held there a.t the time of the assessment were assessable at those offices, and not at Muskegon, until sent forward from where they were lying gathered as the product of those camps. The logs may or may not be intended to be sold as logs, or to be worked up into lumber. This does not seem to be important under the statute. The ore product of mines is seldom sold at the mines, and is sometimes retained and reduced to metal by the mine-owners themselves, before placed on the market. But this would not, under the stat,nte, prevent taxation at the mine. The statute for purposes of taxation looks chiefly to see whether there is a local establishment with which the property is, for any substantial purpose, connected. The logging camps, such as are described in this record, seem to us to have such a connection with the logs cut and prepared for moving under their management.
We need not dwell upon the legal questions at length, as ••several decisions have been made involving similar consider ations. This case appears to us free from difficulty, and manifestly within both letter and spirit of the statute.
The judgment should be affirmed.
Cooley, C. J. and Sherwooh, J. concurred. Champlin,. J. did not sit. | [
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SnEEWOOD, J.
The plaintiff .in this case brings this action to recover of the defendant for a quantity of saw-logs, which he claims to have sold to the defendant in the month of May, 1883. The action was in form assumpsit. The declaration ■as filed contained two special counts setting up in detail the transaction between the parties, and added thereto were the ■common counts. On the trial, after the evidence was closed, the court ordered the plaintiff to elect on which count he would ask a recovery, and the plaintiff elected to proceed on .the common counts.
The contention between the parties was principally as to ■the construction and legal effect of the transaction had between them on the 21st of May, 1883. The plaintiff contended on that day he sold to the defendant 22,440 logs, rated and sold as follows: “1,146,434ft. white pine logs at $7 per 1000 ft., and $632,617 ft. Norway, at $5.00 per M. that these amounts were delivered to the defendant in pursuance of such sale, and had not been paid for. The defendant insisted that the transaction was not a sale, but that the defendant took title to the logs to secure to the plaintiff his pay for the same from the Prentiss Lumber Company -at Alpena, which was the real purchaser, and did not become personally liable therefor. Upon these two theories the case was tried by jury before Judge Emerick, in the Alpena circuit, where the plaintiff had judgment for $8454.07. The case is now before us on writ of error.
The record shows that George Prentiss was president of the Prentiss Lumber Company, and its treasurer, and had the .principal management of the business of the company; that the defendant has for many years been engaged in banking business, and was president of the Alpena National Bank at .the time the alleged sale of plaintiff’s timber was made, and had the principal charge of all its transactions. It further .appears that Prentiss and the defendant were old acquaintances, and that the former had been in the habit of borrowing money from the latter for years; that at the "time of the sale of the lumber in question the Prentiss Lumber Company and Prentiss owed Maltz and the bank ten or fifteen thousand dollars; that at this time Maltz had Prentiss’ promise that lie should have the mill property as security for money which Maltz or the bank might advance for the company; and that Prentiss did subsequently, on the 7th day of September ¡thereafter, give the Prentiss Lumber Company’s chattel mortgage to Maltz, in the sum of $125,000, upon all the property it then had and owned, to secure to him the payment of $15,000, and to the Alpena National Bank the sum of $80,575, and the remaining sum to different individuals therein designated ; and that very soon thereafter the PrentissLumber Company failed. The fact that Davis had the logs-to sell is not questioned, and that he had talked of selling them to Prentiss, and that Prentiss could not make the terms-of payment -required by Davis, appears from the testimony of both. Such being the fact, Davis testifies that Prentissgot his banker, Maltz, to make the purchase of the plaintiff, and then he, Maltz, sold the logs to the Prentiss Lumber Company, making the terms of payment as desired by that company; or, rather, that he would sell to the company taking the paper of the company for the timber with a stipulation that title to the logs should remain in Maltz until the-paper was paid, and that Davis should take the notes of the company for pay for the logs, deposit same with Maltz, and-be permitted to draw against it. Plaintiff also introduced in evidence a bill of sale of the logs to George L. Maltz, and one from Maltz to the Prentiss Lumber Company conveying-the logs to it, and containing the stipulation in regard to-title as testified to by Davis. Plaintiff also introduced testi-’ mony tending to show that Maltz received the logs, which in-the bill of sale -were valued at $10,988.12, and that the only amount he has ever received for the logs sold to Maltz was-$3000; that he can neither get his money nor the logs; that Maltz received from him the title-to the logs, which he continued to hold until he sold them, and that he also holds thp notes given by the Prentiss Lumber Company for them, and which were indorsed by the plaintiff.
The defendant’s testimony contradicts the plaintiff’s on-many material points, as also does that of Prentiss. It is-conceded, however, by counsel for Maltz, or, rather, was so conceded upon the trial, and I think very properly so, that there is no question but that the plaintiff can recover if he-shows a sale to Maltz, and this must necessarily dispense with all other theories in the case. The conflicting testimony upon this point was all submitted to the jury, and their spe cial attention, challenged to the subject by counsel in their special question submitted to them to find, as follows: “Plaintiff's Question. Did the plaintiff, Davis, sell his logs to Maltz, both parties intending that he-become the debtor therefor? Answer. Yes.” This is a very clear statement that such sale was made, and the intention in doing it was that Maltz should become the debtor of Davis therefor. The following question was submitted by counsel for defendant and in like manner answered by the jury: “ Defendants Question 7. Do you find the title was vested in Maltz also for the purpose, on the part of Davis, of better satisfying the bank of the sufficiency-of the security, and thereby the better enable him to get the notes discounted? Answer. No.” This answer entirely negatives the theory, or evidently one of the theories, of the plaintiff, and makes more certain, if possible, the finding of the jury that there was an absolute sale to Maltz. It is not only, in connection with the other, a finding for the plaintiff that there was an absolute sale, but it is really a rejection of all other theories of both plaintiff and defendant.
There remains but one other question for examination: Did the court commit any error in receiving or rejecting the testimony which could have reasonably prejudiced the jury in coming to the conclusion they did in the case ? The record and briefs of counsel have been carefully examined, and I find none of which the defendant can seriously complain. It is a clear case upon its facts. The charge of the circuit judge is full and explicit, and covers all the legal points involved, and, no error appearing,
The judgment at the circuit must be affirmed.
Cooley, C. J. and Champlin, J. concurred.
Campbell, J.
-In my opinion the case against Maltz was not that Tie was a purchaser, but merely a trustee, and no liability was made out against him on the case as presented on either side. I think there should be a new trial. | [
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Champlin, J.
Plaintiff brought ejectment against defendant to recover the possession of certain land which he claims in fee.. The declaration contains two counts. In the first he claims title to the north 61 acres of the east $ of the northeast ¿ of section 11, in town 1 south, range 9 west. In the second count he claims title to the east % of the northeast i of said section, and a piece of land in the northwest corner of the east \ of the southeast ¿ of said section, being tWenty-two acres of land, bounded south by the highway. It will be observed that the second count embraces all the land described in the first count, besides other land.
The defendant filed the statutory plea of the general issue. A trial was had before the court, without a jury, and judgment rendered in favor of the plaintiff as to the lands described in the first count of his declafation. Both plaintiff and defendant claim title from one Benjamin Atwood, deceased; the plaintiff, as a devisee under his will, and the defendant under a sale made by his executor. Benjamin Atwood died April 20, 1874, leaving a last will and testament, wherein he devised to his grandson, the plaintiff, the land in controversy. In said will he appointed Ephraim Atwood and Sylvester Fredenburg executors. Ephraim Atwood declined to act as executor, and on May 22, 1874, the will was admitted to probate, and letters testamentary were issued to Fredenburg. The plaintiff, at the time of probating the will, was an infant, and Ephraim Atwood was appointed as guardian by the probate court. Ephraim Atwood took possession of this property and held the same until defendant took possession under sale of December 11, 1880. The widow took as dower thirty-eight acres of the land devised to plaintiff,— all that portion of the land described in the second eount of the declaration, except the sixty-four acres mentioned in the first count.
On the 15th day of December, 1879, the probate court licensed the executor to sell seven parcels of land, among them being this in question — this one hundred and two acres. The order of the probate court for hearing the petition to sell was made on November 17, 1880. The executor, prior to July 3, 1880, sold three of the parcels not specially devised by said Atwood. On June 18, 1880, the executor filed his final account. On July 3, 1880, he petitioned the probate court for an order of contribution under the statute, and the court appointed the 2d day of August, 1880, for hearing said petition. On the last-mentioned date the court decreed that plaintiff was a devisee named in the will, and had re •ceived from said estate the land described in the second •count of the plaintiff’s declaration, and ordered that he contribute for the payment of the debts of the estate $614.25, -and that he pay the same within twenty days, and in the event of his failure to do so, that the executor proceed to sell under the license of December 15, 1879. Plaintiff or his guardian ■did not pay, and in September, 1880,-the executor gave notice of sale for October ' 30, 1880. On October 30th he adjourned the sale to December 11, 1880. On November 1, 1880, the probate court, without notice to any one, corrected its assessment and increased that of plaintiff to $701.31. Without any other proceedings or notice the executor,- on December 11, 1880, sold the land described in the second •count of the plaintiff’s declaration, and the other piece described in the notice of sale, to the defendant.
On December 14, 1880, the executor made a deed of said land to defendant. This deed recites “that in pursuance of •said several orders above referred to he has sold, and does give, grant, sell, and convey unto William Frost” the land described, and this deed is signed by Sylvester Fredenburg individually, and not as executor. Under this deed defendant took possession of the land described in the first count of plaintiff’s declaration.
Clarence Atwood became twenty-one years of age in June, 1883, and in October, 1883, brought this suit. He never has received anything from his guardian, and his guardian •never objected to his bringing this suit for the recovery of this property. The executor made his report of sale to the probate court, showing the sale to defendant, and showing . ;all the ’proceedings, and that they were had under and by -virtue of the license of December 15, 1879., The sale was duly confirmed. The plaintiff’s guardian approved the sale ■to defendant, and received and accepted the larger part of the proceeds as such guardian.
The first point made by defendant is whether the plaintiff .-shows in himself the right to the possession necessary to support this action, independently of any question touching the ■defendant’s right. This right rests entirely upon the seventh clause of the will of Benjamin Atwood, deceased, which reads as follows:
“ 7. I give and devise to my grandson, Clarence Atwood,, son of John M. Atwood, the balance of my land} not otherwise disposed of, on said sections eleven and twelve, and lying north of the highway; the possession and control of the same to remain in Ephraim Atwood, my executor, until Clarence shall arrive at the age of twenty-one years; the possession and control of said land to be -by said Ephraim Atwood transferred to said Clarence, whenever, after arriving at the age of twenty-one years, and not until in the judgment of said Ephraim, said Clarence shows sufficient capacity and prudence to be intrusted therewith. In case said Clarence should die without issue, then this land so devised to him shall descend to all my children, undivided, share and share alike; the use of said property to be by said executor applied for the benefit of said Clarence.”
It was held by this Court in Covert v. Morrison 49 Mich 133, that the action of ejectment is a possessory one, and can be maintained only at the instance of the party entitled to the immediate possession of the land. By the seventh clause of the will above quoted the possession and control of the land is expressly given to Ephraim Atwood, and is to> remain in his possession until in his discretion he transfers it to Clarence. Ephraim was also to receive the use of the property devised, and apply the same for the benefit of Clarence. Whether the legal effect of the devise is to vest the legal title in the land in Ephraim Atwood, as contended for by defendant’s counsel, it is not necessary to decide, as the contest now is not between Ephraim and Clarence; but, under the express provisions of How. Stat. § 5565, Ephraim is deemed to have a legal estate therein of the same quality and duration, and subject to the same conditions as his beneficial interest. The trust created by the will appears to be authorized by How. Stat. § 5573, subd. 3. The fifth, fourteenth, and seventeenth findings of fact are the only ones bearing upon the question now under consideration. We quote them entire.
5. “ The plaintiff, at the time of the death of Benjamin Atwood, was an infant. After the probate of said will the said Ephraim Atwood was appointed as his guardian, and took and held possession of the sixty-four acres described in the first count of plaintiff’s declaration, until after the executor’s sale to the defendant hereinafter mentioned, when the defendant obtained possession, and was in possession of said sixty-four acres when this suit was commenced. The plaintiff became twenty-one years of age in June, 1883, before this suit was commenced, and he claims the title to the land in controversy through the said will of Benjamin Atwpod, deceased.”
14. “The plaintiff in this case never acquiesced in said sale to defendant, either before or after he became of age, or of his right to the possession of said premises; that he never received any of the surplus money on said sale; and his guardian, Ephraim Atwood, did not object to his taking possession of said real estate after he became of age, nor to his bringing this suit to obtain possession thereof; and said Ephraim Atwood has not done nor said anything in relation to the possession of said premises since the defendant went into possession. The said guardian approved of the said sale to the defendant, and received and accepted the larger part of the proceeds thereof as such guardian.”
17. “ The possession by Ephraim Atwood, stated in paragraph No. 5, was not taken, or at any time held by him, under any express assent of the executor, nor by any agreement on his part that it might be done. The said executor never surrendered the said land to the devisee or his guardian, nor objected to his taking possession thereof. Said executor did not continue in possession of said premises, or pay any taxes thereon.”
It does not appear that Ephraim Atwood ever renounced the trusts of the. will, by which he was clothed with the right to the possession of the property for the benefit of Clarence. The fifth finding states that after the probate of the will Ephraim was appointed guardian of the minor, Clarence. This was a guardianship over the person of the minor. Nothing is said of any guardian of the estate of the minor. The possession taken by Atwood of the land was, doubtless, as the testamentary trustee of the property, for the benefit of Clarence. Such would be the necessary inference from the findings.
For all that appears, the right of possession still remains in Ephraim Atwood. The only way the possession or the right of possession can pass front Ephraim to Clarence is by an actual surrender, or by an instrument in writing. Neither of these material facts are found to exist, and without them the plaintiff has no right of action. The facts found that the guardian, Ephraim Atwood, did not object to Clarence taking possession of said real estate after he became of age, norto his bringing suit, are not equivalent to finding the facts affirmatively of a transfer of the land to Clarence after he arrived at the age of twenty-one years, in discharge of the trust reposed in him by the seventh clause of the will. We forbear to discuss the other points raised, as, under the facts stated in the record, we think the plaintiff is not entitled to maintain this action.
The judgment must be reversed and a new trial granted.
Cooley, O. J. and Campbell, J. concurred. Sherwood, J. did not sit. | [
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Campbell, J.
The plaintiff in certiorari, who is owner of lands in Deerfield, in the county of Lenawee, brings his writ to review certain proceedings, whereby the respondent, Robertson, who is drain commissioner of Blissfield, in Lena-wee county, undertook to lay out a drain in the line of an old county drain, and build it through the four townships of Blissfield, Palmyra, Raisin and Deerfield, in Lenawee county, and charge and assess the cost of construction, being between $8000 and $9000, chiefly on the lands traversed, and partly on the townships themselves, and against a fifth township, Ridgway, not along the line, for benefits to the public at large. . Plaintiff sued out the certiorari upon grounds going to the jurisdiction of the commissioner to act outside of his township, as well as upon other jurisdictional questions. After this case came into this Court application was made by respondents to allow a further return by ■way of bar, to show tbe pendency of equity proceedings to 'restrain the enforcement of the assessments, and for some ¿further relief. But we declined to permit this, since equity .proceedings do not bar legal proceedings, as a general rule, •■and ma}r go on collaterally at the same time in aid of the ’relief without confusion. If there are objections, they usually apply in equity rather than at law, and should be set up there.
The objection to the power of the township commissioner to take such important action as was here had, out of his -own township, is the one that first meets us in considering plaintiff’s grievance, inasmuch as the land in Deerfield is charged with the expense of work where all the important steps are taken and the record kept in another town. Under our Constitution each township is a separate municipality, whose officers are elected by town residents, and who are themselves residents. No person not living in the township has any voice in its affairs. No instance has ever been known in our history where a town or town representative has been allowed to exercise any governmental powers in another town. It has always been understood that in providing, as it does, for the organization and incorporation of townships, the Constitution dealt with them as recognized and ancient municipal bodies, the substantial character of which was intended to be perpetuated. To allow one township or its ■officers to meddle in the management of public interests in -others, or to levy taxes against them or their people, would be subversive of their independent character. Such a power ■ cannot be inferred.
If the Drain Law of 1881 was designed to reach such results, the consequences are very startling. Under that act the commissioner who lays out a drain not only determines whether it shall be laid, but also its line and dimensions and ■plan, and who shall pay for it. He fixes, by his own pleasure, the amount to be charged on any parcel of land. Hefj can determine, without review or appeal, to charge any amount he sees fit on any township, or on any city or village, .and if the present proceeding is valid, it does not seem to be necessary that these municipalities shall be traversed 'by the drain, nor, so far as language goes, that they shall even be in the same county. See How. §§ 1705-1711. He is even empowered to charge the State itself for its lands improved, and demand payment from the Auditor General and State Treasurer. § 1711. That no town can draw any extraterritorial power from general language has frequently been decided. Cooley’s Const. Lim. 212; Riley v. Rochester 9 N. Y. 64; Denton v. Jackson 2 Johns. Ch. 336; Worth Hempstead v. Hempstead 2 Wend. 136. It was held by this Court in Highway Com’rs v. Van Dusan 40 Mich. 429, that a contract by township authorities to pay for a sewer in a corporate village within the township limits was void; and’, as expressed by Graves, J., “ for the purpose of the question the improvement might as well have been made in another state.”
The powers granted, if belonging to respondent, are a direct and immediate interference with the independence of other townships, and an exercise of some of the-most important governmental powers of the State over people and municipalities which have no voice, direct or indirect, in the election or appointment of the functionary exercising them. If such a jurisdiction can be given to a township officer, outside of the township, it is impossible to find any power that cannot be given him in any part of the State. Such a grant to a local officer is too repugnant to our political system to find support anywhere. -It may be possible and' proper to allow the acquisition of property elsewhere under some circumstances. This has sometimes been permitted for reasons connected with the suppression of contagious diseases, and for some other local necessities. But no instance is Known where such outlying property gives its owners any local sovereignty. Two townships cannot govern the same territory.
It was urged on the argument that constables can act outside of their towns, and therefore other officers may be allowed to do so. But this argument is fallacious. We had occasion, in Allor v. Wayne County Auditors 43 Mich. 76, to refer to these officers as constitutional officers, and to point out the duty of the legislative authority to respect the municipal essentials, holding that when we adopted institutions we did so with all their fundamental qualities. But constables, while from time immemorial elected by the people, have never been regarded as acting as agents of their locality. They are ministers of public justice, and in that capacity are State ministerial officers, with some powers strictly local, and some not local. They have nothing to do with the transaction of local business,- and are, in many respects, on the same footing with justices and judges, who are chosen by local electors, but who serve the State in enforcing the general laws, which are always of general concern.
We have no instance in our local institutions of the laying out of w-'ays or the levying of taxes except by the persons chosen in the community that is burdened, either alone, or as representing them in the county or the State. Taxation by non-representatives is unheard of.
If the Drain Law gives any such power, it cannot to that extent be maintained. But we think that the statutes, when compared together, have no such meaning.
It is a composite law providing for both town and county drains, and for economy of language the county and town commissioners are frequently spoken of in the same section. Where this is the case, it is only rational to infer that each is meant to act in his own sphere. By such a construction the act is readily harmonized. The only section which can be so read with the rest as to favor the power of a town commissioner to act out of his township is TIow. Stat. § 1696, being section 6 of the Drain Law of 1881. By that, as printed, it is declared that petitions may be presented to any drain commissioner by any five or more freeholders “residing in [any one or more] towmships in which such drains [drain], or the lands to be drained thereby, may be [situated].” Except for this, it would require a forced construction to allow commissioners to be applied to from the outside, and even this language is at least ambiguous. But the words in brackets form no part of the law as approved by tlie Governor, and they have no proper place in the statute. In 1883 the Legislature had occasion to deal with the subjec.t in providing for the completion of unfinished county drains, and by Act No. 180 (Laws 1883, p.- 198) provided that when there should be no’ county drain commissioners the various township commissioners should act and perform the duty of -completing, relaying, and maintaining uncompleted county drains laid out “in their respective townships,” and.perform all the other duties of county drain commissioners “ in their respective townships.” This indicates plainly enough that the Legislature understood these officers to be’strictly local. Legislative construction of past legislation has no judicial force except for the future. But it is ■always entitled to be considered with some care, so far as it throws light on doubtful language, and for future cases it has authority.
The proceedings before us were had in 1881. We think the statute ought to be so construed as to harmonize it with constitutional principles and common usage;' and so construed, it will not uphold so much of the action of the drain commissioner of Blissfield as affects the’lands of plaintiff in Deerfield.
The proceedings to that extent must be quashed.
The other Justices concurred. | [
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Champlin, J.
I am of opinion .that a new trial should be awarded in this case, for the reasons following:
1. Ms to the moneys claimed by the city, other thorn, moneys belonging to the school fund. The declaration is upon an official bond given' by Wood, as city treasurer of the city of Lansing. The only breach alleged, under which a recovery can be had under the evidence, is the failure to pay over to his successor in office the money remaining in his hands as such treasurer.
Section 11 of title 4 of the charter of the city of Lansing, in addition to the powers especially conferred upon them thereby, confers upon the common council the power of management and control of the finances, rights and interests, buildings and all property, real and personal, belonging to the city. Local Acts 1875, p. 167. Section 29 makes it the duty of the common council to audit and settle with the city treasurer on the last Tuesday of April. Section 14 of title 5 (p. 179) makes it the duty of the treasurer to exhibit to the common council, at the last regular meeting in April, his account, and the state of the treasury, which account shall be referred to a committee for examination; and, if found correct, it shall be filed and published.
This account was exhibited by defendant Wood, and was referred to a committee, who reported to the council that they found it correct. The same day Wood turned over to his successor in office certain certificates of deposit, which his successor received as a payment of the city funds to him. It is claimed that he had no authority to receive such certificates as payments, and that he is liable nevertheless to the city as for a breach of his bond. The defense offered testimony tending to show that the act of Wood in delivering to his successor, and the act of his successor in receiving such certificates as money, was ratified by the common council. This testimony was rejected by the court.
I think it was competent to show ratification by the common council, in view of the extensive powers the charter clothes them with over the finances and property of the city. In my opinion it was error to exclude the testimony offered tending to prove ratification.
2. As to the school moneys. The charter provides that the treasurer of the city shall collect the money, and keep all school funds belonging to the city separate from all other funds, and he shall pay over to the treasurer of the school board all moneys on the order of said board. Sec. I, tit. 15. The law also provides that the school board shall hold and control all moneys, etc., belonging to the school district. The law does not specify by whom the order on the-treasurer shall be signed, but it provides that the board shall elect a ’ president, clerk, and treasurer. They shall keep a record of their proceedings, which shall be signed by the president and clerk. Doubtless money drawn from the city treasurer to be paid to the treasurer of the' board would require a vote of the board; and a written order, in pursuance thereof, signed by its president, would be sufficient.
Now the plaintiff claims that before the expiration of the term of office for which Wood was elected, he had in his hands belonging to the school fund $12,000 that he has never paid over to the treasurer of the school board on th.e order of that board, nor has he paid it to his successor in office. Defendants claim that prior to the expiration of his term lie-paid to the treasurer of the board, at his request, $12,000, in certificates of deposit on the banking house of E. Angelí, and took the treasurer’s receipt, which he turned over to, and which was accepted by, the committee of the council, who-settled with him on that basis.
It is clear to my mind that the charter makes the city, by its treasurer, simply a custodian of the school fund for the benefit of the board of education. The law directs this-fund to be kept separate from the other funds, and does not make it subject to be drawn by warrant by the city authorities. It is not subject to their control in any respect. The-treasurer is chargeable with it, and is liable on his bond if he fails to pay it over on the order of the board, or to his successor. The vital question here is whether he has paid it over to the treasurer of the board so as to exonerate him from liability on his bond to the city. I agree with my brother Campbell that a payment to the treasurer of the school board on his request, without an order of the school board, does not exonerate him from liability. But I think a subsequent ratification by the board of the transfer is equally good as an order originally given.
I reserve my opinion upon the other questions involved. Upon those I have mentioned I think the circuit judge erred in not submitting them to the jury, and I therefore concur with the .Chief Justice in the result he has reached. | [
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Champlif, J.
This is an action brought by the plaintiff to recover from the defendant the amount claimed to be due upon a policy of insurance.
The policy in question was issued at the company’s agency in Chicago, and is there countersigned as of date of January 12, 1883. The risk was to commence on that day at noon and extend to January 12, 1884, at noon. The policy was issued upon a written application signed by the assured, which was made a condition of the insurance, a part of the contract, and a warranty on the part of the assured. The property insured consisted of a store building, valued at $1200, and insured for $800, and a stock of goods contained in the store building, valued at $5000, and insured for $1500, located at Bancroft, Shiawassee county, Michigan. The application for insurance was made to F. M. Douglas, who was an agent of defendant residing at Bancroft, and duly authorized to solicit and forward applications for insurance, deliver policies and renewals to applicants, and collect and forward premiums on same, subject to a book of instructions furnished him and made a part of his authority and also to such rules arid instructions as he might receive from time to time from the Chicago office. The book of instruction and the rules and instructions were not given in evidence.
The company employs two kinds of agents, — one called a surveyor, to which class Douglas belonged. These agents were not intrusted with blank policies, and had no authority to fill out policies or make indorsements thereon. The other kind are styled recording agents, who are intrusted with the custody of policies, and have authority to fill out and deliver them, as well as to make indorsements thereon.
The application signed by plaintiff was dated January 11. In it nothing is said about the effect upon the policy to be issued thereunder in case other insurance is effected upon the property insured without the consent of the company. The only reference to other insurance are the following questions: “ What other insurance on property; in what company, and rate ? ” To which there is no answer. “ What rate has been paid?” Answer. “Two.” “Has risk been declined by any company?” A. “No.” Mr. Douglas was postmaster at Bancroft, and taking this application from Mr. Kitchen, forwarding it to the company, delivering the policy, and collecting the premium in this single ease, is all the insurance business he ever did.
The policy contains the following clause :
“If an application, survey, plan, or description of the property herein insured is referred to in this policy, such application, survey, plan, or description shall be considered a part of this policy, and a warranty by the assured ; and if the assured, in written or verbal application, malees any erroneous representation, or omits to malee Tmoion any fact pertaining to the risk; or if there shall be a/ny other insurance, whether valid or otherwise, on the property insured, or any part thereof, at the time this policy is issued, or at a/ny time during its continuance, without the consent of this company written hereon,— * * * this policy shall be void.”
When Mr. Kitchen made the application to Mr. Douglas for the insurance, he informed him that he should take out other insurance upon his stock with Mr. Simonson, another insurance agent at Bancroft, who was then absent, as soon as he returned home. Mr. Douglas says he told Mr. Kitchen it would not be necessary to mention it in the application, but when he got his policy from Mr. Simonson he would have to get permission from the Hartford. After he received the Hartford policy, and within two or three days, he took in the policy of the Sun Insurance Company, represented by Mr. Simonson, and Mr. Kitchen testifies that he at once informed Mr. Douglas, and requested him to notify his company of such.additional insurance.
The store and contents burned September 3, 1883, and were totally lost. October 8,1883, proofs of loss were made, and forwarded to the company’s agency at Chicago on October 16, and soon after he received the following reply:
“Chicago, October 19, 1883.
Elijah D. Kitchen, Esq., Bancroft, Michigan — Dear Sir: We are in receipt of yours of the sixteenth inst., inclosing proofs of loss under policy No. 38,034, of tile Hartford Fire insurance Company, of Hartford, Connecticut, issued at its general agency at Chicago, Illinois, insuring eight hundred dollars on building, and fifteen hundred dollars on stock of merchandise therein, property belonging to you, and located at Bancroft, Michigan. Upon examination of such proofs of loss, we learn that there was twenty-five hundred dollars other insurance upon the stock insured in said Hartford policy, which, by its terms, is void by reason of such other insurance, without notice to this company, and its consent written thereon. We refer you to the conditions of your said Hartford policy, and hereby notify you that this company denies any and all liability under said policy number 38,034, by reason of the other insurance as aforesaid, without n'otice and the consent of this company written thereon. Accompanying said proofs are duplicate bills of purchase which we hold subject to your order, in case you desire to use them elsewhere.
Yours very truly, W. H. Taylor, 2d Assistant G. A.”
The plaintiff contends that his case comes within and is ruled by Westchester Fire Ins. Co. v. Earle 33 Mich. 143. On the other hand, the defendant claims that the case is ruled by the principles laid down in New York Cent. Ins. Co v. Watson 23 Mich. 486. Both of those cases turned upon the effect to be given to the clause iti the policy which rendered it void in case any other insurance had been or should- be made upon the property, and not consented to in writing by the company; and also whether, under the circumstances of each case, there had been a waiver of the condition or anestoppel by acts in pais by the company.
In the Watson case additional insurance had been taken out, and the company had never consented in writing. The-trial judge left it to the jury to determine whether or not there had been any waiver of this condition or of the forfeiture under it. This Court held that there was nothing te authorize this question to be submitted to the jury; that under the decisions of Western Ins. Co. v. Riker 10 Mich. 279, and Security Ins. Co. v. Fay 22 Mich. 467, the policy became absolutely void at once upon the obtaining the last insurance without consent; that nothing could revive them short of a new contract on valid consideration, or such conduct as, by misleading the insured to their prejudice, would, operate as an estoppel. And, speaking of the case before it, the Chief Justice who delivered the opinion said: “ There is-no item of testimony tending, in the remotest degree, to show that any such contract was made, or that the insured did anything by the encouragement of the plaintiff in error, or their lawful agents, to their own prejudice, or anything which they would not have done under other circumstances. There is no evidence that the insurers knew anything about it. But mere knowledge of it, without some other act knowingly done to the prejudice of the insured, would not amount to anything more than’knowledge that the latter had seen fit to terminate the policies.”
This case was followed by Allemania Fire Ins. Co. v. Hurd 37 Mich. 11, where a similar clause was under consideration, and there it was not claimed that the company ever consented to the additional insurance, or had any notice thereof, except as appeared from a letter, written by the agents of the company to the insured in reply to one received by them, as follows: “ Gentlemen : Your favor of the 30th inst. at hand, and noted. "We will, of course, allow other concurrent insurance with the Allemania policy, and will also place you more insurance at same rate that we charged you before, and -do it in ‘A 1’ company or companies. Our Mr. Bussey is at .present in the western part of the State on special work. Trusting to hear from you at your earliest convenience, we remain,”' etc.
It was held that this letter did not amount to a consent to •any specific additional insurance, although it expressed a willingness to permit additional insurance, and offered to place it upon the same property at the rates before charged. Mr. Justice Marston said: “ The correspondence between the parties would not take the place of the consent required by the terms of the policy, and the policy of insurance issued by the plaintiff in error became absolutely void at once, upon the obtaining of the additional insurance without consent.”
The policy in the case of Westchester Fire Ins. Co. v. Earle 33 Mich. 143, contained a like clause, and one question prominently discussed in that case was whether there could be a waiver, by parol, or by acts and conduct, of the written condition ; and it was held that there could be. The charge of the court under which a recovery was had, and which was sustained in this Court, was as follows : “ That in order to escape the condition the insured must show that the agent j had done some act, or made some representation or remained I silent when he ought to have'spoken, and thereby misled the insured, and induced them to rely on the policy, to their in-1 jury, and, by causing them to believe the policy remained in \ force, prevented ¡them seeking other insurance, and that such conduct would preclude the company from setting up the condition, and that notice to the agent was notice to the company.” The testimony in the case showed that the first application for further insurance was to the agent, who said he would try to get it placed in some other company, and after waiting a time without his doing so they placed the risk elsewhere. In a conversation the agent said it would make no difference to the company, but did not say in so many words ■that it need not be consented to in writing, though that inference was drawn from all that took place. Immediately after .the new insurance was obtained they informed the agent of ..the amount, by a letter left in his office, and shortly after met the agent, who referred to the new insurance, and asked why it had not been placed with him. No objection was made, and no suggestion offered, that any breach of condition had been created or would be relied on. Upon this testimony this Court held that the jury had the right to believe, and that the insured had reason to rely on, the validity of their insurance, and that nothing had been done to invalidate it; and Mr. Justice Campbell said: “If Atwater,” the agent, “himself had been the insurer, it would-be difficult to find a plainer case of estoppel. It would have been a direct fraud to repudiate the obligation after such conduct as could not have failed to induce the insured to rest satisfied with their policies.”
It is now proper to return to the record in this case. The judge certifies that the bill of exceptions contains, substantially, the testimony given on the trial. With reference to' obtaining additional insurance the plaintiff testified that when he applied to Mr. Douglas, the following conversation occurred : “I told him that I wanted to take fifteen hundred dollars in his company on the stock, and eight hundred dollars on the building, and that I was going to take $2500 in the other company with Mr. Simonson as soon as he returned home. Mr. Douglas said that was all right. When he wrote the application out, I says to him, ‘Now, notify your company that I am going to put this additional insurance on when you send in this application.’ He says to me, ‘It is unnecessary ; ours is the first policy, and we don’t care about that.’ Then I told him to send it in any way, and tell them I was going to put additional insurance on. He says, ‘ It is only a supposition you are going to put additional insurance on, and we cannot notify the company on a supposition.’ ” He further testified as follows : “ Mr. Simonson came back and gave me the application, and when this second policy came back that I got from Mr. Simonson, I was going to either my dinner or my supper, — I will not be sure which, — and had this policy with me. Mr. Simonson brought it in, and I took it. I called for my mail when Mr. Douglas was there. I says to him, ‘ if you have not informed your company that I have put this additional insurance on when you sent in the application, do it now, for here is the policy.’ I had the policy in my hand, at the time, that I got from Mr. Simonson, the same day I got it. I never had any other talk with Mr. Douglas until after the fire. He made no answer.”
Mr. Douglas’ attention was called to this testimony, and he gave his version of the matter as follows : “ That Mr. Kitchen said he expected to take some additional insurance with Mr. Simonson, but did not tell him the company or the amount; that he replied : ‘ When you get your insurance, you can get permission,’ — or, we will have to get permission from the company (the Hartford company);’ that Mr. Kitchen said nothing about that additional insurance that he recollected of ; that he had no recollection of any talk of the kind testified to by Mr. Kitchen as having occurred in the post office, and knew of no such talk; that he was postmaster then, and had no recollection of handing Kitchen a letter and talking with him about having received another insurance policy. He stated on cross-examination that he had a conversation with Mr. -Simonson soon after the Sun policy was issued, in which he told Mr. Simonson that Mr. Kitchen said he expected to get out further insurance, or take out a policy with h;m ; and he admitted that in a conversation with Mr. Simon-son and Mr. Mosely he stated to Mr. Kitchen at the time that it was not necessary to mention the fact that he was going to obtain additional insurance in the application.”
No consent was indorsed on the policy. The foregoing is all the testimony that bears on the question of waiver, or out of which an estoppel is raised to prevent defendant from insisting upon the breach of this condition of the policy. Upon this testimony there can be no question but that the plaintiff relied upon the statements of Douglas, as authorizing him to obtain additional insurance, and upon having done all that was required of him when he informed Douglas of the name of the company, and the fact that he had perfected such new insurance; and that he relied upon his insurance as effectual for his protection to the amount insured. If Douglas had been the insurer, his conduct after what transpired between him and plaintiff would have estopped him from relying on the breach of the condition. Nothing can be plainer than this. The controversy, therefore, as in the Fa/rle case, is reduced to the inquiry, whether, with the written condition of the policy in view, Mr. Douglas had authority, or was Kitchen justified in assuming he had authority, to bind the company by such conduct as would have bound himself.
In the case referred to it was said that the powers of the agent did not appear to be restricted in any way. In this ■case the authority of the agent was restricted in the manner hereinbefore stated; and the question is whether the company is bound by the acts or conduct of an agent who has power to solicit insurance, make examination and survey of premises, take applications therefor and forward them to the home company or to its branch agency, or other agency where policies are issued, to deliver policies, and collect premiums. There is no evidence that any restrictions upon his ■•authority as agent was brought to the knowledge of the ■plaintiff, or others dealing with him. He did not profess to ¡be merely a solicitor of insurance. He professed to act as ■agent for defendant, signed his name to the approval of the -application as agent, assumed to direct whether' mention •should be made of the proposed additional insurance, and gave no information to the applicant of his restricted powers. Under these circumstances, if he had no authority to waive ;the conditions of the policy, which he did by telling plaintiff to first take his additional insurance, and then get permission (for, as was held in New York Cent. Ins. Co. v. Watson, the policy became void the moment the new insurance was ■effected), who is to suffer the loss occasioned by such want of authority, the insured who relied upon the representations .and conduct of the agent, or the company whose agent he was ?
The point was discussed in Security Ins. Co. v. Fay 22 Mich. 467, by Mr. Justice Campbell. In that case the insured ■relied much upon the action of the local agent after the new insurance was placed, who, as representing the company at ■that place, and being the person through whom the insured •dealt with them, might be authorized to bind them, except :in matters where, by the policy itself or by other notice, his ■ authority was made known to have been limited. Mr. Justice Campbell says: “ Assuming then, as we must, that, upon the case as it appeared on the trial, there was no valid ■consent until Betts may have so acted as to confer it, the question next arises whether there can be a waiver of the •condition requiring written consent, and if so, whether there was any evidence which would authorize the ease to go to •the jury on that point. We have held heretofore that a party dealing with an agent, through whom he applies for •and obtains a policy, has a right to presume that such matenial facts as are made known to him are known to, his principals. We have also held that when, with a knowledge of -such facts, the insurers accept premiums and keep them and issue policies, they cannot insist upon conditions which it would be dishonest to enforce after such action.” Such is this case. Kitchen had a right to presume, when he applied for a policy from Douglas, that the fact made known to him, with reference to his obtaining additional insurance, was known to his principals, and the instructions the agent then gave with reference thereto were the instructions of his principals, and that he was authorized, by the assent then given, to obtain such new insurance without avoiding his policy. The conduct of the agent at that time, and also when afterwards he was informed of the obtaining of the policy in the Sun Company, and the action had in reliance upon it, would render it a fraud for the defendant to recede from what the plaintiff was induced to expect. The defendant must therefore be held bound by the representations and acts of its agent Douglas, and must be deemed estopped from now insisting upon the enforcement of this clause-of its policy.
The other questions set up in the notice of defense to. the action, .relative to the overvaluation, were questions of fact which have been found by the jury in plaintiff’s favor. There was no error in the rulings of the court in the admission or rejection of testimony. Several errors are assigned upon the language of the charge as given, but as it was in substantial accord with the views herein expressed, we perceive no error; and the
Judgment is affirmed.
The other Justices concurred. | [
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Champlin, J.
This is an action on the case, brought by the plaintiff as owner and occupant of certain parcels of land bordering on the Thunder Bay river, to recover damages, which he alleges he has sustained by means of the booms of the defendant, and its negligent and improper management of the logs committed to its charge for booming purposes.
The plaintiff in error is a corporation duly organized under the general laws of the State of Michigan, and has been doing business therein for several years last past. Said business consists in the driving, booming, sorting aud delivery of logs in the waters of Thunder Bay river. The plaintiff, after showing title in himself to lots 4 and 5, in section 31, in township 32 north, of range 7 east, offered in evidence a quitclaim deed from one Gideon Ellsworth and wife to plaintiff, dated April 10, 1877, of a portion of lot 1, of section 32, in township 32 north, of range 7 east, which deed was admitted in evidence, against objection of defendant’s counsel; after which plaintiff showed that since receiving said deed he had been in possession of the premises therein described, and had cultivated and used them. No further evidence was introduced to show title in plaintiff to said lot 1.
The court permitted the following question to be asked, and answered against the objection of defendant’s counsel: “ In reference to taking away any of your lands in front of it, state what effect it had upon your lands in taking your lands away?” And the court charged the jury that among the elements which they would have a right to consider in making up their verdict would be some injury to the shore of the land itself. The admission of this testimony and the instruction to the jury are claimed to be improper, because the injury sought to be recovered for was a permanent one, viz., the absolute destruction, by washing away, of a rod or more of the land itself, as testified to by the plaintiff. This was an injury to the freehold, and no one but the owner of the inheritance could recover for its destruction. George v. Fisk 32 N. H. 32; Van Deusen v. Young 29 N. Y. 9; Davis v. Nash 32 Me. 411; Curtiss v. Hoyt 19 Conn. 159; Hosking v. Phillips 3 Exch. 168; Moyer v. Scott 30 Mich. 345.
The plaintiff had not shown any title to lot 1, described in the declaration. A quitclaim deed from a party, not shown to have been in possession at the time it was executed, is no evidence of title; much less when the party claiming under the deed was already in possession of the land at the time the deed was given. The evidence in the case, which is all returned, did not show how much of the shore line was washed away and destroyed by the abrasion of the logs under defendant’s charge in front of each particular parcel of land. The verdict of the jury was general, and covered all the damages upon which proof had been received. It must therefore have included damages for the injury to the land upon lot 1 by the destruction of its shore. For this the plaintiff was not entitled to recover without proving title.
The evidence showed that below the plaintiff’s land there was a dam across the river, called the Trowbridge dam, which was under the control of the defendants, and that the defendants had, above this dam, jammed the logs in its charge so that when the freshet occurred in June, 1883, the water in the river was raised and set back, and flooded plaintiff’s land, injuring and destroying his crops, and casting saw-logs upon his land. And it also appeared in evidence that above the plaintiff’s land there was another dam across the river, not under the control of defendant [and known as the “ Speechley Dam”], and that during this freshet and stage of high water, some person unknown opened the Speechley dam, and thereby let out large quantities of water which greatly augmented the flood below, and tended to raise the water on plaintiff’s land much higher than would have occurred had not the Speechley dam been opened.
In view of these facts the defendant requested the court to charge the jury as follows: (3) “If the jury believe, from the evidence, that a portion of the damages to plaintiff’s premises was occasioned by extraordinary freshet or rain-fall, or by a large quantity of water being freed from the Speechley dam, without the fault or consent of defendant, no verdict can be given against this defendant for such damages.” This request was refused. The force of this request, and the exception to the charge as given, are rendered nugatory by the special finding of the jury to the third special question submitted by the defendant, namely: “Would there have been any damage to plaintiff’s premises from extraordinary rain-falls, or waters escaping from Speechley’s dam, had the logs not been jammed in the river above Trowbridge’s dam ?” To which the jury answered, “ No.”
It is unnecessary to notice any of the requests to charge, and the charge itself, based upon facts supposed to exist contrary to that found by the answer to the above question. The fourteenth assignment of error is based upon the instruction of the court to the jury, in which he uses this language: “ The Boom Company has a right, in carrying on its business, to move this property which is intrusted to its care, down the stream with such reasonable care and diligence as the law requires of a person or corporation engaged in that business) ” and again : “ Now, the Boom Company itself, in carrying on these operations, has a right to move these logs down the stream, provided it does so with all reasonable care, — such a degree of care as the law requires, as I have stated, of a person or corporation engaged in carrying on that business. But ■on the other hand, it is liable for injuries which are caused to persons owning lands which lie along that stream, and •contiguous to the stream, by reason of its negligent carrying on of that business, or for its direct or willful acts whereby injury is-caused.”
It is claimed that the rule of law laid down by the court as to the care required of the defendant in conducting its business was left in uncertainty, and unexplained by the court; that it really left it to the jury to determine what was the degree of care the law required. The charge seems to be open to this criticism, and attention is called to it here in order that upon a retrial of the case the error may be avoided. For the reasons above stated there must be a
Reversal of the judgment, and a new trial granted.
Campbell and Sherwood, JJ. concurred. Cooley, C. J. •did not sit. | [
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Sherwood, J.
The original bill in this case was filed on the 12th day of May, 1877, and the answer thereto on the 27th of August, and the amended answer on the 28th of August, 1881. Cross-bill was filed on the 1st of October, 1881, and the answers thereto on the 21st of October following.
On the 9th day of April, 1866, Mrs. Lucy W. S. Morgan was the owner of the south part of the northeast quarter of section 2, in township 3 south, of range 1 west, in the county of Jackson. On that day she sold and conveyed the same to George H. Lathrop, one of the defendants, for the sum of $16,000, for the payment of which, and the interest thereon, he gave her a bond in the penal sum of $32,000, executed by himself and Moses A. McNaughton, and to secure the payment of the latter Lathrop executed and delivered to Mrs. Morgan a mortgage upon the eighty acres of land described. The condition of the bond is that if the
“obligors, GeorgeH. Lathrop and Moses A. McNaughton, or their heirs, executors, or administrators, shall and do well and truly pay, or cause to be paid, unto the above-named obligee, or to her certain attorney, executors, administrators, or assigns, the sum of sixteen thousand dollars within ten years, •in sums not less than one thousaud dollars a¡t a time, and only at the time of paying interest or after thirty days’ notice, and shall semi-annually, and on or before the ninth ■day of April and October in each and every year pay all the interest that shall have accrued on the whole sum, and shall also, in case any sum of principal or interest xshall not be paid when due, pay interest thereon at the rate of ten per cent, per annum during all the time the same may remain ■overdue and unpaid, without fraud or delay, then the preceding obligation to be void ; otherwise to remain in .full force and virtue.”
The bill in this case is filed to foreclose said mortgage, and ■complainant claims there was due, at the time the bill was filed (August 27, 1878), the sum of $24,490.39, and gives the following statement of payments made upon the mortgage, and the application made thereof, viz.: “ Fifty dollars paid at the date of said bond and mortgage : five hundred and sixty dollars, October 12, 1866 ; three hundred and fifty dollars, April 18, 1867; four hundred and twenty dollars, July 13, 1867; three hundred and fifty dollars, October 10, 1867; and eleven hundred and twenty dollars, July 11, 1868; which several sums, exclusive of the fifty dollars paid at the date of the mortgage, were paid, accepted, and indorsed as the payment of interest to October 9, 1868, as if paid when due, and no interest not paid is to be charged or paid on any interest overdue prior to October 9, 1868; and that the further sums paid, — forty-seven dollars and seventy-five cents, ■September 13, 1869; thirty-four dollars and seventy-seven ■cents, January 31, 1870; one thousand dollars, April 10, 1871; eighty-seven dollars and thirty-six cents, December 14, 1871; seven dollars and forty-seven cents, December 13, 1872; five hundred dollars, December 16, 1872; and two -thousand dollars, August 4, 1874, all of said sums paid since 1868 being paid, accepted and receipted, — to apply, first, to make up the difference between paying all sums as they be■come or might become 'due, and paying compound semiannual ten per cent, interest on such sums as had remained, •or might remain, overdue and unpaid while overdue, until paid: and that no further, other or different sum has been paid, collected, or received upon or on account of said bond ■or mortgage.”
The bill of complaint avers that Lathrop and wife, on the •14th day of May, 1866, conveyed the west thirty acres of the-mortgaged premises to the Mayor, recorder and aldermen •of the city of Jackson, and their successors in oflicé, to be used for the purpose of a public park and not otherwise. And complainant further avers that soon after such conveyance of -such thirty acres the corporate authorities of said city'of Jackson, at the request of the common council of the said city and on the making of said bond, and upon the representations of the members of the common council of the said city of Jackson, making such request and representation in behalf of said common council, that said thirty acres would without any unnecessary delay be immediately improved, and used and kept as a public city park, and the right-hand or northeasterly bank of Grand river, which runs near the westerly part of said thirty acres, would very soon be dyked by said city, or so embanked or raised as to prevent any of the water of said river from being made to overflow any part of said mortgaged premises by reason of the dam in said river on the same section below said mortgaged premises, and that such park land would be thoroughly drained by means of a ditch, or ditches or drains, constructed by said city of Jackson, extending across such mortgaged premises from north to south, and emptying into said river below ■such dam, and that the remainder of the mortgaged premises would be greatly benefited, and the value thereof greatly increased, by such improvements, and the permanent use of such thirty-acres as a public city park, she was induced to and did, on the 15th day of June, 1866, release to the city, and discharge from the operation of the mortgage, the said park lot for a public park, but for no other purpose, and that the important part of the inducement for the release was the •speedy and permanent improvement of the park, as above promised, which would increase the value of the remainder of the mortgaged premises, and that the city never made -any of the improvements promised.
The bill further avers that after the city received such conveyance of the thirty acres from Lathrop and release-from complainant, said Lathrop surveyed, laid out, and platted the remainder of the eighty acres covered by the-mortgage, and recorded the plat as Morgan’s addition to the-city of Jackson; and Lathrop and wife conveyed an equal undivided half of the mortgaged premises to said defendant McNaughton.
Complainant further states that upon certain flattering-representations of Lathrop as to the increase in value of the-mortgaged property from time to time, and its probable-future increase in value, she has been induced to release several parcels of land mentioned in said plat from the operation of said mortgage, and in so doing she released by mistake lots 8, 10, 11, and 12, in block number 13, and claims they are still subject to her equitable lien under said mortgage.
She further avers “ that said Lathrop and McNaughton-have sold and conveyed many of said lots to different persons, who have erected buildings thereon, which are subject to said mortgage, and in some cases the purchasers have sold to others; and said Lathrop has given several mortgages upon the lands, which are still outstanding and unpaid. That., complainant, at time of making said releases, had no knowledge or information that Lathrop had in any manner incumbered said lands, or conveyed any portion thereof, except said mortgage to complainant, and his deed of park and deed to Moses McNaughton, and except lots released by her; and at time of -such releases by her she had no knowledge that, said Lathrop or McNaughton had conveyed or incumbered! said mortgaged premises except the. parcels released by herv and did not know that any person, except said Lathrop, McNaughton and complainant, had any interest in said premises except as above stated. . That on March 19, 1869, said Lathrop and McNaughton contracted to sell to Michigan Air Line Railroad a strip of land fifty feet .wide across said mortgaged premises, and adjoining the route of Ft. Wayne, Jackson & Saginaw Railroad, for the purpose of using the same: for a track for the railroad, and not otherwise; and in consideration thereof said railroad company agreed to build a stone or brick sewer, not less than three feet in diameter, commencing on the southerly side of Liberty street, at easterly terminus of a sewer then built by Michigan Central Railroad Company, and extending thence easterly to said Michigan Air Line Railroad, thence to south line of said mortgaged premises, to be as deep as bottom of Michigan Central Railroad sewer, so that south end shall not be more than six inches higher than starting point; and said contract also provided that said Michigan Air Line Railroad Company should construct two or more sewers or open drains to carry water into’ said sewer to fully drain said lands, and that a free passage for the water on said lands should be immediately prepared by Michigan Air Line Railroad Company. And it was fur. ther provided in said contract that said Michigan Air. Line Railroad Company should have fifty feet more of said land, at $2000 per acre, by giving notice in two years. That on December 9, 1869, said Lathrop and McNaughton sold and conveyed fifty feet more of said mortgaged premises, extending on a curve across said premises, to the Michigan Air Line Railroad Company, for which the railroad company were to pay the sum of $4000 on or before August 1, 1874, with interest at ten per cent, per' annum. That both said contracts of sale by said Lathrop and McNaughton to said Michigan Air Line Railroad were made without the permission or knowledge of complainant, and complainant never released said lands from her mortgage. That the Michigan Central Railroad Company has leased the Michigan Air Line Railroad, now controls the same, and has used and occupied said land conveyed to Michigan Air Line Railroad. That said railroad companies have not paid for said land as per said agreement, and alleges that said land and all improvements thereon are subject to said mortgage. That the Ft. Wayne, Jackson & Saginaw Railroad occupy and use the said first-mentioned fifty feet of land sold to Michigan Air Line Railroad Company. That complainant first knew of said contracts with said Michigan Air Line Company about February, 1876, and now owns said contracts and is willing to apply the amount of the same upon said mortgage,when said contracts shall be paid. That after said Lathrop and wife had conveyed said thirty acres to the city of Jackson for a public park, and after complainant had released same for that purpose, said Lathrop and wife quitclaimed the same to the city of Jackson ; and on or about January 21st, 1871, said city of Jackson, by warranty deed, conveyed the same to James F. Joy, trustee for the benefit of Michigan Central Railroad Company, * * * and said Joy had notice that said lands were conveyed to said city for tlie purpose of a public park, and not otherwise, and released by complainant for that purpose, and that all the conveyances of said park gave said James F. Joy notice that it was conveyed for a park only. That the consideration for the conveyance by said city to James F. Joy, as trustee, for benefit of said, Michigan Central Railroad, was the agreement by said company that it would erect its principal repair-shops at ornear the junction of said* Michigan Air Line Railroad and said Michigan Central Railroad, near said city of Jackson, and near said thirty acres of land conveyed to said city for a park; but said Michigan Central Railroad erected their repáir-shops at Detroit, and complainant insists that said thirty acres is still legally and equitably subject to .the lien of said mortgage. That about December, 1875, said Lathrop was declared a bankrupt by decree of the district court of the United States for the Eastern District of Michigan, and such proceedings were had in said court that complainant was authorized to foreclose Jier said mortgage in accordance with the laws of the State of Michigan.”
The Michigan Air Line Railroad Company, the Michigan Central Railroad Company, and James F. Joy, trustee, appeared and filed their joint and several answer to the complainant’s bill. Three of the other parties appeared, but made no answer, and the bill was taken as confessed against all the parties who failed to appear, or, appearing, failed to answer.
The defendants answering admit the making of the bond and mortgage, and that they were given for the purchase money of the property mortgaged. They do not admit the statements of the bill in regard to interest; know nothing of or how the payments were made or applied ; and aver that the complainant, previous to receiving the bond and mortgage, by written contract, agreed to sell the mortgaged property to Lathrop for $16,000, one-quarter of which he was to pay or secure to the satisfaction of A. B. Gibson, of Jackson, within thirty days, when a deed was to be made, and a bond and mortgage taken for the balance, Gibson being made trustee for complainant to receive the securities and hold the same for her ; that $6000 good interest-bearing bonds were deposited with Gibson, and were held as collateral security for complainant at the time the bond and mortgage were actually made in May following • that the bond and mortgage being executed for the full purchase price of the property, by agreement of the parties the collateral security mentioned was to stand as security for the said bond and mortgage. They admit the conveyance of the thirty acres to the city of Jackson for a park; and aver that a title to the land in fee-simple was conveyed to the city by the deed, and deny that it in any way qualified or limited the grant to the mayor, recorder and aldermen ; that it was understood by the complainant when Lathrop purchased the land that the thirty acres was really purchased for the city, and with the understanding that Lathrop and McNaughton would convey it to the city, and that the city would pay the complainant the purchase price therefor, and that she was to receive the bonds of the city from Lathrop and McNaughton upon the purchase price of the” land ; that when complainant released the mortgage in June, 1866, on the park lot, she received as a consideration therefor the said interest-bearing bonds of the city of Jackson to the amount of $6000, which were for her convenience and by her direction deposited with said Gibson, making, with the other securities held by him for her, $12,000 collateral to the bond and mortgage, and bearing an equal or higher rate of interest; that Gibson was during his life-time entirely responsible and trustworthy; that he died in 1869, and Alonzo Bennett was his administrator, who received and held such securities for said complainant, and that said Bennett is also responsible and trustworthy; that the said Michigan Central Railroad Company is interested as purchaser of certain parcels of said land ; that it paid defendants Lathrop and McNaughton $4000 therefor, on the 5th day of January, 1875; that such purchase was made with the agreement of these grantors that the same should be released from the operation of the mortgage, but which has not been done ; that the land thus purchased was for the purpose of erecting thereon a pump-house and machinery to supply their roundhouse and machine-shops at Jackson with water, and the company has expended $5000 thereon, and has used the same for the purpose aforesaid continuously since; that said purchase and use have continued during the time Gibson and Bennett have held the securities; that defendant insists that complainant had sufficient notice of the interest of the said company; and that it was the duty of the complainant to apply in the interest of the defendant the securities deposited as aforesaid to the reduction of the mortgage debt; which would leave but about $3000 unpaid.
The defendant the Michigan Central Railroad Company further avers that on its purchase of the pump-lands the complainant voluntarily released parcels of the mortgaged premises, which defendant had the right to have held under the lien of said mortgage, and the value of which should have been applied to its satisfaction, before the interest of defendant could be affected, and that the same, together with the collateral securities above mentioned, «would have been sufficient to pay the entire mortgage lien.
The Michigan Central Railroad Company and defendant Joy further say that the deed of the park lot to the city vested a title in fee in the city ; that when the land was purchased by Lathrop it was understood between Mrs. Morgan and Lathrop and McNaughton that really the said thirty acres of land was being purchased for the city, and she then expected such conveyance would be made by Lathrop and McNaughton to the city, and that the purchase price would be paid by the city to her, or to others for her, and that all the parties had notice thereof. They admit the discharge of the thirty acres from the incumbrance, but deny such release was simply for the purpose of having the land used as a public park; but, on the contrary, they aver that she received at the time abo.ut $6000 of the city’s bonds as aforesaid, which was received by Lathrop and McNaughton as part of the price for the lot as consideration for making the release, and that it is immaterial to them what representations were made to complainant at the time she gave the release, but deny .that the consideration was such as is stated in the bill, and •aver that the release was absolute.
Defendants further aver that the city did make improvements on the lot after its purchase, and that it never dedicated it as a park, and it was never used as such. They admit ■that the city did, in January, 1871, convey in fee simple to •defendant Joy, as trustee, the land mentioned in the bill as ■conveyed to him, but deny he had any notice that the land had •been conveyed or released to the city solely for a park, or ■that the deed to the city contained any limitations to that ■effect, and deny such to be the fact; and they further admit ■that a part, but not the only,- consideration for the deed to .him was that the railroad company would remove to or erect ¡their central engine and repair-shops at Jackson ; that it did ■remove its shops there as agreed upon, and the mortgaged ■premises are greatly increased in value thereby, and that the ■company has'paid a good and valuable consideration for the lands conveyed to it, and that complainant had notice of the ■conveyance when it was made, and that she is estopped by such knowledge and acquiescence from now asserting the lien -she claims against such lands.
•Defendants further claim that if they are mistaken in the view that the release is good as to them, yet they are entitled ■to have the full amount of the aforesaid collaterals, with the value of the lands which were subsequently released, ¡applied to the payment of the mortgage, and which were worth $8500, and in that event nothing would remain for the Michigan Central Railroad Company to pay. They further ¡admit the platting of Morgan’s addition; do not know what lots were sold by Lathrop and McNaughton, except those to the railroad companies, or whether the complainant’s mortgage still remains a lien upon such lots; admit the other releases made by Mrs. Morgan, but do not know upon what consideration, nor what mistakes have been made in such releasing.
Defendants further aver that as to every conveyance to the defendants, or either of them, by Lathrop and McNaughton, or to the city of Jackson, the complainant had full knowledge thereof, and the purpose for which they were made, both at and before the time of making the same, and also knew that Lathrop and McNaughton had assigned and conveyed portions of the mortgaged premises, and that she-had a general knowledge of all the acts and doings of Lathrop and McNaughton and of said city in the premises, and it was agreed between herself and Lathrop and McNaughton that they were to turn over the securities they might receive upon the sales of said mortgaged lands to her, and that her husband, who is an attorney and had charge of her business, frequently visited Jackson and examined into the condition of the mortgaged premises and her securities, and consulted with Lathrop and McNaughton, and consulted the records with reference to incumbrances and what was being done, and had notice of all liens and transfers of the property.
Defendants further deny that any such contracts with the Michigan Air Line Railroad Company as are set up in the bill were ever made by said company with Lathrop and McNaughton ; that such contracts, if made, were null and void - that the parties pretending to make them on behalf of the company had no power so to do. And they further say that so much of the mortgaged premises as has been occupied by the Michigan Air Line Railroad Company and the Central Company has been by permission and under license of Lathrop and McNaughton, and deny any liability on the part of either of the companies to perform either of said contracts. They further say it would be impossible to make the drainage called for in the contract, because of insufficient fall to construct the ditches. They further say that if complainant is the owner of the contracts, she has no rights thereunder against the defendants, and that the non-performance of said contracts by defendants has not subjected the premises occupied by them to the lien of complainant’s mortgage; that at the time defendant Joy received the quitclaim deed as trustee, he had no notice that the land had been conveyed to the city of Jackson for a public park; and deny that under the conveyance the city could only use the land for a park. They further aver that the Central Company has performed the acts constituting the consideration for the deed of Joy mentioned by the complainant.
The defendants further say that the Air Line Kailroad Company neglected until 1881 to locate the right of way across said mortgaged lands, when it was constructed, or to-make and file the map thereof required by law, but that omission has been supplied, and the Central Company has been authorized to proceed, in the name of another company, to-condemn the land for the right of way ; that both said companies have attempted to negotiate with complainant, and with Mary McNaughton, for the same, but Mrs. Morgan claims that the matter of the right of way has been arranged by the pretended contracts set up in her bill, and she refuses-to release the same from the lien of her mortgage, except upon payment of the sum due her upon the contract, and neither she nor Mary McNaughton will accept reasonable compensation for their interest in the right of way; and defendants claim that the sum stated to be due upon the contract is more than twenty times the value of the land used and the damages suffered.
Defendants admit said Lathrop is a bankrupt, but do not know whether complainant has been authorized by the court to bring this suit. Neither do they know what amount has-been paid on the mortgagi, or what is secured and unpaid. They, however, deny that the complainant is entitled to compound semi-annual interest on any portion secured by the-mortgage, as claimed in the bill. They believe the computation stated is correct, according to the premises and rule- adopted by her, but that she cannot legally compound the interest; but they do not deem the computation material to the defendants, because the application of the collaterals, and the value of the land released, as before stated, after the conveyance of the thirty acres and of the lands for the pump-house would, in either case, or by any legal mode of computation, extinguish the mortgage claim.
On the 3d day of September 1S81, the Air Line and Michigan Central Companies, defendants, filed their cross-bill •against complainant and defendants Moses A. McNaughton and Mary R. McNaughton, in which substantially the same matters are set up as are contained in the amended answer, and further allege that the equity of redemption of said mortgaged premises is now owned by the said defendant Mary R. McNaughton, and that the mortgaged premises remaining undischarged are worth over $10,000 less than the amount •claimed to be owing upon the said bond and mortgage; and that the said defendant George ET. Lathrop has been duly discharged in bankruptcy for his debts, and no personal claim is made against him in complainants’ bill.
Complainants pray in their cross-bill that the contract of December 9, 1869, between the Michigan Air Line Company •and Lathrop and McNaughton, in regard to the right of way across the mortgaged premises mentioned in Mrs. Morgan’s bill, may be decreed fraudulent and void, and ordered to be delivered up and canceled.
To the cross-bill Mrs Morgan made and filed her separate answer, in which she states in substance what she stated in her bill relating to the contract of the Michigan Air Line Company with the defendants Lathrop and McNaughton; avers that the contract was known to, and approved by, the executive committee of said Air Line Company, and that said committee was authorized by the board of directors to obtain the right of way for the company,® and that the contract was understood and approved by the directors and stockholders ; that the railroad was constructed thereunder across the mortgaged land, and that no other license was ever given upon any other terms to the company for its construction, except those agreed upon in the contract, and that she is advised that the contract is legal. She denies that Lathrop and McNaughton, or either of them, after or before the date of the contract, ever gave the Air Line Company in any way power to locate its route, or construct its railroad, on or across the mortgaged premises, except under the conditions of the contract; or to take possession of the premises for such purpose ; and insists that the terms of the contract should be performed before said complainants, or either of them, can be entitled to a release or conveyance of the lands used by the railroad. That the defendant believes the said contract is a legal one, and that she has the right to and does rely in good faith upon it for the purchase and payment for the lands mentioned in it, and for that reason has refused to arbitrate, or in any manner vary the terms thereof, and claims that the complainants are entitled to no benefits from the cross-bill, and prays it may be dismissed.
Defendants Mary McNaughton and-her husband filed their joint and several answer to the cross-bill, and say that while they appeared in the original suit by solicitor, they, nor either -of them, ever read, or heard the original bill read, nor was the substance thereof stated to them, except that it was a bill to foreclose Mrs. Morgan’s mortgage, and their knowledge of its contents in filing their answer is derived from the cross-bill, and they leave the complainants to make their proofs of what is stated in the cross-bill; that they were informed the ■appearance and answer of the defendant, the Michigan Air Line Railroad, to the original bill, was unauthorized, and that it has no authority to join in the cross-bill. In relation to the -contracts for the right of way, they claim that they are valid, and Mrs. Morgan is entitled to pay thereon from complainants ; and pray that the cross-bill may be dismissed.
A motion was made to strike the cross-bill from the files, on the ground that the solicitor for the Air Line Railroad had no authority to file the same. The motion „was subsequently heard and denied. Proofs were taken in both cases, .and the cases were heard together, upon the pleadings and proofs, before Judge Newton, who made a decree dismissing the cross-bill, and entered a decree of foreclosure in the original case in favor of the complainant against the defendants, for the sum of $36,758.67, with interest thereon and costs of the suit; and held that defendant Moses A. McNaughton was-personally liable for the debt, and that in default of payment the real estate not theretofore finally released be sold in the usual manner, and that Moses A. McNaughton be held for the balance, and that complainant have execution against him therefor.
The circuit judge also further found and decreed that the indebtedness upon the mortgage was for purchase money of the mortgaged premises. That only $50 of the principal had been paid. That the time for payment was ten years, with-interest at seven per cent, payable semi-annually, except when payments were overdue of either principal or interest, they should draw interest at ten per cent, to be computed semiannually until paid; and that all interest was paid up to October 9, 1878. That all sums received since then were paid and receipted to apply, so far as might be necessary, to make up the difference between paying the sum or sums due,, whether of principal or interest, as they became due, and ten per cent, compound semi-annual interest that remained overdue and unpaid, and that all sums which had been paid on account of said bond and mortgage before bringing this suit had been so paid and received to so apply before any defendant corporations had acquired any legal interest in block 6 used for pump-house. That it is proved by the evidence in the case that it was understood by the city authorities, and by Lathrop and McNaughton, and all parties interested, that the-park land, and complainant’s release thereof to the city, were applied for, accepted and deeded, and only intended for the purpose of a public park, and for no other use or purpose. That it was not intended or understood by any of the parties that the collateral securities deposited with Gibson, or the Jackson city bonds, or any other securities for which they might be exchanged, were to apply as payment on the bond and mortgage, and none of them were ever in complainant’s-possession, or within her control, and that she never saw any ■ ¡-of same except the contracts for the right of way, and those ronly at the time they were assigned to her ; but it is proved that such collaterals were ■ to remain securities for the payment of the bond and mortgage, without changing their ownership, and were deposited by their owners only for their convenience in exchanging them and substituting others, and that they were not liable to be applied even to the payment of the interest overdue on complainants’ mortgage without the,assent ■of Lathrop and McNaughton; and it does not appear that ■complainant ever received anything from such securities, or that any of the proceeds were ever applied on the mortgage. That the two contracts for right of way are valid, and that .'they were made and intended as securities for the benefit of ■complainant, and were duly assigned to her, and are still collateral security for the payment of the mortgage; and that she is still willing to release the right of way, and cause the same to be conveyed to either company upon receiving pay according to the terms of the contract. That complainant ■had no knowledge or information that Lathrop and McNaughton had in any way conveyed or incumbered any of said mortgaged premises, except the parcels previously released by her; nor is it made to appear that she had any reason to suppose that any person, except herself and Lathrop ■and McNaughton and their wives, had or expected soon to .have, any claim upon any part of the premises not then or previously released from the mortgage lien by her.
The decree further designates the land released, and ■describes the parcels to be sold, and the class to which each parcel belongs, and directs the same to be sold in the inverse ■order of alienation, according to the order in which the parcels •are given in the classes. The second class contains the lands in which the Michigan Central Railroad Company claim an interest in the mortgaged premises; also the lands which the Michigan Air Line Railroad purchased by contract. But the ■decree further provides that if the defendants interested in these parcels shall pay the amounts mentioned in the contracts before the day of sale, then they are to be excluded from the ■sale decreed.
The Michigan Central Railroad Company, and the Michigan Air Line Railroad Company, and James R. Joy, trustee,, appeal" from the decree in the original suit, and the two railroad companies named from the decree made in the cross-suit.
The case is an important one, and is very complicated in its facts, and, as presented in the arguments of the able counsel upon both sides, presents a variety of legal questions for solution not easily disposed of. The case, as presented upon the record, contains an amount of detail seldom submitted for our consideration and review, and the decree rendered by the learned judge who heard the cause at the circuit shows a careful examination and thorough review of' all the questions necessarily involved in the case. The record is a large one, and a discussion of the testimony will not be attempted ; neither do I deem it necessary, in determining-the legal bearing of the several contracts and conveyances between the parties, nor in elucidating the views I entertain of their rights thereunder, so far as is necessary to-a proper, decision of the case. In gi ving interpretation to the various undertakings of the parties and changes made in the-dealings of those interested from time to time, we cannot put aside their intentions and the objects sought to be accomplished by each.
It clearly appears that the mortgaged land was purchased . by Lathrop for the purposes of speculation, and that the same was true of McNaughton’s purchase; while on the part of complainant, it is equally plain her sole object was to keep the purchase money of the property securely invested at the largest rate of interest which could be obtained, even though from reckless speculators, on the longest possible time, giving any assurance of safety, and she now seeks to enforce payment from the securities taken. The city of Jackson see/ns to have been made to participate in the transactions more in the interests of the railroad companies, and in the scheme of speculation by the purchasers, than in sub-serving any want, necessity or convenience of the municipality or of its inhabitants.
The object of the Air Line Railroad in its negotiations is. unmistakable. It was to secure the right of way, and all the land in connection therewith needful and convenient for its then necessities or probable future wants, which it could obtain without making immediate payment therefor. This it has accomplished up to the present time. The Central Kailroad Company, in taking its lease of the Air Line Koad, sought to secure the use and benefit of all the Air Line franchises and desirable rights under the contracts it had made, under the most favorable circumstances it could, and in assuming the liabilities of the Air Line Company it has sought to govern itself in its dealings with that company and its creditors according to the strict letter of the law, acknowledged no responsibility, and yielding to no liability not within the letter of its engagements, and insists upon everything appearing in its favor, whether so originally intended or not. Its object in this suit is to defeat the lien of complainant claimed under her mortgage to the land now occupied by the company.
The defendant Joy is the president of the Michigan Central Kailroad Company, ever true and vigilant in guarding, protecting and administering the great trusts committed to his charge. With all the learning of the profession he watches over the company’s legal rights, with an eye single to its pecuniary interests and every advantage attainable, when its property is placed in jeopardy. His position will not permit him to concede what the law does not require. And he expects nothing which the law does not allow or secure to the interest he represents.
With this statement of the claims of the respective parties, their motives, intentions and objects to be accomplished in their dealings, and the mode and manner of their doing the business out of which the complainant’s claim has arisen, and upon which the defendant’s ground of defense is placed, it remains to be ascertained what change, if any, should be made in the decree made by Judge Newton, to protect and secure the rights of these parties. In this review, however^ we cannot consider the rights of those defendants who have allowed the complainant’s bill to be taken as confessed, any further than it may become necessary in determining the rights of those who have appeared and made defense.
The first thing to be ascertained is what amount is due upon complainant’s bond and mortgage. The defendants' appealing admit that the sum claimed and stated in the bill was correct at the time the same was filed under the facts as she claims them, adopting her rule of computation. But they deny her right to compound the interest, or to compute interest upon interest, under the law as it stood at the time the bond and mortgage were made. The following is the provision contained in the bond for its payment:
“ The condition of this obligation is such that if the above-bounden obligors, George l£-Lathrop and Moses A. McNaughton, or their heirs, executors, or administrators, shall' and do well and truly pay, or cause to be paid, unto the. above-named obligee, or to her certain attorney, executors, administrators, or assigns, the sum of sixteen thousand dollars within ten years, in sums not less than one thousand dollars at a time, and only at the time of paying interest, or after thirty days’ notice, and shall semi-annually, and on or before the ninth day of April and October in each and every year, pay all the interest that shall have accrued on the whole sum, and shall also, in case any sum of principal or interest shall not be paid when due, pay interest thereon at the rate of ten per cent, per annum during all the time the same may remain overdue and unpaid, without fraud, or delay, then the preceding obligation to be void, otherwise to remain in full force and virtue.”
Under this clause of the bond compound interest could not legally be allowed, and the computation was erroneous. The principal did not become due until ten years after the date of the-bond, but the interest was payable at seven per cent, semi-annually, and if any sum, whether of principal or interest, remained unpaid after due, it then drew interest at ten per cent, until paid; neither semi-annual interest nor compound interest could bo computed on overdue payments) either of principal or interest.
By the conditions of the bond, payments of principal -could only be made before due in sums of $1000, and such payments were optional with the obligors. Payments of a less amount could only be made at the option of Mrs. Morgan, and would not be under the conditions named in the bond, she having received it without any special agreement in regard to its application by the parties to the instrument, -or if the application made was agreed upon and was illegal, the appropriation of payment would have to be such as the law requires, which will be as the justice and equity of the case demands. Under this rule it is not difficult in this case -to determine what application should be made of all payments of principal which have been made, or of any moneys received on account of the mortgage indebtedness. ■All such sums should be applied when paid or received, first, to the extinguishment of the interest then due, and if any balance remains, it should be appropriated at once to the payment of the principal. This has not been done.
We next consider what other moneys should be applied in payment of the bond and mortgage, if any, than such as appear indorsed on the same. There can be no doubt, I apprehend, but that the city of Jackson could make the purchase it did of the park lands, and legally issue its bonds in payment therefor. The city paid for this land $6000 dollars, and gave six bonds of $1000 each, drawing interest at seven ■per cent, payable semi-annually. These bonds were payable yearly, a bond a year until fully paid, and were all paid by the •city, principal and interest, according to their terms. They ■were issued to Lathrop, by whom they were assigned to Mrs. Morgan as collateral security to her mortgage, she having released the same upon the park lands. The first parcel of the mortgaged premises conveyed by Lathrop, or by Lathrop and McNaughton, was the park lands, and the several conveyances of this parcel seem to have preceded .all other ■conveyances or contracts, except for right-of-way lands, and the conveyance by Lathrop to McNaughton in 1868 of an undivided half of the lands, east of the park. The next ■parcel sold was conveyed to the Michigan Central Railroad Company in 18J5; but was sold and possession thereof taken by the company in 18Y1. The witness Philip Reith fixes the «date of sale in September or October, 1%11; but the time of payment and of tlie making of the deed early in- l'875i The-Central Company, between October, 1871, and February, 1872, made an expenditure for pump-house, pump, and boiler-on the lands, and for water-pipe in connection with it, amounting to $6419.41, and this pump-house has been in. constant operation since February, 1872. The- possession of the right-of-way lands, described in the contract dated December 9, 1869, made by Latlirop and McNaughton to the-Michigan Air Line Railroad Company, has also-been- in the-company since sometime in 1871, so that, in regard to each, of the three several parcels of land in which it has an interest,, the Michigan Central Company is the first purchaser of the-mortgaged lands, except only the Fort "Wayne, Jackson & Saginaw Railroad Company, as to its right of way. This appellant claims that as to it, the value or price received for alb portions of the mortgaged premises since the construction of the railroad, or the occupation of the pump-house lands,, discharged from the mortgage, should be applied'to redeem the-amount of the mortgage, lien as to it, and that certain obligations at that time held as security to the- complainant should be also so applied. The securities alluded'to are the-sum of $4000 in interest-bearing mortgages,, placed, in- May, 1866, in the hands of A. B. Gibson of Jackson and the $6000' of park bonds also placed in his hands in June, 1866. Of the first amount, $4000 was required by the contract of April 9, 1866, to secure the first quarter of the purchase-money. The value of -the part of the mortgaged lands-northeast of the Central Railroad discharged, in 1872; apparently without consideration, was variously estimated by witnesses at from $3000 to $6000, and the portion of the money consideration paid by the Fort Wayne Company, under its contract of 1874, was about $4200, of which but $2000 was paid to the complainant.
A distinction exists between these securities, and should1 be made, I think, between the funds they represent. The-$4000 of securities deposited with Gibson was, by the contract of April, 1S66, the primary fund for the payment of the first quarter of the purchase price, and the $6000 of city bonds was the purchase price of the thirty acres, and also a primary fund to release it from the mortgage. These securities, amounting to $10,000, it will be noticed, were on interest from the date of the mortgage, and their relation to the original debt differed from the additional securities a creditor sometimes demands from his debtor, or which an embarrassed merchant sometimes gives by turning out the notes of his customers. The arrangement which is’ claimed to have been made, giving them a subordinate character, was one unknown to the world. In the case of the $6000 of city bonds the statement of their receipt went upon the record, and any person, not knowing of a different arrangement, was at liberty to presume that Mrs. Morgan would collect the interest as it should fall due, and the principal sums, and apply them. And so with regard to the securities which were the primary fund for the payment of the first quarter of the purchase price. The arrangements for extending the times for payment to the end of ten years, and for the exchange of securities from time to time, and for the authorization of A. B. Gibson as an agent to make the exchanges, were not such as the public or purchasers were bound to take notice of, or in regard to which they could be presumed to have any knowledge. The original agreement provides as follows in regard to the first one-quarter of' the purchase price: “One quarter to be paid within thirty days, or its payment, with semi-annual interest, secured by nofees or bonds well secured by good mortgages upon sufficient unincumbered real estate, to the satisfaction of A. B. Gibson of Jackson.”
The bond and the mortgage, as well as the original contract between Lathrop and Mrs. Morgan for the purchase of the land, required the payment of the entire principal sum within ten years from its date. There may be some doubt in regard to the interest, but we have treated it as payable semi-annually. This agreement did simply one thing as to Mr. Gibson ; it stipulated that his judgment should be taken by both parties .as to the sufficiency of the bonds and the mortgages with which the first payment might be secured. His letter of May 15, 1866, shows that he then held “ample collateral securities for $4000.” He could only hold them for Mrs. Morgan. He appears to have assumed to act as agent for her in making exchanges of such securities in his hands from time to time for the convenience of Lathrop and McNaughton; but when or how he became thus authorized to make such changes for their benefit does not very clearly appear. The testimony by which it is sought • to establish this authority to exchange these securities at the pleasure of Mr. Gibson, or convenience of Lathrop and McNaughton, I regard as very unreliable; but if Gibson had the right so to do so far as the $4000 was concerned, I do not think the testimony shows such authority as to the $6000 Jackson city bonds. This, I think, pretty clearly appears by Mrs. Morgan’s testimony, wherein she says, in speaking of these bonds: “I understood that Lathrop and McNaughton were to see that it (the money on the bonds) was paid to me, but I supposed they would get it from the city ; I did not undei-stand ■that Lathrop and McNaughton were to have these city bonds except they first paid meand I think the testimony shows that the city bonds were treated by Mrs. Morgan as the primary fund from which the sum of $6000 was to be paid, and that Lathrop and McNanghton, or either of them, were trusted by her to receive the money on the bonds when paid, and that this latter fact is strongly corroborated by what appeaa-s from the records and papers, and the evidence a-elating thereto, from the city council; and that, as between these defendants appealing and the complainant, equity and justice require that in making the computation of the amount due upon the bond and mortgage the amount paid by the city of Jackson upon these bonds should be deducted, both principal and interest, as of the date the several payments were made. The bonds were numbered from one to six, inclusive, and according to testimony, were paid at the following dates: No. 1, April 9, 1870; No. 2, April 10, 1871; No. 3, December 13,1871; No. 4, March 12, 1873; No. 5, October 5, 1874; and No. 6, September 6, 1875.
In regard to the contracts for the right of way made with the Air Line Company by Lathrop and McNaughton, and mentioned in the cross-bill, it is plain that they cannot be sustained. The manner in which they were obtained, and the purposes to be accomplished, do not commend themselves to any court. They have received legislative condemnation for centuries. The value of the interests involved in these contracts has been made the subject of investigation in these cases, so that we may see what was intended and what ought to be done. The equitable rights of the parties, if not clear, are discernable.
From the time the mortgage was given, until the hearing in these cases, Mrs. Morgan cannot be held entirely ignorant, nor without some notice, of what was going on and how her interests were cared for, and how they were to be affected thereby. Her own husband, who is a reputable lawyer, of large business experience, evidently had the general charge of her affairs, and was frequently at Jackson, making inquiries, and could not very well avoid seeing what was being done upon the premises by the complainants in the cross-bill. Both Lathrop and McNaughton were old, intimate, and trusted friends of the Morgans, and Gibson and Bennett were not obscure men in the city of Jackson. These were all complainants’ trusted agents, and who were cognizant of all that was being done by the railroad companies, and participated in nearly all the business in which Mrs. Morgan was interested. She therefore has no bona fide rights in the premises, arising from any want of knowledge or notice, either express or necessarily implied, to be guarded or protected. McNaughton, as director and principal manager of the Air Line Railroad Company, could not purchase land of himself for the company. The Michigan Central Railroad Company took the Air Line Company’s property and rights as it found them. The contract described the right-of-way lands used and intended to be used by the Air Line Company, and which it transferred to the Michigan Central Company, or such interest therein as it had. These rights of way the Michigan Central Company took possession of and have used, or have the right to use, as it claims, under their rights ac quired from the Air Line Company, and' also under a license derived from the owner of the fee thereof. And to such use as has been made thereof by either of the companies no objections seem ever to have been made by Mrs. Morgan, or by -the owners of the fee, other than such as is contained in the original bill of complaint in this cause. Nothing seems yet to have been paid by either company for the said rights of way, or the use they have made thereof. Justice requires that a reasonable compensation should be made therefor. The complainant now owns, under the assignment made to her, whatever interest, legal or equitable, Lathrop and McNaughton obtained under the contracts for right-of-way lands, and Mrs. McNaughton the reversionary interests in the fee, if any, to the same, and to the pump lands, subject, however, to the mortgage interest of Mrs. Morgan.
The Central Company have made large and valuable improvements upon the premises mentioned, under their license claimed, and their equitable rights therein, with the full knowledge and (so far as the record shows) assent of the owners of the fee and ¡mortgage: And we think, under all the circumstances, equity and justice require that the Michigan Central Railroad Company should pay to the complainant, Mrs. Morgan, as full compensation, in addition to what lias already been paid, for the said right-of-way lands and the pump-house lots, and for the use heretofore made thereof, the sum of $4000 within ninety days from the fii'st day of December next, and that upon such payment or tender thereof being made, the complainant, Lucy W. S. Morgan, and the defendant Mary A. McNaughton make, execute and deliver to the Michigan Central Railroad Company a conveyance of the land described in the said right-of-way contracts and the said pump-house lots, free from all liens except those of the Michigan Central Railroad Company ; and that Mrs. Morgan deliver up said right-of-way contracts to be canceled, and that said $4000 thus paid to Mrs. Morgan be applied to the payment of her said bond and mortgage, and that the decree at the circuit should be modified accordingly.
This is not a proper case in which to try the validity of "the conveyances of the park lands to Lathrop and McNanghton, or to the city of Jackson, or that of the city of Jackson to the Railroad Company. The lien which complainant claims does not necessarily .involve the title of the railroad company to these lands. The release complainant was paid for, to the extent of the value of the property released, and for which complainant’s agents received the money, should be applied upon the mortgage. No objection was made by the party owning the reversionary interest in these lands (if any) to making a change in the use of the ground from a public park to railroad or depot grounds; neither does the record show any objections made on the part of complainant to such change being made; neither does it appear that its use as depot or railroad grounds, or for other railroad purposes, would at any time lessen the value of adjoining property, nor that any of complainant’s interests have suffered from the contemplated change. It does not appear that the complainant, or any of her agents, ever intimated, until the filing of her bill, that she should insist upon a forfeiture for any cause, or upon a revival of her lien under the mortgage, if the character of the use of the park lands was ■ changed to that for said railroad purposes; but, on the contrary, it appears that several of her agents at Jackson, if not all, greatly interested themselves in trying to secure such a ■change, and I think it is very doubtful whether such a result, in case of the change in the use of the grounds, was ever thought of or contemplated by complainant when the release ■of her mortgage upon the park lands was executed. Certainly the language of the release itself could not be held to furnish any grounds for such a suggestion. There is also -much doubt whether such a construction as is claimed comes within the letter or spirit of the release, or the dealings of "the parties, and there would be no equity in giving it such -effect at this late day.
We do not think the park lands can, under the circum.stances and testimony in the case, be again subjected to the lien of the complainant’s mortgage. A re-computation must be made in the ease, and the decree at the circuit must be modified and entered anew, in accordance with the views herein expressed.
The other Justices concurred in the result.
Afterwards, at the following January term, a re-hearing in this case was .denied, and the following memorandum filed:
Per Curiam. In this case the motion for a rehearing is-denied. Any mere details can be fixed when the decree is- ■ settled. | [
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Champlin, J.
This action is brought to recover the amount ■claimed to be due to plaintiff as a' physician. The defense interposed a plea of the general issue, with notice of set-off and statute of limitations. On the trial the plaintiff was ■sworn in his own behalf, and testified to the nature of the ■services, the time when rendered, and their worth. A portion ■of the items of the plaintiff’s account originated more than six years before suit. In his bill of particulars the plaintiff credited, under date of February 25, 1878, an item of cash paid by defendant to plaintiff of six dollars. The suit originated in justice’s court, and the pleadings were there made.
It has been twice tried in the circuit, and on the second trial plaintiff asked leave to amend his bill of particulars, so as to credit defendant under date of September 9, 1879, by one load of wood delivered to William Matson for plaintiff, $2.50. This he was permitted to do, against defendant’s objection ; but when proof was offered by plaintiff to sustain this item, it was objected to, and excluded; and the rulings upon this subject constitute the plaintiff’s first, third, fourth, fifth, sixth, seventh and eighth assignments of error. We do not think the court should have allowed plaintiff to amend his bill of items in the manner he did at that stage of the case 5 but there was no error in excluding testimony relative ■to this item of credit. It did not injure the plaintiff. It was more thari a year and a half after the first item of credit, and long after the last item of debit, in his account. It never had been credited to defendant .until after the first trial in the circuit, and if proved would not have operated to arrest or prevent the running of the statute.
The defendant admitted that he had been treated by the plaintiff, but testified that it was under a special agreement that the plaintiff was to cure him for twenty-five dollars, or, in case he failed to do so, he was to receive no pay; and that he had failed to cure him.
The disease with which the defendant was afflicted was not material either under the plaintiff’s or defendant’s theory of the case. The material question was whether the plaintiff had effected a cure. The record of the divorce proceedings between the former wife of defendant and the defendant, was rightly rejected. It was entirely irrelevant, and did not tend to establish the fact that the plaintiff had rendered the services charged for, or that he had not made an agreement such as was claimed by defendant. . It was also incompetent as evidence of defendant’s moral turpitude. It follows that the ninth, tenth and eleventh allegations of error are not well assigned.
The sixteenth assignment of error relates to the cross-examination of an impeaching witness. The question excluded was put to show that the impeaching witness was not himself a person of reputable character, and objection was made by defendant; whereupon plaintiff’s counsel stated to the court what he expected to prove, in effect that the witness had been a procurer for years, and a blackmailer. Considerable latitude is'always allowed to counsel in the cross-examination of impeaching witnesses, in order to enable the jury to place a just estimate upon the weight to be given to their testimony, but the extent to which it may go is always in the discretion of the -court, and unless there has been an abuse of discretion we cannot condemn the ruling. In this case, after the statement made of what the plaintiff’s counsel proposed to show by the cross-examination of this witness, we agree that the ruling of the court was eminently proper. Indeed, bad he permitted such collateral matters to have been gone •into, as proposed by the plaintiff’s counsel, it would have been a just cause for exception by defendant’s counsel. The seventeenth, eighteenth and nineteenth assignments of error are without merit. The twelfth and twentieth relate to the ■conduct of the court upon the trial, which the plaintiff’s counsel claims operated to the prejudice of his client. From a 'Careful examination of the record .we do not perceive that the conduct of the court is open' to that construction. The misconduct alleged consists in ordering the counsel for the plaintiff to proceed with the case in the absence of hjs witnesses, and in refusing to await their arrival, which was momentarily expected, and in ordering him to close his case and go to the jury.
In the forenoon of the second day of the trial the defendant had placed four witnesses upon the stand, who swore that the reputation of the plaintiff for truth was bad, and then rested his case. The defendant then placed four witnesses upon the stand who supported the plaintiff’s character for truth and veracity, and that they would believe him under ■oath. Adjournment was then had for an hour and a half for dinner, and upon the convening of the court, the plaintiff offered in evidence the enrolled decree for divorce, which, on objection, was excluded. Another witness was then called in support of plaintiff’s character for truth, after which it appears that the court requested the plaintiff’s counsel to proceed, when he announced that there were several important witnesses almost at the door of the court-room, and asked the court to wait not over five minutes; that they had not expected this attempt at impeachment, and would not delay. The court inquired if his witnesses were in court. Counsel replied : “No; but I am informed that they are on the way, and almost at the door of the court-room.” The court then said: “ I order the case to go on.” Counsel for plaintiff then explained that he had no witnesses present. Some further contention then arose between court and counsel, the court ordering counsel to go to the jury, and the counsel refusing to do so; and he thereupon called Henry Starkey as a wit ness, who testified in support of the plaintiffs character; and also two other witnesses to the same effect. Plaintiff’s counsel was then sworn as to computation of interest.
In looking at the contention between counsel and court it will be seen that the delay was asked to enable plaintiff to-bring forward sustaining witnesses as to his character. It had been attacked by four witnesses. He had already introduced five witnesses to sustain it. When impeaching testimony is-given of general character for truth, the number of impeaching and sustaining witnesses which will be allowed to be introduced is in the discretion of the court, and is generally limited to an equal number on each side. Here the plaintiff’ had already exceeded the number introduced by the defendant, who had given testimony tending to impeach the plaintiff’s character for truth. There appears no reason, then, as the case stood when the court requested plaintiff’s counsel to-proceed, why he should not have sworn himself as a witness-as to his computation of interest, and closed his case. Certainly it cannot be claimed that there was anything arbitrary or an abuse of discretion in ordering the case to proceed. The situation of the case did not justify plaintiff’s counsel in insisting upon further delay. He did not claim that he had rebutting testimony other than that of a sustaining character,, and therefore it resolved itself into the simple question under his request whether the court would delay the trial for the arrival of further witnesses of that kind. We think he was-not obliged to do so.
In his argument to the jury the plaintiff’s counsel alluded to the defendant’s character as developed in the divorce proceedings, when the defendant’s counsel objected, inasmuch as-they were ruled out of the case; whereupon the court said r “ The counsel must not allude to that record or what is in it. This is being repeated too often.” At which the defendant’s-counsel took exception to the interruption of the court. This exception of defendant’s counsel was uncalled for. It was the-duty of the court, on objection being made to counsel, in his-argument to the jury, commenting upon testimony which had been excluded, to admonish counsel not to comment upon testimony which had been excluded from their consideration, and we have no doubt that he has sufficient power and authority to compel obedience to his order in that respect if necessary; and certainly if counsel in the heat of argument should so far forget themselves as to pass beyond the limits' of propriety in that respect, they ought not to consider it indecorous or misconduct in the court to call their attention to the fact.
The questions in the case were purely questions of fact, and were submitted to the jury under a fair and impartial charge; and there being no error of law in the record,
The judgment rendered upon the verdict is affirmed.
Campbell , O. J. and Sherwood, J. concurred. | [
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Cooley, C. J.
On December 12, 1883, the plaintiff brought suit in assumpsit against Jonathan C. Davis, as defendant, and garnished Alexander B. Linn and William E. Linn as his debtors. Judgment was recovered in the principal suit, November 9, 1884, for the sum of $1110.99. The garnishees answered in the case, admitting their indebtedness to the amount of $139.65, but saying they had been notified the debt had been assigned to some bank at Madison, Indiana. Subsequently the First National Bank of Madison, Indiana, appeared as intervening claimant, and the case was tried by the circuit judge without a jury on the validity of its claim. The following is the finding of facts:
“First. That on the twelfth day of December, 1883, the said plaintiff commenced the suit herein in an action of assumpsit against the said defendant, Jonathan C. Davis; and at the same time filed an affidavit in garnishment under section 808Y of Howell’s Statutes, against the said principal defendant as a non-resident, and writs of garnishment were duly issued thereon against the said Alexander R. Linn and "William F. Linn, partners as A. R. & W. F. Linn, which said writs were duly served on said garnishee defendants on the said twelfth day of December, 1883, in the city of Detroit, "Wayne county, Michigan, and that due notice of said proceedings were afterwards, to-wit, on the sixteenth day of ' January, 1884, in Madison, Indiana, served on said principal defendant in the manner and form required by the statute.
Second. That on the ninth day of November, 1884, a judgment was duly rendered in said principal cause against said principal defendant, and in favor of said plaintiff, for the sum of $1110.99, and costs of suit, which have since been duly taxed and that the amount due on said judgment is still in force and unpaid.
Third. That at the time of the service of said writs of garnishment, the said garnishee defendants were indebted to the principal defendant in the sum of $139.65, unless the-transaction of November 2, 1883, as hereinafter set forth, constituted an assignment of such debt to the said intervening claimant, and that said indebtedness represented the same account as that stated in the fourth finding being originally owed on the second day of November, 1883, to the firm of J. C. Davis & Co.
Fourth. That on the second day of November, 1883, there was presented for discount to said intervening claimant, which is in the habit in the natural course of business of discounting commercial paper, a draft drawn by the firm of J. C. Davis & Co. upon the said garnishee defendants, who were by mistake named therein as A. R. & W. H. Linn, for the sum of $139.65, and attached to said draft was a bill for merchandise for an equal amount, copies of which said draft and bill are as follows:
“ ‘$139.65. ' Madison, Ind., November 2, 1883.
‘ Thirty-six days after date pay to the order of the First National Bank of Madison, Indiana, one hundred thirty-nine and 65-100 dollars, value received, and cliai’ge the same to-the account of ■ J. C. Davis & Co.,
per J. C. D., Jr.
‘ To A. R. <& W. H. linn, Detroit, Mick.’
‘ Madison, Ind., December 14, 1883.
‘ Messrs. A. R. de W. H. Linn, Detroit, Michigcm: Bought of J. C. Davis & Co.
‘ October 9. To 49 doz. gallon apples at $2.85 per doz.. $139.65.’
Fifth. That said intervening claimant in ordinary course-of business discounted said draft and paid the proceeds thereof, to wit, the sum of $138.40, to the said firm of J. C.. Davis & Co, upon the said second day of November, 1883,. and the said draft with the said account attached was duly delivered to the intervening claimant.
Sixth. That at the time of said discount, the said firm of J. 0. Davis & Co. was composed of said Jonathan C. Davis and Geo. ~W. Elstun & Co., and that on the said third day of November, 1883, the said firm of J. C. Davis & Co. was dissolved, and all accounts owing to said firm assigned to said Jonathan C. Davis.
Seventh. That on the ninth day of November, 1883, the-said intervening claimant was duly permitted on petition to-appear in said garnishment proceedings and maintain its right to said indebtedness after the manner of a suit at law, as provided by the statute in such case made and provided ;. and on the trial of the issue herein was present by counsel, and participated in the same.
Eighth. From these facts, the court finds, as a conclusion of law, the following: (1) That the said intervening claimant acquired no right to said indebtedness by the purchase or discount of said draft; (2) that the discount of said draft in the manner stated did not operate as an assignment of said account: (3) that the said intervening claimant has no rights in said indebtedness as against said plaintiff; (4) that said plaintiff is entitled to a judgment against said garnishee ■ defendants for the sum .of $139.65.”.
Judgment having been rendered on this finding, the claimant has brought error:
The controversy, it will be seen, turns upon the question whether the draft by Davis on the Linns operated as an assignment of the demand. It was received and discounted by the claimant before the garnishment summons was served,• and the Linns were notified of the facts before they answered. If, therefore, the draft transferred the demand to the bank, the judgment is erroneous.
In the recent case of Grammel v. Carmer 55 Mich. 201, the question whether a draft was an assignment of the fund in the drawee’s hands, to the extent of the sum drawn for, was considered and decided in. the negative. That, however, was the case of a banker’s draft, and it was not drawn for the whole fund in the ,drawee’s hands. Many cases were cited in the opinion filed in that case, and the following, not then cited, are to the same effect: Shand v. Du Buisson L. R. 18 Eq. 283; Lewis v. Traders Bank 30 Minn. 131; Jones v. Pacific Wood &c. Co. 13 Nev. 359; Rosenthal v. Mastin Bank 17 Blatchf. 318; Dolsen v. Brown 13 La. Ann. 551; Sands v. Matthews 27 Ala. 399.
But this case differs from Grammel v. Carmer in the fact that the draft now in question was drawn for the exact amount of a sum claimed to be due from the drawees to the drawer for a bill of merchandise, and that the account was attached to the draft, evidently for the purpose of being sent forward with it. "When thus sent forward, it would explain to the drawees the account on which it was drawn ;■. but it must also have been understood to serve a further purpose, namely, to be evidence in thejhands of the drawees that the account was paid when the draft was taken up by them.. There could be no sufficient reason for attaching it at all, unless it was understood that' payment of the draft would be payment of the account as well.
By the general commercial law, as was said in Grammel v. Carmer, the purchaser of a draft is supposed to take it in reliance upon the responsibility of the drawer, and he has no' other reliance until it is accepted. This is the general rule. But if the draft is for the whole amount of a fund, the draft may, in connection with other circumstances, tend to show an intent that it should operate as an assignment. First Nat. Bank of Canton v. Railway Co. 52 Iowa 378. And whereas, in this case, the draft is for the amount of an •account, and the account is attached, the purpose to assign ■appears on the papers themselves, and they need no support from collateral circumstances. The payee, then, in taking "the draft has a right to understand that, in addition to the ■responsibility of the drawer, he has such security for payment as may be supplied by the account, and that he may ■collect the account for the satisfaction of the draft. The drawer, by the papers, in effect, says to the drawee: “ This is my bill against you, which I have sold to the payee by this draft, and you are requested to make payment of it to him.” This is what a business man would have a right to understand from them. The draft with the bill thus attached is not an ordinary bill of exchange, but it is an order that the debtor shall pay the amount of his debt to the person to whom it is delivered. The fact that the draft is negotiable in form is of no importance. It does not at all tend to rebut the evidence of intent on the part of the creditor to assign the demand.
The judgment must be reversed, and judgment entered in this Court for the garnishee defendants. * The claimant is ■entitled to costs of both courts as against the plaintiff, but the effect of the judgment is that the garnishee is not entitled to the attorney’s fee allowed him in the court below.
The other Justices concurred. | [
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Sherwood, J.
The defendant was sheriff of the county of Osceola in 1884. The plaintiff brings replevin for property taken by the sheriff upon an execution issued in the circuit court of Kent county upon the transcript of a judgment rendered by a justice of the peace in the city of Grand Rapids, in favor of George L. Sampson and Frank D. 'Black, against the plaintiff, Ambrose 0. Kies, and John Hall, defendants, for the sum of $173.88. The plaintiff claims that the justice had no jurisdiction in the case, and that the judgment, from which the transcript was taken, was void, and that no lawful execution could be issued thereon. The main facts in the case are uncontroverted, and from them it appears that when the suit was commenced before the magistrate, none of the parties were residents of the county of Kent, and personal service of the summons was had upon the plaintiff alone; that on the return-day of the summons (the 31st day of March, 1883) none of the defendants appeared, and the justice adjourned the cause upon his own motion until the 5th day of April, at nine o’clock a. m. following, at which time, the defendants not appearing, the plaintiff proceeded in the case and took the judgment, upon which, and the transcript therefrom, the execution under which the sheriff seeks to justify, was issued.
Upon the foregoing facts, the circuit judge held that the justice obtained no jurisdiction of the person or property of the plaintiff, and that the judgment rendered was therefore void, and directed a verdict for the plaintiff. We think this direction by the circuit judge was right. Certainly, the justice had no power to adjourn the case under the facts stated upon his own motion, and when he did so he lost jurisdiction of the subject matter. How. Stat. § 6903; Stadler v. Moors 9 Mich. 264; Harrison v. Sager 27 Mich. 476; Brady v. Taber 29 Mich. 199.
It is not competent under How. Stat. §6819 for a plaintiff to'sue a defendant in a justice’s court, where they are both residents of this State, in a county where neither of them reside; but where either is a non-resident of the county, suit may be brought before any justice, in any township of the county, where the other resides, and may at the time happen to be, and the court has jurisdiction only in those cases in which the plaintiffs, or some one of them, or the defendants, or some one of them, are resident in the county where the suit was brought.
The judgment of Judge Montgomery upon the facts appearing in the record was correct, and must be affirmed.
The other Justices concurred. | [
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Campbell, J.
Drew recovered $633 damages against ■defendant for assault and battery. Defendant brings error. The circumstances, so far as they are not disputed, were these : .Defendant had become owner of property in Big Rapids that had been mill property lying west of the Grand Rapids & Indiana Railroad. This was once owned by one Moon, •and while he so owned it a spur track had been taken from a side track connected by switch with the main track, so as to lead from the mill to the side track and thence out upon the main road, and with no other means of egress. This spur had been so built that one of the rails was on Moon’s land, and it was built to accommodate the mill, but was used, more or less, to back cars on. It was built in 1873. In the mean time it had become dilapidated and the ties had rotted, so that at the time of this difficulty it was unfit for use without repair. Plaintiff bought the property in 1880, and in the spring of 1881 went on to build a mill, which he got ready for use in October, 1881. There was a siding of the Detroit & Lansing Railroad which connected with his mill premises, and over which he shipped lumber. The siding was so near the spur that cars upon the latter would interfere with those on the. siding. Defendant had desired the Grand Rapids & Indiana Railroad to remove the spur from his land, and some preparation had been made to do so. On the evening of the 12th of October, 1881, plaintiff, who was section foreman of track repairing for the Grand Rapids & Indiana Railroad, spiked down the switch from the spur to the side track of that road, to prevent any use of it, and had some talk with defendant, and from that or other means understood that he did not desire the spur to be used or to remain on his land-On the 13th of October, in the morning, plaintiff came with a gang of men, and proceeded to renew the spur track by taking out the old ties and putting in new and sound ones throughout. Defendant forbade his doing so, and he persisted. After coming twice and ordering plaintiff off, with his reasons for doing so, plaintiff still insisting that he would refit the track, defendant came a third time and pointed out his line and insisted it should not be trespassed on. At this point the controversy begins. It is claimed by plaintiff that defendant pushed him off, and before he could entirely recover himself struck him over the forehead with a stick, and wounded him over the eye so that he was struck down ; and that this wound was a permanent injury, of a serious character.
Defendant claims that the stick was a sawed-off broom- handle that he had picked up in his mill to use as a staff, as he had been lamed; and that he struck to ward off an apparent effort by plaintiff to strike him with an uplifted shovel, and did not aim to do him injury, but the stick glanced and hit him as it fell. The stick was described by plaintiff as a hard-wood stick about four feet long. It appears to have been used with only one hand. When it was used, defendant’s left side was nearest plaintiff, who claims he turned round to face him. The blow fell on the further side of plaintiff’s forehead, immediately over his left eye. It was evidently struck by the rough end of the stick, as the wound, as described by Dr. Hendryx, the physician who dressed it, was only a flesh wound, less than an inch in length, which bled very freely, but involved no injury to either bone or periosteum, which had no complications in healing, and which he did not regard as a permanent injury.
It appears from the record that the case became greatly magnified by some extraneous matters, and there was much in the course of the trial which the court evidently regarded as of doubtful propriety, and let in with some hesitation. W e shall, however, confine ourselves to such questions as arose upon the charge, as we can hardly believe that a new trial will be allowed to be affected by the exaggerations which seem to have made out of what no physician has deemed a very serious wound a murderous injury.
The whole case, so far as the alleged assault is concerned, involved but a few questions. It is not disputed, and the court held, that the plaintiff was actually intruding and trespassing on defendant’s ground, with a design of permanent occupancy. But the court also held that defendant had no right to use any degree of force to keep off the trespassers, if the railroad company, under whom plaintiff had to justify, claimed rights there. And the court held that there was evidence of such a bona fide claim, and further, that if defendant had no right to push plaintiff in the first instance he was in fault in striking the blow, and must pay compensatory damages. He also referred several times to the claim of damages of $5000 in the declaration as the only absolute limit to the jury’s discretion, and made a further statement in these words: “A verdict in this case must cover all time. Mr. Drew can never sue again for any damage, no matter if he was prostrated on his bed during his whole life-time after this, from the effects of it. One action is all that can be brought in that case.” The earlier part of the charge practically compelled the jury to find some damages.
Some other portions of the charge are complained of, but as they mostly bear upon- what is raised by these rulings, we need not consider them separately.
In opening the summing up, after referring to the case as one of great importance, because of the large claim of damages, the court told the jury there was no dispute “ as to the fact that an assault and battery was committed, and the time when it was committed, and the person by whom and upon whom the injury was committed.” An assault was then defined as involving an attempt “ with unlawful force ” to inflict bodily injury, and a battery as an actual injury, which in this case was a real one. And in the same connection the jury were told, as they were afterwards told, that they had •entire discretion as to damages within the sum claimed in the declaration.
When the jury were told that defendant had committed an assault and battery, and that every assault and battery was a use of unlawful force, they were practically told to find for the plaintiff, and give discretionary damages; and when they had their attention subsequently called to the fact that plaintiff could never sue again, although he might be prostrated on his bed during his whole life-time, they were authorized to act on the theory that the injury might pro. duee future and permanent mischief not yet developed, and might assess their damages oh that possibility. All of this was erroneous. There was a dispute whether the blow was aimed at all against plaintiff’s safety, or directly against his person. The whole body of the controversy bore upon its legality ; and there was no testimony whatever which tended • to show that all of the effects of the wound were not already developed, or the wound not entirely healed without danger of reopening.
If an assault is always unlawful, then it was not admitted by defendant that' he. had committed one. But the definition is incorrect. An assault may be entirely lawful, as either excusable or justifiable, and it involves every “ attempt or offer, with force and violence, to do a corporal hurt to another.” Toml. Law Diet. “ Assault.” The jury, therefore, were misled in the outset into an assumption which, from the peculiar amount of the verdict, does not seem to have been corrected. And while there are in subsequent instructions some explanations which bear in another direction, they were so qualified as to leave room to the end for the original impression.
Upon the question of the original trespass, it appears by plaintiff’s own showing that he knew defendant disputed the right of the company. He could not justify his own entry unless the company could do so, as he did not enter in his own right. We find nothing in the record which tends to show either that the company was in ignorance of the exact, condition of the title, or that it claimed any adverse holding. ■So far as there is any evidence at all, it bears in the other direction.' It appears, without any contradictory evidence that we have discovered, that the only persons who had any right to act for the railroad proposed to respect defendant’s claim. It would be unjust to the corporation to attribute to it a design which was unlawful, without proof that some responsible agent was engaged in it. Plaintiff, according to his own statement, communicated with no one but an assistant road-master and a master of transportation, neither of whom can be presumed to have authority to represent the company in claiming disputed titles, and he also says that he proposed to go forward on his own responsibility, without reference to their orders. Under such circumstances it is difficult to see where there is any room for justification shown, or for holding him to be anything but a trespasser on his own responsibility. And it cannot be questioned that the entry of plaintiff and his gang of men to. relay the track,, if tortious, at, all, in spite of any opposition by defendant, was a very serious wrong, directly calculated to provoke violence.
Tkei’e was nothing in the push asserted to have been given in the first place to amount to a wrongful assault on a trespasser, or to justify force on the part of plaintiff. And if defendant used his stick to defend himself from what seemed to him to be an assault, there was no wrong in doing so. And if the act of plaintiff was such as appeared to involve serious bodily harm or peril to his life, we are not prepared to say that he would be deprived of his right of self-defense by even' a technical unlawful assault which did no damage.
All these considerations were in the case, and upon any theory of the conduct of the parties the instructions went too far. Passing any other grounds of error as unnecessary to be dealt with, the judgment must for these be
Reversed, with costs, and a new trial granted.
Champlin and Sherwood, JJ. concurred. Cooley, C. J. did not sit. | [
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Campbell, J.
Plaintiff was appointed special administrator of the estate of Olive N. Shepardson, on an ex parte application on behalf of the sole heir-at-law and sole distributee, except defendant, who, as husband, was equally entitled. This application was made without notice to defendant, who-had, three days previous, commenced proceedings in the same probate court of Wayne county for the probate of a will of the decedent.
Plaintiff brought replevin for a pair of horses claimed to-have belonged to the deceased, the suit being brought very soon after his appointment. This suit proceeded to trial in the usual way, and judgment passed for the defendant, and was brought into this Court on error and exceptions. Here it was reversed, and a new trial was ordered for errors ■on the first trial. The ease is reported in 52 Mich. 3.
On the new trial defendant offered and was allowed to .attack the appointment of plaintiff as special administrator as void for want of jurisdiction. This defense prevailed, and ■defendant obtained judgment in his favor, which is now brought to this Court for review.
The first objection made here is that defendant had lost his right, if any existed, to attack the appointment. This ■objection is well founded. It cannot be doubled that if ■defendant had acquiesced in the appointment knowingly, when made, it would have been valid, because no one but parties interested could attack it. It appears by the records ■of this case, as brought up on the former hearing, that the first trial proceeded on questions of title entirely independent •of plaintiff’s special interest. The objections to that appointment would, if sustainable, have been a complete defense then as now. They were such as were peculiarly within defendant’s knowledge, and he could not have been ignorant -of them. The records were within the same county, and at the place of trial. The objections, as already stated, were such as he could waive, and if waived, left the appointment good. He saw fit to go to trial below, and to have the case •disposed of in this Court on other grounds, when, if right in his assumption, the presentation of this defense would .have ended the controversy forever, as between these parties.
We have held several times that parties in this Court who have failed to raise questions necessarily involved in the suit, ■and which cover the whole of it, either on the original trial, or in this Court on review on former hearing, should not be permitted to present them afterwards, and thus vexatiously prolong litigation. Great Western R. Co. v. Hawkins 18 Mich. 427. This rule will not be made so rigid as to create injustice. But in such cases as the present, where the objection is to a title which defendant could in any event make good by acquiescence, and which, after encouraging plaintiff to act upon, he would be estopped from denying, the reasons for enforcing it are very strong, and it would be unjust to disregard it. By defending on grounds which practically admitted plaintiff’s standing, and by involving expenses below and in this Court upon the recognition of its sufficiency, we think defendant has estopped himself from disputing it. There are many cases at law where such a title should be objected to by plea in abatement, if at all, and dilatory pleas are based on the idea that such questions should be disposed of early, in order to save the expense and delay of a needless trial on the general merits. The question of pleading in cases like the present need not be discussed now, because there can be no doubt, on our previous rulings, that the plaintiff’s official authority has been put out of the controversy by acquiescence.
For the same reason it would be improper to discuss the subject in its legal aspects.
The judgment must be reversed, and a new trial granted.
The other Justices concurred. | [
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Campbell, J.
Plaintiff sued defendant, as administratrix de bonis non of Isaac J. Hoag, deceased, for not paying a debt proved by him against the estate; the action being founded on section 5936 and the subsequent sections of Howell’s Statutes.
Isaac J. Hoag died May 8, 1874, and Allen M. Randall was appointed administrator, in which capacity he acted until February 5, 1878, collecting and inventorying assets and performing other services. At the latter date he resigned, and it appeared by his account that all of the personal assets which remained consisted’ of real estate which had been bought in nnder mortgages belonging to the intestate. These stood as inventoried at something over $10,000.
On his resignation defendant was made his successor in the-trust. The realty thus acquired, as well as the land which had belonged to the intestate, valued at several thousand dollars, remained undisposed of, and so far as the record shows, properly so.
In August, 1879, a new order was made for the proof of' debts by plaintiff and such others. as might apply, and he- and one other creditor proved claims before the judge of probate. One small claim was allowed to another creditor. Plaintiff proved one claim of $2000 and some interest, which matured December 29, 1873, or nearly six years before, and one of $1300 and interest, which matured January 1, 1879. The order allowing these claims was made February 18, 1880, and it contained a statement that defendant had assets, and a direction to pay them within ninety days.
On the 10th of March, 1880, a license was granted to sell land, and it was at- once advertised for sale, April 27th, and sale made. The court of probate refused to confirm the sale, on a technical irregularity. The present suit was brought in July, 1883.
The court below, on the trial, made several findings of fact which cover what has already been stated, and held that there was no liability against defendant, because she received no personal assets, and was not in fault for not selling the lands. The court also found that the recital of assets in the probate order was unwarranted'and made without any proper notice and hearing.
Upon this last question the finding is correct. By section 5936 of Howell’s Statutes, the proper order to enter upon the determination of such claims is an order that the administratrix pay if she shall have sirfficient assets. And by sections 5938 and 5939 it is provided that when an action is commenced for non-payment, the defense of plene administravit may be set up, and judgment shall only be rendered for so much as the assets will warrant. But real as well as personal property is reckoned among the assets-by section 5936.
It was held in Hilton v. Briggs 54 Mich. 265, that the inventory was not conclusive as to assets or their value. The court below did not find the actual value of assets in defendant’s hands, and therefore the finding furnishes no means for entering judgment, if otherwise warranted.
Hnder the finding there is no doubt that there were assets to some extent which might be sold. And there is no fact found from which it can be determined that defendant is not responsible for not selling. There was some evidence from which it is possible it may be conjectured that the sale proceedings were managed by plaintiff or his agent. If so, it may be that he and not defendant should be held responsible for the consequences. But there is no such, finding of specific facts.
In the absence of any finding of the amount of assets unadministered, there is nothing to support a judgment for plaintiff for any fixed sum. The facts being chiefly proved by documents, there is nothing before us but the finding which could enable us to make a final disposition.
The proceeding must be treated as a mistrial, and a new trial awarded with costs to abide the event.
The other Justices concurred. | [
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Sherwood, J.
Otto Klanowski, on the 23rd day of June, 1883, lived with his family, consisting of himself, his wife and four children, upon six acres of land, situated oh Chene street near the city of Detroit, and about a mile from where the same crosses the Grand Trunk Railway. He was a teamster owning a team and wagon, and on that day had been plowing for a neighbor by the name of Miller, who lived upon what is called the “Miller Road,” which runs east of Chene street, and across the railway track diagonally about 24 rods north-east of the Chene street crossing. This was known as the “Miller Crossing.” Still further northeast, about three-quarters of a mile on the line of the railway, is what is known as “ Biglow’s Crossing” on Court street.
On the evening of the 23rd of June aforesaid, between nine and ten o’clock, Klanowski started to go home from his work at Miller’s with his team and wagon, having his son, Emil, with him, a lad about fifteen years old, and who drove the team. In making the crossing upon the Miller road, they were overtaken by the Montreal Express, consisting of three coaches, a baggage car, and the engine, which came down upon them from the northeast at the rate of forty miles an hour, the engine striking the wagon just as it was about leaving the track and completely demolishing it, killing Mr. Klanowski almost instantly, greatly injuring the son, breaking his thigh and shoulder, and killing one of the horses. On the 7th day of August following, the plaintiff, who was the wife of the deceased, was duly appointed administratrix of the estate, and on the 19th day of September thereafter, she brought this suit to recover for the injury and damages she and her children had sustained by the alleged negligent act of the defendant in killing her husband, and destroying his property. No question arises upon the pleadings.
The case has been twice tried in the Wayne circuit court, and the plaintiff obtained a verdict upon each trial, which in the first was set aside in the circuit court, and the proceedings upon the second trial are now before us for review, brought up by writ of error, the record showing a bill of •exceptions containing the substance of all the testimony taken upon the trial. Thirty-four assignments of error are presented for our consideration. When the plaintiff rested her case, counsel for defendants asked the court to direct the jury to render a verdict for the defendant on the ground that the deceased contributed to the injury, and at the close of the trial requested the court to charge the jury “ that,. under the testimony in this case, the plaintiff is not entitled to recover, and the verdict of the jury should be for the defendant.” The court declined in each case to give the instruction asked, and exceptions were duly taken. These exceptions are properly first to be considered, because, if these rulings of the court were wrong, it is unnecessary to give attention to the other errors claimed. A view of the premises where the collision occurred and the deceased was killed, was taken by the jury under the direction of the court.
There are certain (statutory duties required to be observed and performed by a railway company in this State, intended to prevent injury and accidents to persons and property at railway crossings and other places of danger. These requirements are made for the benefit of passengers, strangers and travelers on the highway (Evans v. Atlantic &c. R. Co. 62 Mo. 49), and such duties cannot be neglected or omitted with impunity. If they are, and an injury to persons or property occurs by reason thereof at such places, the company will be liable; and although the party injured under •sucli circumstances, by his acts, or omissions to act, induced ■by the negligence of the company, may be guilty of some faults which contributed to the injury complained of, such fault ought not to be permitted to avail the company in making defense against their wrongful acts, unless it was wilful, or so gross as to render it equally inexcusable. Any ■other rule would allow the company to take advantage of its ■own wrong in avoiding its statutory liability.
In approaching a crossing upon a highway the circumstances differ in almost every case. Sometimes they are favorable to making an early discovery of the train, and many times not; sometimes the team requires more attention than at others; in some cases the approach to the track ■up and at others down; some persons have quicker sight than others and can see at far greater distances; at some ■crossings the train moves on an up grade and at others on a down grade, and the road-bed often being elevated and not unfrequently depressed below the surface of the highway, ■and in most cases the view is more or less obstructed by .fences, bushes, shrubbery or embankments. Many times the train runs much stiller than at others in consequence of the ■condition of the atmosphere and other causes ; in all cases, persons, except those in charge of the train, are liable to be ■deceived in the speed of the train, and in no case is the exact time when the engine reaches the crossing known to others than the engineer. For these and many other reasons which might be given no other safe rule can be adopted. No less than the giving of every warning the law exacts should be held sufficient to shield the company from liability for damages arising from injuries received at such places. Safety to the lives of those traveling upon the cars, as well as to those traveling in vehicles upon the highway, requires this. All persons have a right to expect and rely upon the full performance hy the company of all the requirements and duties imposed upon it by the law under which it alone is allowed to exist and do business, and it is not unfrequently impossible to ascertain with any degree of certainty how far the neglect •of the company to give the required warnings at highway crossings may have been relied upon by a person in regulating and determining his action in approaching the track where a collision and injury occurs resulting in his immediate death. Usually the circumstances surrounding the accident have to be relied upon in determining the question, and such action on the part of the injured party should never, in this class of cases, be allowed to control the verdict of jurors-unless it satisfactorily appears to have been very gross, or wantonly negligent and careless. It was the duty of the defendant in this case, under the statute, to twice sharply sound the whistle of the locomotive at least forty rods before reaching the crossing, and to ring continuously the bell for the entire distance.
These are very important and significant warnings. It is claimed upon the part of the plaintiff these signals of the approaching train were not given ; and if there is testimony in the case tending to show the claim was true, it was certainly the duty of the court to submit the case to'the jury upon that point. On the part of the defendant the conductor, engineer, fireman, brakeman and another employee of the company, who was a passenger upon the train, all gave testimony that the statutory signals were given. On the part of the plaintiff -were sworn the son of the deceased, who was in the wagon and driving the team at the time the injury occurred; Mr. Alstadt, who was sitting by the side- of the track about twenty rods from the Miller road, aud heard the crash; Mr. Moebly, who was within a short distance of the train and heard it coming; Mr. Harris, who was with Moebly, and first saw the train at the Biglow crossing, and saw it when it crossed the Miller road; Mr. Schmidt, who lived on Chene street, near the railway crossing, and about two hundred paces from the Miller crossing, and heard the crash and heard the train a short time before; Mrs. Schmidt, who was in her kitchen door and heard the crash; George Strikle, who was in the wagon with Mr. Moebly when the train passed near the Miller house, and heard it; Kate Strikle, who was in the wagon with Mr. Moebly at the time the train passed; and Maggie Moebly, who was also in the vicinity of the accident when the train passed. All these witnesses were between the whistle post and the Chene street crossing, or very near, when the accident occurred, and within hearing distance of the signals if they were given, and all testify that the bell was not rung nor the whistle sounded, and most of them are very positive on the subject. It is true, the testimony of these nine witnesses is contradicted by the five employees of the company, and that several of the nine occupied positions and relations to the son and father’s estate which would naturally tend to bias them in favor of the plaintiff’s side of the case, and the cross-examination of some of them somewhat modified the testimony given on the direct; and similar criticisms may be properly made, as to the testimony of defendant’s witnesses; but as the case went to the jury upon this point, I cannot understand how it can be said that there was no testimony tending to prove that the signals were not given, or sufficient to be submitted to the jury.
These nine witnesses are not materially discredited save by the testimony of the five sworn on the part of the defense. The testimony for the plaintiff, as it stands in this record upon this subject, rises to the plane of evidence, and as such was entitled to the careful consideration of the jury. It raised the question of credibility of the defendant’s witnesses, which is always a question for the jury, and, if believed, was quite sufficient to fix inexcusable negligence on the part of the defendant, and it would clearly have been usurpation in the court to have otherwise treated it.
It is said by counsel that the testimony of plaintiff’s witnesses on this point is all negative in its character. This is true: but the fact which the law requires her to establish is also a negative one, and the value and weight of this class of testimony must necessarily depend upon the circumstances affording opportunity to render certain the facts stated; for instance, a brakeman, located upon a train five coaches from the engine or bell, is no more likely to hear the signals when made than a person standing upon the ground or. sitting in a wagon listening for them at the same distance, when both are giving equal attention: and if the two are equally credible, there is no reason for believing the testimony of the one in preference to that of the others. The varying circumstances and surroundings can easily be brought out upon the trial and placed before the jury, and it is their duty to weigh them and ascertain the importance of each. It is no part of the duty of the court to balance up the evidence and determine the preponderance'. The court can only consider the testimony so far as to determine whether there is any evidence to be passed upon, from which all inferences the jury may justifiably draw therefrom will be sufficient to support a verdict for the plaintiff, and if not, the court may direct a verdict for the defendant. And in a case like the one before us, it is the duty of the trial judge to determine whether any facts have been established by the evidence of the plaint, iff from which negligence may be reasonably inferred. And it is for the jury to say whether, from these facts, negligence ought to be inferred. Such I understand to be the law. Randall v. Baltimore & O. R. Co. 109 U. S. 482: s. c. 3 Sup. Ct. Rep. 322; Pleasants v. Fant 22 Wall. 122; Metropolitan Ry. Co. v. Jackson L. R. 3 App. Cas. 197; Wittkowsky v. Wasson 71 N.C. 454; Hyatt v. Johnston 91 Penn. St. 200.
In determining the question whether the case should or should not be submitted to the jury, the court cannot pass upon the credibility of the witnesses, or that of the other testimony in the case, but must assume the plaintiff’s testimony to be true. If the court is satisfied that gross injustice has been done the defendant by a mistake of the jury, after proper instructions as to their duty in weighing and scrutinizing the testimony have been given, an opportunity should be afforded to make the correction by the circuit judge granting a new trial. I quite agree with the learned counsel for the defendant that in a case like this a witness, or any number of them, who simply testify that they did not hear the whistle sounded, or the bell rung, would furnish little or no evidence of the fact, unaccompanied by other circumr stances, even though it was apparent that they might have heard both, had they been listening or had their attention challenged to the fact, and that such statements hardly rise to the grade of competent testimony as against the evidence of one who swears, not only that he heard the signals, but himself gave some of them; but when a credible witness testifies that he was Within hearing distance of the signals) and states positively that the bell was not rung nor the whistle sounded, and that he saw the train and the accident when it occurred, the testimony stands on a different basis, and cannot be discarded by court or jury, but must be considered with the other evidence in the case; and the fact that such a witness testifies upon his cross-examination that he did not hear the signals is not inconsistent with his former testimony, and in no sense necessarily weakens it, unless that was all he intended by his first statement. I do not think the cases cited by defendant’s counsel go further than I have herein indicated upon this subject. Jewell v. Parr 13 C. B. 915; Seibert v. Erie Ry. Co. 49 Barb. 583; Culhane v. New York Cent. Ry. Co. 67 Barb. 562; Henze v. St. Louis &c. Ry. Co. 71 Mo. 636. The verdict is general, and, of course, against the defendant on this point, and should not be disturbed unless testimony was erroneously admitted upon which it was based.
This injury occurred at a street crossing in the evening between nine and ten o’clock. The night was quite dark, and it is undisputed that the train was running at the rate of forty miles an hour, or about three rods per second, as it approached the crossing, going into Grand Junction. The crossing also appears to have been frequented by people traveling on, foot and in vehicles by night and by day. There was also testimony in the case tending to show this to be a dangerous crossing, particularly in the night time. Emil Klanowski and Henry Yalkner gave testimony upon this point. In addition to their statements the jury took a view of the premises under circumstances Which must have aided in arriving at a correct conclusion upon this subject; and it is claimed by plaintiff that the rate of speed at which the crossing was approached and made by defendant’s train was too great — -unreasonably so — and sufficient alone to account for the injury which occurred. We have no statute limiting the speed at which trains shall be run, either at highway crossings or elsewhere ; neither has any by-law of the city of Detroit been called to our attention upon this subject, if the crossing was within the city limits, which does not appear by the record. Where there are such limitations by statute or local ordinance a rate of speed greater than that prescribed is generally regarded as gross negligence on the part of the company. Chicago &c. R. Co. v. Becker 84 Ill. 483; Massoth v. Delaware &c. Canal Co. 64 N. Y. 524, 531; Karle v. Kansas City &c. R. Co. 55 Mo. 476; St. Louis, V. & T. H. R. Co. v. Dunn 78 Ill. 197, 199. When no restriction by statute exists, an unusual rate of speed at crossings must bo held to impose upon the company increased vigilance, as well as increased liability. And when from .such cause the lives of persons or animals are endangered, and injury ensues, there can be, it seems to me, no reason why it should not be considered a want of proper care. The authorities generally hold such increased speed to be a proper subject for the consideration of the jury (Artz v. Chicago &c. R. Co. 44 Iowa 284; Black v. Burlington &c. Ry. Co. 38 Iowa 515; Indianapolis &c. R. Co. v. Stables 62 Ill. 313; Wilds v. Hudson River R. Co. 29 N. Y. 315, 327; Rockford &c. R. Co. v. Hillmer 72 Ill. 235, 240; Massoth v. Delaware &c. Canal Co. 64 N. Y. 524, 531; Warner v. New York &c. R. Co. 44 N. Y. 465); and it has been held that twenty-five or thirty miles is an unreasonable rate of speed when approaching a crossing. Reeves v. Delaware &c. R. Co. 30 Penn. St. 454; Massoth v. Delaware Canal Co. 64 N. Y. 524. Each case must necessarily depend upon its own peculiar circumstances; and whether or not proper care was made to appear in this particular was a question of fact for the jury, under proper instructions from the court.
I think the record shows a case of unusual speed and want of proper care under all circumstances; a half second less speed would, in all probability, have saved one life and injury to another, the extent of which time alone can determine. The evidence of the engineer shows that the speed was so great as to Tender the brakes comparatively useless for the purpose of preventing accident upon the crossing. The loss of life is becoming fearful in this class of cases, to say nothing of the amount of maiming and damage to property ; and while courts are powerless to remedy the evil, it is their duty to see to it that such negligence as is culpable, when presented to them for adjudication, shall not be unreasonably or unlawfully excused. It is not only within the power of the company, but it is a duty they owe to the traveling public, to remedy such negligent action. If it cannot entirely prevent it, it can greatly lessen the evil; and until such power is ■exercised and duly performed, it must abide the natural consequences of such neglect Any other view would be outrageously unjust. I am not prepared to accept the intimation of the court in McKonkey v. Chicago, B. & Q. R. Co. 40 Iowa 206, that no conceivable rate of speed is per se evidence of negligence; neither my reason nor judgment approves it, and certainly all experience is the other way. Can it be doubted that every mile added to the speed of a train does increase the liability to accident; and if this be true, can it be doubted that were it increased to one hundred miles an hour it would be difficult to confine the train to the track in many places? To’expose human life to such a risk would? in my judgment, be gross negligence on the part of the company.
The case of the Grand Rapids & I. R. Co. v. Huntley 38 Mich. 540, I do not think has any application to the one we are considering. In that case the injury occurred by the breaking of an axle. It does not appear that the train was approaching a crossing or any other place of danger, or that the speed of the train had anything particularly to do with the injury complained of, or the accident that caused it; and under the facts stated in the case, I think we must all agree that it was rightly decided.
The next question to be considered, under the view I have taken of the case, is, was the deceased guilty of that degree ■of carelessness which should excuse the defendant, even though negligent in the respect claimed by plaintiff ? Defen d- ant’s counsel insists that he was, and that the undisputed5 testimony shows such to be the fact beyond a doubt. If’ counsel is correct in his view of the’subject, it was then the-duty of the court to direct a verdict for defendant. After a careful examination of all the testimony in the case bearing-upon that point, I am unable to arrive at the conclusion/ reached by the learned counsel. The deceased, with his son. Emil, started from Miller’s house to go home, the son driving-the team. They had to go twenty-six rods down the Miller-road before they came to Miller’s crossing. The defendant’s' track ran diagonally across the Miller road. The track was somewhat elevated above the Miller road, and the testimony tends to. show the view from the Miller road was much' obstructed by the company’s fence, and weeds and bushes-which had grown to a height of several feet above the fence,, and to use the language of one of the witnesses, “ It was a-mean track to crossthat there was upon the side of the track, and sixteen feet therefrom, a ditch and a narrow bridge over the same, about eight feet wide, to cross. Emil Klanowski says, in his testimony: “After leaving Miller’s house-they started to drive home; he was driving, sitting on a board across the wagon box, at the right hand of his father they drove up near the crossing, and stoppód at the telegraph pole (sixty-five feet from the track); they stopped to see the cars, and could not see them; there were too many weeds around them; they did not hear them; no whistle was blown or bell rung; it was cloudy, — not very dark, and not very light; could not see the light very well; the horses were-gentle ; drove from Miller’s house on a walk ; could not seethe track from Miller’s house, there were so many weeds on the side of the track ; they were a good deal higher than the-engine and cars; could not see anything for the weeds,- that, night; it was dark around there; could not see the track until they got there; had to go up hill to get upon the track had never been on that road before, or at Miller’s house ;• first looked for the train at the telegraph pole; stopped to-look; thought the wagon was in the middle of the road five or six feet from the telegraph pole; he looked both ways p did not hear its whistle or the bell ring, or see the train ; she did not whistle; they stopped at the pole to see if they could hear any train coming ; did not hear or see any ; had to pass over the bridge after he stopped ; after he started he was looking so that he could get over the bridge ; his attention was on his team and driving it; there were two tracks there which he had to cross ; the bridge was about six feet from the track; he did not see the train ; he looked until he got to the bridge; did not look for the train after he got onto the bridge ; they stopped at the telegraph pole ‘ a good little while could not have seen the train from the pole if there had been one, because there were such big bushes beside the fence ; you could not see the train until you got on the track; walked the horses across the bridge; drove slowly across the track; the bridge runs slanting; it is a small bridge, and not fit to go over with two horses; it is about four feet high from the ditch; that he did not look after the train after he got on the bridge, because he had to look out that he did not get into the ditch.”
This is the statement of the survivor of the catastrophe of that fatal night; and from it, it. appears that he stopped his team for some time only sixty-five feet from the track, and looked both ways and listened before he approached the crossing, but did not hear or discover the train. This is all he could be required to do under the decisions of this Court. Lake Shore & M. S. R. Co. v. Miller. 25 Mich. 290; Haas v. Grand Rapids & I. R. Co. 47 Mich. 401; Chicago & N. E. Ry. Co. v. Miller 46 Mich. 533. That he did not see or hear the train, if his statements are true, was clearly the fault of the company in allowing the view to be obstructed and not giving proper signals, and not that of the young man. I do not think any such contributory fault on the part of the plaintiff is shown as would warrant the court in directing the verdict, and the ruling of the circuit judge to that effect was entirely proper. If there was any doubt upon the question, it was the duty of the court to give the case to the jury. Teipel v. Hilsendegen 44 Mich. 461; Pierce on R. R. 314, et seq. I am aware that there was strong testimony given tend ing to show that the young man was mistaken as to tlxe amount and character of the obstructions, but that testimony cannot be considered in the discussion of the position taken by defendant’s counsel upon the point he makes.
Quite a large number of cases have been called to our attention by counsel for defendant iii his brief, upon the subject of contributory negligence where injuries have been received at highway crossings, but a careful comparison of the facts in each with those in the present case will show a material difference. Some of them, however, are quite similar in many of their features; but I'feel very certain that justice requires that omissions by the plaintiff which ai-e not the result of negligence, or which may be fairly attributable' to such fault on the part of the. defendant, in such cases should not be regarded as contributory, and so far as any of the cases hold differently I should be unwilling to agree with them. I cannot consent under any circumstances to make the negligence of the company a shield and a weapon for its defense.
Witness Warner was examined on the part of the plaintiff, and testified to the pecuniary value of the life of the deceased to his family. The testimony was objected to by counsel for defendant, who asked to have the same stricken out on the ground that it was incompetent and irrelevant, and because it was made on a basis not warranted by the- testimony in the case. I do not think the objection well founded. The testimony of the .wife furnished all the data except liaswell’s tables, which the witness used in making his computation. His testimony was a mere computation, which the jury could accept or not as they chose, according to their view of the testimony. The testimony was competent, and such as it is. usual to resort to in such cases. The defendant .could not be prejudiced by it, and no error was committed in receiving it. Chicago & N. W. Ry. v. Bayfield 37 Mich. 205.
I have now considered all the grounds relied upon for a reversal of the judgment in this case, and argued in the defendant’s brief. The discussion contained therein relating to the demerits of-the jury in our system of jurisprudence would be more properly addressed to the law-mating power, •or some branch thereof, than to this Court. We have not the privilege of mating the laws, but are charged with the duty of expounding them, and seeing to it that they are properly applied; further than this we cannot, and I thint ought not, to go.
The charge by Judge Jennison was clear, and applicable to the facts in the case. I have discovered no error therein, or in his rulings upon the trial, of which the defendant can reasonably complain, and the judgment should.be affirmed. | [
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Cooley, C. J.
This is an action of replevin for the recovery of three Adriance mowers, and a promissory note for the sum of $100, given by one McCulloch to the defendant, as administrator of James H. Place, deceased, in payment for an Adriance mower which Place had sold McCulloch. The case was tried without a jury, and the circuit judge found the facts as follows :
On the fourth day of January, 1882, the plaintiffs were engaged in the business of manufacturing mowers and reapers and dealing therein under the firm name of Adriance, Platt & Co., in the state of New York. C. H. Roy was their general agent in the State of Michigan, and as such general agent he entered into the following written contract with James H. Place, of Milford, Oakland county, Michigan :
“ Milford, Michigan, January 4, 1882.
Adriance, Platt & Co., of New York, agree to sell and to ■deliver, as they shall be ordered (unless prevented by some accident to their works or their store-house, or cause beyond their control), to J. H. Place of Milford in season for the harvest of 1882,
10 Adriance reapers, @ $85 each $ 850
10 “ mowers, size B, @ 55 “ - - - 550
— “ “ A, @ 60 “
$1400
Payment due August 1, 1882, for all machines ordered .and delivered; interest at the rate of seven per cent, per .annum from that date.
Machines to be sold for use only within the following territory, to wit, Milford and vicinity. Machines to be deliv•ered at boat or cars, Poughkeepsie, New York, and J. H. Place hereby agrees to purchase and take upon the above -terms, the number of machines herein specified, and to pay for the same one-third cash, August 1,1882; one-third notes, rpayable at bank, with interest from August 1, 1882, due January 1, 1883 ; one-third notes payable at bank, with interest from August 1, 1882, due October 1, 18S3. Ail notes to contain a property statement showing maker to be worth $2,000 over and above all liabilities. Further agrees to indorse all notes given to Adriance, Platt & Co. under this contract; also to thoroughly canvass the above-named territory, to use diligent effort to maintain the reputation and extend the sale of Adriance, Platt & Co.’s, machines, and to pay all freight or express charges on all advertising mat- ■ ter sent. Any of the above machines remaining unsold August 1, 1882, in as good condition as when received by J. H. Place, maybe returned to Adriance, Platt & Co., and deducted from above purchase. This contract to apply to-any machines furnished by Adriance, Platt & Co. for the-harvest of 1882.
All direct sale goods which are printed in heavy type in Adriance, Platt & Co.’s price-list of extra parts, they will sell to the party named in this contract at forty per cent, discount from price-list, to be settled for by cash September I, 1882. Other extra parts printed in Adriance, Platt &; Co.’s list they will consign at twenty-five per cent, discount from list prices. A full statement in detail of consigned goods remaining unsold September 1, 1882, shall be mailed to Adriance, Platt & Co. promptly by that date, with settlement for those sold. Consigned goods which are not reported as on hand before November 1,1882, shall be paid for in full, with interest from September 1, 1882. All proceeds of sale-of such machines, or parts of machines, whether in notes, cash, or accounts, shall be the property of Adriance, Platt & Co., held in trust in the hands of J. EL Place until he shall have fully paid his indebtedness under this contract. Adriance, Platt & Co. have the right to cancel this agreement at any time when they shall become dissatisfied with J. H. Place, and to take possession of any machines or parts of machines remaining unsold.
[Signed] Adriance, Platt & Co.
Per C. EL Rot.
J. H. Place.”
On the back of the contract was the following indorsement :
“ Adriance, Platt & Co. further agree, as a part of the within contract, to allow at settlement freight paid in excess of two dollars on each mower, and three dollars on each reaper, sold and settled for.”
The machines mentioned in plaintiffs’ declaration were machines furnished by plaintiffs to said Place, together with other machines under said contract, and Place paid the freight on them; afterwards Place sold and delivered most of said machines to farmers living in Oakland county, in the vicinity of Milford, upon orders in which appears -the word u Agent ” after the name of J. H. Place, blanks for such orders being furnished by Adriance, Platt & Co. In August, 1882, Place died, and the defendant, James Rutherford, in the month of November, 1882, was appointed general administrator of the estate of Place, and as such took possession of the machines mentioned in plaintiffs’ declaration, and took the note in question in settlement for one of the machines delivered to Place under the contract and by him sold.
Before the commencement of suit, a demand was made on defendant by plaintiffs’ agent for the machines and note in question, but defendant refused to surrender them. Prior to the death of Place, the plaintiffs had never expressed themselves as dissatisfied with him. Accompanying each order for the sale of machines by Place was a copy of manufacturers’ warranty.
Upon these facts the judge ordered judgment for defendant.
The contract in question is very unusual, and very peculiar in some of its terms. It purports to be one of sale, and one-third of the purchase price of the goods is to be paid in cash, August 1, 1882 ; anotlier.third in notes due January 1, 1883 ; and the remainder in notes due October 1, 1883. At what time the notes are to be delivered to the vendors is not stated. The notes are to contain a “property statement,” and are to be indorsed by Place. The goods not sold by August 1, 1882, Place has the option of returning. A statement of goods unsold September 1,1882, is to be mailed to the plaintiffs promptly by that date, with settlement for those •sold; and consigned goods not reported as on hand before November 1, 1882, are to be paid for in full, with interest from September 1, 1882. Then follows the clause that all ■proceeds of sales, whether in notes, cash, or accounts, are to be the property of the plaintiffs, and held in trust for them by Place until he shall have fully paid his indebtedness under the contract.
It is difficult to reconcile the several parts of this contract with each other. Some of them seem very plainly to contemplate a sale, others an agency. The stipulations regarding payment are obscure, indefinite, and conflicting. It seems probable that the contract was drawn by some one who had little or no knowledge of the effect of legal terms, and who, if he had any clear idea of what he proposed to accomplish, has failed to express it so that it may be clearly perceived by others.
It seems probable, also, that the parties contemplated that payment for machines received and sold would be made principally in notes taken from the purchasers. But Place was under no restrictions as regards the sales to be made by him, and might make his own terms. He could, however, turn over to the plaintiffs no notes which did not contain the “property statement,” or which were not payable at the times specified in the contract, or which he did not himself indorse. The unrestricted authority which he unquestionably possessed as regards the terms of sales to be made by himself very strongly tends to give the contract character as one of sale. The stipulation that the proceeds of sales, whether in notes, cash or accounts, shall be the property of the plaintiffs, and held in trust for them, can scarcely be said to militate against this view, for plaintiffs do not in any event agree to take accounts in payment, or notes which were not such as the contract describes. When, therefore, the contract provides that the proceeds of sales made by Place shall be the property of the plaintiffs, it seems plain that what is contemplated is that they shall be theirs by way of security merely ; that they shall have a lien upon them until full payment is made. Whether a lien could be created in that way, when the debtor himself was to be the custodian of the property and hold it in trust for the creditor, we need not inquire. It is enough for the purposes of this case that the action is a possessory action, and that the contract does not give to the plaintiffs, or purport to give to them, a right to the possession of the proceeds of sales. Place agreed to hold them in trust, and they did not require him to do more. As to the note, then, the action must fail.
As to the machines I think the case is different. The contract of the plaintiffs with Place was to some extent unquestionably a contract of agency. Place undertook to canvass thoroughly certain territory for the sale of their machines, and all which they had sent him and which remained unsold August 1,1882, he had the privilege of returning. The sale,, then, as to such machines, was a sale only at his option. It was then provided that plaintiffs had the right to cancel the-agreement at any time when they should become dissatisfied with Place, and to take possession of the unsold machines. The sales, therefore, as to any machines not sold by Place, were-subject to cancelment by plaintiffs at any time.
The dissatisfaction with Place, which the contract contemplates as possible, is evidently a dissatisfaction with him-in acting for them, and pushing the salé of their machines.. The purpose of this provision of the contract was to make sure that diligence and vigor should be displayed by Place-in canvassing the territory assigned to him. It is found by the judge that no dissatisfaction was expressed while Place was living; and it seems to be assumed that by his death plaintiffs have lost the benefit of this provision. If the purpose had been merely to secure his own personal good behavior, there would be some ground for this view; but if the purpose was, as we think, to make sure that plaintiffs-should have the benefit of his faithful services, then his death is quite as good ground for their exercise of the option to-revoke the sales as any inefficiency or misconduct on his part could possibly be. What they were to be satisfied or dissatisfied with was his conduct as their agent in pushing sales: and when his death terminated the agency, there was nothing to be satisfied with. If, under such circumstances, they may not rescind the sale, then the death of Place has taken from them a valuable right under the contract, and given to his estate a valuable right which he himself could not have •■claimed. But a contract ought not to be so construed as to •produce this consequence, especially when it is plain that the intent of the parties will be thereby defeated. These plaintiffs provided for the contingency of their becoming dissatisfied with Place as their agent; and the impossibility of his longer acting for them furnishes the best possible ground for dissatisfaction. The death, in fact, puts an end to the agency.
As to the machines, then, I think the plaintiffs entitled to •recover. It is urged for the defense'that the judge does not find that the machines were not paid for. But the record gives no indication that any such point was made in the court below, and it fails to show that the circumstances were such as to entitle the plaintiff to demand payment. The machines remained on hand unsold, and we cannot assume that Place charged himself with responsibility for immediate payment by failing to make report of them as on hand.
The judgment should be reversed as to the machines and •judgment entered for the plaintiffs in this Court for nominal •damages and costs.
The other Justices concurred. | [
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SheRwood J.
This case is well presented in the statement thereof made by Judge Hooker, contained in the record, and before whom it was heard in the Eaton circuit in July, 1884, and which is as follows: The controversy in this case arises over a parcel of land which, in the original United States survey notes, is marked swamp land, lying in the county of Eaton. Subsequent to the Act of 1850, granting all swamp lands to the State, viz., in the year 1852, Horatio I. Lawrance entered the land at Ionia, receiving the usual certificate issued upon a cash entry. In 1854 the department canceled the sale, receiving back the certificate and refunding to Lawrance his money. In 1856 these lands were included in a list selected and reported to the State as swamp lands. In 1861 Lawrance applied to the Commissioner of the State Land Office to purchase from the State this parcel of land, claiming his right to purchase by reason of his attempted purchase at Ionia. He" was unsuccessful in this, it being stated upon the trial that no patent had issued to the State for the land. Subsequently, to wit, August 13, 18S3, Lawrance procured a patent from the Federal government on the strength of equities arising from his location in 1852. November 20, 1883, Lawrance conveyed the premises to Ely for a 'valuable consideration. Ely commenced ejectment against the complainant, Ives, whereupon this suit was instituted to stay the ejectment suit and quiet the title.
Complainant’s claim to the premises is based upon the following facts, viz.: Prior to the year 1873 he resided on premises belonging to his wife, adjoining or near the premises in controversy. In■the early spring of that.year he .entered upon the land and began clearing, and some time in June went to the land-office and attempted to make proof that he had made the necessary improvements, and taken the required steps to take up the land as a homestead under the Federal homestead law. As a matter of fact he had done some clearing, and had partially erected what one of his witnesses describes as a pig-pen or hen-coop, which was never finished, upon the land, but had not moved upon or in any way lived upon it, although the affidavit filed asserts something of the kind. There is no proof in the case to' show whether the land was taken under the honest belief that it was subject to location. And when, within sixtj^ days after his alleged entry upon the land, he was informed that it was not subject to entry, be persisted in his claim, keeping possession through his tenants, who took possession of a schoolhouse, erected by his consent for temporary use in the fall of 1873. This possession has been continuous ever since. No improvements except clearing have been made, and the proof indicates that the timber has been stripped from the place, and that were it to-day in the condition in which he found it, it would be worth all that it now is. The complainant, in August, 1873, being a short time after his visit to the Ionia land-office, filed with the State Land Commissioner his claim for relief under the Act of Legislature of 1867, being How. Stat. § 5387. The State issued no patent to either him or Lawrance. He had possession of the premises.
The defendant Ely claims that while it is true the complainant has possession of the premises, such possession is not only based upon his own wrong, but was never acquired in such way as to entitle him to the relief afforded in such cases by the Act of 1867 referred to ; that complainant never took the land under an honest belief that it was subject to his location ; that the complainant’s entry was a piece of sharp practice to enable him to obtain priority of right to a deed from the State under How. Stat. § 5386, (see margin); that hdwever this may be, his entry was a fraud upon the government, and an attempt to prostitute the Homestead Act to the purpose of acquiring title to a parcel of land without paying for it, or performing the conditions required by law. The defendant also denies that Edward A. Ives did any act whereby he has acquired any right upon the lands in question as against the State of Michigan, the United States, or as against the defendant, and avers that neither the complainant nor any of his family have ever lived upon the-premises, or paid any taxes thereon, or done any other act whereby they should have or have any equitable claim upon the land, and that he never in good faith attempted to obtain* a legal title to the same, either by prescription or in any other manner. Proofs were taken by both parties, and on-hearing complainant’s bill was dismissed, and he now asks a. review of the case in this Court.
The record shows Lawrance desired to enter the land in question long before the grant of swamp lands was designated and perfected in the State, and actually made the-entry at the government ’office in Ionia, paid his money therefor, and received his certificate of entry as early as 1852-The land, however, tvas withdrawn from entry at the general office. It was withheld for a long time, and suffered to go to the State under the swamp-land grant, and with thia understanding the certificate of sale to defendant was canceled by the department, and his money returned to him-These intervening sales between the time of the passage of the Act, and before the land was selected and approved to-the State, were many of them canceled under the decision of the department, and money refunded. This cancellation seems to have been without notice to the defendant, and not satisfactory to him as well as to many others, and the right, to make such cancellation ex parte was seriously doubted. Merrill v. Hartwell 11 Mich. 200; Johnson v. Ballou 28 Mich. 380; Stark v. Starrs 6 Wall. 418; Shepley v. Cowan 91 U. S. 337; Carroll v. Safford 3 How. 441-461. Congress, however, for the purpose of settling the question, and •doing justice to purchasers, on the second of March, 1855, passed “An act for the relief of purchasers and locators of swamp and overflowed lands,” in which it is enacted “ That ■the President of the United States cause patents to be issued .as soon as practicable to the purchaser or purchasers, locator ■or locators, who have made entries of the public lands claimed as swamp lands, either with cash or with land-warrants, or with scrip, prior to the issue of patents to the State or ■ States,” etc.; and to make secure that the Act shall be made '■to apply to all cases, the following claim is added: Any •decision of the Secretary of the Interior or other officers of the government of the United States to the contrary not•withstanding. 1 Lest. Land Laws 248: 10 Stat. at L. 634.
Previous to this, however, the State of Michigan showed itself equally anxious to protect these intermediate purchasers. In 1853 the Legislature passed an act authorizing the State Treasurer to receive from the general government the pro•ceeds of swamp-land sales, thereby consenting to sales, or, ¡rather, confirming such sales as might, for any reason, have been made by the United States. How. Stat. §§ 5384, 5385. After the passage of this act, and in the month of October, Í853, the Commissioner of the General Land Office at Washington prepared lists of the lands transferred, or to be transferred, to the State under the grant according to its terms, .and made his certificate thereto as follows: “The lands •embraced in the following lists are hereby approved to the State of Michigan, under the Act of Congress approved September 28, 1850, subject to any valid legal claim that may exist thereto.” The act of 1853 continuing in force as the expression of the Legislature of Michigan that-the rights of intermediate purchasers from the United States should be respected, and that the State should have recourse to the United States for any indemnity which might be proper, and the Act of Congress above referred to, substantially in letter and spirit, according to the expressed will and desire of the State in tbe premises and the several other acts relating to these lands and the rights of these intermediate purchasers, passed by the State and general government, — as is well said by Mr. Justice Graves in Dale v. Turner 34 Mich. 405, a case quite similar to this in many respects — “constituted an arrangement in the nature of a compact or special bargain that such sales” (as were made in this case to Lawrance) “should not be invalidated by the operation of the Swamp Land act, but should be left to be carried out by the United States as though such act were not applicable, and that the State should look to the United States for indemnity for parcels of swamp lands thus disposed of.” Substantially the State waived its claims to these lands as against intervening purchasers from the United States by the Act of 1853.
The defendant took at least an equitable title to the land in question under his entry in 1852. Aldrich v. Aldrich 37 Ill. 32; Brill v. Stiles 35 Ill. 305; 3 Washb. Real Prop. (4th ed.) 194. That title the Commissioner of the General Land Office sought to invalidate without Lawrance’s consent, or any legal proceedings had for that purpose, which could not be properly done. See authorities cited, and other cases referred to; Busch v. Donohue 31 Mich. 481. The surrender of his certificate, when it was demanded by the government through one of its officers, was only the act of a good citizen, and the government would never consent to the act being set up as estoppel in a court of equity; and what the government cpuld not do, will certainly not be- allowed to be done by one claiming rights to the land thereunder as against the defendant. The general government, however, in this instance, appears to have corrected, although at a late day, the mistake of its commissioner and agents, and gives to Mr. Lawi’ance his patent, and he has restored the consideration therefor. This patent only evidences the equitable title of Lawrance confirmed by the Act of Congress of 1855; and the equitable title of a locator of land, confirmed by the Act of Congress, is the highest evidence of title, until it-has been otherwise adjudicated by the court of last resort.
It is this sale, thus confirmed, that tbe complainant asks to have set aside, and places his right to such relief upon the fact that in 1873 he made an unsuccessful attempt to secure the land under the pre-emption laws of the United States, and then filed his claims in the State Land Office under the Act of the Legislature of 1867 for the relief of settlers on swamp land. How. Stat. § 5387. But, under the view we have taken of the ease upon the record presented, it is un-, necessary to consider the regularity of the proceedings, as the entry of Lawrance, and the action taken by Congress and the State Legislature long before the complainant attempted location, vested in the defendant the right to the‘property.
The judgment at the circuit must be affirmed.
Cooley, C. J. and CaMpbell, J. concurred.
§ 5386. The People of the State of Michigan enact, That in all cases where lands have been purchased as government lands at any of the United States land-offices within the State of Michigan, and such purchase has afterwards been set aside and canceled, in consequence of the lands so purchased having been found to be swamp lands, the purchaser, his heirs or assigns, may at any time before such lands are offered for sale by the State, or before said lands are sold to any other person, on presentation of a certificate of such purchase-and cancellation from the register of the land-office where such purchase was originally made, to the commissioner of the State Land Office, be entitled to purchase such lands of the State at the price of one dollar and twenty-five cents per acre, subject to the condition that such purchaser or purchasers shall not have any'claim against the State for draining such land ; and such land purchased of the United States shall not be offered for sale by the State-until the expiration of two years from the passage of this act ; and all persons who have in good faith, at any time since the twenty-eighth of' September, eighteen hundred and fifty, settled upon and made valuable improvements on any oftthe swamp lands, with the intention of securing-the same under the pre-emption laws of the United States, and shall file-with the Commissioner of the State Land Office sufficient evidence of said settlement or improvement, and intention, prior to their being offered for sale, such person, his heirs or assigns, shall also he entitled to purchase such land at one dollar and twenty-five cents per acre: Provided, That nothing in.this act shall be construed to affect the legal rights o£ any suit or claims now pending, either in law or equity. | [
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Cooley, C. J.
This is an action for assault and battery. The defendant was engineer of the Brush Electric Light Company, of Detroit, and the plaintiff was “ oiler, laborer, and helper ” under him. The plaintiff’s case was, that having, in the afternoon of the day of the occurrence, lighted the fires under the boilers, as was his duty, the defendant came in, went to the top of the boilers upon the ladder, and finding the pressure of steam excessive, flew into a passion, and called the plaintiff vile names, and when plaintiff remonstrated, rushed down the ladder and struck him over the head with a club.
When the case was called for trial, the defendant objected to any evidence being given, assigning for reason that the declaration was defective. No defect was pointed out that was not amendable, if, indeed, it was a defect at all. The court allowed an amendment, and the case proceeded against the objection of the defendant.
We cannot sanction the practice of pleading to the merits, and then raising at the trial an objection in the nature of a demurrer. It is every way an inconvenient practice, and it tends to make litigation unnecessarily expensive. If a declaration fails altogether to set out a substantial cause of action, and is incapable of being made good by amendment, the objection may be taken in any stage of the proceedings; but even then, for very obvious reasons of convenience, the questions of sufficiency ought to be disposed of before parties are put to the expense of preparation for trial. Bntfif the objections to the declaration are not necessarily fatal, the défendant has no claim to the indulgence of a hearing upon them at the trial. This we have decided in previous cases. Norton v. Colgrove 41 Mich. 544; Barton v. Gray 48 Mich. 164. Analogous cases are Lamb v. Jeffrey 41 Mich. 719; Burke v. Wilber 42 Mich. 327.
The defense sought to be made in this case was that the plaintiff had assumed to start the fire under the boilers prematurely, and had got up steam to an amount that threatened a dangerous and very destructive explosion ; that defendant was greatly alarmed and excited when he discovered what had been done, and it was under the influence of his excitement and indignation at the plaintiff’s insubordination and exhibition of incompetency that the blow was struck.
The defendant complains of an unfair trial, and points to a great many little things occurring on the trial as supporting the complaint. We discover in the record no evidence which shows partiality on the part of the trial judge, but we are of opinion that the judge, all through the trial, restricted the defendant in showing his excuse for the assault within too narrow limits. The assault was apparently an aggravated one, on the plaintiff’s showing, but if the facts were as defendant claimed, his excuse was such as would naturally mitigate the apparent wrong very greatly in the minds of others. It was a very proper case for allowing a very liberal range in the examination of -witnesses to bring out the facts of excuse ; but it is evident from the record that the opposite rule was applied, and the defendant was held to such strict rules that the jury must have failed to understand and appreciate the real facts. We do not deem it necessary to go through this record to point out evidences of this; but we may mention for a single instance the practical restriction of the cross-examination of the plaintiff, when he was certainly not being pressed unreasonably; the court intimating in pointed language that the counsel was wasting time in his questions. The court did not absolutely refuse to permit the examination to go on, but what he said was calculated to neutralize its benefits.
A new trial must be ordered.
The other Justices concurred. | [
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Cooley, C. J.
The defendant Moyer was arrested on a ■capias, and gave bond to the sheriff. Having failed to per feet special bail, suit was brought on that bond. The affidavit on which Moyer was held to bail was as follows:
“ State of Michigan, Wexford County — ss.: Robert J. •Cummer, of said county, being duly sworn, deposes and says that he is the agent of Abbie A. Cummer, and that he makes this affidavit in her behalf, and that he is personally acquainted with, and cognizant of, the facts stated and set forth in this affidavit, and makes the same of his own knowledge. Deponent further says that Andrew K. Moyer was, on- or-about the sixth day of February, A. D. 1882, in the quiet and peaceable possession of certain lands and tenements situate in the city of Cadillac, in said county of Wexford, and described as lot number seven (7) of block number seven (7)-of said city, excepting 32 feet off the south end of said lot; that said Andrew K. Moyer held said premises by virtue of a lease from the firm of McG-raft & Montgomery, former-owners of said premises, which lease was dated November 6,. 1880, and was for the term of one year, with rent payable thereon the sixth of each and every month, and that said Moyer continued in possession of said premises after, the-expiration of said lease; that on or about February 6, 1882, the said Abbie A. Cummer purchased the said premises from McGraft & Montgomery, and that on or about February 5, 1882, this deponent had a conversation with said Moyer in regard to the length of time he (Moyer) expected to require said premises, and that said Moyer then stated that he wanted to remain until March 15th then ensuing, andan arrangement was then rpade between deponent and said Moyer for said premises to be held by Moyer until the said fifteenth of March, 1882 ; that on or about the fifth of March, 1882, the-said Moyer came to deponent’s store and wanted to make a further arrangement, and stated that his business would detain him longer than he expected, and he (said Mojmr) wanted the privilege of remaining until April 6th then following, which arrangement was agreed to by deponent; that on the-fifth or sixth of April, 1882, a further arrangement was made between said Moyer and deponent, whereby said Moyer was to remain in said premises until the sixth day of May, 1882, and that said Moyer then and there agreed with deponent to-‘get out ’ on the sixth of May; that said Moyer at that time wanted to rent the premises for a longer time, but that deponent then and there refused to let said Moyer have the premises for any longer time, and told said Moyer that he must ‘ get out ’ by the sixth of May. Deponent further says that in all the said transactions deponent acted as the-agent of said Abbie A. Cummer, and that all the arrangements made between her and said Moyer were made through deponent as such agent, and that said Moyer was cognizant of such agency. Deponent further saith that said Moyer did not vacate said premises on the sixth day of May, and refused to vacate the same at all times after said sixth day of May, and that said Abbie A. Cummer has not, since said sixth day of May, accepted any rent for the said premises, or- in any manner recognized said Moyer as her tenant. Deponent further saith that said Abbie A. Cummer, after the said sixth day of May, 1882, commenced an action before Samuel F. Long, a justice of the peace for the city of Cadillac, for the recovery of possession of said premises, which said action was appealed to the circuit court for said county, and that, on the trial of said appeal, and on the sixteenth day of January, A. D. 1883, the said Abbie A. Cummer recovered a judgment, then and there rendered and entered in said court, for the possession of said premises, and for the restitution thereof, as more fully appears by the records of said court. And deponent further saith that said Moyer remained in possession of said premises continuously from the said sixth day of May, 1882, until on or about the twentieth day of February, 1883. Deponent further saith that he verily believes that upon the aforesaid facts the said Abbie A. Cummer has a good cause of action against the said Andrew K. Moyer in an action of trespass on the case; and that said Abbie A. Cummer claims damages in the sum of one thousand dollars.
R. J. Cummer.
Subscribed and sworn to before me this thirtieth day of March, A. D. 1883.
Charles W. Higgins,
Notary Public, Wexford County, Michigan.”
The declaration in the principal suit followed closely this affidavit in its allegations of a cause of action, and claimed damages as follows:
“ By reason whereof the aforesaid, the said plaintiff, was fraudulently, wrongfully and injuriously deprived of the use, occupation and enjoyment of her said lands and tenements, and also by means of the said premises she, the said plaintiff, was forced to and did necessarily pay and expend divers sums of money, in the whole amounting to a large sum of money, to wit: five hundred dollars, for cost, expenses, and counsel fees in enforcing her right to said lands and tenements, and in prosecuting and defending divers suits and proceedings at law arising therefrom, and for aid and assistance necessarily employed in obtaining possession of said lands and tenements, and also by means of the said premises she, the said plaintiff, suffered great damage, to wit: five hundred dollars, in being obliged to occupy an uncomfortable and insufficient dwelling-house, and in delay in. obtaining possession of said premises in order to repair and improve the same ready for her own use and occupation, and also in being harassed, troubled and mentally distressed by the aforesaid wrongful and willful deprivation of her said property, and was and is greatly injured by the committing of the aforesaid grievances. Whereby the said defendant hath, by force of the statute in such case made and provided, — viz., sec. twenty-four of chapter two hundred and eleven of the Compiled Laws of 1871, — forfeited treble damages to the said plaintiff, and other wrongs then and there did, all of which the aforesaid is of great damage to the said plaintiff, to wit: one thousand dollars ; and therefore she brings suit,” etc.
The plaintiff recovered four hundred dollars in the principal suit, which was trebled by the court under the statute.
In the trial on the bail-bond the defendant took the ground that by her declaration in the principal suit the plaintiff had substantially made a new and different case from that set out in the affidavit, there being in , the affidavit no allegations whatever of special damages. The circuit judge sustained this position, and held the plaintiff not entitled to recover.
This was error. There was no departure in the declaration from the cause of action upon which Moyer had been arrested. It was not necessary to particularize the damages in the affidavit for arrest; it was sufficient to show the facts constituting the cause of action. It is not claimed that the affidavit was defective in this showing; its defects, if any, are to be found in its failure to specify the particulars of damage, and to refer to the statute under which the plaintiff was entitled to have the actual damages trebled. But it is neither necessary nor customary to give these particulars in an affidavit for arrest. The defendant and his bail are supposed to understand that when declaration is filed, the plaintiff will claim the recovery she is entitled to on the facts set out in the affidavit.
The judgment must be reversed and a new trial ordered.
The other Justices concurred. | [
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Sherwood, J.
The bill of complaint in this cause was filed to foreclose a mortgage given by the defendant John E. Prentis to the complainant to secure the payment of a bond given by both of said defendants for the sum of $14,000, in three equal annual installments, with interest at six percent., payable semi-annually from November 1,1882; both bond and mortgage bearing same date. Subpcena was duly issued and personal service thereof obtained upon both defendants as follows, viz. :
“We, the defendants named in the annexed writ of subpoena, do hereby accept due and personal service of the same, which wi’it is teste’d the thirteenth day of November, 1883, and subscribed by Wm. J. Gray, solicitor, with the seal of the court impressed thereon, together with the underwriting at the foot thereof. John F. Prentis.
Geo. H. Prentis.
Detroit, November 15, 1883.”
“State oe Michigan, County oe Wayne, ss.: — Circuit Court for the County of Mackinac — In Chancery, ss.
John N. Macomb v. John F. Prentis and George H. Prentis.
County of Wayne, ss.: Win. J. Gray, of said county, being duly sworn, deposes and says, that he is well acquainted with the handwriting of defendant George H. Prentis, and knows that the above signature to acceptance of service of George H. Prentis, to be said defendant’s own signature; that he has seen said defendant’s (John P. Prentis’) handwriting, and believes that the foregoing signature to acceptance of service to be said John P. Prentis’ own signature; that said signature was obtained by agreement with his brother Browse T. Prentis, who handed the same to deponent, as the written acceptance of said John P. Prentis, and that a substantial consideration was given for said signature.
William J. ■ Gray.
Subscribed and sworn to before me, May 14, 1884.
Chas. T. Wilkins,
Notary Public, Wayne county, Michigan.”
Neither of the defendants appeared, and the bill was taken as confessed against them.
The mortgaged property consisted of about 5000 acres lying in the counties of Chippewa and Mackinac, with a sawmill thereon, chiefly valuable for lumbering purposes, and the petition states that the whole premises have been used for lumbering operations as one tract. The case was referred to a circuit court commissioner to take the usual proofs in such cases, who made a report to the court. At the time of hearing, the complainant filed a sworn petition, asking that the mortgaged premises be all sold together, and giving reasons therefor. Defendant George H. Prentis made answer to the petition, giving reasons why the sale should be made in parcels. It does not appear whether any other testimony was taken or evidence given on the question presented in the petition. No other appears upon the record. The usual de. cree of foreclosure and sale was entered, requiring that, in default of payment, all the mortgaged premises should be sold, which was subsequently done. The defendant John F. Prentis appeals to this Court, and insists that the court had no jurisdiction to make the decree of sale, for want of proper service of the subpoena upon him ; and if this shall be held otherwise, then that the decree is fatally defective in not requiring the land to be sold in parcels.
The record shows that there was testimony by affidavit of Mr. Gray offered to prove the admission of service of the subpoena by the appellant and his signature to the admission filed. This was, of course, passed upon by the circuit judge when the decree was made. Neither at the circuit, nor on appeal to this Court, has the appellant or the other defendant questioned or denied appellant’s signature to the admission of service ; but for the first time, and on the first occasion, is the question raised in the brief of counsel for appellant on the hearing in this Court. Upon the record as now presented, under all the circumstances, we must hold the evidence prima facie sufficient.
It is undoubtedly true that the policy of our statutes is that forced sales of land under execution, and statutory sales, and perhaps in all cases where time is given for redemption, the sale should be made in parcels. How. Stat.** §§ 8503, •6116. And in very many cases it would be highly proper to do so on foreclosure sales in equity; but in the latter case it is left to the discretion of the court to direct what course shall be pursued upon this subject. In statutory foreclosures the requirement is express, but in foreclosures in equity the statute is silent; there is no redemption in the latter case. Equity always directs sales in such manner and quantities as will secure the highest price.
In Clark v. Stilson 36 Mich. 482, Chief Justice Cooley says: “ The requirement that the sale shall be made in parcels 'is in the interest of the party or parties entitled to redeem, and to protect their right to redeem each parcel separately.” The circuit judge after hearing the case passed upon the question on that subject, and ordered the property all sold ; and from what appears upon the record we are unable to discover any abuse of the discretion used.
We have no occasion to consider the rights of persons who are not made parties to the suit, and therefore forbear any dis cussiofi of the last point made by defendant that there was a subsequent purchaser, who has interests affected by the decree complained of. None of these are before us or complaining so far as appears from, the record.
The decree must be affirmed with costs.
The other Justices concurred. | [
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Champlin, J.
The plaintiffs were mortgagees of a half interest in 45 acres of wheat on the ground in the fall of 1882, to secure the payment of $200 owing to them by one Norman Hayes, who was not the owner of the other half interest; which debt became due and payable on or before October 12, 1883. Defendant subsequently became a judgment creditor of Hayes for $125 and costs, and levied an execution upon his undivided half interest in the wheat, whereupon Hayes notified plaintiffs that he did not intend to harvest the wheat; and they, to protect their mortgage interest, went on and cut it, stacked a part of it, and were about to thresh it, when defendant sent the constable making the levy, Rush Barney, as his agent, to plaintiffs, to redeem from their mortgage. At this interview the amount of principal and interest due to the plaintiffs upon the mort gage being ascertained, a tender thereof was made', when plaintiffs claimed the further sum for expenses in cutting and stacking the wheat, and, as they say, it was promised to be paid them by defendant’s agent upon their accepting the amount tendered and assigning the mortgage as they were bound to do. Possession of the property was' taken by defendant, the wheat threshed, the half of the wheat, 374 bushels, drawn away and stored in his name, and sold on the execution, and afterwards sold by him under the mortgage, retaining all the proceeds thereof. A few days after the transfer of the mortgage plaintiffs demanded their pay for harvesting the wheat, and the bills of the men employed in doing it were presented, defendant referring them all to Barney to settle therefor. Plaintiffs, failing to get any satisfactory adjustment, brought suit, and maintained it in justice’s court and on appeal in the circuit.
The principal contest on the trial in the court below was as to the extent of the authority of Mr. Barney, who wras the constable holding the levy, and whom defendant employed to make a tender of the amount due upon the mortgage. The defendant claims that he, as execution creditor, holding a levy upon the growing crop covered by the chattel mortgage of plaintiffs, was, on redeeming therefrom, only obliged to pay the principal and interest due thereon.
This claim would be correct, if nothing had been done by the mortgagee towards the foreclosing of his mortgage, or if he had incurred no expense in enforcing his security. It is evident, however, that the levy of the execution creditor covers only the mortgagor’s equity of redemption, and, in redeeming, the execution creditor is bound to pay what the mortgagor would be required to do to accomplish the same purpose. And when the mortgagee has incurred expense in taking possession of the property for the purpose of foreclosing, the mortgagor, when he comes to redeem, will be required to pay such expenses.
In the present case the mortgagor could not have redeemed at the point of time the defendant attempted to, without paying to the plaintiffs the expense which they had necessarily incurred in harvesting the crop. A tender of any less amount would have been ineffectual to discharge the lien. The defendant was required to tender the same amount to entitle him to be subrogated to plaintiff’s rights, and to an assignment of the mortgage. Upon tendering a sufficient amount the defendant was entitled to an assignment of the mortgage from the plaintiffs. Lucking v. Wesson 25 Mich. 443.
The object the defendant had in view in making the tender was to obtain the right to be subrogated to the mortgagee’s rights, and consequently to an assignment, either in law or in fact, of the mortgage, and in employing Barney to make the tender, he, in effect, authorized him to do all that was necessary to be done to accomplish that purpose. Barney, as the jury must have found under the instruction of ■the court, agreed with the plaintiffs to pay them the amount of the principal and interest due upon their mortgage, and to pay them the expense of harvesting the grain. This agreement was directly within the scope of his employment, and, without doing which, no valid redemption could have been made. Upon the strength of this agreement the plaintiffs executed the assignment, and defendant took possession of the assigned property. ' He refuses to pay the expenses of harvesting. He was legally bound to do this in order to redeem. He promised, through his agent, to do so, .•and there is nothing in the record before us which shows •that any other result ought to have been reached than was by the verdict; and the judgment should be affirmed.
There were errors in the reception of testimony, such as proving the admissions of the agent after his agency had terminated, and also the authority of the agent by his own •oath ; but as the agency was abundantly proved for the purpose above stated, and, in the view we have taken of the case, the errors did not injure the defendant,
The judgment will not be reversed for such errors.
Sherwood and Campbell, JJ. concurred. Cooley, C. J. •did not sit. | [
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Champlin, J.
The plaintiff declared upon the common counts in assumpsit, and filed therewith his bill of particulars covering various items from August 29,1881, to December 19, 1881, the most of which were for groceries and supplies used in running 'logging camps. Some of the items purport to be for goods furnished other parties, and some of the largest items are for money paid parties named for work. The defense was the general issue. The goods mentioned in the bill of particulars were by the plaintiff sold and delivered to one Charles E. Gregory, and were charged to him by the plaintiff upon his books of account at the times mentioned in the bill. The account not being paid by Gregory, the plaintiff brings this suit to recover the same of defendant, upon the ground that at the time such goods were purchased by Gregory he was in fact the agent of defendant, and was authorized to make such purchases, and that as soon as he ascertained that defendant was the principal he looked to him for his pay. He also claims that defendant, with a knowledge of the facts that Gregory bought the goods as his agent, acknowledged his liability to plaintiff therefor, and promised to settle for the same.
The plaintiff’s theory was, and his evidence tended to prove, that some time in the spring of 1881, defendant and Gregory entered into an agreement whereby Gregory was to go up into Ashland, in Newaygo county, and take charge'of a logging job, which defendant had with Messrs. Wyman & Buswell, and in addition to which he was to get out hemlock bark whenever he could operate it with profit, and hunt up and purchase hemlock bark wherever he thought it could be bought at a profit, and ship all .bark to defendant at Holland. The defendant was to handle the bark and receive the money for it, and his compensation, aside from his living, was to be one-half the net profits arising from such sales. That defendant was to furnish the money as needed to carry on the business. That it was necessary, in order to carry on the business, to hire men and teams, overlook the cutting and skidding of logs, the peeling, hauling, and shipment of bark, the purchasing of supplies for the camp, the payment of men, etc. And that he purchased the supplies and made the account with plain tiff in transacting the business, in which he was engaged for the defendant.
On the part of the defendant it was contended, and his testimony tended to prove: That in 1880 he operated a tannery at Holland; that Gregory had for some years before that, from time to time, sold baric to Metz by the cord. In 1880 he was anxious to find a location where he could put in logs by the thousand, and get out bark for sale. He found some timber in ^jSTewaygo county belonging to Wyman & Buswell of Grand Haven, with whom he proposed to make a contract. They were not willing to enter into a contract with him, not regarding him responsible. He then persuaded Metz to execute the contract with Wyman & Buswell, and turn the same over to him with an agreed price for the bark; Metz, of course, remaining responsible to Wyman & Buswell. Accordingly, after the contract was executed between Wyman & Buswell and Metz, Gregory and Metz made a contract, a memorandum of which was entered in Metz’s journal, as follows, page 46: “ Charles E. Gregory agrees to deliver, on cars, from two to three thousand cords of bark every year for two years, at Ashland, or other points where freight on railroad will not be more than from Ashland, at four dollars per cord, the bark to be measured at Holland ; and agrees to take the Wyman & Buswell job at the same price Wyman & Buswell pay me, and Metz to advance money enough to build roads and get started. Gregory agrees to send itemized account of all moneys advanced.” Thereupon, in May, 1881, Gregory moved to Newaygo county, and went to work on his job, — built his camps and roads, etc. Metz advanced him large sums of money on his contract; before June 26,1881, $3140, and before January, 1882, over $12,000. In addition to the Wyman & Buswell job, Gregory put in logs under a contract with C. O. Comstock, of Grand Rapids, and had another job for C. E. Nason, of Grand Rapids, with neither of which Metz had anything to do. That Gregory’s camps, from which he operated all these jobs, were located within four or five miles from Ashland. Gregory purchased supplies for his camps from plaintiff and others. He paid up for a time, but failed to pay for the goods purchased after August, 1881, and thus failing the plaintiff sought to hold Metz for the goods. That Metz became dissatisfied with the way Gregory was conducting the business of performing the Wyman & Buswell logging job for which he was liable under his contract with them, and finally took control himself, and on June 15, 1882, Gregory quit and left the woods. Defendant also claims that there is no proof in the record, which purports to return all the testimony, that Metz ever gave Gregory authority to pledge his credit for one dollar, or that he was Metz’s agent to buy goods.
The defendant’s contention was and is that, conceding all that Gregory claimed as to the arrangement between himself and Metz, the defendant is not liable for the goods; that he knew nothing of it until after the trade was closed, and never recognized it; that not a single item in the bill of particulars was shown to have been sold and delivered, and Gregory ceased all connection with defendant and his business, June 15, 1882.
I am not prepared to say that, conceding all that Gregory claimed as to the arrangement between himself and Metz, the latter would not be liable in this action. There was other testimony in the case which tended to establish the fact of the authority of Gregory to purchase supplies to carry on operations, and that Gregory’s acts in respect to this bill of items were for the benefit of Metz, and that he had recognized his liability and promised to pay it.
There were, however, grave errors committed in the admission of testimony which make a new trial necessary. It was error to admit in evidence the certificate signed by Gregory after his agency had ceased. This certificate contained admissions and statements of fact' which it was not competent for the agent to make afíer he ceased to be agent. The certificate was as follows:
Ashland, Lake P. O., July 11, 1882.
This certifies that the bill of R. North, for three hundred and forty and 62-100 dollars ($340.62) is correct to the amount named, and is for supplies furnished as per his bill to Sandhill camp, sec. 25, town, 11, 12, said camp being run by me for George Metz, Jr, of Holland, at the time said supplies were furnished. > O. E. Gregory.”
The error is not cured by the fact that there was other evidence of the balance due, and of furnishing the supplies. There is no way of ascertaining what testimony the jury founded their verdict upon. Some may have relied upon this certificate as evidence, not only of the amount due, but that the camp was run by Gregory for Metz at the time the supplies were furnished. There is no ground for its admission under the evidence based upon the idea of a partnership existing between Gregory and Metz. It was also error to admit testimony of the dealings between Gregory and Alanson Thayer, and also between him and David Shaw. It did not tend in the remotest degree to establish the fact of agency between Metz and Gregory.
Plaintiff’s counsel was permitted to show by Thayer that he had sold Gregory goods on credit, and had requested Metz to pay the bill, and that he refused, and that it still remained unpaid; and plaintiff’s counsel was perpaitted to comment upon this testimony to the jury in a way that implied that this was a test case, which would determine the liability of Metz to pay Thayer for the goods sold by him to Gregory. The evidence and the comments, which were duly excepted to, were alike improper, and should have been excluded by the court.
It was also improper to admit testimony of Gregory’s pecuniary circumstances. It did not tend to establish the issue, and was well calculated to influence the minds of the jurymen in favor of the plaintiff.
It is unnecessary to notice the errors alleged relative to the charge and refusals to charge, nor is it necessary to pass upon the error alleged in amending the verdict, as these errors, if any exist (see Higley v. Newell 28 Iowa, 516-519; Lee v. Bradway 25 Iowa, 216, and cases cited), are not likely to arise upon a retrial of the case.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Cooley, C. J.
This action is in case for the negligent burning by defendants of certain hay belonging in part to the plaintiff.
The facts as developed on the trial are that in the season of 1882-83, the defendant Richards raised a_ crop of wheat on shares on the farm of one Sloat, with the privilege of placing the same in a certain barracks on the farm until it was threshed. In June, 1883, the plaintiff cut hay on the farm of Sloat on shares, and with the assent of Sloat it was stacked in the same barracks where the wheat was to be placed when harvested. Plaintiff knew that the wheat was to be placed there, and also that it would be threshed there.
In August, 1883, defendant Richards engaged defendant Peak to go with his steam-thresher and thresh the wheat, and he did so, placing his thresher forty feet, or thereabouts, from the hay. Sloat was there and assisted in locating the thresher, and in placing the separator so as to throw the straw where he wished it stacked. There was some evidence in the case that plaintiff was about there when this was done, but it was denied. It was shown, howevér, that during the whole of the time that the threshing was going on plaintiff was plowing in the field where the thresher stood, and not far from it; and that he made no protest, and interposed no objection to what was being done.
After the thresher started the wind began" blowing strongly, carrying the smoke from the engine directly over the hay. In the course of the forenoon the collar of a horse standing near the engine took fire, but whether from the engine was not clearly shown. The threshing was continued after this until the hay caught fire, and that, together with the wheat, was consumed.
Neither of the defendants knew that plaintiff was part owner of the hay, and it was claimed by them in this Court that they had a right to assume that Sloat, who was in possession of the farm, was sole owner. It was also claimed that they had a right to go to the jury on the question whether plaintiff was not chargeable with contributory negligence.
After the evidence was in, plaintiff requested the court to instruct the jury on the question of contributory negligence as follows :
“ Contributive negligence is where one so acts as to contribute by direct consent to or participation in the wrong complained of; and if Moomey did not consent to what was done there on the day of the fire, or did not by any act of his participate therein, then he in contemplation of the law, did not contribute to the burning complained of.”
The request was declined, and the following given instead :
“ It is claimed that the plaintiff himself is at fault somewhat. Now, it is true that where a party brings an action to recover upon the ground of negligence, even though defendants may be very negligen.fi yet, if the plaintiff himself was negligent also, and his negligence contributed in any way to the injury, he cannot recover. That is true as a matter of law. It is claimed that the plaintiff in this case is at fault also, as well as the defendant — that is, the defendant claims this — and that plaintiff can not recover for this reason. It is true that if the plaintiff was negligent in the matter as well as the defendant, and his negligence in any way contributed to the injury, then he can not recover. If he knew what they knew, and his negligence contributed to the injury, then he cannot recover even if the defendants were negligent. In other words, if the plaintiff had been present, or as young Sloat testified he was, and knew what he says he knew, — that is, took part in the transactions, was present when the machine was located, saw what was going on, knew about the fire, known that, and suffered the machine to run without protest or objection, — he could not recover, and it would be my duty here now to instruct you that you should bring in a verdict of no cause of action if that had been the situation. Cases have already been disposed of where such has been the situation, where the party himself who was having the threshing done was upon the ground, and has an opportunity to see and know what is going on, and understood the danger as well as the man who was running the machine. If, in such case, the fire takes place, he is said to be a party in fault as well as the party setting the machine. It would be his duty,' under such circumstances, if he felt there was danger that it was unsafe, to refuse to allow the work to continue, — to protest against it. If he was satisfied with it, then he could not complain if injury actually resulted. I invite your close attention because it largély depends upon what the plaintiff knew himself. If the plaintiff had known of all the elements of danger there, and made no objection, he could not recover in this case. I further charge you that if he had known of all the elements of danger that they knew of, and made no protest, he could not recover; and, under such circumstances, as a matter of law, we must say that he acquiesced in the arrangements when he understands fully just the situation as well as the defendants, and his omission to protest against it would be claimed in law as negligence. .Therefore it is for you all the while to determine what he knew. You are to settle what he knew, and then apply these principles of law. Did he know that they were threshing and using the machine ? Did he know where they were located ? You will remember the testimony about that, — whether or not he claimed to have known, or whether he didn’t, and what the other witnesses said. Did he know which way the wind was blowing % Did he know what kind of wood they were using ? I remember no evidence tending to show that he did know about the wood. If there was any, you will remember about it; it is your duty to remember it. If there was none, you will remember about that. You will consider, of course, whether the wood used increased the danger in any way. Witnesses have testified about that, one one way, and one the other; perhaps more. It is for you to determine how that is,— whether this wood was such as to increase the danger there, and whether this man knew anything about it. Matters that he did know and did not complain of, he cannot complain of now; but matters that he did not know he is not answerable for. There is nothing that tends to show that he knew anything of the wrapping around the horse’s collar taking fire, so far as I remember it. If there is anything, you will remember it, and it will be your duty to give that such weight as it is entitled to, or that he knew that the sparks were actually falling near the hay, and it will be for you to determine now whether there was any evidence at all that tends to show that sparks did fall there at any time. That is the business for you, not for the court, and whether he knew anything about it. If he didn’t know any of this class of facts, if they took place, he cannot be in fault in regard to them for not protesting to them, and forbidding them continuing the work there. If he knew the wind was high and blowing from the direction it was, and there was no other circumstance changing the case, and he made no objection, he could not now be heard to complain, but he cannot'be said to have acquiesced in what he did not know of. If; he didn’t know what the danger was, he wouldn’t, of course, be required to make a protest. It is a question for you to settle how far he knew the danger existed. He had a right if he didn’t know of special circumstances there that made it dangerous. He had a right to presume these parties would set the machine so as not to endanger the barrack of hay. If he didn’t know the location he had a right to presume this, if he didn’t know about the other circumstances that would tend to make it more dangerous; but if he knew it, it was his duty to notify them, and protest so far as that matter is concerned. If he knew the wind was blowing in that direction, and the smoke was passing over there, so far as that particular item was concerned, and he made no protest about it, then he cannot protest on that particular ground now. The mere fact that he knew that Mrs. Richards owned this wheat, and that she was going to have it threshed there, and-that they were going to use an engine, and that he knew where they designed to have the straw stacked, these matters would not prevent his recovery here. These are circum•stances to be taken into consideration with the other testimony upon the question of his knowledge as to what was going on, and how far he approved of what they were doing-The fact the defendants didn’t intend to burn the hay, or acted in good faith, will not excuse them. In this class of cases the parties who were in fault are the parties that must suffer. It is the only way we can determine the right of parties. Oftentimes injury occurs to one person by the act. of another when that party didn’t intend to do him harm,, but by doing something negligently, carelessly, causes him a. great injury. In all such cases the question is, who is at fault, and the plaintiff must be without fault as to matter that, caused the injury.”
We think the plaintiff was entitled to the instruction-which he requested, and that the error in refusing it was emphasized in the instruction actually given. We do not find in the record any evidence fairly tending to fix upon the-plaintiff the charge of contributory negligence. It does not appear that he was an expert in the matter of operating-steam machinery, or that he had any special knowledge of the dangers attending the use of machines of this character, or that he knew whether the particular machine was or was-not ordinarily safe. Machines of the kind are in common-use, and the plaintiff might reasonably infer that this would not be the case unless the use in the hands of a careful and competent person would be safe. If Peak was wanting in-either prudence or competency, the plaintiff is not shown to-have been aware of it; and if he had interfered in Peak’s business, the parties who now charge him with negligence-in failing to do so would very likely have treated his inter-meddling as an impertinence. He was certainly chargeable-with no legal fault for assuming that another, for whose conduct he was not responsible, would manage his own business-with skill and prudence, and that one who had practical acquaintance with a business would understand its dangers-better than one who was ignorant of it.
The fact that Sloat was joint owner with plaintiff of the Lay had no bearing on plaintiff’s right to a recovery. Neither was it important that defendants were not aware of plaintiff’s interest. The hay was rightfully where it was; it was the-duty of every one, whether knowing of the ownership or not,, to avoid negligent injury to it. The plaintiff was under no obligation to any one to give notice of his interest, and could not therefore lose rights by a failure to do so.
Whether Peak, under' the circumstances, was to be considered the servant, of Mrs. Richards, so as to make her responsible for his negligence, is a question not made on the argument, and therefore not considered.
A new trial must be ordered.
The other Justices concurred. | [
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Campbell, J.
This is an action of trover to recover for the alleged levy on exempt property. The case was here before, as reported in 53 Mich. 453. There several of the questions raised here were disposed of. It was held there that the execution under which defendants levied was a valid one. It was also held that if plaintiff repudiated his own title to property seized, the officer was not bound to abstain from taking it. There were also some other points passed upon which have not entirely disappeared from the controversy as now presented.
So far as the facts are material for an understanding of the controversy, they may be briefly referred to. McGuire^ in the early part of January, 1883, was owner of two horses and a jaunting car, for passengers, and a baggage express wagon and single harness, and the usual robes, covers, etc. On January 6,1883, defendants, or one of them, being sheriff and deputy, levied on the horses and on some property belonging to other persons. The horses were returned that evening to plaintiff, who then, or thereafter, receipted for them. The other property was subsequently levied on, but receipted, and not disturbed more than temporarily. A few days thereafter plaintiff replevied, and held under the replevin until March 26, 1883, when the writ was dismissed and judgment given for return. The whole property was appraised at $140, and the value alleged in the declaration in replevin at $200. After this return the property was sold on the execution, subject to a chattel mortgage, for about $50', the mortgage being for $150, and interest from December 2, 1882. Mr. Balch, the execution creditor, who had bid off the property subject to the mortgage, purchased it of the mortgagee.
It appeared on the trial that MpGuire had assigned his claim to his attorneys, Powers & Oxenford, but we do not think this barred his action for the conversion of his property if he had any right of action.
The largest portion of the damages allowed in this case was based evidently upon an alleged destruction of business, and a recovery was permitted under the charge for that.
When the case was up before, the record was so different in some respects from this that we declined deciding whether any such ground of damages was admissible. But we pointed out that if it could be admitted, no proper instructions were given whereby the jury could be enabled to measure either time or extent, and it was said that no possible theory could account for the verdict.
The present record is open to the same difficulty. The charge was apparently intended to fix the delivery back to the sheriff of the property after the replevin suit as the beginning of the breaking up of the business, as it very clearly was, inasmuch as there was no serious interference with its use any earlier; and the commencement of the present suit was evidently meant to fix the end of the period of loss of business, — or between four and five months. But this is left obscure, and no instruction was given which would enable the jury to discriminate between a loss of business, arising solely from the loss of the exemption, and a loss from the disposal of the whole property. Neither was there any testimony whatever which was adapted to inform the jury concerning the basis of such loss during the interval.
But upon a careful review of the case we think it is not one which will permit any such ground of recovery. It was at worst a mere conversion of property, which has a market value and which can be replaced. Further than this, it was a case where all the material wrong done, if any, was capable of prevention by an action of replevin. Such an action was brought, and the plaintiff obtained possession under it. If that action had proceeded to judgment in the usual way, and plaintiff had prevailed, he would have had no claim for solid damages. His failure to give bond was no ground for dismissing the suit, which might still have been tried on the merits. The possession which defendants obtained under that judgment was not tortious in itself, but such as the law gave them, with plaintiff’s acquiescence. It would be contrary to all equity to permit this to be treated as a tortious breaking-up of plaintiff’s business. It could not, if involving a violation of his rights, be anything more than a conversion which involved no more than the money value of the property converted.
Moreover, under the chattel mortgage, which the purchaser had a clear right to keep on foot if he chose, he had the power of assuming possession at any time, and thus terminating plaintiff’s means of continuing his business with the mortgaged property. The measure of damages, allowing all rights of exemption, could not exceed the sum of $250, with interest from the return of the property replevied, and could not reach that, unless the property levied on was worth that sum after allowing the amount of the mortgage at. that time.
The other questions are not likely to arise again, and we do ■ not deem it necessary to discuss them at length. We are not prepiared to say that the judgment in replevin was an absolute bar to this action, but it would be so unless, after the return of the property and before sale, the claim of exemption was plainly made. We do not think the sheriff could be held responsible for not setting apart property as exempt thereafter unless requested.
In the absence of argument upon the method in which he could proceed if such demand were made concerning property mortgaged, we cannot consider that matter.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Cooley, 0. J.
The action in this case is upon a contract whereby the plaintiffs were to get out for the defendant cedar posts, ties and poles, on a specified piece of land, at prices agreed upon. The contract, as testified to by the plaintiffs, was for telegraph poles, among others, which were to be five and a half inches at the top end. The defendant was to furnish a scaler, and he did send one on, but for some reason not fully explained, the person sent did not do the sealing, and plaintiffs employed one Tibbatts. Tibbatts was a witness on the trial, and testified that he received instructions from the plaintiffs, and scaled the posts, ties and poles ; and he states what the instructions were. As stated by him, they conformed to the contract as sworn to by the plaintiffs, except as to the telegraph poles, which he says he was told were to be five inches at the top end. As to his fitness for the business, he testified that he had never inspected any cedar before, but had seen enough inspected to know how.
The plaintiffs had judgment in the circuit court, and the defendant brings error, relying upon a number of supposed exceptions. Several of these, though appearing by the printed record, are struck out of the bill of exceptions on file; and unless the files have been tampered with, we must suppose they were not taken. There is one exception, however, as to which there is no dispute, which is. well taken, and on which the case must be sent back for a new trial.
In submitting the case to the jury the circuit judge instructed them that, as the defendant failed to furnish a scaler, the scaling by Tibbatts must be taken to be correct, and the burden was upon defendant to show that it was not so. This was error. It appeared from his own evidence that in one important particular his instructions were erroneous, and it also appeared that he was without experience. The scaling of timber is a business in .which it may well be supposed experience is of great importance; and no party could be fairly warranted in selecting for the work a man without experience, when another party was expected to be bound by his report. If he saw fit to take an inexperienced person, he should be held to assume the burden of showing that his work was accurate.
A new trial must be ordered.
The other Justices concurred. | [
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Campbell, J.
Plaintiffs, who are a commercial firm in New York, sued the principal defendants, who were merchants in Howell, on a debt for goods.' This suit was begun May 10,1884. On the same day they garnished Allan Sheh den & Co., a Detroit firm, as having assets of the principal debtors in their hands, and as indebted to them. The garnishees answered on the 27th of May, denying positively both allegations. Special interrogatories were also put to them, which they answered fully under oath, and the answers fully explained their dealings, and showed an absence of any liability. The case was then tried upon an issue, and the facts were all investigated, and the jury found a verdict for the garnishees.
The facts, upon which there is no serious controversy, were substantially these: Defendants Stiles & Brown were indebted to various persons, and among others to Allan Shelden & Co., of Detroit, who were their largest creditors, to whom they owed $3516.50, for which, on May 3, 1884, Brown gave the firm note, secured by chattel mortgage on their stock. Just previous to this, Mr. Hayes, agent of Shelden & Co., having ascertained that Stiles & Brown were proposing to divide their stock, and Brown was to take part of it to another town, objected to their doing so, and insisted on security unless they abstained, which they promised to do. But, upon a dissension between the partners, Brown went to Detroit and gave the note and mortgage, on Saturday, May -3d, and on Monday, Hayes went out and took possession and began to inventory, Stiles assenting. The inventory, at purchase rates, was nominally $5909.41, but it was testified the values had shrunk. When completed, a bill of sale was made, conveying the property absolutely to Shelden & Co. for a consideration named of $3700, being a small amount beyond what their debt would be without adding expenses-The goods were then offered for sale and bid off by Shelden ■& Co. for $3654, and they sold them again to Alley Bros., of Dexter, for the same price.
The argument made before us is rather on the facts than ■on the law, and seems chiefly to rest on the claim that these transactions were void in law as against other creditors. The-jury have found there was no fraud in fact.
We can see nothing to sustain the claim that these proceedings, if honest in fact, were not valid. There is no rule of law which will prevent debtors from preferring any honest creditor by mortgage, or from selling out to him an entire-stock of goods, to pay his debt. And there is no rule of law which will prevent him from relying on his mortgage rights if he chooses, as well as on his bill of sale. All of such transactions must be honest, and may be defeated or attacked if fraudulent. But there is nothing in the record from which-the law raises any presumption of fraud, or which would allow it to be made out without proof. The- arguments urged before us were quite proper to be made before the-jury. But if the jury did not yield to them they must fail, unless some rulings have been made in other respects which were erroneous.
It is claimed that error was committed in this regard because the court told the jury that “ when the facts and circumstances proved, from which this conclusion is to be drawn, are consistent with an honest purpose, as Veil as with a fraudulent one, you should draw the conclusion of honesty.’*
This ruling was in accordance with the plainest principles of law. Every plaintiff must make out his case by affirmative proof, or by legal presumption; and as the law does not presume dishonesty, it must be proved. It cannot be proved where the facts do not overcome the presumption against it. It would be a perversion of the charge, which is extremely well guarded, to make this detached expression equivalent to-an instruction that they should not be satisfied with a preponderance of proof. Where the jury think the testimony is as consistent with honesty as with dishonesty, it is equivalent to a denial of any preponderance in either direction, and the party having the burden of proof must fail. If we look at the rest of the charge, it is clear in laying the whole subject fairly before the jury for decision upon the testimony as they believe it to preponderate.
The plain tiffs base one exception on a remark of the judge ■that the answers of the garnishees to the special interrogatories are a part of the evidence in the case, and counsel •claim that they stand, like answers in chancery, as mere allegations.
While not conclusive, if met by adequate testimony to the contrary, they are answers of persons whom the plaintiff has seen fit to question under oath, and thereby made witnesses to the extent of their responsive statements. An answer in chancery, if called for under oath, and responsive, is evidence for the defendant who puts it in, and it would be unreasonable to allow specific questions to be put and answered, and then give the plaintiff a right to exclude the answers from consideration. The court below did not undertake to give them any different force from that of other testimony. This Was not error of which plaintiffs can complain.
The argument for plaintiffs very properly combined together in the course of reasoning the Various grounds of •error relied on. It is ingenious and forcible, but it chiefly deals with questions which were very properly left to the jury. We have referred to such of the matters dwelt upon as seem to involve legal questions, and in our opinion there was nothing in the action of the court below, so far as pointed out on the argument, which can be justly complained of. The diligence of Shelden & Company seems to have secured •their entire debt, but no more.
The judgment must be affirmed.
The other Justices concurred. | [
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Champlin, J.
On the 27th day of July, 1871, the plaintiff commenced suit in the circuit court for the county of Berrien by filing a declaration in a plea of trespass on the case upon promises as follows :
“ Eor that the defendants, to wit, on the sixteenth day of July, one thousand eight hundred and sixty, to wit, at our said county of Berrien, by their deeds of that date duly executed, acknowledged and delivered, and herein now shown, in consideration of the sum of twenty-six hundred dollars paid to the defendants by said plaintiff, convey min the plaintiff the following-described real estate situated in said county, to wit: The northeast quarter of the southeast quarter of section nineteen, and the east half of the northwest quarter of section twenty, all in township four south, of range eighteen west, being in the township of Benton, in said county, to have and hold, unto the plaintiff, his heirs and assigns, forever ; and the defendants did therein, and by the said deed, ■covenant, grant, bargain, and agree to and with the said plaintiff, his heirs’and assignees, that at the time of the ensealing ■and delivery of said deed, they, the defendants, were well seized of the premises so conveyed; and that the said premises so conveyed in the quiet and peaceable possession of the ■said plaintiff, his heirs and assigns, against all and every per■son lawfully claiming or to claim the whole or any part of .said premises from or under the said plaintiff, his heirs and ¡assigns, the said defendant would forever warrant and defend. And the plaintiff avers at the time of the ensealing and delivery of said deed, the said defendants were not well seized •of that part of the premises so conveyed, described as the •east half of the northwest quarter of section twenty, nor hath the defendants warranted or defended said premises against all and every person lawfully claiming or to claim the whole •or any part thereof from or under the plaintiff, his heirs and ■assigns ; but on the contrary thereof, the plaintiff avers that at the time of the ensealing and delivery of said deed, as ■aforesaid,- the paramount title and the freehold in the said premises so last described was in one William T. Cuyler, and in Geo. W. Cuyler, Anna B. Churchill and Catherine Reynolds, heirs at law of said William T. Cuyler, by virtue of which paramount title the plaintiff afterwards, to wit, on the first day of January, 1870, to wit, at said Benton, in said county, was evicted out and from said premises last described, by Warren Chapman and Chas. R. Brown, the grantees of said paramount title; and so the said defendants hath not kept their-said covenants, but hath broken the same ; and the plaintiff avers that the consideration so paid for that part of said premises so described as the east half of the northwest quarter of section twenty was, to wit, two thousand dollars; .and that in consideration of the premises and of the breaches of the said covenants, to wit, at our said county, to wit, on ■•the first day of January, 1870, the said defendants became indebted to the plaintiff in the said sum of two thousand dollars, and interest thereon, to wit, the sum of five hundred dollars, and in consideration thereof then and there promised to pay plaintiff said several sums, yet though requested have not done so, to the plaintiff’s damage five thousand dollars.
Also for that, whereas, on the first day of August, 1870, at our said county of Berrien, the said defendants were indebted to the said plaintiff in the sum of three thousand dollars, for money before that time paid them for lands, and also in the sum of one hundred dollars, by plaintiff, paid, laid out, ■and expended in defending the title to said land, to wit, the east half of the northwest quarter of said section twenty, in the circuit court for said county, and being so indebted, then and there promised said plaintiff to pay him said several sums of money, yet, though requested, hath not done so, to plaintiff’s damage three thousand dollars; and therefore he brings suit.”
On September 8,1881, defendants pleaded the general issue, and gave notice thereunder that at the time of giving the deed they were not the owners in fee of said lands in their own right, but held the same in trust for one Calvin Brittain, and that plaintiff purchased the lauds of Brittain, and well knew at that time that defendants only held the land in trust;, that the consideration was paid to Brittain, and that defendants received no consideration for said deed or pretended covenants, and that the deed was made at the request of plaintiff and Brittain for the sole and only purpose of divesting the defendants of their apparent title, and not for the purpose of warranting such title. The suit was brought on for trial in July, 1875, before Hon. H. H. Coolidge, circuit judge, without a jury, who, at the June term, 1876, pronounced judgment in favor of defendants and against the plaintiff, in open court, which by the neglect of the clerk was not entered upon the journal, and afterwards, in 1879, npon a showing satisfactory to his honor, Andrew J. Smith, then circuit judge of the county,, judgment was entered nunc pro tunc as of the June term, 1876. This judgment was, in October following, on motion, set aside by Judge-Smith. The suit was again tried in March, 1883, which again resulted in a judgment for defendants.
It appears from the calendar entries in the cause, which are returned with the record, that a declaration was filed October 24, 1881. This, however, does not appear in the printed record before us. The record shows that in October, 1881, a new plea and notice was filed, which, after setting forth the matters stated in the former notice, also adds a notice of the statute of limitations. On the trial the plaintiff offered the deed in evidence, with the certificates of acknowledgment and of recording indorsed thereon. The deed bears date the sixteenth day of July, 1860 ; it is executed by defendants and their wives, in their individual capacity, to the plaintiff as grantee. The covenants declared upon are in the following language :
“ And the said parties of the first part, for themselves, their heirs, executors, and administrators, do covenant, grant, bargain, and agree to and with the said party of the second part, his heirs and assigns, that at the time of the ensealing and delivery of these presents they are well seized of the premises above conveyed ; and that the above bargained premises in the quiet and peaceable possession of the said party of the second part, his heirs and assigns, against all and every person or persons, lawfully claiming, or to claim, the whole or any part thereof, from or under them, the said parties of the first part will forever warrant and defend.”
The defendant’s counsel objected to the introduction of the deed for the following reasons r (1) That no recovery can be had upon any of the covenants of the deed, because the action is barred by the statute of limitations; (2) there are no covenants in the deed to support the allegations in the declaration, and therefore it is irrelevant and immaterial. The court sustained the objections, and directed a verdict for the defendants.
The second objection is aimed at the covenant contained in the deed for quiet enjoyment and possession, which is qualified and limited to those claiming from or under the grantors. The declaration expressly avers that the plaintiff was evicted by the owners of a paramount title, and hence the covenant in the deed did not support the declaration.
The only question of importance is whether the statute of limitations has barred the plaintiff’s right of action upon the covenant of seizin. The plaintiff claims that the statute does not begin to run until some real and substantial damage has been caused by breach of the covenant; that in this case the plaintiff was evicted in 1870, and the suit was commenced in 1871. On the other hand, it is claimed that the covenant of seizin was broken, if at all, when made, and that more than ten years having elapsed after the date of the deed before suit brought, the right of action was barred. This is stating the time which must elapse after the right of action had accrued, and before suit, much more liberally than the form of the present action warrants. The declaration in this case is assumpsit and not covenant, and the action is barred by the lapse of six years. The question has been much discussed both here and in England, and much diversity of opinion exists as to the time [when] an action may be brought for breach of such covenant.
' In this State, since the decision of Matteson v. Vaughn 38 Mich. 373, it is not an open question. The point was directly involved. Mr. Justice Campbell there says: “As the covenants of séizin and against encumbrances were at once broken, the statute of limitations at once began to run against them as against all other personal actions, and they were barred many years since. No reason has been suggested upon which they can be taken out of the statute, and we do not perceive how they can be without entirely disregarding its terms. * * * If a party does not choose to investigate his title or enforce his possession within the period of limitation, he must take the consequences of his own neglect.” Some diligence is required of purchasers in ascertaining the state of their title, so far, at least, as they rely upon personal covenants, and it is presumed, if the plaintiff had investigated his title at any time within ten years from the date of the deed, he would have discovered the existence of the paramount title by which he was ousted, and could immediately have brought his action and recovered the purchase price.
The plaintiff’s counsel also contends that the court erred in directing a verdict on the rejection of the deed; that he could not legally assume that no possible evidence could overcome the effect of the statute under either count of the declaration, or that no subsequent evidence could make the deed proper first evidence in any possible order of proofs to follow it. But it is not claimed that plaintiff’s counsel offered dr had any other proof of the kind now suggested: It is fair to the court to presume that he did not suggest any other or further proof in support of his case. We perceive no error, and
The judgment is affirmed.
Campbell and Sherwood, JJ. concurred. Cooley, C. J. ■did not sit. | [
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Champlin, J.
This is a petition for mandamus to compel the respondent to vacate an order dismissing garnishee proceedings. Louis N. Moran and Amadeus T. Moran were co-partners doing business in the city of Detroit under the firm name of Moran Bros. The firm became indebted to different parties, among whom was the plaintiff, who instituted a suit to recover the amount due him, and at' the same time garnished the firm of A. B. & W. F. Linn. The garnishees filed a disclosure denying any liability. Proceedings were taken under the statute for an oral examination of the garnishees, which was had.
In the original suit the defendants appeared by attorneys separately. Louis N. Moran pleaded the general issue, and Amadeus T. Moran pleaded infancy at the time of making the alleged promises in the declaration set forth. On December 5, 1884, the jury before whom the cause was tried, found a verdict in favor of plaintiff against Louis N. Moran, and in favor of defendant Amadeus T. Moran, by reason of his infancy. They also found specially that defendants were copartners as Moran Bros., and that A. T. Moran was an infant at the time of the undertakings and promises set forth in the declaration. Judgment was entered accordingly.
On the 5th day of January, 1885, the plaintiff caused to be filed and served a demand for a statutory issue, and on the 8th of January the garnishee defendants moved the court to stop all further proceedings against them, and for judgment in their favor, for the reason that the principal case lias been tried, and the plaintiff has failed to recover judgment against the defendants above named; and afterwards on the 31st of January, 1885, the judge of the Superior Court dismissed the proceedings, with ten dollars costs. It is this order which the petitioner seeks to have vacated.
The statute declares that “ From the time of the service of such writ, the garnishee shall be deemed liable to the plaintiff to the amount of property, money, goods, chattels and effects, in his control belonging to the principal defendant, or of any debts due or to become due from such garnishee to the principal defendant, or • of any judgment or decree in favor of the latter against the former, and for all property, personal and real, money, goods, chattels, evidences of debt dr effects of the principal defendant, which such garnishee defendant holds by a conveyance, transfer or title that is void as to creditors of the principal defendant; and such garnishee shall also be liable on any contingent right or claim against him in favor of the principal defendant.” How. Stat. § 8059.
Under this statute the rights and liabilities of the parties depend upon the facts which render the claim one garnish-able or not at the time of the service of the writ. Hartz v. Detroit Fire & Marine Ins. Co. 28 Mich. 201; Hopson v. Dinan 48 Mich. 612. If at that time the liability of the garnishee existed, it must continue until 'discharged in the manner provided by the statute. Section 8100 provides : u A failure to recover judgment against the principal defendant, or a satisfaction of such judgment, in any manner, shall be deemed a discontinuance of all proceedings against the garnishee.” It is claimed that ,the order of discontinuance, entered in the court below, was authorized by this section of the statute, and its validity therefore depends upon the question whether it applies to a case like the one under consideration.
The process of garnishment is in the nature of an equit • able attachment of the debt or assets of the principal defendant in the hands of a third person. Its object is to reach such assets and apply them in discharge of the principal •debt. Had this suit been an ordinary attachment of the property belonging to the firm, the plea of infancy interposed by defendant would not have dischai-ged the attachment,' or liberated the property from the lien thereof. The judgment would have gone, as in this case, against the adult partner, and the execution would have been levied upon the firm property covered by the attachment. Why then should the failure to recover judgment against both members of the firm discharge this equitable attachment by way of garnishment upon the firm property ? It remains a firm debt or firm assets in the garnishee’s hands the same as it was at the service of the writ upon the garnishee. » The plea of infancy did not change the nature of the indebtedness or the character of the property in the garnishee’s hands. The garnishees are still the debtors or bailees of the firm. A judgment against the garnishees, and payment thereof, would be an effectual bar to a recovery against them by the firm of Moran Bros. The infant cannot bring a separate suit against them to recover an indebtedness or property belonging to the firm. The garnishee would therefore be as fully protected as if the judgment in the principal suit had been, in form, against both members of the firm.
The judgment rendered against Louis N. Moran, in this case, was a judgment in the principal suit. Contingencies may arise during the prosecution of any suit by which a change of parties upon the record may become necessary, and the parties in whose favor judgment may be rendered will not be the same as those mentioned in the writ or declaration by which the suit was commenced. If suit is instituted by or against members of a firm, and one should die before judgment, it would proceed in the name of the surviving partners. So, if suit should be commenced by or against joint contractors, and one should die pending the same and before judgment, it could be revi ved and proceeded with in the name of the survivor. In these cases the judgments recovered would be in the same suits, and if garnishee proceedings had been instituted at the time the original suits were commenced, the change of parties to the record would not have discharged the garnishees, nor operated to discontinue the proceedings against them. To give the statute any other construction would not only defeat its object, but lead in some cases to strange and obnoxious results.
To illustrate, suppose in the case under consideration that Bethel was the first creditor who sued the firm of Moran Bros., and garnished the firm of A. R. & W. F. Linn ; that immediately thereafter another creditor of Moran Bros, sued and garnished the same parties. , By being first in point of time, Bethel has secured a priority over the second creditor who sued. But suppose Moran Bros, desired to prefer the second creditor over Bethel, if the construction contended for by respondent is to prevail, all they would have to do to accomplish their purpose would be for Amadeus to plead infancy in Bethel’s suit and suffer default in the other. The garnishees would then be entitled to a judgment of discontinuance agamst Bethel, and judgment would be rendered against them in the subsequent suit.
The proper construction to be given to this section of the statute is this : In all cases where judgment is rendered in favor of the plaintiff in the principal suit a garnishee is not discharged or entitled to judgment of discontinuance by a change of parties to the record, where the claim was one that was garnishable at the time of service of process. It follows that the writ of
Mandamus must be issued as prayed for in the petition.
The other Justices concurred. | [
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Ci-iamplin, J.
The Mutual Fire Insurance Company of 'Sanilac, Huron and Tuscola counties, was organized under the laws of Michigan. 1 How. Stat. ch. 132. Section 5 of that act required the corporators to declare in the charter adopted by them the mode and manner in which the corporate powers conferred by that chapter were to be exercised, ■and they were authorized by that section to prescribe in their charter the liabilities of the members to be assessed towards defraying the losses and expenses of the conrpany) and the mode and manner of collecting such assessments. In case the corporation becomes insolvent, or fails to pay its losses as required by the act, it is made the duty of the Commissioner of Insurance to proceed in the circuit court of the proper county, and obtain the appointment of a receiver for •the company; and section 17 makes it the duty of the receiver to “ at once proceed to assess upon all of the members and persons insured in such company such sums of money as will in the aggregate be sufficient to pay all the losses and liabilities of said companyj together with the services and expenses of such receiver, according and in proportion to the amount of their insurance or interest in such company; ” and if the amount realized by such receiver be insufficient to pay the losses and liabilities therein, and ■expenses, he may make a second and other assessments, as may be necessary.
It was held in Russell v. Berry 51 Mich. 287, that the authority to prescribe the liabilities of the members to be assessed related to the ordinary exercise of their corporate powers by the company, while it was in a solvent condition- and carrying on its business in the ordinary way; but that the statute prescribed its own rule for assessments after the corporation had passed into the hands of a receiver, and that this rule could not be changed or limited by the charter or by-laws of the corporation.
On the 6th of July, 1877, complainant applied to the ■company to become insured by it to the amount of $1700 for three years. The insurance was effected through a written application made upon the company’s blanks, and for which insurance he gave to the company his premium note, a copy of which is as follows :
“For value received, I agree to pay the Mutual Insurance ■Company, in such sums and at such times as they may require to pay losses and expenses, not to exceed the sum of twenty-five and fifty one-hundredth dollars, payable at the ■company’s office. Andrew Macklem, applicant.”
At the same time he paid the company seven dollars and ten cents down upon the note. A policy was issued to complainant, which was renewed on the 6th day of July, 1880, for three years longer. Soon after this came the extensive fire which devastated Huron county, consuming many of the risks taken by the company, and the result was it was unable to pay the losses incurred by assessments on its premium notes. At the instance of the Insurance Commissioner defendant was appointed receiver under the law, and an assessment made under section 17 of the act. The amount assessed against complainant on his $1700 was $lM.50j and a suit at law has been brought therefor. The complainant then filed his bill to enjoin that suit upon the ground that the contract of insurance and the liability growing out of it were entered into under a serious mistake both of law and of fact, and such mistake as entitles complainant to a perpetual injunction against the receiver, restraining him from making any assessments or taking any proceedings to recover any assessment in excess of the premium note, and from prosecuting the suit commenced.
The bill avers that Benjamin H. Mudge was the general agent of the insurance company, and also soliciting agent, and was expressly authorized to make the representation which he did make to the complainant. No fraud' is averred or claimed. These statements I quote at length from the bill:
“ Your orator further says that it was explicitly represented to him before and at the time of making such application, as part of the inducement to take such insurance, by Benjamin H. Mudge, the general soliciting agent of said company, upon questions directly put to said agent by your orator for that purpose, that the extent of your orator’s liability in any case could not exceed the amount of said premium note, and, as the general agent then and there remarked, that if all the buildings insured in said company except your orator’s be destroyed by fire, still your oratór would be liable only to the amount of his said premium note; which statement your orator has good reason to believe said general agent, Benjamin H. Mudge, will not deny.
Your orator has good reason to believe, and does so believe and so states the fact, that the persons insured in said com pany, including those that suffered losses, expected that they were liable only to the amount of their premium notes, and in no case could it exceed the amount of said premium notes, and so believed they were liable only to said amount until the assessment made by said receiver.
Your orator further says that the conversation had with the said general agent at the time of taking said insurance led him to believe that if your orator should be among those •that suffered losses which should exceed the amount of all the premium notes, then your orator would receive only such proportion of his loss as said premiurcj notes would bear to such loss, and such was the belief of those persons that were insured in said company who suffered losses.
That your orator expressly stated to the said general agent, before and at the time of making such application, that if there was any probability of liability beyond the said premium note he wanted nothing to do with it, and such insurance was negotiated and taken by said general agent with the express understanding that your orator’s liability could not in any case exceed the amount of his premium note; that the general agent then and there stated to your orator that such was the law under which said company was organized, and such was the charter and by-laws of said company; that your orator was induced by such assurances and expressions made by said general agent to make application for such insurance; and the wording of the premium note so signed by your orator led him to believe that such representations were true and correct; that after receiving said policy and reading the by-laws carefully over, especially by-law No. 14, and after examining the charter, which is printed on another policy of insurance in said company, which is held by your orator, further led him to believe' that such representations were true and correct.
And your orator further shows that each and every person insured in said company so understood his rights and liabilities by reason of the representations of the managers and general agent of said company, and there was nothing in the statute laws under which said company was organized that was contrary to the by-laws and charter of said company; and the Attorney General and the Commissioner of Insurance of this State certified that the charter of said company was in accordance with the statute under which said company was organized, and they, as well as your orator, believed that said charter conformed to the law of this State, and there was nothing in said charter, as your orator could per ceive, would make him liable beyond the premium note so signed by him. Nor was there any law on mutual insurance companies, as expounded by the courts of this State up to or about the time of making such assessment, that gave your orator any knowledge of further or greater liability or indemnity than shown by the premium note.
And your orator further says that he is, always was, and still is, willing to pay the full amount of said premium note, but that he refuses to pay anything in excess thereof, for the reason that it was contrary to the contract and agreement made and entered into with said general agent, and contrary to the representations made by said agent, and for other reasons heretofore mentioned.
And your orator avers that nothing has occurred since the issuing of said policy of insurance, and the making of such representations by said general agent, to undeceive your orator as to his rights and liabilities, until the threatened action and demand of the said receiver for the amount of your orator’s assessment, as made by him.
And your orator avers that had he, at the time of making such application, understood, or had he the remotest idea that his liability might, under any circumstances, exceed the amount of, his said premium note, he would not have entered into such contract for insurance, but that he did so enter into such contract relying upon the representations of said general agent as to the liability of the insured in said company.
And your orator shows that so understanding, and having-no knowledge of any further liability until such assessment, his delay to procure relief from such a contract by having the same set aside should not shut him out-from relief in this court at this time.
And your orator further shows that said Benjamin H. Mudge, at the time of making the representations and the original contract of insurance, and at the time of making the renewal thereof, was the general soliciting agent of the company, elected and appointed by the board of directors thereof, and bjr them authorized to make such representations as to the liability of the insured in said company; that when said application of insux-ance was taken it was the intention of said general agent and officex-s of said company to bind your ox-ator only to the amount xxamed in said premium note. Said genex-al agent and officers never expected that your orator was liable beyond the premiuxn note signed by him, and all the insured expected and intended that the premium note was the limit of their liability. Both your orator and officers of said company, from the time said company was organized to the time said company became insolvent, supposed that the contract entered into, whereby your orator should be liable only to the amount of the premium note, was in accordance with the statute under which said company was organized, and so expected that the premium note signed by your orator was the extent of his liability until the threatened action of said receiver.
Your orator further says that said general agent, before and at the time said application was taken, stated to him that all the members (which numbered nearly one thousand) were first-class, reliable, and responsible persons, and if necessary could be compelled to pay the full amount of their premium notes; that your orator was unable in any way to find out the financial condition of the members of said company, but had to rely upon the statement made by said agent, as it was impossible to find out the liability otherwise. Your orator states the fact to be that a large portion of said members, at the time your orator insured, were uncollectible, having little or no property, and still a larger portion of said members only held that amount of property which is exempt by law from execution.
Your orator further shows that, should the amount of assessment be collected as made by said receiver, your orator, with a certain few, would be compelled to pay the amount and thereby be financially ruined, for the reason that a large portion of said members have very little or no property, and still a larger portion have only that amount of property which is by law exempt from execution.
And your orator further shows that said receiver, unless restrained by the order of this court, will proceed to judgment in the said case at law, to the great damage and loss of your orator.”
The bill is supported by the affidavits of Michael Hansel, man, who was its president, and of William A. Mills, who was one of the original corporators of the company, and was its secretary from 1876 to 1882, each of whom swear that it was their understanding that persons who were insured in the company were liable to pay nothing beyond the amount of their premium notes by way of assessment; and they also swear that they believe that all the officers and directors of the company held to the same opinion; and Mr. Mills says that it was known to the officers and directors of the company that Benjamin II. Mudge, the general soliciting agent, made such statements and representations, and they were never questioned by the officers and directors; that he “has good reason to believe, and does- believe, that all persons who were insured in said company so understood and believed.” It will thus be seen that each member of the company has equal claims to relief with the complainant, and there is no source from which losses can be met by the receiver other than the premium notes, if any are uncollected.
The questions raised are of the first importance both to the complainant as affecting his liability, and to his associates who have suffered loss, and who look to the liability of the members of the company for indemnity. His right to relief is based exclusively (1) upon his mistake of law, and (2) his mistake of fact. These will not' be considered separately. The averment in the bill that the mistake of law was mutual, lends no aid to the equities arising from such mistake, for in any case there must be something that makes it inequitable for the opposite party to the contract to insist upon its enforcement, or equity wall not interfere. It is well settled that it is not every mistake of law, although accompanied with injurious results, that will lay the foundation for equitable interference, and an examination of the authorities where •relief has been granted or refused, will disclose that each case is based upon its own peculiar circumstances, and they are so unlike that no general rule can be extracted therefrom. A mistake of law is something, however, that operates upon the mind and induces action in reliance upon what the party acting believes, or supposes to.be, his legal rights. It is ah act done or suffered under a misapprehension of legal rights, and is necessarily based upon his ignorance of what his legal rights are. In order to invoke the equitable,powers of a court to be relieved against his misapprehension induced by ignorance, he must be free from negligence as a cause of his mistake, and also in discovering the existence thereof. Diligence in discovering and enforcing a right lost or impaired by a mistake is as essential as diligence in the discovery of fraud, and promptness in seeking relief therefrom.
Now it is claimed by the complainant that he entered into the contract between himself and the insurance company in ignorance of the provisions of the seventeenth section of the General Insurance Law. He claims that the- contract that he believed he was entering into was to this extent and no more, namely: That in consideration of indemnity to the amount named in his policy, against loss of his own property, he agreed to pay, for the indemnity against loss of other parties insuring in the same company, a sum not to exceed $25.50, to be assessed according to the charter and by-laws of the company. But, instead, he has discovered that the law ingrafted upon that contract which he was aware he had made, and which he supposed limited the extent of his liability, the further undertaking on his part, not expressed in his written contract, that in case the company becomes insolvent, and a receiver is appointed, then that he will pay all assessments laid by the receiver for the purpose of paying losses and liabilities of the company, and the services and expenses of the receiver, without limitation, in proportion to the amount of his insurance or interest in the company.
The complainant makes another important allegation in bis bill. He says that the fact is that every person insured in said company, including those who suffered losses, expected that they were liable only to the amount of their premium notes, and in no case could it exceed the amount of said premium notes. By demurring the defendant admits this statement to be true. This is a material allegation, and, if true, ought to be an end of the case, because it shows that every member of the companj’- was laboring under a mistake of law which affected his liability, and which it would be most inequitable for any one of them now to insist upon enforcing. This is a mutual company. The question at issue as to the right of the receiver to assess beyond the premium notes affects no one but the members, and these members entered into contract relations with each other upon the express understanding and agreement that they should not be assessed beyond tbe amount of their premium notes. There is nothing illegal in such a contract, although the law does provide that in case the company becomes insolvent there might be assessments made beyond and independently of the premium notes to pay such loss. This provision of the law was made for the benefit of the individual members, and the individual members can waive a benefit given by statute. The case is much stronger when, in ignorance of such law, they mutually agree that the premium note shall be the limit of each member’s liability.
If the agent had intentionally misrepresented to the complainant the facts in a material point, which induced him to enter into the contract, he would have been entitled to relief-In Lycoming Fire Ins. Co. v. Woodworth 83 Penn. St. 223, Mr. Justice Gordon said: “ It is true that one insuring in a company, formed on the mutual plan, is bound to inform himself of the rules and regulations of such company.. Mitchell v. Insurance Co. 51 Penn. St. 402. But it is also true that, as to those outside of it, such a company occupies no other or better position than one organized on the stock plan. As to one dealing for insurance, such a company is bound., as any other, by the representations of its agent in the act of making the contract, for it cannot assume the advantages of his acts, and avoid the disadvantages. The maxim, ‘ Qui sen-titcommodum sentiré debet et onus,’ is said by Justice Sharswood, in Mundorff v. Wickersham 63 Penn. St. 87, to embrace a principle which pervades the law in all its branches-It follows that this company could not profit by the fraud of its agent in inducing the plaintiffs to- enter into- a- contract which they would not have entered into- had it not been for such fraud, and it does not help the matter that they were-thus made members of the company, for such membership arises from, but does not precede, the contract.”
Under the allegations of the bill it would operate as a great wrong upon the complainant to extend his liability beyond1 the amount of the premium note signed by him, which it was expressly agreed should limit the utmost extent of his liability ; and as all of the members understood their contract in the same way, there is nothing wrong or inequitable in enforcing the contract as made.
I do not feel called upon to determine what would be the liability of complainant under a state of facts different from that made by his bill. I base my opinion entirely upon the facts stated, and by the demurrer admitted to be true. We cannot anticipate that he will be unable to sustain the statements made, by proof, if they are denied by the answer that may be interposed. I think the decree of the court below should be
Reversed, the demurrer overruled, and the record remanded with leave to defendant to plead in twenty days.
Sherwood, J. concurred. | [
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Pee Curiam. Motion to dismiss an appeal in chancery on the ground that the decree appealed from is not a final decree.
The decree perpetually enjoins the defendants, their agents and servants “ from marking, painting or stenciling for sale, and from selling fanning-mills marked, painted or stenciled in imitation of the complainant’s fanning-mill and from using upon fanning-mills manufactured or sold by them, or either of them the words ‘Grain Grader & Seed Separator, Lawton, Michigan,’ in imitation of complainant’s fanning-mills and from, selling or offering for sale fanning mills not manufactured at Lawton, Michigan, in whole or in part as and for the Lawton • fanning-mill, and from and in every manner representing the complainant to be dead or out of business, or that they have succeeded him in business.” It also orders a reference to a circuit court commissioner “to take an account of the number of fanning-mills sold by the said defendants or under their direction since the 8th day of January, A. D. 1881, on which were the words £ Grain Grader & Seed Separator, Lawton, Michigan,’ and to take an account of the profits thereon, and for the better taking of such account to examine the evidence taken herein as to the number of such fanning-mills so sold with such words thereon and to call any witnesses necessary therefor and to report the number so sold with the full amount of profits thereon to this court without delay for the further action of this court, until which time all further order and direction is reserved.” This decree is a final decree within our former, decisions. Lewis v. Campau 14 Mich. 458; Kingsbury v. Kingsbury 20 Mich. 214; Barry v. Briggs 22 Mich. 201; Damouth v. Klock 28 Mich. 163; Shepherd v. Rice 38 Mich. 556; McCombs v. Merryhew 40 Mich. 721; Taylor v. Sweet id. 736; Arnold v. Bright 41 Mich. 207; Tawas &c. R. Co. v. Iosco Circuit Judge 44 Mich. 479; Simon v. Schloss 48 Mich. 233; Morey v. Grant 48 Mich. 326; Witbeck v. Chittenden 50 Mich. 426. The decree grants to the complainant the principal relief prayed for in his bill, and gives him the immediate benefit of the judicial action by an injunction that in effect puts an end to defendants’ business. The only ground suggested for a contrary view is, that hereafter when the accounting is complete there must be a further decree. But it is not unprecedented that there should be two decrees in the same case which are final in the sense ■of finally determining rights; and when the effect is such that the party obtaining the decree is immediately put in possession of the right adjudged to him, the right to appeal ought not to be questionable. Any other view would some times, in a case like the present, inflict irreparable injury witli no means in the law for redress. No method is provided by statute or by the practice of the courts in this state whereby such mischief could be prevented otherwise than by appeal.
Appeal from Yan Burén. (Mills, ¿T.)
April 9-10. — September 29.
Injunction bill. Defendants appeal.
Reversed.
Lester A. Tabor and Henry F. Severens for complainant.
For definition of good will, see Morga/n v. Schuyler 79 N. Y. 490; Crutwell v. Lye 17 Yes. 335; Boon v. Moss 70 N. Y. 473; Sander v. Iloffman 64 N. Y. 248 ; Glen & Hall Mfg Co. v. Hall 61 N. Y. 226: it follows the ownership of the business: Pars. Part. 262; and see 3 Kent’s Com. 64; Hammond v. Douglas 5 Yes. 539; Crawshay v. Collins 15 Yes. 224; Featherstonhaugh v. Fenwick 17 Yes. 312; Lewis v. Langdon 7 Sim. 421; Staats v. Howlett 4 Den. 559 ; 2 Lindl. Part. 855; Kellogg v. Totten 16 Abb. Pr. 35 ; Mitchell v. Bead 19 Hun 418 ; Cassidy v. Metcalf 1 Mo. App. 593 ; Davies v. Hadgsan 25 Beav. 177; Chittenden v. Wiibeck 50 Mich. 401; a partner cannot, on retiring from a firm which he went into for a limited time, claim an interest on the good will of the business: Van Dyke v. Jackson 1 E. D. Sm. 419; Austin v. Bays, cited in Lindl. Part. § 864; Dimon v. Hazard 32 N. Y. 65 ; Ilowe v. Laurence :9 Cush. 556; Bullitt v. Chartered Fund 26 Penn. St. 108; Quimlivan v. English 42 Mo. 362; the full abandonment of a trade-mark requires the intent to abandon it: Lemoine v. •Canton 2 E. D. Sm. 343: American Trade-mark Cases 142, Sold v. Ceisendorf Cox’s Manual &c. 367; an acquiescence by the owner of the trade-mark in its use by another, is in the-nature of a revocable license, and confers no rights after the license is withdrawn: Amoskeag Manf. (Jo. v. Spear 2 Sand. 599; an acquiescence in the use of a trade-mark for twenty years by others does not preclude the owner from enforcing1 his sole right: Gillott v. Esterbrook 47 Barb. 455 : 48 N. Y-374; see also, Ta/ylor v. Carpenter, cited in American TradeMark Cas. 32; Filley v. Fassett 44 Mo. 173; Comstock v. White Am. Trade-Mark Cas. 232; Kidd v. Mills Cox’s Manual 437; Austen v. Boys 24 Beav. 503, 2 Lindl. Part. 863; if a name indicating the nature of a machine also defines ownership or possession it may be registered as a trademark and cannot thereafter be used by any other person to> describe articles of the same kind: Messerole v. Tynberg, Am. Trade-Mark Cas. 479; Burnett v. Phalón id. 376;. Newman v. Alvord id. 404: 51 N. Y. 189; McLean v. Fleming Cox’s Manual 326: 96 IT. S. 245; Caswell v. Ba/ois Am. Trade-Mark Cas. 429 ; see also Wolfe v. Goulard id. 226; Merch. Banking Co. v. Merch. Joint Stock Go. 26 Eng. 346; Hirst v. Denham 3 Eng. 833; Witherspoon v. Cwrrie id. 29 ; the following cases, among many others, fully sustain complainant in the use of his trade-mark: Godillot v. Harris 81 N. Y. 263; Coats v. Holbrook Am. TradeMark Cas. 20 ; Barrows v. Knight id. 238; Binninger v. Wattles id. 318; Dixon v. Guggenheim id. 559 ; Morrison v. Salmon id. 643; Halloway v. Halloway id. 662; Davis v. Kendall id. 112; Knott v. Morgan id. 637; Perry v. Truefitt id. 644; Hier v. Abrahams 82 N. Y. 520; Congress Spring Co. v. High Rock Spring Go. 45 N. Y. 291; Colman v. Crump 70 N. Y. 573 ; Holmes v. Holmes 37 Conn. 278 ; Croft v. Day 7 Beav. 84: Am. Trade-Mark Cas. 649 ; Sykes v. Sykes 3 B. & C. 541; Burgess v. Burgess 17 E. L. & Eq. 257 : Am. Trade-Mark Cas. 664; Clark v. Clark 25 Barb. 76 ; Bradley v. Norton 33 Conn. 157 ; Gillott v. Kettle 3 Duer 626; Walton v. Crowley 3 Blatch. 440; Selchow v. Baker 93 N. Y. 60: Carnal Co. v. Clark 13 Wal. 311; Mfg. Co. v. Trainer 101IJ. S. 51; no one can sell his goods as those of another aside from any rights under a trade-mark: Bloss v. Bloomer Am. Trade-Mark Cas. 200 ; Partridge v. Menck id. 72; Williams v. Johnson id. 214; Rodgers v. Nowill id. 660 ; Lee v. Haley Cox’s Manual, 184; Williams v. Johnson id. 85; Shrimpton v. Laight id. 69; Taylor v. Taylor id. 70 ; Knatt v. Morgan id. 26; Glenny v. Smith id. 140; Coffeen v. Burton id. 52; Singer Mfg. Go. v. Beiil id. 409 ; Morgan Saw Co. v. Troxell id. 144; Thorlefs Cattle F'ood Co. v. Morram id. 395; Cooley on Torts 361.
This is very different from a case where an accounting • necessarily precedes the main redress. Enos v. Sutherland '9 Mich. 148. The accounting in this case is not even necessarily incidental to the main relief which was prayed; it is in the nature of a separate suit, and might well have been left to a suit at law.
The motion to dismiss is denied.
'George W. Lawton and Edward Baeon for defendants appellant.
A bill of complaint suppressing the real relations between the complainant and defendant should be dismissed : Story’s Eq. PI. §§ 241, 242, 249, 251; Leather Cloth Co. v. Am. Leather Cloth Co. 11 H. L. Cas. 523 ; Booth v. Thompson 49 Mich. 13; Elliott v. Amazon Ins. Co. 49 Mich. 519; Lawton, Mich, being a post town cannot be appropriated as ■a trade-mark: Canal Co. v. Clark 13 Wal. 311; Candee v. Deere 54 111. 439 ; Glendon Iron Co. v. Uhler 15 Penn. St. 461; Weatherspoon v. Currie 3 Moak (Eng.) 29; “ Grain Grader and Seed Separator ” being words descriptive of the ■quality of the machine cannot be appropriated as a trademark : Caswell v. Davis 58 N. Y. 223 ; Taylor v. Gillies -59 N. Y. 333 ; Boget b. Eindleter 1 Eng. 653 ; Cooley on Torts 361; Charvim v. Walker 22 Eng. 524: 5 Ch. Div. 850 ; Mfg. Co. v. Trai/ner 101 II. S. 51,54; Boyal Baki/ng Pow■der Co. v. Sherrell 93 N. Y. Pep. 334; Enoch Morgan Sons c& Co. v. Troxell 89 N. Y. 298; Cape v. Evans 9 Eng. 681; Chronvnslay v. Cohn 39 Cal. 501: Am. Pep. 416; Yarn, Beil v. Prescott 82 N. Y. 630 ; words have their •ordinary meaning: Leoni v. Ta/ylor 20 Mich. 154 \ L. S. <& M. S. B. Go. v. People 46 Mich. 211: 1 Bl. Com. 59; dissolution of a partnership does not deprive a partner of his interest in the good-will of the business or in a trade-mark: Uuwer v. Dannenhoffer 82 N. Y. 501; Hazard v. Cas■well 93 N. Y. 263; Hall v. Burrows 4 De G. J. & S. 150; Bury v. Bedford id. 352 ; Wile oxen v. McCrary 38 N. II. Eq. 461; competition is favored by the courts: Snowden v. Eoah Hopk. Ch. 341; Candee v. Deere 54 111. 439 ; Tab■ouchere v. Dawson 1 Moak 111; partner ssucceed to partnership rights; Hazard v. Caswell 93 N. Y. 262.
Sherwood, J.
The complainant is a resident of Lawton, -a village on the Michigan Central Railroad, and has been for the last thirty years. The defendant Walker resides at the ■same place, and has since 1810. The other defendant, Imus, resides at Galesburg, about twenty-seven miles distant, and .has since childhood. Besides the. complainant, previous to 1810, W. B. Ledyard & Co, Jesse Smith, Ledyard & Aldrich, E. B. Aldrich, Potts & Aldrich, N. B. McKiney and W. H. Potts & Co. were all more or less engaged in the manufacturing of fanning-mills at Lawton, and some of them quite ■extensively. These parties appear to have all made about the same style and pattern of mill; the complainant making the least number of any of them. Until 1861 he was more or less in the employ of some of these parties, and at that date he commenced the manufacture of mills as his principal business, and had-a shop at Lawton for that purpose. During this period, and until 1870, he did all his own work without the aid of machinery, making from ten to one hundred and twenty-five per year. During this latter period, and in the year 1870, defendant Walker worked for complainant. The mill was called by various names up to this time, and the entire enterprise seems, so far as complainant’s pecuniary interests were concerned, to have been attended -with precarious forebodings and very indifferent success, until he engaged in business with the defendant Walker, with whom he continued in business until January 18, 1881, when the copartnership was dissolved by mutual agreement.
The following is the agreement under which they commenced business in 1870:
“ This agreement made the twelfth day of February, A. D. 1870, by and between Myron H. Smith, of Lawton, "Van Burén county, State of Michigan, of the first part, and Peter Walker, of the same place, of the second part, witnesseth, that the said Smith, in consideration of the covenants on the part of the party of the second part hereinafter contained, doth covenant and agree to and with the said Peter Walker that he will furnish shops, tools, team and wagon for the purpose of building fanning-mills and selling the same; and the said Peter Walker, for and in consideration of the covenants on the part of the party of the first part, doth covenant and agree to arid with the said Smith to pay for the use of the one-half of the above-mentioned articles the sum of ninety dollars on or before the first day of November, A. D. 187Ó. And ip is hereby mutually covenanted and agreed by and between the said parties hereto that they each shall share equal in all expenses, losses, and gains, and at the expiration of the year’s business the notes that have been taken for the mills sold shall be equally divided between the parties above mentioned. In witness whereof, we have hereunto interchangeably set our hands and- seals the day and year first above written.”
After making - this contract, and on the 29th of March, complainant obtained a patent for an “ improvement in grain separators,” which he and Walker used in the construction of the mill they made, and several other changes and improvements were subsequently made by them, which they used to advantage in the sale of their mills. It also appears that the name of the mill was changed, as the parties inter, ested thought best for their interest. It clearly appears that after the formation of the copartnership between Smith and Walker the business was prosecuted with much greater vigor than before, and considerably -extended, and the record shows that during the ten years the partnership lasted they manufactured and sold.quite ten thousand mills, seven hundred of which were sold the last year. On the 4th day of January, 1871, the copartnership between Smith & Walker was continued under the following agreement:
“ This agreement, made the fourth day of January, A. D. 1871, by and between Myron A. Smith, of the one part, and Peter Walker, of the other part, witnésseth as follows, to wit: The said Smith and Walker do hereby agree each with the other to form a copartnership for the purpose of manufacturing fanning-mills or other implements or articles to sell, each to be to one-half the expense for stock, manufacturing and selling the mills or other articles or implements. Each to individually furnish for the use of the company one pair of horses, harness and wagon, complete. If either should lose a horse he is to buy one and pay for it out of company money, and the loser shall refund the money so advanced on or be-, fore the first day of November, 1871, without interest. Smith is to furnish shop, tools, and barn, for the rent of one-half'of which Walker is to pay Smith the sum of forty dollars on or before the first day of November, A. D. 1871. They are equally to share all losses (excepting the loss of a horse or horses) and expenses, and are to share equally in all gains, and the tokens for the sale of mills or other manufactures are to be equally divided at the option of either party. Smith and Walker own jointly one two-horse lumber wagon, with red box, whiffietrees, and neck-yoke belonging thereto; also one set of new bob-sleds. In witness whereof, the parties hereto have interchangeably set their hands and seals the day, ■ and year above written.”
The partnership continued under this agreement until the 14th day of December, 1874, when the following agreement was entered into:
“ This agreement, made the fourteenth day of December, A. D. 1874, by and between Myron H. Smith, of one part, and Peter Walker, of the other part, witnesseth as follows, to wit: The said Smith & Walker do hereby agree, each with the other, to form a copartnership for the purpose of manufacturing fanning-mills, or other implements or articles to sell; each to be to one-half the expense for stock, manufacturing and selling the mills or articles or implements; each to individually furnish for the use of the company one pair of horses, harness, and wagon, complete; each to run all risk on his own horses. All other horses, wagons, and harness to be owned and paid for (as they are now) by the said Smith & Walker equally. Myron H. Smith is to furnish the shop and barn on the premises owned by him, also three-fourths (f) of the lot east of said shop (rented by him Of Mrs. Kennedy), for the rent of one-half of which Peter Walker is to pay Myron H. Smith one hundred and five dollars annually. Myron BL Smith to run all risks on said buildings. They are equally to share all loses (except on horses and buildings, as stated before) and expenses, and are to share equally in all gains; and the notes or other tokens for the sale of mills or other ■manufactures are to be equally divided at the option of either ■party. Myron BE. Smith sells to Peter Walker a one-half interest in the following machinery, at the following prices, viz.:
One large cut-off saw table, with arbor and boxes and saw belonging thereto, and double pulley tighteners, price......- $73 00
One turned shaft, 4 feet 8 inches long, 1 11-16 inches diameter, with boxes for same, and one wood driving pulley 23 inches in diameter, two wood driving pulleys 48 inches in diameter, and one single pulley tightener, price - - - - 17 00
Twelve feet 1 11-16 turned shaft, - - - 8 52
Two oil fountain hangers, 111-16x13, - - - 13 84
'One iron pulley, 15x6£xl 11-16, - - 5 50
“ “ “ 24x4£xl 11-16, - - - - 6 45
“ “ “ 30x4fxl 11-16, ... 8 50
'Two “ slip collars,......2 40
'Thirty and 3-12 feet 6-inch leather belt, thirty-nine feet 5-inch leather belt, and thirty-one and one-half feet 4^-inch leather belt, - - - 41 84
Eleven and 3|-12 feet leather belt, on jack, ~ $3 08
■One large movable saw table, with l|-inch arbor for sticker head (and bit-hole for boring machine). With said saw table and arbor are the following attachments : One dado head, with three sets of bits belonging thereto; one matcher head (3-inch slot for bits); one pair 3-inch jointer irons ; four each £, •£, and ¿-inch matcher irons; one long and two short turned collars; one 12-inch coarse ripsaw and three .cast wrenches, - - - 75 00
One movable saw table, next in size to the above, with 1-J-inch arbor for sticker head, and one 10-inch fine cross-cut saw,..... 45 00
One 10-inch circular saw, 6 gauge, extra thickness, for mortising sieve-frames, - - - - 4 00
One 12-inch fine rip circular saw, - - - - 2 90
One 8-inch fine cross-cut circular saw, - - - 1 25
One 10-inch fine rip circular saw, - - - 1 25
One cast circular head, with saw for cutting wind-holes in side-boards and ear-pieces, - - 7 00
One boring attachment to large movable saw table, 15 0©
One foot mortising machine, with all chisels, gouges, and punches belonging thereto, - - - 20 00
“ For a orie-half interest in the aforementioned machinery Peter Walker has paid Myron H. Smith one hundred and seventy-five and 77-100ths dollars; payment in full for the same is hereby acknowledged by said Myron EL Smith. The following articles of machinery are owned equally by the parties hereto (having been purchased equally by them previous to this date), viz.: One cast-iron bed for jointing and matching, with four springs and rollers belonging thereto ; •one frame, arbor, and saw for mortising safes; one blacksmith’s iron vise; one concave circular saw ; all 2£ inch leather belting.
“ It is further agreed that all machinery bought in future shall be paid for and owned equally by the said Smith and Walker, and that a list of all such machinery shall be kept by each of the parties hereto.
“It is further proposed by the said Smith and Walker to erect a building 19x20 feet on the east side of the shop owned by Myron EL Smith; said building to be paid for and owned equally by the parties hereto.
“ It is further agreed that all taxes on the property belonging . to the company shall be paid equally by the parties hereto.
“ It is further agreed that all damage done to the property of the company by fire or otherwise shall be equally borne by the parties- hereto.
“At the dissolution of the company Myron H. Smith reserves the right to take back the boring attachment to large movable saw table at fifteen dollars ($15), and the foot mortising machine, with all chisels, gouges and punches belonging thereto, at twenty dollars ($20).
■ “ This copartnership may be dissolved by either of the parties hereto at the close of any year’s business, and the property sold or divided as may be agreed upon between them. Mtron H. Smith,
Peter Walker.
Witness: F. B. Adams.”
This was the last written agreement of copartnership between Smith and Walker, which continued until January 18 1881.
The following property was taken by Walker on the divijion of the partnership property of Smith & W alker at that date: One horse, 1 peddling wagon, with rack, 2 sulkies, 2 light cable chains, 10 or 11 fanning-mills, 3 to 5 fanning-mill woods, complete; a quantity of parts of mill-woods, 2 or 3 sets of castings and wrought-irons; parts of 8 or 10 sets of irons, suspenders, and braces; 703 feet of wire cloth, 500 lfxll-inch carriage bolts, 150 other bolts, a quantity of small staples, 3000 or more; 2£ gross screws, 2 one-pound papers clout-nails, one dozen papers £-ounee tacks, 3 lbs. lamp-black, 100 lbs. nails, 100 lbs. vermilion primer, 200 or more shipping-tags, 20 gals, varnish; 10 cans of different sizes.
The following bill of sale was made and executed by defendant W alker, and thereupon the following dissolution notice was signed by both Smith and Walker.
“ This is to certify that I have sold to Myron H. Smith, of Lawton, my undivided one-half interest in boiler, engine, and all pipes, etc., belonging thereto, and all other machinery, wrenches and fixtures belonging thereto, in his shop < on lot 9, block 9, D. O. Dodge’s addition to the village of Lawton; also the buildings and steam-box on lot eight (8), block nine (9), D. O. Dodge’s addition to the village of Lawton; also 3883 feet bass-wood lumber at S. H. Jones’ mill; also all lumber in and around the above shops, excepting my one-half interest in a quantity of ash-shafts 2£ x 2|-inch square, in the shed on lot eight (8), block nine (9), as above described.
I hereby acknowledge having received six hundred and sixty-nine 55-100 dollars ($669 55-100), payment in full for my undivided one-half interest in the above-described property.
Peter Walker.
Lawton, Mich., January 18, 1881.”
“ Dissolution of .Copartnership. Notice is hereby given that the copartnership heretofore existing under the firm name of Smith & Walker is this day dissolved by mutual consent. All accounts due said firm, and all claims against them, will be settted by Myron H. Smith, who will continue the business at his factory, formerly occupied by the old firm.
Lawton, January 18, 1881.”
The defendant Walker, during the continuance of the co-partnership, did the most of the selling and looked after the business generally, and the complainant attended mainly to the manufacture of the mills and making them ready for sale.
' In 1878 complainant and defendant Walker took into their service the defendant Imus, and gave him as compensation a portion of the proceeds of the business. He continued in business for Smith & Walker, if not in partnership with them, until the firm of Smith & Walker was dissolved, as above mentioned. He had also sold mills for Smith & Walker during the seasons of 1872, 1873, 1876, and 1877 ; and on the dissolution of that firm he and Mr. Walker forfned a copartnership, and under the name of Walker & Imus have continued the business of making and selling fanning-mills, making Lawton their headquarters and place of business up to the present time. The complainant also continued in the same kind of business at his shop in Lawton until the time of filing his bill of complaint in this cause.
The mill made and sold by the complainant was the same as formerly sold by Smith & Walker, and contained, besides the improvement patented, some other’ changes made by Smith & Walker, and had, most of the time they were in business together, painted thereon the words, “ Smith’s Grain Grader & Seed Separator: Smith & Walker, Lawton, Michigan; Warranted.” Omitting the words “Smith & Walker,” the complainant continued to use the same words upon his mills after his dissolution with Walker. The defendants also used the same mill Smith & Walker had been using when they commenced business, and had painted thereon : “Improved Grain Grader & Seed Separator; Walker & Imus, Lawton, Michigan ; Warranted.”
Both complainant and defendants continued to make and vend in this State the articles severally made by them ; the complainant selling and frequently offering to sell to the ' defendants mills of his manufacture, knowing the use to be made of them, and that they would be sold by them with the inscription of the words they used thereon, until the 28th day of July, 1882, when complainant filed his bill of complaint alleging that he originally started ..the fanning-mill business in which he and Walker were subsequently engaged, and prosecuted it alone until 1870, during which time the mill was known as “Smith’s Lawton Mill,” and under that designation had acquired a good reputation, his mills being sold principally in this State, and he had from small beginnings gradually secured a good business in the fanning-mill trade ; that in 1870, after securing a patent for a certain improvement, he gave to his mill the name, “Grain Grader & Seed Separator, Lawton, Michigan,” and had these words painted on each mill thereafter manufactured and sold by him ; that said mills are distinguished from all other mills in that manner; that such name and words originated with him, and that his mill with such name or designation, and the place of manufacture stenciled thereon, through his labor and capital, and industry and perseverance, has acquired a valuable reputation throughout the State, and he is enabled thereby to make large and profitable sales thereof, and that said name and place of manufacture stamped on said mills constituted his trade-mark in said business; that about 1870 he made arrangements with defendant Walker to assist him in carrying on the business, and that he and Walker continued to manufacture and sell said mills, Walker receiving a share of the profits for his services, and for machinery purchased by complainant and Walker of Walker, until the close of the year 1880, when he complainant) purchased from said Walker all his interest in the machinery and business, and that since that time complainant has conducted the business alone, and has been the sole owner thereof; that said Walker never had any interest in the mill except to share in the proceeds of the manufacture and sale thereof from, year to year, to pay for his services ; that immediately after he purchased the said Walker’s interest as aforesaid, Walker & Imus went to Otsego, in same State, and engaged in the manufacture and sale of mills, using thereon the following words in painted letters, “Grain Grader & Separator, Improved, Lawton, Michigan ; Warranted,” and that they continue so to do; that, as a matter of fact, said firm of Walker & Imus do not, and have not, manufactured any mills at Lawton ; that the name used on complainant’s mill was first brought into use and adopted by him to designate his mill, and is and was his “trade-mark,” and that defendants have no right to use the same upon their mills, neither have they any right to use wagons in the sale of their mills lettered with the words “Lawton, Mich.;” that the use of said trade-mark upon their mills, and said words upon their wagons, is an infringement upon the rights of the complainant, and a deception upon the public, seriously injurious to complainant; that the sale to him by W'alker vested in him the good-will of the business, and that the manufacturing and sale of the mill vended by Walker & Imus is a fraud upon the complainant and an infringement upon his right to the good-will of his mill and the business carried on by him and Walker, and upon his trade-mark, as claimed above; that the complainant has suffered great injury by the sale of defendants’ mill, under representations by them that theirs was the mill made and sold by complainant, and by other fraudulent devices, calculated to falsely represent their mill to be the same mill as complainant’s. The bill prays for an in junction restraining defendants from mak ing or vending the claimed assimilated mill of defendants, and preventing them from using the pretended trade-mark, and for an accounting to complainant for his alleged injury ' in the premises.
The defendants, in their answer to the bill of complaint, say that Ledyard & Aldrich, Bonsteel & Co., and William H. Potts & Co. were all manufacturers of fanning-mills at Law-ton many years before 1870, and that the complainant acquired what knowledge he had of the business by working as a hand in the shops of some of these parties, and some time previous to 1870 set up business for himself in a very small way, and so continued until 1870, not making in any one year more than one hundred and twenty-three mills; that the mill he made was modeled after those that had been made in Lawton for many years before, by those in whose employ he had served ; that there was no originality in the mill made by complainant, except such as he secured letters patent for, by way of an improvement hereinbefore referred to. They deny that such improvement was patented under the name and designation of “Grain Separator,” but aver that the patent was obtained for an improvement in a class of machines designated at the patent-office and elsewhere as “Grain Separators & Graders;” they deny that the complainant, on obtaining his letters patent, adopted and applied to his mill the name “Grain Grader & Seed Separator, Lawton, Michigan,” or that these words were afterwards stamped upon each mill sold by him, or that complainant, after or during 1870, manufactured any mills by himself or others, but aver that he entered into a partnership with defendant Walker to manufacture such mills, and that such partnership and business continued uninterruptedly until it was dissolved in 1880, and that during said partnership the defendant Walker, with the complainant, designed names and marks to put upon their mills, and that while their mill was known by the name of the class of machines to which it belonged, and generally but not always had painted thereon with them the words “Grain Grader & Seed Separator,” to show that it was adapted to and could do other work than merely separating the chaff and dirt from the grain, yet at no time were these words adopted by the said Smith & Walker as their trade-mark nor as the trade-mark •of the complainant, but, on the contrary thereof, at different times they adopted different names for their mill, at one time calling it the “Queen of the West,” and at others such other name as they thought might be most useful in the business, but without any intention or understanding that it should be their trade-mark. They further aver that said Smith & Walker never had any trade-mark. They further aver that said words “Grain Grader & Seed Separator,” the same being merely descriptive of the work done by said mills, and being also in use by other manufacturers of machines to designate and make known the kind of work done by it, could not be legally appropriated by said Smith or said defendants as a trade-mark.
The defendants admit that Walker sold his interest in the machinery to complainant, but deny .that Walker sold to said Smith his interest in the business of making fanning-mills at Lawton or elsewhere, or that there was ever any understanding between Smith and Walker to that effect, or that the defendants have injured the business of complainant, or that he has suffered any damage at their hands. Defendants further say that the direction of the business is from Lawton, and always has been, where Mr. Walker resides, and that about the same method pursued by Smith & Walker in making and getting their mills upon the market has been adopted by Walker & Imus. They further say, in competing for the sale of their mill, they have never allowed their agents to take any unfair advantage of the complainant. Notwith. standing complainant’s competition has been strong, they have always treated him and his business with courtesy.
A very large amount of testimony was taken upon both sides, much of which might have been very properly omitted, and thereby a large expenditure of money would have been saved to the parties, and the courts relieved from a great deal of unnecessary labor.
The cause was heard on the pleadings and proofs taken at the Yan Burén circuit, and the injunction prayed for was granted, and an accounting ordered taken before a circuit court commissioner of the number of mills sold by defendants, and the number thereof containing the words painted thereon, “Grain Grader & Seed Separator; Lawton,. Michigan,” and to take an account of the profits thereon. The' following is the decree to make the injunction perpetual, and the terms thereof:
“This cause coming on to be heard upon the pleadings filed and the proofs taken therein, and the pleadings and proofs having been read and the counsel for the respective parties having been heard, and the court being fully advised in the premises, on consideration thereof doth adjudge and decree that the said defendants, Peter Walker and James H. Imus, and their agents, employes, and servants, be perpetually restrained (1) from making, painting, or stenciling, for sale, and from selling fanning-mills marked, painted, or stenciled in imitation of the complainant’s fanning-mills; (2) and from using upon fanning-mills manufactured or sold by them, or either of them, the words ‘Grain Grader & Seed Separator, Lawton, Michigan,’ in imitation of complainant’s fanning-mills ; (3) and from selling or offering for sale fanning-mills not manufactured at Lawton, Mifchigan,. in whole or in part as and for the Lawton fanning-mill;. (4) and from and in every manner representing the complainant to be dead or out of business, or that they have succeeded him in business.”
The defendants both appeal to this Court.
The complainant does not claim or charge expressly that defendants are or have been using his patent in their mills, or have infringed upon it; but his claim is that he is the owner of what he calls his trade-mark, consisting of the words hereinbefore given, and the good-will of the business, which had been brought into existence by the energy and skill used by himself and the defendant Walker; and that he has been deprived of the same largely since he dissolved his partnership with Walker by the defendants, who have pirated both, by assimilation, misrepresentation, and fraud in making and selling their mills.' And counsel for complainant further insist that the facts established by the evidence clearly show that Smith was the original owner of the enter prise of manufacturing and selling fanning-mills at Lawton, and that Walker, while he was in business with complainant, was merely the' tenant of what Smith put in, including the good-will and trade-marks of the business ; or, if this be not so, if Walker is to be regarded as the owner of any interest in the foundation of the business, then he transferred it to Smith at the 'time of their dissolution ; and that this latter position is strengthened by the application of the doctrine that when one partner sells out his interest in the corporeal effects of a going trade, he, by implication, sells his interest in the good-will of the business.
Lawton at an early day, it appears from the record, became noted, if not famous, for its manufacture of fanning-mills, and the “Lawton Mill” seems to have been, to a greater or less extent, a term applied indiscriminately to all of them by the manufacturers, among whom the plaintiff seems for many years to have ranked least; and so far as the term “Grain Grader Seed Separator” is concerned, the complainant seems never to have applied it to the mill he made, except on án occasion of a fair held at Paw Paw, where he was exhibiting his mill for inspection and premium, until' after he entered into partnership with Walker for the purpose of making and selling fanning-mills; that previous to that time the testimony tends very strongly to show that neither the plaintiff’s mill, nor the amount of business he had done in making and vending the same, had been sufficient to give it any peculiar characteristics, reputation or advantage over any other mill made at Lawton, by reason of any particular name or mark used thereon, or for any other reason.
The trade-mark claimed by the complainant as his exclusive property seems never to have received a registration at the patent-office; neither does the record show that complainant ever made any application therefor. Such being the fact, so far as the relief complainant asks for relating to the alleged infringement of his claimed trade-mark is concerned it depends entirely upon his common-law rights. By the common law, “every manu. facturer, and every merchant for whom goods are manufac tured, has an unquestionable right to distinguish the goods that he manufactures or sells by a peculiar mark or device, in order that they may be known as his in the-markets for which he intends them, that he may thus secure the profits that their superior repute, as his, may be the means of gaining.” And it is well settled that a manufacturer or vendor may, by a priority of appropriation and adoption of names, marks, letters or other proper and appropriate symbols, so distinguish his manufactures from others as to acquire a property therein as a trade-mark; but not, however, until he has given it out and published it to the community as his, and that he has adopted it as an original thing, or has in some way become the lawful owner thereof. Stokes v. Landgraff 17 Barb. 608; Williams v. Johnson 2 Bosw. 6; Amoskeag Manuf’g. Co. v. Spear 2 Sandf. 599.
Chief Justice Cooley, in his work on Torts, says : “In general, a man may adopt for a trade-mark whatever he chooses ; but when he asserts and seeks to enforce exclusive right therein, it becomes necessary to ascertain whether it is just to others that this be permitted. If the name, device, or designation is purely arbitrary or fanciful, and has been first brought into use by him, his right to the exclusive use of it is unquestionable.” Cooley on Torts, 361, and see cases cited. “But the mere designation of a quality cannot be appropriated as a trade-mark.” Caswell v. Davis 58 N. Y. 223; s. c. 17 Am. Rep. 233; Candee v. Deere 54 Ill. 439; Burleev. Cassin 45 Cal. 467; Taylor v. Gillies 59 N. Y. 331. “Neither can any general description by words in common use, of a kind of article, or of its nature or qualities, * * * nor can the name of a place be appropriated as a trade-mark as against others who may see fit to engage in the same business at the same place.” A trademark, when adopted, may be lost by being suffered without objéction to come into common use in the trade, and rights under it may be waived as against those using it with the knowledge of the owners, and without objection, though such use has not become general, and it can only be sold with the business to which it was intended to apply. Cooley on Torts, 363, 364, and cases cited; Van Beil v. Prescott 82 N. Y. 630.
Complainant does not claim to have used on any mill he sold previous to obtaining his patent the words he claims as his trade-mark. He says that the words he used before that were “The Lawton Mill.” I do not think the record furnishes any showing that complainant ever adopted these words as a trade-mark for his mill business. It does not show any difference in the construction of mills made at Lawton by plaintiff and those made by other parties prior to 1870; neither do I discover any intention on the part of complainant to make the words “The Lawton Mill,” his trade-mark, and therefore dismiss the consideration of any such claim made previous to complainant’s obtaining his patent in 1870.
Previous to that time, and on the 29th of March, 1870, complainant formed his copartnership with defendant Walker for the purpose of manufacturing fanning-mills at Lawton, and his partnership with this man in this business and at this place continued uninterruptedly until the 18th of January, 1881. Previous to the commencement of this partnership, and in September, 1869, it appears that Smith, after he applied for a patent on an improvement he had been making, painted upon the mill he manufactured, and which contained the improvement, the words “Smith’s Grain Grader & Seed Separator, Lawton, Michiganand that said mill containing said improvement, and such other improvements as Smith & Walker made, and of which there were several, was the kind that they made- and sold during the existence of their copartnership, using the same words stenciled upon the mill.
It is claimed by the counsel for complainant that the words above quoted were his trade-mark; that he had appropriated and adopted them as such ; that he had the legal right so to do, and they were his property, and he had the exclusive right to use them upon fanning-mills; that Walker, by his joint use thereof as complainant’s partner in the business to which they had been applied, acquired no interest in them, although by the efforts of the firm, and principally through his management, the business during the ten years, of its existence increased seven-fold, and the profits in the same ratio ; that Walker never acquired any interest in such ■trade-mark, nor in the good-will of the business thus built up; that if he ever had any such interest he transferred it to. complainant when the firm of Smith & Walker was dissolved,, and Walker gave his bill of sale of property to Smith;. and that these conclusions necessarily follow from the several agreements made between the parties, hereinbefore stated,, and the other facts appearing in the case.
The testimony of complainant as to the terms of the contract of copartnership between complainant and defendant Walker, not contained in the written agreements, does not appear to be very much relied upon by complainant’s counsel. That testimony was not admissible under the pleadings in the case. The written contracts contain the agreements of the parties upon that subject, and their rights thereunder must be determined thereby.
In the view we have taken of the case thus far, it will readily be seen that the exact relations between complainant and defendant Walker, and the rights acquired thereunder, have very much to do with the equitable rights of these parties. The idea that Walker, under the agreement between him and complainant, was a mere “tenant of what Smith put in, including the trade-marks and good-will of the business,” or that either of the parties had any such understanding, cannot be entertained. It would be doing violence to the simplest construction that can be given to the language used in either of the agreements made by the parties. The relation created by either of the written agreements between the parties was that of copartners, and the business included in the enterprise was that of making fanning-mills. The terms were briefly but clearly stated, and the rights of the parties thereunder must be determined by the law governing that relation. The copartners had agreed to make fanning-mills. No particular mill or kind was named, but the expense 'thereof for stock, manufacturing, and selling the mills was to be shared equally. Smith was to furnish- shop, tools and barn, and Walker was to pay one-half of the rent of the same. In the first and second agreements no particular place was specified, but in the third, the shop and barn were to be those owned by complainant in Lawton, and the partners were to share equally all gains, profits and tokens, and all losses arising in the business. The mill which it was decided they should make was that which the complainant was then manufacturing, and for which he had secured, or was about obtaining, letters patent for an improvement. It was to this mill, with this new improvement made thereto, the ■complainant says he applied to and adopted for the words which he calls his trade-mark, viz., “ Grain Grader & Seed ■Separator.”
The complainant, in describing this improved mill which the copartners were to make, says in his bill of complaint: “ The mill so known and designated is constructed different from any other mill manufactured, and in its operation works differently, and cleans grain in a much better manner than any mill manufactured within the knowledge ” of the complainant, “and has advantages for cleaning grain not used or adopted by any other mill or manufacturer ; * * * that •after he applied for his patent, and soon after or about the time he procured the same, he made arrangements with Peter Walker to assist him in the manufacture and sale of his said mills at Lawton, Michigan, so known as the ‘ Grain Grader & Seed Separator,’ and by such arrangements gave to the said Walker a share of the profits in the manufacture and sale of such mills, and he and said Walker, under such arrangements duly made from year to year, duly manufactured ■and sold such mills during each year thereafter until sometime about the year 1874, when he sold to said Walker a portion of the machinery in his said shops, and afterwards ,he and the said Walker purchased other machinery and put in such shops, and under such arrangements, made from year to year, he and the said Walker continued to manu facture and sell such mills until about the close of the year 1880, when he purchased from said Walker all his interest: in such machinery and business.”
From this statement of complainant it clearly appears that the new or improved mill was the' one complainant formed the copartnership to manufacture and sell, and not the old one before then made by the complainant. It was this improved mill that was to be made and introduced to the public by the firm, and for which its favor and good-will was yet to be sought and secured.
The complainant, it will be noticed, does not speak of Walker’s business relations with him through these ten or eleven years of toil and anxiety as those of partners, nor intimate that he had acquired at any time any interest in the mill or even in the business, save as a mode of payment for Walker’s services, which he claims were rendered only as an assistant to complainant in the sale of mills, and in the conduct and management of the business. He does not even allude to the written agreements, from which alone the character of the business was to be determined and, as we have said, the rights of.the parties were to be adjfisted; but whatever the character of the business may be found to be,, he does, however, admit its continuance until the dissolution, of the copartnership in 1881.
I think it satisfactorily appears that it was in the conduct. and management of the business of making and vending-their new and improved mill by the firm of Smith & Walker, with such subsequent improvements made therein by them, and in which the defendant Walker so largely participated, that all of the good-will now claimed by complainant accrued, and all the gain and profits therefrom were-derived, and that each of the copartners was entitled to an-equal share therein, and that they became each entitled to share equally in the ownership in said mill, exeept as to the interest in the patented improvement. This,, however, it would appear had been so much changed and improved in the modifications made by the firm during the period of its existence and business as to be-almost entirely eliminated from the construction of the mill finally made and sold by tbe firm. Such was the situation when the dissolution of the firm of Smith & Walker occurred. I find.nothing in the written notice of dissolution signed by the parties to the firm evidencing any sale or transfer of the defendant Walker’s interest in the business, or of his interest in any trade-marks used in the business or in the good-will thereof, to the complainant; neither do I find anything contained therein, or in the bill of sale made by Walker to complainant of property, on the dissolution, from which such transfer can reasonably be implied or fairly inferred. If, as counsel for complainant claims, Mr. Walker had transferred all his interest in the business of the firm, and reconveyed to complainant all the property he bought of him at the beginning and during the continuance, of the copartnership, there would be more reason for the ■ conclusion reached by counsel; but his premises not being supported by the proofs, his deductions therefrom could hardly fail to be erroneous. While the papers alluded to contain a notice that the complainant will "continue the business at the place formerly occupied by the firm, it does not say when Mr. Walker will continue it. Nor is there any intimation, that he will discontinue it, or cease to use the interest he retained, and had not transferred to complainant, or otherwise disposed of to any one.
The statement contained in the complainant’s bill to the effect that the defendant Walker, on the dissolution of the copartnership, transferred all his interest in the business to the complainant, is not sustained by the proofs, but on the contrary thereof I think there is some testimony showing that such was not the fact; that the copartners themselves contemplated, at the time of the dissolution, each of the co. partners would thereafter carry on the business in which the company had been engaged. In the division of the property thus made between them each took a portion, which would have been useless except in'the business for which it was made and intended. The firm had also quite a large number of mills then on hand and remaining unsold, which were equally divided between them. The engagement for a part nership by Walker with defendant Imus, for the purpose of subsequently conducting the same business, was made even before the firm was dissolved, and the testimony tends strongly to show this fact was known to complainant; and after such new firm had commenced doing the same kind of business as the old, the complainant proposed to manufacture for them a large number of the mills to be used in their trade, and actually did sell them some upon which defendants stenciled the same words claimed by complainant as his trade-mark, and used on the Smith & Walker mills; and it further appears, by the letters written by complainant to Walker, offered in evidence, that the complainant was very anxious to make such sales to the defendants of his mills for the defendants’ trade. Among these letters appears the following written to Walker while he was engaged in the northern part of the State making sales of the Walker & Imus mills:
“ Traverse City, Mich., May 27, 1881.
P. W. You thought you would like to get about thirty of these mills. I would like to sell yon the entire lot of mills, sales that have been made here, and you take charge of the peddlers. They are worth more to you than they are to me. Please state what you will give for them, and Í will give you an answer; and if I sell to you, be ready to close contract within twenty-four hours after I-receive your proposition. I think they can do good work if properly handled, but I am anxious to get out of it, as I am satisfied that everything I do this year will work against m'e. Please answer soon. M. TI. Smith.
P. S. I think I will go home on Monday or Tuesday next. Try and make arrangements to take them, and we will make contract when I go home. Please consider this before you ship your next car-load. M. H. S.
Please thoroughly consider this matter before you order your next car-load. I want to sell.”
“ Traverse City, May 31, 1881.
P. W. Your card rec’d. I can but still hope that you will purchase my mills and material, as it is worth more to you than any one else, and if I do not sell it will be my ruin. Please make me the best offer you can, and I will come on first train and make the contract, but do let me get out of this business. I would rather lose part now than to lose all in the end, and you certainly can make well out of it. I have .mills enough finished here to relieve your hurry in shop there if you take them. Please do not. refuse, but make me an ■offer and I am sure we will come to a bargain. If I could possibly carry it through I would not be so anxious to sell, but I cannot, as every move I make is a blunder. I will not require but little down, and will store any stufE you may have left till next spring. The way I will let you have it there can be but little risk on your part, as it cannot be replaced at the price; but let me hear from you that you will take it, and there will be no more delay on my part, but I will attend to it at once. Yours, NT. H. Smith.
P. S. Do not get out of patience, but do try and think favorable of this matter. M. H. S.”
Upon a careful reading of all the testimony upon this subject I cannot avoid the conclusion that it was in the contemplation of both Smith and Walker, at the time they dissolved partnership, that each would thereafter carry on the business of making and selling the said fanning-mill they had been vending, and the reputation of which had been built up by their joint efforts in the firm of Smith & Walker. • If the words “Grain Grader & Seed Separator” ever became a trade-mark in the business of manufacturing and selling fanning-mills, it was made so by the use that the firm of Smith & Walker made of it, and whatever of value there was in such trade-mark, if any, like that of the good-will claimed ■by the complainant to be exclusively his, belonged alike to ■each member of the firm on its dissolution. And the law in such cases gives to each member of the firm, when it is ■dissolved, the right to carry on the old business in competition with the other, so long as neither can be made liable upon the contract of the other. And such I understand to ■be the rule in the case of partnership trade-marks and goodwill of a business, so long as the same remain undisposed of by the firm or its members.
This record does not present the rights of a retiring member of a firm which continues after his withdrawal, and we •cannot consider the argument of counsel based upon that •theory. A partnership trade-mark may be and often is .an important element in the good-will of the company business, and is an asset of the firm ¿ and unless otherwise provided in the contract of copartnership, on its dissolution may bo sold by the partners, or used by either of them thereafter until otherwise disposed of. The complainant exercised his right in this case to use it, but denies that right to the defendant Walker, and in this denial he is wrong.
This substantially disposes of this case. It is claimed,, however, by counsel for complainant that, independently of the charges in the bill, of defendants’ infringing the complainant’s right to the exclusive use of the said trade-mark and good-will of the business of Smith & Walker, he may still maintain his case against the defendants for the fraud committed by them and their agents in. falsely representing to his customers and the trade that defendants have purchased the complainant’s business and interest in the mill business ; that the complainant has retired from businessthat the mill defendants sold was the same as the one manufactured by complainant; and sometimes by representing complainant to be dead, and in various ways assimilating the complainant’s mill, or the mill made and sold by himthat by such fraudulent practices and misrepresentations the complainant has been greatly injured in the reputation of the mill he makes and sells, his sales greatly curtailed thereby, and very much to his damage.
If all these averments were true, and supported by the proofs, the complainant has his remedy at law, which would seem to be adequate.
But, aside from this, these averments are not the grievances of the complainant’s bill; they are matters in aggravation of the main charge or substance of the. complaint, which is stated in the language of the brief of complainant’s counsel, ■and I think correctly so, “pirating complainant’s trade-mark and good-will ” of his manufacturing business, and to prevent which he asks relief, and claims damages for the injury sustained thereby.
Of course, if the complainant has no exclusive right to what he claims as his “ trade-mark,” and the good-will he seeks to defend and protect, there is no occasion for considering the other charges, which are only in aggravation of the alleged infringement of that right.
I think the doctrine applicable to the class of cases within which the complainant intended to bring his case is very well stated, under the authorities, by his counsel, wherein he says: “ It is that one man shall not, in his own business, simulate the business of another by adopting the marks and tokens employed by that other to identify his productions, and so avail himself of the reputation and credit which the other has acquired to his own profit and advantage.” But this doctrine is not applicable to the facts upon which the complainant’s case rests. The want of exclusive ownership of what is claimed by the complainant in this case has rendered unnecessary the discussion of whether the words claimed as a trade-mark could legally be adopted and made such. They clearly expressed the uses and purposes of the class of machines to which the complainant’s belonged, and were also indicative of what the mill could do; and it is difficult to see what other purposes could have been intended by their use in connection with the fanning-mill, or upon what principle their exclusive application could have been made by the complainant or Smith & Walker. Walker says they never were adopted or used as a trade-mark for the mill or business; and that they were so intended by either of the partners seems never to have been known or so understood by any person whose business it was to make or sell the mills while the firm was in existence, unless it was by Mr. Smith. He certainly appears to have been very reticent upon a subject the publication of which would, as he claims, have been of such great pecuniary advantage to both him and to the firm of Smith & Walker. It is very difficult to reconcile much of the testimony in this case with what are claimed to be the facts. Smith does not claim, however, that the words constituted a partnership trade-mark, and I very much doubt, under the authorities cited by counsel in this case in their briefs, if the words could be legally adopted and used to the exclusion of their use by others as a trade-mark for the complainant. But in the view I have taken of the case, whether they could or not is of little consequence.
As the case comes before us upon this record the decree at the circuit, I think, should be reversed, the injunction dissolved, and complainant’s bill dismissed, with costs of both courts to the defendants, and decree should be entered in this Court accordingly.
Cooley, O, J. and Campbell, J. concurred; | [
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Campbell, J.
This bill was filed in Shiawassee county, to correct a deed, and. remove certain incumbrances, so far as complainants’ rights are concerned, upon lands in that county once owned by their grandfather, John Derr, and intended by him, as claimed, for the joint benefit of complainants and their mother, Melissa M. Derr, one of the defendants.
On January 10th, 1857, John Derr made a conveyance of the land to his son Charles S. Derr, the father of complainants, but subject to stringent conditions against incumbering or alienating during the grantor’s life. On the 23d of January, 1862, a few months before complainant Pliny was born, there being some prospect that Charles S. Derr would go into the army, an understanding was had that the land should be secured in some way for his wife and family. Pursuant to this understanding John and Charles S. Derr, and their wives, joined in conveying the property to defendant Isaac O. Derr, who is a brother of Charles, for the sole purpose expressed, “ to convey the said land in fee to Melissa M. Derr, wife of said Charles S. Derr, and the heirs of said Charles S. Derr.” On this same day, and as a part of the same transaction, Isaac O. Derr and wife made, a conveyance, in which Melissa M. Derr was named as party of the second part, and which in the granting part conveyed the land “ unto the said party of the second part, and to the heirs and assigns, forever, of Mr. Charles S. Derr, husband of said second party; * * * the estate in said land to be to said second party for the period of her natural life, and remainder in fee to the heirs of said Charles S. Derr. * * * to have and to hold the said premises as described, with the appurtenances, unto the said party of the second part, for her natural life, and to the heirs and assigns, forever, of said Charles S. Derr.” At that time, complainants Calcina M. See and Amel E. Wightman were young children. Pliny was born September 12, 1862, a little less than eight months thereafter.
After this, Charles S. Derr (whose improvidence was a principal cause of this arrangement) and his wife Melissa, executed several mortgages on the premises to Isaac O. Derr and others. In 1876 an attempt to procure another loan from outside parties led to a refusal, on the ground of imperfect title in Melissa M. Derr. Thereupon a bill was filed in her name asserting that the deed was intended to be made to her in fee-simple, and asking to have it corrected so as to provide in that way. This bill was taken as confessed against complainants, two of whom are infants, and on a reference to a commissioner and on the sworn statements of John, Isaac, and Charles S. Deri', it was so decreed. This decree was made in February, 1877. Petitions were subsequently filed on behalf of complainants to set aside this decree for various grounds involving circumstances against equity in the conduct of the proceedings, and the decree' was afterwards opened, and the bill dismissed, with general acquiescence. •
The case now comes before us on complainants’ bill at issue on the facts. The court below decreed that the complainants were tenants in common with Melissa, each owning an undivided fourth part of. the estate by present title in fee. Isaac 0. Derr appeals, claiming by title under his mortgages in fee-simple.
If we look only at the deed made in 1862 by John and Charles Derr, and* their wives, to Isaac, it would be quite consistent with it to hold that it was intended to have Isaac place-the title in Melissa and the two children of herself and Charles S. Derr then living. As Charles Derr is a party to the deed, and therefore shown by it to be living, the word “ heirs ” must be construed as used in its popular and not uncommon sense as “ children,” and meant to so describe them. But inasmuch as the deed from Isaac was made out at the same time, and with the intention in all parties that it should be regarded as the means of carrying out their common purpose, it must be regarded as actually conforming to that purpose, unless some mistake is made out. The construction of this deed is plainly enough that Melissa should have a life-estate, and the children a remainder in fee. For that purpose it is a perfect instrument, using the word “ heirs ” as meaning children. This meaning, when used in reference to the heirs of a person appearing by the deeds.to be living, is sustained by many authorities, several of which are cited by counsel for complainants. The case of Heard v. Horton 1 Denio 165, contains a full discussion of the subject.
Upon an examination of the testimony we are satisfied that it was the original purpose in fact of the parties, when the transaction of 1862 took place, to give' a life-estate to Melissa M. Derr, and to give the children no more'than a remainder in fee. The deed made by Isaac at that time is open to no objection, except the formal one of using an ambiguous word, “ heirs,” to describe the children. Complainants do not dispute the intention of the parties to include Pliny as well as the others, and as a remainder may be lawfully created under our statutes in favor of an unborn child, and as such was the probable intention here, there is no legal obstacle to so declaring.
In our opinion the title of Melissa covered the whole land as a life-estate, but complainants are entitled to the remainder in fee, and the mortgages and transfers made by Charles and Melissa are void as to such remainder. The decree, therefore, is incorrect in recognizing any title whatever in fee in Melissa and also in recognizing a vested estate in present enjoyment in three-fourths of the land in complainants. The decree must be so modified as to declare the interests as a life-estate in Melissa in the whole property, and a remainder in fee in complainants after such life-estate, and its various provisions must be so changed as to conform to that holding.
As the chief controversy arose out of the assertion by Isaac O. Derr, the defendant who appeals, of a right in denial of any interest whatever in complainants, and as the costs in equity are in our discretion, we think that the decree, as modified in this Court, should leave the costs below as decreed there, and grant no costs to either party in this Court.
The other Justices concurred. | [
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Per Curiam.
The Court is not satisfied that the action on which this application is based can be held to be action taken and concluded under the statute, but think before the courts can interfere there must be new action. Act 38 of 1883. | [
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Champlin, J.
Defendant was garnished by plaintiff as a debtor to one Xavier Dollinger. The garnishee made disclosure, and a statutory issue was framed, which came on for trial before the court without a jury, who, upon written request for a special finding, found and filed the following written finding of facts and law:
The defendant Dollinger has for several years been engaged in getting out wood, timber, etc., for the Calumet & Hecla Mining Company. In the fall of 1881 he became and was indebted to different parties in different amounts, among others to the parties who intervene here, Joseph Wertin, Joseph Wertin, Jr. and George Wertin; and on the 8th day of Octobei’, 1881, the indebtedness to the said Wertins was $20,838.25, they being the principal creditors. The methods of doing business between Dollinger and the Calumet & Hecla Mining Company were as follows: It was agreed between them that said Dollinger was annually to get out wood, timber, material, etc., for the company; that the amount needed and the px-ice for the same was to be determined each yeax*, when a nxemorandixm in writing of such yearly amounts and the terms thereof was to be made. Such arrangement was to continue until either one of the parties desired to discontinue it. This arrangement had been in force for several years, and a further continuance was anticipated by both.. At this time the amount needed for the succeeding year had been determined, and Dollinger and the company were about tO' reduce to writing the arrangement between them for that year. Dollinger needed money or advances. He made arrangements with the Wertins for such money and advances,, and execxxted to them two mortgages, on that date, for the amount named; one a real estate mortgage, the other a pex-sonál property mortgage. The indebtedness to the Wertins was for supplies and goods sold, and also largely for indoi'sements made by them for the benefit of Dollinger in carrying on his business with the Calumet & Hecla Company. Under and by virtxie of the arrangements entered into between the Wertins and Dollingex-, the Wertins were to advance money to cax'ry on the business of the latter, and. the px’oceeds of the contracts with the Calunxet & Hecla Mining Company wex’e to be paid over at once, and belonged to the Wertins. Advances were made by the Wertins, and also further accommodations given by them in the way of indox’sements to Dollinger, and all moneys earned by Dollinger upon the contracts with the Calumet & Hecla Mining Company were received by the Wertins, and they did in fact advance to Dollinger what money he had and needed. In the spring of 1882, another mortgage was made by Dollinger to the Wertins, — a personal property mortgage ; the former real estate mortgage remaining, and the new personal property mortgage to take the place of the other; and thereafter the parties proceeded as before. The chattel mortgages were duly filed in the proper office, and have been kept alive continuously by proper renewal affidavits made and filed. The real estate mortgage was duly recorded in the office of the proper register of deeds on the 10th day of October, 1881.
The mortgages are attached as exhibits and made a part of the findings. The chattel mortgage bearing date the 8th day of October, 1881, covered certain personal property then in existence as such, and, in addition thereto, upon all the hay and potatoes, and all wood, stull and other timber to be cut or raised by said Dollinger during the-continuance of the mortgage, from any and all lands owned by him. This mortgage further provided that said Dollinger should cut, haul and market the wood and timber so cut and to be cut from said lands, and that all the proceeds of said sales should be immediately turned over to said Wertin & Sons, to be by them applied towards the payment of said indebtedness ; and said Wertin & Sons' agreed.that they would apply all moneys received, first, to the payment of such note or notes mentioned in said mortgage as said Dollinger should direct, and that they, the said Wertins, would wait for the balance due them for merchandise until all of said notes were paid.
The chattel mortgage, bearing date the. 5th day of April, 1882, contained the following :
“ It is hereby expressly understood and agreed that said Dollinger should cut, haul and market the wood and timber to be cut as hereinabove provided, and that all the proceeds of such sales shall be immediately turned over to said second parties, and shall be by them applied towards the payment of any indebtedness hereunder, absolute or contingent; and said Dollinger hereby agrees that if any moneys shall be collected by him for the sale of any such wood and timber, he will immediately turn the same over do said second parties. It is also expressly understood and agreed that all the hay and potatoes which shall be raised by said Dollinger during the continuance of this mortgage in force shall be sold, and the proceeds disposed of in the same manner as is herein-above provided for the proceeds of the wood and timber; and that this mortgage is intended to cover all the hay and potatoes which shall be raised by the said first party while this mortgage is in force.”
The special finding proceeds:
“In the winters of 1881 and ’82, ’82 and ’83, and ’84, Dollinger got out wood and timber for the Calumet & Hecla Mining Company, under memorandums of contracts, copies of which are hereto attached. The Wertins and Dollinger both informed the Calumet & Hecla Mining Company that all moneys earned by Dollinger were to be paid to the Wertins, and that the same belonged to the Wertins. January 16, 1882, the Wertins served upon the Calumet & Hecla Mining Company the notice hereto annexed, marked ‘ Gr,’ namely:
‘Hancock, Mich., October 26, 1881.
Calumet dk Hecla Mirig Co., Calumet, Mich. — GIentlemen : You are hereby notified that all moneys for wood and timber sold to you by Xavier Dollinger belongs to us, by a written agreement made between Mr. Dollinger and ourselves. You will therefore hold all such moneys subject to our order, and pay same to us.
Yours truly, Jos. Wertin & Sons.’
The plaintiff, Neumann, before he instituted these proceedings, had full knowledge of what the business relations were between Dollinger and the Wertins and the Calumet & Hecla Mining Company. He had notice that the Wertins claimed to be entitled to the proceeds of the material furnished by Dollinger to the Calumet & Hecla Mining Company, and that the Calumet & Hecla were paying all earnings to the Wertins.
On the 14th day of March, 1884, Neumann instituted these proceedings, and served the papers upon the Calumet & Hecla Mining Company. The company made answer, filed in this case (reference to which is here made), and gave the originals of the chattel mortgages and the real.estate mortgage before referred to, disclosing that there was due from the company to Dollinger at the time of the service of the writ, for materials furnished and delivered by Dollinger to the company, the sum of four thousand one hundred and eighty-three dollars and thirty cents, and asked to be advised to whom the indebtedness belonged ; that it was unable to say whether it belonged to Dollinger or the Wertins. The plaintiff, Neumann, was a creditor of Dollinger at the time the mortgages herein spoken of were made, and he obtained judgment against Dollinger on 'the 26th day of April, 1882, for $1491.46 damages, and $22.50 costs. The indebtedness from Dollinger to the Wertins, in consequence of the arrangement entered into between them, has been continuallyreduced. The object of the mortgages was not to defraud any one, but was in fact to enable the Wertins to realize the amount due them from Dollinger, and their further advances were the better to promote that object. The purpose of the Wertins was to secure themselves, and they took the course they did, deeming it the most feasible, and without the intent in fact to defraud any one. At the time of the service of the writ in this case upon the Calumet & Hecla Mining Cotnpany, Dollinger was indebted to the Wertins in the full amount disclosed by the company, as being due for materials furnished by Dollinger. Under these facts I find, as a matter of law, that the money due from the Calumet & Hecla Mining Company, for the material delivered to it by Dollinger, belonged to the Wertins; that if the Calumet & Hecla Mining Company had paid it to the Wertins, even Dollinger could have made no complaint, and could have, maintained no suit against the Calumet & Iiecla for it; that under the agreement between the Wertins and Dollinger the money was, in fact, the money of Wertin & Sons, as far as earned; that there was no fraud in law1 in the mortgages given by Dollinger to the Wertins.”
To which said finding of the said court the counsel for the plaintiff in due season duly excepted, and presented the following amendments to the same on the facts and the law, which amendments the circuit judge refused to incorporate into said finding, to wit:
(1) That A the time said first mortgages were made, and ever since then, Dollinger was indebted to said Neumann in the sum of thirteen hundred dollars and upward, for which indebtedness said Neumann obtained a judgment against said Dollinger in this court, on the 26th day of April, 1882, for fourteen hundred and ninety-one dollars and forty-six cents damages, and twenty-two dollars and fifty cents costs of suit, which judgment is now in full force and is now due, with interest, to said Neumann.
(2) That said three mortgages covered all the property, real and personal, owned by the said Dollinger at the time of their execution, and that at the date of the execution of the last mortgage said Dollinger owned no property of any description, except what was included in said mortgages.
(3) That at the time said mortgages were executed, and as Íart of the transaction, it was understood and agreed between •ollinger and the Wertins that the latter should receive all the avails of Dollinger’s business and property, and should furnish Dollinger all the money he needed for the support of himself and family while the arrangement aforesaid subsisted. That this arrangement was in fact carried out; the Wertins, from time to time, furnishing Dollinger such moneys, and receiving all such avails.
(4)That this agreement and transfer were made in trust for the benefit of Dollinger, and were void as against Neumann, his creditor.
(5)That this agreement and these mortgages so made were made with the intent to hinder and delay Dollinger’s credit-' ors of their lawful debts and demands, and hinder and delay the plaintiff Neumann of his lawful demand, and are, as to him, void.”
The plaintiff then filed exceptions to the findings as follows:
“ That the said circuit judge erred in not finding from the evidence the following, namely:
(1)That at the time said first mortgages were made, and ever since then, said Dollinger was indebted to said Neumann in the sum of thirteen hundred dollars and upward, for which indebtedness said Neumann obtained a judgment against said Dollinger, in this court, on the 26th day of April, 1882, for fourteen hundred and ninety-one dollars and forty-six cents damages, and twenty-two dollars and fifty cents costs of suit, which judgment is now in full force, and is now due, with interest, to said Neumann.
(2)That said three mortgages covered all the property, real and personal, owned by said Dollinger at the time of their execution, and that at the date of the execution of the last mortgage said Dollinger owned no property of any description, except what was included in said mortgages.
(3)That at the time said mortgages were executed, and as Eirt of the transaction, it was understood and agreed between ollinger and the Wertins that the latter should receive all the avails of Dollinger’s business and property, and should furnish Dollinger all the money he needed for the support of bimself and family while the arrangement aforesaid subsisted ; that this arrangement was in fact carried out,— .the Wertins, from time to time, furnishing Dollinger such moneys and receiving all such avails.
(4) That this agreement and transfer were made in trust for the benefit of Dollinger, and were void, as against Neumann, his creditor.
(5) That this agreement and these mortgages so made, were made with the intent to hinder and delay Dollinger’s creditors of their lawful debts and demands, and did hinder and delay the plaintiff, Neumann, of his lawful demand, and are, as to him, void.
“ That the said circuit judge erred in finding the following facts found by him, namely :
(1) It was agreed between them that said Dollinger was annually to get out wood, timber, materials, etc., for the company.
(2) Such arrangement was to continue until either one of the parties desired to discontinue it. This arrangement had been in force for several years, and a further continuance was anticipated by both.
(3) The indebtedness of Dollinger to the Wertins, in consequence of the arrangement entered into between them, has been continually reduced.
(4) The object of the mortgages was not to defraud any •one, but was in fact to enable the Wertins to realize the amount due them from Dollinger, and the other further advances were the better to promote that object.
(5) The purpose of the Wertins was to secure themselves, and they took the course they did, deeming it the most feasible, and without the intent in fact to defraud any one.
And that the said circuit judge erred in finding the propositions of law, and each of them, and also in ordering judgment for the defendant.”
The real parties to this suit are the plaintiff and the Wertins, who intervened upon the trial and have brought forward their proofs to establish their right to the indebtedness garnished. The evidence is all returned in the record before ns, and we think the facts stated in the first, second and third requests of plaintiff to find were established by the evidence, and will be treated here as having been found by the court. The fourth and fifth requests to find were propositions of law, and will be considered when we come to that branch of the case.
The findings of facts excepted to as not being supported by the evidence, we think were supported by the evidence in* the case. The court in finding facts is at liberty, not only to-embrace therein all facts directly proved, but it is its province to draw all necessary inferences from the evidence-which establishes the existence of facts to its satisfaction, and includes such facts in its finding. The wood delivered by Dollinger to the Calumet &• Hecla Mining Company was-under contracts made in November in each year, the memoranda of which, entered in the contract-book of the company and referred to in the finding, are as follows:
“ Memo’ of contract, entered in Mr. Duncan’s contract-book, under date November, 1881.
Xavier Dollinger to deliver in wood-yard at Torch Lake,, during the winter of 1881 and summer of 1882, 90 per cent., to be good hard wood and 10 per cent, to be good body maple, 4000 cords, all to be 4 feet long. For wood delivered in winter, to be $3.37-^- per cord; delivered in summer,, to be $3.50 per cord.
Copy of memo’ of contract, entered in Mr. Duncan’s contract-book, under date of November, 1882.
Xavier Dollinger to deliver in wood-yard at Torch Lake, during the winter of 18S2 and the summer of 1883, 3000? cords of wood, 90 per cent, to be hard wood and 10 per cent, soft wood, all to be 4 ft. long. Wood delivered in winter, $3.37i per cord; and wood delivered in summer, $3.50 per cord.
Copy of memo’ of contract, entered in contract-book under date of November, 1883. •
Xavier Dollinger to deliver in wood-yard at Torch Lake,, during winter of 1883 and summer of 1884, 3000’ cords of 4-ft. wood, 90 per cent, to be good hard wood and 10 percent. to be good body hemlock. Wood delivered in winter-will be $3.37£; wood delivered in summer will be $3.50 per. cord.”
The findings of facts by the circuit judge are in the nature-of a special verdict and conclusive in this Court, if there is evidence to support them. Tillman v. Fuller 13 Mich. 113; Lovell v. Willard, 28 Mich. 346; Shotwell v. Harrison 30 Mich. 179; Hubbardston Lumber Co. v. Bates 31 Mich. 158; Todd v. Davis 32 Mich. 160; Kling v. Fries 33 Mich. 275; Tower v. Detroit, L. & L. M. R Co. 34 Mich. 328; Thatcher v. St. Andrew's Church 37 Mich. 264; Clapp v. Born 41 Mich. 152; O'Connor v. Beckwith 41 Mich. 657; Mitchell v. Chambers 43 Mich. 150; Johnson v. Crispell 43 Mich. 261; Farrington v. Sexton 43 Mich. 454; Green v. Gill 47 Mich. 86; Mower’s Appeal 48 Mich. 441; Kundinger v. Detroit, &c. Ry. Co. 51 Mich. 185; Edwards v. Nelson 51 Mich. 121.
The only question open upon this record is -whether the conclusions of law found by the court are the proper results of the facts found. The plaintiff insists that the law arising upon the facts shows that the transfers and agreement constituted a trust for the benefit of Dollinger, and were void as against Neumann, his creditor, and that they were made with intent to hinder and delay Dollinger’s creditors of their lawful debts and demands, and did have that effect as to Neumann, and as to him are void.
That the debt to Wertin & Sons, secured by the mortgages and agreement, was bona fide, there is no doubt; and it expressly found as a fact that the money in the hands of the mining company belonged under the agreement between Dollinger and the Wertins, to the latter. The argument of plaintiff’s counsel ignores this fact, and assumes that the money garnished was not past indebtedness but future earnings ; that it was not an existing indebtedness from the proceeds of wood delivered, but an indebtedness yet to accrue under the contract, and he seeks to apply the doctrine that a mere possibility of future indebtedness, without any subsisting engagement upon which it shall accrue, cannot be assigned; citing, in support thereof, Drake on Attachment (4th ed.) §613; Mulhall v. Quinn 1 Gray 105; Jones on Chat. Mortg. (2d ed.) § 144.
But the authorities cited do not apply to the facts of this case. Thus Mr. Drake lays down the rule that a debt to become afterwards due may be assigned, but it is necessary that at the date of the assignment the contract out of which it is to grow should have some existence. A mere possibil ity of future indebtedness, without any subsisting engagement upon which it shall accrue, cannot be assigned. The debt may be conditional, uncertain as to amount, or contingent ; but to be the subject of an assignment there must be an actual or possible debt due or to become due. Here, at the date of the writ of garnishment, the debt was actually due, and arose out of an existing contract, and as found by the court belonged to the Wertins. The case cited from 1 Gray 105, was one of unearned wages, without any definite contract for service. Here the indebtedness is not for wages, but for wood sold and delivered. The section referred to from Jones on Chattel Mortgages relates to future wages or earnings. The debt from the mining company to Dollinger was not evidenced by writing, and could be and was verbally assigned to the Wertins. It is said -in Drake on Attachments § 6M, that where such verbal assent is given by the debtor, the assignment becomes complete, and the debtor is bound to pay the assignee, and he consequently cannot be charged as garnishee of the assignor. It is expressly found that there was no fraud in fact in the transaction, and we do not perceive any fraud in law. The Wertins agreed to make advances, not only to enable Dollinger to carry on his job, but for the purposes of supporting his family in the meantime and such expenses as he should necessarily incur. To secure them for such advances, and pay his indebtedness to them, Dollinger gave the mortgage security, and assigned the indebtedness from the company to him to' the Wertins. The arrangement doubtless serves to prefer the Wertins over the other crediters of Dollinger, but such preferences are lawful at the common law, and in this State are only forbidden when the debtor makes a common-law assignment for the benefit of his creditors. That statute, being in derogation of the common law, will not be extended to embrace cases not within its terms, and in the absence of an assignment upon which to operate has no effect.
The judgment of the circuit courtis affirmed.
The other Justices concurred. | [
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Per Ouriam.
This is an application for a writ of mandamus to compel the respondent to make provision for the payment of a township order. The relator is supervisor of the township of Lake. Lake was set off from the township of Reeder in 1882, and the following year the township ^boards of the two townships met to make an apportionment of rights, credits and effects of the original township, and agreed upon the sum of $1762.16 to be paid to the township of Lake by the township of Reeder. For this sum a township order was drawn and delivered. It was subsequently claimed that a mistake was discovered in the settlement, which made this sum $650 larger than it should be ; and on this ground the township authorities of Reeder declined to make provision for the payment of the order.
In response to an order to show cause, respondent relies upon the mistake. No explanation of the mistake is made by the papers, nor was any called for. No issue of fact is made, but the case is submitted on the answer.
On this state of the record, the Court can require no payment beyond the sum admitted to be due. If by mistake the settlement was erroneous, the proper correction might be obtained in equity; and on this record we must treat the mistake as conceded, and cannot compel the respondent to go further in payment than equity would require. But the award of the writ will be without prejudice to further action by either party. | [
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Champlin, J.
The respondent, Charles Yan Alstine, was convicted in the circuit court for the county of Hillsdale upon an information charging him, jointly with Charles A. Parker and Edward C. Cleveland, with the forging and uttering of a deed of forty acres of land, lying in the township of Somerset, in Hillsdale county.
The deed purported to be executed by Eleanor Yan Alstine, in the presence of Parker and Cleveland, and acknowledged by the grantor before Parker, as a notary public of Lenawee county. It bears date the 9th day of May, 1876. The legal title to the land at the date of the deed was in Eleanor Pelton. It was claimed by the prosecution that she was one and the same person with Eleanor Yan Alstine. She had for several years lived with the respondent, Yan Alstine, and the evidence showed that he treated her as his wife, and claimed her to be such; that she had united with him in the execution of a deed of land as Eleanor Yan Alstine, although she was never married to him by any formal ceremony, and her estate was administered after her death, which occurred in August, 1876, as the estate of Eleanor Pelton. She left as heirs at law two sisters, a Mrs. Oiddings and a Mrs. Wescott. She died testate, and her will was admitted to probate in Hillsdale county, an execu: tor appointed, her estate appraised, and the ordinary steps taken to administer her estate. At the time the executor made his inventory, the title of record to the southeast quar ter of the northwest quarter of section twenty-six, township five south, range one west, being in the town of Somerset, county of Hillsdale, appeared to be in Eleanor Pelton, and he included it in his inventory as property belonging to the estate. Afterwards, and in 1876, the respondent, Van Alstine, placed upon record in the office of the register of deeds for Hillsdale county a quitclaim deed of said lands, bearing date May 9, 1876, and purporting to have been executed by Eleanor Van Alstine to him, in the.presence of the other two respondents. It is claimed by the prosecution that this deed was forged by the respondent. The- case comes here upon exceptions before judgment.
The information contains ten counts. Counsel for respondent insists that the first nine are not sufficient upon which to convict the defendant, for the reason that they contain no allegations that Eleanor Van Alstine had any interest in the land.
Forgery was a misdemeanor at the common law. From the earliest times in the history of the criminal law of England statutes have been passed upon the subject. As early as 1413 a statute (1 Hen. V. ch. 3) was enacted which recited that many persons had been deprived of their property by false deeds, wherefore it was enacted “ that the party so grieved shall have his suit in that case,, and recover his damages; and the party convict shall make fine and ransom at the king’s pleasure.” Again, the English statute of 5 Eliz. ch. 14, § 2, prohibited the making or forging of any false deed, etc., “ to the intent that the state of freehold or inheritance of any person in lands, etc., shall not be molested, troubled, defeated, recovered, or charged;”' and the third! section fixes a penalty for any person to forge or make any false charter, deed or writing, to the intent that any person shall have or claim any estate or interest for term of years of, in or to any lands. The forgery of deeds was made felony, without benefit of clergy, by 2 Geo. II. ch. 25*. The- precedents framed under the English statutes, and. especially those under the second section of 5 Eliz. ch. 14, on account of the particular phraseology of the enactments, uniformly set out the title of the party whose estate in the land was intended to be molested. 2 Stark Or. L. 481; 3 Chit. Cr. L. 1062. The necessity of doing so is apparent from the provisions of the law. It is an essential ingredient of the offense, and must therefore be stated.
But our statute is more broad and general in its terms. It provides that every person who shall falsely make, alter, forge or counterfeit any deed with intent to injure or defraud any person shall be punished, etc. (How. Slat. § 9213), and § 9226 provides that in any case where an intent to defraud is required to constitute the offense of forgery, or any other offense that may be prosecuted, it shall be sufficient to allege in the indictment an intent to defraud, without naming therein the particular person or body corporate intended to be defrauded, and on the trial of such indictment it shall be deemed sufficient, and shall not be deemed a variance, if there appear to be an intent to defraud the United States, or any state, county, city, or township, or any body corporate, or any public officer in his official capacity, or any copartnership or member thereof, or any particular person. There is no statutory definition of forgery. At the common law it is defined to be the “ making of a false document with intent to defraud and the offense may be said to be complete when any person falsely makes any of the writings enumerated in the statute “ with intent to deceive in such a manner as to expose any person to loss or to the risk of loss.”
There is such a marked difference between the English and our statute upon the subject, that neither precedents nor decisions based upon the former can be of service or .authority under the latter, which, as we have seen, does not limit the operation of the statute to persons having interests in the same or other lands; and to so limit it would seem to be in direct contravention of the statute, — would greatly narrow its operation, and defeat its most important objects. It is apparent, upon the most cursory consideration, that fraud by means of a false or forged deed may be perpetrated, not only upon the owner of the land, but upon strangers to the title who are induced to rely upon the genuineness of the forged deed to advance or loan money upon the faith of the legal validity of snch instrument. It was long ago held that a person conld be guilty of forgery in signing his own name to a deed of land which he had already conveyed, when he antedated the instrument for the purpose of defrauding. 2 Buss. Cr. 322, 323. In this view of the statute it can neither be necessary nor advisable to set out in the information the title of the person intended to be defrauded, nor in what the forgery consisted. It is not necessary, for the reason that such facts are not essential ingredients of the offense. I do not consider it advisable as a matter of general practice to do so, because, if staged, the proof must corres-, pond with the averment, or the defendant must be acquitted. 2 East’s Cr. L. 988.
It was said in People v. Marion 28 Mich. 255, that it is proper to set out, in at least one count of -the information, with particularity, in what the forgery consisted; but the public prosecutor is not obliged to do so, and when he does, it is done ex mera gratia to the accused. I do not think it necessary that the information should contain any averment that Eleanor Yan Alstine had any interest in the land at the time jt is claimed the forgery was committed. The gist of the offense is the intent to defraud. The validity of the objection depends entirely upon the effect and operation of the statute upon which it is founded, and it is usually sufficient if the information is so framed that the offense is described in the words of the statute, or according to its legal effect and operation. Where the instrument alleged to have been forged is one enumerated in the statute, and appears to be complete on its face, to be effectual, all that is necessary is to aver that the act was done with intent to defraud. But how or in what manner the party was to be defrauded, is no ingredient of the crime, but is mere matter of evidence, which all the authorities agree need not be set out in the information. West v. State 22 N. J. Law 212, Archb; Cr. Pro. 23, 194; 2 East’s Cr. L. 989, § 59 ; The King v. Powel 2 W. Bl. 787; Taylor’s Case 1 Leach 215; Rex v. Goate 1 Ld. Baym. 737.
The land which this deed purported to convey had an actual potential existence, definitely described and located, and the deed on its face appeared to work some effect upon the property, and was complete in itself for that purpose. It did not require the aid of averments of extrinsic facts to render its deception complete. I do not think the distinction which counsel for respondent seeks to raise between executed and executory contracts exists. The test, whether the party can be guilty of a forgery, does not consist in determining whether the instrument forged, if genuine, would be of any force or effect. A draft, falsely made, is no less a forgery because the drawee has no funds, and is under no obligation to pay if the draft had been genuine. A deed falsely made by a grantor, after he had conveyed all interest in the land, is no less a forgery because, if genuine, it would convey no title. Forgery may be committed when the name forged is fictitious,"and l ean Fee'iiATeásoFlvliy íFShould be necessary ?o~!ave’r~what interest the alleged grantor, whose name is forged, had in the land described in the deed. In some cases it would be immaterial, and in others more matter of evidence, bearing upon the intent to defraud, as it is in this case.
The seventh and eighth counts were each objectionable on the ground of duplicity. Each charges the respondents jointly with the offense of forgery. The seventh charges them also with the offense of uttering the forged deed, while the eighth charges Yan Alstine alone with uttering it. This is uniting two substantive offenses in the same count, and is not permissible. It is claimed that the ninth count is bad for duplicity, but I do not think it is open to this objection. It charges the respondents jointly with forging the deed and ■certificate, details the particular manner wherein the forgery ■consists, and then avers that Yan Alstine falsely caused the deed to be recorded. I do not agree with counsel for respondent that this was an effort to charge that Yan Alstine uttered the deed knowing it to be a forgery. It is rather directed to the scheme of all three to defraud, and bears upon the question of intent. It is, in other words, an allegation of an act showing the intent of the parties charged with the forgery.
The tenth count is a compliance with the suggestion of Judge Christiancy in People v. Marion 28 Mich. 255, and is as follows:
“And the said prosecuting attornej' of said county, prosecuting as aforesaid, further gives the court now here to understand and be informed that heretofore, to wit, on the twenty-fifth day of August, A. D. 1876, at the township in the county of Hillsdale aforesaid, one Eleanor Yan Alstine died seized of certain real estate, situate in the township of' Somerset aforesaid, in the county aforesaid, and known and described as the southeast quarter of the northwest quarter of section twenty-six, town five south, range 1 west, and that afterwards, heretofore, to wit, on the sixteenth day of April, A. D. 1877, at the township of Somerset, in the county aforesaid, Charles Yan Alstine, Charles A. Parker and Edwin. C. Cleveland did falsely and feloniously make, forge and counterfeit a certain paper writing, being or purporting to-be a deed or conveyance from the aforesaid Eleanor Yan Alstine to tbe said Charles Yan Alstine of the aforesaid described lands, situate in the township of Somerset, in said county, and did then and there falsely and feloniously make, ‘forge and counterfeit on the back of the aforesaid deed or conveyance a certain other paper writing being or purporting to be a certificate of acknowledgment of the execution by the said Eleanor Yan Alstine of the aforesaid deed or conveyance from the aforesaid Eleanor Yan Alstine to the said Charles Yan Alstine before the said Charles A. Parker, a notary public in and for the county of Lenawee, and State-of Michigan, which said deed or conveyance was of a nature-proper to be recorded according to the law; and the same, together with the said certificate of acknowledgment, after-wards, to wit, on the sixteenth day of Api’il, A. D. 18T7, was duly recorded in the office of the register of deeds in and for the county of Hillsdale and State of Michigan, in Liber 72 of Deeds, on page 611, with intent to defraud, contrary to the form of the statute in such case made and provided,”' etc.
Against this count it is urged
1st. That respondent could not be convicted under it because the evidence showed that the title of the land was in Eleanor Poitou.
2d. If it should be held good, there is no proof that the forgery was committed in Hillsdale county.
Neither objection can be sustained. The evidence showed that Eleanor Pelton and Eleanor Yan Alstine was the same person, and, so far as that became material, the evidence, both from the witnesses of the People and the respondent, tended to prove that fact. The evidence also tended to prove that the forgery charged was committed in Hillsdale county. It was testified to by Mr. Pease that respondent told him that the deed was made out at his house in the spring or fore part of summer, 1876, at Somerset, Hillsdale county. At ■this time he showed witness the deed, which the witness identified as the one charged in the information to be a forgery. Eespondent had previously shown this deed to the witness Mercer, on town-meeting day, 1877, at the hotel in ■Somerset Center, and finally the respondent’s witnesses testify that the deed in question was made and executed at respondent’s residence in Somerset.
The other errors alleged pertain to the rulings of the court upon the trial, and to the charge of the court and his refusal to charge. The exceptions taken upon the trial were numerous, but I shall only discuss those referred to in the brief of counsel for respondent, and which they have considered of sufficient importance to call our attention to.
The first relates to the testimony of Thomas J. Hiller. It appeared from his testimony that he was a practicing attorney ■at Hudson; that he had known respondent for fifteen years or more, but had never been engaged by him in any profes-* sional capacity. He testified that he had a conversation with respondent; that respondent did not ask him professionally about his legal rights in connection with that statement; that he at no time told him in any shape that he wanted to employ him; that in this conversation a statement was made to him by respondent, and certain questions asked with regard to it, and upon which facts he gave him an opinion, but respondent gave no intimation that he wanted his assistance at all. The ■counsel for respondent objected to the witness stating the conversation, on the ground that it was privileged. The objection was overruled, after counsel for the People stating to the court what he expected to prove by the witness; and tne witness, after fixing the date of the occurrence as December, 1876, testified as follows:
“ I cannot give the exact language, but 1 can give the substance of it, and I think nearly the language. He came into my office and said, ‘ Squire, I want to talk to you.’ I stepped from the desk where 1 was writing, and we stepped into the back room, and lie took a chair and sat down in front of me, and I said, ‘ Charlie, what is it ? ’ He said : ‘ Some years ago my wife and I bought forty acres of land up there and took the title in her name. I paid all, or nearly all, that has been paid on it. There was an agreement between her and me when certain family matters were arranged she should deed the property to me. She is now dead. The deed never has been made, and I have not a scratch of a pen to show for it. Now, can I have a deed made out of the piece of land from her to me and put on record?’ I replied, ‘No, sir.’ He said, ‘ Why ? ’ I replied, ‘ Because it would be forgery.’ He said, ‘ How forgery ? ’ I replied: ‘ Because you change the channel of the title in it. It now goes by her heirs, and yon would change it to yours. Besides, if some one should write her name on the deed and she is not here to acknowledge it ’— He replied, ‘ Yes ; but deeds are often made and not acknowledged for a long time afterwards.’ ‘ I am aware of that, Charlie,’ I replied, ‘ but the law requires the officer to put tire exact date of the acknowledgment on the instrument, and unless it purports to be acknowledged prior to her death it would not be good for anything on its face. And I said further that ‘ there is not any man in the world that can touch that deed with anything like safety.’ After I said that I walked out of the room, and he followed me. He walked down to the door, and I stepped around behind my table, and I faced him. He said to me, ‘ Squire, then yon think it can’t be done ? ’ I replied, ‘ Charlie, I know it can’t be done.’ And he went away. That is the substance of the conversation between him and me, about as it occurred. I have had no conversation with him since about it.”
The counsel for respondent then moved to strike out the testimony, on the ground that it was privileged; which motion the court overruled. The counsel insists that this was error, and in support they cite us to. Alderman v. People 4 Mich. 414-422; Hamilton v. People 29 Mich. 173, and Passmore v. Passmore 50 Mich. 626. These cases lay down the rule, everywhere recognized, that the privilege is the privilege of the client, and not of the attorney, and may be waived by upon public policy and public security. Profess munications are not privileged when such comn are for an unlawful purpose, having for th the commission of a crime. They then parta nature of a conspiracy, or attempted conspiracy, not only lawful to divulge such communications, certain circumstances it might become the duty oi ney to do so. The interests of public justice require tnat no such shield from merited exposure shall be interposed to protect a person who takes counsel how he can safely commit a crime. The relation of attorney and client cannot exist for the purpose of counsel in concocting crimes. The privilege does not exist in such cases. 1 Gilb. Ev. 277; Greenough v. Gaskell 1 Mylne & K. 98; Coveney v. Tannahill 1 Hill (N. Y.) 33; Bank of Utica v. Mersereau 3 Barb. Ch. 528; People v. Blakeley 4 Park. Cr. Pep. 176; 1 Whart. Cr. L. § 773; Poscoe’s Cr. Ev. 150. him. But there are exceptions to the general
Defendant’s counsel claim that it was error to exclude the testimony of Seton Elint as to Maple’s deed. The defense asserted that the deed in question was the genuine deed of Eleanor Yan Alstine, and counsel for respondent produced a witness who testified that she was present at Yan Alstine’s in May, 1876, and was engaged in making a dress for Eleanor ; that respondents Potter and Cleveland came to Yan Alstine’s on that occasion, and some papers were drawn and were executed by respondent and Eleanor, and she was requested to sign her name as a witness, which she did. A deed was shown her from Charles Yan Alstine and Eleanor Yan Alstine to respondent Cleveland of a parcel of land, which she identified as the one she witnessed. She also testified that, shortly after, Eleanor Yan Alstine was requested to come from the room where Eleanor and she were and sign a deed ; that the door was open, and she saw her take up the pen and write ; that she asked her after she returned to the room what paper it was, and she told her that it was a deed of her forty acres to Charles ; that they had arranged it so that whichever should die first the other should have the property belonging to the other; that after Potter and Cleveland went away, she saw respondent and Eleanor comparing this paper she had signed with a deed they had of Walters; that a short time before Eleanor died; and during her last sickness, she gave this deed to witness, with instruction that in case of her death she should deliver it to Charles, but if she got well to return it to her; and she identified the deed in question as the one so handed to her. This deed from respondent and Eleanor to Cleveland was produced and read in evidence, and it was claimed that before the deed was executed to Cleveland, Yan Alstine had agreed to convey the same land to one Maple, and did actually execute the deed but that the trade •fell through; and the witness Flint was interrogated as to the execution of this prior deed. The testimony was rightfully excluded, as was that of Swartwout with regard to Cleveland’s possession of this land, and other testimony con■oerning the Cleveland deed. It was all foreign to the inquiry respecting the genuineness of the deed from Eleanor to respondent, and could have no bearing upon the truth or falsity of the latter instrument. It would not have been error to have excluded all evidence of the deed to Cleveland. Vinton v. Peck 14 Mich. 287.
Witnesses were permitted to testify that the signature of Eleanor Yan Alstine to the deed from Charles and Eleanor to Cleveland was in the handwriting of respondent. This is claimed as error. This testimony came into the case in this way: The respondent had introduced both the deed from Charles and Eleanor Yan Alstine to Cleveland, and from Eleanor Yan Alstine to respondent, in evidence as genuine papers. The public prosecutor then called the attention of witnesses to the signatures of these deeds, and inquiry was made whether these signatures were all written by the same person; also, whether they were not all in the handwriting of respondent; also, whether they were in the handwriting of ■a woman.
I do not think any error was committed in admitting the testimony under the circumstances in which1 the questions arose. The circumstances were peculiar. The deed claimed to be forged was shown to be in the possession or under the ■control of the respondent. He had been notified to produce it. He chose not to do so until he came to the introduction •of testimony in his defense. . The People, in the mean time, were compelled to rely upon secondary evidence to sustain the prosecution. The person whose name it was claimed was forged, was dead. The People had made as full proof as they could do under the circumstances, and after the deed had been produced by respondent with a claim of its genuineness, the only way they could attack it was by testimony going to show that the signature was not that of Eleanor Yan Alstine, and I think the testimony was legitimate and proper for that purpose. Neither do I think it tended to rebut the testimony of Loury (a witness for the prosecution) as to admissions or statements made by the respondent-, that he had no ■deed of the premises from Eleanor, to show by another witness that on another occasion he claimed to have a deed.
Witnesses were permitted to testify that, at the time of the appraisal of the property belonging to the estate of Eleanor Pelton, the land in question was entered upon the inventory as the land of the deceased, and was talked of as her property in the presence of respondent, and he made no claim thereto. This testimony was relevant. How much weight it might eventually be entitled to would doubtless depend upon its relation to other testimony in the case. One of the persons then present testified that the respondent claimed to him that some $400 of his money had gone into the purchase ■of the land, and made some inquiry as to whether he could present it as a claim against the estate. Complaint is made that the prosecutor claimed that the deed from Charles and Eleanor Yan Alstine was also forged. I think the course pursued was justified by the case of Perkins v. People 27 Mich. 386.
The respondent’s counsel proposed to swear as witnesses •Charles A. Parker and Edward Cleveland, who were jointly informed against, and who had not yet been tried, acquitted, or discharged. The prosecuting attorney objected to their being sworn, for the reason that they were charged under the-same information, and neither had been acquitted or discharged or convicted under that charge. The court sustained the objection. No question is made that they were not competent witnesses at the common law; but it is claimed here,, but not in the court below, that they are competent underflow. Stat. § 7544. Section 7544 of Howell’s Statutes provides that “No person shall be disqualified as a witness in any criminal case or proceeding by reason of his interest in the-event of the same as a party or otherwise. * * * Provided, however, that a defendant in any criminal case or proceeding shall only at his own request be deemed a competent witness.” The objection made was aimed at their common-law disability. The statute has removed this disability only in certain cases mentioned in the proviso of the statute-Where parties are jointly indicted or informed against, and one chooses a separate triál, he cannot force a co-respondent to-testify without his consent or request. No offer or suggestion was made in this case that the witnesses were competent under the statute, or had consented or requested to be witnesses. The court was not in any manner informed that the witnesses were qualified by having made the request. Such request should be made to the court, otherwise it is the duty of the court to protect them in the privilege which the law-accords to them of not being obliged to criminate themselves-. The request must proceed from the party charged. No one has the right to ask them to be sworn and put them upon their refusal. The impropriety of such course is apparent, and no request can be implied, in the -absence of one appearing upon the record. These parties were not upon trial in this case, and consequently were not represented there by attorneys. Had they been upon trial, and their attorney had offered them as witnesses, it might have been considered as a request made by them. The objection was rightly overruled.
Numerous requests to charge, and exceptions to the charge as given, were made. Í have carefully considered all of them,. and while I can see that some parts, isolated from the • context, or selected out of the charge as given, would be error, yet when the whole is taken together, the law, as applicable to the facts, is correctly given. Objection was made to the reception of photographic copies of that portion of the deed which embraced the signature of the grantor, and of comparisons of handwritings instituted therewith. These were introduced before the original was put into the case, and we do not feel called upon to pass upon the correctness of the rulings made in reference thereto, as they become unimportant after the introduction of the original in evidence.
The exceptions are overruled, and the court below is advised to proceed to judgment.
The other Justices concurred. | [
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Champlin, J.
This is an action of replevin, brought by the plaintiff on the tenth day of January, 1884, to recover certain household furniture, a family carriage, and other property claimed to belong to plaintiff. The plea was the general issue, without notice of special matter.
The plaintiff and her husband, Stephen C. Hall, were, at the time of bringing suit, and had been for years prior thereto, residents of the Second ward of the city of Muskegon, Michigan. On said date, the city treasurer, the defendant in this suit, went to the house of the plaintiff and levied on the property named in the writ herein, to satisfy a tax assessed against Stephen 0. Hall, her husband. The assessment for which the tax was attempted to be levied, was upon certain vessel property supposed to be owned by Mr. Hall-at the time the assessment was made. The assessment was as follows:
Description. Valuation. Total Tax.
•S. C. Hall, Three-fourths of Steam-barge S. 0. Hall $15,000 $490 50
Personal. Three fourths schooner “Telegraph,” assessed by supervisor, .... 3,000 98 10
Grand total tax, $588 60
The plaintiff claimed that she was the owner of the household furniture and other property levied on by the treasurer, and that her property could not be taken to satisfy an assessment against her husband. (It was shown during the trial that the taxes assessed against this household furniture and other property levied upon by the treasurer had been paid before this levy.) The plaintiff claimed that all the property levied upon became hers in July, 1883, and remained hers up to the time of the levy, and was hers at the time of the trial.
The defendant claimed on the trial that the property in question was the property of Stephen C. Hall, and that, therefore, it was subject to be levied upon to satisfy taxes levied and assessed against him, and he sought to establish his claim by evidence tending to show that„ the transfer and conveyance of the property made on the 9th day of July, 1883, was made by Hall to his wife with intent to defeat, delay and defraud his then and future creditors. His theory of the case, and his testimony in support thereof, were submitted to,the jury, and they found a verdict against such theory, and the judgment must be affirmed, unless there is some error apparent in the record upon the admission of testimony or in the charge of the court.
The following are the errors assigned:
First. In the,overruling by the court of the defendant’s objection to introduce in evidence the bill of sale dated'July 9, 1883, from -Stephen C. Hall to the plaintiff.
Second. In that the court overruled the objection, and allowed the witness Stephen C. Hall to answer the following question asked him by the plaintiff’s attorney: “ Question. He speaks of an award that had been rendered in an arbitration in Chicago, and which you say was some forty-six thous- and dollars. I will ask you if you were at all alarmed about that matter?”
Third. The court erred in overruling the defendant’s objection to the reception in evidence, as offered by the plaintiff, of the two insurance policies, as testified about by Samuel H. Stevens.
Fourth. And that the court erred in overruling the defendant’s motion to strike the evidence with reference to the insurance and insurance policies from the record.
Fifth. In that the court erred in charging the jury on his-own motion, immediately after giving the defendant’s request to charge, and in relation to the said request, as follows: “ Technically, that’s true; but in order to have that defeat this transfer it will be necessary for you to find that this, transfer was made for the purpose of defeating this creditor, —that is, to defeat the collection of the tax, — or this party has no right to complain.”
The execution of the bill of sale under which the plaintiff claimed title to the property was proved by the witness Hall, who executed it, without objection on the trial. Plaintiff’s counsel then offered it in evidence, and the defendant objected to it as incompetent. The court overruled the objection and defendant excepted. No reason was stated at the trial why it was incompetent, and none is given upon the argument.
The second assignment of error is without merit. The defendant had attempted to show that a large award had been made against Hall in Chicago, and that he had immediately thereafter disposed of the greater part of his property, including this in question, and had interrogated TTall quite at length concerning his indebtedness and transfers, and the question was asked the witness on re-examination. The question was proper as bearing upon the intent sought to be implied from the transaction. On the same day the bill of sale was executed, the property transferred thereby was insured by plaintiff in her own name, and she introduced that fact in evidence against the defendant’s objection. Considering the issue made by the defendant’s claim, there was nothing objectionable in showing the circumstances attending the transfer. It was offered, doubtless, as some evidence bearing upon the good faith of the transfer. Evidence showing that after the purchase she used the property as her own, was proper under the issue raised.
The only remaining error assigned relates to the charge of the court, which was given in the following language: ■“Defendant asks the court to charge the jury that ‘the transfer of the property levied upon by the defendant, in order to vest the title of the property in the plaintiff, so as to defeat the collection of this tax, must have been made in good faith, and without intent to defraud the creditors of Stephen C. Hall.’ I would have given you that instruction, gentlemen of the jury, and technically that is true; but in order to have that defeat this transfer it will be necessary for you to find that this transfer was made for the purpose of defeating this creditor, — that is, to defeat the collection of the tax, — or this party has no right to complain.” The charge was correct, and was based upon the defendant’s theory, and the only theory upon which, if he had any right at all to attack the transfer, he could do so.
As the verdict went for the plaintiff, it is not necessary to •discuss the right of defendant to attack the conveyance upon the ground stated by him.
The judgment is affirmed.
Sherwood and Campbell, JJ. concurred. Cooley, O. J. did not sit. | [
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Campbell, J.
Plaintiff sued defendant for a balance' claimed to be due for bread. Defendant claimed that the account had been balanced by bad bread returned, and by a sum of ten dollars paid in settlement of accounts.
Plaintiff was a baker, and defendant’s business was to sup. ply bread to customers about the city. It appears that for a period defendant was employed by plaintiff to sell his bread,, and make returns and pay for the bread furnished daily. Defendant claims that on several occasions the bread furnished was bad and unwholesome, and that he returned it to a sufficient extent to overbalance his payments, and that there was an understanding to that effect. The parties are directly at variance on the facts. There was a good deal of testimony showing that bread was often made unfit for use, and that. plaintiff had to sell it for feeding animals. He swore there was never any such thing.
The court below rightly excluded evidence of a Sunday •contract before the business was entered into. But there was testimony of subsequent dealings tending to prove the theory of the defense.
The case being an appeal from a justice, it was shown and ■seems to have been admitted that in the justice’s court plaintiff swore that the amount due him was only $65, while in the circuit he swore to $103.79, and recovered it. The court was asked to charge the jury that if plaintiff so swore below, and so changed his testimony without explaining why, that ■circumstance should weigh with the jury against the good faith of the claim. The court refused so to charge, but in the charge the court made this remark: “ Defendant also states that the complainant only claimed $65 in justice court, but the complainant undertakes to explain it by saying that he made a mistake, as he did not have his books of account with him at the time.” This had a decided tendency to induce the jury to regard the point as of no consequence. But it is not a small matter for a person who goes into court to swear to his claim, to pay so little regard to his oath as to take no pains to find out what is due. And beyond this, there is nothing in the plaintiff’s testimony to show any such •explanation given by him on oath. The error was material.
The court also refused to charge that plaintiff was subject by law to an implied warranty that the bread was wholesome, and in the charge stated the defendant’s objections to apply ■chiefly to its marketable quality, and to its being soiled externally by getting dirty on the floor. There was, however, testimony from several sources that the bread was unfit for food, apart from its external appearance.
It was held in Hoover v. Peters 18 Mich. 51, that there is ■an implied warranty of wholesomeness in the sale of provisions for direct consumption. This question is not discussed in plaintiff’s brief, and was left entirely out of view by the ■court, and the only reference to it was in connection with an express contract.
In this case defendant was, as plaintiff claims, in his employ as a peddler, bound to pay for his bread, at a discount, and his connection with the sales brings the case within the same principle. Defendant cannot be treated as a purchaser from a wholesale dealer of articles sold in the market for purposes of commerce. Bread is an article sold for immediate consumption, and never enters into commerce, and as one of the prime necessaries of life is of no use unless it is good for food. Defendant, as a mere middle-man betweén the baker and-the consumer, and acting in his employment, had a right to expect bad bread to be made good, and the court should have so held. Mere externals he could see for himself, but bad quality would not always be detected without such a minute examination as the circumstances of such a business would render it difficult to make.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Cooley, C. J.
The question involved in this suit is one of homestead. Complainant. Bouchard is purchaser at an execution sale of the interest of respondent in land described as “lot number ten, of block nine, of subdivision of the Elois Bourassa estate, being part of private claims numbered 226 and 497, according to the plat of said estate made by commissioners appointed by the probate court of Wayne county, and which plat is recorded in the office of the register of deeds for said county.” The time for redemption having expired, suit to obtain possession was instituted before a circuit court commissioner, and after trial by the commissioner was taken by appeal to the circuit court.
On the trial in the circuit court the following facts appeared : Elois Bourassa died owner of a.farm in the township of Ecorces, which included the land now in controversy. Defendant was one of his heirs. For the purposes of making an equitable partition of his real estate, it became necessary to divide this farm, and commissioners in partition were appointed by tbe probate court, who made a plat and designated the subdivisions by numbers. One of these, designated as lot nine, was set off to defendant; and another, designated as lot ten, was subsequently conveyed to him by another heir. The sole purpose of making the plat was to effect a partition. The plat was put on record in the office of the register of deeds. Defendant is a man of family, and he is in possession of lots nine and ten, occupying and claiming them as a homestead. The value of both, with buildings, does not exceed fifteen hundred dollars. The house in which he resides with his family is situated on lot nine. There is a small settlement near these lots, sometimes called the village of Ecorces, but it is not an incorporated village. Lots were platted by the proprietors of land for sale in this settlement or village, but the platting did not include theEourassa farm.
Upon these- facts the- circuit judge directed a verdict for the respondent, and the complainant brings error.
The Constitution provides that “Every homesteád of not exceeding forty acres of land, and the dwelling-house thereon, and the appurtenances to be selected by the owner thereof, and not included in any town plat, city or village; or instead thereof, at the option of the owner, any lot in any city, village, or recorded town plat, or such parts of lots as shall be equal thereto, and the dwelling-house thereon, and its appurtenances, owned and occupied by any resident of the State, not exceeding in value fifteen hundred dollars, — shall be exempt from forced sale on execution or any other fin al process from a court, for any debt contracted after the adoption of this Constitution.” Art. xvi, § 2. The complainant insists that a village, within the contemplation of the Constitution, need not be an incorporated village; that Ecorces was a village, in fact, and the respondent’s lots within it; that the plat of his lots was a recorded plat, and that even if the plat could not be deemed a town plat, yet that the lots corresponded to lots bn the recorded plat of the village, and the respondent could claim exemption in respect only to the one on which the house was situated.
We are not inclined to question in this suit the position that the village intended by the Constitution is not necessarily an incorporated village. Considerable villages are sometimes left unincorporated, though they are built upon lands regularly platted, and have the ordinary local conveniences of villages supplied to them through the agency of the township government. But whether Ecorces is such a village may be a question. The parties have taken no testimony that can enlighten us on the subject; we are not told what the population is ; no census is upon record which gi ves it; and, though the Court can take judicial notice of the township of Ecorces, the judges are not supposed to know how many of the inhabitants of the township congregate for residence at one point. What evidence appears in the record leads to the conclusion that what is called the village of Ecorces is a hamlet of agricultural residents, rather than one of people. pursuing the various avocations commonly met with in villages and cities.
But it is not very important that we should know the exact condition of things in this regard, as it is very clear on the evidence that the respondent is to be considered as the owner of agricultural lands, and not as the owner of a “lot in any city, village or recorded town plat.” The respondent’s lots were never platted as village lots, and they are not upon a recorded town plat. They are subdivisions of a farm which were made for a purpose foreign to that of platting for sale or for village settlement; and we are not informed that they are occupied and used otherwise than as farm property, or that it is expected they ever will be. In reason, therefore, the respondent’s two lots, owned and occupied as one, should be regarded as farm property rather than village property.
Homestead laws are to be construed liberally to effect the benign purpose in view in adopting them. Barber v. Rorabeck 36 Mich. 399. The Bourassa farm was not village property before its partition, and a homestead to the extent of forty acres might have been claimed in it. It was no more village property after the partition than before, and the owner of any parcel not exceeding forty acres may claim it as a homestead. The fact that the parcel has at one time been held and owned in two parcels by different owners is of no moment. If it is owned by one person now, who, by being a man of family, and occupying it as a homestead, is entitled to claim exemption in respect to it, that is sufficient. And such seems to be the case with respondent in respect to lots nine and ten of the subdivision of the Bourassa farm. He owns and occupies them both as one, and they constitute his homestead. He can therefore claim them as exempt, under the Constitution, from sale on execution.
The judgment must be affirmed.
The other Justices concurred. | [
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Per Curiam.
We agree with Chief Judge Danhof’s analysis of all issues in this case except one. We do not believe that the trial court erred when admitting evidence of the defendant’s prior convictions. The "crimes of violence” standard used by the trial court is wrong. It appears nowhere in case law or the Rules of Evidence. But the judge did not base his decision solely on this standard. The record shows that the judge recognized his discretion and recognized both the prejudicial and probative elements in admitting evidence of similar crimes. People v Crawford, 83 Mich App 35, 39; 268 NW2d 275 (1978). By announcing that these were crimes of violence, the trial judge announced one wrong reason for admitting evidence of the convictions but this does not detract from the fact that he properly applied the Crawford factors in reaching his decision. Thus, the decision was not erroneous, despite the surplusage. | [
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Per Curiam.
Plaintiff brought this paternity action against defendant on March 3, 1981, on behalf of her child, who was born on February 2, 1973. Defendant denied paternity and moved for accelerated judgment, raising the six-year statute of limitations, MCL 722.714(b); MSA 25.494(b). Following a hearing, the trial court granted defendant’s motion and dismissed plaintiff’s action. Plaintiff appeals as of right.
We reject plaintiff’s argument that the limitation period of the paternity act, six years, violates the Equal Protection Clause of the state and federal constitutions. Shifter v Wolf, 120 Mich App 182; 327 NW2d 429 (1982).
Further, under the clear language of the statute, an acknowledgment of paternity by a defendant must be "in writing” in order to toll the running of the limitation period. MCL 722.714(b); MSA 25.494(b).
Affirmed. | [
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T. M. Burns, J.
This case is before this Court on an appeal and cross-appeal by leave granted and arises from various grants and denials of summary-judgment by the Court of Claims.
Plaintiff was born on February 12, 1925, in Traverse City State Hospital (TCSH), a state institution for the insane, where his mother was a patient. Plaintiff’s mother died soon after his birth and plaintiff was treated as an abandoned child (apparently his father was unknown at the time). From TCSH, plaintiff was taken to the Michigan State Public School (MSPS), pursuant to a court order dated May 15, 1925.
From MSPS, plaintiff, allegedly a normal child at this time, was transferred to the Michigan Home and Training School (MHTS), an institution for the retarded. This transfer was allegedly without a proper court order. On October 5, 1937, a second allegedly invalid court order committed plaintiff to MHTS. Plaintiff remained there until June 5, 1964, when he was transferred to TCSH, pursuant to an administrative order dated May 15, 1964. Plaintiff remained there until May 15, 1973, when he was paroled to a foster care home.
Eventually, plaintiff filed a four-count amended complaint in the Court of Claims. Count I alleged false imprisonment due to his improper commitment to MHTS; Count II alleged negligent, reckless, intentional breaches of defendants’ duty to care for, treat, and educate plaintiff; Count III alleged that his due process and equal protection rights under the Michigan Constitution had been violated; Count IV sought damages under 42 USC 1983 for violation of his federal constitutional rights.
Defendants moved for summary judgment pursuant to GCR 1963, 117.2(1) or, alternatively, for accelerated judgment pursuant to GCR 1963, 116.1(5). The trial court granted summary judg ment to defendants on Counts I and II but denied summary judgment on Counts III and IV.
Obviously, this case deals with governmental immunity. MCL 691.1407; MSA 3.996(107):
"Except as in this act otherwise provided, all governmental agencies shall be immune from tort liability in all cases wherein the government agency is engaged in the exercise or discharge of a governmental function. Except as otherwise provided herein, this act shall not be construed as modifying or restricting the immunity of the state from tort liability as it existed heretofore, which immunity is affirmed.”
We will first address the trial judge’s dismissal of the second count. In dealing with a governmental immunity question, we have a two-step analysis: (1) whether the operation of the state facility is a "government function”; and (2) whether the alleged tortious activity falls within the exercise or discharge of that governmental function. McCann v Michigan, 398 Mich 65; 247 NW2d 521 (1976).
Plaintiff argues that, if defendants’ negligent actions in this case are protected by governmental immunity, the test for applying governmental immunity is unconstitutionally overbroad and must be restricted by applying plaintiff’s new definition: a governmental function is "[a]n activity that is necessarily unique to government and that involves a high degree of discretion”.
However, this argument fails to address whether or not factually the institutions involved were "of essence to governing” or could be equally effectively accomplished by the government and private sector. As it is, a state mental hospital is clothed with governmental immunity as a governmental function. Perry v Kalamazoo State Hospital, 404 Mich 205; 273 NW2d 421 (1978), app dis 444 US 804; 100 S Ct 24; 62 L Ed 2d 17 (1979); Siener v Michigan, 117 Mich App 179; 323 NW2d 642 (1982); Rocco v Dep’t of Mental Health, 114 Mich App 792; 319 NW2d 674 (1982); Fuhrmann v Hattaway, 109 Mich App 429; 311 NW2d 379 (1981); Jacobs v Dep’t of Mental Health, 88 Mich App 503; 276 NW2d 627 (1979). The Supreme Court is the proper place to change either this test or the result that the operation of a mental hospital is a governmental function.
The trial court concluded that, since the operation of the three institutions was a governmental function, care, treatment, and education were within the exercise or discharge of the governmental function. Logically, this result is compelled. Once we determine that operation of these facilities is a governmental function, the care, treatment, and education of the patients must be considered within the exercise or discharge of that governmental function. Any other conclusion would either eliminate the governmental immunity or lower the limits of the state’s function at these institutions to a mere duty to house the patients. Because plaintiff has failed to allege facts avoiding the application of governmental immunity, we conclude that the trial judge properly dismissed Count II alleging negligence. See Perry, supra, pp 212-213.
Plaintiff also alleged in Count II intentional or reckless breach of duty. The trial judge dismissed these allegations on the separate ground that plaintiff was pleading conclusions and had therefore failed to plead facts avoiding immunity. Because plaintiff has failed to address this particular issue, we affirm the entire dismissal of Count II.
The trial judge also granted summary judgment on plaintiff’s first count, stating that defendants were immune from the false imprisonment allegations. False imprisonment is an intentional tort. 1 Harper and James, The Law of Torts, § 3.7, p 228. Unfortunately, the courts in this state right now have two different views as to whether or not a complaint alleging an intentional tort takes the plaintiff beyond governmental immunity. As was stated earlier in this opinion, a governmental agency is not immune even if what it is performing is a governmental function if the alleged tortious activity falls outside the exercise or discharge of that governmental function.
Three justices on the Supreme Court have stated that the government is not immune from an intentional tort. Lockaby v Wayne County, 406 Mich 65, 77; 276 NW2d 1 (1979). Accord, Shunk v Michigan, 97 Mich App 626; 296 NW2d 129 (1980).
On the other hand, three other justices have held that an intentional tort allegation takes the parties outside governmental immunity only if the intentional tort is ultra vires. (Lockaby, supra, pp 78, 82-83. Accord, Jacobs, supra.)
Despite this apparent conflict, we believe that the two views can be reconciled. If a police officer lawfully arrests an individual, he may use reasonable force if that individual resists. Delude v Raasakka, 391 Mich 296; 215 NW2d 685 (1974). Both sides would agree that the police officer is immune by governmental immunity from any suit alleging an intentional tort. However, both sides would also agree that the police officer is not immune if he uses force if the arrestee did not resist or if the officer used unreasonable force.
Underlying Justice Levin’s opinion (in Lockaby) is the argument that the state is never in the business of committing intentional torts. Justice William’s opinion clearly states a concern that the state not be liable where a public employee is required to commit an intentional tort to carry out his duty to the public. Both views recognize the reasons for governmental immunity and define immunity within its own perception of what the state’s duty may entail. Both concerns may be met in a test which grants governmental immunity where the employee’s actions were justiñed under the case’s circumstances. Thus, a police officer’s "assault” on a person attempting murder is justified by the overriding necessity of protecting the potential victim. The officer’s duties include this protection and sometimes require extraordinary measures. An attendant at a state mental hospital may be justified in "assaulting” á patient where the patient threatens the safety of himself or others but would not be justified in assaulting the same patient where the patient is merely recalcitrant in dressing. Justice Levin’s concern that the state not be privileged in abusive behavior does not apply where the circumstances require such extraordinary actions and so justify taking the measures. Likewise, Justice Williams’ concern that the state not be punished for acting where it must is also met.
Thus, whenever a plaintiff in a complaint alleges an intentional tort, a defendant may answer arguing that the allegation should be dismissed due to governmental immunity because the action was justified under the particular facts of the case. If the plaintiff does not contest these facts, the allegation would subsequently be dismissed. However, if the plaintiff does contest the facts underlying the justification, the case would proceed to trial.
Therefore, we reverse the trial judge’s summary judgment grant and reinstate the count alleging false imprisonment. While circumstances may ex ist making it necessary initially to commit a person to a mental institution without following the statutory procedures, such justification has not been alleged in this case. If plaintiffs allegations are correct, defendants had 53 years to properly commit plaintiff but failed to do so.
Rather than remand this count for trial, however, we will remand it to allow the parties to reformulate their pleadings consistent with this test.
Plaintiff had filed a motion for summary judgment on the false imprisonment count simultaneously with defendants’ motion for summary judgment. The trial judge, however, failed to rule on the motion, declaring it moot because he had just granted defendants’ motion. Plaintiff is now asking us to grant the summary judgment because all the evidence is before this Court. However, because of the position we have taken on this issue, we decline the request.
The third count in the complaint alleged a violation of plaintiff’s equal protection and due process rights under the Michigan Constitution. At the trial level, defendants moved for summary judgment claiming that plaintiff had failed to plead facts avoiding the governmental immunity statute. In answering this motion, the trial judge ruled:
"As to Count III, defendants seek dismissal pursuant to statutory governmental immunity in that the count is based in part upon tortious activity. The Court is of the opinion that the due process claim, as pleaded, is severable from the torts above discussed. Although certain elements are common to each, the Court does not read the governmental tort immunity act as applying to constitutional claims. Defendants’ motion for summary judgment as to Count III is denied.”
On appeal, defendants now claim that plaintiff merely alleged conclusions and disguised "mere” torts as constitutional torts. However, we have failed to find where defendant either raised or argued these claims below. As such, we decline to address them and affirm the denial of summary judgment. Reed v St Clair Rubber Co, 118 Mich App 1; 324 NW2d 512 (1982).
Defendants next argue that the trial judge incorrectly denied summary judgment on the count alleging a violation of 42 USC 1983. Specifically, defendants argue that a state is not a "person” under § 1983.
Hirych v State Fair Comm, 376 Mich 384; 136 NW2d 910 (1965), held that a state in fact is not a "person” under § 1983. As such, a state is immune. However, only three justices joined this part of the opinion. Furthermore, Hirych relied on Monroe v Pape, 365 US 167; 81 S Ct 473; 5 L Ed 2d 492 (1961), which had ruled that a municipality is not a "person” under § 1983. But Monroe was overruled on point by Monell v New York City Dep’t of Social Services, 436 US 658; 98 S Ct 2018; 56 L Ed 2d 611 (1978).
Defendants claim that Quern v Jordan, 440 US 332; 99 S Ct 1139; 59 L Ed 2d 358 (1979), ruled that a state is not a "person” under § 1983. Many in fact have stated that Quern has decided this issue. Justice Brennan in dissent in Quern stated: "But the Court goes on to conclude, in what is patently dicta, that a State is not a 'person’ for purposes of 42 USC § 1983 * * *”. 440 US 350. Other courts have also taken this position. For example, Woodbridge v Worcester State Hospital, — Mass —; 423 NE2d 782 (1981); Boldt v State, 101 Wis 2d 566; 305 NW2d 133 (1981), cert den — US —; 102 S Ct 524; 70 L Ed 2d 393 (1981); State v Green, 633 P2d 1381 (Alas, 1981); Burkey v Marshall County Bd of Ed, 513 F Supp 1084 (ND W Va, 1981); Holladay v Montana, 506 F Supp 1317 (D Mont, 1981); Clark v Michigan, 498 F Supp 159 (ED Mich, 1980); Florida Businessmen for Free Enterprise v Florida, 499 F Supp 346 (ND Fla, 1980); State v Hall, 411 NE2d 366 (Ind App, 1980); Edgar v State, 92 Wash 2d 217; 595 P2d 534 (1979), cert den 444 US 1077; 100 S Ct 1026; 62 L Ed 2d 760 (1980).
However, on reading the majority opinion in Quern itself, we do not believe that Quern stated that a state is not a "person” under § 1983. The specific question was whether the lower court’s order requiring that certain welfare recipients be sent notices in the mail violated the Eleventh Amendment. The Eleventh Amendment bars a litigant from suing a state in federal court unless the state waives that immunity. Hans v Louisiana, 134 US 1; 10 S Ct 504; 33 L Ed 842 (1890). However, pursuant to the Fourteenth Amendment, §5, Congress has the power to abrogate a state’s Eleventh Amendment immunity in federal courts. As such, a state has no Eleventh Amendment immunity for a Title VII suit brought in federal court. Fitzpatrick v Bitzer, 427 US 445; 96 S Ct 2666; 49 L Ed 2d 614 (1976). In addition, a state has no such immunity in a suit in federal court asking for attorney fees under the civil rights attorneys’ fees award act of 1976, 42 USC 1988. Hutto v Finney, 437 US 678; 98 S Ct 2565; 57 L Ed 2d 522 (1978). However, Edelman v Jordan, 415 US 651; 94 S Ct 1347; 39 L Ed 2d 662 (1974), had held that a suit brought under § 1983 in federal court was limited to prospective aid only. The Eleventh Amendment barred any retroactive award.
One year before Quern, the Supreme Court decided Monell, supra. As such, certiorari was granted in Quern to decide whether or not Edelman was still good law. Quern reaffirmed Edelman. But stating that § 1983 does not abrogate the Eleventh Amendment (as does § 1988) is not the same as saying that a state is not a "person”. Quern merely reaffirmed Edelman without stating that a state is not a "person”: "Nor does our reaffirmance of Edelman render § 1983 meaningless insofar as States are concerned. See Ex parte: Young, 209 US 123; 28 S Ct 441; 52 L Ed 714 (1908).” Quern, supra, p 345. In fact, Quern cited with approval Alabama v Pugh, 438 US 781, 782; 98 S Ct 3057; 57 L Ed 2d 1114 (1978):
"There can be no doubt, however, that suit against the State and its Board of Corrections is barred by the Eleventh Amendment, unless Alabama has consented to the filing of such a suit. Edelman * * *.”
In fact, the majority opinion specifically replied to Justice Brennan’s conclusion that it had cited that a state is not a person:
"Mr. Justice Brennan’s opinion characterizes this conclusion as 'gratuitous’ and 'paten[t] dicta’. * * * But we cannot think of a more 'gratuitous’ or useless exercise of this Court’s discretionary jurisdiction than to decide which of two conflicting interpretations of Edelman v Jordan is correct, if in truth we believe that Edelman itself no longer were valid. The question does not arise out of the blue; it was extensively discussed in our Brother Brennan’s concurrence in Hutto v Finney, last [t]erm. We therefore fail to see how our reaffirmance of Edelman can be characterized as dicta’.” 440 US 341-342, fn 12. (Emphasis added.)
This same conclusion was reached in both Irwin v Calhoun, 522 F Supp 576 (D Mass, 1981), and Marrapese v Rhode Island, 500 F Supp 1207 (D RI, 1980):
"Justice Rehnquist’s opinion, while emphatic in reasserting the Court’s belief that Congress had not intended to abrogate the states’ immunity through § 1983 * * * conspicuously avoided any statement that the term 'person’ did not include 'state’. Stated precisely, Quern concluded only that the Congress which enacted § 1983 did not intend to force the states to answer in federal court for their constitutional violations. Of itself, this holding does not mandate the further conclusion that the 42d Congress did not intend to allow the states to answer in federal court for their constitutional violations if they consented to do so. The alternate interpretation of Quern, then, would recognize that the word 'person’, when considered in light of the Dictionary Act and the legislative history of § 1983, is broad enough to encompass the state as a 'body politic and corporate’. Limiting the practical effect of this construction would be the caveat that a statute leaves untouched Eleventh Amendment immunity, so that a state is not compellable to respond to § 1983 claims in federal court.
"The legislative history reveals that proponents of § 1983 had the highest ambitions for the scope of effectiveness of its remedial powers.
"[I]t would seem strained, if not actually illogical, to conclude that Congress meant to exclude the governmental entities which, being most powerful, could pose the greatest threat to the constitutional rights of citizens, even when those entities consented to suit.” Marrapese, supra, pp 1211, 1212. (Emphasis in original; footnotes omitted.)_
One of the main purposes behind § 1983 was to enforce the provisions of the Fourteenth Amendment. Although many disagree about the Fourteenth Amendment’s effect and purpose, all agree that it was passed to ensure the constitutionality of the Civil Rights Act of 1866. The Civil Rights Act of 1866 was designed to eliminate the black codes. As such, we conclude that Congress must have intended that states be included as "persons”.
Quern actually held for the plaintiff. The Court unanimously held that the state was to be required to send out those notices. But if a state is not a "person” under § 1983, how could it be forced to send out the notices? If a state were not a "person” under § 1983, the defendant state would have won and the Supreme Court would have dismissed the suit entirely.
Therefore, we affirm the circuit court’s summary judgment denial on this count. We find no other result logical.
Affirmed in part, reversed in part, and remanded for proceedings consistent with this opinion.
J. E. McDonald, J., did not participate due to death.
See also De Bleecker v Montgomery County, 292 Md 498; 438 A2d 1348, 1356, fn 4 (1982); Thiboutot v State, 405 A2d 230, 236-237 (Me, 1979), afFd sub nom Maine v Thiboutot, 448 US 1; 100 S Ct 2502; 65 L Ed 2d 555 (1980). | [
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Per Curiam.
The parties were married on September 14, 1943, and plaintiff husband filed a complaint for divorce on May 13, 1974. The parties were able to reach a negotiated settlement and on September 30, 1974, the parties executed a property settlement agreement. The agreement provided for alimony for defendant wife as follows:
"Husband agrees to pay to Wife the following amount, until he retires from active employment.
"A. One Thousand Dollars ($1,000.00) per month, payable on the date of execution of this Agreement, and on the same date of each and every month thereafter, provided that such sum shall be increased on the yearly anniversary date of the execution of this Agreement, by a percent equal to the percentage raise in the U.S. Department of Labor costs of living standards for Detroit, Michigan, over the corresponding yearly period.
"B. After the Husband retires from active employment, he agrees to pay to his wife the following amount:
"Twenty-Five (25%) percent of the Husband’s gross income from all sources.
"These payments will be continued in accordance with the schedule set out above until such time as the Wife dies or remarries.”
Defendant’s pleadings were withdrawn by stipulation and a judgment of divorce was entered on September 30, 1974. The judgment incorporated by reference the provision of the property settlement concerning alimony.
On March 4, 1980, defendant filed a motion for an order to show cause why plaintiff should not be held in contempt of court for failure to abide by the alimony provision of the divorce judgment. Defendant also filed a motion to specify the amount of monthly alimony payments due. Defendant claimed and plaintiff admitted that plaintiff had made monthly alimony payments of $1,000 but had never paid any increase based on the increase in the. cost of living. In response to the circuit judge’s order to show cause, plaintiff argued that the inclusion of an escalator clause in the alimony provision had been erroneous and, alternatively, that changed circumstances justified a modification of the alimony provision. In an opinion dated August 5, 1980, the circuit judge held that the escalator clause of the alimony provision was void, citing Stanaway v Stanaway, 70 Mich App 294; 245 NW2d 723 (1976). On September 3, 1980; an order was entered declaring the escalator clause of the alimony provision to be void and denying defendant’s claim for past-due alimony. Defendant appeals by right.
In Stanaway, pp 295-296, the Court was confronted with a judgment of divorce which required plaintiff father to pay a percentage of his adjusted gross income as child support. The Court held:
"MCL 552.17; MSA 25.97 reads as follows:
" 'The court may, from time to time afterwards, on the petition of either of the parents, revise and alter such decree concerning the care, custody and maintenance of the children, or any of them, and make a new decree concerning the same, as the circumstances of the parents, and the benefit of the children shall require.’
"An escalator clause violates both the spirit and the letter of this statute. First, it abrogates the requirement for petition by allowing the continual (here, yearly) alteration of the judgment as to amount of support. Second, and more important, it focuses exclusively on the 'circumstances’ of the paying parent while ignoring the complex of factors relating to the 'benefits of the children’ and their changing of unchanging needs. See Stern v Stern, 327 Mich 567; 42 NW2d 738 (1950); Herpolsheimer v Herpolsheimer, 318 Mich 200; 27 NW2d 530 (1947); Davis v Davis, 8 Mich App 104; 153 NW2d 879 (1967).”
The Stanaway Court distinguished Anneberg v Anneberg, 367 Mich 458; 116 NW2d 794 (1962), on the ground that the escalator clause approved in Anneberg had an upper limit. See also Hagbloom v Hagbloom, 71 Mich App 257; 247 NW2d 373 (1976), in which the Court, relying on Stanaway, reversed a support order containing an escalator clause and instructed the trial judge on remand not to utilize an escalator clause without an upper limit. Stanaway was criticized in Hakken v Hakken, 100 Mich App 460, 467-468; 298 NW2d 907 (1980):
"We are aware that judges in practice have used escalator clauses in child support orders where the supporting parent has a variable income or has been the recipient of rapid promotions. This use brings about a result based on ability to pay. The real argument against escalator clauses is that they are difficult to administer if there is resistance to compliance and they are highly dependent on tax returns, which do not necessarily reflect ability to pay and do not take into account the needs of the child.
"However, even though escalator clauses are sometimes used, there has been a paucity of appellate cases concerning their usage which is indicative that they do work for they are ordinarily tied to ability to pay. Escalator clauses are not appropriate in every case, but they are tools which should not be denied to judges who must find equitable solutions to difficult support problems.
"The panels in both Stanaway, supra, and Hagbloom, supra, find support in Anneberg, supra, for the requirement that there must be a ceiling on an escalator clause. We cannot find such support.”
We agree with the Hakken panel that Anneberg does not support a requirement of a ceiling on an escalator clause.
The escalator clause at issue here is distinct from those involved in Anneberg, Stanaway, Hag-bloom, and Hakken in at least two respects: (1) the clause deals with alimony rather than child support; and (2) the clause is tied to inflation rather than increases in income. However, there is no difference between alimony and child support which is relevant to the validity of escalator clauses. In both instances, the court must consider the needs of the party for whose benefit the support award is made and the ability of the other party to pay. Compare Hagbloom, supra, p 259, with McLain v McLain, 108 Mich App 166, 171-172; 310 NW2d 316 (1981).
At least three courts have explicitly approved escalator clauses tied to the cost of living. In In re Marriage of Stamp, 300 NW2d 275 (Iowa, 1980), the Supreme Court of Iowa ruled that the trial court erred in denying the wife’s request for annual automatic .cost-of-living adjustments in the child support award. The court stated that such adjustment clauses were best for all concerned as they minimized the risks of yearly battles over the support obligation and reduced legal expenses and animosity between the parties.
In Branstad v Branstad, 400 NE2d 167, 171 (Ind App, 1980), the Court cited a number of reasons for endorsing the type of escalator clause under consideration here:
"In summary, we. approve the court’s order prescribing an adjustment in the amount of child support based upon changes in the Consumer Price Index because the provision (1) gives due regard to the actual needs of the child, (2) uses readily obtainable objective information, (3) requires only a simple calculation, (4) results in judicial economy, (5) reduces expenses for attorney fees, and (6) in no way infringes upon the rights of either the custodial parent or the non-custodial parent to petition the court for modification of the decree due to a substantial and continuing change of circumstances.” (Footnote omitted.)
Quoting the above passage, the Arizona Court of Appeals in Brevick v Brevick, 129 Ariz 51; 628 P2d 599 (1981), also gave its stamp of approval to the type of escalator clause which is tied to inflation, although the Arizona court cited this Court’s decision in Stanaway as authority for the proposition that escalator clauses setting support obligations as a percentage of the paying party’s income go beyond the power of the court.
Some courts from other jurisdictions have reached contrary results. See Busby v Busby, 11 Ill App 3d 426; 296 NE2d 585 (1973); McManus v McManus, 38 Ill App 3d 645; 348 NE2d 507 (1976); Greene v Greene, 372 So 2d 189 (Fla App, 1979); Stoler v Stoler, 376 So 2d 253 (Fla App, 1979), and Fitts v Fitts, 231 Ga 528; 202 SE2d 414 (1973). But see Golden v Golden, 230 Ga 867; 199 SE2d 796 (1973). We believe that cases such as Stamp, Branstad, and Brevick are better reasoned. Approval of escalator clauses which are tied to increases in the cost of living provide a number of benefits as Stamp, Branstad, and Brevick all suggest. The purpose of such escalator clauses is to maintain the real value of the original support award. The main effect of such escalator clauses is to relieve the nonpaying party from having to request annual modifications of the support award to maintain its value. In Bickham v Bickham, 113 Mich App 408, 413; 317 NW2d 642 (1982), the Court found that inflation was a relevant but not dispositive factor in deciding a petition for modification of support. Bickham shows that there is a reasonable relationship between inflation and increased need of the nonpaying party. In view of this relationship, we cannot say that an escalator clause tied to inflation is necessarily contrary to public policy. The paying party may still petition for a modification if circumstances have changed or his personal income has not increased sufficiently to enable him to meet the adjusted support obligation. See Stamp, supra, p 280; Branstad, supra, p 171, fn 4; Brevick, supra, p 54.
Since the trial judge found the escalator clause invalid per se, he did not address the issue of whether changed factual circumstances justified a reduction in plaintiff’s alimony obligations. Consequently, this matter must be remanded for an evidentiary hearing to give the trial court an opportunity to assess plaintiff’s assertion of changed circumstances.
We must also require the trial court to re-examine the issue of whether plaintiff’s alimony arrearages should be canceled. The lower court canceled the arrearages because it concluded that the escalator clause was invalid. However, as outlined in this opinion, we disagree. The power to modify an alimony provision in a divorce judgment includes the power to cancel arrearages. Barker v Barker, 366 Mich 624, 625; 115 NW2d 367 (1962); Pohl v Pohl, 13 Mich App 662, 664-665; 164 NW2d 768 (1968). Here, however, the arrearages were canceled due to the trial court’s mistaken impression of Michigan law. On remand, the trial court may cancel the arrearages only if plaintiif establishes a material change in circumstances justifying such cancellation.
Reversed and remanded for proceedings consistent with this opinion. Defendant-appellant may tax costs. | [
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D. S. DeWitt, J.
We granted defendants A. F. Murch Company’s and Pacific Employers Insurance Company’s application for rehearing in this case to consider whether we incorrectly ordered the case remanded to the Workers’ Compensation Appeal Board for a determination of whether plaintiffs two stepchildren are dependents in fact. We now conclude that remand was unnecessary.
In this Court’s original opinion, 118 Mich App 631; 325 NW2d 521 (1982), we concluded that plaintiffs two stepchildren did not fit within the conclusive presumption of dependency set forth in MCL 418.353(l)(a)(ii); MSA 17.237(353)(l)(a)(ii). However, MCL 418.353(3); MSA 17.237(353X3) only permits an increase in the amount of disability payments when the number of conclusive dependents increases following the employee’s injury. The statute does not provide for an increase for those dependent in fact upon the injured employee. Therefore, it is irrelevant, for purposes of an increase, whether plaintiffs children are, in fact, dependent upon him. Furthermore, under Gusler v Fairview Tubular Products, 412 Mich 270; 315 NW2d 388 (1981), reh gtd 414 Mich 1102; 323 NW2d 909 (1982), the issue of dependency is now moot. Gusler holds that only the maximum benefit is adjustable. Thus, plaintiffs benefits will not exceed two-thirds of plaintiffs average weekly wage irrespective of whether plaintiff has none or three dependents.
The order remanding this case to the appeal board for a determination of whether plaintiff’s children are dependents in fact is vacated. This case is remanded to the appeal board for further proceedings not inconsistent with this opinion. | [
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D. E. Holbrook, Jr., J.
Defendant was convicted by a jury of first-degree felony murder, MCL 750.316; MSA 28.548, committed in the course of a larceny and felony-firearm, MCL 750.227b; MSA 28.424(2). Thereafter sentenced to a mandatory life term for the felony-murder conviction plus two years for the felony-firearm conviction, defendant appeals as of right.
Defendant first claims that the trial court erred in instructing the jury that malice necessary to find first-degree murder could be inferred from the mere commission of larceny. In People v Aaron, 409 Mich 672; 299 NW2d 304 (1980), the Court held that the issue of malice must be submitted to the jury in order to convict a defendant of first-degree felony murder. The Aaron Court held it was error to instruct the jury that malice could be inferred solely from an intention to commit the underlying felony. Defendant’s case, however, was completed prior to the Aaron decision. Regardless of this fact, defendant argues that Aaron applies retroactively herein. In Aaron, supra, p 734, the Court stated:
"[t]his decision shall apply to all trials in progress and those occurring after the date of this opinion.”
Moreover, several recent cases have held Aaron not to have retroactive application. People v Heard, 103 Mich App 571; 303 NW2d 240 (1981); People v Bradley, 106 Mich App 373; 308 NW2d 216 (1981). Accordingly, Aaron is inapplicable to the case at bar.
Hence, in resolving defendant’s claim we look to case law prior to Aaron when this Court was divided on the issue of whether a jury must be instructed on the element of malice in a felony-murder case. Since at the time of the instant case there existed a split on this Court and because the Supreme Court had not yet resolved same, we find it was proper for the trial court to follow People v Till, 80 Mich App 16; 263 NW2d 586 (1977); People v Wilder, 82 Mich App 358; 266 NW2d 847 (1978), and People v Lovett, 85 Mich App 534; 272 NW2d 126 (1978). Since Till and its progeny allowed malice to be imputed from the commission of the underlying felony, it was not reversible error for the trial court to instruct so.
Next, defendant claims that the first-degree felony-murder statute does not apply to murders committed in the course of a misdemeanor larceny, with which defendant claims he was charged. Hence, we must determine if defendant’s assertion is correct.
The information charging defendant stated: "While in the perpetration or attempted perpetration of a 'larceny’ [defendant] did kill and murder one Phillip Kenneth Fields, contrary to Sec. 750.316, MCLA.” The information did not specify whether the "larceny” was a misdemeanor or a felony larceny. Defendant now contends on appeal that, since the information pled no circumstances to raise the larceny from a misdemeanor to a felony, defendant automatically was charged with a misdemeanor larceny.
The alleged defect in the information cannot be raised for the first time on appeal. The rule is set forth in MCL 767.76; MSA 28.1016 and reads in pertinent part:
"No indictment shall be quashed * * * nor shall any conviction be set aside or reversed on account of any defect in form or substance of the indictment, unless the objection to such indictment, specifically stating the defect claimed, be made prior to the commencement of the trial or at such time thereafter as the court shall in its discretion permit * * *.”
The accepted rule is that any amendment to an information not prejudicial to the rights of defendant should be allowed. People v Morris, 23 Mich App 688; 179 NW2d 405 (1970). The defect complained of here was amendable upon proper objection. People v Sutherland, 104 Mich 468, 472; 62 NW 566 (1895). The controlling consideration is whether the amendment would have been prejudicial to defendant and to show prejudice, one must first show surprise. Morris, supra, p 692.
Defendant made no timely objection to the information and does not claim that he would have been surprised had the information been amended below so as to specify a felony larceny. See People v Fuzi, 46 Mich App 204; 208 NW2d 47 (1973). In any event, it would have been difficult for defendant to claim surprise. Our careful review of the record indicates more than sufficient evidence to show that defendant committed larceny from the person, a felony larceny. The trial judge did, in fact, instruct on this offense. Moreover, we can easily assume that, since defendant was charged under the first-degree felony-murder statute, the intent of the prosecution was to charge him with a felony larceny.
Since defendant failed to object to the information timely, it is unnecessary for us to determine whether the felony-murder statute applies to misdemeanor larcenies under the broad language found in the statute "larceny of any kind”.
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T. M. Burns, J.
On July 27, 1981, defendant pled guilty to breaking and entering an occupied dwelling with intent to commit larceny, MCL 750.110; MSA 28.305, and was subsequently sentenced to from 3 to 15 years imprisonment. He appeals as of right.
Defendant argues that the factual basis was insufficient to support breaking and entering a dwelling with intent to commit larceny. During the plea-taking proceeding, defendant admitted that on July 3, 1981, his brother had broken into a house through the basement window. The brother then came out through the patio door and went back home and told defendant about it. Defendant had not previously known about this crime. Then, both went to the house and stole a number of items. Although they put all the stolen goods in defendant’s brother’s room, they intended to divide the property.
To be convicted of this crime as a principal, defendant would have had to (1) break and (2) enter (3) an occupied dwelling (4) with felonious intent. People v Flores, 92 Mich App 130; 284 NW2d 510 (1979), lv den 407 Mich 932 (1979). The last three elements have obviously been shown here: defendant himself entered an occupied dwelling intending to steal. The first element, a breaking, is established if even the slightest force is used in pushing open an already open door. People v White, 153 Mich 617; 117 NW 161 (1908). Unfortunately, the record is just too unclear on this point. Defendant’s brother could have left the patio doors wide open and, conceivably, neither opened any doors or windows during the second and all subsequent entries into the house. We do not believe that the factual basis is sufficient to establish the inculpatory inference that a second breaking (one committed by defendant) occurred. As such, the factual basis is insufficient to prove that defendant committed the crime as a principal. People v Kyllonen, 80 Mich App 327; 263 NW2d 55 (1977); People v Stewart, 69 Mich App 528; 245 NW2d 121 (1976).
However, one may also be convicted as a principal even if he merely aided and abetted in the crime. MCL 767.39; MSA 28.979. One need not actually do the breaking to be guilty as an aider and abettor to breaking and entering. People v Clark, 34 Mich App 70; 190 NW2d 726 (1971). A defendant could be guilty as an aider and abettor even if he were merely the "lookout”, DeLoach v State, 142 Ga App 666; 236 SE2d 904 (1977), or the driver of the car used in taking the principal to the building, State v Wilson, 221 Kan 359; 559 P2d 374 (1977).
People v Hill, 36 Mich App 679, 681; 193 NW2d 909, 910-911 (1971), is quite close to the present case. There, this Court affirmed based on the following colloquy:
”Q. [Court]: Did you go into that house?
"A. [Defendant]: Yes, sir.
r’Q. What time of the day or night?
"A. About 12:30, 11:00 o’clock.
”Q. How did you get in?
"A. It was already open, some of our boys had broke into it. They were talking about going back and get the stuff so I went in and tried to get it before them.”
Unfortunately, Hill is a little ambiguous. The facts tend to show that the defendant knew about the breaking ahead of time, being involved in a conspiracy with the others. This same ambiguity is even more apparent in People v Hailey, 67 Mich App 540; 241 NW2d 282 (1976).
State v Franks, 377 So 2d 1231 (La, 1979), is directly on point. There, the defendant discussed the burglary with others but decided not to join in. Later, one of the burglars asked the defendant for his truck and to help them cart away the stolen property. The defendant then drove his truck to the apartment and helped the others unload the stolen property. The court ruled that the defendant could be convicted under these facts as a principal. However, it also ruled that the defendant had been properly charged as an accessory after the fact to the burglary. Such a result is impossible in Michigan. A person guilty of the substantive offense cannot also be guilty of being an accessory after the fact. People v Lucas, 402 Mich 302; 262 NW2d 662 (1978).
State v Best, 232 NC 575; 61 SE2d 612 (1950), is also on point. There, the court affirmed where the principal had entered the house and opened the door ahead of time. It held that the defendant was guilty of "nonburglariously” breaking into the house as an aider and abettor when he and the principal later went into the house and stole a number of items. However, this case does not exactly explain why such a result should be correct.
To be convicted as an aider and abettor, a defendant must have aided, encouraged, instigated, or assisted the criminal enterprise in some way. Peo ple v Palmer, 392 Mich 370; 220 NW2d 393 (1974); LaFave & Scott, Criminal Law, p 504. Furthermore, he must have either intended to aid the substantive offense or participated while knowing that the co-participant possessed the requisite intent. People v Triplett, 105 Mich App 182; 306 NW2d 442 (1981). See also Hicks v United States, 150 US 442; 14 S Ct 144; 37 L Ed 1137 (1893). Mere knowledge of the crime is insufficient. People v Burrel, 253 Mich 321; 235 NW 170 (1931); People v Killingsworth, 80 Mich App 45; 263 NW2d 278 (1977).
Yes, defendant did intend to aid his brother in committing a crime. However, he did not specifically intend to aid in the breaking and entering but in the larceny itself:
"Burglary is complete upon entry of the structure with the requisite intent to commit a felony or petit larceny, even if the intent is not subsequently fulfilled. * * * It is the intent which exists in the mind of the perpetrator at the moment of entry which defines burglary.
"It is the intent at the moment of entry of the structure which appellant must have shared with his companion in order to be guilty of burglary as a principal. If appellant did not know at that moment what was afoot, there is no way that he could have shared the specific criminal intent required for guilt as a principal.” (Emphasis in original.) People v Markus, 82 Cal App 3d 477, 481-482; 147 Cal Rptr 151 (1978).
Merely being subsequently connected with the stolen property after the breaking and entering is insufficient to convict of breaking and entering:
"Breaking and entering being essential elements of the crime of burglary, no subsequent connection with property stolen as the result of a burglary can make one guilty of burglary who was not connected with the original breaking and entry.” Maines v State, 97 Okla Crim 386, 388; 264 P2d 361 (1953).
See also People v Hunt, 90 Ill App 3d 496; 45 Ill Dec 882; 413 NE2d 215 (1980); Beard v State, 410 P2d 567 (Okla Crim, 1965).
In People v Turner, 120 Mich App 23; 328 NW2d 5 (1982), we affirmed the defendant’s conviction for armed robbery where she had hidden the stolen money in her bra after the robbery had occurred. However, Turner is different. There, the defendant intended to aid the armed robbery itself. Armed robbery, being a continuing offense, is not terminated until the perpetrators reach a place of temporary safety. See People v Clark, 113 Mich App 477; 317 NW2d 664 (1982). However, defendant in the present case clearly intended to aid his brother in the larceny. He did not need to aid his brother in the breaking and entering since it had already occurred. As such, he did not have both the knowledge and the criminal intent to bring about the illegal end required to be convicted as an aider and abettor. He did not specifically intend by his conduct to aid in the breaking and entering. See Hensel v State, 604 P2d 222 (Alas, 1979).
Turner can be distinguished in another way too. Even though robbery is a continuing offense, breaking and entering is not. People v Jardine, 116 Cal App 3d 907, 919; 172 Cal Rptr 408 (1981). The crime of breaking and entering is complete when the entrance is gained. State v Allen, 125 Ariz 158; 608 P2d 95 (1980). In Carr v Sheriff, Clark County, 95 Nev 688, 689; 601 P2d 422 (1979), the court reversed the defendant’s conviction for burglary with the use of a deadly weapon even though he had used the knife once inside the house: "[T]he crime of burglary was complete upon his alleged unlawful entry of the house and was not accomplished with the use of the knife”. See Frost v Sheriff, Clark County, 95 Nev 781; 602 P2d 193 (1979). Defendant could not have aided in his brother’s breaking and entering since it had already terminated. See People v Karst, 118 Mich App 34; 324 NW2d 526 (1982), lv den 414 Mich 927 (1982).
This case is remanded with instructions to follow the procedure outlined in Guilty Plea Cases, 395 Mich 96, 129; 235 NW2d 132 (1975), cert den 429 US 1108; 97 S Ct 1142; 51 L Ed 2d 561 (1977). See also People v Sees, 104 Mich App 477; 304 NW2d 612 (1981), lv den 412 Mich 897 (1982).
We realize that the terms "burglary” and “breaking and entering” have different meanings in Michigan. People v Whetstone, 119 Mich App 546; 326 NW2d 552 (1982); People v Saxton, 118 Mich App 681; 325 NW2d 795 (1982), lv den 414 Mich 931 (1982). However, this particular difference is not material in the present case. We believe that we may justifiably look to "burglary” statutes of other states without confusing the distinction Michigan places on the different terms.
This analysis does not necessarily imply that a defendant cannot be convicted of felony murder in the perpetration of a breaking and entering unless he kills his victim while actually entering the building. The cases have affirmed convictions where the killing was incidental to the felony and associated with it as one of its hazards. State v Conner, 241 NW2d 447 (Iowa, 1976); United States v Naples, 192 F Supp 23 (D DC, 1961), rev’d on other grounds 113 US App DC 281; 307 F2d 618 (1962). | [
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Per Curiam.
The Department of Treasury (department) appeals as of right from a January 11, 1982, order of the Court of Claims determining that certain computer software programs did not constitute tangible personal property subject to taxation under the Use Tax Act, MCL 205.91 et seq.; MSA 7.555(1) et seq., and ordering use tax refunds.
In June 1978, the department assessed use taxes against Maccabees Mutual Life Insurance Company (Maccabees) in connection with its use of certain computer software programs in its electronic data processing department between 1973 and 1975. The total tax assessment was $4,276.77. This sum was paid; and on November 13, 1978, Maccabees filed an action in the Court of Claims seeking a refund and declaratory relief. In November 1979, the department assessed use taxes against City National Bank of Detroit (CNB) in connection with certain computer software programs used by CNB between 1975 and 1977. The total assessment was $8,948. CNB also paid the assessment. On March 11, 1980, CNB filed a complaint in the Court of Claims, seeking a refund and declaratory relief. The two cases were consolidated on May 12, 1980.
On October 8, 1981, plaintiffs moved for summary judgment based on OCR 1963, 117.2(3). On November 6, 1981, the department moved for summary judgment under the same court rule. A hearing was held on December 2, 1981. In an opinion and order dated January 11, 1982, the court granted plaintiffs’ motion for summary judgment, determining that the computer software in question was intangible personal property and, therefore, not subject to the use tax. The department was ordered to issue a refund to plaintiffs for the amount wrongfully collected plus interest.
GCR 1963, 117.2(3), allows the trial court to grant summary judgment where there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Szidik v Podsiadlo, 109 Mich App 446, 448-449; 311 NW2d 386 (1981). A motion based on this subrule is designed to test whether there is factual support for a claim. Partrich v Muscat, 84 Mich App 724, 730; 270 NW2d 506 (1978). The court must consider the pleadings, affidavits and other available evidence and be satisfied that the claim asserted cannot be supported by any evidence at trial. Jacobs v Detroit Automobile Inter-Ins Exchange, 107 Mich App 424, 432; 309 NW2d 627 (1981), lv den 414 Mich 872 (1982). The court must be satisfied that it is impossible for the claim to be supported at trial because of some deficiency which cannot be overcome. Rizzo v Kretschmer, 389 Mich 363, 372; 207 NW2d 316 (1973). The court must give the benefit of any reasonable doubt to the opposing party and inferences are to be drawn in favor of the one opposing the motion. Littsey v Wayne State University Bd of Governors, 108 Mich App 406, 416; 310 NW2d 399 (1981), lv den 413 Mich 882 (1982). A party opposing the motion for summary judgment has the burden to come forward with some evidentiary proof that a genuine issue of fact does exist. If the opposing party fails to do so, the motion for summary judgment is properly granted. Durant v Stahlin, 375 Mich 628, 640; 135 NW2d 392 (1965).
The use tax was enacted for the purpose of levying a specific tax for the privilege of using, storing, or consuming tangible personal property. It is designed to impose an excise tax on the use, storage, or consumption of tangible personal property brought into the state in interstate commerce, after it has come to rest in Michigan. The use tax is complementary to the sales tax. Western Electric Co v Dep’t of Revenue, 312 Mich 582, 596; 20 NW2d 734 (1945); Southeastern Michigan Transportation Authority v Secretary of State, 104 Mich App 390, 399-400; 304 NW2d 846 (1981).
In 1979 AC, R 205.5, tangible personal property is defined as follows:
"Tangible personal property embraces all goods, wares, merchandise, products and commodities, all tangible things and substances which are dealt in, capable of being possessed and exchanged.”
In his opinion, the judge determined that the software programs in question were intangible personal property. This conclusion is bolstered by the deposition testimony of Robert Sherin, Maccabees’ expert witness and president of Nova Computer Service, Inc.; Leo Juip, Maccabees’ director of systems and planning; and Michael Marcus, Maccabees’ vice president of corporate planning and development.
Robert Sherin maintained that computer software programs are intangible personal property and are not subject to sales and use taxation statutes that tax tangible personal property. In support of this contention, Sherin raised several points: Any tangible personal property attendant to software is inconsequential because software can be entered into a computer via telephone lines; communcations media, such as punch cards and tapes, are transitory and are destroyed or reused after the software is entered into a computer; the software program exists as imperceivable binary pulses; the tangible communication media has little or no value apart from the program. Sherin conceded that some software programs, e.g., canned programs such as TV games, were tangible and taxable under use and sales tax statutes. The standard programs considered by Sherin can be bought at retail, need no documentation, training or expert engineering support, and can be used instantaneously. In contrast, the programs in question are customized application programs, needing prelease consulting and continuing on-sight updating, and are not an end product in themselves.
The department assessed use taxes against three software programs used by Maccabees: Intercomm, used to direct the computer to perform certain computations to produce a policy status report; GRASP, used to direct the computer to perform more than one processing task at a time and produce an accounting report; and MARK IV, used to direct the computer to prepare a business report. Leo Juip stated that each of the systems is unique to Maccabees because they have been customized. Juip indicated that the programs are unusable by other insurance firms because their business requirements vary.
Michael Marcus noted that each application system had to be tailored to Maccabees’ operating system environment. He stressed that computer software is dynamic and changing.
The court’s opinion is also supported by case law from other jurisdictions. See Dist of Columbia v Universal Computer Associates, Inc, 151 US App DC 30; 465 F2d 615 (1972); Commerce Union Bank v Tidwell, 538 SW2d 405 (Tenn, 1976), where the courts held that computer software is intangible personal property. See generally, University Microfilms v Scio Twp, 76 Mich App 616, 619-620; 257 NW2d 265 (1977), lv den 402 Mich 880 (1978), where this Court distinguished microfilms from computer software, finding the former to be tangi ble personal property subject to personal property taxation.
At oral argument before the Court of Claims, the department admitted that the software programs were customized. The department maintains that some portions of these programs must be standard or canned and that it seeks only to tax the canned portions of the programs. By failing to present any evidentiary proof that a portion of the programs in question are standard or canned, the department has failed to carry its burden of raising a genuine issue of fact. Durant, supra, p 640. The depositional evidence presented by plaintiffs illustrates that the software programs in question represent a personalized service, customized to fit plaintiffs’ particular computer configurations. Accordingly, the Court of Claims’ grant of summary judgment should be affirmed.
Customized computer software programs should be distinguished from canned software programs, e.g., TV games, albums, and cassette tapes, because the latter are all end products in themselves. The focus of the instant transaction is on the personalized service of the software vendors, an intangibles transaction.
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T. M. Burns, P.J.
On February 2, 1981, the trial court granted plaintiff’s motion for summary judgment. Defendants Antonio and Maria Paletta appeal as of right.
In early 1979, plaintiff owned a 1978 "Silver Edition” Corvette allegedly worth $12,500. On August 9, 1979, plaintiff delivered the car to Colin Brook to transport it to England to sell. Simultaneously, plaintiff transferred the title of the car to Brook. Although he signed his own name on the certificate of title, which was subsequently notarized, he failed to place Brook’s name on it. However, rather than shipping the car to England, Brook sold it to defendants for $8,500 which was borrowed from defendant Liberty State Bank & Trust. Brook failed to turn the money over to plaintiff.
Eventually, plaintiff sued for the car. Defendants responded by filing an answer and a motion for summary judgment. Rather than rule on the motion, the trial court referred the dispute to an officer it called a Master in Chancery for fact finding. Even though defendants objected to the Master in Chancery’s findings of fact, the trial court granted plaintiff’s summary judgment motion based on these findings.
Defendants first argue that the summary judgment should be reversed because the Michigan Constitution prohibits the office of Master in Chancery. Const 1963, art 6, § 5. We need not determine whether or not the parties may stipulate to such a procedure, however, because of our resolution of the next issue. Yet, we suggest trial courts not use this procedure. See Brockman v Brockman, 113 Mich App 233; 317 NW2d 327 (1982).
The trial judge granted plaintiff’s motion claiming that the undisputed facts showed that defendants were not good faith bona fide purchasers for value. A summary judgment is inappropriate where a material fact is created when the affidavits, pleadings, depositions, admissions and documentary evidence, viewed in the light most favorable to the party opposing the motion, might permit inferences contrary to the facts as asserted by the movant. Opdyke Investment Co v Norris Grain Co, 413 Mich 354; 320 NW2d 836 (1982).
Generally, when faced with a choice, as here, between two innocent parties, courts will rule in favor of the party other than the one who made the fraud possible. Grahan v Sinderman, 238 Mich 210; 213 NW 200; 51 ALR 1225 (1927). Because Brook defrauded plaintiff rather than stole from him, defendants will prevail if they can prove that they are good faith bona fide purchasers for value. MCL 440.2403; MSA 19.2403.
Specifically, the trial judge found that defendant Antonio Paletta was not a good faith bona fide purchaser for value:
"[B]ecause he had knowledge of Colin Brook’s unreliability before the Silver Corvette was purchased; because Brook was too willing to sell the Corvette at any price acceptable to the bank even if such price was below market value, and because defendant should have been alerted by the incomplete title to the fact that he should at least have contacted plaintiff to confirm Colin Brook’s statements.”
Plaintiff first argues that defendants could not have been good faith bona fide purchasers for value because the certificate of title did not have the transferee’s name on it. A sale of a car is void where the sale violates the Michigan Vehicle Code. Endres v Mara-Rickenbacker Co, 243 Mich 5; 219 NW 719 (1928); Dodson v Imperial Motors, Inc, 295 F2d 609 (CA 6, 1961). A car buyer is charged with knowledge of the pertinent statutes. Cain v Kroblen GMC Truck Sales, Inc, 360 Mich 244; 103 NW2d 353 (1960); Bayer v Jackson City Bank & Trust Co, 335 Mich 99; 55 NW2d 746 (1952). Therefore, the relevant inquiry is whether or not Michigan’s statutes require the transferee’s name to be on the certificate of title. If so, defendants cannot be good faith bona fide purchasers for value.
A number of cases have stated that the transfer ee’s name must be on the certificate of title. E.g., Fick v Mills, 347 SW2d 381 (Tex Civ, 1961); Hawkins v M & J Finance Corp, 238 NC 174; 77 SE2d 669 (1953); Swartz v White, 80 Utah 150; 13 P2d 643 (1932); Rasmussen v O E Lee & Co, Inc, 104 Mont 278; 66 P2d 119 (1937). However, each of these cases relied on its own state’s motor vehicle statute. Michigan does not require the transferee’s name to be on the certificate of title when a car is sold. This Court ruled in Albanys v Mid-Century Ins Co, 91 Mich App 41, 44-45; 282 NW2d 11, 13 (1979), rev’d on other grounds 407 Mich 925; 285 NW2d 202 (1979):
"The statute only requires an owner to 1) endorse the certificate of title and 2) deliver the certificate to the transferee. There is no requirement that the transferee’s name be placed on the certificate.
"Additionally, the purpose of the statute is 'to discourage and to prevent the stealing of automobiles, to protect the public against crime’. * * * This objective is met by requiring that a signed, notarized title be delivered to a transferee in possession in order to transfer title. Requiring the transferee’s name on the certificate of title would not further the statutory purpose. The notarized signature of the transferor sufficiently ensures that the transferor intends to sell the vehicle involved.”
In granting summary judgment, the trial judge relied on Jackson City Bank & Trust Co v Blair, 333 Mich 399, 407; 53 NW2d 493, 497; 32 ALR2d 920, 926 (1952):
"The rule of Willey v Snyder [34 Mich 60 (1876)], casts the burden on the subsequent purchaser or mortgagee to make reasonable inquiry beyond the description in the mortgage itself if it furnishes the means of identification; and if such reasonable inquiry would reveal the complete identification, the filing of the mortgage will constitute adequate constructive notice.”
However, the incomplete certificate of title did not give defendants constructive notice under the present situation. The validly executed and notarized certificate of title sufficiently complied with the motor vehicle code and did not give defendants notice of any contrary claims.
Plaintiff next argues that the low costs of the car put defendants on constructive notice that Brook did not really own it. MCL 440.1201(19); MSA 19.1201(19) defines good faith as: "honesty in fact in the conduct or transaction concerned”. This is a "subjective test of good faith, sometimes referred to as the 'white heart and empty head’ test, rather than the objective or 'reasonably prudent man’ test”. Steinheimer, Practice Commentary to § 1201(19), 21 Michigan Compiled Laws Annotated, p 67. Before Michigan adopted the Uniform Commercial Code, good faith required the absence of participation in the fraud or collusion with the wrongdoer and the absence of knowledge or notice and also of facts to put an ordinarily prudent person on inquiry. Austin v Hayden, 171 Mich 38; 137 NW 317 (1912). However, even under the objective test, although a factfinder may infer fraud from the price being below value, such a consideration was a jury question. Pinkerton Brothers Co v Bromley, 119 Mich 8; 77 NW 307 (1898). Therefore, we hold that, under the subjective test adopted by the UCC, the question of whether the low price of the car was sufficient to put defendants on constructive notice that Brook did not really own it is a jury question. Although the price of the car is evidence that defendants may not have been good faith bona fide purchasers for value, it may not be used in and of itself to decide a motion for summary judgment.
Plaintiff last argues that defendants Paletta could not have been bona fide purchasers for value because Antonio Paletta’s prior dealings with Brook placed him on constructive notice that Brook did not own the car. In Jones v Linebaugh, 34 Mich App 305; 191 NW2d 142 (1971), the buyer of a car knew that he was dealing with a person who did not have title to the two cars the buyer wanted to buy. In fact, the buyer knew the name of the true owner of the cars. The cars were delivered to the buyer and payment was made before any documents of title were transferred. (Since the cars were antiques, apparently, this Court did not address the question of whether or not the motor vehicle code had been complied with.) This Court ruled that the trial judge erred in granting summary judgment against the buyer because the question of whether or not the buyer had notice inconsistent with his status as a good faith purchaser was an issue "which cannot be resolved on summary judgment”. Id., p 310. Because the test for good faith is subjective, whether or not defendants had actual or constructive notice that Brook did not own the car through their previous dealings with him is a jury question.
Reversed and remanded.
On January 27, 1981, the parties stipulated that defendant Liberty State Bank & Trust be dismissed from the suit.
The trial judge found that Maria Paletta was not a good faith bona fide purchaser for value either because she had seen that Brook’s name had not been placed on the certificate of title or because the car’s price was below fair market value. For simplicity’s sake, we shall refer to either Maria or Antonio or both as "defendants” without distinguishing between them. Obviously, if Antonio is a good faith bona fide purchaser for value, Maria is also.
Drettmann v Marchand, 337 Mich 1; 59 NW2d 56 (1953), illustrates this point. There, one of the defendants owned a 1948 Cadillac which he used as security for a chattel mortgage in order to obtain a loan from the plaintiff. Although the plaintiff kept the certificate of title, it remained in the names of that defendant and his wife. Eventually, they sold the car to defendant Ford, the operator of a used-car lot. The Supreme Court held that Ford was not a bona fide purchaser because Ford had known that the certificate of title was held by the plaintiff and because the certificate of title had in fact not been transferred. Of course, if Ford had proven that he did not have notice, he would not have been liable to the plaintiff. MCL 440.2403; MSA 19.2403. | [
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D. F. Walsh, P.J.
Defendant, White Pine Copper Division, Copper Range Company, appeals from the February 18, 1982, determination of the Workers’ Compensation Appeal Board that defendant is liable for payment of partial disability benefits to plaintiff, Larry J. Franks, in the weekly amount of $79 during periods of wage loss from May 24, 1971, until further order of the Workers’ Compensation Bureau. MCL 418.361(1); MSA 17.237(361)(1).
Plaintiff’s employment with defendant mining company began in 1970. On March 7, 1971, he sustained a work-related injury to his right hand, which resulted in the amputation of four fingers.
Following his accident, plaintiff received 215 weeks of specific loss benefits pursuant to MCL 418.361(2)(h); MSA 17.237(361)(2)(h). He returned to work on May 24, 1971. Because of his injury, he was never again able to perform all of the jobs associated with his former position. With the exception of lay-off periods extending from January 4, 1976, to April 26, 1976, and November 13, 1976, to May 31, 1977, plaintiff worked for defendant until August 1, 1977, when he was permanently laid off. During all periods of lay-off, he received unemployment compensation benefits.
On appeal, defendant’s principal challenge to the appeal board’s decision concerns the board’s refusal to reduce defendant’s liability for workers’ compensation benefits by the amount of unemployment compensation benefits which plaintiff had received. Defendant argues, inter alia, that the setoff was required because the unemployment benefits "constituted an earning capacity”. MCL 418.371(1); MSA 17.237(371X1). The appeal board responded to this claim as follows:
"Credit for unemployment benefits received by plaintiff is requested by defendant * * * on the theory that such benefits represent a wage earning capacity that requires reimbursement by plaintiff. That plaintiff retains some residual capacity within the field of his skill does not diminish defendant’s liability for payment of its entire obligation for partial disability benefits, despite plaintiff’s corollary receipt of unemployment compensation while he remained willing and able to perform any available work, limited by his post-injury capacity.”
We agree with the appeal board and further observe that the Legislature expressed an intent directly contrary to defendant’s suggestion in MCL 418.811; MSA 17.237(811), which, prior to 1982, provided in part:
"[B]enefits derived from any other source than those paid or caused to be paid by the employer as provided in [the Worker’s Disability Compensation Act, shall not] be considered in fixing the compensation under this act * * * »
Defendant also argues that MCL 418.358; MSA 17.237(358) (hereinafter referred to as § 358), applies to the instant fact situation. That statute, effective January 1, 1982, provides:
"Net weekly benefits payable under section 351, 361, or lump sum benefits under section 835, shall be reduced by 100% of the amount of benefits paid or payable to the injured employee under the Michigan employment security act, Act No. 1 of the Public Acts of the Extra Session of 1936, as amended, being sections 421.1 to 421.67a of the Michigan Compiled Laws, for identical periods of time and chargeable to the same employer.”
The issue presented is whether this setoff provision applies to awards made to compensate employees for injuries predating the provision’s effective date. The appeal board concluded that "the lack of any expressed retroactive effect for section 358’s statutory adjustments renders its operation prospective only, thus inapplicable to plaintiffs 1971 injury. See Briggs v Campbell, Wyant & Cannon Foundry, 379 Mich 160, 164-166; 150 NW2d 752 (1967)”.
Defendant first suggests that the statute clearly and unambiguously provides for the requested setoff. If this were so, further interpretation of the statute would be unnecessary. Owendale-Gagetown School Dist v State Bd of Ed, 413 Mich 1, 8; 317 NW2d 529 (1982); Selk v Detroit Plastic Products, 120 Mich App 135; 328 NW2d 15 (1982).
We disagree with defendant’s characterization of the statute. The statute does not clearly and unambiguously require setoff for unemployment compensation benefits when work-related injury predates the statute’s effective date. The statutory language is significantly distinguishable from that in MCL 418.801(5); MSA 17.237(801X5), which provides for 12% interest on workers’ compensation awards and which this Court has ruled applicable to awards due prior to that statute’s effective date. Selk v Detroit Plastic Products, supra.
Defendant next argues that adherence to established principles of statutory interpretation requires retroactive application of the statute.
The primary object of judicial interpretation of statutes is to ascertain and give effect to the intent of the Legislature. All other rules of construction and interpretation "serve but as guides to assist the courts in determining such intent with a greater degree of certainty”. Grand Rapids v Crocker, 219 Mich 178, 182; 189 NW 221 (1922); Van Antwerp v State, 334 Mich 593; 55 NW2d 108 (1952). In our judgment, the Legislature did not intend that § 358 apply to awards made for injuries occurring before its effective date.
The statute was part of 1980 PA 357. Although it was approved by the Legislature on December 30, 1980, its effective date was postponed, by express provision of the Legislature, until January 1, 1982. 1980 PA 357, § 3. This postponement is some evidence that the Legislature never intended the setoff provision to apply retroactively. Mulligan v Murphy, 14 NY2d 223; 250 NYS2d 412; 199 NE2d 496 (1964). Had the Legislature intended retroactive application, considerable administrative bur den would have been avoided by simply giving the statute immediate effect. During 1980, there were certainly employers who voluntarily paid workers’ compensation benefits and who, pursuant to the 1981 version of MCL 418.811; MSA 17.237(811), made no adjustment for unemployment compensation benefits. In postponing the statute’s effective date, the Legislature surely indicated its intention that those employers, and employers in defendant’s position, not benefit from the setoff provision.
In addition, § 358 cannot be considered in isolation from 1981 PA 192-203, which were approved on December 30, 1981, and became effective on January 1, 1982. We are persuaded that, by postponing the effective date of § 358, the Legislature indicated its intent that the section’s applicability be effective concurrently with the adjustments mandated by the 1981 public acts. Of particular interest is 1981 PA 203, which provides for coordination of weekly workers’ compensation benefits with benefits from various sources, including self-insurance plans, wage continuation plans, disability insurance policies provided by the employer, social security old-age insurance, and other pension or retirement plans. MCL 418.354; MSA 17.237(354). The Legislature has expressed its intent that 1981 PA 203 "was not designed to disrupt benefits which were already being received by an employee prior to the effective date of this act or benefits resulting from injuries incurred prior to the act’s effective date”, and that the coordination of benefits provided for in the act is "not to be applied retroactively to those receiving worker’s disability compensation payments or those injured prior to the effective date of this act”. Senate Concurrent Resolution No 575, adopted by the Senate on April 1, 1982 (1982 Senate Journal, p 705), adopted by the House of Representatives on May 18, 1982 (1982 House Journal, p 1262). (For text of resolution, see 1982 Senate Journal, p 626). Although legislative resolutions are not binding, they are entitled to respectful consideration. Boyer-Campbell Co v Fry, 271 Mich 282, 296; 260 NW 165 (1935). We are persuaded that the Legislature intended the entire coordination-of-benefits reform to apply only to injuries incurred after the effective dates of those reforms. We can perceive no reason why the Legislature’s intent concerning § 358 would have differed from that concerning 1981 PA 203.
Our holding comports with the general rule that statutes are to be applied only prospectively unless the Legislature expressly or impliedly indicates its intention to give retroactive effect. Hughes v Judges’ Retirement Bd, 407 Mich 75, 85; 282 NW2d 160 (1979). No such intention is evident in the case of § 358. In addition, prospective application of § 358 is consistent with the principle that the law in effect at the time of injury controls an employee’s rights to workers’ compensation benefits. Tarnow v Railway Express Agency, 331 Mich 558; 50 NW2d 318 (1951).
Exclusively prospective application of § 358 does not violate the principle that purely "remedial” or "procedural” statutes are to be given retroactive effect. Ballog v Knight Newspapers, Inc, 381 Mich 527, 533-534; 164 NW2d 19 (1969); Hansen-Snyder Co v General Motors Corp, 371 Mich 480; 124 NW2d 286 (1963). Adoption of § 358 did not effect a purely procedural change in the Worker’s Disability Compensation Act. Compare Cichecki v Ham tramck, 382 Mich 428; 170 NW2d 58 (1969); Mc-Avoy v H B Sherman Co, 401 Mich 419; 258 NW2d 414 (1977); Hansen-Snyder Co v General Motors Corp, supra. Nor are we persuaded that the amendment can be fairly characterized as purely "remedial”. Cases applying that exception to the presumption of prospective applicability have generally dealt with legislative responses to the "pernicious”, unforeseen consequences of existing legislation, Freij v St Peters Evangelical Lutheran Church, 72 Mich App 456; 250 NW2d 78 (1976), lv den 399 Mich 862 (1977), or with restoration of common-law remedies which had been barred by statute, Rookledge v Garwood, 340 Mich 444; 65 NW2d 785 (1954); Munson v VaneStecker Co, 347 Mich 377; 79 NW2d 855 (1956); Lahti v Fosterling, 357 Mich 578; 99 NW2d 490 (1959). In addition, those cases did not blindly apply the "remedial” legislation exception but rather extensively explored the question of the Legislature’s intent. See, e.g, Rookledge v Garwood, supra, and Lahti v Fosterling, supra.
While § 358 is "remedial” in the sense that it was adopted to effect a reform which, in the eyes of many, will correct certain injustices in the system, it will also significantly and detrimentally affect the substantive right of certain injured employees to receipt of workers’ compensation benefits. We are persuaded, therefore, that the Legislature’s failure to provide clearly and unequivocally for applicability to cases of injuries predating its effective date mandates prospective application. The appeal board’s ruling to that effect is affirmed.
Defendant also argues that the appeal board has impermissibly ordered defendant "to pay wage loss benefits for partial disability for the same time periods that it paid full compensation for the specific loss of the hand”. Plaintiff concedes that such "double payment” is not permissible and states that "defendant is clearly entitled to credit for specific loss payments already paid”. The relevant provisions of the Workers’ Disability Compensation Act support the parties’ assessment of defendant’s liability. MCL 418.361, subds (1) and (2); MSA 17.237(361), subds (1) and (2).
Defendant next claims that the appeal board exceeded its powers of review in ordering payment of benefits for the period preceding August 2, 1977. The hearing referee had directed payment of benefits from August 2, 1977, and plaintiff did not file an application for review on that issue. Defendant’s argument is without merit; the appeal board was obliged to conduct a de novo review of the hearing referee’s decision. Kostamo v Marquette Iron Mining Co, 405 Mich 105, 135; 274 NW2d 411 (1979).
Defendant’s challenge to the test applied by the appeal board in determining disability is also without merit. The record indicates that the appeal board properly considered plaintiff’s inability to perform the work he was doing at the time of his injury. Powell v Casco Nelmor Corp, 406 Mich 332, 350; 279 NW2d 769 (1979). The record supports the board’s determination of disability.
Defendant’s remaining challenge to the appeal board’s decision has been waived. Kleinschrodt v General Motors Corp, 402 Mich 381; 263 NW2d 246 (1978), reh den 402 Mich 965 (1978).
Affirmed.
Defendant’s suggestion that the setoff was required under MCL 418.371(1); MSA 17.237(371X1) is further belied by defendant’s observation that: "Employers and industry had for years objected to being required to pay both unemployment and disability benefits for the same time periods. After much discussion and negotiation the Legislature passed [MCL 418.358; MSA 17.237(358)] to remedy that situation.”
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Per Curiam.
Defendants are two of four defendants jointly tried by jury for five offenses: kidnapping, MCL 750.349; MSA 28.581; felonious assault, MCL 750.82; MSA 28.277; carrying a firearm or dangerous weapon with unlawful intent, MCL 750.226; MSA 28.423; carrying a dangerous weapon in a motor vehicle, MCL 750.227; MSA 28.424; and possession of a firearm during the commission of a felony, MCL 750.227b; MSA 28.424(2).
Defendant Davis appeals his conviction of all five charged offenses; defendant Kocsis appeals his conviction of kidnapping and felonious assault. Defendant Kocsis’ only claim of error concerns the prosecutor’s failure to endorse and produce certain alleged res gestae witnesses and will be addressed infra.
Davis first argues that he was deprived of effective assistance of counsel by the joint representation of all of the defendants by retained counsel. He must show actual prejudice. People v Mendez, 101 Mich App 735; 300 NW2d 327 (1980).
There has been no such showing. All four defendants testified, completely denying the truth of the complainant’s testimony that he had been kidnapped, threatened with a pair of brass knuckles and a pistol, and tied up. Given the nature of the defense asserted, that there had been no criminal activity whatsoever, counsel was not required to draw a line of demarcation as to the relative culpability of his clients. Compare People v Gardner, 406 Mich 369; 279 NW2d 785 (1979), reh den 407 Mich 1150 (1979), cert den 444 US 1093 (1980). Davis did not lose the benefit of arguments that the evidence linking him to the crime was weak or suspect. Compare People v Bentley, 402 Mich 121; 261 NW2d 716 (1978).
Davis’ claim that the verdict was against the great weight of the evidence has not been preserved for appeal as defendant has not moved for a new trial. People v Cage, 83 Mich App 534; 269 NW2d 213 (1978).
Davis further argues he was denied a fair trial by prejudicial pre-trial publicity. Two members of the jury heard or read news accounts of the case. However, each stated that he could render an impartial verdict despite possible recollection of news accounts of the crime. Knowledge of publicity concerning a criminal case does not automatically render a juror unfit to serve unless the juror has a preconceived opinion concerning defendant’s guilt or innocence which cannot be laid aside. MCL 768.10; MSA 28.1033; People v Dixon, 84 Mich App 675; 270 NW2d 488 (1978). Davis failed to show that any juror had an opinion of the case which prevented him from rendering an impartial verdict according to the evidence at trial.
Davis also claims that the trial judge erred in denying counsel’s motion for a mistrial on the ground of juror misconduct. After the jury began deliberating, it was revealed that a juror had been seen speaking to the wife of a prosecution witness after the selection of the jury but before taking of any testimony. After the jury returned a verdict of guilty the judge and defense counsel questioned the juror. The juror had not discussed the case with the witness’s spouse and did not realize until her husband testified that he was in fact a witness in the case.
The trial judge did not abuse his discretion in concluding that Davis failed to show that the juror’s conduct affirmatively prejudiced his right to a trial before an impartial and fair jury. See People v Schram, 378 Mich 145; 142 NW2d 662 (1966). In the absence of such showing, reversal is not warranted. People v Provost, 77 Mich App 667; 259 NW2d 183 (1977), rev’d on other grounds 403 Mich 843 (1978).
We find without merit Davis’ claim that various alleged omissions in jury instructions resulted in reversible error. Contrary to his assertion, the record reveals that the jurors were in fact admonished against outside contacts prior to the first recess on the first day of trial. This was all that was required in the absence of a request or objection by defense counsel and in the absence of any showing of prejudice. People v Buero, 59 Mich App 670; 229 NW2d 880 (1975).
The trial court’s instructions on kidnapping did not inject a new legal theory, not contained in the information, against which defendant was required to defend. In language tracing that found in the kidnapping statute, the information charged that defendants:
"[F]eloniously and forcibly seized and confined or inveigled or kidnapped one Richard John Phillips, with intent to extort money or other valuable thing from Richard John Phillips, or caused Richard John Phillips to be secretly confined and imprisoned in this state against his will or caused Richard John Phillips to be held for service against his will; contrary to MSA 28.581; Section 750.349, CL 1948.” (Emphasis added.)
The statute proscribes several alternative methods of kidnapping. People v Bergevin, 406 Mich 307; 279 NW2d 528 (1979). The trial court instructed the jury on "secret confinement”. CJI 19:1:01. The court’s failure to also instruct the jury on kidnapping with intent to extort money or other valuables, CJI 19:1:03, simply limited the jury’s consideration to one alternative which was entirely consistent with the prosecution’s theory of the case.
Davis contends that reversible error occurred when the trial court failed, in the absence of a request by defense counsel, to "devise an appropriate instruction dealing with” defendants’ defense of consent. The trial court instructed the jury that it had to find defendants intentionally and forcibly confined the complainant, Phillips, "against his will”. Taken as a whole, the instructions were fair and adequately put the jury on notice that the prosecution had to prove that the complainant did not voluntarily accompany defendants. Accordingly, there was no reversible error. People v Palma, 111 Mich App 684; 315 NW2d 182 (1981).
Defendants Davis and Kocsis both claim reversible error occurred when the prosecutor failed to endorse and produce several alleged res gestae witnesses who were present in or near the bar where the complainant was prior to his leaving with defendants.
Defense counsel affirmatively waived the production of Captain James Staubor at trial. Therefore, defendants’ claim that the prosecution’s failure to call him requires reversal is without merit. See People v Geer, 22 Mich App 47; 176 NW2d 721 (1970).
Davis argues that the prosecutor should have endorsed and produced all persons present in the bar. Kocsis claims Danny McGuire, in particular, should have been called. A companion of McGuire’s, Russ Boyer, was an endorsed witness and testified at trial. McGuire and Boyer, who first reported the apparent abduction to the police shortly after it occurred, both went to the police on the night of the occurrence to give statements. Boyer gave a statement, but McGuire could not because he was too intoxicated.
Neither defendant moved for a hearing on the issue of the endorsement or production of these individuals during or following trial. Consideration of this issue is foreclosed on appeal, People v Pearson, 404 Mich 698, 722; 273 NW2d 856 (1979), unless, absent review, manifest injustice will result. People v LeFlore, 96 Mich App 557; 293 NW2d 628 (1980), lv den 409 Mich 927 (1980). We find no manifest injustice here. Nothing in the record indicates McGuire or any other person present in the club observed, or could have observed, anything of assistance to defendants’ case.
Defendant Davis further claims his convictions for felonious assault, carrying a dangerous weapon with unlawful intent and carrying a dangerous weapon in a vehicle violate the guarantee against double jeopardy.
In People v Bouknight, 106 Mich App 798, 802; 308 NW2d 703 (1981), Judge Cavanagh wrote:
"The courts of this state have employed two tests in considering whether the guarantee against double jeopardy has been violated because of "double punishment.” The first test, commonly known as the Blockburger test, concentrates on the statutory elements of each crime. If, legally, each statutory provision requires proof of a fact which the other provision does not, there is no double jeopardy. Blockburger v United States, 284 US 299; 52 S Ct 180; 76 L Ed 306 (1932), Wayne County Prosecutor v Recorder’s Court Judge, 406 Mich 374; 280 NW2d 793 (1979). The second test looks to the factual proofs involved in the particular case. People v Martin, 398 Mich 303; 247 NW2d 303 (1976), People v Stewart (On Rehearing), 400 Mich 540; 256 NW2d 31 (1977). Under the second test, if the facts developed during trial indicate that the violation of one provision is not severable from a violation of the second provision, then the former blends into the latter so as to constitute one single wrongful act. This second test has been modified by the Supreme Court to provide that if the Legislature has manifested an intent to make the two offenses separate and distinct and has provided separate penalties there is no violation of double jeopardy. Wayne County Prosecutor, supra.”
See also People v Bonner, 116 Mich App 41; 321 NW2d 835 (1982).
In other words, under the second test, "[i]f, factually, the convictions in this case are based on proof of a single act, the separate crimes consist of nothing more than a greater crime and certain of its lesser included offenses”, and the multiple convictions will not be allowed to stand. People v Jankowski, 408 Mich 79, 86; 289 NW2d 674 (1980). See also People v Wilder, 411 Mich 328; 308 NW2d 112 (1981).
Considering the charges in the information, the proofs presented at trial, and the jury instructions, we find that Davis’ convictions for carrying a dangerous weapon in an automobile occupied by him and for carrying a dangerous weapon with unlawful intent, in addition to his conviction for felonious assault, constituted "factual” double jeopardy. Under the particular facts of this case, the two possession of weapons counts were included cognate offenses of felonious assault. It was factually and logically impossible for defendant to be guilty of felonious assault without at the same time being guilty of both carrying a dangerous weapon in an automobile occupied by him and carrying a dangerous weapon with unlawful intent.
Evidence at trial showed that Phillips was physically forced by defendants into an automobile. During the drive defendant Davis started to swing at . the victim with a pair of brass knuckles, but was persuaded to stop by a codefendant. Davis then immediately produced a pistol and held it six inches from Phillips’ face.
The information charged defendant Davis with felonious assault and carrying a weapon with unlawful intent on the basis of his use of "a pistol and brass knuckles”. Violation of the concealed weapons statute was alleged on the basis of his carrying "a pistol, whether concealed or otherwise”, in a vehicle. The instructions to the jury on each of these charges reflected the same factual basis as that charged in the information.
The assault count was factually supported by Davis’ use of the brass knuckles and the pistol to threaten Phillips while they were in the automobile. These were the same proofs which necessarily supported his conviction on the charge of carrying a dangerous weapon, here a pistol, with unlawful intent. The only evidence of his unlawful intent while possessing the pistol was that he assaulted Phillips with the same weapon. These convictions being based on proof of a single occurrence, they violate the constitutional guarantee against double jeopardy.
Davis did assault Phillips with two weapons. It is theoretically arguable that, in such a case, a defendant’s assault conviction could rest upon proof of the act involving the use of the brass knuckles, while a conviction for possession of a weapon with unlawful intent could rest upon proof of a "separate” act of assault with a pistol. Cf. People v Yarbrough, 107 Mich App 332; 309 NW2d 602 (1981). In this case, however, no such distinction was made in the information, the jury instructions or the prosecutor’s theory of the case. The episode was charged and treated throughout the trial as a single assault involving use of both brass knuckles and a pistol. See People v Leverette, 112 Mich App 142, 148, fn 2; 315 NW2d 876 (1982).
The proofs supporting Davis’ conviction for carrying a dangerous weapon in a vehicle were the same as those supporting his conviction for felonious assault. The jury must necessarily have found him guilty of carrying a dangerous weapon in a vehicle in order to find he assaulted Phillips with the weapons while in the automobile.
Generally, where a defendant is convicted of both a greater and lesser offense, the remedy is to vacate the conviction of the lesser offense and affirm the conviction of the greater offense. People v Jankowski, supra, 98-99; People v Hale (On Remand), 103 Mich App 273; 303 NW2d 17 (1981); People v Grable, 95 Mich App 20; 289 NW2d 871 (1980). This rule is not, however, absolute, and the remedy has been modified to accommodate the facts of a particular case. See People v Leverette, supra, 149-153.
Application of the usual remedy in this case would produce a paradoxical result. The two possession of weapons offenses are the "lesser” offenses in the sense that they are factually included in the offense of felonious assault. The Legislature has, however, prescribed punishment of five years for these factually "lesser” offenses, and only four years for the "greater” offense of felonious assault.
Accordingly, in the interest of justice, we conclude that the appropriate remedy in this case is to vacate the convictions and attendant sentences for carrying a weapon in a vehicle and felonious assault, leaving intact Davis’ convictions and sentences imposed on Count III, carrying a firearm or dangerous weapon with unlawful intent, and Counts I and V.
In the absence of an objection by defense counsel, we find no manifest injustice resulting from the prosecutor’s various comments at trial. The statements related to the evidence and credibility of witnesses and were therefore within the bounds of permissible argument. People v Caldwell, 78 Mich App 690; 261 NW2d 1 (1977).
Davis finally challenges the legality of the search of the trunk resulting in the seizure of the pistol. He claims the search, conducted at the police station following impoundement of the automobile, exceeded the scope of a permissible inventory search. However, no motion to suppress this evidence was made, and no objection was raised to its admission at trial.
As a general rule, this Court will not review an issue raised for the first time on appeal. People v Smith, 118 Mich App 366; 325 NW2d 429 (1982). Where consideration of a claim not previously raised is necessary to a proper determination of the case, the issue will be considered. People v Harris, 95 Mich App 507, 509; 291 NW2d 97 (1980). We conclude, however, that the question of the admissibility of the evidence produced is not decisive to the outcome of the case, and therefore decline to address the issue. People v Blassingame, 59 Mich App 327; 229 NW2d 438 (1975), lv den 399 Mich 842 (1977). Although discovery of the gun was corroborative of Phillips version of the events, in light of Phillips’ testimony and the additional physical evidence and testimony admitted which also corroborated Phillips’ testimony, we conclude that admission of the pistol was not determinative of the outcome.
Defendant Kocsis’ convictions are affirmed. Defendant Davis’ convictions for carrying a weapon in a vehicle and felonious assault are vacated and his other convictions affirmed.
We observe that defendant’s reliance on People v White, 390 Mich 245; 212 NW2d 222 (1973), and Crampton v 54-A Dist Judge, 397 Mich 489; 245 NW2d 28 (1976), is misplaced. These cases hold that multiple trials are prohibited where several distinct offenses occur in one criminal "transaction”; they do not prohibit multiple convictions in one trial.
In People v Shelton, 93 Mich App 782; 286 NW2d 922 (1979), decided prior to People v Jankowski, supra, it was concluded that a conviction for both felonious assault and carrying a concealed weapon did not violate double jeopardy. That conclusion was based on a determination that each offense requires proof of a fact that the other does not. The Court applied the Blockburger test; it did not address the issue of whether the two convictions were based on a single act or occurrence and thus constituted "factual” double jeopardy. | [
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Campbell, J.
Plaintiff sued defendant for damage to a ‘ horse and buggy, relying on the statute which'provides a recovery of damages for injuries arising by reason of streets being out of repair. Judgment went for defendant.
The accident occurred while plaintiff’s son was driving through the streets of Corunna, during the day-time, and is claimed to have been the result of his horse becoming frightened by seeing a large stone standing in the highway, between the track usually traveled in the middle of it and the gutter at one side. He did not pass by it on this occasion, and it is insisted that while passing along the road in the next, block, and beyond a street-crossing, the horse saw the stone, which was beyond the other side of the crossing, and turned up the side street and upset the buggy. There was a good deal of testimony on the disputed question whether the horse was really frightened at all, and whether the mischief did not come from an entirely different cause. There was also testimony bearing upon the fitness of the driver and his management in driving, as well as upon the other questions which were supposed to bear on corporate fault.
The stone in question was a boulder of some four feet in diameter which had theretofore lain in the road-bed, just coming to the surface, but not making any difficulty in passage. It was thought best, however, to remove it from its place, and make the road-bed of the ordinary material. Accordingly the stone was dug up and moved away from the track toward the side of the road, and left standing ready for removal, held in place by placing smaller stones under it. The city highway officials were about to carry it off when a person who desired it for building purposes asked for it and was given the. privilege of taking and appropriating it. Before he removed it this accident happened. The testimony does not fix definitely the precise time during which the stone lay there after it was dug up, but varies from two or three days to four or five. There is no testimony that the roadway was out of repair, or that any of the damage claimed arose from defects in the track used by plaintiffs buggy.
The court below left the question to the jury as to the cause of the accident and the failure in duty of the corporation to remove the stone within a reasonable time, as well as the further question whether the stone in its place was calculated to frighten horses, and whether the driver was at fault himself. The jury gave a general verdict, and the grounds of it do not appear.
It is claimed by defendant, in the oufset, that the statutory remedy is confined to cases where the want of repair is the immediate cause of the injury, as where there are obstructions or defects in a roadway or bridge where the vehicle in passing over it encounters the mischief complained of. And it is also claimed that allowing things which are no' part of a highway to stand in it temporarily cannot be treated as putting out of repair, which must relate to the way itself, and not to things disconnected from it. This construction of the statute is the natural and correct one. The statute does not seem to be aimed at indirect and remote mischiefs, but to those which follow from a direct injury caused by the want of repair. A similar question has come up in Massachusetts several times as to the law relating to injuries from things which did not obstruct passage, and it was held that where the damage was consequential, not on the effect of a .want of repair, but upon fright caused to a horse which ran away and damaged the vehicle or persons he was drawing, or other analogous cases, it did not come within the rule, and the municipality was not liable. Cook v. Montague 115 Mass. 571; Bemis v. Arlington 114 Mass. 507; Cook v. Charlestown 98 Mass. 80; Kingsbury v. Dedham 13 Allen 186; Keith v. Easton 2 Allen 552.
The- road itself was not out of repair. It was in good order, and passable. If the stone had anything to do with the action of the horse and damage to the buggy, it was by frightening the animal, and not by hurting or impeding him, But if it is admitted, and the court beiow allowed the jury so to assume, that a city is liable for leaving or allowing in its streets that which is dangerous, by reason of its tendency to frighten passing teams, the question arises how far this record presents such a case. It will not do to apply any farfetched and unreasonable rule in such cases. It was held in the case of Macomber v. Nichols 34 Mich. 212, that a steam-•engine which, according to every-day experience, is always a cause of terror to horses unused to meeting it in a highway, was nevertheless not in law or in fact an unlawful article to propel or draw there. And a similar rule was applied in Gilbert v. Flint & P. M. Ry. Co. 51 Mich. 488, to box cars. It is customary in all towns to allow ditches to be dug, and building materials of all kinds and colors to be piled up and kept for considerable periods in the body of the street. In many, if not in most places, the right to do this can only be had by license from the corporation, and it cannot be claimed that such a license can be granted to do a wrong, or create a nuisance. Such stones as that described are often used for building purposes, and left in the street like other building materials and sometimes broken up for use or sawed for use. It does not seem reasonable to hold that such things can be allowed to await the convenience of a person who wishes to use them near by, and yet not to await removal somewhere else. If this stone had been hauled to the place it occupied, in order to be used for building purposes, and left there for a considerable time, no one would think of regarding it as an actionable grievance. The use of streets for such purposes, is too common-to justify the owners of horses to assume it will not be allowed, and they should be prepared to guard against their animals’ freaks and fears of such ordinary appearances.
The stone, as is not disputed, was lawfully put there in the first place, in the course of street repairs. If it was the duty ■of the city to see that it was not left there indefinitely, it was equally its right to sell or give it away, and having done so, it could take no steps to interfere unless at the worst the purchaser or donee delayed so long as to make it unreasona ble to wait longer for him. It could not be responsible for any delay which was not unreasonable.
As this case went to the jury and as it was argued here the plaintiff cannot make out error unless it was illegal absolutely to leave this stone where it was left any longer than was necessary to remove it. The court was called on to say that it was a nuisance in itself. This was refused, but it was-left to the jury to determine whether it was or not, and also-to determine whether it was allowed to remain an unreasonable time. It is difficult to see how the court could have-gone further without imposing duties and liabilities on municipalities, which would be ruinous. These are the only questions which it is important to consider.
The judgment should be affirmed.
The other Justices concurred. | [
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Champlin, J.
The bill in this case is filed to remove a . cloud upon complainant’s title. Clarissa Hill is the widow, and the other complainants are children, of Oliver C. Hill, who died on the 13th day of February, A. D. 1883. The defendant is a son of the deceased. The bill of complaint states that Oliver O. Hill was, at the time of his death, the owner in fee of the southeast quarter of the northeast quarter of section 19, in township 4 south, range 9 west, and was in the actual possession thereof at the time of his death, and that he was also the owner in fee of the northeast quarter of the southeast quarter of section 4, in township 21 north, range 10 west, which is improved land, not in the possession of said Robert F. Hill or any other person; that they are in the actual possession of the first-described parcel, and claim to be the legal and equitable owners of both parcels, as heirs at law of said Oliver C. Hill, deceased; that defendant, Robert F. Hill, is insolvent, and was indebted to said Oliver C. Hill at the time of his death in the sum of more than $5000, for which he had given his promissory notes to said Oliver C. Hill, dated April 4, 1882.
We quote the statements contained in the tenth, eleventh, twelfth, thirteenth, fourteenth, fifteenth, twenty-first and twenty-second paragraphs of the bill, entire, as follows :
Tenth. And your oratresses further show that the said Robert F. Hill has in his possession a certain pretended deed, bearing date the said 4th day of April, A. D. 1882, and purporting to be executed by the said Oliver C. Hill, deceased, and grantor to the said Robert F. Hill as grantee, and purporting to convey from the said Oliver O. Hill to the said Robert F. Hill both of the aforesaid pieces or parcels of land, and the said Robert F. Hill sets up a claim that the said paper writing is the deed of the said Oliver C. Hill, and pretends that on the said 4th day of April, in the year 1882, the said Oliver O. Hill, deceased, sold both of the said pieces or pareéis of land to him, the said Robert F. Hill, for the consideration of about five thousand dollars, and that thereupon the said Oliver O. Hill made and executed the said pretended deed and delivered the same to him, the said Robert F. Iiill, and thereby conveyed to him, the said Robert F. Hill, both the pieces or parcels of land aforesaid, and by virtue thereof the said Robert F. Hill now claims and pretends to own both of the pieces or parcels of land aforesaid.
Eleventh. Whereas, your oratresses expressly charge that the said claims and pretenses of the said Robert F. Hill are false; that the said pretended deed is not the deed of the said Oliver C. Hill, deceased; that the same was never made nor delivered by him ; that the said Oliver O. iiill, deceased, never sold nor conveyed the said pieces or parcels of land, or either of them, to the said Robert F. Hill; and that the said pretended deed is false, fraudulent, and invalid, and a cloud upon the said title of your oratresses to the said pieces or parcels of land, and a fraud upon their rights thereto as the homestead as aforesaid of your oratrix, Clarissa Hill.
Twelfth. And your oratresses expressly show and chax-ge, upon information and belief, that on the said 4th day of April the said Robert F. Hill was, and for a long time prior thereto had been, utterly insolvent, and not possessed of property sufficient to pay his debts to the said Oliver C. Hill, deceased, as he, the said Oliver C. Hill, deceased, then well knew ;and also that the said Robert F. Hill was then wholly unable to buy or pay for the said pieces or parcels of land, and the said Oliver O. Hill then already held promissory notes made by the said Robert F. Iiill, as aforesaid, for sums aggregating many thousands of dollars; and also that the said Oliver O. Hill continued, until the time of his death as aforesaid, in the actual possession and occupation of the piece or parcel of land first above described, claiming to own the same, and using and dealing with the same as owner; that the said Robert F. Hill never, until after the death of the said Oliver O. Hill, set up any claim to the said pieces or parcels of land, or recorded the said pretended deed, but on the contrary thereof, in various ways and at different times after the said 4rth day of April, admitted and acknowledged the title of the said Oliver O. Hill to the said pieces or parcels of land ; and although in great financial embarrassment, in great need of money, and making great efforts to raise money, the said Robert F. Hill never, to the knowledge or belief of your oratresses, offered or attempted to dispose of or incumber the said pieces or-parcels of land or either of them, although, as your oratresses are informed and believe, frequently attempting without success to'borrow money, because he, the said Robert F. Hill, had no security to give therefor.
Thirteenth. And your oratresses further show that the said Robert F. Hill sometimes pretends that he paid for the said pieces or parcels of land by making and delivering to the said Oliver O. Hill the promissory note mentioned in the above paragraph of this bill of complaint marked (5), whereas in truth and in fact, the said promissory notes were given by the said Robert F. Hill to the said Oliver C. Hill, deceased, for debts which the said Robert F. Hill was then, and for a long time previous thereto had been, owing to the said Oliver C. Hill, deceased.
Fourteenth. Your oratresses further show that after the death of the said Oliver C. Hill, deceased, the said Robert F. Hill at first falsely pretended that the said pretended deed was a conveyance to him, the said Robert F. Hill, of all the real and personal property of which the said Oliver O. Hill, deceased, died possessed, and tried to induce your oratresses to settle with him, the said Robert F. Hill, upon that basis.
Fifteenth. And your oratresses Elizabeth Low, Sarah M. Leavins and Frances Hill, upon their own knowledge, and your oratresses Julia A. Foster apd Clarissa Hill, upon information and belief, show that on or about the 20th day of February last the said Robert F. Hill admitted to your oratresses Elizabeth Low, Sarah M. Leavins and Frances Hill that the said pretended deed had been made in trust for your oratresses and to avoid partition proceedings.
Twenty-first. Your oratresses therefore pray that the said pretended deed may, by the decree of this honorable court, be adjudged and decreed ,to be set aside, annulled and held for naught, and that said Robert F. Hill may be decreed as aforesaid to deliver the said deed up to be canceled as a cloud upon the title of your oratresses to the said pieces or parcels of laud, and that the said Robert F. Hill may, by the decree of this honorable court, be required and compelled to execute and deliver to your oratresses such deed or deeds of conveyance or other instruments as may be necessary to free, clear and remove from the title of your oratresses to the said pieces or parcels of land the cloud caused and produced by the said pretended deed.
Twenty-second. And that the said Robert F. Hill, his counselors, attorneys, solicitors, trustees, agents, and servants, and each and every one of them, may be enjoined and restrained from selling, assigning, transferring, incumbering, or in any manner disposing of or intermeddling with the said described pieces or parcels of land, or either of them, or the title thereto, or the quiet and peaceable possession thereof of your oratresses, or either of them, or of any person holding by, through or under them, or either of them, and from commencing or prosecuting any suit or proceeding at law to obtain the possession of the said pieces or parcels of land, or either of them, or any part thereof; and from causing or permitting the said pretended deed to be recorded in the office of the register of deeds, either for the said county of Kalamazoo or for the said county of "Wexford. And that your oratresses may have such further relief or may have such other relief in the premises as the nature of their case may require, and as shall be agreeable to equity and good conscience.”
The answer of defendant, which was without oath, was as follows:
“ This defendant, reserving to himself all right of exceptions to the said bill of complaint, for answer thereto says that he denies that the said Oliver O. Hill, deceased, occupied the south half of the northeast quarter, and the northwest quarter of the southeast quarter of section nineteen, in town four south, of range nine west, as a homestead, or that the said Clarissa Hill had any homestead right therein at the time of his death, or that the said complainants, or any or either of them, have any right, title or interest in or to said premises, but on the contrary, that this defendant has the full legal and equitable title thereto. And the said defendant, further answering, says that he denies that he is indebted to said estate of Oliver C. Hill, deceased, but that on the contrary, said estate is indebted to this defendant, and that defendant was not, on the 4th day of April, 1882, indebted to the said Oliver C. Hill to the amount of five thousand dollars, but admits that he was indebted to the said Oliver O. Hill, on the 4th day of April, 1882, in the sum of four thousand three hundred and fifty dollars, being the consideration for certain real estate conveyed to defendant by said Oliver O. Hill, which notes were secured by a real estate mortgage upon the property so conveyed as aforesaid, and were in the case of the death of said deceased to be distributed by defendant as directed by said deceased as follows; One two-thousand-dollar note to be delivered to Clarissa Hill, the mother of defendant and widow of deceased, and to Miss Frances Hill, the youngest sister of defendant, to be their joint property; one one-thousand-dollar note to be delivered to and be the property of Mrs. Mary E. Low, who is above named as Elizabeth Low; one five-hundred-dollar note to be delivered to Mrs. Julia Foster; one five-hundred-dollar note to he delivered to Mrs. Sarah M. Leavins, and a three-hundred- and-fifty-dollar note to be delivered to and be the property of the wife of defendant; and the defendant agreed with said deceased in his life-time to deliver said notes as aforesaid, in case of his death, and to pay the same out of the proceeds of said farm; that upon the death of his father, the said Oliver O. Hill, deceased, he took possession of said notes and the mortgage accompanying the same, and offered to deliver them to the persons above named, agreeable to the undertaking of defendant with the deceased as aforesaid, but that the said complainants, acting under the advice of one Jasper C. Gates, refused to receive the same, but demanded of defendant the surrender of his deed, which was the consideration for said notes. Defendant, further answering, says that he denies that his said deed from the said Oliver C. Hill, deceased, is void, but insists that the same is a valid and legal deed, executed by the said deceased to defendant at the date aforesaid, to wit, April 4th, 1882, and for the consideration aforesaid, and the further consideration of a certain indebtedness of deceased to defendant upon an account stated, and also upon an open account then found, to be due and owing to defendant from deceased, and that it was duly delivered to defendant by said deceased at the date last aforesaid, for said consideration and no other. Defendant, further answering, denies that he was insolvent on the 4th day of April, 1882, and for a long time prior thereto, or that he was ever or now is insolvent, but that he has always had property sufficient to pay his just debts. And this defendant, further answering, says that he denies that he ever claimed that said deed conveyed to him any other property or estate than is described in the deed, or that he ever tried, to induce complainants to settle with him on that basis; but as a matter of fact alleges that the said deceased had informed defendant that this defendant was to have all the personal estate of deceased on condition that defendant settle his estate and pay all his just debts, and defendant so informed complainants. And defendant, further answering, states that at the same time of making said statement, and at the time of the execution of said deed to defendant, as aforesaid, the deceased also stated to this defendant that he should make a will in accordance with the terms aforesaid, and requested this defendant to draft his will for him, but defendant declined so to do, and that he left defendant’s office to get his will drafted in accordance with the above and foregoing terms, and defendant supposed and still believes his said father did draft and execute a will in which the terms of the disposition of his property was devised substantially as above set forth. Defendant, further answering, says that he denies stating on or about the 20th of February, 1883, to any of the complainants that said deed was in trust for them, and to avoid partition proceedings, but that defendant did state that the effect of his said deed was to avoid such proceedings, and at the same time offered to make such deed or deeds to any or all the complainants of said property as might be just and equitable upon cancellation of his said notes; and he also denies that he has evef attempted to dispose of said property since the death of his father, although he had a just and legal right so to do.”
Proofs were taken in open court under the statute. All the parties except Clarissa Hill testified in the cause. Objections were made under How. Stat. § 7545, and consequently all testimony appearingin the record which isinhibited by the statute, where objection was made by either party, is excluded in our consideration of the case. We think the criticism made by the counsel for defendant upon the want of specific allegations in the bill of complaint is fully justified. It is impossible to tell, from the statements of the bill, whether the pleader intends to charge the defendant with having perpetrated a forgery, either of the signature or in. the body of the instrument, or whether he obtained a genuine signature to a genuine instrument by reason of fraud practiced upon the grantor. The inference to be drawn from the pleading is that the deed is a forgery, inasmuch as it charges that the deed never was made or delivered by Oliver O. Hill, and that he never sold or conveyed the said pieces of land, ■or either of them, to defendant, but that the pretended deed ■isfalse, fraudulent and invalid.
The theory upon which complainant presented the. case to this Court was that Oliver C. Hill had sold to defendant the ■forty acres of land in Wexford county for $308.55, and that the deed was so written,- and after the execution thereof the •other descriptions were written in without the grantor’s knowledge or consent, and the consideration changed by inserting the words “ five thousand,” preceding the words three hundred.” We have examined the original deed, and there is no indication whatever that there has been an .insertion since its execution, Cither in the description of land •or in the consideration, and there is no appearance upon the face of the instrument to excite the least suspicion of any •alteration or addition having been made. It contains descriptions of parcels of land as follows:
“ The north-east quarter of the south-east quarter of section four (4) in township number twenty-one north, of range number ten west, containing forty acres of land, according to the United States survey, be the same more or less; also the south half of the north-east quarter, and the north-west quarter of the southeast quarter, in section nineteen (19), township four (4) south of range nine (9) west, county of Kalamazoo aforesaid, and containing one hundred and twenty (120) acres of land, according to the U. S. survey, be the same more or less.”
The last description, containing forty acres joining that claimed by complainants, was land which complainants inherited, but for this deed, yet no claim is made and no charge that the deed is void as to that parcel. Complainants introduced record evidence to show that Oliver O. Hill purchased this forty from Orrin N. Griddings, June 4, 1867, for $120, and also conveyances of this parcel of land from the Auditor General to Mr. Hill, and he is not shown to have conveyed the same away except by the deed in question. The theory advanced by the complainants as to the manner of forgery, antagonizes their statement in their bill that Oliver O. Hill never conveyed either of the parcels described, their theory now being that one of the parcels is the only one that was conveyed by the deed, and that it was executed for that purpose. But the evidence is conclusive, and indeed not contradicted, that the signature of Oliver O. Hill is the genuine signature of the deceased. The deed is found in the possession of the grantee and is produced by him. This is evidence of delivery. That notes were made bearing date the same day as the deed, and were delivered to the deceased, is not disputed. The only dispute on that subject is as to the number and amount of the notes, and the consideration thereof.
The complainants allege in their bill that notes bearing date that day were made and delivered to deceased in his lifetime to the amount of more than $5000, and that they were given for indebtedness owing by defendant to Oliver C. Hill for a long time prior to the date of the deed. Two of the complainants testify to seeing in their father’s life-time, and a very short period before his death, among his private papers, notes signed by defendant, aggregating in amount something over $5000. The defendant claims that his father held notes made by him to the amount only of $4:34:0, and that they were secured by a mortgage upon the same land mentioned in the deed. The proofs show that defendant, on the night after his father died, took from the private papers belonging to his father, and which were kept by him under lock, all the notes made by himself to his father, and also the mortgage by which they were secured and which had not been recorded, and carried them away with him. This he did privately, and without the knowledge or consent of the other heirs.
It is proper here to note briefly the habits of the deceased, and his relations with his family. Oliver O. Hill was a man considerably advanced in years. Bor several years before his death he had taken up his abode upon this farm in"Wakeshma, mis family remaining behind him at Kalamazoo. He lived much of the time alone, sometimes being visited by his wife, sometimes by different members of his family, who stayed with him a small portion of the time. He had conveyed to his wife a house and lot in the village of Kalamazoo, where she resided with the unmarried daughter, Frances. He often visited his wife and family in Kalamazoo, staying with them overnight and longer, if he chose, and the testimony leaves it somewhat doubtful at which place he claimed a residence; the proof being that he invariably voted at Kalamazoo, while living mostly at Wakeshma. The defendant Robert, his only son, also resided at Kalamazoo, and his relations with his father appear to have been of the most intimate and fraternal character. They had numerous financial transactions with each •other, which had extended over a considerable period of •time.
There is nothing in the testimony showing that any unpleasant feelings existed between the father and any of the members of his family, or between the children. He was spoken •of as a man of somewhat peculiar notions, and as of a careful, prudent, saving disposition. He left no will, and the testimony of Dr. Chase has some tendency to prove that he •designed to make such arrangements before his death with regard to his property as would render administration unnecessary. He died on Sunday. His funeral was the next Tuesday. On Thursday the heirs went from Kalamazoo to Wakeshma to make an inventory of the effects of deceased. 'They met, prior to leaving, at the house of Mrs. Hill on Rose -street. The complainants were then present, and defendant then told them that his father had left things with him to settle ; that he had a deed of the farm and of the land up north, and the personal property, and that he had $4400 to •divide among complainants. They went to the farm that •day. The box of papers was brought out, and it was then •discovered that the notes signed by' him and other valuable papers and ten dollars in money were gone. He then admitted that he had taken them himself, and had put them in his ’safe at Kalamazoo. It is not necessary to inquire into the motives which induced defendant to take possession of the notes made by him; whether for safe-keeping, whether to-carry out any wishes expressed by his father, or as one interested as heir, is unimportant. That it was not for the purpose of suppression or confiscation is quite evident, for the-reason that before complainants had discovered that they were missing, he had informed them that he had $4400 to be-divided between them; and so far as appears by the testimony, the notes of defendant constitute nearly the whole-amount of personal property left by the deceased.
There is evidence which satisfies us that among the papers-taken by defendant was the mortgage which had been given, to secure the payment of the notes. The envelope endorsed in the handwriting of the deceased, the testimony of Mrs.. Foster given before the judge of probate, and the positive-testimony of defendant that he found the mortgage, with the notes, among the private papers of deceased after his death,, and took them all at the same time, sufficiently prove the-fact. This mortgage the defendant produces, and also the-notes secured thereby, amounting to $4340, dated April 4,. 1882j being the same date as the deed. If this is a genuine-mortgage, executed when it bears date, and delivered to-Oliver C. Hill, it disposes of this whole question as to the deed being false and fraudulent. For it is a mortgage of the same land conveyed by the deed, and no. other; and it is-absurd to suppose that Oliver C. Hill would have taken a mortgage upon his own land to secure an indebtedness owing from defendant to himself. The mortgage is executed by Robert F. Hill to Oliver O. Hill, in the presence of WhitingS. Crane and George W. Russell, and acknowledged before-Whiting S. Crane, a notary public of Kalamazoo county. The execution of this mortgage Avas duly proved. It purports to be given to secure the purchase money on the premises-covered thereby. It describes the notes produced, which correspond in number, date, and amount with those seen in-the possession of the deceased, except that two of the witnesses testified to seeing another note of $1000 not produced by defendant, and the existence of which he denies. It is- • possible that the deceased held another note of $1000 not- secured by the mortgage. If this were so, it would uot prove that the deed was a forgery, or that the other notes were not secured by the mortgage. We are entirely satisfied, from all the evidence in this case, that the deed in question is the genuine deed of Oliver O. Hill, and is in the same condition it was at the time it was delivered.
The bill alleges that the land upon which Hill resided, called the Wakeshma farm, was worth at the time of his death $6000 and upwards. This, if proved, would be of considerable significance under proper charges of fraud. The only evidence of value given at the hearing was the consideration named in the deed when Mr. Hill purchased the land from Mr. Sanford in 1862, which was $180, and the assessed value as shown upon the assessment roll of 1882, in which the value is placed at $1800. There is nothing in the record before us that shows that the amount named as purchase money in the mortgage is not the entire value of the property conveyed. It is difficult to see what motive defendant could have had for forging the deed and mortgage ; for if he forged the deed he must also have forged the mortgage. The proof fails entirely to establish the case made by the bill of complaint.
The question remains whether costs should be awarded'to the defendant. On full consideration we agree not to award them. The circumstances attending the taking possession of the papers of the deceased by the defendant were such as were well calculated to raise suspicions in the minds of the widow and the other complainants ; and we cannot feel that they were entirely unwarranted in their action in instituting suit, or that the defendant could well claim to have been blameless. He is sufficiently chargeable with the litigation which has been had, to justify the court in leaving him to bear his share of the costs.
- The decree of the circuit court is reversed, and a decree will be entered here dismissing the bill of complaint, without costs.
The other Justices concurred. | [
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Champlin, J.
In this case it appears that on July 3,1883, a judgment was rendered by a justice of the peace at Detroit against complainant and in favor of defendant for $136.25 and $3.50 costs, on account of groceries and provisions supplied to complainant and family, who was then living with a former husband named James Minihan; that this judgment was not appealed from; and that on the 16th, thirteen days later, a transcript was taken to the circuit court, and execution issued and a levy made upon two pieces of real estate in the city of Detroit.
This bill is filed to have this judgment and levy set aside, and to have a new trial in the suit, which resulted in the judgment by default. No question is made that the service, the return, judgment before the justice, and all the proceedings thereon, were strictly correct.
The- only ground of complaint alleged in her bill is “ that on the same day on which your oratrix was served with said process she was taken sick, and from that date until the present time she has been confined to her house and has been very ill, and between the day on which she was served with said process and the said 3d day of July, the date of the rendition of the said judgment, she was so ill as to be wholly unable either to attend the said suit or to employ any one to attend it for her, and wholly unable to transact any business of any kind whatever.”
The bill was demurred to generally, for want of equity, and specially for not setting out more particularly the cause of ■complaint. Both were overruled, and defendant answered denying generally the complainant’s allegation. The case was heard in opeu court on pleadings and proofs, and the bill dismissed.
The statements contained in complainant’s bill of complaint show that she had a good defense at law, which, if interposed in time, would, if found true, have defeated a recovery. In such cases no relief is afforded in equity, unless the party was prevented from availing himself of such defense by fraud or accident, without negligence of himself or his agents. Crim v. Handley 94 U. S. 652; Hendrickson v. Hinckley 17 How. 443; Miller v. Morse 23 Mich. 365.
The bill charges no fraud and no fault of defendant which ■operated to prevent a defense:
We are satisfied from the testimony that the complainant’s failure to put in a defense to the suit was the result of her own negligence, from which she is not entitled to be relieved by a court of equity. We think also that she has failed to show that the judgment is unconscionable or against right and justice.
The decree of the circuit court is affirmed with costs.
The other Justices concurred. | [
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Campbell, J.
Plaintiffs sued defendant by capias in an action on the case for deceit, and obtained judgment for damages. Error is alleged on the insufficiency of the affidavit, and on the alleged defect of proof.
As this is not a suit against sureties or on the bail-bond, it is not clear to us how a defendant who pleaded the general issue, and made no defense to the jurisdiction, can raise any point on the affidavit. But if such a question could be considered, we think no defect appeared. The affidavit shows a sale to plaintiffs of timber .which defendant falsely represented to be his own, but which in fact belonged to the Jackson, Lansing & Saginaw Railroad Company, and plaintiffs had been compelled to pay that company therefor to save the property. This is a very plain and tangible fraud.
The only error further assigned is that the facts do not support the judgment. The ground on which this assignment is based is that defendant really was owner of the timber. There is no question about the falsehood of his representations if he did not.
Defendant held a contract from the railroad company and its trustees, which contained this provision, on the language of which defendant relies for justification:
“ First, the parties of the first and second part do sell and agree to convey to the said party of the third part all the pine timber standing and being on the following described land”
—setting forth the land on which this timber was cut.
Defendant claims that this operated as a present sale. If this language stood alone, this claim would be well founded. But the whole contract must be construed together, and when so construed the effect is different.
’ It was, in a subsequent part of the same clause, provided that the timber “after being first fully paid for” was to be ■removed within three years, and all not so removed was to belong to the company.
It was further provided that no timber or logs should be cut or removed “ until said timber and logs are fully paid for, nor until consent thereto shall be indorsed hereon, as hereinafter provided; ” and further that any timber or logs removed contrary to this stipulation should remain the property of the company.
The timber in question had not been paid for, and its removal had not been consented to. Defendant therefore could not lawfully sell it, and tlie right of the company to reclaim it was in full force.
The judgment was therefore correctly rendered on the facts, and must be affirmed.
The other Justices concurred. | [
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Champlin, J.
This action was commenced before a cir■cuit court commissioner to recover the possession of certain land described in the complaint, and averring that the defendant holds the same unlawfully and against the rights of the Estey Manufacturing Company. December 3,1883, was the return-day, when the defendant appeared and pleaded not :guilty. The cause was then tried and judgment rendered in favor of the plaintiff ; and on the 8th day of December, 1883, ■the defendant appealed the suit to the circuit court for the ■county of Shiawassee. The cause was tried in the circuit, April 3, 1884, when the plaintiff again had a verdict, whereupon the defendant brings the suit to this Court by writ of ■error.
On the trial in the circuit court the plaintiff offered in •evidence a sheriff’s certificate of sale of real estate, made by virtue of an execution issued upon a judgment rendered in the circuit court for the county of Shiawassee, in favor of plaintiff and against the defendant above named and one Craig, and also the sheriff’s deed issued upon the certificate, to the introduction of which the defendant objected for the reasons that the grantee named in the instruments is a corporation and cannot hold real estate, by its articles of incorporation or under the laws of this State and because the deed liad not been recorded. The court very properly overruled the objections. Both the law and the articles of association of plaintiff authorized it to purchase and hold real estate and there is nothing in the record showing that the purchase in this case was unauthorized. After proving that defendant was in possession of the premises described in the complaint and demand thereof and defendant’s refusal to surrender, the plaintiff rested its case.
The defendant introduced in evidence the execution under which the sale .was made, which showed the recovery of a judgment in the circuit court for the county of Shiawassee in favor of the Estey'Manufacturing Company against the said Carlton K. Runnels and one Robert Craig for damages it had sustained on the occasion of the non-performance of certain promises and undertakings of the defendants, to which execution was annexed the sheriff’s return of sale. Defendant also introduced and read in evidence a duly certified copy of the articles of association of the plaintiff corporation, from which it appeared that there were but three corporators, two of whom resided in Michigan and one in Yermont. The acknowledgment of Jacob J. Estey was taken before a person styling himself a notary public, but his official character and authority to take acknowledgments was not authenticated in accordance with the requirements of our statutes. The defendant’s counsel requested the court to charge the jury as follows:
“First. The plaintiff in this suit is not entitled to recover, for the reason that it is a corporation not authorized under the law to hold and convey any real estate, except such as may be necessary to carry on their immediate business.
Second. That the certificate of sale and the deed introduced in evidence in this case are void, for the reason that the premises in question were never levied upon by the sheriff in the suit of the Estey Manufacturing Company against Carlton K. Runnels and Robert Craig, being the suit upon which said deed and certificate purport to be based.
Third. That the Estey Manufacturing Company is not organized under the laws of this State, consequently it cannot hold real estate nor transact any business therein.
Fourth. That the articles of association filed in said cause and read therein are void under the law.”
All of which were refused.
The first request was properly refused, for reasons above stated to the objections to the introduction of the deed.
The assignment of error based upon the second request was not argued by counsel in this Court, and may be considered abandoned. There was no error in refusing to give the second request.
The third and fourth requests refer to the same point, and may be considered together. Where a body assumes to be a corporation and acts under a particular name, a third party dealing with it under such assumed name is estopped to deny its corporate existence. Such is the general rule, founded upon equitable principles, and if any exceptions exist, it is only where there are no facts which make it legally unjust to forbid its denial.” Doyle v. Mizner 42 Mich. 337. In this case the defendant introduced in evidence the execution upon which sale was made. From this it appears that it was issued upon a judgment rendered for damages for the non-performance of certain promises and undertakings made by this defendant to the Estey Manufacturing Company, which shows that the defendant had had dealings with the plaintiff as a corporation in the name assumed by it. He was therefore estopped nqt only by having dealt with it as a corporation, but by the judgment in the case, to deny its corporate existence. The execution, sale and sheriffs deeds all result from the contract relation voluntarily entered into between the defendant and this corporate body, and it would be manifestly unjust and inequitable to permit the defendant to question the legal corporate existence of the plaintiff in this collateral proceeding.
For these reasons the requests were properly refused, and
The judgment is affirmed.
The other Justices concurred. | [
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Champlin, J.
This action was brought by. plaintiff to recover from defendant for services as member of the board of water commissioners of the village of Cheboygan for one year from August 1, 1882,'and also for extra services outside of duties as water commissioner. The declaration was the common counts in assumpsit. A bill of particulars was filed, showing items from May, 1880, to April, 1883, amounting to $805.15. This includes one item without date for “ services as member of the board of water commissioners of the village of Cheboygan for one year, from August 1st,, 1882, to August 1st, 1883, inclusive — $500.” The plea was the general issue, and notice that plaintiff had received fifty dollars in full accord and satisfaction of all claims and demands. Plaintiff recovered $166.25.
It was proved on the trial that plaintiff, on the 11th day of July, 1882, was appointed a member of the board of water commissioners of the village of Cheboygan by the common council of the village; , that plaintiff is an engineer and mechanic; that immediately after his appointment he entered upon the duties of his office; that the water-works were nearing completion when he was appointed. After his appointment and during the year they were completed, tested and accepted. The extra services charged for consisted of the personal labor and superintendence by the plaintiff of work at various times in connection with the constructing and completing the water-works, a portion of which required mechanical skill, and were worth in the aggregate from $116.25 to $249.50; that when any mechanical work had to be done, the plaintiff did it, or superintended the doing of it.
Plaintiff testified on cross-examination :
“I generally did the work at the request of the board of ■water commissioners or yourself (meaning defendant’s counsel, who was also a member of the board) ; sometimes I did it on my own responsibility, knowing it should be looked after. I kept no account of my services at the time, and did not intend to make any separate charge for my extra work, the items of which are set forth and contained in the bill of particulars, expecting that the council would allow me a fair compensation for my services, and the claim that I sent in to the council included the extra work as well as the official services; and after the council refused to allow my account I went to work and got it together the best way I could.”
On the 3d day of July, 1883, plaintiff sent in a bill of $10 to the council, for services for one year as a member of the board, which was allowed and paid. The amount was a mistake. Plaintiff intended to send in a bill for $100, and July 17, 1883, he sent in another bill for $90. This was referred to the committee on claims and accounts, who, in turn, referred it to the board of water commissioners, and they recommended its ■ allowance; but the council offiy allowed it at fifty dollars, which amount was paid to the plaintiff. Plaintiff testifies that there was no understanding or agreement that he should take the fifty dollars by way of compromise, and he did not accept it in full settlement of his claim against the village.
The defendant was incorporated under the General Law for the incorporation of villages. How. Stat. ch. 81. The only provision contained in this chapter relative to the compensation of village officers is in § 2825, which reads as follows: “ The president and trustees shall serve without compensation. All other officers, except where other provision is made herein, or by law regulating fees for services, shall.receive such compensation as the council shall prescribe.” The charter authorizes the village to construct and maintain water-works for supplying the village with water, and the council is authorized, by the passage of proper ordinances, to provide for the appointment of a board of water commissioners, consisting of three members, “to take the charge and management of such water-works in the manner and to the extent which shall be provided in the ordinances of the village.”
The ordinance under which the board of water commissioners was appointed, and under the provisions of which the board acted and derived its authority, and under which the water-works for Cheboygan village were constructed, is numbered 26, and entitled “ Relative to' the appointment .of commissioners of water-works and the duties of such commissioners ;” the 1st, 8th and 11th sections of which provide and read as follows:
“Sec. 1. The village council shall appoint, within ten days after the adoption of this ordinance, three suitable persons water commissioners, who shall constitute and shall be known as the board of water commissioners of the village of Cheboygan.
Sec. 8. No commissioner shall be directly or indirectly interested in any contract relating to the work or the material thereof, nor in any work or materials for the work, nor for any portion of the water-works; nor shall any commissioner be surety on-the bonds of any person contracting to do any work or furnish any materials connected in any way with said water-works.
See. 11. Said board shall certify to the amounts due upon all contracts and for all material furnished and performed in constructing or repairing said water-works; and all bills and accounts thus certified for amounts so due shall be audited by the village council in the same manner as other bills and accounts against the village.”
Special authority is conferred by the charter upon the council to appoint a board of sewer commissioners and to fix their compensation; also to organize afire department, and to fix the compensation of the officers, firemen and employees of the department-; but the charter nowhere gives the council authority to fix the. compensation of the members of the board of water commissioners, nor does the charter make any provision for compensation to the members of such board, unless it is contained in § 2825, above quoted. The counsel for the plaintiff contends “ that the Legislature did not intend the General Act ” (§ 2825) “ to apply to boards, is shown in the fact that in the appointment of all other boards a special provision is made for compensation of the members,”— as in the case of sewer commissioners and the fire department. If this is a proper case for the application of the maxim that the express mention of one thing is the exclusion of another, the position of the plaintiff’s counsel is undoubtedly correct.
Upon an examination ^of the various provisions of the charter I am of opinion that the omission to provide compensation to members of the board of water commissioners was intentional, and it follows that the members accepting such office must be deemed to have done so with knowledge of and with reference to the provisions of the charter relating to the services which they were to perform, and that such services were to be rendered gratuitously.
The court erred, therefore, in refusing to charge the jury as requested by defendant in the second request, as follows: “The council are under no obligation to make compensation to any of the officers of the corporation unless the charter expressly provides that compensation shall be made, or that the officers are entitled- to compensation.” This disposes of the claim of plaintiff to compensation as a member of the board of water commissioners.
The extra services claimed, and for which a recovery was had, appear in many instances to have been performed in the line of duty as a member of the board, and' for such the village was not liable. Those which were performed as a mechanic were proper charges against the village if not voluntarily rendered, or without authority or direction of the corporate authorities. With respect to this branch of plaintiff’s claim the circuit judge rightly instructed the jury that “one cannot be his own judge of when, where and what services are needed by a municipal corporation, and then perform such service%of his own motion and make the corporation liable for them.” The only authority for performing such extra'services which the plaintiff produced is his own testimony, above quoted, that he generally did the work at the request of the board of water commissioners, or of a member of the board, and sometimes he did it on his own responsibility, knowing it should be looked after. No single member of the board would have authority to employ engineers or mechanics, and what he did upon his own responsibility would be without authority to bind the village.
The record before us does not contain the whole of the ordinance relative to the appointment of commissioners of water-works and the duties of such commissioners, and we are unable to determine what authority is vested in it by the ordinance, or what duties are prescribed therein to be performed by such commissioners. The Qharter devolves upon the council the duty of auditing and settling the accounts of the village officers, and so far as practicable of all persons having claims against the village; and the ordinance above cited requires all bills and accounts and all amounts due upon contracts to be certified by the board, and the accounts so certified are to be audited by the council in the same manner as other bills and accounts against the village. This was not done in this case in the ordinary way. The bill of plaintiff was first presented to the council, which plaintiff testifies included the extra work as well as the official services. This was referred to the board and they reported in favor of allowing it. Although the presentation of the claim in .an aggregate sum and not in items, as should have been done, wás in this manner approved by the board, we may consider the case as if the claim had been duly certified by the board to the council. The council audited the claim at fifty dollars. Now, if plaintiff was dissatisfied with this allowance, he should not have applied foi; and received the warrant on the treasurer and obtained payment thereof. He must be held to have acquiesced in the settlement thus made.
Tf the council had allowed and paid him more than he was entitled to, they could not have recovered back the excess under a claim that they were ignorant of facts #t the time it was allowed (Advertiser & Tribune Co. v. Detroit 43 Mich. 116); and there is no good reason why plaintiff is not estopped, by accepting payment of the amount allowed, from making a further claim for the same services passed upon by the council.
The judgment of the circuit court must be
Reversed and a new trial granted.
The other Justices concurred. | [
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Sherwood, J.
This is an action of ejectment brought to recover the undivided one-third part of eighty acres of land in Livingston county. Jonathan B. Taylor owned the lands in question, and died August 17, 1871, leaving them by his will to his three children, William, Yanee and Parrish, all of whom were minors. The premises in qdestion were regularly sold and conveyed under proper license for that purpose, by the executors of Jonathan B. Taylor, to pay debts of his estate, to Caroline Taylor, who was, at the time she bid off the same at such sale, guardian for said minors. The facts in the case are all stipulatéd by the parties, from which it appears that, upon the sale of 'the property to Caroline, she paid the full cash value therefor, and that the sale was fairly and in good faith made by the executor, as was the purchase by Caroline, and that her guardianship was known to the ■executors at the time the sale was thus made. With a full knowledge of all the facts, the sale to said Caroline was regularly confirmed by the judge of probate, and in her capacity as guardian she accounted to the said executors for the purchase money of said property, they receipting the same to her accordingly.
It also further appears that on the 23d day of May, 1873, Caroline Taylor’s deed was duly recorded in the proper office of register of deeds; that on the 5th day of October she sold and conveyed the premises to the defendant Clarence Brown for $900, it being the full cash value of the property at the time, and that his deed was duly recorded on the 4th day of January, 1875 ; that on the 8th day of May, 1875, for the-sum of $500, the said Clarence Brown, by warranty deed?. conveyed the north half of said premises’to Adam Meyers, whose deed was duly recorded on the 10th day of May, 1875 and that the $500 was a full consideration for the property thus conveyed. The stipulation further shows that neither of the defendants knew, at the time of their purchase, of the-guardianship of Caroline Taylor, and supposed her to be the-owner in fee; that they examined the title to the property of record before making the purchases and relied in good faith upon what the record showed, in making the same;: and that each entered into the actual possession of the premises as soon as they completed their purchase and have made-extensive and valuable improvements thereon.
Upon the foregoing facts the question presented at the-circuit was whether or not, under the recording laws of this-State, the defendant’s title could be defeated by the statute, which reads as follows: “The executor or administrator making the sale, and the guardian of any minor heir of the deceased, shall not directly or indirectly purchase, or be interested in the purchase of any part of the real estate so sold,, and all sales made contrary to the 'provisions of this section-shall be void; but this section shall not prohibit any suck purchase by a guardian for the benefit of his ward.” How.. Stat. § 6042. The circuit judge held not; that the defendant’s title, under the facts stipulated, was fully protected, and that the plaintiff co.uld not recover. The circuit judge was-right. The plaintiff’s case is devoid of all equity, and both the letter and spirit of the law require that these defendants-should be protected in the enjoyment of the property they have, in good faith and for a full and valuable consideration, purchased and paid for. The statute (How. Stat. § 5683} does not require a person, in order to keep within its provisions in a case like this, to examine beyond the registry of deeds for outstanding claims when he makes his purchase. It is very clear from the record that both the guardian and executors acted in perfect good faith, and, so far as we can •discover, for the best interests of the wards as well as that of the estate.
• The. judgment should be not be disturbed, and must be affirmed.
The other Justices concurred. | [
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Campbell, J.
Those two cases present substantially the-same questions, and may be disposed of together. Both relators applied to the Land-office Commissioner, immediately after the Detroit & Milwaukee land sales, to buy lands which had not been already sold at auction, and paid him fifty cents per acre therefor: These purchases covered substantially the lands unsold. The Commissioner gave no land-sale-certificates, and subsequently, before the 9th of July 1884 notified the parties that they could not have their purchases recognized, and returned their money. On the 9th of July most of these lands were applied for by other parties who-paid for them, but who in like manner have had no certificates issued, and whose claims are in abeyance.
The rights of these various parties are asserted under Act. No. 197 of the Laws of 1883, approved June 9, 1883, and going into effect ninety days after the close of the session, or upon September S, 1883.
This was an act to provide for the disposition of certain lands commonly known as the Detroit'& Milwaukee Railway Lands, which were originally intended to aid in building a railwajr from Port Huron to Flint and thence to Grand Haven, and which were once offered to the Detroit &■ Milwaukee Railway, but never legally accepted, and which, having reverted to the United States, were granted absolutely* to the State by Act of Congress. Various persons had claimed interests under Augustus D. Griswold, William R.. Bowes and Amos Gould, whose titles have been held invalid.
This Act of 1883 provided in the first place for the grant tobona fide purchasers under these. parties of tracts in actual possession and improvement, of not more than 160 acres in size. These claims were to be proved up within six months after the act took effect, with power in the Commissioner to extend the time for determining contested cases for thirty days.
Alllands not disposed of at the expiration of seven months from the time when the act took effect were to be offered for sale at auction at a minimum price of $1.25 an acre. This sale was required to be had at the county seat, on three weeks” notice, and within ninety days after the time fixed for purchasers and settlers to file claims.
The questions now before us arise under the next section (section 7), which is as follows: “At the expiration of the time provided for in the preceding sections, the Commissioner of the State land-office shall fix and establish the minimum 'price of such lands, then remaining unsold, at fifty cents per acre, which price shall thereafter be and remain the minimum price of said lands.”
The relator Potter applies for lands in Montcalm, Muskegon and Ottawa counties, and relator Fairbanks for lands in Muskegon and Ottawa. The sales in Montcalm were made June 27, 1884; those in Muskegon on the 1st day of July, and those in Ottawa on the 2d day of July. Sales, were made in Barry county on the 3d of July, but these are not involved here. In Montcalm county Mr. Briggs, who was the deputy of the commissioner in charge of the sales, announced that the lands unsold would be subject to entry and sale at the Land-office the next day. In the other counties notice was given that the unsold lands would not be open to entry and sale until July 9, at eight o’clock A. M.
Potter applied on June 28, to purchase 160 acres of Montcalm lands, and deposited the minimum price of fifty cents an acre. On the 3d of July he applied in the same way for the Muskegon lands, and on the 5th for the Ottawa lands. The 4th of July was a legal holiday. On the 5th of July the Commissioner returned the money on all these applications and rejected them, on the expressed ground that the lands would not be subject to purchase-until July 9.
Belator Fairbanks also applied on the 3d and 5th days of July and his applications were rejected for the same reason.
On the 9th of July the office was attended by a crowd of applicants, and all of the lands in question were applied for by persons whose names were taken by priority in their reaching the person in charge, and their applications numbered. They were, except as to their good fortune in reach ing the desk first, practically simultaneous. All of these applications are suspended during this controversy.
The Commissioner did, not get the results of the sales and lists of unsold lands until the end of the week, and on Monday, July 1, he issued a notice, accompanied by a list of all the unsold lands, whereby it was announced they would be ■open to entry July 9, at eight o’clock a. m.
"We are not now called upon to determine how far the other applicants are entitled to their respective entries, in cases where they covered identical lands. How. Stat. § 5250 seems to contemplate that in some cases, at least where more persons than one are present at the same time as applicants for entering the same lands, they shall be set up and sold to the highest bidder. There is some reason, therefore, for doubting whether the physical ability to reach the head of a crowd seeking the same lands, is enough to give precedence. It would not be proper, in the present state of the record, to adjudicate these claims, on which no certificates have been issued. The only question before us is whether, as soon as sales were over in any county, persons could, insist on entering the unsold lands at the minimum price, without waiting for the further action of the Commissioner in receiving and entering the returns, and fixing a time for future entries.
On the argument some ingenuity was expended in figuring up the time allowed for various things to be done under the Act of 1883, so as to show when-the ninety days would expire, allowed for sale, and so as to base on this a right of entering lands thereafter. In our opinion this computation is of no importance. Under our land laws it is the general policy that no private sales shall be had until lands have been offered at public sale; and whether the Commissioner sells as soon as the law intends, or dela_ys longer than he should, cannot change the rule which postpones private entries until after public sales. But it is insisted that at any rate the right accrues at once after the public sale has failed to find bidders for tracts thus remaining unsold.
The main argument for this is that as the law itself de dares at what sum the minimum price shall be fixed, there is nothing left for the Commissioner to do.
Upon looking at this statute we do not find that it contains any provision sufficient by itself to authorize private sales at all. Merely declaring fifty cents per acre to be the future minimum price, is not a declaration that any one may buy them for that price. It merely provides that they shall not be sold for any less. Beyond this, unless helped out by other statutes, the land cannot be sold at all.
Our attention has not been called by counsel to the peculiar provisions of the several ‘land-sale laws, and we are not called upon to consider them. The Commissioner, who is familiar with them has assumed, and in all probability correctly, that there are laws in existence wdiich allow him to sell these lands at private sale. But if this, is so, it would be very singular .if he could be compelled to accept money and issue certificates before getting information what lands remain unsold, and preparing his books for the proper transaction of the business. The law is very explicit that he shall not receive money except in cases specified, and that the Treasurer shall receive it unless otherwise provided. How. Stat. § 5232. Until lands are' ready for sale, so that the purchaser is entitled to a certificate, no precedence can be gained by depositing money which the Commissioner has no right to receive officially. If the entries on June 28, July 3, and July 5 were premature, the payment of the minimum price amounted to nothing, and could not put relators in advance of others.
When the statute fixes a minimum price it presumptively means that a higher price may be in some cases demandable. An examination of the land laws will show that there are several cases in which this can be required. And inasmuch as those laws must be looked to for authority to sell these lands at all, we must assume the Legislature meant what they appear to mean.
There is in the statute concerning University and School Lands, power given to the Land-office to reserve lands from sale for sufficient reason. § 5276. The land laws in regard to several other classes of lands require them to be sold in general accordance with the school-land laws. There' is power in case of special reasons to lay out these lands in smaller parcels. § 5273. It was in pursuance of this that the State capital was located on a school section laid out in city lots. There is power to have lands in some cases appraised, especially when improved. The law of 1883, which coniines original entries of improved lands to 160 acres, may not improbably leave improved lands incapable of such claim because exceeding that amount. We do not care to'compare all the statutes to ascertain where the Commissioner gets his present authority, for whether any of them necessarily apply or not, it is quite clear to us that in requiring the Commissioner to fix a minimum price it was designed that he should do so in some formal way, and that his mind should be turned towards the subject of selling at that price. He would be derelict in his duty if he should discover that from collusion at the public sales, or from any other reason, the sale at a minimum ought not to be made, and did not use some care to prevent the mischief, if he could find any legal means of doing so. It appears from the present record that these lands are sought for, and that as soon as open to entry they were applied for.
In our opinion the Commissioner was not bound to regard any application made before he had placed these lands on sale.
In each case the writ asked for must be refused. As we cannot pass upon the rights of the intervenors, we grant no costs.
The other Justices concurred. | [
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Cooley, C. J.
The plaintiff shipped goods from New York by the New York Central & Hudson River Railroad Company, directed to himself at Hancock, Michigan, and they were carried in succession by connecting carriers until they were delivered by the Chicago & Northwestern Railway Company to defendant at Negaunee on March 12, 1883. The goods were carried by defendant over its road to L’Anse, where they arrived March 13, 1883, and were placed in defendant’s warehouse. There they remained until March 20, 1883, when they were destroyed by an accidental fire. L’Anse was the terminus of railroad transportation. From thence to Hancock goods were carried in boat during the season of navigation, and by teams for the remainder of the year, by a carrier known as the L’Anse & Houghton Overland Transportation Company, which occupied for its purposes at L’Anse the warehouse of the defendant. It seems to have been the customary mode of business for the receipts of goods to be entered at the warehouse upon books of the defendant which were open to inspection by the L’Anse & Houghton Overland Transportation Company, and which were regularly inspected by the agent of that company to ascertain what goods were to be taken by it. That company was then accustomed to take the goods for Hancock and other places on its line, load them in sleighs or other vehicles at the warehouse, and then receipt them to the defendant.
When the goods of the plaintiff were received by defendant no notice was given to him, nor was the attention of the agent of the Transportation Company called to them, or any request made that they should be removed. They simply remained in the warehouse, without action by any one in respect to them until the fire took place. The goods having been destroyed, plaintiff claimed from the defendant payment of the value, and that being declined, the present suit was instituted.
The first count of the declaration charged the defendant as common carrier with the duty to carry the goods over its line to L’Anse, and there deliver them to the L’Anse & Houghton Overland Transportation Company, and the breach of duty alleged was the failure to deliver to that company. The trial judge instructed the jury that if the goods were shipped from New York, consigned to or marked for the plaintiff at Hancock, Michigan, and came into the hands of the defendant from the Chicago & Northwestern Railway Company to be carried by defendant in the usual course of its business to L’Anse, there to be delivered to the L’Anse & Houghton Overland Transportation Company for transportation to Hancock, then the defendant received such goods as a common carrier, and remained such common carrier during the transportation of the goods to L’Anse, and after their arrival there for such reasonable time as, according to the usual course of business with the L’Anse & Houghton Transportation Company, would enable defendant to deliver the goods to that company ; and no delay in taking goods on the part of the Transportation Company, incident to the usual course of business between the two companies, would exonerate the defendant from its liability as a common carrier. It would be the duty of the defendant to deliver or offer to deliver the goods to the L’Anse & Houghton Transportation Company to be transported to Hancock; and if the goods were not so delivered or offered to be delivered, plaintiff was entitled to recover.
Hnder this instruction the plaintiff had judgment, and the defendant brings error.
The question which the instruction presents is one upon which the authorities are somewhat divided. It received careful attention at the hands of the New York Court of Appeals in McDonald v. Western Railroad Corporation 34 N. Y. 497, where several opinions were delivered. The facts upon which the decision was to be made were in all respects similar to those now before us, and the judges were unanimous in holding that the railroad company was liable. Wright, J. said: “The goods had been received by the defendants at Chatham, to be transported to Binghamton by way of the Erie and Chenango canal. Their obligation, therefore, was to carry the goods safely to the end of their road and deliver them to the next carrier on the route beyond. A carrier, in such case, does not release himself from liability by simply unloading the goods at the end of his route, and placing them in his own storehouse, without delivery or notice to, or any attempt to deliver to, the next carrier.” Hunt, Justice, in a concurring opinion, referring to Ladue v. Griffith 25 N.Y. 364 as a somewhat similar case, said: “ The defendants in the present case did no act indicating that they had renounced the liability of a carrier. They simply unloaded and deposited the goods in their warehouse. Had this deposit been made in the warehouse of a company engaged in canal transportation westwardly, it would have been an act of great significance. But here the fact is expressly found that it was the custom of the further carrier to take the goods from the defendants’ depot. The liability of the further carrier did not commence until he removed the goods from the defendants’ warehouse. The deposit, therefore, by the defendants in their own warehouse did not afford any evidence of a renunciation of the carrier’s liability.” And he added that the deposit of the goods in the warehouse was to be considered a mere accessory to the carriage by defendant, and that their liability as carrier was therefore unbroken.
This decision was approved as sound and followed as authority in Mills v. Michigan Cent. R. R. Co. 45 N. Y. 622, and it is undoubtedly the settled law of New York at this time. The same doctrine was laid down in Conkey v. Milwaukee &c. R. R. Co. 31 Wis. 619, in a forcible opinion by Chief Justice Dixon, and also in Irish v. Milwaukee &c. R. R. Co. 19 Minn. 376: s. c. 18 Am. Rep. 340, which cites with approval the case in 34 N. Y. Reports. The like doctrine also appears to be recognized in Erie Railroad Co. v. Lockwood 28 Ohio St. 358; Brintnall v. Saratoga &c. R. R. Co. 32 Vt. 665; Packard v. Taylor 35 Ark. 402; and Louisville &c. R. R. Co. v. Campbell 7 Heisk. 253. It was also affirmed in Michigan Cent. R. R Co. v. Manufacturing Co. 16 Wall. 318. This last case expresses view's not in harmony with the opinion of this Court respecting a certain clause in the charter of the Michigan Central Railroad Company as expressed in Michigan Central R. R. Co. v. Hale 6 Mich. 243, and Same Company v. Lantz 32 Mich. 502; yet, as the question now-under consideration was considered and decided by the court upon common-law principles, the conflict of views on the question of construction is of no importance in this case.
We think these cases lay down a rule which is just to the shippers of goods, and not unreasonably burdensome to carriers. The shipper delivers his goods to a carrier, who becomes insurer for their safe transportation; and if the operations of one carrier cover a part only of the line of transit, and another is to receive the goods from him, the shipper has a right to understand that the liability of an insurer is upon some one during the whole period. The duty of the one is not discharged until it has been imposed upon the succeeding carrier; and this is not done until there is delivery of the goods, or at least such a notification to the succeeding carrier as, according to the course of the business, is equivalent to a tender of delivery. There is nothing in this which is burdensome to the carriers; for this is the customary method in which the business is done; and the rule only requires that the customary method shall be pursued without unreasonable delay or negligence.
The connecting carriers in this case appear to have established a custom of their own, under which actual delivery of the goods or notice to take them was disj)ensed with, and the one was to ascertain from the boobs of the other what goods were ready for reception and further carriage. This, as between themselves, was well enough while it worked well; but it was an arrangement to which the plaintiff was not a party, and the defendant could not by means of it relieve itself of any liability which duty to the plaintiff imposed. And it was clearly its duty to the plaintiff, as we think, to relieve itself of the responsibility of the goods remaining for an unreasonable time in its warehouse; and to do this, it was necessary that the responsibility be transferred to the carrier next in line. But the mere permission to inspect its books and take whatever was ready for carriage would not do this: there should have been distinct notice which would apprise the other carrier that defendant expected the removal of the goods.
In this case there were no facts indicating a renunciation, as to these goods, of the liability of common carrier by the defendant, or that it was supposed by the agents of the defendant that that character had been exchanged for any ■other. If it ever was, it must have been at the moment the goods were received; for nothing took place afterwards to change the relation of the defendant to the goods until the fire took place. But we are not ready to assent to the doctrine that a railroad company, as to goods transported by it, ceases to be carrier the moment the goods are received at its warehouse. ¥e do not think that is the law, or that it ought to be.
The judgment should be affirmed.
Champlin and Sherwood, JJ. concurred.
Campbell, J. In this case it is admitted by the undisputed facts that the property in question had been in defendant’s warehouse for a longer time than was generally necessary for the removal of goods by the ultimate carrier, and that the failure was due to a lack of means of removal in the latter. It also appears that the property was in a. warehouse from which the last carrier always took it without any further ceremony, and that this carrier was always informed by inspection of the way-bills and knew of the goods being ready for removal. I think that under such circumstances defendant no longer remained responsible as carrier, but became subject to no more than a warehouseman’s responsibility, as soon as the last carrier had actual notice and could have removed them, and that respondent is not to be prejudiced by the lack of facilities in that carrier, who had the same means of access to and control over the goods. Such seems to me the purpose of our statute,, which does not declare or provide that the liability of warehouseman for goods await ing delivery shall not arise when the real duties of carrier have been fulfilled, but merely requires that the responsibilities attaching to a carrier shall not be lessened while that relation exists. | [
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Cooley, C. J.
This case is governed by Ter Vree v. Geerlings, ante p. 562, and the same judgment will be entered.
The other Justices concurred. | [
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Cooley, C. J.
The plaintiffs, who are, in the city of Chicago, dealers in jewelry, seek to charge the defendants, as partners, upon a promissory note for seven hundred and ninety-one -jW dollars, bearing date Nov. 9, 1882, and signed “Hollander & Kirkwood.” The note was given by the defendant Hollander, but Kirkwood denies that any partnership existed between the defendants at the date of the note.
The evidence given on the trial tends to show that on July 6, 1882, Hollander & Kirkwood entered into a written agreement for a partnership for one year from the first day of the next ensuing month, in the business of buying and selling jewelry, clocks, watches, etc., and in repairing-clocks, watches and jewelry, at Ishpeming, Michigan. Business was begun under this agreement, and continued until the latter part of October, 1882, when Kirkwood, becoming dissatisfied, locked up the goods and excluded Hollander altogether from the business. He also caused potice to be given to all persons with whom the firm had had dealings that the partnership was dissolved, and had the following inserted in the local column of the paper published at Ishpeming: “ The copartnership heretofore existing between Mr. C. H. Kirk-wood and one Hollander, as jewelers, has ceased to exist, Mr. Kirkwood having purchased the interest of the latter.” This was not signed by any one.
A few days later Hollander went to Chicago, and there, on November 9, 1882, he bought, in the name of Hollander & Kirkwood, of the plaintiffs goods in their line amounting to $791.92, and gave to the plaintiffs therefor the promissory note now in suit. The note was made payable December 15, 1882, at a bank in Ishpeming. 'When the purchase was completed Hollander took away the goods in his satchel. The plaintiffs had before had no dealings with Hollander & Kirk-wood, but they had heard there was such a firm, and were not aware of its dissolution. They claim to have made the sale in good faith, and in the belief that the firm was still in existence. On the other hand, Kirkwood claimed that Hollander and the plaintiffs had conspired together to defraud him by a pretended sale-to the firm of goods which the plaintiffs knew Hollander intended to appropriate exclusively to himself; and he was allowed to prove declarations of Hollander which, if admissible, would tend strongly to prove such a conspiracy.
The questions principally contested on the trial were— First, whether the acts of Kirkwood amounted to a dissolution of the partnership; second, whether sufficient notice of dissolution was given; and third, whether there was any evidence to go to the jury of an understanding between Hollander and the plaintiffs to defraud Kirkwood. The trial judge, in submitting the case to the jury, instructed them that Kirkwood, notwithstanding the written agreement, had a right to withdraw from the partnership at any time, leaving matters between him and Hollander to be adjusted between them amicably or in the courts; and for the purposes of this case it made no difference whether Kirkwood was right or wrong in bringing the partnership to an-end: if wrong, he might be liable to Hollander in damages for the breach of his contract. Also, that when partners are dissatisfied, or they cannot get along together, and one partner withdraws, the partnership is then at an end as to the public and parties with whom the partnership deals, and neither partner can make contracts in the future to bind the partnership, provided the retiring partner gives the proper notice. Also, that if they should find from the evidence that there was trouble between Hollander and Kirkwood prior to the sale of the .goods and the giving of the note; that Kirkwood informed Hollander, in substance, that he would have no more dealings with him as partner ; that ho took possession of all the goods and locked them up, and from that time they ceased to ■do business, — then the partnership was dissolved. Further, that whether sufficient notice had been given of the dissolution was a question for the jury. Kirkwood was not bound to publish notice in any of the Chicago papers ; he was only ■bound to give actual notice to such parties there as had dealt with the partnership. But Kirkwood was bound to use all fair means to publish as widely as possible the fact of a dis■solution. Publication in a newspaper is one of the proper means of giving notice, but it is not absolutely essential; and •on this branch of the case the question for the jury was whether Kirkwood gave such notice of the dissolution as ■under the circumstances was fair and reasonable. If he did, then he is not liable on the note: if he did not, he would •still continue liable.
The judge also submitted to the jury the question of fraud in the sale of the goods. The jury returned a verdict for the •defendants.
I. We think the judge committed no error in his instructions respecting the dissolution of the partnership. The rule •on this subject is thus stated in an early New York case. The right of a partner to dissolve, it is said, “is a right inseparably incident to every partnership. There can be no ■such thing as an indissoluble partnership. Every partner has an indefeasible right to dissolve the partnership as to all future contracts by publishing his own volition to that effect; •and after such publication the other members of the firm have no capacity to bind him by any contract. Even where partners covenant with each other that the partnership shall continue seven years, either partner may dissolve it the next day by proclaiming his determination for that purpose; the only consequence being, that he thereby subjects himself to a claim for damages for a breach of his covenant. The power given by one partner to another to make joint contracts for them both, is not only a revocable power, but a man can do no act to divest himself of the capacity to revoke it.” Skinner v. Dayton 19 Johns. 513, 538. To the same effect are Mason v. Connell 1 Whart. 381 and Slemmer’s Appeal 58 Penn. St. 155. There may be cases in which'equity would enjoin a dissolution for a time, when the circumstances were such as to make it specially injurious; but no question of equitable restraint arises here. When one partner becomes dissatisfied there is commonly no legal policy to be subserved by compelling a continuance of the relation, and the fact that a contract will be broken by the dissolution is no argument against the right to dissolve. Most contracts may be broken at pleasure, subject however to responsibility in damages. And that responsibility would exist in breaking a contract of partnership as in other cases.
II. The instruction respecting notice was also correct. No court can determine for all cases what shall be suificient notice and what shall not be: the question must necessarily be one of fact. Publication of notice of dissolution in a local newspaper is common, but it is not the only method in which notice can be given. The purpose of the notice is to make notorious in the local community the fact that a dissolution has taken place; and publication of a notice may or may not be the most effectual means for that purpose. Yery few persons in any community probably read all the advertisements published in the local papers; and matters of local importance which are advertised are quite as likely to come to them from other sources as from the published notices.
That publication in a newspaper is sufficient is not disputed by the defense, provided it appears on its face to be authoritative. Ketcham v. Clark 6 Johns. 144: s. c. 5 Am. Dec. 197; Graves v. Merry 6 Cow. 701: s. c. 16 Am. Dec. 471; National Bank v. Norton 1 Hill 578; Nott v. Douming 6 La. 680: s. c. 26 Am. Dec. 491; Watkinson v. Bank of Pennsylvania 4 Whart. 482: s. c. 34 Am. Dec. 521; Rose v. Coffield 53 Md. 18: s. o. 36 Am. Rep. 389. But in this case it is said the notice did not appear to be authoritative; it appeared as a local editorial item, and such items are often baseless, and may in any particular case have no better foun .-elation than rumor or even suspicion. They do not bear upon their face the verity which a notice signed by the party would import.
All this may be true without being conclusive. When the purpose is to put the fact of dissolution before the public, it certainly cannot be affirmed that the purpose is more likely to be accomplished by a formal advertisement than by an item in the local column of the newspaper. Many publishers, it is believed, have in their papers a local column in which items appear which seem on their face to be editorial, but which are really advertisements ; and not only paid for, but paid at extra rates, for the reason that in that column they would be more likely to be seen and read than if published as advertisements in the ordinary way. When such is the -case, a court could hardly hold as matter of law that the advertisement would be sufficient, but the notice in the local column not. To do so would be to make form more important than the purpose to be accomplished. One who derives knowledge of the fact from public notoriety is sufficiently notified: Bernard v. Torrance 5 Gill & J. 383; Halliday v. McDougall 20 Wend. 81; and probably in many .small communities a fact would sooner be made notorious by a notice in the local column of the county or village paper than in any other way. In a large city it might be otherwise. But all that can be required in any case is that such notice be given as is likely to make the fact generally known locally. Vernon v. Manhattan Co. 22 Wend. 183, 193; Lovejoy v. Spafford 93 U. S. 430. When that is done the party giving the notice has performed his duty, and any one contemplating for the first time to open dealings with the partnership must •at his peril ascertain the facts. This, in effect, wás the instruction given.
III. But we think the judge erred in receiving evidence of Hollander’s admissions or declarations tending to show fraudulent collusion between him and the plaintiffs. The ■declarations of a conspirator may be evidence against his associates after the conspiracy is made out; but to receive them as proof of the conspiracy would put every man at the mercy of rogues. We find in this case no evidence of thev conspiracy except in the statements of Hollander; and those having been erroneously received there was nothing on that, branch of the case to submit to the jury.
For this error there must be a new trial.
The other Justices concurred.' | [
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Campbell, J.
Chamberlain brought ejectment for an undivided half of certain lands which defendant is admitted to have held under a tax title valid against the other half. Chamberlain’s title was deduced from a tax deed which he claims to have covered the other half, executed to George W. Ilolt in 1855, conveyed by him to Leonard Holt in 1858,. and by Leonard Holt to Chamberlain in April, 1867. He also set up a deed made in 1882, whereby the Auditor General conveyed to him a State-tax purchase of five-twelfths of the land, for taxes of 1858.
The court below gave judgment for defendant, on finding that he had been in adverse possession for more than ten years under claim of tax titles; and that the deed of 1882 would not change his position.
It is claimed that the ten years’ statute does not apply,, because the tax title did not really cover defendant’s half. The testimony tended to show that defendant first went into possession, claiming under a tax deed of one-half, which, so far as the deed was concerned, did not define which half, but which in fact was not Holt’s; that he subsequently acquired a later tax deed for an undivided half, which he supposed and claimed to cover the other half ; that in 1867 Chamberlain went to the land and defendant denied his right, and claimed to hold all the land under his tax titles. We cannot see how a plainer case could arise of a claim of title “ under a deed made by some officer of this State, or of the United States, authorized to make deeds upon the sale of lands for taxes assessed and levied within this State.” The statute does not contemplate that the deed must be good, for then no-limitation would be necessary to protect the possession. A. claim which is consistent with the face of the deed, and which is asserted for ten years with possession, is all that the law requires. Comp. L. § 7137; How. Stat. § 8698.
There is no force in the suggestion that having entered upon half he could not afterwards claim the whole. A tenant-in-common is not barred from buying the remainder of the title.
The court below held the deed of 1882 invalid. We need not discuss that question, which would involve some elaboration of the numerous statutes bearing on State tax lands. Under the statutes in force when the land was bid in, the State had a title which might have been enforced before the controversy arose in 1867. It would be a perversion of all sound rules to hold that by waiting over twenty years and then selling an old tax bid, that period should not count in the possessor’s favor. The State is bound by the statutes of limitations, and defendant’s rights are as complete against this title as against the other.
The judgment must be affirmed.
The other Justices concurred. | [
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Cooley, O. J.
This is a case in equity. It was put at issue, by replication to defendant’s answer, August 2, 1883. On August 13, 1883, an order was entered for taking the testimony in the case in sixty days under the rules. This time expired October 12th. The testimony was not taken, and on November 13, 1883, the solicitors for the parties respectively entered into the following stipulation:
“It is hereby stipulated that the time for taking testimony in the above-entitled cause be extended sixty days, and the testimony be taken according to the regular chancery practice.”
The complainant then went on and took his testimony, and on December 29, 1883, entered an order closing proofs. He then noticed the case for hearing. Defendants moved to strike the case from the docket on the ground that it was not yet ripe for hearing, but the court denied the motion, heard the case, and ordered decree entered for complainant.
In granting this decree the court construed the stipulation of November 13th as one which merely enlarged the time for taking proofs under the rules. On that construction the parties would have under it sixty days from October 12th. But we do not think the construction the correct one. The parties extend the time sixty days; and by this we think they must be understood as speaking from that day and giving sixty days for taking testimony thereafter. Had they made use of the word enlarged instead of extended it might have conveyed to the mind a different meaning.
The decree, we think, was prematurely entered and must be set aside, and the cause remanded for further proceedings.
The other Justices concurred. | [
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Per Curiam.
Plaintiff, while a pedestrian, was struck by an unidentified hit and run driver on May 18, 1975. He was unsuccessful in an attempt to recover damages for pain and suffering from the Motor Vehicle Accident Claims Fund, MCLA 257.1101 et seq.; MSA 9.2801 et seq. Schigur v Secretary of State, 73 Mich App 239; 251 NW2d 567 (1977). The present action is against defendant, insurer of plaintiff’s Volkswagen, for recovery under uninsured motorist coverage.
The "Family Combination Automobile Policy” plaintiff purchased from defendant included, for a $2 annual premium, $20,000-$40,000 uninsured motorist coverage. Section II of the policy stated:
"In consideration of the insurance afforded under Section 1 of this endorsement [no-fault personal protection coverage] and the adjustment of applicable rates, any amount payable under the Protection Against Uninsured Motorists Coverage shall be reduced by the amount of any personal protection benefits paid or payable under this or any other automobile insurance policy because of bodily injury to an eligible injured person.”
Plaintiff sought arbitration of defendant’s liability under the uninsured motorist coverage of the policy. The arbitrator found plaintiff entitled to $20,000, specifying also that the award did not include medical payments and wage loss. The court below rejected defendant’s claim that any amounts paid as personal protection benefits under the policy could be offset against the arbitrator’s award. Somehow, the court thought that to allow the insurer to offset benefits paid for economic losses against an award for noneconomic losses would violate both due process and equal protection. Defendant appeals the judgment below.
We have recently considered, in American Fidelity Fire Insurance Co v Williams, 80 Mich App 125; 263 NW2d 311 (1977), the question presented by this appeal. We held that, as authorized by the policy, an insurer could offset against its liability under uninsured motorist coverage any personal protection benefits it paid. None of plaintiff’s arguments convince us to decide the present case differently.
As did the insured in Williams, plaintiff points to Michigan Mutual Liability Co v Karsten, 13 Mich App 46; 163 NW2d 670 (1968), and Michigan Mutual Liability Co v Mesner, 2 Mich App 350; 139 NW2d 913 (1966), as support for his argument against offset. His argument based upon the two cases is no more persuasive than the one rejected in Williams.
Plaintiff also argues that Murray v Ferris, 74 Mich App 91; 253 NW2d 365 (1977), supports the trial court’s decision. Murray found that MCLA 500.3116; MSA 24.13116 clearly required that an insured who receives personal protection benefits must repay his insurer from any tort recovery he realizes. Murray then held that this statute violated both due process and equal protection.
Provisions of an insurance policy that are not statutorily required do not implicate constitutional guarantees of due process and equal protection. Nevertheless, the similarity between the insurance provision involved here and MCLA 500.3116; MSA 24.13116 indicates that Murray may support plaintiffs position. Both the offset provision in the policy and MCLA 500.3116; MSA 24.13116 must be read with MCLA 500.3135; MSA 24.13135 in mind. MCLA 500.3135; MSA 24.13135 severely restricts the ability of a person, injured in a motor vehicle mishap, to maintain an action in tort. Only if there has been death, serious impairment of body function or permanent serious disfigurement does a person remain subject to tort liability for noneconomic loss caused by his ownership, maintenance or use of a motor vehicle. MCLA 500.3135(1); MSA 24.13135(1). Whether or not the person causing the accident is insured, the threshold for liability for noneconomic loss must be met. While an insured motorist is only liable for negligently caused economic loss that is in excess of personal protection benefits payable, MCLA 500.3135(2)(c); MSA 24.13135(2)(c), an uninsured motorist is given no immunity from tort liability for economic loss. Of course, the ability of a person injured in another jurisdiction to invoke the laws of that jurisdiction have not been affected.
When a tort recovery is made, under these restrictions upon liability, MCLA 500.3116; MSA 24.13116 gives an insurer who has paid personal protection benefits a right to reimbursement from the recovery. As Murray observed, an insurer who has paid an insured only for economic losses may, under this section, be reimbursed from the insured tort recovery for noneconomic losses.
In Pelkey v Elsea Realty & Investment Co, 394 Mich 485; 232 NW2d 154 (1975), the Supreme Court found nothing objectionable with a workmen’s compensation carrier’s ability to offset an injured employee’s recovery for pain and suffering against the carrier’s liability for medical treat ment. The employee had argued that permitting the carrier to credit a pain and suffering recovery from a third-party tortfeasor against the amount of compensation owed violated equal protection and due process. The Court quickly rejected this argument.
Although Murray attempted to distinguish Pelkey, the distinction offered was not a substantial one. In view of Pelkey, the holding in Murray is questionable. Certainly, the questionable constitutional analysis of MCLA 500.3116; MSA 24.13116 in Murray is no reason to disregard the plain language of contractual provision now before this Court. To the contrary, the policy provision is not inconsistent with the approach chosen by the Legislature for compensation of automobile accident victims.
Reversed and remanded.
The statement in Schigur v Secretary of State, supra, that no one in plaintiffs household owned a car, and therefore there was no "no-fault” coverage for plaintiffs injuries, is incorrect.
This view has not had complete acceptance. The statute has been read to offer no escape from liability for uninsured motorists. In McKendrick v Petrucci, 71 Mich App 200; 247 NW2d 349 (1976), this Court rejected an equal protection challenge premised upon the absence of a threshold for liability for noneconomic loss caused by an uninsured motorist. McKendrick pointed out that "a reasonable construction of the entire section [MCLA 500.3135; MSA 24.13135] is that in every instance liability for noneconomic loss is limited by the threshold stated in paragraph (1), and that paragraph (2) only concerns the limitation of liability applicable when there is no-fault coverage”. 71 Mich App at 204. This construction appears preferable in view of the language and structure of the section.
McKendrick is limited solely to the issue of meeting the threshold when the loss for which the uninsured motorist is liable is noneconomic. It was not intended to suggest nor do we now state that uninsured motorists cannot be held liable for economic loss. Furthermore, liability for such economic loss is not limited by any threshold question.
An insured is therefore able to recover, under his uninsured motorist coverage, both economic and noneconomic losses. The fact that the arbitrator here limited the award, at plaintiffs ingenious request, to only noneconomic loss cannot serve to negate the policy provision for offset. An automobile owner is not required to agree to a policy provision offsetting personal protection benefits against an award under uninsured motorist coverage. Without such a provision, nothing would seem to be able to prevent an insured from recovering his economic losses under both personal protection coverage and uninsured motorist coverage. Of course, nothing precludes a person from negotiating with an insurance company for uninsured motorist coverage with policy limits higher than those in plaintiffs policy. | [
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Danhof, C. J.
Defendants were convicted by a jury of breaking and entering with intent to commit larceny, contrary to MCLA 750.110; MSA 28.305. Defendants were sentenced to terms of from 6 to 15 years imprisonment and now appeal by right.
I
Defendant Bashans assigns as error the trial court’s refusal to instruct on "larceny” and "entering without breaking and without permission”, as requested by his counsel. This refusal occurred two days before the Supreme Court released opinions in People v Henry, 395 Mich 367; 236 NW2d 489 (1975), People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975), and People v Chamblis, 395 Mich 408; 236 NW2d 473 (1975). We need not address the question of retroactivity, however, since we conclude that the trial judge did not err even under the post-Ora Jones rules.
Defense counsel failed to specify with clarity upon what assertedly lesser included offenses he wanted the jury instructed, at one point referring to "larceny” and "entering without breaking and without permission” and at another point referring to "larceny from a building” and "breaking and entering without permission”. Appellate counsel has not attempted to remedy this confusion, asserting at various points in his brief that defendant was entitled to instructions on "larceny” and "larceny from a building” and on "entering without breaking and without permission” and "breaking and entering of a dwelling without permission”. In People v Herbert Smith, 396 Mich 362, 363-364; 240 NW2d 245 (1976), the Court held that under the rule of People v Henry, supra, at 374, which requires a request for instructions on lesser included offenses before reversal is warranted for failure to so instruct,
"The issue is not preserved * * * by a general request for an instruction on the 'lesser included offenses’. We have recognized that the trial judge must rely on requests from counsel in carrying out his responsibility to instruct the jury. Henry, supra. He must receive more assistance from counsel than a mere request for an instruction on lesser included offenses to make his failure to so instruct reversible error.” (Footnotes omitted.)
Herbert Smith imposes upon defense counsel a requirement of specificity; requests for instructions on lesser included offenses must be sufficiently definite and unequivocal to apprise the trial court of what instructions it is being asked to give. For the present, at least, the trial judge may continue to rely on requests from counsel in formulating his instructions. People v Henry, supra, at 374, People v Herbert Smith, supra, see generally, People v Coles, 79 Mich App 255; 261 NW2d 280 (1977). In this case, defense counsel’s shifting oral requests for instructions on lesser included offenses were insufficient to satisfy the requirements of Henry, supra, and Herbert Smith, supra. Accordingly, the trial judge did not err in refusing defense counsel’s equivocal oral requests for instructions.
II
Defendant Herbin attempted to introduce testimony by one Robert Lacy, a prisoner in the county jail who professed to know one LaVerne Averill, to the effect that Averill (who was deceased at the time of trial) had told Lacy that he had "duped” defendant Herbin into removing furniture from a house by telling Herbin that the house and the furniture belonged to him (Averill) and that he wanted the furniture moved. The trial judge refused to admit Lacy’s testimony on the ground that it was hearsay. Defendant brought a motion for new trial, claiming that under People v Ernest Edwards, 396 Mich 551; 242 NW2d 739 (1976), which was decided approximately six months after the trial of the instant case, Lacy’s testimony was admissible because Averill’s statement was a declaration against penal interest. The trial court denied the motion for new trial. We affirm, on authority of People v Alexander, 72 Mich App 91, 96; 249 NW2d 307 (1976), with the reasoning of which we agree, holding People v Ernest Edwards, supra, nonretroactive.
Ill
Defendant Bashans called as his first witness his codefendant, Harry Herbin. When counsel for defendant Bashans called Herbin, Herbin’s counsel announced to the court that he would like to make an objection out of the presence of the jury whereupon the jury was excused. The court agreed that Bashans could not compel Herbin to be a witness, since Herbin was himself on trial, but after conferring with his client, Herbin’s counsel announced that Herbin would testify after all. This announcement prompted the court to explain to defendant Herbin at some length his right not to testify. The rest of the day was consumed in making separate records of certain testimony to determine questions of admissibility.
On the next day of trial, out of the jury’s presence, the court inquired whether defendant Herbin still wished to testify as a witness for Bashans. The following colloquy ensued:
"MR. BRIGHT [counsel for defendant Herbin]: Judge, I have conferred with Mr. Herbin last night and again very briefly this morning, and it is my understanding this morning that Mr. Herbin will not take the stand when called or will not take the stand if called by [Bashans’ counsel], that he reserves the right to take the stand on his own behalf, but it is his decision not to testify if called by Mr. Frank.
"THE COURT: So, if — I’ll make it plain when we reopen again. I will ask Mr. Frank to call his first witness. If you call Mr. Herbin, of course, then the court will explain to the jury that under our system of law, a person accused of a crime — and Mr. Herbin is a co-defendant — does not have to take the stand as a witness in this case where he himself is on trial, unless he does it in his own behalf.
"And he has a right to do this and a right not to do that. And if he chooses not to, they may not in any way use this fact against him in their deliberations.
"If that’s called, I will make that explanation to the jury.
"Then when it comes time to put on his defense he, of course, has that right to testify in his own behalf or not.
"So, if we have any questions now, I would like to have them raised right now, before I call the jury back. This is defense, so, the Prosecutor really has no control over the situation.
"You have a right to call whom you wish.”
When asked by the court whether there was "anything before we call the jury back?”, Herbin’s counsel replied, "I have nothing”. Thereupon, defendant Bashans’ counsel called Herbin to testify, and the following occurred:
"THE COURT: Mr. Bright [Herbin’s counsel]?
"MR. BRIGHT: Your Honor, the election as to whether or not Mr. Herbin shall take the stand is his own election. He is a co-defendant in this matter.
"I would object to the calling of Mr. Herbin as a witness by Mr. Frank and would state for the court that Mr. Herbin elects not to take the stand at this point, but reserves the right to take the stand on his own behalf, if he desires to do so.
"THE COURT: The court would instruct the jury that this is the right of Mr. Herbin. He is a co-defendant in this case, and under our system of law, as I instructed you at the beginning, these defendants are presumed to be innocent of the charges against them; the burden of proof is on the People to prove their guilt, and no man on trial may be required to give testimony in a case. He may do so, if he wishes, or he may decline to do so.
"If he declines to do so, you, as jurors, cannot consider the fact that he does not testify in any way as inferring [sic] guilt, because the duty remains at all times in a criminal case on the People to prove the guilt of the people accused of a crime beyond a reasonable doubt.
"So, Mr. Herbin has a right not to take the stand in this case, and you may not in any way infer anything from his refusal at this time to be called as a witness.
"Call your next witness * * * .”
The trial judge was in error when he stated that "you [Bashans’ counsel] have a right to call whom you wish”. As the Court observed in People v Giacalone, 399 Mich 642, 645; 250 NW2d 492 (1977),
"A lawyer may not knowingly offer inadmissible evidence or call a witness knowing that he will claim a valid privilege not to testify. The American Bar Associ ation standards relating to the prosecution and defense functions provide that it is unprofessional conduct for a prosecutor or a lawyer representing a defendant
"— 'knowingly and for the purpose of bringing inadmissible matter to the attention of the judge or jury to offer inadmissible evidence’;
"— 'to call a witness who he knows will claim a valid privilege not to testify, for the purpose of impressing upon the jury the fact of the claim of privilege.’
That Bashans’ right to call Herbin was thus qualified is clear not only from the standards above quoted, but also from the result in Giacalone, supra. The question remains, however, whether the error committed by Bashans’ attorney when he went through the motions of calling codefendant Herbin, who he knew intended to claim his privilege not to testify, warrants reversal. For the reasons outlined below, we conclude it does not.
The most basic distinction between Giacalone and the present case is that here it was co-defense counsel, and not the prosecutor, who committed the error. Although we acknowledge that in more aggravated circumstances this distinction would not necessarily be controlling, since the standards above quoted apply equally to defense counsel and prosecutors, that it has some significance is strongly suggested by Giacalone and the authorities relied upon therein, all of which involve prosecutorial error. See Giacalone, supra, at 645 n 6, 646, 647 n 8, People v Dahrooge, 173 Mich 375; 139 NW 22 (1912), People v Trine, 164 Mich 1; 129 NW 3 (1910), Anno: Prejudicial effect of prosecution’s calling as witness, to extract claim of self-incrimination privilege, one involved in offense with which accused is charged, 86 ALR2d 1443. Here the state did not attempt to implant an unfair inference in the minds of the jurors by emphasizing the fact that a person closely associated with the defendant had chosen to exercise his privilege not to testify.
Secondly, as the extensive quotations from the proceedings reveal, the procedure employed here was outlined to Herbin’s counsel by the trial judge before the jury returned, yet defense counsel failed to interpose any objection at that time. Although we disapprove the practice of permitting counsel to call a codefendant who he already knew would raise a claim of privilege, Bashans’ counsel must share the blame for whatever potential prejudice to his client may have resulted, since he failed to raise any objection to the procedure that he knew beforehand would unfold before the jury. Counsel’s pro forma objection when his client was called was, in effect, an agreed upon signal to the trial judge to give the curative cautionary instruction that followed, rather than a timely objection to his client being called. Counsel’s failure to lodge a timely objection distinguishes this case from Giacalone, supra, at 647.
The most important distinction between this case and Giacalone, supra, at 647, however, is that here the trial judge was careful to instruct the jury concerning Herbin’s claim of privilege.
"Where error is assigned because the prosecution has called as a witness one involved with the defendant in the commission of the offense for which the defendant is on trial only to elicit from the witness a refusal to testify under claim of privilege, an appropriate curative instruction or admonition to the jury will usually eliminate the prejudice created by the incident or cure the error.” Anno, supra, at 1456.
In this case the instruction, as well as the objection, was carefully framed in terms of an absolute right to testify, or not, as Herbin chose. Herbin was not even required to take the stand and submit to questioning before he claimed his privilege and obtained the insulating instruction. Cf. Giacalone, supra, at 645 n 6, 646, People v Trine, supra, People v Dahrooge, supra, People v Savard, 73 Mich App 175; 250 NW2d 565 (1977), People v McNary, 43 Mich App 134; 203 NW2d 919 (1972), aff'd 388 Mich 799 (1972). Consequently, absolutely no questioning occurred from which any particular prejudicial inference could have arisen. Cf. United States v Maloney, 262 F2d 535, 537-538 (CA 2, 1959).
We conclude that, although the trial judge ought not to have permitted defense counsel to call a codefendant who he already knew would not testify, the lapse, when viewed in the context of the entire trial, did not amount to a planned or deliberate attempt to make capital out of a witness’s refusal to testify. See Namet v United States, 373 US 179, 189; 83 S Ct 1151, 1156; 10 L Ed 2d 278, 285 (1963). Therefore, reversal is neither required nor warranted. See People v Giacalone, supra, at 647.
IV
The contention that the arresting officers were without authority to arrest defendants because the arrest occurred outside of their jurisdiction is without merit. Although it is true that officers acting outside of their own jurisdiction and not in conjunction with a law enforcement department that has jurisdiction do so without police authority, see MCLA 764.2a; MSA 28.861(1), given probable cause, any citizen, including a police officer acting outside of his jurisdiction, may make an arrest for a felony being committed in his presence or when the person to be arrested has committed a felony, although not in the presence of the person seeking to make the arrest. MCLA 764.16; MSA 28.875. The officers’ surveillance of the house that was broken and entered, to which they followed defendants from their own jurisdiction, throughout the commission of the crime clearly gave them probable cause to arrest defendants pursuant to MCLA 764.16; MSA 28.875.
With regard to Bashans’ counsel’s attempt to impeach detective Stinson’s testimony with an allegedly inconsistent statement contained in his police report, we find no error in the trial judge’s refusal to permit it. The matter was not only collateral and the subject of opinion, but the question was entirely unsupported by detective Stinson’s report.
The convictions are affirmed.
In his objection to the judge’s charge, Bashans’ counsel referred to instructions on the lesser offenses of "larceny from a building” and "breaking and entering without permission”. On appeal, defendant Bashans refers to the offenses variously as "larceny from a building” and "entering without breaking and without permission”, and "larceny” and "breaking and entering of a dwelling without permission”.
We leave for determination in future cases the question of whether other imprecise requests satisfy the requirements of People v Henry, 395 Mich 367; 236 NW2d 489 (1975), and People v Herbert Smith, 396 Mich 362; 240 NW2d 245 (1976). It is also unnecessary to determine which of defense counsel’s two oral requests for instructions governed, since neither request was adequate.
Of course, if defense counsel is regarded as having requested instruction on the 90-day misdemeanor of entering with or without breaking without permission, MCLA 750.115; MSA 28.310, see MCLA 750.504; MSA 28.772, no instruction on that offense would be permitted at a second trial under the prospective rule of People v Chamblis, 395 Mich 408, 429; 236 NW2d 473 (1975), and therefore reversal on this point would not be warranted. See People v Rappuhn, 78 Mich App 348; 260 NW2d 90 (1977).
In light of our holding, it is unnecessary to add to the confusion generated by the Supreme Court’s cryptic order in People v Keatts, 54 Mich App 618; 221 NW2d 455 (1974), rev’d without opinion, 396 Mich 803 (1976). Since Keatts involved a conviction for attempted larceny in a building, even Judge Bashara’s dissenting opinion in Keatts suggests that instruction still would not have been required on larceny, People v Page, 73 Mich App 667, 670, 671; 252 NW2d 239 (1977), People v Robert Brown, 72 Mich App 749, 750; 250 NW2d 522 (1976), or larceny in a building, People v Huffman, 315 Mich 134; 23 NW2d 236 (1946), People v Page, supra, at 670, 676-678, People v Robert Brown, supra, at 750, and this would be so even if defense counsel had unequivocally elected to request instruction on either or both offenses.
"THE COURT: Mr. Herbin, I am going to have to put you on the record on this case here. Do you understand that you are on co-trial with Mr. Bashans in this case, and as I will be telling the jury, each of you has a right to separate consideration, and the election to testify or not to testify is within your prerogative. And if you choose not to testify, I will tell this jury they have no right to infer guilt from your silence.
"This is basic to our system and a right that we have to inform every defendant of before we take his plea.
"Now, if you elect to answer this, Mr. Frank has no right to call you as a co-defendant in this case, on the very grounds that you do not have to. You are being tried with Mr. Bashans and you do not have to and he cannot invade that right of yours no more than the Prosecution could call you under any theory of the case.
"So, if you give up this right, of course, then once you give this up, you will give it up on this record. And when you do, you have an irretraceable step.
"You have heard the opening statement of Mr. Bashans’ attorney in which he admits being at 6150 Townline Road. Now, this is a very important element in this case, which the People must prove. And if you take that stand, and once you waive this privilege, then you have waived it. You can’t later on claim that at the time we come to your case, which Mr. Bright will be making an opening statement on, after Mr. Frank’s.
"There is no way you can retrace this.”
"ABA Project on Standards for Criminal Justice, Standards Relating to the Prosecution Function and the Defense Function (Approved Draft, 1971), § 5.6(b) (the prosecution function) and § 7.5(b) (the defense function).
"Id., § 5.7(c) (the prosecution function) and § 7.6(c) (the defense function).”
See United States v Maloney, 262 F2d 535, 538 (CA 2, 1959) ("We rest our decision therefore upon the fact that the accredited ritual was not followed * * * .”), cf. People v Giacalone, 399 Mich 642, 647 n 8; 250 NW2d 492 (1977) (expressing some doubt, but not deciding, whether a curative instruction would cure the error). | [
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R. B. Burns, P. J.
Defendant appeals his jury conviction of breaking and entering an unoccupied building with intent to commit larceny, contrary to MCLA 750.110; MSA 28.305.
Defendant contends that the prosecutor impermissibly commented upon his failure to testify and improperly shifted the burden of proof through the following objected-to portion of his closing argument:
"After I get done with my closing argument Mr. Ryan is going to make his argument and then I’m going to have an opportunity for what is known as 'rebuttal’, and I want you to listen very carefully to Mr. Ryan and what he has to say. I want you to listen to what he has to say about presumption of innocence and reasonable doubt and all that, because that’s all well and good and that’s part of our legal system. But I also want you to listen to Mr. Ryan for what you may or may not hear, and I want to know or I want you to listen and find out if Mr. Ryan explains what Mr. Heath was doing at four-thirty in the morning, running away from the drug store, with the rolls of pennies, the watches, the silver dollars and everything else in his pocket. I want you to listen to Mr. Ryan and see if he explains to you what Mr. Heath was doing, lying on his stomach in a vacant building behind the Infield Bar when the police officer was looking for him. Listen and see if Mr. Ryan explains about that to you. It should be very interesting.
"I want you to listen and see if Mr. Ryan will explain to you what the screwdriver that made the marks, the pry marks, on the plate was doing in Mr. Heath’s back pocket. I want to know if Mr. Ryan is going to explain to you, for example, what the screwdriver was doing, how it ended up, in the back seat, down behind the seat of the police car.
I’d like to know if Mr. Ryan is going to explain all of this evidence to you, all of the evidence that points at only one man, Paul Heath. It’s been brought up to you that it’s possible and it’s possible that that happened. There are all kinds of possibility in every aspect of life. But we’re not here to talk about possibilities, we’re here to talk about facts, and I’ll say a little bit more about that later on.
"But the facts are, Ladies and Gentlemen, No. 1, uncontradicted, all of the testimony of the prosecution has come in, and none of it has been contradicted in any way, shape or form from the witness chair. The defense has not put on a shred of evidence to contradict anything that we’ve said.”
An argument by a prosecutor that the evidence was uncontradicted is not prejudicial comment on failure to testify, even where the defendant was the only one who could have contradicted the evidence. See, e.g., People v Earl, 299 Mich 579, 582-583; 300 NW 890, 892 (1941), People v Jacoboni, 34 Mich App 84, 86-87; 190 NW2d 720, 721-722 (1971).
An argument by a prosecutor which infers that a defendant must prove something may tend to shift the burden of proof, resulting in error. See People v Lange, 90 Mich 454, 458-459; 51 NW 534, 536 (1892), People v Dersa, 42 Mich App 522, 524-525; 202 NW2d 334, 335-336 (1972). Similarly, where a prosecutor calls upon a defendant to present a reasonable explanation for damaging evidence, the argument may tend to shift the burden of persuasion. United States v Smith, 500 F2d 293, 298 (CA 6, 1974). No valid distinction can be drawn between calling upon defendant and calling upon defendant’s counsel for an explanation, since the effect of the challenge is the same in each instance. But cf. Hollbrook v United States, 441 F2d 371, 373 (CA 6 1971). The prosecutor erred by calling upon defense counsel for an explanation of the evidence.
The error was harmless. The thrust of the prosecutor’s argument, that there was no reasonable explanation for the evidence other than that defendant was guilty, was proper. The jury was correctly instructed on burden of proof. The evidence of guilt was overwhelming: defendant was caught hiding near the building shortly after the break-in with burglar’s tools and with merchandise taken from the building. See People v Robin son, 386 Mich 551, 562-563; 194 NW2d 709, 713 (1972), People v Swan, 56 Mich App 22, 32; 223 NW2d 346, 352 (1974), People v Dersa, supra.
Defendant also claims as error a comment contained in the prosecutor’s opening statement, but, since any prejudice resulting from the comment could have been cured by instruction, failure to object precludes review. People v Hall, 396 Mich 650, 655; 242 NW2d 377, 379 (1976).
The certified record of sentence erroneously credits defendant with 84 days of time served prior to sentencing. Defendant shall be credited with 116 days. GCR 1963, 820.1(7).
Affirmed as modified. | [
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Per Curiam.
Plaintiffs commenced this action in Genesee County Circuit Court seeking damages resulting from an automobile accident alleged to have occurred between plaintiff, Emma Jean Smith, and Dennis Borton, an employee of one of the defendants, City of Flint School District.
Plaintiffs’ complaint stated that Dennis Borton, at the time of the accident, was under the employ and control of the defendants, and, accordingly, they should be held responsible for his negligent acts. This employ consisted of work within a skill and vocational program operated and controlled by defendants for which Borton received compensation.
Defendants, in a motion for summary judgment, asserted that plaintiffs’ release in favor of Dennis Borton and his parents barred the action. Plaintiffs responded that the release was not effective against defendants because they were unaware of the employee-employer relationship at the time the release was signed.
The release discharged Dennis Borton and James Borton and
"[T]heir executors, administrators, and all persons or organizations responsible for his/their acts from all claims and causes of action for all injuries, losses, and damages sustained * * * arising from an incident all or part of which occurred on or about the 17th day of April, 1972, at or near Perry Road near Vassar Road, County of Genesee, State of Michigan.”
The trial court denied defendants’ motion for summary judgment. However, it certified that its order involved a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate determination of the litigation.
Michigan courts have consistently held that a release of a servant operates to release a master liable solely under the doctrine of respondeat superior. Geib v Slater, 320 Mich 316; 31 NW2d 65 (1948), Witucke v Presque Isle Bank, 68 Mich App 599; 243 NW2d 907 (1976), lv den, 397 Mich 842 (1976), Drinkard v William J Pulte, Inc, 48 Mich App 67; 210 NW2d 137 (1973). The rationale for this rule is that the employer is not guilty of a tortious act, he did not participate in the commission of a tort, and liability arises only by operation of law. Geib v Slater, supra.
"One view expressed is that because the basis of liability on the theory of respondeat superior is that the master is liable only for the act of his servant, and not for anything he himself did, therefore, when the servant is not liable, the master for whom he was acting at the time should not be liable.” 53 Am Jur 2d, Master and Servant, § 408, p 416.
Although the question at bar has not been considered by Michigan courts, there is no reason to determine that plaintiffs’ lack of knowledge should change the outcome required by the general rule. The fact that the plaintiffs might not have understood the legal effect of the release does not abrogate it. Malone v SCM Corp, 63 Mich App 11; 233 NW2d 872 (1975). Furthermore, the rationale behind releasing an employer when the employee is released applies regardless of whether the employee-employer relationship is known.
The question remains whether this Court in equity should relieve plaintiffs from the legal effect of their release. In Chuby v General Motors Corp, 69 Mich App 563; 245 NW2d 134 (1976), this Court struck down a general release which it found was not "fairly and knowingly” made. At the time the release was executed Michigan law apparently held that no liability existed for loss of society and companionship because of the wrongful death of plaintiffs son. However, a later case, which made its holding retroactive, held that such a cause of action did lie. Smith v Detroit, 388 Mich 637; 202 NW2d 300 (1972). This Court struck down the Chuby release because "the parties had no way of knowing” that the cause of action would lie and because the release was also apparently executed under the mistaken assumption that the decedent had experienced no pain and suffering.
Chuby is distinguishable from the instant case in two respects. First, in Chuby the parties could not know that the cause of action would lie; in the instant case, the employee-employer relationship could have been discovered. Second, in Chuby the mistakes resulted in two additional compensable claims; in the instant case, there is no indication that plaintiffs are alleging new claims. Other cases dealing with reformation of releases concern plaintiffs who develop unforeseen serious injuries after signing the release. See, e.g., Denton v Utley, 350 Mich 332; 86 NW2d 537 (1957). The Denton Court set forth the "fair and knowing” test. Plaintiffs’ allegation of mistake goes to the "knowing” prong. On this issue there is a distinction between the unforeseen injury cases and the unknown defendant case. The former cannot be discovered and the latter can. Therefore, the reasonable approach would be to consider what the releasor knew or should have known at the time of the signing of the release. In this case, plaintiffs could have discovered the relationship, therefore the instant suit should be barred by the release.
The trial court’s denial of defendants’ motion for summary judgment is reversed and the case is remanded for further proceedings not inconsistent with this opinion. Costs to defendants. | [
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Per Curiam.
This is an appeal from a directed verdict and subsequent denial of a new trial. Plaintiff Nabkey, at the time of her alleged injury, was 39 years old. She was a graduate of a Grand Rapids high school, had taken a secretarial course, and had worked as a secretary for various professional people and businesses in Grand Rapids. In the late afternoon of a Sunday in June, 1961, while driving with a friend, she picked up two young hitchhikers. They wanted to go to Bounceland. Plaintiff took them there.
At Bounceland, just outside of Grand Rapids, defendant had installed 8 or 10 pit-type trampolines, enclosed by a wire fence. (See Exhibit 5.) Plaintiff, her friend, and the two boys entered the enclosure. Plaintiff saw people jumping. The boys jumped and showed plaintiff how it was done. After observing them, plaintiff tried it. She got on and off the trampoline about a half dozen times, each time jumping six or seven times. On her last turn, she saw one foot was going to land on the trampoline and the other on the ground. To avoid hitting the ground she raised her right foot and landed on the left which took all her weight. She felt sharp shooting pains in both legs. She stepped or bounced off the trampoline.
On her way home she noticed some pain in her back. Later the pain became so severe she called a doctor and was thereafter attended by a succession of physicians.
The trial judge was unable to find any negligence on the part of defendant. He also held that plaintiff had voluntarily exposed herself and so had assumed the risk.
Plaintiff contends that defendant should have provided an instructor or attendant but she fails to explain how an instructor or attendant could have prevented the incident. Plaintiff fully understood the nature of the device. She observed others using it. There was nothing an instructor could have said or done which was not readily apparent to her or which, under the circumstances, was not under her own sole control. No instructor could remove the danger of becoming unbalanced. The trampoline was in good operating condition. It did exactly what it purported to do.
Plaintiff’s situation was much the same as that of plaintiff in another trampoline case, Myers v. Sky Jump, Inc., Court of Appeals of Tennessee, Eastern Section, decided at the May, 1962, term of that court.
“Plaintiff admitted she knew the mat was unstable and that it would give as she moved about upon it and attempted to step off on the side; that she saw the springs exposed and extending from the mat to the frame on all sides of the pit and understood that the whole idea of the adventure was to try to maintain her balance under difficult circumstances and to receive the thrill of being thrown about on the mat.”
Plaintiff failed to show that the trampoline was defective, out of repair, improperly designed, im properly installed, or improperly maintained. Because plaintiff did not establish negligence of defendant which was a proximate cause of her injury, her suit must fail. Glesner v. Jones, 368 Mich 510.
Affirmed, with costs to appellee.
T. M. Kavanagh, C. J., and Dethmers, Kelly, Black, Souris, Smith, O’Hara, and Adams, JJ., concurred.
Unreported ease. Certified copy of opinion was filed with the Supreme Court.—Reporter. | [
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T. M. Kavanagh, C. J.
This is an appeal from the circuit court for the county of Kent by plaintiff from an order granting defendants’ motion for summary judgment.
The following is an agreed statement of facts stipulated to by the parties:
“On September 15, 1960, at approximately 7:35 a.m., the plaintiff Edward J. Ladner left the General Motors Corporation, Fisher Body Division Plant No. 2, at 2060 Voorheis, N.W., Grand Rapids, Michigan, where he had just completed work on the 11 p.m. to 7:30 a.m. shift. He walked out of the plant, through the gate and across Voorheis street to the plant parking lot. While walking towards his automobile in the plant parking lot, he was struck from behind by a 1959 automobile operated by the defendant Cora Vander Band and owned by the defendant John Vander Band. The defendant Cora Vander Band had just turned into the plant parking lot from Voorheis street, N. W., in order to park her car,prior to commencing work in the plant office.
“The parking lot where the accident occurred is owned by General Motors Corporation and is maintained by’ it for the use of its employees. Both the plaintiff and the defendant Cora Vander Band regularly parked in said parking lot while at work.
“The defendant Cora Vander Band was driving the automobile which was owned solely by her husband, John Vander Band, with the knowledge and consent of John Vander Band.
“The plaintiff, Edward J. Ladner, and the defendant Cora Vander Band were both employees of General Motors Corporation, Fisher Body Division, and were employed at the plant where the accident' occurred. At the time of the accident, the defendant Cora Vander Band was in the plant parking lot parking her car for the purpose of commencing work and the plaintiff, Edward J. Ladner, was in the plant parking lot going to his car for the .purpose of leaving work.
“The plaintiff, Edward J. Ladner, sustained injuries, especially to his left knee, for which he neither filed any claim nor received any benefits under the workmen’s compensation law.”
Plaintiff instituted suit on May 24, 1962, and on April 30, 1963, defendants filed a motion for summary judgment contending (1) plaintiff failed to state a claim; (2) that the rights of the plaintiff are governed by the workmen’s compensation act and that plaintiff is barred from suing defendants; (3) that plaintiff’s injuries occurred while going from work while on his employer’s premises by the alleged negligence of defendant Cora Vander Band who was going to work while on the employer’s premises, and were coemployees in the course of their employment, subject to workmen’s compensation laws of this State; (4) that there is no issue as- to any material fact and defendants are therefore entitled to a judgment of no cause for action as a matter of law; (5) that the accident occurred on private property, not on the public highways, and defendant John Vander Band as owner of the automobile operated by defendant Cora Vander Band is, therefore, entitled to a judgment of no cause for action as a matter of law.
We conclude that under the stipulated facts and pleadings in this case the trial court correctly held that plaintiff could not bring suit in tort against his coemployee, defendant Cora Vander Band. The facts and circumstances in this case would indicate both plaintiff and defendant Cora Vander Band were subject to the workmen’s compensation act.
Unlike the situation in Brooks v. Fields, 375 Mich 667, all of the facts to bring into play the presumption of section 1 of part 2 of the workmen’s compensation act, are included in the pleadings and stipulation of facts. They were both on the premises of the employer. Plaintiff had just finished work on the 11 p.m. to 7:30 a.m. shift. Defendant Cora Vander Band was on the premises for the purpose of commencing work at 8 a.m. The accident occurred at 7:35 a.m. Both were employed at the same plant and both regularly parked in and used the employees’ parking lot where the accident occurred. Clearly, both were within the statutory “reasonable time” before or after working hours.
No material fact question remained to be proven or determined. It was a question of law, and under the rule of Sergeant v. Kennedy, 352 Mich 494, reaffirmed in Ayers v. Genter, 367 Mich 675, the court properly granted motion for summary judgment as to defendant Cora Vander Band.
Plaintiff further contends that the provisions of the ownership liability statute did not prohibit recovery against defendant John Vander Band, owner of the automobile which was operated upon private property with his express consent.
Defendant owner relies upon Kruutari v. Hageny, 75 F Supp 610, a decision of the United States district court for the western district of Michigan (decided in 1948) holding that the use of the words “public highways” in the title of the Michigan motor vehicle law and in several provisions of the act clearly indicates a legislative intendment that the act should apply only to motor vehicles operated on public highways. Subsequent to the decision in Kruutari the act there discussed was repealed by the legislature and a new code was adopted — PA 1949, No 300 (CLS 1961, § 257.1 et seq. [Stat Ann 1960 Rev § 9.1801 et seq.]).
It is not necessary for us to determine whether Judge Starr was right in Kruutari. He was dealing with a former title — a title which announced no provision, as now, for overall owner liability. Nothing in the present title or in the act limits application of the ownership liability section to motor vehicles “operated upon the public highways of this State.” The title of PA 1949, No 300, provides as follows (2A CLS 1961, p 90 [8 Stat Ann 1960 Rev, p 52]):
“An act to provide for the registration, titling, sale and transfer, and regulation of vehicles operated-upon the public highways of this State; to provide for the licensing of vehicle dealers and wreckers; to provide for the examination, licensing and control of operators and chauffeurs; to provide for the giving of proof of financial responsibility and security by owners and operators of vehicles; to provide for the imposition, levy and collection of specific taxes on vehicles, and the levy and collection of sales and nse taxes, license fees and permit fees; to provide for the regulation and nse of streets and highways; to provide penalties for violation of any of the provisions of this act; to provide for civil liability of owners and operators of vehicles and service of process on nonresidents; and to repeal all other acts or parts of acts inconsistent herewith or contrary hereto.” (Emphasis supplied.)
It would appear from an analysis of the title that the intent of the legislature was not to limit the civil liability provisions to “public highways” or it would have so provided within the civil liability portion of the title.
Likewise, in analyzing the ownership liability provisions of the statute, again the legislature did not see fit to so limit the liability to “vehicles operated upon the public highways,” but provided as follows:
“Sec. 401. Nothing herein contained shall be construed to abridge the right of any person to prosecute a civil action for damages for injuries to either person or property resulting from a violation of any of the provisions of this act by the owner or operator of a motor vehicle, his agent or servant. The owner of a motor vehicle shall be liable for any injury occasioned by the negligent operation of such motor vehicle whether such negligence consists of a violation of the provisions of the statutes of the State or in the failure to observe such ordinary care in such operation as the rules of the common law requires.” (Emphasis supplied.)
Had the legislature intended to limit ownership liability to “vehicles operated upon the public highways” it would have used language to carry out such intent.
We conclude, therefore, that the ownership liability statute is not restricted to the operation of motor vehicles upon public highways.
Summary judgment for the defendant operator is affirmed, with costs in her favor. Summary judgment for the defendant owner is reversed, with costs to plaintiff.
Dethmers, Souris, Smith, O’Hara, and Adams, JJ., concurred with T. M. Kavanagh, 0. J.
See GCR 1963, 117.2.—Reporter.
CL 1948, § 411.1 et seq. (Stat Ann 1960 Rev § 17.141 et seq.).
CLS 1961, § 412.1 (Stat Ann 1960 Rev § 17.151).
CLS 1961, § 257.401 (Stat Ann 1960 Rev § 9.2101).
CLS 1961, § 257.401 (Stat Ann 1960 Rev § 9.2101). | [
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V. J. Brennan, J.
Plaintiff Angelo Iafrate Company (hereafter Iafrate) appeals from the grant of directed verdict for defendant Detroit and Northern Savings and Loan Association (hereafter Detroit and Northern), and the denial of plaintiffs motion for new trial, entered by District Judge Carl F. Ingraham, sitting as Wayne County Circuit Court Judge. Plaintiff appeals as of right pursuant to GCR 1963, 806.1.
The facts relating to this appeal bear repetition. During the times in question here, codefendant M & K Development Company (hereafter M & K) was the owner and general contractor of property located in Inkstér, Michigan, including the Cherry Plaza Condominium project. Detroit & Northern was the holder of a mortgage on the property. Philip F. Greco Title Company (hereafter Greco) was appointed escrow agent to handle the disbursement of the construction loan from defendant Detroit and Northern to M & K.
In April, 1973, plaintiff contracted with M & K for the construction of a sanitary storm and water system in the project. Plaintiff constructed the system according to the contract, but as a result of the financial condition of M & K, plaintiff was not timely paid the amounts due under the terms of the agreement. The contract required payment of 80% of the obligation when plaintiff’s work was finished and the remaining 20% when the job was accepted by the City of Inkster. On July 2, 1973, plaintiff submitted an invoice to M & K for $63,119.52, due and owing on work completed at the time. M & K paid plaintiff $50,000 on August 1, 1973, and another $12,000 approximately 3 months later. Plaintiff was still owed $1,119.52.
Shortly afterward, construction on the project was halted while engineering plans were revised. Plaintiff discontinued work for the space of approximately one year, July, 1973, to July, 1974. Plan revisions were completed May 15, 1974, but plaintiff did not return to work at the time because of dissatisfication with M & K’s failure to pay according to the contract. At that point, plaintiff would not return to work unless some form of guarantee was forthcoming that when plaintiff completed the job payment would be made. Albert Poole of M & K told plaintiff that Detroit & Northern would be contacted in order to arrange some kind of letter assuring plaintiff of payment. Plaintiff then returned to work.
Poole spoke with Detroit & Northern’s representative who agreed to write a letter to plaintiff. However, upon inspection, the first letter sent by Detroit & Northern was unacceptable to plaintiff. Consequently, a second letter issued from Detroit & Northern more specifically stating exactly what monies were owed to plaintiff and noting that, upon successful completion of plaintiff’s obligations, "disbursements will be made to the Philip F. Greco Title Company for verification of title, free and clear of any encumbrances in respect to that work completed”.
Plaintiff subsequently completed the sanitary storm and water system and obtained the approval of the City of Inkster. A final billing was submitted to M & K in the amount of $36,512.28. Neither M & K nor Detroit & Northern made any payments to plaintiff. Plaintiff then commenced suit against M & K for the amount due and against Detroit & Northern for $32,787.77 on the theory that Detroit & Northern by its letter guaranteed to plaintiff payment of this amount upon successful completion of the work.
The cause was tried before the court upon the narrow issue whether Detroit & Northern guaranteed payment to plaintiff and, if so, whether plaintiff could recover the amount specified in Detroit & Northern’s letter. The trial court granted Detroit & Northern’s motion for directed verdict after plaintiffs proofs, indicating in its findings of fact the second letter was not a guarantee the money would be paid to plaintiff but only indication the funds would be paid to Greco, which the court indicated had been done. The trial court thus concluded that Detroit & Northern was not a guarantor and did not make such a representation to plaintiff. Plaintiff made a motion for new trial on grounds that the court’s finding the money had been paid by Detroit & Northern to Greco was not substantiated by evidence. Plaintiff argued that such erroneous findings materially affected its substantial rights. The trial court held a hearing on the motion, and acknowledged that contrary evidence appeared in the record to indicate no money had actually been paid by Detroit & Northern to Greco. However, the court denied plaintiffs motion on grounds that the mistake was not a material error which prevented a proper disposition of the case.
On appeal, plaintiff raises several allegations of error. We need address only the major complaint.
The principal question we would address is whether there was a binding promise to plaintiff by Detroit & Northern to pay monies to the title company, and, if so, whether this promise constituted a guarantee contract as a matter of law.
We might observe at the outset that Detroit & Northern’s motion for directed verdict should properly have been made as a motion to dismiss. However, no prejudice resulted to plaintiff by virtue of this procedural mistake and so we will not disturb the determination below on this account. Further, we note that the question of the guarantee contract can be raised on appeal, given that the pretrial results and Detroit & Northern’s own trial brief address both the misrepresentation and breach of guarantee contract issues. We believe that "the function of the pleadings is to act as a guide rope, not as a snare or a hangman’s noose”. Olson v Dahlen, 3 Mich App 63, 72; 141 NW2d 702 (1966). See also Nicholson v Han, 12 Mich App 35, 42, 43; 162 NW2d 313 (1968), Seaboard Finance Co v Barnes, 378 Mich 627, 633; 148 NW2d 756 (1967).
Turning now to the principal consideration, we must determine whether the second letter, sent July 17, 1974, constituted a guarantee contract. For purposes of this appeal, a guarantee contract will be understood as an enforceable undertaking or promise by one person collateral to a primary or principal obligation of another which binds the person making the promise to performance of the primary obligation in the event of nonperformance; the secondary party thus becomes primarily responsible for performance. See 38 Am Jur 2d, Guaranty, § 2, pp 997-998. See also Moore v Capital National Bank of Lansing, 274 Mich 56, 61-62; 264 NW 288 (1936), In re Kelley’s Estate, 173 Mich 492, 498; 139 NW 250 (1913). The trial court found that the second letter of July 17, 1974, was not a guarantee that the money would be paid to plaintiff by Detroit & Northern but merely a promise that the funds would be paid to Greco. We find the trial court committed a reversible error of law.
We do not dispute that the trial court properly resolved matters surrounding the extrinsic facts involved in this dispute. Generally, its findings are supported by the evidence and not clearly erroneous. GRP, Ltd v United States Aviation Underwriters, Inc, 70 Mich App 671, 677-678; 247 NW2d 583 (1976), Warren v June’s Mobile Home Village & Sales, Inc, 66 Mich App 386, 389-390; 239 NW2d 380 (1976). However, the matter of whether Detroit & Northern’s second letter constituted a guarantee contract is a question involving the intention of the parties and the nature of the promise and so is a question of law. Griffin Manufacturing Co v Mitshkun, 233 Mich 640, 642; 207 NW 814 (1926).
This question of law must be tested by whether an objective manifestation of mutual assent appeared. Stark v Kent Products, Inc, 62 Mich App 546, 548; 233 NW2d 643 (1975). Did the bank’s assurances of availability of funds to pay plaintiff upon completion of the project reasonably lead plaintiff to believe that Detroit & Northern was promising to guarantee payment in case of M & K’s default on its contract? We find the second letter did constitute such a promise.
Often, the language used in commercial guarantees does not reflect the care and precision associated with other written instruments of a more formal character. Consequently, in determining the intention of the parties, greater flexibility must be employed in their interpretation. Farmers & Mechanics Bank v Kercheval, 2 Mich 505, 509 (1853). We believe in this case the circumstances and form of the second letter so strongly indicate guarantee that failure to so determine would raise an inference of bad faith on Detroit & Northern’s part. However, other than the question concerning the second letter, we do not believe the facts as established indicate bad faith by Detroit & Northern, consequently we would conclude that Detroit & Northern’s sending the second letter indicated a good faith intention to guarantee payment of the monies owing to plaintiff rather than a bad faith attempt to mislead him. We find Detroit & Northern did intend to guarantee payment and so find the trial court in error.
Detroit & Northern claims the trial court’s finding that plaintiff did not complete the construction work in reliance on the bank’s second letter precludes plaintiff from recovery. Normally, reliance is not necessary to maintain a contract action. See Chase Manhattan Bank v May, 311 F2d 117, 120 (CA 3, 1962), cert den, 372 US 930; 835 S Ct 874; 9 L Ed 2d 733 (1963). However, we realize reliance may be relevant to proving the elements of consideration and offer and acceptance in this case. See Mortgage & Contract Co v Linenberg, 260 Mich 142, 146; 244 NW 428 (1932), Highland Park v Grant-Mackenzie Co, 366 Mich 430, 437; 115 NW2d 270 (1962). In the present situation, plaintiffs promise to complete performance was legal detriment and constituted adequate consideration to° support Detroit & Northern’s promise to pay the monies to Greco pursuant to its guarantee of payment to plaintiff. Further, plaintiff offered to complete construction only in return for assurance of payment. Detroit & Northern accepted this offer by issuing the letter of July 17, 1974. Consequently, while no binding obligation existed prior to that date, Detroit & Northern’s letter constituted valid acceptance and its promise, which was enforceable after July 17, 1974. We thus find the necessary elements of a guarantee contract have been met in that plaintiff relied upon Detroit & Northern’s assurances of payment in returning to work.
In short, Detroit & Northern guaranteed in its letter of July 17, 1974, to pay plaintiff the amount specified in its letter of July 17, 1974, upon fulfillment of certain conditions. We also find, as did the trial court, that plaintiff satisfactorily fulfilled the first condition stated, i.e., completion of its work on the sanitary and storm sewer systems and acceptance of that work by the City of Inkster. However, proper evidence does not appear as to whether the second condition stated would prevent plaintiff from ultimate recovery under the guarantee contract. Specifically, the second letter provided that the property be "free and clear of any encumbrances in respect to that work completed”. (Emphasis added.) We thus remand this case in the first instance in order to determine whether any lien existed on the particular work which plaintiff did. The funds will be turned over to Greco and paid to plaintiff less any liens on plaintiff’s work. Other liens on the property not related to plaintiff’s labor should not be considered relevant to satisfaction of this condition.
Reversed and remanded for proceedings in conformity with this opinion. Costs to be paid by Detroit & Northern.
We note the following language in a recent opinion:
"Since this was a nonjury action, the motion for a directed verdict should have properly been called a motion to dismiss. Dauer v Zabel, 19 Mich App 198 [172 NW2d 701] (1969); GCR 1963, 504.2. The difference between the two motions is that on the latter motion a judge may weigh the evidence before him, unlike a motion for a directed verdict, where the trial judge’s only task is to determine if there is no issue of fact raised by plaintiff’s evidence for the jury to decide. Cullins v Magic Mortgage, Inc, 23 Mich App 251 [178 NW2d 532] (1970); Serijanian v Associated Material & Supply Co, 7 Mich App 275 [151 NW2d 345] (1967).” Smith v Department of Street Railways, City of Detroit, 46 Mich App 291, 292, n 1; 207 NW2d 924 (1973).
The second letter sent by Detroit & Northern reads as follows:
"July 17, 1974
"Mr. Angelo Iafrate 28273 Groesbeck Hwy Roseville, Michigan
"RE: Cherry Plaza Condominium Inkster, Michigan
"Dear Mr. Iafrate:
"The intent of this letter is to make you aware that in the financing of the development and further construction of Cherry Plaza Condominium; we have set aside monies in the amount of $32,787.77, according to the terms of the contract, for the completion of the sanitary and storm sewers, and water installation of the above project. The monies will not be released until such time as work is completed and a satisfactory inspection has been made. At such time disbursements will be made to the Philip F. Greco Title Company for verification of title, free and clear of any encumbrances in respect to the work completed.
"Sincerely,
"William V. Pilditch, Jr. Assistant Vice President”
Certainly, plaintiffs request was clear and reasonable, given the fact M & K had already failed to pay plaintiff for work previously done. Thus, at the time of making the request and of receiving Detroit & Northern’s letters, plaintiff was not obligated in good faith to complete construction under its contract with M & K due to M & K’s material breach. Given this fact, then, an inference might be raised from the surrounding circumstances that Detroit & Northern was aware of M & K’s breach and so itself acted in bad faith by attempting to lure plaintiff back to work knowing plaintiff was not obligated to do so. GCR 1963, 820.1(6).
We find of ho import the fact that plaintiff’s performance occurred because of defendants’ verbal assurances of a letter before the letter was sent and so before the actual execution of the guarantee promise. See State National Bank of Albuquerque v Wernicke, 185 Mich 281; 151 NW 1033 (1915). | [
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R. B. Burns, J.
Plaintiff brought this action to recover the costs of repairs it made to a dam owned by defendants. On the date set for trial, the trial court sua sponte entered summary judgment against plaintiff for failure to state a claim upon which relief could be granted, GCR 1963, 117.2(1), and plaintiff appeals. We reverse.
Plaintiff’s amended complaint alleged that defendants owned a dam which contained Lake Louise, located in Brandon Township. Plaintiff advised defendants on numerous occasions that the dam was in need of repair, and that it feared a catastrophic rupture and flood in the event of heavy rainfall. Defendants refused to repair the dam. Because of heavy spring rainfall and runoff plaintiff determined that there was an imminent threat to the health, safety and welfare of township residents, and therefore repaired the dam and made it safe. The repairs cost $19,230.96, for which plaintiff had been compensated in part by the State Disaster Fund. Plaintiff sought the balance of $15,431.96, alleging damages incurred in having to abate the nuisance, and unjust enrichment.
On review of summary judgment under GCR 1963, 117.2(1), we accept as true plaintiff’s factual allegations. Van Liere v State Highway Department, 59 Mich App 133, 137; 229 NW2d 369, 371 (1975). Unless plaintiff’s claim is so clearly unenforceable as a matter of law that no factual development can possibly justify a right of recovery, summary judgment is not appropriate. Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426, 431; 202 NW2d 577, 580 (1972).
A condition which is so threatening as to consti tute an impending danger to the public welfare is a nuisance. Kilts v Board of Supervisors, 162 Mich 646, 651; 127 NW 821, 822 (1910). It is therefore clear that plaintiff has pled abatement of a nuisance. The issue is whether plaintiff may recover against defendants for the cost thereof.
Plaintiff’s first theory is quasi contract.
"The essential elements of a quasi contractual obligation, upon which a recovery may be had, are the receipt of a benefit by a defendant from a plaintiff, which benefit it is inequitable that the defendant retain.” Moll v County of Wayne, 332 Mich 274, 278-279; 50 NW2d 881, 883 (1952), overruled on other grounds, Brown v Department of Military Affairs, 386 Mich 194, 201; 191 NW2d 347, 351 (1971), cert den 405 US 990; 92 S Ct 1256; 31 L Ed 2d 457 (1972).
More specifically,
"[a] person who has performed the duty of another by supplying things or services, although acting without the other’s knowledge or consent, is entitled to restitution from the other if (a) he acts unofficiously and with intent to charge therefor, and (b) the things or services supplied were immediately necessary to satisfy the requirements of public decency, health, or safety.” Restatement Restitution, § 115, p 481.
Plaintiff’s allegations fall squarely within the situation envisioned by the Restatement. Defendants were enriched by the repairs made to its dam, and the enrichment was unjust because it was defendants’ duty to repair the dam.
Plaintiff’s second theory is that it has a statutory right to recover for the cost of abatement of the nuisance. It is true that the township board, acting as a board of health, MCLA 327.1; MSA 14.61, is empowered to abate nuisances. MCLA 327.8; MSA 14.68. The board may order a private property owner to remove a nuisance within 24 hours at his own expense, MCLA 327.9; MSA 14.69, and upon failure to comply with the order, the board may remove the nuisance at the owner’s expense. MCLA 327.10; MSA 14.70. However, the appropriate remedy in such a situation is not a suit for damages. The expense must be assessed against the property and "shall be collected and treated in the same manner as are taxes assessed under the general laws of the state”. MCLA 327.10; MSA 14.70. Thus, plaintiff has no statutory right to damages in this action.
Since the issue as to whether the dam was in fact a nuisance could recur in the tax assessment context if plaintiff loses on the quasi contract theory, plaintiff should be granted leave to amend its amended complaint on remand, substituting a prayer for declaratory relief for its prayer for money damages under Count II of the complaint.
Reversed and remanded with instructions. Costs to plaintiff.
Because of our resolution of the other issues on appeal, we do not reach the propriety of the trial court’s grant of summary judgment. See GCR 1963, 108.4 and 117. However, we note that providing parties advance notice that the court is entertaining the possibility of summary judgment would permit the parties to research the issue, and could avoid unnecessary appeals and reversals. | [
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Souris, J.
(dissenting). This appeal is taken by leave granted from an order of the trial court directing the defendant State health commissioner to change the birth records of the health department to show February 13, 1890 as the date of birth of plaintiff, a- judge of the recorder’s court of the city of Detroit. A statutory hearing in circuit court was held upon a petition filed December 21, 1960, pursuant to CLS 1961, § 326.17 (Stat Ann 1956 Rev § 14.237), after the health commissioner had refused plaintiff’s request to make such change in his record of birth.
Plaintiff claims that until 1956 he believed he had been born on February 13, 1889, and had so listed his date of birth whenever it was required as, for example, in executing his membership form for the judges’ retirement system on January 26, 1952. In July of 1956 plaintiff was asked to furnish proof of his age to the retirement system and, in the course of trying to do so, he alleges he discovered discrepancies in public birth records relating to him. lie now avers that he was born on February 13, 1890.
In plaintiff’s attempt to establish February 13, 1890 as the date of his birth he alleges that the official State and county records of his birth are in error. There is no doubt that some of those records are wrong, since the date shown for his birth in the records of Wayne county varies from February 13, 1888 to February 18, 1889. One thing, however, is certain about the records: none of them provides even the slightest basis for assuming that plaintiff was born in 1890.
To establish his birth occurred on February 13, 1890, plaintiff relies solely upon two affidavits. One affidavit was given by Mary C. Cooney, sister of plaintiff, who was born November 24, 1885. She avers that as of the day of the burial of plaintiff’s brother Cornelius, April 14, 1889, when she was three years, four months and 21 days old, “she is positive of her own knowledge” that plaintiff was not yet alive. She further avers that “frequently during her lifetime her mother, in family discussions said, ‘She was carrying John shortly after the burial of Cornelius.’” Upon this basis Mrs. Cooney “believes * * * [plaintiff] was born on February 13, 1890.”
A second affidavit was filed by Margaret S. Hoelscher, a cousin of plaintiff, who was born February 19, 1884. She, too, alleges as her recollection that at the time of Cornelius’ death plaintiff was not alive, but, like Mrs. Cooney, she has no recollection of the actual date or year of plaintiff’s birth. She makes reference to family tradition, but without identifying its source, from which, if true, it might be inferred that plaintiff was born in 1890.
Defendant objected to the admission into evidence of both of these affidavits on the ground that they contained hearsay evidence. The representations in the affidavits as to plaintiff’s family history, based upon declarations made by others than the affiants and offered to prove the truth of the matters stated, were hearsay. There is, however, a well-established exception to the hearsay rule in the case of statements regarding family history. If the declarant who made the statement sought to be introduced as hearsay were related by blood to the person about whom the statement was made, or if the declarant were the spouse of someone so related, the statement may be admitted if the declarant be dead. Lamoreaux v. Attorney General (1891), 89 Mich 146, 160.
Testing the affidavits by this standard the hearsay contained in Mrs. Cooney’s affidavit was admissible. It consisted of statements alleged to have been made by plaintiff’s mother, who is now deceased, prior to the dispute they were introduced to resolve and without any apparent motive to deceive. Such cannot, however, be said of the affidavit of Mrs. Hoelscher. She gives no source for her hearsay evidence relative to plaintiff’s birth date. For all that appears in her affidavit the unidentified declarant might still be alive. When hearsay evidence as to family history is admitted, the declarant must be identified in order that the trier of fact have some basis for determining the credence to be given such evidence. Since Mrs. Hoelscher’s affidavit did not specify the declarant, its hearsay was inadmissible. See Rule 63(24) of the Uniform Rules of Evidence.
All of the official State and county records, the veracity of which plaintiff disputes, agree in at least this respect: that plaintiff was not born in 1890 but, rather, was born sometime before. In addition, the record of the United States census department, a copy of which plaintiff himself submitted to the State health department, shows that in the Federal census of 1900 plaintiff’s birth date was recorded as February, 1889.
For over 65 years plaintiff believed he was born in February, 1889, and it does not appear in the record that any of his numerous family ever tried to disabuse him of this belief. Moreover, plaintiff testified that in his efforts to document his birth date he checked the records of the high school and college he attended and that “they had a record of an age, but not of a date of birth.” These early records, which at least gave plaintiff’s age, were not introduced into evidence by him. It could be inferred from this omission on his part that the age as shown in the school records would not have supported his contention that he was born in 1890. See cases collected and cited at pp 285, 286 of Prudential Insurance Company of America v. Cusick (1963), 369 Mich 269. Plaintiff also testified that he had consulted the national archives for a record of his birth, but was unsuccessful since “prior to 1890 all records had been destroyed by fire.” Had plaintiff been born in 1890 as he claims, such fires would not have destroyed records of his birth.
This appeal from the above cited special statutory proceeding, not in the course of the common law, must be viewed as an appeal in the nature of certiorari. See Jackson v. People (1860), 9 Mich 111, 117, 118 (77 Am Rep 491). Certiorari is one of the writs superseded by orders of superintending control, GCR 1963, 711.3, but the scope of our review by order of superintending control in circumstances such that certiorari previously would have issued is identical with the scope of our review by that common-law writ. Thus, our review in this case is confined to questions of law.
“The office of a certiorari is not however to review questions of fact, but questions of law. And in examining into the evidence the appellate court does so not to determine whether the probabilities preponderate one way or the other but simply to determine whether the evidence is such-that it will justify the finding as a legitimate inference from the facts proved, whether that inference would or would not have been drawn by the appellate tribunal.” Jackson v. People, supra, p 120.
If the trial court’s finding that plaintiff was born on February 13, 1890 is to be ‘affirmed, evidentiary support therefor must be found in the admissible portions of the two affidavits, for all of the other pertinent admissible evidence disputes that finding tending, instead, to support a finding that plaintiff was born prior to 1890. Had either affidavit contained a positive assertion of affiant’s own knowledge that plaintiff was born on February 13, 1890 or on personal knowledge, notwithstanding affiants’ tender years at the time of occurrence of the event, that plaintiff was not born prior thereto, our appellate task would be ended because such evidence clearly would have supported the trial court’s finding.
However, nowhere in Mrs. Hoelscher’s affidavit is there any admissible evidence bearing on the issue except that plaintiff was not alive at the time of his brother’s burial and nowhere in Mrs. Cooney’s affidavit, relating to events 68 years earlier, does she, 72 years old when sworn, claim of her own knowledge that plaintiff was born in 1890. Indeed, although Mrs. Cooney asserts a distinct recollection of the death of Cornelius when she was three years, four months and 21 days old, she makes no claim of personal memory of plaintiff’s birth which she alleges, but only on information and belief, occurred on February 13, 1890 when she would have been four years, two months and 20 days old. ■ She does assert of her own knowledge that plaintiff was not born at the time of Cornelius’ bnrial, as does Mrs. Hoelscher, and that her mother frequently stated in family discussions during her lifetime that she was carrying plaintiff after the burial of Cornelius. We are not advised whether plaintiff’s mother was carrying him before and at the time of burial. Nor are we advised why, if it was common currency in family exchanges that plaintiff’s mother was carrying him after Cornelius’ death, the plaintiff nonetheless persisted in his belief without question, even upon the most solemn occasions, for example, his marriage in 1915, that he had been born on February 13, 1889, before his brother’s burial.
While Mrs. Cooney’s affidavit, directly and by permissible inference, would have supported a finding that plaintiff was not born on February 13, 1889, as would, also, Mrs. Hoelscher’s affidavit, there is no direct or inferential showing therein or otherwise that he ivas born, instead, on February 13, 1890. In order to conclude, as did the trial judge, that plaintiff was born on February 13, 1890, one must make the following inferences and assumptions: that plaintiff’s mother was not carrying plaintiff before and at the time of, as well as after, his brother’s burial; that he was not born between April 14, 1889, the date of his brother’s burial, and the year’s end; that, while the official birth records erred in stating plaintiff’s year of birth, they accurately stated the day as February 13th; and that official birth records made in 1889, which listed plaintiff by name, parentage, and place of birth, as well as by birth date prior to 1890, somehow erroneously anticipated by one year the fact of plaintiff’s birth. The trial judge’s conclusion that plaintiff was born on February 13, 1890, based only in part upon inferences permissible from admissible evidentiary fact, in part upon inferences drawn from inferences, for example, that plantiff was not born sometime in 1889, and in part upon bare assumptions, for example, that plaintiff was born on a February 13th, does not meet the legal standard.for affirmance enjoined upon us by Jackson v. People, supra. We cannot conclude that (p 120) “the evidence is such that it will justify the finding as a legitimate inference from the facts proved.”
The trial court’s order filed May 7, 1962, determining plaintiff’s date of birth as February 13,1890, and granting plaintiff other relief in conformance therewith should be vacated. Costs may be taxed.
T. M. Kavanagh, C. J., concurred in result.
O’Hara, J.
(for affirmance). I do not read the record in this case as does my distinguished Associate. I am in agreement with his statement of the issue and the legal principles involved. It seems to me, however, Mr. Justice Souris in his opinion does exactly what he holds is legally impermissible. I refer to the fact-finding process, or at least the inference-from-facts process which he applies to the record which was adduced. He writes:
“There is no doubt that some of those records are wrong, since the date shown for his birth in the records of Wayne county varies from February 13, 1888 to February 18, 1889. One thing, however, is certain about the records: none of them provides even the slightest basis for assuming that petitioner was born in 1890.” (Emphasis supplied.)
This finding of fact, conclusion of fact or inference from facts, to me, ignores the basic holding of the circuit judge, sitting in a nonjury proceeding. The trial judge found:
“Such records, especially those which purport to certify that plaintiff was horn in 1889, rather than in 1890, are wholly unreliable, and the court gives them no credence.” (Emphasis supplied.)
I am unable to perceive how appellate review by certiorari permits this Court to accept one finding of fact that “some of those records are wrong” and reject summarily the logical extension of such a finding made by the trial judge that all of them were contrary to fact and untrustworthy.
It should not be overlooked that the legislature must have recognized that uncertainty and error attended certain public records when it invited, by statute, judicial review thereof and empowered the circuit courts to order their correction.
At the peril of doing precisely what I contend our Court is not empowered to undertake here, I must, to answer my Brother’s rationale, make reference to those evidentiary excerpts which led Judge Culehan to reject the “records” so-called in toto. Edward Drennan, a total stranger to these proceedings, living in Chicago and a former employee of the county clerk’s office in Wayne county, testified as follows:
. “Q. During that time, you were so employed by the county clerk, did you have anything to do with records of vital statistics?
“A. Yes, sir.
“Q. Birth records, particularly?
“A. Yes, I did.
“Q. Did you have anything to do with searching-records in the office of the county clerk for birth certificates ?
“A. Yes.
“Q. Were you familiar from your employment in the county clerk’s office with the manner in which birth certificates were filed in the office of the county clerk prior to 1906?
“A. Yes, I was.
“Q. And what was that method?
“A. Well, there were several methods. One was a census that was taken every year by — well, he was a political appointee of a ward or a district and he would solicit birth records.
“Q. Yes.
“A. Also, doctors and hospitals used to turn in their records to the county clerk.
“Q. And how were they kept? In what manner were they kept prior to the year 1906 in the office of the county clerk of Wayne county, Michigan?
“A. Well, they were kept very loosely. There was no — they had no system prior to 1906.
“Q. Was there any book—
“A. (Interrupting) Yes, there was.
“Q. (Continuing) — wherein they were kept?
“A. But when they were entered in the booh, it •had nothing to do with when they came into the county clerk. In other words, these records were allowed to accumulate.
“Q. Yes.
“A. And then possibly — no one knows when they were put in the book because I asked several people when were they put in the book and there was no system. For example, today, when a paper comes into the county clerk, it is stamped and filed such and such a date. Now, when it gets into the calendar, I mean, is another date. It might be two or three days. It is generally the following day, but there is no way of knowing when they got into these boohs.
“Q. In other words, there was no identification stamp as to date?
“A. No, there was not.
“Q. On either the report of the census filed by different individuals or the time that the doctors would file a certificate of birth?
“A. Some of the doctors, there were; there were. But, most of them there weren’t.
“Q. I see. And in relation to the time they were filed until they were entered into the book,. there was no way of ascertaining that fact?
“A. There was no way to determine when the records came in and when they toere put in the booh, no.” (All emphasis supplied.)
This testimony alone, if accorded the credence the trial judge was permitted to accord it, was ample to allow him to reject the records of Wayne county in relation to this date of birth. However, there are so many patent errors in the records themselves that without that testimony Judge Culehan’s conclusion was amply justified. Exhibit A, supposedly recorded May 8, 1889, shows a John P. Scallon to have been born February 13, 1888. Exhibit B, purported to have been recorded May 10, 1890, shows a John Scallon to have been born February 18,1889. Exhibit C, an enumerator’s return (paid for on the basis of 10-eents per item to a patronage appointee) and said to have been recorded May 11,1890, attests plaintiff’s birth of February 18, 1889. An earlier enumerator’s return shows plaintiff to have been born February 13, 1888. Exhibit E, yet another recorded May 11, 1890, sets the birth date at February 12, 1889. Apparently each enumerator considered the 10-cent stipend for a birth or death recording of considerably more importance than the accuracy of the date of the event it purported to attest. Climaxing the weird melange of recording errors is plaintiff’s brother’s birth certificate. Cornelius Scallen is shown, to have been born less than 2 months after plaintiff, a phenomenon not generally regarded as physically possible. The “birth” certif ieate was later shown to he a death certificate. But says Justice Souris, as I understand him, none of these errors establishes even the possibility of plaintiff being born in 1890. This misconstrues the purpose of the testimony and disregards the plain intention of the statute. The foregoing testimony went not to the date of plaintiff’s birth, but as I view the record, it went to the point of the total unreliability of the public records. "When this was established, and surely it was, the fact finder was entitled to accept the affidavit evidence. Nor do I find it a necessary conclusion that the foregoing hodgepodge of inaccuracy “anticipated by one year the fact of plaintiff’s birth.” To so conclude one must disregard completely the testimony of Mr. Drennan that the dates on which records were supposed to have teen entered did accord with the actual date.
I do not conclude as does Justice Souris that the finding that plaintiff was born on “a” February 13th “was a bare assumption.” No one seriously challenged the day of birth. The trial judge did not even address himself to it. Thus when it appeared, under the positive unequivocal affidavit evidence that plaintiff was not yet born in 1889, the court came to the eminently logical conclusion that he was born on an unchallenged day of the following year. It is not unknown that the term for which infants are carried varies a month or so either way.
If one feels obligated to take a legalistic approach to this controversy, it could well be argued that the records themselves, without plaintiff’s affidavits, establish prima facie that plaintiff’s legal birth date is February 13, 1890. Exhibit “E”, a form of affidavit furnished by the State and filed April 25, 1958, made 5 changes in the official record of plaintiff’s birth. It changed the day-date from February 18th to February 13th. It changed the incorrect family name spelling from “Scallon” to “Scallen.” It added plaintiff’s mother’s maiden name. It spelled out the name Peter and gave the birth-year date as 1890. Someone never identified, at some time never established, drew a pen line through the year “1890” and substituted in pen “1889.” The undetermined scrivener also scratched out “Peter” as typed and wrote the initial “P.” Nevertheless, the affidavit was accepted for filing for what it was — a correction of the date of plaintiff’s birth certificate. Are we on appellate review by certiorari (common-law or 1963 model, if there be a difference) required to find that the pen alterations were made before the affidavit was accepted? Was he not completely free to accept the just as logical postulate that someone without authority or basis, in fact or in law, pen-altered the affidavit after it was accepted and filed? If this be so, plaintiff’s birth date was corrected by affidavit on April 25, 1958. Under the attorney general’s theory of the case, such accomplished correction would establish prima facie the birth-year date as 1890. If the affidavits, as he contends, are insufficient to justify a change from 1888 or 1889, to 1890, I assume they would likewise be insufficient to change the date from 1890 to 1889. One does not suppose their effectiveness is dependent on whether the change is to advance or set back the birth date.
In the two and a half years during which I have been privileged to serve on this Court, if there is one tenet, one legal axiom I have learned, it is that almost sacrosanct and reverential status is accorded the findings of fact made by a jury or a trial judge in a nonjury case. Tested by this settled principle unless we make a separate rule for this case, it seems to me we are impotent to disturb Judge Culehan’s findings.
As lately as February of this year, Mr. Justice Black alluded to the principle here involved:
“This is one of the many cases, appealed to this Court as a matter of right under former practice, where controlling issues of fact only have been tried on mutual waiver of a jury; whereupon the losing party has come here with allegation that the trial judge’s findings of fact are contrary to the clear preponderance of the evidence. ” (The asterisk refers to the footnote which I also quote.) Kevreson v. Michigan Consolidated Gas Company, 374 Mich 465-467.
I am not unmindful that Kevreson is a jury-waived automobile negligence case and that the case at bar is a special statutory proceedings affording no jury trial. This difference does not alter the rule. It would indeed stretch the appellate reviewing process to say here that “the trial judge’s findings of fact are contrary to the great weight of the evidence.”
I neither cite nor discuss other precedent cases, nor other authority, for I believe none is involved. The narrow limits of review by certiorari are pointed out by Mr. Justice Souris. I accept them. The court had jurisdiction. The statute specifically supplied it. The proceedings were regular. The total evidentiary record presented a factual dispute. The trier of the facts made findings of fact and permissible inferences therefrom. I find no error. The order of the trial judge directing correction of the records is affirmed. Costs to the appellee.
Dethmers and Kelly, JJ., concurred with O’Hara, J.
Black, J.
(for affirmance). It is true that this Court remains addicted to those weasel words, “review in the nature of certiorari.” Nonetheless, our order granting leave to review Judge Culehan’s statutory determination was, in unqualified legal effect, an issued writ of certiorari. I therefore approach the task of present review within the “any evidence” confines of that constitutionally authorized writ.
Mr. Justice Fellows, describing the scope of review upon certiorari, laid out those confines in Meyers v. Michigan C. R. Co., 199 Mich 134, 137, 138:
“It may not be necessary to repeat what we have so frequently said that this Court does not review the findings of fact of the board, except to determine whether there is any evidence to support the award. The evidence may not be direct; it may be circumstantial. The board not only passes on the credibility of witnesses, but draws its inferences from the circumstances and the facts which it finds established. We may reverse awards for a failure of evidence to support them, but we are not the triers of the facts. With this view in mind, we approach the consideration of this case.”
I could agree both with the reasoning and result Justice Souris has proposed had this been a common-law action with review sought on ground that nonjury findings are contrary to clear preponderance, or that such findings are “clearly erroneous” (see Kevreson v. Michigan Consolidated Gas Company, 374 Mich 465, 467). For instance, if the question had come here as in the factually like case of Fontana v. Ford Motor Company, 278 Mich 199, the Court well might conclude as it did in Fontana. But this is no common-law Fontana Case. This is certiorari to review a special determination of fact the circuit court was expressly authorized to make and enter with respect to correction of records of birth and death. See CLS 1961, § 326.17 (Stat Ann 1956 Rev § 14.237). So, if there is any proof as contemplated by section 326.17, or any permissible inference from such proof, tending to support what Judge Culehan found factually, affirmance is due automatically. Here there is such proof and inference, as Justice Souris’ thoroughgoing analysis of the record plainly discloses.
Compare Justice Souris’ foregoing analysis with this connected passage (Fontana at 202 — 204):
“Defendant contends that, as against the record evidence, the testimony of plaintiff and his brother has no probative force as a matter of law and the record must be taken as conclusive proof of plaintiff’s age, citing Webb v. Haycock, 19 Beav 342 (52 Eng Rep 382); Denoyer v. Ryan, 24 F 77; Campbell v. State, 21 Okla Cr 243 (206 P 622); Meehan v. Supreme Council Catholic Benevolent Legion, 95 App Div 142 (88 NYS 821); Hunt v. Supreme Council, Order of Chosen Friends, 64 Mich 671 (8 Am St Rep 855), none of which, however, sustains the contention.
“In this State one is competent to testify to his own age, Cheever v. Congdon, 34 Mich 296, his testimony, though rebuttable, is ‘best evidence,’ i. e., not secondary, Morrison v. Emsley, 53 Mich 564, and it raises a question of fact, if denied by testimony or circumstances, Durfee, for the use of Lantz, v. Abbott, 61 Mich 471; People v. Bernor, 115 Mich 692; Schweitzer v. Bird, 204 Mich 333. The testimony of plaintiff’s brother is competent at least to his proximate age. Hancock v. Supreme Council Catholic Benevolent Legion, 69 NJ Law 308 (55 A 246).
“Defendant cites no statute or authority which gives to any of the records produced greater probative force than that of ‘competent’ testimony. Plaintiff’s voting registration and marriage affidavit are by way of impeachment of his claim as to his age. All the other testimony is strictly hearsay because no witness with personal knowledge of the facts was produced. Consequently, none of the proof is of such a superior legal character as to determine the fact and the issue necessarily is for the jury.
“However, the finding of a jury in favor of plaintiff’s claim of age would be against the great weight of the evidence. Plaintiff’s mother lives with him and he did not produce her as a witness nor take her deposition. An inference arises that her testimony would have been unfavorable to him. This failure and inference, together with plaintiff’s conduct (during all the time and on all occasions when he had no interest in misrepresenting it) in representing his age as the records proclaim it, and the fact that the record evidence is wholly unimpeached for errors, are of overwhelming force as against the bare statements of plaintiff and his brother. This requires reversal of the judgment and new trial.”
I agree with Justice O’Hara that the statutory determination made in circuit should be affirmed.
Smith and Adams, JJ., did not sit.
In addition to this intrinsic evidence of error, plaintiff relied upon the testimony of a former employee of the Wayne county elerk’s office who was employed therein from 1952 to 1956. This record does not disclose on what basis he was allowed to make his pronouncements about the manner in which entries were made in the clerk’s office 63 years before he commenced his employment therein, as quoted in Mr. Justice O’Hara’s opinion.
9A Uniform Laws Annotated, 1964 Cum Ann pocket part, p 245.
The birth records in evidence variously show plaintiff’s day of birth as February 12, 13, and 18. Nothing appears in this record, other than plaintiff’s apparently continuous use of February 13 as his day of birth, to support a judicial finding that he was born on February 13, rather than February 12 or 18.
CLS 1961, § 326.17 (Stat Ann 1956 Rev § 14.237).—Reporter.
“* Former Court Rule No 64 (1945) provided that ‘Appellant may assign as error that the judgment is against the preponderance of the evidence.’ This has been changed to ‘Appellant may assign as error that the finding on the issue tried without a jury is clearly erroneous.’ GCR 1963, 810. The change of wording does not affect our status as a reviewing Court. We adhere to what was said on that score in Schneider v. Pomerville, 348 Mich 49, Northwest Auto Company v. Mulligan Lincoln-Mercury, Inc., 348 Mich 279, and Barnes v. Beck, 348 Mich 286.”
The present Constitution dubs it a prerogative and remedial writ. Const 1963, art 6, § 4. | [
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Adams, J.
Plaintiff sued and defendants counterclaimed for fraud and breach of contract. Plaintiff is a metal broker. As for defendants, Ace Iron & Metal Company and Atomic Iron & Metal Company are corporations maintaining scrap yards to buy, process, and sell new and scrap metals; Aetna Smelting & Refining Company is a Ben and Mas Gladstone partnership; and Ben and Mas Gladstone are officers of Ace and Atomic.
Most of the facts with regard to three transactions between plaintiff and defendants were strongly disputed by defendants during a lengthy trial, judge Gilmore, jury having been waived, disbelieved defendants, stating to their counsel:
“I was never more satisfied, I will say this for the record right now, I was never more satisfied that I was right on who was telling the truth and who was lying in this case, I was never more satisfied in any case than I was in this one. * * * I am crystal clear your clients were lying throughout. * * * I have never seen a group that I was so well satisfied were lying.”
As for the plaintiff’s case, he stated:
“I believe the testimony of Godwin. I think he was a forthright and honest witness, and I believe the testimony of Wayne Beaver, William Meadows, Charles Killingsworth, and Frederick Miller. I think their testimony was straightforward.”
From the record, we are satisfied the judge was abundantly justified in his conclusion. We accept plaintiff’s version of the facts in determining whether the judge was correct in the verdict he reached and in denying motion for a new trial.
I. Willys Motors Contract.
(a) The Fraud.
Plaintiff Godwin, being without funds, contacted Ben Gladstone about an opportunity to purchase 500 tons of dies from Willys Motors, Inc., at Tpsilanti, Michigan. They inspected the dies and concluded that there were far more than 500 tons of them. Ace agreed to provide financing. Plaintiff and Ace were to share profits and losses 50/50. Godwin, acting for Ace, successfully bid $44.76 a ton.
Ace was to make payment based upon certified weight slips. The scale of the Cronin Coal & Lumber Company, a neutral party, was' to be used for any truckloads of dies. Hauling began October 12, 1956, and was finished November 19,1956. The first three truckloads were hauled to Ace’s yard. The rest were hauled to the Atomic yard. Defendants instructed the truckdrivers to come to the Atomic yard before going to the Cronin scale. Part of the loads was taken off. The trucks were then weighed at Cronin and the balance unloaded. Upon occasion, whole loads were taken to the Atomic yard without being weighed.
Godwin was occupied at an American Motors’ plant in Detroit and did not know what was happening. He asked for a statement but could not get one. Ben Gladstone told him the job had resulted in a loss. After several requests, in April, 1957, Gladstone finally told him they had lost $13,000.
Plaintiff filed a voluntary petition in bankruptcy listing Ben Gladstone as having a disputed claim in the amount of $6,500, one-half the purported loss, and was adjudged a bankrupt. Godwin then discovered the fraud that had been committed upon him. He filed a petition praying that the bankruptcy adjudication be set aside, and began this suit.
(.b) The Extent of the Fraud.
Plaintiff not only had the problem of establishing fraud but also of proving the extent of the conceal ment and his consequent damages. Upon this appeal, defendants abandon the claim that there was no fraud and center their contentions around the claimed failure of plaintiff to prove his damages.
The chief attack is made on the testimony of Witus, a C.P.A. for plaintiff. We will come to his testimony presently. However, it should be borne in mind that, as the foundation upon which the expert accountant constructed his theory, plaintiff established in considerable detail certain facts about the defendants’ operations to justify the theory.
The corporate defendants had been partnerships, among the Gladstones and other persons, until they were dissolved on May 28, 1956. They were then taken over by the Gladstones and incorporated July 1, 1956. In the negotiations for dissolution of the partnerships, the Gladstones had demanded that inventories of steel and scrap be liquidated as fast as possible. When their representative took charge of the yards on May 28, 1956, it was to liquidate any remaining inventory. Prom May through September, the yards were substantially empty of inventories. Sales were approximately equal to inventories and purchases for the period. Plaintiff established that the price of steel was excellent and so it was advantageous for defendants to sell everything they had on hand.
Defendants’ sales of steel increased from October 1, 1956, to April 30, 1957, while the Willys dies were being processed. Most of the Willys dies were steel and would produce #1 steel. In the ordinary course of an operation such as defendants’, the scrap which would be processed and sold would come from peddlers and other small operators. It would not produce substantial amounts of #1 steel. After April, 1957, defendants’ operations in steel declined rapidly. A few months later there were no sales of #3 steel.
Plaintiff’s problem of establishing the amount of the concealment was also complicated because of intercompany transactions between Ace and Atomic, because some of the records of Atomic had been burned, because the record of purchases was kept in dollars with minimal notations as to the type of material, and because beginning inventories were in dollars rather than in kinds of materials. On the other hand, there were accurate records of sales, both as to quantity and kind.
Harry Witus, C.P.A., witness for plaintiff, examined the books and records of the corporate defendants. Since the only accurate records were of sales, Witus sought a base period to determine what percentage #1 steel would normally occupy to total sales. Because of the short time defendants had been in business, he chose August and September, 1956. He divided total sales for those months into sales of #1 steel and determined that #1 steel comprised 5.02% of total sales. He reasoned that during other periods the defendants would purchase and sell #1 steel to the extent of 5.02% of their total sales. Witus applied this formula to uncover the amount of #1 steel not reported on the neutral scale.
Witus subtracted the amount of #1 steel the defendants reported as having received from Willys (2,377.2 tons) from total sales between October 1, 1956, and April 30, 1957 (31,985 tons). The result (29,607.8 tons) would represent the normal sales defendants would have made had they not entered into the Willys contract. Witus took 5.02% of this figure as representative of the amount of #1 steel which the defendants should have sold (1,486.3 tons). However, defendants’ records, omitting the amount reported from Willys, revealed they had actually sold 3,806 tons of #1 steel. The excess (2,319.7 tons) over what normally would have been sold was claimed to be the amount not reported on the neutral scale.
Albert Goldman, C.P.A. and defendants’ accountant, attacked the Witus procedure and attempted to show that the unaccounted for steel could have been generated from other purchases. Prom Goldman’s analysis, defendants claim the Witus report was (1) not based upon the facts and figures disclosed by their books and records; (2) did not take into consideration purchases and inventory; (3) was based solely upon assumptions; (4) that the two-month period selected for making the formula were not normal months; (5) that the seven-month period from October 1,1956, to April 30,1957, was arbitrarily selected; (6) that there was no reason to combine the sales of Ace with those of Atomic; (7) that he did not analyze the actual shipments; and (8) that he assumed all of the dies taken from Willys Motors were heavy melting or #1 steel.
Throughout the trial, Judge Gilmore had insisted he would not do an accounting, that if many detailed transactions were to be examined they should be examined by the accountants and summaries prepared for him. Nevertheless he did permit all proofs either plaintiff or defendants elected to submit. On April 3, 1962, both sides rested without reservation. The court took the case under advisement, studied the reports of the two C.P.A.s, and then called in counsel. This is what happened:
Judge Gilmore: “I studied both reports and I didn’t have the answer, so what did I do? I called you both in and I said, T am confused on the two accountants’ reports.’ I didn’t give either of you an indication of how I was going to rule, but I said, T want the help of someone else.’ At that time you didn’t say, Well, send it to a commissioner.’ I said, ‘I want to appoint a C.P.A.’ You said, ‘Fine.’ I said, ‘Will you share the expense?’ You said, ‘Sure, both of you.’ So then I waited and I got the C.P.A.’s report.”
Albert E. Lee & Company was appointed to make an independent report which was submitted August 28, 1962, with copies to counsel. Final argument took place on November 2 and again on November 5, 1962. On the latter date the court rendered an oral opinion and gave judgment for plaintiff.
While the court used the Lee report to assist it in considering the testimony of Witus and Goldman, the court made its findings upon the basis of the Witus testimony and that of the other witnesses for the plaintiff. We have narrated the substance of that testimony in detail because it laid the foundation for the work of plaintiff’s C.P.A. and the conclusions to be drawn from his analysis. The procedure used by Witus, in view of the other testimony, was a reasoned analysis and sufficient to support the inferences made by the expert and by the court. A strict accounting might have been the better way to get at the facts. Defendants, however, elected to maintain there had been no fraud. If there was no fraud, there was no need for an accounting. They can scarcely now complain because plaintiff made his proofs as best he could.
“But where injury to some degree is found, we do not preclude recovery for lack of precise proof. We do the best we can with what we have. We do not, ‘in the assessment of damages, require a mathematical precision in situations of injury where, from the very nature of the circumstances, precision is unattainable.’ Particularly is this true where it is defendant’s own act or neglect that has caused the imprecision.” Purcell v. Keegan, 359 Mich 571, 576. The policy for this rule of damages was stated by Justice Christiancy:
“Since, from the nature of the case, the damages cannot be estimated with certainty, and there is a risk of giving by one course of trial less, and by the other more than a fair compensation — to say nothing of justice — does not sound policy require that the risk should be thrown upon the wrongdoer instead of the injured party? However this question may be answered, we cannot resist the conclusion that it is better to run a slight risk of giving somewhat more than actual compensation, than to adopt a rule which, under the circumstances of the case, will, in all reasonable probability, preclude the injured party from the recovery of a large proportion of the damages he has actually sustained from the injury, though the amount thus excluded cannot be estimated with accuracy by a fixed and certain rule.” Allison v. Chandler, 11 Mich 542, 554.
See, also, Gilbert v. Kennedy, 22 Mich 116, 130, 131; City of Kalamazoo v. Standard Paper Co., 182 Mich 476, 489; Routsaw v. McClain, 365 Mich 167. The court did not err in its determination of the amount of unaccounted for steel.
(c) The Aivard.
Defendants next contend that the court erred in awarding plaintiff the total sale price of the unaccounted for steel less expenses of handling. The claim is that, if there is unaccounted for steel, a fraud has been committed upon Willys and that defendants will be obliged to respond to Willys for the fraud. The trial court found:
“This court cannot determine whether Willys was cheated or not. This court cannot make any finding on that because Willys has never come into this action, there is no showing here of what happened to Willys, there is no showing of whether Willys participated in the cheating or not, or whether they did anything, so the court cannot make any definite finding of any kind as to Willys.”
We agree with the court and consequently make no decision as to the rule of recovery had there been a determination that Willys was cheated.
The court originally gave judgment on the Willys contract for $53,108.41 plus interest in the amount of $15,047.34. Upon motion for new trial, he allowed defendants a credit of $4,084 for loading and $2,554.50 for freight. However, he did not recompute interest on the reduced figure. This should be done upon remand.
(d) Willys’ Intervention.
Appellants further complain that the court erred in rendering a judgment for plaintiff for the total concealed tonnage when the court knew that Willys had instituted suit against plaintiff and defendants. Willys, fully cognizant of the situation, did not elect to intervene in this case. Neither plaintiff nor defendants sought to make Willys a party. The proposition that the case should now be retried when neither Willys nor any of the parties to this action sought to make Willys a party prior to trial is without merit.
II. American Motors Heat-treat Contract.
The second transaction between plaintiff and defendants involves a contract entered into by plaintiff and Ace Iron & Metal Company with American Mo tors Corporation for wrecking and removal of a building. Plaintiff’s proofs established that Ace sold certain of the materials — alloys, copper and brass — to Aetna at a low price and later Aetna sold the materials at a higher price. Defendants gave plaintiff a purported accounting at peddlers’ prices, not those obtained by Aetna. The court awarded plaintiff judgment. The proofs support that judgment. We can find no error.
III. American Contract on the Loading Dock & Building.
The third contract called for the dismantling of another American Motors’ building. Plaintiff contended that defendants misrepresented the value per pound of the materials. Plaintiff was the only one to testify. The trial judge ruled that he had not proven his claim by a preponderance of the evidence. We agree.
IY. Counterclaims oe Deeendants.
While the previous American Motors contract was being carried out, American Motors decided to dismantle a third building. It entered into a contract with plaintiff to do this for $1,125. Defendants contend that the receipt of this money was made known to them only at the inception of this suit, and that it should have been divided with them. The judge did not mention the $1,125 in his opinion. Plaintiff testified :
“Q. Then you said you made a deal with the Gladstones that they were to get 50% of it [the $1,125] ?
“A. We made a deal on the rails too, [the third contract] 50% of that, which I never received any money. * * *
“Q. But it belonged to the both of you?
“A. I never denied that.”
The plaintiff also admitted he received $600 from one of the defendants. It appears that the money was advanced on an American Motors contract. Ben Gladstone also testified that the plaintiff was advanced an additional $2,125.
In view of the statements made by plaintiff, there should have been a determination of the merits of defendants’ counterclaims.
V.
The judgment on the Willys Motor contract is affirmed save for a redetermination of interest. The judgments on the American Motors’ heat-dreat plant contract and the American Motors wrecking job contract are affirmed. The case is remanded for a determination of defendants’ counterclaims. Costs of this appeal are awarded to appellee.
T. M. Kavanagh, C. J., and Dethmers, Kelly, Black, Souris, Smith, and O’Hara, JJ., concurred.
Part of the dies were loaded on railroad cars and there is no controversy with regard to them.
The trial judge accepted this figure, but gaye the defendants credit for the amount of #1 steel they had shipped in the period just prior to October 10, 1956.
See the cases collected in support of the following found in annotation, 32 ALR2d 1345, 1388: “It is a basic legal principle that an innocent plaintiff suing on a legal and moral contract cannot be defeated by a plea of the defendant’s own misconduct or, as it is otherwise stated, the defendant’s own iniquity shall not be set up against an innocent party.” | [
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Kelly, J.
(dissenting in part). Plaintiff’s declaration (filed June 24, 1960) in four counts charged James Jacob DeLiefde in count 1, John DeLiefde in count 2, and James Friar in count 3, of injuring plaintiff, while pheasant hunting, by “negligently, carelessly, and recklessly” firing a shotgun, resulting in the shot striking and injuring plaintiff, and in count 4 made the same charge against all three defendants on the theory of joint liability.
January 2, 1963, defendants John DeLiefde and James Friar filed motions for summary judgment alleging in the affidavit in support thereof that plaintiff’s August 15,1962, deposition (requiring 28 pages of the printed appendix) established under oath: “That said Bobert McCoy testified, of affiant’s own knowledge, under oath, at said deposition that said James Friar did not shoot him, and that it was his claim that John DeLiefde did not shoot him and there was never any question in his mind but what it was James Jacob DeLiefde who shot him, and he knew that when the suit was started and also when the declaration was prepared; that he knew definitely from his own observation that John DeLiefde or James Friar could not have shot him; that the shot came from the exact position where Dr. James Jacob DeLiefde was standing.”
In a written opinion of the court on the motions for summary judgment, Hon. Baymond W. Fox, circuit judge, held:
“By a deposition of the plaintiff under date of August 15, 1962, plaintiff has positively stated under oath that it was defendant James Jacob DeLiefde who shot him. * * *
“At the hearing of the motion for summary judgment, an affidavit was filed by Zoe E. Shaffer, attorney for the plaintiff. In this affidavit counsel swears that at least three witnesses will testify that the shot which injured plaintiff came from the location of the three defendants but that they were uncertain as to which of the three shot, but that they knew one of them did. This, of course, is negative testimony to the degree that the witnesses cannot say which of the three shot, but plaintiff has testified by deposition that he knows which of the three shot and that it was Dr. James DeLiefde.
“There are no contradictory statements by the plaintiff, nor has he filed any affidavit contradicting his testimony in the deposition. Under such circum stances, it is the opinion of this court that plaintiff is bound by his own testimony. See 80 ALR 624, 50 ALR 979, and see also Bolman v. Louisville & Nashville Railroad Company (CA 6), 295 F2d 809. * * *
“However, the rule is clear and unambiguous, and in the absence of any affidavit by either the plaintiff or any witness in his behalf, it seems to follow that the motion for summary judgment should be granted. For the foregoing reasons, as to counts 2 and 3 a judgment of no cause of action is rendered in accordance with Rule 117, GrCR 1963.”
Appellant states:
“We submit this ruling (the trial court’s) is clearly error. Appellant admits he stated in the discovery deposition that he claimed James Jacob DeLiefde shot him but that statement when viewed as a whole makes it abundantly clear that this statement is the conclusion of appellant based on what he observed at the time of the accident. At the same time appellant also stated that he did not see the shot fired, that' he did not see the gun, and that he did not see who shot the gun, that he heard the shot, and based on what he heard and saw before the shot was fired appellant concludes the shot was fired by defendant James Jacob DeLiefde.”
The deposition discloses an unusually clear and positive recitation as to what occurred at the time of and just previous to the accidental shooting.
In this deposition plaintiff relates that he was not acquainted with the three defendants when he first saw them 800 to 900 feet west of him; how he watched the three spread out 20 or 30 feet apart as each proceeded east toward him, veering first to the south and then to the north, and then finally coming together as they crossed a ditch, passing him at that time about 15 feet away, then turning east into the cornfield and again spreading out 25 feet apart as they turned south; how he moved south following them for a distance of about 150 feet, being about 15 feet behind them, and during this time he could clearly see all three as he could “see right across the corn field; the corn was dry and hanging so you could see”; how a black dog was following at Dr. DeLiefde’s heels at all times; how Dr. DeLiefde was dressed, wearing “a red leather cap” and that he had on “real thick glasses, thick rims” and had a “bushy long hair cut”; that plaintiff was standing facing east when he was shot; that he heard Dr. DeLiefde’s son holler “hen pheasant” and observed the doctor’s dog walking around the doctor counterclockwise, with the doctor turning his body looking down at the dog; that he saw Dr. DeLiefde “instantly” before the shot was fired that almost immediately hit him; that while he did not see the doctor shoot he was positive the doctor shot him as he had “hunted a long time and know where a shot comes from”; that he knew where all three defendants were positioned when the shot was fired and he knew it had to be the doctor that shot him.
Appellant’s counsel explains as follows:
“Appellant’s counsel, not appellant, was the pleader in the case. Appellant’s lawyer pleaded inconsistent causes of action because after listening to the statement of appellant and the other witnesses the lawyer was confronted with uncertainty as to the facts and occurrences which caused appellant’s injury. One fact came through all the statements. One of the three defendants fired the shot which injured appellant, but it is uncertain who fired the shot.” (Emphasis added.)
No explanation, however, is offered why the names of the witnesses are not divulged or why their affidavits were not offered to sustain appellant’s counsel’s contention.
The court did not err in holding that “in the absence of any affidavit by either the plaintiff of any ■witness in Ms behalf,” judgment of no- cause of action is rendered as to counts 2 and 3.
Count 4 charging- joint liability is based on the charge that “defendants were engaged jointly in the negligent activity of hunting in a corn field wherein their visibility was impaired,” and “that all of said defendants and each of them knew or should have known that it was extremely dangerous to the rights and safety of plaintiff and others to hunt and fire a gun under such circumstances and that to do so would be acting in utter disregard of the rights and safety of plaintiff and others, that nevertheless all of the said defendants, without due caution and regard for the rights and safety of plaintiff and others did hunt in said corn field, together in concert aiid with a common design.”
In the opinion holding that the motions of John DeLiefde and James Friar for summary judgment should also be granted as to count 4, the court held:
(a) “The rule as to joint liability seems to be that where two or more persons are negligent and plaintiff does not know which party’s negligence caused his injury, that plaintiff can recover of both,” would not apply under the court’s ruling- in re counts 2 and 3 finding- “from the deposition of plaintiff that it was Dr. James Jacob DeLiefde” who shot at the pheasant and hit plaintiff;
(b) “There is no claim that hunting in a cornfield constitutes a violation of any statute or ordinance, nor is there any claim that it is a criminal or unlawful act. There is no allegation that the defendants John DeLiefde and/or James Friar concurred in the unlawful act of shooting a hen pheasant, nor is there any allegation or claim that they concurred in James Jacob DeLiefde shooting, if he did, without observing where the plaintiff was.”
Referring to plaintiff’s attorney’s affidavit in opposition to the motions to the effect that the corn was “thick, iii excess of seven'feet high”, appellees state:
“The affidavits are not made on the personal knowledge of the plaintiff’s attorney; they are based at best on hearsay of other witnesses. No affidavit of any of these witnesses was filed. For the reasons previously discussed, we submit the affidavits of plaintiff’s attorney are a nullity.
“Plaintiff has repeatedly testified that he could see through the corn, and this is uncontradicted. The very bases [basis?] of the plaintiff’s case thus falls, since the uncontradicted testimony of plaintiff is that one could see through the corn field and the respective parties could see each other.”
The court did not err in entering the order granting summary judgment.
Affirmed. Costs to appellees.
Dethmers and O’Hara, JJ., concurred with Kelly, J.
Souris, J.
I agree with Mr. Justice Kelly’s conclusion that, since plaintiff unequivocally had deposed that defendants John DeLiefde and James Friar did not fire the shot which struck him, and since plaintiff did not counter defendants’ motions for summary judgment by offering any other evidence, by affidavit or otherwise, that either of them did, the trial court did not err in dismissing those counts of the declaration specifically charging those two defendants with having shot plaintiff negligently.
The trial court erred, however, in dismissing count 4 of plaintiff’s declaration by which plaintiff sought to hold all three defendants jointly liable. Plaintiff’s theory of defendants’ joint liability is that all three of them had engaged negligently in the concerted activity of hunting, the alleged negligence consisting of hunting and firing firearms in a field where the corn was so high and thick that it was very difficult to know if another hunter were in the line of fire.
The fact that only one of the defendants might by his direct act have injured plaintiff does not necessarily absolve the other defendants. In Mahnke v. Freer (1901), 126 Mich 572, plaintiff brought suit against four defendants who had allegedly been driving their four horse-drawn carriages rapidly along a street. Plaintiff, riding a bicycle, collided with one of the carriages and was injured. All testimony indicated that it was defendant Freer’s carriage which struck plaintiff. The Court found no error when the trial court charged as follows:
“If, at the time, the plaintiff was in the exercise of due care, and there was a concert of action on the part of the defendants to race their horses, the plaintiff could recover against all the defendants ; but, before he could recover against any of them, the jury must find that their negligence was * * * [a] proximate cause of the injury. If, however, they found that such negligence did not extend to all the defendants, then the verdict might be rendered against such defendant as was in fault, if the plaintiff himself was using due care.” 126 Mich 572, 576.
A similar situation was presented by Benson v. Ross (1906), 143 Mich 452 (114 Am St Rep 675). There, plaintiff brought suit against three defendants, alleging that while the three were taking turns firing a rifle, one of them shot him.
“Defendants’ testimony tended to show that, some time before the accident, the two defendants Ross had ceased to participate in the firing, and that William J. Ross had requested Haight to shoot no more. The circuit judge seems to have deemed it essential to plaintiff’s case to show that the shot was fired by one of the two contesting defendants, or by his affirmative direction. We think this view of the defendants’ responsibility too restricted.
“There was testimony tending to show that the three defendants were acting in concert in an act, not only violating a city ordinance, but palpably and grossly negligent. If the jury found such concert of action, all would be liable as joint tort-feasors. Jenne v. Sutton, 43 NJLaw 257 [39 Am Rep 578]; Mahnke v. Freer, 126 Mich 572, 576; Conradt v. Clauve, 93 Ind 476 [47 Am Rep 388]. Whether the defendants’ testimony was sufficient to overcome the evidence offered on plaintiff’s behalf was a question for the jury.” 143 Mich 452, 453.
Although the Benson Court observed that the defendants there were acting not only negligently but also in violation of a city ordinance, this latter factor is not a prerequisite to imposition of negligence liability if the former be present. This is demonstrated by Gaufin v. Valind (1934), 268 Mich 269. There, defendants appealed from a jury verdict awarding damages to plaintiff for injuries she sustained when she was struck by a can thrown from a truck during a parade. Defendants were a wholesale grocer and Valind, a representative of a canning company. Employees of the grocer and Valind had decorated the truck, had driven it in the parade, and had thrown cans therefrom for advertising-purposes. No reference to any statutory violation was made, and the Court approved this jury instruction, and others:
“ ‘If two persons act in concert or with a common design or purpose, and one of them commits a negligent act by which a third person is injured without fault or negligence on the part of the third person, then the two so acting in concert are joint wrongdoers and both are liable for the injury, so done, because both owed the common duty to the injured person to do no negligent act towards him.’ ” 268 Mich 269, 272.
Whether, upon trial, plaintiff can prove facts to support his allegations is, of course, a question the determination of which must await that event. Plaintiff did succeed in Gaufin:
“The evidence was sufficient to justify a finding of community of interest in the display as made and the manner in which it was sought to be made effective, and warranted the instruction as given.” 268 Mich 269, 273.
Thus, even if it be admitted that it was defendant James DeLiefde who shot plaintiff, this in itself would not necessarily absolve the other defendants from liability. Plaintiff’s count 4 stated a cause of action within the authority of Benson, Mahnke, and Gaufin, supra, since it alleged that all three defendants were jointly engaged, negligently, in a concerted activity as a result of which plaintiff was injured. Thus was created a genuine issue of material fact (GCR. 1963, 117.2), namely, whether defendants had so acted, and neither plaintiff’s deposition nor defendants’ attorney’s affidavit sufficed to eliminate this issue on defendants’ motions for summary judgment, which issue plaintiff was entitled to have resolved by a jury.
Affirmed in part and reversed in part. No costs, neither party having completely prevailed.
T. M. Kavanagh, C. J., and Smith and Adams, JJ., concurred with Souris, J.
Black, J.
Excepting the conclusions reached in the first paragraph of Justice Souris’ opinion, I concur fully with him.
Summary judgment as entered should be reversed outright, with costs to plaintiff. | [
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Souris, J.
Plaintiff appeals from the trial court's direction of a verdict against him at the conclusion of his proofs. Plaintiff was the consignee of a shipment of fiber board transported by defendant carrier. The board was packed in three wooden crates, each measuring approximately 57 inches by 90 inches by 5 inches. The gross weight of the three crates was 1,443 pounds.
Defendant delivered the crates to plaintiff’s place of business in a tractor-trailer unit. The crates were the only freight in the trailer. Two of the crates were standing upright against the side wall of the trailer resting on their 5-inch side with the 57-inch dimension being vertical. The third crate was tilted slightly so that it leaned against the other two. A brace was nailed to the top of the third crate and extended diagonally to the floor of the trailer where it also was nailed.
When the freight arrived plaintiff was home eating lunch and in accordance with his instructions was summoned by his employee Foster. In the meantime, the brace was removed. Upon plaintiff’s arrival, he, Foster, and the tractor driver entered the trailer, the driver going to the far end of the crates, plaintiff stopping at about the mid-point and his employee, Foster, standing at the end of the crates nearest the loading dock. When the outermost, tilted crate was pulled erect, preparatory to its removal, the other two crates toppled towards it, causing all three crates to fall upon plaintiff with resultant grievous injury. It was plaintiff’s -contention, supported by the testimony of experienced truckers, that defendant’s negligence, in failing to tie, block, or tilt the two cratés nearest the trailer wall, was a proximate cause of plaintiff’s injury.
The trial court directed a verdict against plaintiff on the ground that, as a matter of law, he was con tributarily negligent. He reasoned, properly, that it was not legally significant in the context of this case whose duty it was to unload the freight; that, if defendant had negligently loaded the crates and if its negligence proximately caused plaintiff’s injury, defendant would be liable therefor. However, he concluded that plaintiff was barred from recovery because of his own contributory negligence, which he found as a matter of law, in participating in the unloading when he knew that the two inside crates might fall, upon removal of the outer crate, unless they were tilted also or otherwise secured. In denying plaintiff’s motion for new trial, the trial judge summarized his conclusion thusly:
“[Plaintiff] placed himself in a position of danger. He, himself, joined in pulling the leaning crate toward him and thereby released the two upright crates so that they fell upon him. I cannot convince myself that any jury has the right to find on the undisputed proofs in this case — most of it from the mouth of the plaintiff- — that he acted as a careful and prudent man with his knowledge and in his position would have acted.”
The trial court’s decision was premised upon a factual finding — that plaintiff knew, or should have known, that the crates as loaded by defendant carrier were liable to fall as soon as the outermost crate was straightened. The determination of such fact question should have been left to the jury. Detroit & M. R. Co. v. Van Steinburg (1868), 17 Mich 99. Plaintiff had testified that in the process of unloading numerous similar shipments from various car riers over a period of years, never had the inner crates toppled when the outermost had been moved. In addition, witness Foster, who had assisted in the unloading, testified:
“Q. As you were moving this [the outermost crate] up, you didn’t attempt to steady and hold up the two upright crates ?
“A. No.
“Q. You were sure they were balanced?
“A. We did that.
“Q. Did they look like they were tilted at that time ?
“A. My [By?] naked eye, you could hardly tell the difference.
“Mr. Gruel: That’s all, thank you.
“Re-Direct Examination By Mr. Hayes:
“Q. When you first looked at these crates, were you getting out this board, this board that was wedged in there, was there anything to suggest to you that these crates were going to fall?
“A. No, nothing whatsoever, otherwise, we could have avoided a tragedy.”
We are not prepared to say that a jury of 12 reasonable men, ideally representing the collective wisdom and experience of the community, would be by law precluded from finding plaintiff free from contributory negligence in such circumstances.
Reversed and remanded for new trial. Costs to plaintiff.
T. M. Kavanagh, C. J., and Dethmers, Kelly, Black, Smith, O’Hara, and Adams, JJ., concurred.
The trial court’s opinion on plaintiff’s motion for new trial observed. that plaintiff might be barred from recovery by the doctrine of assumption of risk, citing Waltanen v. Wiitala (1960), 361 Mich 504. Since the trial of this case of Best, Waltanen has, of course, been overruled by Felgner v. Anderson (1965), 375 Mich 23. The trial court went on to rule that plaintiff was barred on the alternative grounds of assumption of risk or contributory negligence. | [
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Cooley, C. J.
The bill was filed in the court below to foreclose a mortgage given by the defendant Carpenter to-complainant, and to set aside an assignment thereof by complainant to Henry S. Holcomb, on the ground that the-same was obtained by fraud. Henry O. Smith having become the owner of the equity of redemption, obtained from Holcomb a discharge of the mortgage, and it is in his-behalf that the defense has been made.
Bespecting the assignment the allegation of the complainant is, that while on her Avay to the Territory of Montana, in company with Holcomb, they stopped at Burlington, Iowa, where they awaited the arrival of her husband who-started later, and that while there and while she was in feeble health, Holcomb procured from her the assignment, on the pretense that it was necessary to protect her interest, in the mortgage, and without any payment. Holcomb on the other hand claims to have bought the mortgage, paying-at the time to complainant 8400, and arranging afterwards. with complainant’s husband for some $300 or $400 more, leaving $400 or $500 of the purchase price still unpaid.
The mortgage was collateral to three promissory notes. These are not mentioned in the assignment, and when that was made were in the hands of complainant’s husband. Holcomb never obtained either the notes or the mortgage, though there is evidence that he endeavored to induce Mr. Fletcher to deliver them to him, in order that he, on his return to Michigan, might raise money upon them to send to complainant and her husband, who were for the time to remain in the west.
We are satisfied that complainant’s story of the manner in which the assignment was obtained from her is substantially correct, and that Holcomb never bargained for the securities and never made payments on a purchase. The only question that remains is, whether complainant has lost any thing by delay in instituting this suit, and by the subsequent transactions between Holcomb and Smith.
This suit was not instituted until nearly four years after the assignment was obtained. This delay would have been exceedingly suspicious had the securities been delivered over to Holcomb, but under the circumstances it is not so surprising. No estoppel results from it unless Smith has- in good faith acquired rights in the meantime. We do not think he has shown that such was the case. He claims to have, bargained for the mortgage for the sum of $1,300, —the same amount that Holcomb testifies he agreed to pay more than three years before, — but there is no pretense that he paid more than $50, and any payment must have' been made' with full knowledge of complainant’s claim that she was still the owner. Being aware of this claim we think he was bound to ascertain that Holcomb had possession of the evidences of title; but he seems to have contented himself with an inspection of the assignment and not to. have inquired further. Such an assignment, unaccompanied by the securities, would not transfer them, unless it appeared that such was the intent of the parties and that a consideration was paid. The assignment by itself would at best be an equivocal instrument, not indicating very conclusively that the transfer was intended to be completed by it, and the fact that the securities were never handed over ought to have put a purchaser upon inquiry before he ventured to deal with the nominal assignee as owner. See Haescig v. Brown, 34 Mich., 503.
We do not deem it important to examine the evidence in detail, and we content ourselves with giving our conclusions. Neither do we consider in this opinion some technical objections made to complainant’s case, and which we think not well founded.
The decree of the court of chancery is correct, and will be affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
In the court below the corporate existence of the defendant in error was in dispute, and they sought to establish it by showing that the associates held the ordinary meetings of a religious society, and that they elected officers, among which was Fredenburg as treasurer. This evidence was held to be sufficient; the court regarding Fredenburg as precluded, by accepting the office of treasurer, from disputing the corporate existence. Now had any of the acts of the associates been unmistakably corporate acts, there would be some ground for the ruling of the court below. But such was not the case. Every act done, including the election of officers, was just as consistent with the existence of an unincorporated association as of a corporate body, and was just as proper to be done by the one as the other. Indeed, the evidence in the court below, taken together, tended very strongly to show that no corporation had ever been formed, and that the associates had not seen fit to avail themselves of the authority of the statute for that purpose. Under such circumstances there is no room for the suggestion that any one was estopped from denying the incorporation. Estoppels, never arise from ambiguous facts; they must be established by those which are unequivocal, and not susceptible of two constructions. See Bennett v. Dean, 35 Mich., 306. | [
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Cooley, C. J.
The special count on which a recovery was had in this cause was as follows: The plaintiff complains “for that whereas, heretofore, to-wit, on or about the 1st day of May, A. D. 1872, the said defendant being then engaged in the business of selling the descriptions of wild land, which were subject to private entry and .sale by the United States, and also by the State of Michigan, upon the recommendations and representations of the said defendant as to the quantity and value of the lands which such descriptions represented, did on the day and date aforesaid, and at the city of Ionia in the said county of Ionia, in consideration that the said plaintiff, at the special instance and request of him, the said defendant, would purchase of him, the said defendant, at and for the price of one hundred dollars for the descriptions of each and every eighty acres of land hereinafter mentioned, the minutes or particular descriptions of land by him, the said defendant, designated and named as follows, to wit: [describing a number of lots], all in town nineteen north, of range eighteen west in the county of Mason in said State, to be paid to him by the said plaintiff, to the said defendant, then faithfully undertook, promised and represented to the said plaintiff that the said, lands were of the quality and had then growing thereon timber of the kind, quantity and quality hereinafter designated, that is to say, that there was then and there growing upon the said northwest quarter of the northeast quarter of said section 30, in town 19 north, of range 17 west, one hundred and fifty thousand feet feet of good quality of cork pine, trees of large size; that the soil was sandy and of second rate quality, and {resides pine, said land also had growing thereon a large quantity of valuable hemlock trees intermixed with beech and soft maple [and so on, giving the alleged representations as to each of the other parcels].
“And the said plaintiff thereupon informed said defendant that if he purchased of him the said minutes and descriptions of land, it was for the purpose of purchasing the lands themselves of the United States and of the State of Michigan, according as he might ascertain which of said governments owned the same, and by reason of their value on account of the timber growing thereon that would make such land valuable and profitable for lumbering purposes, and by reason of their value for farming purposes after all the timber fit for good lumber has been cut off of the same, and having never seen said lands, or any of the same, he should rely upon the promises and upon the representations and undertakings of the said defendant concerning the same hereinbefore set forth. And the said defendant so being informed by the said plaintiff, did at Ionia aforesaid, on or about the 1st day of May aforesaid, sell the said plaintiff each and every of the said descriptions of land for the purposes aforesaid, and at the special instances and request the said plaintiff then paid him therefor the sum of one hundred dollars for each description of eighty acres of land, making in all the sum of nine hundred and fifty dollars, relying upon the promises, undertakings and representations of him, the said defendant, of and concerning the said lands and their quality and of and concerning the quality and quantity of timber growing thereon as aforesaid.
“And the said plaintiff further avers that afterwards, to-wit: on or about the 9th day of May, 1873, and relying upon the said promises and undertakings of the said defendant, he, the said plaintiff, at great expense, purchased [the said lands of the United States and of the State of Michigan, paying therefor sums of money which are specified; that he has ever since been owner thereof and paid out large sums in taxes and] in ascertaining in fact the quality and quantity of said lands, and of each and every parcel thereof, and the quality and value of the timber growing thereon. And although he in all respects kept and performed his agreements with said defendant, and paid him the said sum of nine hundred and fifty dollars for the said minutes and descriptions of land, yet the said plaintiff in fact alleges that the said lands were not of the quality, and did not then have growing thereon, nor on any of the said descriptions thereof, pine trees or hemlock, either of the quantity or quality so promised and represented by the said defendant to the said plaintiff as hereinbefore set forth, but on the contrary thereof the said land had no such timber growing thereon and was not of the quality so promised by the said defendant, and was of no value whatever either for farming purposes, or for any of the purposes for which the said plaintiff purchased the said minutes of said defendant, and said lands aforesaid whereby said plaintiff hath suffered great damages, to-wit: the sum of six thousand dollars.”
The theory of this count, as we understand it, is that Page, having special knowledge regarding certain parcels of government lands which would be valuable to persons contemplating the purchase thereof, was engaged in the business of selling descriptions thereof, as one might sell a valuable secret as property, and that in the course of that business he sold to the plaintiff his knowledge of the several parcels of land which the plaintiff subsequently purchased, giving a particular description of the important features of each parcel, and warranting his description to be correct. It is material now to inquire how far this theory is sustained by the evidence.
The plaintiff was a witness on his own behalf, and testified as follows:
“Page, the defendant, has been engaged in land-looking for some 20 years past, and has been in the habit of looking up pine lands and furnishing ‘minutes’ thereof. Witness had conversation with Page some time in the winter of 1872. “I told him when he went into the woods again I wanted him to look me up some good pine lands, and I would pay him for it. He always said: ‘Why, Judge, I know just what you want, and I can give you what you want.’ Had several conversations about it. He said he would give me first refusal of minutes of good pine lands. Sometime in the spring he went into the woods; and shortly after that he wrote or telegraphed me that he had some ‘minutes.’ No particular price was agreed upon for the minutes. I was to pay what the minutes were worth after he returned from the woods. The land he gave me minutes of and which I bought are in Mason county, towns 19 N., 17 and 18 W., this State. I told Page I thought it strange that Mears and others hadn’t taken these lands. Page said purchasers sometimes go around good pieces of pine land. After Page came back to Ionia I told him I wanted the estimates of the land, and Page read them from his minutes; he said they were minutes of good pine land, and I set down on each description of land the quality and quantity of pine and other timber, and of the kind of soil. [Witness here produced a paper, and said] I hold in my hand the minutes of each description as noted down by me and signed by the defendant. [This paper was marked Exhibit A.] Page went into the woods and the understanding was that he would give me some minutes of good pine lands. I received a letter or telegram telling me to locate the lands described in ‘Exhibit A.’ I did so. I located all these lands under this arrangement. After I located the lands I had him make these minutes (Ex. A). I bought the lands on the strength of his agreement to furnish me with descriptions of good pine lands, that he would give me minutes of good pine land.”
Cross-examination: “In 1872 I told Page to look up some good pine lands for me, and he told me he could give me just what I wanted. While he was in the woods he wrote or telegraphed me giving me the descriptions, and I went and located the lands. The minutes were made after he came out of the woods. Paid him between $513 and $525. There was no special agreement as to the price: was to pay what they were worth. ‘Exhibit A’ and the-representations therein were made after the locating of the-lands by me. The letter or telegram directed me to locate certain lands immediately, describing them, — the lands described in ‘ Exhibit A.’ There was probably nothing in the-letter or telegram said about quality or quantity of pine.”
We have been particular to set out the declaration and the plaintiff’s statement of his case very fully, because the-case is quite peculiar’, and we have not been able to take the-same view of the facts that was taken by the court below, and that is insisted upon here. The plaintiff regards the transaction as in the nature of a sale of a chattel, and insists that it is to be governed by the rules regarding the-sale of personalty. The argument in substance is that defendant had a property in his superior information respecting the lands and his skill in judging of their value; that he embodied these in the descriptions which he sold, and that he might and did warrant the truth of these — in which their value consisted — as he might warrant the soundness of a horse or the validity of a title. This we think is a fair statement of the plaintiff’s position, though it is stated in our own language and with brevity.
Had it appeared that the defendant was possessed of this information, and had made up his descriptions previous to the bargain between these parties, and that under such circumstances he assumed to sell his special information, the case would be so far different from the present that possibly different principles might apply. It might then be argued, with some force, that the case resembled the sale of a valuable secret, and that the rules governing the sales of personalty were applicable. But this was no such case. Here the arrangement was for the future acquisition by the defendant of information for the plaintiff’s benefit, and for the report of this to the plaintiff. It is impossible, as we think, to treat it as any thing but an employment. It was-no more a sale of descriptions than is it a sale of opinions-when a lawyer is employed to examine a case and report his views, or a physician to diagnose a case of disease. In one sense there is a sale in all such cases, but the law treats it as an employment and the rendering of services in pursuance thereof.
Nor in any such case can there be any implied warranty of the absolute truth of the description given. Whoever bargains to render services for another undertakes for good faith and integrity, but he does not agree that he will commit no errors. For negligence, bad faith or dishonesty he would be liable to his employer; but if he is guilty of neither of these, the master or employer must submit to such incidental losses as may occur in the course of the employment, because these are incident to all avocations, and no one, by any implication of law, ever undertakes to protect another against them. A positive affirmation of the quality of lands as of one’s personal knowledge when he has no knowledge on the subject, whereby his employer is misled and injured, should certainly render the person making it liable, either on the ground of bad faith or of negligence; but it could not be treated as a warranty of the quality of information sold.
We think also that the court erred in its view regarding the proper rule of damages. The defendant was to supply information upon which the plaintiff proposed to purchase lands. The information embraced the amount and quality of valuable timber, the nature of the soil, etc. If the plaintiff was induced to purchase lands on representations which proved to be untrue, the measure of his loss, as it seems to us, would be perfectly plain, and would be reached by an answer to the following question: How much less is the land worth as it is, than it would have been if its condition and quality had been as represented? This is the only safe and only reasonable rule: to permit the damage to be measured by the stumpage of timber would be to introduce speculative and uncertain questions, and lead to great injustice. It can seldom or never be affirmed that the market value of a piece of land, worthless except for its timber, is equal to the aggregate of estimated stumpage value of the individual trees growing upon it. But if timber lands may be judged in this way, other lands may be estimated by computing the value of the several constituents of value separately and aggregating the whole: we may say, a thousand timber trees upon it are worth so much, a hill of gravel so much, a deposit of valuable clay so much, and when these are all removed the land is still worth so much for agricultural purposes; consequently, as it is, it is worth the aggregate of all these sums. But such an estimate of value is unfair and misleading, and it takes us away from the exact question, which is, what is the market value of the land as it is? Witnesses may of course take everything which goes to make up value into account, but in their estimate they must give their opinion of the market value of the whole, and not of its several parts.
The judgment must be reversed, with costs, and a new trial ordered.
The other Justices concurred. | [
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Marston, J.
It appeared in this case that George H. Strickland in his lifetime was seized and possessed of certain lands in Ingham county, which he had purchased from one John Pierce; that Strickland after the death of John Pierce, being about to sell this land, made an examination of the records in the register’s office and there discovered the record of a mortgage purporting to have been given by said John Pierce to 'William Pierce; that Strickland then sent parties to William Pierce to ascertain whether he, William, claimed to have a mortgage upon his, Strickland’s, farm, and in reply to such inquiries was informed that he did have, that it had been running a good while and that he then wanted his pay. Certain negotiations took place between the parties which resulted in an agreement that Strickland should convey to William Pierce twelve and one-half acres from off the north end of his farm and that in consideration thereof William Pierce would discharge this mortgage. In pursuance of this agreement a conveyance was made by Strickland of the twelve and one-half acres to the defendants in this case, sons of William Pierce, at the request of the latter, and the mortgage was then discharged of record. About six weeks after this conveyance and discharge was made the original mortgage was found among the papers of John Pierce, and upon it was an assignment thereof by the mortgagee to one F. M.- Cowles, and also a discharge of the mortgage by Cowles. Upon making this discovery Strickland caused William Pierce to be arrested for the part he had taken in obtaining the con veyance, but this for some reason fell through. Some short time after this George Strickland died, plaintiff was appointed his administratrix, and brought an action of assumpsit against these defendants, grantees in the deed, to recover the consideration price of the land.
The defendants insist that the plaintiff cannot waive the tort and sue in assumpsit for the value of the land; that where personal property has been tortiously taken and sold the owner thereof may waive the tort and sue in assumpsit, but that this rule does not apply in case of real estate and that even if it did, the sales made by defendants of this land were several and not joint and that a joint action could not therefore be maintained against them for the price received by them for the land.
Defendants misconceive the real ground upon which this-action is brought and sought to be maintained. The land was conveyed by George Strickland to defendants under a-mutual express promise in consideration that a certain mortgage, which he then supposed to be a valid outstanding and unsatisfied mortgage against his lands, should be discharged. This was the consideration, and the only one, for the conveyance, and it failed in toto in consequence of the previous, assignment and discharge thereof by the assignee which must have been known by William Pierce, the father of these defendants, with whom the agreement was made, but. which was at that time unknown to Strickland. The consideration then having thus totally failed, the law raises an implied promise in favor of the grantor and against the. grantees that they will pay the amount of the consideration which had actually been agreed upon. Had the indebtedness which this mortgage was given to secure not been paid, William Pierce, had he not assigned it, could have collected the amount thereof. An agreement to discharge the mortgage and a discharge in pursuance thereof, would, under the agreement, release and discharge Strickland from payment of the amount thereof in order to protect his property. Under the circumstances, the agreement was to pay Strickland for the land conveyed, the amount he supposed to be due upon this mortgage, but that instead of paying him in. money, the mortgage upon his property should be discharged, which as between the parties amounted to the same thing. Had the agreement been to pay a certain money consideration and payment had been made in forged bank bills, clearly this would not have prevented Strickland •from afterwards recovering in an action of • assumpsit the real consideration agreed upon, and the fact that the grantees represented the bills to be good and genuine while in fact they knew the contrary, would not, we think, avail them as • a defense. The principle in this case is the same. The amount supposed to be due upon the mortgage at the date of the conveyance was the real consideration agreed upon and constitutes in this case the proper measure of damages. Canada v. Canada, 6 Cush., 15; Bowen v. Bell, 20 Johns., 338; Wilkinson v. Scott, 17 Mass., 249; Ascutney Bank v. McKOrmsby, 28 Vt., 721.
The judgment must be reversed with costs and a new ■trial ordered.
'The other Justices concurred. | [
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Marston, J.
Complainant commenced proceedings in the circuit court for the county of Saginaw in chancery for the foreclosure of a mortgage dated March 9th, 1872, given by defendants to secure payment of their promissory notes of even date therewith.
Defendants in their answer admit the giving of the notes ■ and mortgage, — which were given for a part of the purchase price of the lands described in the mortgage. And as a defense they set up that at the time they purchased the land, complainant falsely and fraudulently represented to them and claimed that he was the owner in fee simple of the land conveyed by him to them; that it was free from all encumbrances and that his title thereto was perfect. That relying upon such representations they purchased the land, gave said notes and mortgage to complainant and received from him his warranty deed therefor which contained the usual covenants of seizin and against incumbrances. They then alleged that the representations were false; that he had no title to the land and never did have, and that the lands had been sold prior to 1859 by the State for delinquent taxes, and that one of the parties who after- wards claimed title thereto tinder this tax deed had mortgaged the lands for $50. They also allege that they expended considerable money in obtaining the original title to said lands from one James M. Stoddard, and they claim that complainant should not be permitted to enforce payment of said notes until he should make good his representations and perfect their title to the lands, and that the amount they haye expended in attempting to perfect their title, as well as all damages they have sustained because of a breach of the covenants of the deed should be deducted from the amount of the mortgage debt.
Defendants shortly after purchasing the land entered into possession thereof and still hold possession of the same.
The charge of false representations made by complainant at the time of the purchase is not sustained. We are not satisfied that any representations such as the law could notice, were made, or if any such were made, that they were not true. The apparent defect in complainant’s title at the time he sold to defendants, was caused by a failure to record a deed executed February 21st, 1857, by Janies M. Stoddard and wife to Martin P. Crompton, through whom complainant claimed title. This however did not divest him of his title to the lands. A person may have an undoubted title to lands although one or more of the conveyances through and by which he acquired his title have not been recorded. It does not appear that any claim has been made by any person against these defendants or those through whom they claim title, under the sale for delinquent taxes for 1856, and after such a lapse of time and no claim made, we think these defendants have no right, so long as they remain in the peaceable possession of the premises, to set up such a conveyance as a defense in this case. If a claim, such as is made in this case, can be set up as a defense upon the foreclosure of a mortgage, or as an equitable set-off, it should not only be satisfactorily proven but the amount to be deducted should be certain. If there was a valid subsisting mortgage sought to be enforced against the promises, the amount thereof might, perhaps, in a case of this kind, be deducted from the amount of the complain ant’s claim, in order to prevent circuity of action, rather than compel the defendants to resort to their remedy at law upon the covenants in their deed, but such is not the present case. Defendants claim the right “to detain the purchase money to the extent to which they would be entitled to recover damages upon the covenants,” and that they are not obliged to restore possession to their vendors before making such a defense. This cannot be done in the present case. If they are entitled to any such damages they must resort to the covenants contained in their deed.
The decree must be affirmed, with costs.
The other Justices concurred. | [
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Cooley, C. J.
The suit in the court below was begun by attachment. The affidavit for attachment was made by an agent for the plaintiffs, who made oath that “he is informed and believes to be true, and charges the same to be true, that the defendant Julius Kegel has assigned, disposed of or concealed, or is about to assign, dispose of or conceal his property, with intent to defraud his creditors.”
This affidavit is fatally defective because in the alternative. It should show the existence of either one cause or the other; which this affidavit does not. It is in another particular not in compliance with the statute. The statute, Comp. L., § 6398, requires that the affidavit shall show the affiant “knows or has good reason to believe” that the alleged cause for an attachment exists. That is not the showing here, and we are not prepared to say that the showing made is the equivalent of that which the statute requires. But as in the other particular the defect is apparent, any further error is immaterial, and need not be considered.
The default on which judgment was taken appears to have been entered twenty-one days after the return day of' the writ, — the declaration having been filed on the return day. This was premature. Circuit Court Bule 16. It is said, however, that the default was justified by rules adopted by the court below for its own practice under the statute by which the court was created. No rule on the subject has been approved by this court, and we think under the amendatory act of 1875 — General Laws, p. 6 — such rules would be inoperative until approved.
The judgment must be reversed with costs of both courts and the proceedings quashed.
The other Justices concurred. | [
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Graves, J.
Complainants being judgment creditors of the defendant James Armstrong levied on a farm of two hundred and forty acres he had owned, but of which he and his wife, the defendant Elizabeth, had just given a deed to his son the defendant Andrew.
This bill was then filed in aid of the execution, the complainants alleging that the deed to Andrew was in fraud of creditors. The defendants answered jointly and denied the fraud and set out a statement of the transaction and claimed that Andrew was a fair purchaser in good faith and for a valuable consideration. Testimony was taken and the circuit judge on final hearing decreed in favor of complainants and the defendant Andrew appealed.
On the 2Sth of February, 1873, the defendant James, as the answer states, was eiglity-five years old and very infirm and incapable of managing his affairs. He was indebted to complainants and also to other parties besides his son Andrew in the sum, as the answer further states, of about two thousand dollars. The farm in question was then owned by him but it was mortgaged for other debts for about $3,000. He was owner at the same time of personal property which the answer admits to have been worth $300. All the property real and personal was at that time formally transferred to his son, the. defendant Andrew, the deed for the farm expressing a consideration of $2,000 and purporting to convey the entire premises for that sum subject to the incumbrance by mortgage. No writings except the deed were executed and no securities were given to the old gentleman or his wife. Whatever were the undertakings of Andrew they were verbal. The old gentleman, the judgment debtor, was left without a dollar. The farm at this time as the proof shows was worth more than $14,000 and the answer admits it was valued in the trade at $12,000.
The answer professes to explain the transaction and show that it was definite and reasonable and distinguished by good faith: and both father and son in their statements as witnesses in their own behalf strenuously endeavor to clear it up and uphold it. The exposition by the answer is wordy enough, but very vague, and among its defects will be noticed the want of explanation concerning the amount and real particulars of consideration claimed to have proceeded from Andrew. Upon this subject there is a great deal of talk, but nothing satisfactory as to the extent of consideration or the ingredients of it, and the case suggests that this darkness and uncertainty are due to the real state of things and not by any means to inadvertence on the part of counsel. The statements upon the stand are especially infirm. That of the old gentleman differs from the case made in the answer and is in conflict with Andrew’s evidence in many important points, and Andrew’s testimony is very much at fault. It departs widely from the answer and so far as it seems to establish or elucidate any thing complete and tangible it points to an arrangement quite different from that foreshadowed there. In some important respects it is contradictory and in others altogether ambiguous and uncertain. No one can determine from it the real bargain it aims to establish. To distinguish and explain all the infirmities alluded to would require the reproduction of a large share of the record, and this is not needful.
One or two matters may be mentioned. The defendant Andrew contends that the expressed consideration is quite untrue and very much too small, and that in fact there was a large amount of consideration which consisted of debts his father owed him, and he at first testified that among these ■debts was the large item of $400 for his services in clearing twenty acres of land. His counsel accepting this representation as correct, has placed the item in the catalogue in his brief of the matters claimed to make up the purchase price of the farm, and has put special stress upon it. The record shows however that on cross-examination Andrew finally admitted that this $400 was fully paid him by his father long before the' deed was given. There is also some confusion in regard to claims suggested on account of payments for store goods. In one place there appears to be an effort to cause the impression that on the occasion of working the farm on equal shares Andrew became a creditor of his father to a considerable amount for sums paid at stores and groceries for family supplies, and that the demands thus caused were accessory in some way to the consideration and entitled to weigh in favor of the validity of the transfer. It is noteworthy, however, that before the examination was finished it was drawn out that the store and grocery bills were required by the agreement for letting to be paid out of the undivided products and not by the .old gentleman: and there are strong intimations certainly that Andrew handled every dollar of proceeds of the products without accounting to any body.
In fine, the versions given by the immediate parties are so full of inconsistencies and so chaotic and uncertain that no one can derive therefrom any clear notion of the main elements of the transaction as the defense undertake to represent it. It would be difficult to overlook such con-, siderations.
When a transaction of this class is legitimate, when it is actual and straightforward, when it is free from 'all sinister doings and all deceptive appearances, there can be no difficulty in describing it clearly and precisely in pleading or in explaining it distinctly and lucidly on the stand. The perplexity begins when it is attempted to make a good case out of a bad one. But it is unnecessary to dwell upon the cause under this view of it.
It is admitted that $5,000 of the consideration was a promise to provide support for the old gentleman and his wife during their lives, and that $3,000 more was a further promise to expend certain sums in gifts in his behalf to his children and grand children. It is likewise admitted that the arrangement left him without a cent of property to meet complainant’s debt, and the case will not justify belief that either party to it was ignorant of the existence of that debt. There can be no question concerning Andrew’s connection with the business. His vigilance in regard to his own interest, the age and incapacity of the old gentleman and other circumstances convey the impression that the whole matter was arranged and controlled by him. At all events his will and his intelligence concurred, and it would reflect upon his good sense to say he did not comprehend the force or contemplate the necessary tendency of the scheme. And speaking plainly, that scheme had for its chief object what it distinctly involved, namely, the impounding away from creditors a' large share and all that remained of the old gentleman’s property as a provision for himself and wife and his children and grand children, and it naturally presupposed that complainants would be hindered and delayed by it in collecting their demand and might be wholly defeated. Fonb., B. 1, ch. 4, § 12. Whatever gentlemen may suppose ought to be the rule, it is certain the law cannot be reconciled with such dealing. Indeed nothing can be clearer than complainant’s right to claim an avoidance on account of the withdrawal of the property to make voluntary provision for the debtor and his family. The case is too clear to excuse particular discussion. It is sufficient to refer to a few cases. Cornish v. Clark, L. R., 14 Eq. Cases, 184: 3 Eng., 695; Robinson v. Stewart, 6 Seld., 189; Planck v. Schermerhorn, 3 Barb. Ch. Rep., 644; Goodrich v. Downs, 6 Hill, 438; Barney v. Griffin, 2 Comst., 365; Collomb v. Caldwell, 16 N. Y., 484; Curtis v. Leavitt, 15 N. Y., 9, 116, 132. Harris v. Sumner, 2 Pick., 129; French v. French, 39 E. L. & E., 85; Walcott v. Almy, 6 McLean, 23; Doak v. Runyan, 33 Mich., 75; Towle v. Hoit, 14 N. H., 61; Lukins v. Aird, 6 Wall, 78; Kehr v. Smith, 20 Id., 31; Fitzer v. Fitzer, 2 Atk., 511; Taylor v. Jones, Id., 600; Twyne’s Case, 3 Co., 80 b.
The reciting part of the decree contains some few useless expressions which are perhaps hardly appropriate. Omitting these, the decree should be affirmed, with costs.
The other Justices concurred. | [
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Campbell, J.
A bill was filed to obtain the conveyance of certain lands which defendant held under an arrangement by way of security, and which he had agreed in writing to reconvey to one Florent Schmidt, who assigned to complainant. A decree was made below in favor of complainant, and defendant appeals. Certain questions of practice are presented, which require preliminary attention.
The case was first heard on pleadings and proofs in June 1876. At or after this hearing the court allowed complainant to amend his bill, which he did by adding allegations explanatory of a transaction referred to in the answer, concerning a transfer from one Kose Young to Shabel, which the amendments showed to have been obtained by Schmidt for the purpose of confirming the title in controversy. Leave was given to defendant to answer the amendments if he chose, but not requiring it. The bill had waived an answer under oath. Leave was also given to take proofs upon any new issue should one be joined. Instead of answering, defendant demurred to the amended bill, and his demurrer was overruled with leave to answer the amendments in twenty days. No answer being put in, the case was heard on pleadings and proofs at the January Term, 1877. The notice for hearing, which was not for the first day in Term, was given on the 8th of January and did not mention any time except the Term. It was heard on the 17th of February.
The demurrer was a nullity, as not confined to the amendments, and as not purporting to cover the whole bill, while it pointed out no part of it as demurrable which was separable from the rest. Moreover the original answer had covered the particular defense set up. But no harm was done by overruling it.
So far as the amendment is concerned it comes directly within the familiar practice approved by Lord Bedesdale and very commonly resorted to, of allowing amendments oh the hearing even without further testimony, to meet matters set •up in the answer. See Mitf. Pl. (Tyler’s Edition), 419; 1 Dan. Ch. Pr., 480. It is analogous to the amendments allowed on trials at law, where omissions are allowed to be remedied with or without a continuance, as justice may require. A similar question arose in Slater v. Breese, 36 Mich., 77.
Defendant’s counsel seem to have labored under a misapprehension in regard to the effect of amendments in altering the state of the record, and testimony already in. The •original and amended bill constitute one record, and “an answer to an amended bill constitutes, together with the answer to the original bill, but one record, as much as if it had been engrossed on the same parchment.” 2 Dan. Ch. Pr., 840. Lord Bedesdale declares that this is so completely-the case that a repetition in an answer to an amended bill, of matters set out in the answer to the original bill, is impertinent, unless so introduced as to substantially vary the defense. Mitf. Pl., 409.
The ease, on the expiration of the time to answer the amendments, was ready for hearing on the record as it stood, and could be properly noticed.
It is claimed, however, that the notice given was invalid, and that the case was not properly heard, and the decree should be reversed for that reason. Jenny v. O' Flynn, 5 Mich., 215, is relied on as maintaining this doctrine.
It was held in that case that a decree should be reversed where by reason of there having been no notice of hearing the party had been deprived of substantial rights which he might have saved if present. But in the subsequent case of Kellogg v. Putnam, 11 Mich., 344, it was also held that hearing without notice would not entitle a party to reversal, where no right was destroyed which would have placed the party at a greater advantage in the appellate court; and such we think is the proper rule. Where the case can be heard on appeal on the only facts and documents which could under any circumstances have been relied on below, the appellant is fully protected; and the discretion over costs will enable the court to rectify any grievance that can fairly be asserted out of the omission.
The only omission in the notice of hearing was that it mentioned no day. Under the rules cases noticed for any time after the opening of term are placed at the foot of the-docket; and while such notices are irregular and would not authorize an ex parte hearing, the irregularity may be waived,, like any other matter of practice.
After the hearing below, a motion was made to open it based on no affidavit of , merits or of surprise, and setting up no ground beyond the bare fact that no written notice had been served except the one referred to. This notice-having been served on the 8th of January, and the term having continued six weeks longer, a new notice could have, been given, had any motion been made to strike the cause-from the docket. The objection was purely technical.
In opposition to this motion it was shown by affidavit that defendant’s solicitor knew the cause was on the docket,, and had requested complainant’s counsel to let him know when it would be called on. That on the 17th of February notice was sent to him, and that he sent his files and brief to the opposing counsel, with a written request to call Judge Holmes’ attention to the fact that the case would be called on, which was complied with, but Judge Holmes declined to intermeddle with the hearing because he had only been employed on the hearing of the demurrer and was not familiar with the facts. The hearing proceeded, and was confined to the single new matter of the amendment and defendant’s brief was submitted, and the defendant was informed of the decree immediately and within three days after its; announcement.
Upon this showing the court below refused to disturb the decree. We do not think these occurrences deprived. appellant of any thing he could hare done to change the record as now presented. The case is properly before ns on the merits.
On the principal issue there is no defense whatever. But upon one portion of the case a claim is set up which requires some consideration, and renders some statement of facts desirable.
On the 4th of April 1872, Henry S. Raymond was the owner in fee of three quarter sections of land in Bay county, being the west half of the northwest quarter, and the northwest quarter of the southwest quarter of section 29, in town 13 north of range 6 east, and contracted to sell the same to John Young for $1,200, and Young took possession and made some improvements.
On the 13th of September 1873, Young assigned this contract to Florent Schmidt, who paid therefor $980 to Young, and $569.97 to Raymond, and assumed the remaining sum still coming to Raymond of $400, making the whole sum payable and paid in money $1,949.97.
On the same day Schmidt transferred to Young about two acres on the northwest quarter of the northwest quarter of section 29, being a small detached parcel separated from the rest by a highway, and on the 14th of October thereafter assigned to Rose Young, his wife, the northwest quarter of the southwest quarter.
It appears somewhat vaguely, that Schmidt not far from this time married a daughter of Young, and that his wife soon separated from him, and family difficulties arose which impressed him with a belief that he would be cheated out of his property. He entered into negotiations with Shabel to dispose of the property to him and gét two years’ time to redeem it, and in case he could not do so, then Shabel was to pay him an additional sum of $800. Accordingly Shabel advanced $400 to pay Raymond, and Schmidt procured a warranty deed in fee simple from Raymond to Shabel, January 13, 1874, and Shabel gave him an agreement signed by both parties, providing that" if Schmidt within two years should pay the $400 with ten per cent interest, and j>ay Shabel for any improvements he might make on the three forty-acre lots, Shabel would convey the eighty acres in the northwest quarter by warranty deed, and the other forty by the title ho then received. And in case Schmidt did not redeem, Shabel agreed to pay $800 in two years from -date.
Immediately after this, Young quit-claimed the two-acre tract to his wife Rose Young, who not long afterwards (but .just when does not appear), commenced a suit against Shabel and Schmidt, the only evidence of which is found in the •stipulation of counsel that it was brought “to enforce a homestead right of Rose Young upon the northwest quarter -of the northwest quarter of section 29, as well as to enforce •a contract for the conveyance of the northwest quarter of the southwest quarter of section 29.”
Schmidt, in order to perfect the title in Shabel, settled with Mrs. Young, and procured her to quit-claim whatever interest •she had in the whole 120 acres to Shabel, on the 21st of April 1874. In making this arrangement he paid Mrs. Young out of his own means all that he gave her, and borrowed $125 of Shabel for settling the costs and expenses. This loan is sworn to have been an independent transaction, and to have, been paid in part by work, leaving some balance, but how much is not shown, unpaid.
Schmidt subsequently transferred his rights to complainant, who in November 1875 made, a tender to Shabel of $627.17 which he refused to accept, but did not explain how much he demanded. This sum included besides interest, $72.75 for improvements and the same amount for ditching, and $5 for removing a tree top. The court below found this the correct amount, but was not satisfied the tender was so made as to stop interest, and decreed a con•veyance on payment of that amount with interest, amounting in all to $699.84. By some blunder, the decree was made to cover the entire northwest quarter of section 29, instead of the west half of that quarter. The appeal is from the entire decree. The controversy, however, is chiefly ■confined to the forty acres on the southwest quarter in which Rose Young claimed an equity. So far as the computation of money is concerned, we think it substantially correct, and large enough.
The only ground for claiming the omission of this forty-acre lot, is that under our statute concerning resulting trusts, Schmidt, by allowing Eose Young to convey to Shabel her interest, precludes himself from setting up any resulting trust in his favor, arising out of his payment of the purchase money.
We do not think the doctrine applicable to the case.. Shabel already held the only legal title, and had contracted to convey it to Schmidt. The interest of Mrs. Young, whatever it was, purported to be a mere right in equity to> the confirmation by a deed from the legal owner of an equitable interest, the whole consideration of which was; not paid to Mr. Eaymond when she succeeded to it. Her claims appear to have been of a mixed character, including some homestead interest, which, so far as the testimony shows, was unfounded. And it may be inferred that there were other questions in dispute. The effect of a quit-claim of an equity, real or supposed, to the owner of the legal estate, is not the creation of a title, but the removal of an encumbrance, and both Schmidt and Shabel so regarded it. Shabel states this explicitly in his testimony. Equity will not permit an interest which is only called a title by virtue of equitable analogies, and which in law is a mere right of action, to be turned to fraudulent purposes by the aid of its own jurisdiction. It has never been held that as against, the legal owner of land equities can only be extinguished by conveyance under the statute of frauds. Specific performance will be refused in all cases where it is clearly inequitable to grant it; and Mrs. Young’s quit-claim, which covered all three of the parcels, in some of which she never set up any equities, while it was a convenient form of release, was nothing more than a release of a right resting in contract, which would not have been recognized as a perfect title in any court.
The decree must be corrected by leaving out the parcel erroneously inserted, and in consideration of all the circum stances of the hearing, although complainant prevails on all the matters litigated, and was desirous and willing to release fro’m the decree the parcel referred to, which the record itself furnished the means of correcting, we are • not disposed to grant him costs of this court. He was entitled to costs below, but as the circumstances of the hearing were peculiar, we shall affirm the decree with that omission, and leave the parties to pay their own costs in this court.
Cooley, C. J. I concur in the result.
The other Justices concurred. | [
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Cooley, C. J.
Bateman brought suit against Thorp, claiming to recover for the board and support of an. infant daughter of Thorp, who had lived in his family. The case made by Bateman was substantially this: that his wife was the grandmother of Thorp’s daughter, and the latter was taken into Bateman’s family when she was a very young child, where she remained and was supported by Bateman for several years under an agreement that she should live' there until she became of legal age; that Mrs. Bateman having died, Thorp came and took his daughter away against the will of Bateman, and without making any compensation, thereby depriving the latter of the benefit he might have derived from the labor of the daughter after-wards. The action was grounded ou an implied assumpsit, and the plaintiff in the court below was allowed to recover.
It can hardly be pretended that in the absence of an express arrangement, Thorp would have been liable to pay for his daughter’s board and support. The presumption always is when a child is thus taken into a family, that neither support nor services are expected to be compensated, except as the one compensates the other; in other words, that the child comes in as a member of the family, and for the time being occupies substantially the same position as would a member of the family by nature.
This being the rule, the present action cannot be maintained. The fact that there had been an express understanding which was violated, is of no importance in this case. If any reliance is placed upon the breach of that, suit should have been brought upon it: its existence and the breach thereof cannot be the foundation for an implied assumpsit, of a wholly different character. If it was never understood betweeh the parties that Thorp was to pay for the support •of the daughter in Bateman’s family, the fact is conclusive in this suit. | [
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Campbell, J.
Hollenbeck sued and recovered against Wells in trespass quare clausum fregit for the destruction of growing wheat in a field alleged as in his possession, and averring the wheat to be his property.
In order to make out his case he testified in his own behalf to the destruction of a part of the crop by sheep which belonged to Wells, and which strayed upon the premises. He then gave evidence as follows: That he took the lands from defendant Wells, who was the owner, to work on shares, under a verbal contract, and said further, “I was to furnish half of seéd, and do all the work, and have half the crop; and defendant was to have half. I was to put in seventy-five or eighty acres of wheat in the fall of 1875. I was to do the harvesting and threshing, and give him one-half of the wheat. The crop was put in by me in fall of 1875, on shares, under the verbal agreement. There were several fields put into wheat. One was called the north field, of about ten acres. I gave up to defendant possession of the farm, April 1st, 1876, except the fields that were into wheat, but had the right to enter and harvest the grain, under my agreement.”
Under this arrangement for raising a single crop, the possession was either that of Wells alone, or of the two as tenants in common. Bradish v. Schenck, 8 J. R., 151; Walker v. Fitts, 24 Pick., 191; Caswell v. Districh, 15 Wend., 879. The injury was neither an ouster nor a destruction of the entirety, but damage to a small portion of the whole crop, and only a part of the wheat in one or two fields.
No authority has been cited which will justify trespass by one co-tenant against another for any such partial damage to the common property. It is an attempt to sue a man for trespass committed against himself. No such suit is maintainable on any principle.
As this objection is fatal to the action the other points are not material.
The judgment must be reversed, and a new trial granted.
Cooley, C. J., and Grates, J., concurred.
Marston, J., did not sit in this case. | [
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