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Marston, J.
The essential facts in these cases being alike, they were heard together, and may be disposed of in the same manner. The respondents were each convicted in the recorder’s court of the city of Detroit of an offense punishable by imprisonment in the State prison or in the county jail, and were-by the recorder, sentenced to the Detroit House of Correction.
Without attempting to review all the legislation pertaining or referring to the Detroit House of Correction which may be found in the charter of the city of Detroit, we are of opinion that section 8160 of the Compiled Laws clearly authorizes the recorder to sentence such convicts to the House of Correction, and that no contract is necessary such as is required by section 8155 of Compiled Laws. As to the county of Wayne, the House of Correction is made the place of imprisonment for county jail offenses, and must be treated to that extent as if it were the county jail. Such was the ruling of this court in Elliott v. The People, 13 Mich., 365.
We discover no error in the record, and the judgment in each case must be affirmed.
The other Justices concurred. | [
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Marston, J.
Plaintiffs brought an action upon the common counts to recover for services rendered as attorneys in several different causes.
In considering the several questions raised in this case, we will examine them in their order as arranged in the brief of defendant’s counsel.
I. The first, third, sixth and seventh exceptions depend upon the same question of law, and are fairly stated by defendant’s counsel in the following request, which they desired the court to give the jury but which was refused:
“When an attorney is employed to argue a case in the supreme court, the value of his services in the absence of any express contract, is the amount of labor performed in the case, without any reference to the value of the property in litigation.”
In support of this proposition counsel insist that in the Absence of a special contract, one day’s work in an impor tant cause is worth no more than the same services in a suit of less magnitude; that as well might any laborer or mechanic charge extra wages per day when fortunate enough to secure a large job; that where work requires a different kind of skill or workmanship, then, of course, such charge should be made as the skill required would command, but-the same skill and workmanship upon an important, piece of work, would bring no more per day than when it was-applied to a lesser job; and that the same knowledge of practice and rules of law are required of the attorney or solicitor in one case as the other.
We cannot concur in this reasoning, the effect of which, if adopted, would be to establish a scale of compensation for professional services, when the amount to be paid was not specially agreed upon, dependent upon the skill and professional standing of the person employed, and the actual time by him devoted to the work, but without any reference to the real nature of the questions he was called upon to investigate, or the amount in controversy, and the increased care and responsibility arising therefrom.
Whenever an attorney or solicitor is retained in a cause, it becomes his implied duty to use and exercise reasonable skill, care, discretion and judgment in the conduct and management thereof. It would be very difficult to lay down any definite rule or principle, applicable alike to all cases, as to the care and skill required. Each case must be governed by its own peculiar facts and circumstances, and the amount in controversy must in every case play a very important part in the determination of this question. The lapidary who cuts, polishes and engraves a precious stone of exceedingly great value, must exercise much more care, skill and judgment than would be required in the performance of like work upon one of but ordinary or little value, and he would be entitled to demand and receive a correspondingly increased compensation in the former case, than he would in the latter, although the time spent by him in each case was the same. The common carrier charges much more for carrying jewels, gold, bank-bills or valuable papers, than for more bulky and less valuable things, although the latter may he vastly more heavy, cumbersome and in fact much more expensive to transport.
The right to increased compensation in these casos and in many others that might be mentioned, is universally recognized. No one questions such right, yet what causes the difference in compensation? Nothing but the increased responsibility dependent upon the value of the article, in the case of the carrier; in the other case, the samo fact, coupled, perhaps, with the skill of the person who performs the work.
The artist who transfers to the canvas the living likeness, destined perhaps to become immortal as a work of art, is entitled to a vastly higher compensation than he would be for spending the same time in painting buildings, even although the quantum of work done iu the latter case might be estimated by the square yard. The recompense to be paid the sculptor who conceives, molds and produces his masterpieces of form cannot be measured and fixed by a standard based alone upon the time he spent in their production. Nor in cases where they were merely executed under his direction, could his reward be fixed upon the same standard as of those who performed the manual labor under his personal supervision. The productions of the composer, the poet and the author canuot be valued by the time apparently spent in their preparation. They are formed of a combination of ideas which may have cost their authors years of application to complete.
The lawyer, who in order to excel in his profession, has devoted years to preliminary studies and has spent much labor and money to thoroughly fit him for his calling, so that he might be able to act as an advocate in court, or as a counsellor to guide and direct others, — to furnish them from his vast storehouse of knowledge, ripened and perfected from long experience, with such ideas and suggestions which, when carried out and followed up, would lead to success,— how shall his services be estimated?
It is very evident that the responsibility, the care, anxiety and mental labor is much greater in a case where the amount in controversy is large than where it is insignificant, although perhaps the same questions might be raised, in oacli case, or the more difficult questions arise in the case where the amount was of but slight consequence. Nor is this responsibility, care and mental labor dependent alone upon the number of hours or days which may be given to the preparation and trial or argument of a case. This responsibility and mental anxiety is not so imaginative and shadowy that it should not be considered in arriving at a proper compensation to be allowed in fixing the value of the services rendered. Nor is the number of days which.may be given to the preparation of a case alone, even if the exact time could be ascertained in any given case, a governing test. Twelve hours spent in the study of a novel will not usually be as exhausting as the same time devoted to the study of Coke upon Littleton would be, even although a great deal more ground might be gone over in the former, than would in all probability be in the latter case.
We can see no analogy between this kind or class of work and that performed by the ordinary laborer, nor can the creditable fact, that attorneys generally, where the amount in controversy is small, or their client is pool’, charge and receive much less than their services may in fact have been worth, prevent their recovering a reasonable compensation in proportion to the magnitude of the interests committed to their care. In fact in all cases, the professional skill and standing of the person employed, his experience, the nature of the controversy, both in regard to the amount involved and the character and nature of the questions raised in the case, as well as the result, must all be taken into consideration in fixing the value of the services rendered. Vilas v. Downer, 21 Vt., 419; Kentucky Bank v. Combs, 7 Pa. St., 543; Stanton et al. v. Embrey, Adm’r, 93 U. S. (3 Otto), 557.
II. It appeared that a portion of the services performed was in the preparation and argument of a certain cause in the Supreme Court wherein Charles W. Taylor was complainant and Francis O. Boardinan was one of the defendants. Mr. Taylor was called as a witness and testified as to the person whom be employed to prepare the brief and argue the cause on his behalf, and was then asked what he paid' his attorney for such services. This was objected to and the objection sustained. The amount charged by an attorney in a certain case, cannot fairly be considered' as ■evidence competent to fix the value of the services rendered by the attorney for the other parties in the same case. The amount paid in a particular ease cannot be considered or accepted as the proper amount in all like cases. It is not like the sale of certain commodities, where the price at which an article sold may have a tendency to fix or show the market price. There may be peculiar circumstances or elements which assisted in fixing the amount paid in one case, which would not exist in another, or even between counsel of equal standing in the same ease, both in the character of the work, and in the amount and kind of preparation required. The question is what were plaintiff’s services reasonably worth, taking into consideration the facts and circumstances already adverted to, and this must be determined from the prices usually, charged for similar services.
III. We cannot say that there was a total want of evidence, or so slight that it should not have been submited to a jury, tending to show that Ferris was employed by plaintiffs to re-argue the case in the Supreme Court. The refusal to charge as requested upon this point was therefore correct.
IV. It is next claimed that plaintiffs cannot charge and recover a retainer without a special contract, and that the right to receive the same must be declared upon specially. There is no force in this position. Retainers are uniformly .and universally charged, and the .same may be recovered under the common counts. If any thing farther or more definite is required, it is furnished by the bill of particulars.
V. The eighth and eleventh exceptions are based upon the same principle, viz.: the right of a party to the personal services of the attorney he employs in the argument of a cause. This is unquestionably correct. The attorney who has been retained to argne a canse must personally perform that duty, and lie cannot entrust this duty to another, or, as said, let the case out on shares. Yet this even must be carefully applied. The retainer of one member of a firm is a retainer of all the members, and unless otherwise stipulated the cause might be conducted and argued by any one of them. So under the retainer of an attorney or of a firm of attorneys, much of the business necessarily to be done in the preparation of a cause, may be done by them or any one in their employ and under their direction, and it will be found extremely difficult to draw the line and say just what must be performed by the person or firm retained and what may be done under their direction by persons in their employ. From necessity a firm engaged in active practice and doing a large business must permit much of the work to be done by others, under their direction. A person or firm is very often retained for the purpose of securing their counsel and assistance, which usually is the most important part, and without any expectation that the services to be performed will extend beyond this. And where the client stands by and permits work to be done, or an argument to be made on his behalf by a person in the service of, and under the direction of the attorneys he retained, we think it may very fairly be assumed from his silence and acquiescence that he consented thereto. We think the charge of the court upon this part of the case was unobjectionable. (See charge below.)
The expression contained in the charge that plaintiffs, in making the charges in their books, undoubtedly charged what they thought their services were worth, when taken in connection with other portions of the charge, could have had no undue influence with the jury. It is not expected that each clause and sentence in a charge shall be correct to an absolute certainty. The charge is to be taken as a whole without any undue weight being given to any portion thereof. We do not say that this remark as made was objectionable, — we content ourselves with saying that in no event, from its surroundings, could it have injured the defendant.
As we discover no error, the judgment must be affirmed, with costs.
The other Justices concurred.
“The claim of tlie plaintiff includes, among other charges, two charges, I believe, — two large ones — for services in the Supreme Court of this State, in the case of Charies W. Taylor v. Boardman and Hood, for which case the hill of particulars claims for retainer of $500,. and for services in preparing and arguing the case, $750. The services are the preparation of the brief and the final argument of the case before the Supreme Court of this State. One of the questions in connection with the claim for services in this suit is, whether the defendant, having engaged the plaintiffs and not Mr. Ferris — whether under that contract Mr. Ferris could perform the work, or any part of it, and if so, if you find that the greater portion of the work was done by Mr. Ferris, whether plaintifl's can recover for such .work in this case. It is true, gentlemen, that a retainer of an attorney is a personal contract. The relation between attorney and client is a confidential relation, and undoubtedly when a man lures a lawyer to conduct for him a cause, he expects and is entitled to the personal attendance of the attorney employed. It does not necessarily follow from that rule that everything which is done in the cause must he done by the hand of that attorney, for if the rule was extended so far as that, then the attorney employed must copy every paper which is copied in the cause, and go about the streets and serve every notice upon the opposite attorney, make every stroke of the pen which is required to be made in the cause, either in the malting up of the pleadings, taking minutes of the testimony, or malting the brief. Any such claim as that, of course, is simply ridiculous. But the client is undoubtedly entitled to the personal services of his attorney at the hearing. Now I have stopped, gentlemen, to state those rules, not because I deem it necessary in this cause to do so, but simply because they have been spoken of, and I believe that such are the correct rules.
“So far as this cause is concerned, gentlemen, it seems to me the act of Mr. Boardman has settled that question. Up to the last moment before Mr. Ferris assumed to argue the cause mentioned in the Supreme Court, Mr. Boardman might have prevented the argument from being made by him. He had the control of it. It was for him to say whether Mr. Ferris should make an argument iu his cause. I do not know whether it appears in evidence that Mr. Ferris was attorney of record or solicitor of record in that cause or not. If he was of record, and the client had reason for not wishing him to make an argument, it was his privilege to have applied to the court for a substitution of solicitors, and the court would undoubtedly have protected him in the last moment, if he had applied to have had it done. As appears by the testimony in the case, he did not do that. Having the power to say whether Mr. Ferris should argue or not, he permitted him to argue the case, and having done so, he is liable for the value of the services thus performed, so that while it is a general rule that the contract between client and attorney is personal, yet I do not believe that it is applicable to this question raised by the defense.
“ In passing upon the question as to how much should he allowed for those services performed by Mr. Ferris, you should allow in favor of the plaintiffs the fair value of the services actually performed, and you should take into consideration all the circumstances in the case as hearing upon that question. The fact that Mr. Ferris did certain things and Mr. Eggleston did not do the same things, and if you consider that the value of the services was less because Mr. Ferris did them under the supervision of Mr. Eggleston than if Mr. Eggleston had done them himself alone entirely, of course that must affect your judgment just so much in amount, for yon are to allow for the actual services performed in the manner in which they were performed.” | [
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Cooley, C. J.
This is a bill in aid of an execution. 'The complainant’s judgment is against John Smith, junior. An execution issued upon it was levied July 30, 1870, on ■certain lands in Calhoun county. The only interest which Smith is shown to have had in these lands was acquired by .a contract for the purchase thereof between himself as purchaser and Joshua and Susan Wright as vendors, bearing •date in November, 1866, and still unperformed by him. .March 1, 1870, Smith sold his interest in this contract to Melvin L. Clute, receiving $250 in land, and agreeing to •assign it on the first day of October following, when the balance of the purchase price, some $572, was paid. April 18, 1870, Smith assigned to his wife all his interest in the •contract between himself and Clute. The sale to Clute and the assignment to Mrs. Smith are thus shown to have preceded the levy, and if they were valid, they divested the execution debtor of any interest in the land whatever. The .■substantial interest in the Wright contract had passed'to Clute, to the extent of the payment made by him, and to-Mrs. Smith to the extent of what still remained to be paid by Clute on his purchase; and Smith merely held the contract in trust for them respectively.
This view is conclusive of the case unless one or both of' these transactions was fraudulent. It is not claimed that the sale to Clute was a fraud, but it is urged that fraud is-shown in the transaction between Smith and his wife, which was entered into by the latter with full knowledge of Smith’s-indebtedness. On that'subject we have evidence which satisfies us that the Clute contract was assigned by Smith to-his wife for a Iona fide indebtedness, the origin of which was a loan of money by her to him, and that the assignment was fair and reasonable. Some circumstances to which our attention is called, and which are supposed to indicate a-fraudulent purpose on the part of Smith and his wife, and. a fraudulent attempt to cover up property from the reach of creditors, do not satisfy us that Mrs. Smith has been, connected with any fraud; still less do they take from her-the right to bargain with her husband for payment of the-amount justly due her.
The decree dismissing the bill must be affirmed with, costs.
Campbell and Graves, JJ., concurred.
Marston, J., did not sit in this case. | [
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Cooley, C. J.
The question in this case is whether the plaintiff has shown in himself, as against the creditors of George R. Congdon, a title to goods which he claims were ’ transferred to him by a general assignment made by Cong-don for the benefit of his creditors.
At the time of the assignment Congdon owned certain real estate liable for the payment of his debts. The assignment did not mention this, and the following is the whole of the granting and descriptive portion of the instrument:
“Now this indenture witnesseth, that the party of the first part, in consideration of the premises and of one dollar to him paid before the sealing and delivery of these presents, the receipt of which is hereby acknowledged, has granted, bargained, sold, assigned, transferred and set over and by these presents does grant, bargain, sell, assign, transfer and set over unto the party of the second part, his heirs, executors, administrators and assigns, all and singular, the'goods, chattels, stock, promissory potes, debts, choses in action, evidences of debt, claims, demands, property and effects of every description belonging to the party of the first part, wherever the same may be situated, to-wit: all the goods, chattels aud property now in the store lately occupied by me in the village of Cedar Springs; also two pair of logging trucks, one lumber wagon, one buggy, one set double harness, the undivided one-fourth of an engine and boiler at Burchville and the books of accounts lately used by me in said store, and the debts due to me contained therein.”
Unless the terms here employed are sufficiently comprehensive to convey the real estate, the circuit judge was right in holding the assignment invalid. Smith v. Mitchell, 12 Mich., 180. We are of opinion that the real estate was not conveyed.
If the general terms employed in the assignment were sufficiently comprehensive to embrace real estate, they would seem to be restrained by the words which followed, and which apparently limited their force to the property particularly specified. There have been numerous decisions which have so held where, after words of grant as general as these, the assignment has proceeded to refer to a schedule attached for a more full and particular description. The construction of such instruments has been that they transferred only what was enumerated in the schedule if one was actually attached; and in Mims v. Armstrong, 31 Md., 87, 95, it seems to have been thought that had the specification followed the words of grant in the instrument, the case would have been still plainer. It would at least, we think, be equally plain. The party grants all his property, to-wit, what he specifies and describes.
This conclusion is strengthened in this case by the fact that the assignment is not witnessed and acknowledged so as to entitle it to record as a conveyance of realty. No doubt the title might pass without these ceremonies; but it could not be fully protected; and it is so much a matter of course that conveyances of lands should be put in proper form for record, that in any doubtful case the omission to do this is entitled to weight. No single clause in such an instrument may be conclusive; we must judge of its intent as a whole. Wye v. Van Husan, 6 Mich., 329. At best the granting part of the instrument leaves us in doubt regarding any purpose to convey lands, and other parts do not remove the doubt, but strengthen and confirm it.
The judgment is reversed and judgment rendered for the defendant for the value of the goods as appearing by the record, with interest and costs of all the courts.
The other Justices concurred. | [
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Cooley, C. J.
In this suit the plaintiff seeks to recover the contract price for putting lightning rods on defendant’s farm buildings. It is not disputed that he put on the rods as claimed, but defendant testified that he agreed to put them on for forty dollars, while plaintiff produces an order or agreement signed by defendant, according to which they were to be put on at prices given in detail for rod, points, braces, vanes and balls or stars, according to which the cost would figure up more than four hundred dollars. The plaintiff insisted on recovering according to the terms of this contract, while the defendant claimed that his signature was procured by fraud, and the jury so found. The questions that arise on the present record relate to evidence received to show the fraud, and to the charge of the judge upon it.
The evidence which was excepted to consisted in the defendant’s statement, given in detail, of a conversation with the plaintiff in which the latter solicited the job of putting up the rod, and the defendant’s assent to his doing'so at the agreed price of forty dollars, and of the subsequent transaction when the signature^ to the order or contract was obtained. On- this last occasion defendant testified that the paper was presented to him as a recommendation to others of the job; that plaintiff said he had taken it very low, and he wanted it in regard to that; that defendant could not read very well, and did not read the paper at all, and only a little of it, ,in regal'd to its being satisfactory was read to him; that plaintiff professed to be in a hurry at the time. The plaintiff gave no evidence in denial of these statements.
The judge submitted this evidence to the jury under a charge which would permit them to find from it that the paper was obtained by fraud. He also charged the jury as follows: “The facts and circumstances, outside of the contents, will sometimes have an effect upon this question of fraud. If a party cannot read, and that is known to the other side, then, as a matter of course, that would have some bearing upon the exact limits of the care which a party should take in signing the paper. If a party should present a paper and say he is in a great hurry, that he cannot stop for the man to read it, but he will state the contents; if he does not say that, but is in a position or situation where the other party naturally and fairly sup poses that in making a statement of the paper he intends to make that statement fairly and fully, and does not wish to wait until there can be a reading and examination of the paper, then, of course, those are matters which may be and should be considered by the jury. To state the whole matter briefly, this question of fraud must depend entirely on the circumstances of each case, and the question submitted to the jury is, whether the facts and circumstances connected with the signature are such as to mislead him into signing the paper, when if he had known the facts he would not have signed the paper.”
We cannot agree with the plaintiff that there was any error in receiving the evidence, or any thing unfair in the charge. The case is within the previous decisions of this court: Gibbs v. Linabury, 22 Mich., 479; Anderson v. Walter, 34 Mich., 113. Whether the evidence ought to have satisfied the jury we are not called upon to say; but the case was submitted to them under a very fair charge— only a small portion of which we have given — and there was competent evidence to sustain their finding, and also, as we think, to sustain all that was said by the judge in his statement of the case to the jury.
The judgment will be affirmed, with costs.
The other Justices concurred. | [
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Campbell, J.
This is a bill filed by complainant as the alleged holder of a title to certain lands in Lapeer county, defective of record because of the failure to record a deed in the chaiu of title, to compel a release by defendant of a claim set up under a conveyance from the original source of title, but alleged to have been obtained fraudulently, with notice of the true title. The bill also sets up certain tax titles as held by complainant, — and avers possession.
These tax titles were made the subject of a certain stipulation whereby it was provided that they should be withdrawn from consideration on the hearing in the circuit court, but might be used on appeal in this court.
The jurisdiction of this court in equity cases is eo'nfined to the rehearing of the case upon the record presented in the circuit court. We cannot decide a case upon facts which were not submitted for decision there. To pass upon new facts would be to exercise original and not appellate jurisdiction. Bailey v. De Graff, 2 Doug. (Mich.), 169; Adams v. Field, 25 Mich., 16; Studwell v. Palmer, 5 Paige, 166.
Those deeds must be treated for the purposes of this hearing as if they did not exist. The rights of both parties must be determined upon the other titles.
A preliminary question is raised upon the jurisdiction. The defendant claims that this is a bill of peace, filed under the statute to quiet title; and that it can only be filed by a party in actual possession. This it is said the complainant is not shown to have secured. And it is claimed a party out of possession must bring ejectment.
Undoubtedly where a party holding a legal title seeks to enforce it as against a person in possession claiming under an invalid title, or one which the party complaining claims to be such, the only proper remedy is ejectment, and that remedy is perfect. But where a party has an equitable cause of action against another, coming within any recognized rule of equity jurisdiction, such right can be enforced in equity, whether the complainant is in possession or not. The statute (Comp. L., § 5072) was designed to enlarge the powers of equity in regard to quieting title by allowing a decree in favor of a party in possession without the necessity of repeated trials at law. Where complainant’s rights are strictly legal ho has no means of enforcing them at law against a party out of possession, and cannot compel him to bring an action. If therefore the party not in possession neglects or refuses to bring an action, and prefers to wait for the chances of loss of testimony or other casualty, to gain an advantage over the possessor, the statute enables the latter to bring him in as a defendant and compel him to establish his claims or be barred.
But no statute was needed to enable any one to sue in equity upon an equitable cause of action, and in such case possession is not important and has never been required. Salisbury v. Miller, 14 Mich., 160; Ormsby v. Barr, 21 Mich., 474; and 22 Mich., 80; Jones v. Smith, 22 Mich., 360.
The bill in the present case — if established — is very clearly -within ordinary principles of equity. It avers complainant to have a title which may be treated as a legal title, but which not being recorded as to one of the early muniments of title is in danger of being clouded by the assertion of a recorded title fraudulently obtained from one of complainant’s remote grantors. It shows that the defendant has 'an apparently perfect title of record. Under our recording laws it is beyond question that a record title, whether honest or dishonest, always prevents a title which is imperfect of record from having full marketable value, and is presumptively the better title. It creates a cloud upon the unrecorded title in the strictest as well as plainest sense of that expression, and renders it almost certain that no prudent man will purchase it, at a fair price.
The facts set forth are in substance that one George A. Sornborger received the United States patent for the land in controversy (being the east half of the northeast quarter of section 7, in town 8 north of range 10 east) on or about the 5th day of August, 1837, — the location having-been made in his name in June, 1836, by^his brother Edwin Sornborger, — and that the patentee on or about October 1, 1837, sold and conveyed the land.to one Whitman Corbin, by a deed which was not recorded. October 30, 1839, Corbin sold and conveyed to Henry E. Selden, whose deed was recorded, but is objected to by defendant as irregular.. From Selden the chain of title is complete through several mesne conveyances to complainant, who purchased in 1871, and on the 19th of April, 1872, received a conveyance from George W. Hanna.
In 1870 complainant was negotiating with Hanna for the lands, and applied to John Abbott who was register of deeds for an abstract of title, informing him of his purpose. Mr. Abbott gave him no intimation of any defect in the title. In April, 1871, Abbott drew up the contract between Hanna and King, and made no such suggestion.
Iii December, 1870, Abbott, acting on behalf of James S. Johnson, wrote to George A. Sornborger, asking at what price he would quit-claim the land. Edwin replied to this letter that George had never held the title except for his benefit, and asked what Abbott would give for a quit-claim. Abbott replied, offering $100 for a deed from the two brothers to be made to Mary E. Rogers, a sister of Johnson. Edwin Sornborger procured a deed from George to Edwin’s wife, and came to Lapeer with a deed from Mrs. Sornborger executed in blank, with no grantee’s name inserted. On his way to Lapeer he obtained the original patent at the Detroit Land Office, from which it had never been taken. He then negotiated with Abbott, demanding $500, while Abbott offered him $200. He at last agreed to accept $250, and Abbott paid him that sum. Sornborger then inserted the name of Mrs. Rogers in the deed and it was recorded. Mrs. Rogers had no personal agency in the matter. Her brother, Mr. Johnson, acted throughout in buying and selling on her behalf, and the money came from him. She evidently — from the testimony — was not in any ivay concerned except for such purpose as suited Mr. Johnson. Mr. Sornborger says he informed Mr. Abbott that the land had been already sold many years before, and swears he supposed the papers were necessary to complete a title in the real owner of the land. Abbott denies any such statement, but swears that he knew all that was on record, and informed Johnson of it. He was perfectly aware of Hanna’s claim of ownership. Johnson admits this fully. The deed was taken February 3, 1871. The defendant Carpenter in June, 1871, obtained a deed from Mrs. Rogers through the agency of Johnson. He paid $300 and admits he had knowledge of King’s claim before he paid it.
Hpon the undisputed facts of the case the claim that any of these parties was a Iona fide purchaser is out of the question. It was a clear attempt to get a fraudulent advantage over an unrecorded title.
But the question is presented whether King has shown his own title. Objection is made to the deed from Corbin to Selden, as not proved. This deed was made in 1839 in-New York, and had no witnesses. It was acknowledged before a commissioner of deeds in a way shown by the statutes of that state to have been legal, and it was also executed according to those laws. The commissioner’s certificate was verified by the clerk of the court of common pleas of Monroe county, Now York, under his seal of office.
The statutes of 1838 required no witnesses to a deed. In 1839 the law was amended so as to declare that no deed should be recorded without at least two subscribing witnesses. E. S. 1838, p. 257; L. 1839, p. 219. In 1840 deeds executed out of the State were allowed to be made according to the law of the place of execution. L. 1840, p. 166. The laws of 1838-9 prescribed what officers might take the acknowledgment of deeds abroad and required no other proof than their own certificates. A commissioner of deeds was not one of the officers named. E. S. 1838, p. 258.
Under those laws a deed without witnesses was a legal and not an equitable conveyance, the witnesses being only necessary for record. The deed in question was not recorded' so as to make the record effectual as the law then stood.
But in the present case it was proved by Mr. Selden that the deed was executed by Mr. Corbin and delivered to him, and that he caused it to be recorded. Selden gave a warranty deed to his own grantee, and it is fairly presumable from the usual course of business that he retained his own title papers. He testifies that all of his books and papers were destroyed by his partner with whom they had been left by him. After a lapse of forty years we think the deed is proved as satisfactorily as would be possible in most cases, and we have no doubt of its existence.
Mr. Selden also swears that when he purchased the land from Corbin, some question was made about the title, and that Corbin produced a title from Sornborger, which he believes was among the papers before referred to as destroyed. Considering Mr. Selden’s eminence as a lawyer and the fact that the question of title was considered and that deed unrecorded, the probabilities are all in favor of his having received a proper chain of muniments into his own posses sion, to enable him to establish his rights. If this is so, the loss is sufficiently proved. Outside of technical rules no one could have any doubt on the subject, and as the testimony was all legally admissible, and convinces us of the facts, we are bound to act on our convictions.
It is not important, if there was a transfer of title, whether -it was strictly legal or only equitable, so long as it was absolute and unconditional. There are no lona fid& purchasers claiming against it, and as to all others the distinction is immaterial.
We are therefore of opinion that complainant, by his deed from Hanna, obtained a complete right to the fee simple of the land, and that the defendant should convey to complainant the title which he wrongfully obtained thereto by his deed from Mrs. Rogers, in fraud of complainant’s rights.
The decree dismissing the bill must be reversed with costs of both courts, and a decree entered in accordance with this opinion.
The other Justices concurred. | [
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Graves, J.
This is a proceeding for mandamus.
The case stands on demurrer to the answer made to the order to show cause and the demurrer admits all material matters in the answer.
The application claimed that relator had been unjustly .and irregularly expelled from the society and congregation, and the facts stated in the answer admit the expulsion and lead to an opinion that it was irregular. At the same time the answer shows and the demurrer admits that the society has no property; that relator had acted in hostility to the interests of the society and had given grounds for regular removal and that his restoration would destroy the society. Moreover, enough is admitted to show that if restored he might be at once immediately put out.
Under these circumstances the discretion vested in the court will be but exercised by refusing to grant a peremptory mandamus. State v. Lusitanian Portuguese Society, 15 La. An., 73; The King v. Griffiths, 5 Barn. & Ald., 731; Rex v. Mayor &c. of Axbridge, 2 Cowper, 523; Same v. The Mayor &c. of London, 2 Term. R., 177; Ex parte Paine, 1 Hill, 665.
Cooley, C. J., and Campbell, J., concurred.
Marston, J., did not sit in this case. | [
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Reid, J.
(dissenting). Defendants together with one Joseph Russo were tried on an information which charged that “on the 30th day of April, A. D. 1951,” they then and there carried 3 guns “in a certain vehicle operated or occupied” by them, et cetera, in violation of CL 1948, § 750.227 (Stat Ann § 28.-424), which is as follows:
“Any person who shall carry a dagger, dirk, stiletto or other dangerous weapon except hunting knives adapted and carried as such, concealed on or about his person, or whether concealed or otherwise in any vehicle operated or occupied by him, except in his dwelling house or place of business or on other land possessed by him; and any person who shall carry a pistol concealed on or about his person, or, whether concealed or otherwise, in any vehicle operated or occupied by him, except in his dwelling house or place of business or on other land possessed by him, without a license to so carry said pistol as provided by law, shall be guilty of a felony, punishable by imprisonment in the State prison for not more than 5 years, or by fine of not more than 2,500 dollars.”
The jury acquitted Russo but found appellants guilty. Prom their conviction and sentence, they have taken an appeal upon leave granted.
On April 30, 1951, one John Dulape, then residing at 2690 West Boston boulevard, apartment 217, Detroit, was the owner of the 1948 Cadillac convertible automobile herein involved. Title to the ■car had been in his name since December 8, 1949, and the appellants had been staying with Dulape in his apartment. At about 9:30 in the morning of the day involved, the 2 arresting Detroit police officers, John Kellner and James Dunleavy, observed the Cadillac car parked on the north side of Boston boulevard, facing west in the vicinity of the apartment building. The car was unoccupied. The officers stationed themselves in their automobile on Linwood where they could keep the Cadillac under observation. They watched it for possibly 6 hours, until 4 or 4:30 in the afternoon, at which time the arrests, out of which this prosecution arose, were made. The Cadillac was unoccupied between 9:30 and the time of the arrest. A detailed examination of the car at the time of the arrest disclosed nothing of importance but an examination at the police headquarters disclosed a compartment behind the clock ■on the dashboard’ in which were concealed 3 pistols, .1 a revolver.
Officer Kellner testified that he noticed the Cadillac on April 26th, 4 days in advance of the arrest. On April 26th it was parked about 30 or 40 feet .ahead of where it was parked at the time of the arrests. He further testified that he saw 3 men get in the Cadillac on that occasion, April 26th, and •drive away; that Albert Wright was behind the wheel, and Julius Petro in the front seat with Wright, and a third man who resembled Russo was in the car also on that occasion, April 26th. He further testified that he saw the car again on April 27th at the corner of Boston boulevard and that it was unoccupied on that day.
After his arrest, Petro said he had been in the car on different times, that he was in the car the previous night, that he was in Toledo and picked up Russo in the Cadillac. Petro also stated that he lived at 2690 Boston boulevard, apartment 217.
Officer Dunleavy testified that after his arrest, Wright was asked how long he knew the guns were in the car and he said, “I would rather not answer that question.” Officer Dunleavy also testified that Wright was the man from whom he got the keys; that Wright said he was driving the Cadillac for about 3 weeks off and on and that no one else drives the car excepting him, that on the day of the arrest he intended to drive the men to Toledo, and was sitting in the car and was prepared to start the same. Officer Kellner testified that at the time of the arrest, Petro had just about all his body in- the car and his legs outside. It appears that Petro and Wright both had been in Toledo the day before their arrest and brought Russo with them to Detroit and intended to go back to Toledo on the day of the arrest. Both appellants were from other cities than Detroit, were without steady employment and were riding around together for a considerable number of days before the arrest, and were living in the same apartment.
There is sufficient testimony to support a finding that all 3 defendants, Wright, Petro and Russo, were in the parked car at the time of the arrest.
Defendants summarize the questions involved on this appeal as follows:
1. That there was no proof, as a matter of law, that appellants “carried” weapons in an automobile “occupied” by them, and
2. That there was a failure of proof of the requisite knowledge of the defendants of the presence of the guns in the automobile.
There are certain circumstances that stand out prominently in regard to an apparently free use of the automobile in question other than a use by the person in whose name the title to the car stood: By defendant Petro on the night before his arrest and by reason of his presence in the car on other occasions before his arrest; and, also, the use by defendant Wright. Also prominent is the vacant space behind the clock, called the secret compartment, with the pistols in it. The presence of 3 loaded pistols would indicate that 3 occupants of the ear had been arranged for, evidently including defendants who were the actual users of the car. None of defendants had a license to carry concealed weapons.
Defendants had been staying in the same apartment with Dulape, the registered owner of the Cadillac. Under the circumstances disclosed by uncon.tradicted testimony in this case, the jury would have been justified in concluding that either the owner of the car, Dulape, or defendant Wright put the 3 pistols in the car, and the jury would have been fully justified in concluding that it was highly improbable that Dulape would have left the 3 pistols in the ear with defendant Wright in exclusive driving use of the ear for 3 weeks, unless he, Dulape, had been in conspiracy together with Wright as to the pistols, for otherwise Dulape would be rendering himself subject to detection and conviction under the herein quoted statute. That therefore Wright put the pistols in the car or had guilty knowledge of the presence of the 3 pistols in the car, would be a justifiable conclusion.
The statement by defendant Wright that he “was driving the Cadillac for about 3 weeks off and on, and that no one else drives the car except him,” in dicates that Wright had knowledge of the concealed compartment and of the presence of the pistols therein. The presence of the discovered pistols evidenced the actual unlawful purpose of the defendants in driving around together in the car in question.
Defendant Petro’s close companionship with Wright, his driving or being present in the car the night before his arrest, and his presence in it on other occasions before his arrest, his evident familiarity with the then present use of the Cadillac and his companionship with the men who were in the actual use of the car and living in the same apartment, all point to his knowledge of presence of the pistols.
The statute requires that the possession shall be intentional. When all the acts of defendants and their associates, together with attendant circumstances disclosed in the record, are considered, there is afforded a sufficient basis for the verdict of .the jury finding the guilt of each appellant beyond a reasonable doubt. For construction of the word “carry” in the quoted statute, see People v. Moceri, 294 Mich 483, in which case conviction of Moceri was sustained where “defendant Ruggerello was in a parked car and defendant Moceri was just getting into the car.” Ruggerello did not join in the appeal.
The conviction in the ease of each defendant in the instant case should be affirmed.
Btttzel and Boyles, JJ., concurred with Reid, J.
Sharpe, J.
I am not in accord with the reasons stated by Mr. Justice Reid in affirming the convictions, nor the result arrived at. He bases affirmance upon the following:
“The statement by defendant Wright that he ‘was driving the Cadillac for about 3 weeks off and on, and that no one else drives the car except him,’ indicates that Wright had knowledge of the concealed compartment and of the presence of the pistols therein. The presence of the discovered pistols evidenced the actual unlawful purpose of the defendants in driving around together in the car in question.
“Defendant Petro’s close' companionship with Wright, his driving or being present in the car the night before his arrest, and his presence in it on other occasions before his arrest, his evident familiarity with the then present use of the Cadillac and his companionship with the men who were in the actual use of the car and living in the same apartment, all point to his knowledge of presence of the pistols.”
It should be noted that at the close of the people’s case defendants’ attorney made a motion for a directed verdict as to both defendants. The trial court denied the motion and gave the following as his reasons :
“I think it is (a) question of fact. First, there is testimony showing, I am not saying the testimony is true, I am merely saying what the testimony is, to the effect 2 men were definitely seen in the car on a previous occasion, at least one, I believe Eusso, and the testimony was a man who looked like Eusso, not positive identification, had been seen in the car previously. * * * That Eusso, the testimony is, Eusso was in the back seat and had been there for a while; Wright was stepping in behind the driver’s seat, and also the other defendant was getting in the other side; that their foot was in and (they were) about to sit down or were sitting down, entering the car and upon reaching the car Wright had a key to the car; also the testimony shows the 3 defendants had been in the possession of the car the day before and night before.”
Citation of authority is unecessary to establish the principle that the defendant in a criminal case is presumed to be innocent, and that in order to convict him of the crime charged it must be shown by proper evidence that his guilt is established beyond a reasonable doubt. In my opinion there was insufficient evidence to establish a question of fact as to the- guilt of defendants.
The statute under which defendants were convicted contains no statutory presumption as to knowledge that the guns were present in the automobile involved, nor can we presume that the legislature meant to imply a statutory presumption of knowledge of possession of firearms. Whenever the legislature desired to create a statutory presumption, it did so by using specific language. See CLS 1952, §750.535 (Stat Ann 1954 Rev § 28.803), which creates an evidentiary presumption that a dealer in personal property who fails to make reasonable inquiry that the person selling or delivering any stolen property to him has a legal right to do so, shall be presumed to have received such property knowing it to have been stolen. Also, see People v. Smith, 234 Mich 503.
CL 1948, § 750.230 (Stat Ann § 28.427), creates a presumption that one in possession of a pistol from which the mark of identity has been altered shall be presumed to be the party who altered the identification marks.
It follows that under the statute by which defendants were convicted, there is no presumption that defendants knew the guns were in the hidden compartment of the automobile. In considering other types of convictions in criminal cases, the accused must have had knowledge that he was committing the act which constituted the crime in order for the accused to be convicted. See People v. Norton, 243 Mich 559.
Prior to 1936 the State of New York had no statutory presumption of possession of firearms. In 1912 the New York court of appeals held that in order to be convicted of illegally carrying a gun on one’s person, one must knowingly and voluntarily carry the gun. People v. Persce, 204 NY 397 (97 NE 877); People v. Andreacchi, 221 App Div 136 (222 NYS 610).
In People v. Warden of City Prison, 136 Misc 836 (241 NYS 63), the police officers found a revolver under the driver’s seat in the automobile in which the defendants were occupying the rear seat. In reversing a conviction of the defendants for violating the New York statute, which provides that one must “possess” a weapon to be convicted, the court said:
“I am compelled, therefore [by People v. Persce, 204 NY 397 (97 NE 877); People v. Andreacchi, 221 App Div 136 (222 NYS 610); People v. Kevlon, 221 App Div 224 (222 NYS 311)], to discharge the relators. This, and similar cases, establishes the urgent need for legislation making the presence of a forbidden firearm in an automobile or other vehicle presumptive evidence of its possession by all the occupants thereof. Such an amendment would require the occupants of an automobile to explain the presence of the firearm and enable the court to fix the criminal responsibility for its possession.”
The facts involved in People v. Andreacchi and People v. Warden of City Prison, supra, are similar to the facts in the case at bar. The New York statute, as of that date, like our Michigan statute, contained no statutory presumption as to knowledge that the guns were present in the automobile involved.
We have consistently held that presumptions or inferences cannot rest upon other presumptions or inferences'. In Ginsberg v. Burroughs Adding Machine Co., 204. Mich 130, 137, we said:
“It is the province of the board to draw the legitimate inferences from the established facts and to weigh the probabilities from snch established facts. Wilson v. Phoenix Furniture Co., 201 Mich 531. But the inferences drawn must be from established facts; inference may not be built upon inference, possibilities upon possibilities, or inferences drawn contrary to the established facts, contrary to the undisputed evidence.”
Also, see Glenn v. McDonald Dairy Co., 270 Mich 346; Shaw v. General Motors Corp., 320 Mich 338; Nightlinger v. Giant Super Market, 334 Mich 90. While the above-cited cases are civil cases, yet, in my opinion, the above rule should be more strictly adhered to in criminal cases.
In the case at bar, in order for the jury to find defendants guilty, the jury had to believe the evidence that defendants had been seen at least once prior to April 30, 1951, in the automobile. From this fact the jury had to infer that the defendants, who were not the owners of the automobile, knew of the hidden compartment behind the dashboard clock, and from this inference the jury had to infer that defendants knew that the guns were in this compartment on April 30, 1951.
It is the duty of courts to reverse criminal convictions based upon an inference upon an inference in the absence of a statutory presumption. My Brother relies on People v. Moceri, 294 Mich 483, to affirm the conviction. In that case the police officers found a revolver on the floor of the automobile occupied by the defendant. That was an established fact. There was an inference from such fact that defendant had knowledge of the presence of the revolver.
There is no evidence in this case that either of the defendants, on the day in question, operated the automobile. The physical question of fact involved relates only to the occupation of the automobile.
The above Moceri Case is authority for the prin- • ciple that an inference may be drawn from established facts, but is no authority to sustain a false principle that inference may be built upon inference. The Moceri Case brings no comfort to the people in order to sustain conviction in the case at bar.
While it may be true that the records of defendants do not inspire a favorable feeling towards them individually, yet, as a proposition affecting society and the proper administration of justice, I am constrained to hold that the convictions should be reversed without a new trial.
Carr, C. J., and Kelly, J., concurred with Sharpe, • J.
Smith and Dethmers, JJ., concurred in the result. | [
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Reid, J,
(dissenting). Plaintiff filéd a bill of complaint to enjoin defendant city from charging and collecting increased rates for supply of water, and appeals from a decree of the circuit court in chancery dismissing the bill. On November 10,1949, plaintiff township entered into a written agreement with defendant city providing for the sale of water by the defendant city to plaintiff for a period of 10 years from the time plaintiff had established a water-distribution system. A meter for water furnished plaintiff was installed June 7, 1950, apparently the approximate date when such distribution system was completed by plaintiff.
’ A greatly increased new rate was demanded by the city on March 16,1953. It is because of this new rate that the instant suit was instituted by the plaintiff. The agreement in question of November 10, 1949, in paragraph 5 contains the following:
“For all water delivered by the city to the township under this agreement, the township agrees to pay the prescribed rates which shall from time to time he established by the city; however, such rates shall always be reasonable in relation to the costs incurred by the city for the supply of water. Bills for all water delivered hereunder shall be rendered to the township at regular intervals, and shall he payable on or before the due date shown thereon. There shall be an additional charge of 20% attaching to and to be collectible on all bills not paid on or before due date.”
The above contract was for a period of 10 years and was subject to termination by either party upon written notice to be given 2 years before the expiration date, which provision was modified by the parties by an agreement dated July 6, 1953, containing the following:
“It is mutually agreed that the agreement of the 10th day of November, 1949, shall continue in full force and effect as to all other conditions, terms and provisions for a period of 30 days after such time as the township shall give written notice to the city that the township has developed its own source of water supply; provided, however that the agreement of November 10, 1949, as modified, shall continue in effect a minimum period of 1 year from and after the execution of this instrument but in no event beyond the 10th day of November, 1959.”
By ordinance No 29 of the city council, adopted before the contract in question, charges for water services for premises outside the city were fixed at not less than the same rate at which such services were furnished to premises inside the city. Nonresidents by later resolution would not be entitled to the discount of 20% authorized for residents in the city. By a resolution of the city council adopted on June 20, 1949, such charge to nonresident users was further modified to impose a 20% penalty upon bills paid after the due date thereof.
Due to the fact that nonresidents were not permitted the 20% discount, they actually paid 125% of the net rate paid by customers (in the city) who took advantage of.such discount. The cost to the city as determined by its auditor of producing water for its customers during the fiscal year 1949 was 35.02 cents per thousand gallons and for the fiscal' year of 1950 was 38.84 cents per thousand gallons. At the time of the trial the township was taking 9.3% of the entire volume of water produced by the city. The city' has a maximum capacity to, pump 2.750.000 gallons per day. That capacity was being-approached as on July 2, 1952, the city pumped 2.428.000 gallons. The city claims it was reaching the “saturation point,” i.e., limit of capacity to sup-, ply to resident customers and water users of the, city. The city manager, defendant Patriarche, has made no definite plans for immediate expansion of the pumping capacity by the city. City officials estimated that unless the contract was sooner terminated, future expansion of the city’s facilities (for furnishing water) would be required at some point, depending upon actual growth, occurring between 3 to 6 years, and that the cost incident to adequate increase of its pumping capacity, by one additional well of 500 gallons per minute, would be $64,115.
Plaintiff’s witness, Professor Prank Theroux, testified on direct examination:
“To allow for a little leeway and variation in costs that may occur in the future, if I were making a recommendation to East Lansing at present, I probably would recommend that the rates for all concerned, all users of water, be increased 10% approximately.”
The city by resolution adopted March 16, 1953, determined its charges for water service on and after May 1,1953, outside of the city “shall be made at 150% of the respective rates set forth in section 12 of ordinance No 29 of the city of East Lansing as heretofore or hereafter amended for water service to premises inside of the city.”
On April 29, 1953, representatives of the city informed representatives of the township that the city had adopted a policy of placing the charge to a user outside the city at 150% of the city user’s charge.
The court found “the city has a right by statute to charge not less than 100% nor more than 200% to users of water outside of the city limits.” This has, apparently, reference to CL 1948, § 123.141 (Stat Ann 1949 Rev § 5.2581), which is as follows:
“Municipal corporations having authority by law to sell water outside their territorial limits, hereinafter referred to as corporations, may contract for such sale with cities or villages having authority to provide a water supply for their inhabitants, but the price charged shall not be less than nor more than double that paid by customers within their own territory.”
This statute has no reference to customers in townships as the outside territory, but only to users in outside cities or villages, and therefore is no command to the parties in this case; it is of slight use and that only by analogy, in this case. It is to be noted that the statute does not forbid an agreement by the parties that the users residing outside the .supplying municipality shall pay the same rate as users resident in the supplying municipality. An .agreement anywhere within the 100% and 200% is permissible so far as the statute is concerned, even where it is applicable.
Franklin Gregg, Jr., a certified public accountant, was employed by defendant city to audit its books and records in connection with the operation of its water and sewage utility. He testified:
. “Exhibit 23 is a comparative summary of the ■operations of the water department for the 5 years ended June 30, 1953. * * * The first point * * as far as the water department is concerned, certain direct costs as far as the sewerage department is concerned, have been segregated as a bookkeeping operation. Now, these specific expense, customer accounting and collection costs, administrative and general expenses, and transportation costs, were not segregated as a particular departmental cost because of the bookkeeping problems involved there, but were shown in reports as a cost of both departments and deducted from the gross operating profits of the combined 2 departments.
“So, to attempt to pull out in this summary statement here the cost of the water utility as such, we had to have some basis for pro rating customer accounting and collection costs, administrative and general expense, and transportation costs.
“Now, there are probably several methods that you could use in segregating these costs. The one that I felt did the best job was to take the total revenue of the 2 departments combined, take the revenue of the water department, and take that percentage relationship times each of these particular costs.”
The city furnishes no sewerage service to the township and only furnishes water, but charges for sewerage services were commingled by defendant city with water charges.
The plaintiff of course could not keep books for the city of East Lansing respecting the cost of the city’s water service. The books and records of East Lansing do not show, even within a fair degree of accuracy, the basis for determination of the reasonableness of the increase in charges complained of for water supplied.
While it may be said that the plaintiff under ordinary circumstances would have the burden of proving the unreasonableness of the charges fixed by defendant city, yet when the defendant city after a period of more than 3 years had elapsed, was and still is leaving its accounts in a shape where its own witness finds sewerage and water charges so commingled that a precise statement of the costs of production of water is hnascertainable, under such circumstances the city, in sole charge of keeping its own accounts, should be considered as required to prove the reasonableness of its own charges.
The inclusion of sewerage costs in charges against plaintiff would require that the rates fixed by the city be enjoined.
All that plaintiff should pay toward retirement of bonds issued for the cost of the establishment of the city’s water plant must be considered as included only to an amount equal proportionately to the charges required of East Lansing users. No addi tional amount should be required of plaintiff which at no time has been nor shall be a part owner of the plant.
Ordinance No 29 of the city of East Lansing in effect at the time the contract was signed, November 10, 1949, contains among other things the following in section 12:
“Except as herein otherwise provided, water to be furnished by the system to each premises shall be measured by a meter installed and controlled by the city. Charges for water service to each premises within the city connected with the water-supply system, for each quarterly (3 months) period shall be as follows:
“Eor the first 3,000 gallons of water used, $1 per 1,000 gallons.
“For the next 3,000 gallons of water used, 50 cents per 1,000 gallons.
“For the next 14,000 gallons of water used, 30' cents per 1,000 gallons.
“For the next 30,000 gallons of water used, 24 cents per 1,000 gallons.
“For all over 50,000 gallons of water used, 20 cents per 1,000 gallons.
“The minimum quarterly (3 months) water charge to each premises within the city connected with the water-supply system shall be the sum of $3.
“Charges for water service to premises outside the city shall be fixed by the council, but shall be not less than those above set forth.”
And further in said ordinance among other things-section 16 recites as follows:
“The rates hereinbefore established are estimated to be sufficient to provide for the payment of the expenses of administration and operation of the system and such expenses for the maintenance therof as may be necessary to preserve the same in good repair and working order; to provide for the payment of the interest upon and the principal of all bonds payable therefrom, as and when the same shall become dne and payable, and for the creation of a reserve for the payment of principal and interest as required in this ordinance; and to provide for such other expenditures and funds for the system as are required by this ordinance.”
The defendant is estopped by its own ordinance from including items or classes of items not set forth in the ordinance, as grounds for computing .costs.
Plaintiff, in effect, disclaims knowledge of the existence of this ordinance at the time of entering into the contract sued on. Defendant’s counsel claim that plaintiff knew about ordinance No 29 when the contract was entered into. The contract does not recite any acceptance by plaintiff of the grounds for rates set forth in ordinance No 29.
In any event, the city is required to observe its own ordinance, and, even though it be assumed that the township before the' making of the contract sued on, knew of the existence of ordinance No 29 and acquiesced in the classes of costs of production of water in that ordinance in making the contract, and that the subsequent actions of the city and township occurred in recognition of the ordinance and of the grounds set forth in. section 16 of ordinance No 29 for the establishment of rates, including expenses of administration, operation of the system and maintenance, the interest upon and principal of all bonds' payable therefrom as and when the same shall become due and payable, and for the creation of a reserve for the payment of principal and interest and to provide for such other expenditures and funds for the system as are required by the ordinance, still the rates are required by the contract to “be reasonable in relation to the costs incurred by the city for the supply of water.”
An insufficient excuse for a. violator of ■ a plain contract is to assert that he does not know what the contract means. The wording of the contract in the instant case is fairly clear. The contract certainly includes the meaning that the rates are to he based on reasonable grounds for costs reasonably computed. The contract surely means that Meridian is to pay its proportionate share of reasonable costs reasonably computed and considered. If Meridian is required to pay charges for rates greater than rates paid by users living in East Lansing, that necessarily means that Meridian is to pay part of the charges for water supplied to East Lansing users. The words, “for the supply of water,” mean water supplied to Meridian, not water supplied to East Lansing.
The defendant city had no right to fix rates for Meridian which shall require Meridian to pay more than the actual cost of the supply of water to Meridian. The water produced for East Lansing is commingled with that produced for Meridian. Hence, the cost of production requires apportioning. There is practically no other way to fix cost of supply to plaintiff. Meridian should pay no more than its proportionate share, adding thereto the extra cost of getting Meridian’s share delivered to Meridian. Added cost for plaintiff’s share for reading plaintiff’s meter was practically nil ($5 per year).
It is the duty of East Lansing to fix rates that will pay the reasonable costs, and Meridian is to pay only the cost of water supplied to Meridian. To charge Meridian rates that are greater for the water supplied to Meridian than the rates charged to East Lansing usfers is violative of the terms of the contract, for the reason that it costs East Lansing less per 1,000 gallons to supply Meridian with water than the cost to supply the East Lansing users per 1,000 gallons. All users were of the total number of 2,554, and only a very few users are outside of East Lansing. •
Meridian is a large customer. Mr. Theroux gave the following testimony (which is not disputed):
“It is generally conceded that the cost of serving a customer that uses a relatively large quantity of water is less than the cost of serving a customer that uses a small quantity of water. * * * For a very small customer we have to establish a meter, maintain it, and we have to read the meter, and have other expenses in connection with billing and records, for a relatively small quantity of water; and in the case of a large customer who is using a relatively large quantity of water, those expenses that I mentioned are approximately the same, and so on that basis it justifies a considerable differential between the rates charged for small and large customers.”
This is borne out by the hereinbefore recited provisions of ordinance No 29 in fixing lesser rates per 1,000 gallons for users of larger volumes. In the instant case after the installation of a meter, a “box,” and pipe for the connection, a total cost of $1,650, no construction by defendant was (nor has been since) necessitated by reason of the contract with plaintiff.
In addition, East Lansing is obliged' to maintain a ramification of mains and pipes to supply more than 2,500 users in East Lansing but East Lansing is not required to pay for any maintenance for Meridian of pipes or mains beyond the location of the meter for Meridian. The cost of the use of the meter for Meridian, according to the testimony of Mr. Patriarche, does not exceed $5 a year; it is only read 4 times in a year.
As before noted, by resolution adopted by defendant before the making of the contract, charges for outside users were fixed at the same rate as East Lansing users except outside users were not allowed the discount allowed East Lansing users. This seems to have been understood by the parties as a practical construction of the contract, for as hereinbefore recited, during the first 3 years that the parties operated under the contract sued on, plaintiff paid a rate equal to the rate charged Bast Lans•sing users but without the discount for prompt payment accorded East Lansing users, thus equal to 25% greater than users in East Lansing.
Mr. Patriar che testified that he believed expansion would be needed “within the next 3 to 6 years.” "With the contract in question having so few years yet to run, it would be unreasonable to charge Meridian for expansion not necessitated by reason of inclusion of Meridian’s supply.
The practical construction of the contract established by charges fixed and collected by defendant •city during the first 3 years (approximately) of operations under the contract with equal rates for plaintiff and East Lansing users, indicates that the parties themselves understood that the contract required the rates to be geared to cost of production and that rates for plaintiff should be equal with East Lansing users’ rates. The denial of discount's for prompt payments supplied a margin favorable to the city, and sufficient to pay the $1,650 expense of •connection with plaintiff’s system.
It is beside the mark to quote from cases like City of Detroit v. Village of Highland Park, 326 Mich 78, where the relationships between the two municipalities were not governed by a contract of the same terms as the contract sued on in this case. Likewise, wholly inapt is the quotation as to charges in “an area of conflicting interests” with no contract like the contract sued on governing the conflicting interests as set forth in 101 U Pa Law Rev 160, 161, in which it is recited,
“Utility service is only one phase of a prevalent situation in which nonresidents adjacent to cities enjoy the -economic and other advantages of city life without being subjected to all the responsibilities of citizens.”
This is clearly and absolutely outside of the test in the instant case of cost of water supply. The instant case is not a question of ultra vires, but of contract.
The contract in question is silent on matters of profit to the city. Profit to the city is excluded by the contract by the words, “such rates shall always be reasonable in relation to the costs incurred by the city for the supply of water.”
Defendant’s ordinance No 29 identified the various cost accounts; the meter identified plaintiff’s share of the product. That the rates charged in 1950-1953 proved insufficient is no excuse for increasing plaintiffs proportionate share of cost. That other municipalities agree on higher rates for water supplied to outsiders is no excuse for defendant to violate its agreement with plaintiff by which defendant binds itself to require only reimbursement.
Defendant has the power but not the right to shut off Meridian’s water supply. Fixing the rates for Meridian at 187-1/2% of charges to East Lansing users is like cracking a whip, not carrying out the agreement.
To repeat, the cost of supplying water to Meridian, a large user, is less than the cost of supplying East Lansing’s more than 2,500 users per 1,000 gallons; East Lansing’s accounts for water production are commingled with cost of sewerage service, thus making it not fairly possible to ascertain the cost of production of the water; the contract requires that Meridian shall pay only the reasonable cost of water supplied to Meridian; and the parties have given a practical construction to the contract during the course of nearly 3 years in which the rates paid by Meridian have been on an equal basis with the rates charged to East Lansing users, except for the discount allowed East Lansing users. In view of the entire situation, the fixing of rates for Meridian at 187-1/2% (in all), of rates for East Lansing users, is a violation of the contract between the parties.
The decree appealed from should be reversed. An injunction should issue if found necessary restraining the city and its manager from collecting or attempting to collect, the enhanced charges, as fixed in 1953, and from refusing or neglecting to furnish water service as per the agreement, while the agreement is in force and plaintiff is not in default. Costs to plaintiff.
Carr, C. J., and Kelly, J., concurred with Reid, J.
Smith, J.
I regret that I cannot agree with the result reached by my Brother.
This ease turns on a very narrow point: Whether or not the rate charged to the township is “reasonable in relation to the costs incurred by the city for the supply of water.”
In order that there may be a proper understanding of what the case involves, as well as what it does not involve, some perspective is necessary. We start with the proposition that, with respect to water and its supply, municipal ownership of water plants is common. Not only does the supply of adequate amounts of water often require large aggregations of capital, particularly when the water must be brought from a distance, but the service itself is intimately connected with problems of public health and protection. Thus TroxePs assertion, in his treatise on the “Economics of Public Utilities” (p 650), that in 1946 over 70% of the cities of over 5,000 population themselves provided the necessary water service is not surprising. Such service is not, in many cases, confined to the municipality owning the plant. It is common, as in the case at bar, to find water sold to outlying fringe areas. At this point we get into an area of conflicting interests, described in 101 U Pa Law Rev, 160-162, in the following terms:
“Municipal ownership of a utility generates a conflict between economic and political considerations. The problem is common, since many cities sell utility service to nonresidents and most of these do so at higher rates. All the economic factors, such as the public need for the service, limited supply of a natural resource and wasteful duplication of facilities, which impose on a privately owned utility the duty of providing nondiscriminatory and reasonable rates to all consumers, recommend that the fact of city ownership should not alter this basic utility obligation. The court in the instant case apparently felt these economic considerations to be controlling. However, other factors, more political in nature, are worthy of consideration. A city’s purchase of a utility plant is made on behalf of its citizens, who then become both consumers and owners. The requirement of serving nonresidents at the same rates as residents partly defeats the purpose of the purchase by decreasing the benefit derived from the resident consumers’ ownership. Utility service is only one phase of a prevalent situation in which nonresidents adjacent to cities enjoy the economic and other advantages of city life without being subjected to all the responsibilities of citizens. Thus in many instances cities serve fringe areas at the expense of the municipal taxpayers. The obvious solution to the problem is annexation of these fringe areas; the lever of higher utility rates might serve as a means of persuading nonresidents to favor annexation. In the meantime higher rates would relieve to some extent the burden on city residents incurred in supporting adjacent nonresidents in other ways.
“To resolve both the economic and political considerations many States have made the extraterritorial sale of municipal utility service subject to rate regulation by the State public utilities commission. Thus the nonresidents are afforded protection against exorbitant rates, and the cities are allowed a fair profit from sales beyond their corporate boundaries.”
We note in passing, that the Michigan legislature has clearly, with respect to cities and villages, resolved the competing considerations of exhorbitant rates versus fair profits in CL 1948, § 123.141 (Stat Ann § 5.2581), by providing that the rate charged such outside municipalities shall not be more than double the rate paid by consumers within their own territory. This statute, even if applicable, as to which I express no opinion, has not been offended. The rate charged is not alleged to be greater than double that charged East Lansing consumers within their own territory. Nor is the rate out of line in comparison with rates charged out-of-city residents by other Michigan municipalities. The ratio between in-city resident water rates and out-of-city resident rates in 22 cities reported on in the record were between 1 and 1-1/2, and in another 20 were between 1-1/2 and 2.
The contract between the parties provided, in part, . as follows:
“5. For all water delivered by the city to the township under the agreement, the township agrees to pay the prescribed rates which shall from time to time be established by the city; however, such rates shall always be reasonable in relation to the costs incurred by the city for the supply of water.”
The above provision must be considered in conjunction with section 12 of Ordinance No 29 of the city of East Lansing, Michigan, in effect at the date of the contract:
“Charges for water service to premises outside the city shall he fixed by the council.”
There was thus placed, by the contract, a limitation upon the city’s power to establish rates, namely, that they “shall always be reasonable in relation to the costs incurred by the city for the supply of water.”
We are asked by the appellant to find that the rate charged is not reasonable as above prescribed. It will be noted that the clause under examination does not equate rates to costs. Identity is not required. Obviously there is elbowroom for adjustment. The requirement merely is that they shall be “reasonable” In relation to costs. The word “reasonable” with respect to rates charged by utilities is a word of fhe most universal employment. It may be provided by ordinance, statute, or constitution (e.g. Simons v. City Council of Charleston, 181 SC 353 [187 SE 545]) that rates shall be “reasonable,” or “fair and reasonable.” Moreover, should the question of rate :arise on a contract implied in law, the judicial re-quirement is that the rate to be paid shall be “reasonable.” City of Detroit v. City of Highland Park, 326 Mich 78, 100. It may also be employed (as in the case at bar) in a contract. The determination of its meaning, in any case, is not subject to mathematical computation with scientific exactitude but depends upon a comprehensive examination of all factors involved, having in mind the objective sought to be attained in its use. Here it is related to the ■costs incurred by the city in the supply of water.
At this point our examination becomes specific. The city submitted cost figures based upon 3 differ■ent methods of computation. The first was based upon the operating expenses of the water system, as shown by audit, with the allocation of the customer .accounting and collection' costs and the administra tive and general expenses between the water and sewage systems in proportion to the gross receipts of the 2 systems. Under this method of computation costs varied from 41.53 cents to 35.02 cents per 1,000 gallons.
The second method of computation is weighted in favor of the large consumer (i.e., the township). This is accomplished by charging but 2/3 of the administrative and general expenses, which is, concededly, an arbitrary apportionment thereof. Added thereto is (a) return upon the depreciated capital investment of the system at the, rate of 4% per annum, and (b) the cost of potential capital improvement for the system applicable to the township’s needs. The result is a cost of 39.59 cents per 1,000 gallons.
The third method of computation differs from the second in that no charge is included for return on the capital investment of the system, but instead there is included 83.7 % of the principal and interest requirements of the revenue bonds (allocable for water as distinguished from sewer requirements), and the entire interest and principal of the general obligation bonds outstanding against the water department. This method produces a cost per 1,000 gallons of 43.34 cents.
The township does not counter with final figures of its own. Nor does it complain that all charges made are improper. It contents itself with the challenge of items here and there in the cost figures produced by the city. Thus issue was raised as to the proper method of allocation of the undivided costs of the 2 systems, that is, the customer accounting and collection costs and the administrative and general expenses. The method employed by appellees, of dividing in proportion to the total income of the 2 systems, is, I find, not unreasonable. Appellant also argues that certain bond service charges are not an item of cost because (1) when tbe contract was entered into, they were not considered as costs, and (2) the obligations were entered into prior to the contract and thereupon appellant’s demand for water did not give rise to the charges. As to the first point, appellant misconceives the issue. The only question under the contract is whether or not the rates charged are reasonable in relation to costs, not whether the rates charged are reasonable in relation to what appellant believed the costs to be when the contract was executed. There has been no charge of fraud or deceit.
As to the second point, witnesses for both sides testified that cost computations should include charges for the retirement of both the general obligation bonds, issued for the sole purpose of the water system, and such portion of the revenue bonds as was allocated to the water system. While there is no direct testimony to this effect, it appears that the plaintiff’s demands for water were partially met by supplying the water through the- pipes, mains, and other appurtenances which were financed by the bond issues. The plaintiff makes use of the facilities for which the bond service charges must be met, and it is not unreasonable that it pay a share of such charges regardless of the fact that the construction of the facilities was not directly occasioned by plaintiff’s demands.
As to the item including a fair return on the city’s investment in the water plant which, appellant asserts, “is not a cost incurred by the city in any event,” its inclusion was undoubtedly correct. We so held in City of Detroit v. City of Highland Park, supra. Prudent business administration requires that the item of costs incurred include, among others, operating expenses, upkeep of the property, and a fair return on the value thereof.
The item in the second of the alternative methods of cost computations pertaining to the cost of potential capital improvements stands on a footing less secure. Two questions arise with respect to such item, the first as to the imminence of the need of the improvement under contemplation, the second as to the source of the funds, whether bond issue or sinking fund. We need not, at this time, resolve such issues, since they are not, in' themselves, "controlling.
It would serve no useful purpose to discuss further, in this opinion, either the elaborate cost and worth analyses submitted to us through the diligence of counsel, or' the accounting theories presented and argued. After all, we are not setting a rate. We are deciding merely whether a rate charged goes beyond a contract which requires that it be “reasonable in relation to the costs incurred by the city for the supply of water.” As we noted, identity of rates with costs is not required. As a practical matter this would impose an impossible accounting task. The relationship need only be a reasonable one.
Is it? The case boils down to this: The township’s own witness testified that in the fiscal year ending June 30, 1953, the city lost in producing the water approximately $7,000. The trial court concluded, with which conclusion I am in complete agreement, that the city has been supplying water to the township at a loss. It, then, with commendable business prudence, increased its rates, as, in my opinion, it was entitled to do under the contract. I believe that the rate charged (36.1 to 36.15 cents) is reasonable, not only with relation to the cost figures used by the auditor (35 cents-41 cents), but also with relation to the cost figures obtained by alternative theories of cost computation (36.59 cents-43.34 cents).
The burden of proof was on the plaintiff to show that the rates charged were, in fact, unreasonable with relation to costs. It has not done so. I find nothing unreasonable in the charges which the city seeks to make, charges which are permissible under the contract, which are well within good accounting practice, and which are, in fact, less than the maximum- authorized by the legislature for similar fringe areas.
I find no merit in appellant’s remaining assignments of error and affirm the trial court’s dismissal of the bill of complaint. Costs to appellee.
Sharpe, Boyles, and Dethmers, JJ., concurred with Smith, J.
Butzel, J., concurred in the result.
City of Texarkana v. Wiggins, 151 Tex 100 (246 SW2d 622).— Bepokter. | [
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Sharpe, J.
(dissenting). This is a bill filed for specific performance of an option clause in a warranty deed executed February 19, 1926, by plaintiffs, as grantors, to Clarence L. Brownell and Alice M. Brownell, husband and wife, jointly with right of survivorship. The option clause is as follows:
“If the second parties do not wish at any time to use the property as a home, the first parties shall have the first privilege to purchase the above-described property at any future time at the price-stated in this deed, viz., $4,000.”
The undisputed facts are as follows: The property consists of a house and 2 lots in the village of Stockbridge, Ingham county, Michigan. The house was built by plaintiff, Daniel R. Lantis, in the year 1915. Clarence L. Brownell and Alice M. Brownell, his wife, were parents of Daniel R. Lantis’ first wife who died in 1923. After her death Mr. and Mrs. Brownell moved in with Daniel B. Lantis until 1925 when Mr. Lantis remarried. Mr. and Mrs. Brownell lived in the home until Mr. Brownell died in about 1930 or 1931. Mrs. Brownell continued to live in the home until her death in 1952. Some time after the death of Mr. Brownell, Mrs. Brownell married a Mr. Fletcher who predeceased her. The Brownells always kept the property up, improved and modernized it. The property has a present value of approximately $12,000. Defendants are sisters of Mrs. Brownell.
In July, 1952, plaintiff, Daniel B. Lantis, tendered the sum of $4,000 to defendants for a deed of the property, but the same was refused.
In the case at bar the property did not automatically revert back to the plaintiffs at the time of the death of Mrs. Fletcher. Before title could be transferred, the plaintiffs had to pay the sum of $4,000 for the property.
It follows that the deed to the property delivered to the Brownells was clearly a fee simple and not a life estate. See 1 Bestatement, Property, § 14, 1 American Law of Property, § 2.3 et seq., and 2 Thompson on Beal Property, § 786.
The issue of this option being a restraint on alienation was not raised on the trial in the circuit court or on appeal to the Supreme Court, but because the facts in this case may present such a question, we, on our own motion, directed the attorneys for the respective parties to file a brief on this question. See Michigan Court Buie No 72 (1945); Honigman, Michigan Court Buies Annotated, p 693; CL 1948, § 616.1 (Stat Ann § 27.838).
Briefs have been filed and this issue of restraint on alienation of real property is now before us as the principal issue to be determined. It is a cardinal principle of our Anglo-American system of property law which we derived from the common law that a vested estate in fee simple should he alienable at all times. See Mandlebaum v. McDonell, 29 Mich 78 (18 Am Rep 61); 4 Restatement, Property, p 2123, part 1, and 6 American Law of Property, §§ 26.1-26.5.
The majority of the American decisions support this Restatement view as to pre-emptive 'clauses, either because this type of pre-emptive provision violates the common-law rule against perpetuities and/or is a restraint on alienation. See Maynard v. Polhemus, 74 Cal 141 (15 P 451); H. J. Lewis Oyster Co. v. West, 93 Conn 518 (107 A 138), and cases cited in 162 ALR 581, 582. Also, see In re Rosher, [1884] 26 Ch Div 801.
Our Court has always held that where one’s fee is absolute, restraints on alienation are void as repugnant to the grant. In Mandlebaum v. McDonell, supra, the question arose as to whether a restraint on alienation for a reasonable length of time or for any time was valid. We there said (p 107) :
“The only safe rule of decision is to hold, as I understand the common law for ages to have been, that a condition or restriction which would suspend all power of alienation for a single day, is inconsistent with the estate granted, unreasonable and void.”
We have continued to follow the principle of restraints on alienation as set forth in the above case by holding various types of pre-emption provisions void because they were restraints on alienation, e.g., Smith v. Smith, 290 Mich 143 (124 ALR 215), where a deed attempted to prohibit either 1 of 2 joint tenants from disposing of his interest in the property without the consent of the other joint tenant. The principle was also asserted in Porter v. Barrett, 233 Mich 373 (42 ALR 1267), and Sloman v. Cutler, 258 Mich 372, although in the latter case it was held that a vendor conld protect Ms remaining interest in the property by reasonable restraint while the contract was executory.
In Braun v. Klug, 335 Mich 691 (36 ALR2d 1434), a suit was instituted to quiet title to a parcel of land. It appears that in 1947 Francis X. Klug, Sr., and Mary A. Klug, his wife, deeded a parcel of land to plaintiffs. The deed contained the following provision :
“Grantees herein specifically covenant and agree that the above described property will not be sold to anyone except grantors herein or their heirs, representatives or assigns. It is agreed that this covenant shall run with the land.”
We there said (p 695):
“The condition in the deed was that grantees were not to sell the property to anyone except grantors, their heirs, representatives or assigns. Such condition restricts the number of potential buyers. It is repugnant to the grant and a restraint on the inherent right of alienation and therefore void.”
In the case at bar the option would become effective whenever the Brownells vacated the property either by sale, lease or death.
In 4 Restatement, Property, § 413 (comment on subsection 2, clause A), it is said:
“f. Price at which designated person can buy. When, by the terms of the restraint, the price at which the estate must be offered to the designated person is fixed or is to be a certain percentage of a third party’s offer, there is substantial curtailment of the alienability of the land. A fixed price is usually set sufficiently low, in the light of possible developments, to enable the designated person to reap the benefits of any increase in value. The use of the percentage form assures the designated person of definite profit without need to speculate on future possibilities. In either case, the owner of the estate will be deterred from attempting to sell bis property because of tbe improbability that he will realize the full market value. This hindrance to alienation brings these provisions within the rules previously stated in §§ 406-411.”
It should be noted that the pre-emption in the deed now before us falls squarely within the language of the above quote from the Restatement of Property, for regardless of what the duration of this option now under consideration is, it is clear that at least at one time the plaintiffs did have a pre-emption to repurchase the property in question at the fixed sum of $4,000.
During their lifetime Mr. and Mrs. Brownell were restrained from selling their home if they wished to sell it at a profit. Regardless of the reason why they might have originally bought the property in question, there may have been a time when they desired to sell it at a profit, but because of the option they could not do so. Under these circumstances, it was as effective a restraint as any direct restraint and should be so considered. We also note that a clear possibility that profit cannot be made on the sale of a given property will often deter people from selling their property and thus the alienability of their property is limited.
Because of the views heretofore expressed we find it unnecessary to determine the specific meaning of the option as it is a restraint on alienation and thus void ab initio.
It follows that the decree granting plaintiffs’ bill for specific performance should be reversed and a decree should be entered dismissing plaintiffs’ bill of complaint. No costs should be allowed due to the fact that the issue upon which this case is decided was not raised before the trial court.
Boyles, J., concurred with Sharpe, J.
Dethmers, J.
I do not agree that the option is void nor concur in reversal.
1. Application of the common-law rule against perpetuities would leave the option intact because it was not exercisable beyond lives in being and 21 years, but was intended to and could be exercised only by and, hence, during the lives of the 2 optionees or the survivor of them. Furthermore, although it has been applicable to real property in Michigan since the enactment of PA 1949, No 38, in eases where deeds creating future estates were executed after the effective date of that act, the rule was superseded in Michigan, as relates to lands, from 1847 to 1949 by the statutory provisions governing-suspension of the absolute power of alienation contained in RS 1846, ch 62, §§ 14, 15 (CL 1948, §§ 554.-14, 554.15 [Stat Ann §§26.14, 26.15]), repealed by the 1949 act. Windiate v. Lorman, 236 Mich 531; Windiate v. Leland, 246 Mich 659; Rodey v. Stots, 280 Mich 90; 2 Simes, Future Interests, § 576, p 479. The deed containing the option having been delivered by plaintiffs to defendants’ decedent and husband in the year 1926, the rule has no application to this case.
2. The mentioned statutory provisions read as follows:
“Sec. 14. Every future estate shall be void in its creation, which shall suspend the absolute power of alienation for a longer period than is prescribed in this chapter: Such power of alienation is suspended, when there are no persons in being, by whom an absolute fee in possession can be conveyed.
“Sec. 15. The absolute power of alienation shall not be suspended by any limitation or condition whatever, for a longer period than during the continuance of 2 lives in being at the creation of the estate, except in the single case mentioned in the next section.”
The option was not void under the statute for at least 2 reasons: First, it did not work a suspension of the absolute power of alienation, as defined in the statute, even for one instant, because at all times there were ascertainable persons in being, who, together, could have conveyed an absolute fee in possession, namely, the optionors and optionees. Windiate v. Lorman, supra; Russell v. Musson, 240 Mich 631; Windiate v. Leland, supra; Rodey v. Stotz, supra; so held, under like statutory provisions, in Mineral Land Investment Co. v. Bishop Iron Co., 134 Minn 412 (159 NW 966, LRA1917D, 900). Second, had a suspension resulted under the definition of the statute, the period thereof would not have been longer than during the continuance of 2 lives in being at the creation of the estate.
3. Was the option void at common law? The distinction must be borne in mind between the statutory provisions against suspension of the absolute power of alienation for longer than 2 lives in being and the common-law rule prohibiting direct restraints on alienation for any period whatsoever, however short. As stated in 2 Simes, Future Interests, § 576, p 483:
“It is clear that the statutes with respect to the suspension of the absolute power of alienation do not modify the common-law rules prohibiting conditions or provisions directly in restraint of alienation. Such conditions, limitations, or restrictions, when applied to a fee simple estate, are void without regard to the period of time.”
That this is true in Michigan appears from decisions involving future estates created during the period when the statute was in effect in such cases as In re Estate of Schilling, 102 Mich 612; Watkins v. Minor, 214 Mich 380; Smith v. Smith, 290 Mich 143 (124 ALR 215); Braun v. Klug, 335 Mich 691 (36 ALR2d 1434); Porter v. Barrett, 233 Mich 373 (42 ALR 1267); Sloman v. Cutler, 258 Mich 372. In these cases the statute was not mentioned and decision was made to rest on the common-law rule against direct restraints. Did the option at bar constitute a direct restraint on alienation, void at common law? In this connection Mr. Justice Sharpe quotes 4 Restatement, Property, § 413, which section takes the position that a pre-emptive option is a restraint, but that it is valid unless a fixed price is specified therein, in which event it is void. Pratcher, Perpetuities and Other Restraints, p 87. Whatever the common law may be in other jurisdictions, a pre-emptive option with fixed price is not void in Michigan. The 2 Wimánate Cases, supra, involved a pre-emptive provision giving the optionee, at any time the optionor desired to sell, the first opportunity to purchase, for “not to exceed $1,000,” property which another had thereafter agreed to buy from optionor for $8,000. In the first Windiate Case the pre-emptive provision was held to be valid on the ground that it did not violate the statute (p 534) “because at all times there were persons in being by whom an absolute fee in possession could have been conveyed.” In the second Windiate Case that position was reaffirmed and this Court further held that the pre-emptive provision was not violative of the common-law rule prohibiting a direct restraint on alienation, that it could not be construed to be a restraint of alienation, because the optionor (p 664) “could have sold the land the second after he signed the option.” This Court went on to say that though lie would have been required to give the optionee the first chance to buy, upon giving her notice, she would either buy or refuse, thereby confirming the optionor’s right to sell to anyone else, so that, in consequence (p 664), “the alienation of the property was not tied up as a matter of law for a second’s time.” In that same vein, concerning pre-emptive provisions with fixed prices, in 2 Simes, Future Interests, § 462, pp 304, 305, it is said:
“Practical alienability might, in some instances, be restrained by such a contract, but its primary purpose is to enable a particular person to buy, not to prevent any one from selling; and doubtless the owner could alienáte his property subject to the option if he wished.”
The Windiate Cases are controlling of decision in this State and, accordingly, it must be held that the option here was not a direct restraint on alienation and, therefore, that it was valid. See, also, Livonia Township School District v. Wilson, 339 Mich 454.
Assuming, as suggested in Fratcher, Perpetuities and Other Restraints, pp 87, 88, 90, that the holding in the second Windiate Case establishes a rule contrary to 4 Restatement, Property, § 413, and the rule in effect in England and in many other jurisdictions (but not all, e.g., Blakeman v. Miller, 136 Cal 138 [68 P 587, 89 Am St Rep 120]; Mineral Land Investment Co. v. Bishop Iron Co., supra; In re Upper New York Bay, 246 NY 1 [157 NE 911]), even application •of the Restatement position concerning the invalidity of fixed-price pre-emptive options to the option here involved would leave it intact because it is not preemptive. It is not a first-right-to-buy option to arise only if the optionors desire to sell, that being an essential characteristic of a pre-emptive provision. 2 Simes, Future Interests, § 462, p 305; Fratcher, Perpetuities and Other Restraints, p 87; 4 Restate ment, Property, § 393, comment F, and § 413; Sehnebly, “Restraint Upon the Alienation of Property,” in 6 American Law of Property, § 26.64, pp 506, 507. The mere fact that the option is to arise if the optionors do not at any time wish to use the property as a home does not make it equivalent to an option arising only if the optionor desires to sell and, therefore, pre-emptive. Rather, this is an ordinary option to arise on a condition precedent, i.e., when the optionors do not wish to use the property as a home. That options may be created to arise on various conditions precedent appears in 4 Restatement, Property, § 393, comment F. Such an option, exercisable upon the happening of a condition precedent, is not regarded as a direct restraint on alienation and is everywhere held valid even though it specifies a fixed price, except that in jurisdictions where the rule against perpetuities is in effect as to lands, it would be void if exercisable beyond lives in being and 21 years. Bates v. Bates, 314 Ky 789 (236 SW2d 943); Winstanley v. Chapman, 325 Mass 130 (89 NE2d 506). The fact that an ordinary option, to arise upon the condition precedent that optionor ceases to use the land for a certain purpose, contains a fixed price does not make it any more a direct restraint on alienation or any less valid on that account. Livonia School District v. Wilson, supra. For a case recognizing the validity of a fixed-price option not made dependent on the happening of a condition precedent, see Watkins v. Minor, 214 Mich 380. Accordingly, it must be held that the option is valid, even under application of the Restatement rule.
I am aware of the line of Michigan decisions holding void provisions which work a direct restraint on alienation of lands. Typical are those relied upon in Mr. Justice Sharpe’s opinion, namely, Mandlebaum v. McDonell, 29 Mich 78 (18 Am Rep 61); Smith v. Smith, supra; Sloman v. Cutler, supra; Porter v. Barrett, supra; Braun v. Klug, supra. In none was the question presented, as here, of the validity of a mere option to purchase at a fixed price upon the happening of a condition precedent. Each involved an instrument which contained a direct prohibition against selling to anyone for a fixed period of time or without the consent of another, or against selling to certain people or to others than grantors. These clearly constituted direct restraints on alienation. Thus, in Mandlebaum, the will prohibited the sale of property, devised in fee simple, for a périod of 21 years from date thereof. In Smith the deed conveying to father and son as joint tenants contained a clause that neither could sell without written consent of the other. In Sloman a provision in a land contract prohibiting assignment by the purchaser without the written consent of the vendor was held valid. In Porter, a provision in a land contract prohibited sale to colored persons. In Braun the deed provided that grantees covenanted not -to sell to anyone except grantors or their heirs, representatives or assigns, the covenant to run with the land. All these were cases presenting a prohibition against a direct restraint on alienation. The instant case is distinguishable in the controlling respect that the option, as said in Windiate v. Leland, supra, did not tie up alienation of the property as a matter of law for a second’s time. Its primary purpose, to repeat from Simes, was “to enable a particular person to buy, not to prevent any one from selling.”
We come to the questions raised by the parties and passed upon by the trial court. Plaintiffs contended that the language of the option clause which provided that it was to be exercisable “if the second parties do not wish at any time to use the property as a home” was ambiguous, warranting introduction of parol evidence to show the intent of parties. The trial court agreed and on that basis construed the clause to mean that the option was exercisable whenever optionors “do not use or want to use the property as a home.” That construction is supported by the testimony. So construed the option would survive and become exercisable when the optionors ceased to use the property as a home, even though due to their deaths. Such were the circumstances under which plaintiffs sought to exercise it. Defendants contended, on the contrary, that the clause was not ambiguous, that for that and other reasons the court erred in receiving parol evidence in explanation of the option and intent of the parties, and that it should be given the plain and simple meaning which the words naturally import; and, finally, that, read literally, the option could arise only at such time, after its granting, when the optionors should make the affirmative decision and choice “not to use” the property as a home as they had been using it. This, say defendants, would have required an overt act on the optionors’ part which they could have performed only during their lifetimes and that, in consequence, the language clearly discloses an intent that the option could be exercised only during the optionors’ lifetimes and, hence, could not survive their deaths. The difficulty with defendants’ insistence upon a literal reading of the language of the option without benefit of explanatory testimony, is that it leads to a result other than that contended for by them. Defendants’ contention as to the meaning of the clause requires that it be read as though its language were “if the second parties wish at any time not to use,” rather than, as it is, “do not wish at any time to use.” If the language were “wish at any time not to use” it might be said to follow that such “wishing” on the part of optionors would be an affirmative act which, of necessity, would have to occur during their lifetime. On the other hand “not wishing at any time to use” is a negative state, requiring no affirmative choice or decision, but implying rather, the lack of such a wish or its cessation, if it had theretofore existed, such as would occur at death, if not sooner. A literal reading of the option leads to the conclusion, unmodified by any evidence in the ease, that it was exercisable at optionors’ death.
Decree for specific performance affirmed, with costs to plaintiffs.
Carr, C. J., and Butzel, Beid, and Kelly, JJ., concurred with Dethmers, J.
Smith, J., took no part in the decision of this case.
CLS 1952, §§554.51-554.53 [Stat Ann 1953 Cum Supp §§26.49 (l)-26.49 (3) ] ).—Reportes. | [
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Boyles, J.
This is an appeal by the defendant liquor control commission from a judgment entered against it in the State court of claims for $901.29 in favor of plaintiff, for back pay claimed to be owing him as an employee of said commission. The defendant commission argues for reversal mainly on the ground that the court of claims did not have jurisdiction to hear and determine plaintiff’s claim.
On January 9,1952, the defendant commission dismissed plaintiff, an employee. The dismissal was appealed to the civil service commission, which held a hearing on June 13, 1952, and rescinded the deci-. sion of its hearing board which had upheld the dismissal. The commission ordered that the dismissal from service be changed to a suspension effective from January 9 to June 28, 1952, and that the plaintiff serve a new probationary period. On October 31,. 1952, the civil service commission, on rehearing, rescinded said order entered June 13th and ordered that the plaintiff be given an opportunity to resign his said position (liquor store clerk) and that the plaintiff “be given back pay from the effective date of his suspension, minus any moneys earned in other than State employment.” On November 1, 1952,. plaintiff tendered his resignation. . Thereafter, dur ing the course of his frequent demands for his back pay, plaintiff was informed on December 9, 1952, by letter from the State personnel director of the civil service commission that it was intended that plaintiff be paid from the termination date of his suspension (June 28th) to the date of his resignation, November 1st. Obviously, this was not in accord with the order of the commission entered on October 31st, to the effect that plaintiff be given opportunity to resign, and that he be given back pay “from the ■effective date of his suspension.” On January 27, 1953, plaintiff was paid $216.71, covering the period from June 28th to November 1st, the difference between his salary for that period and what he had received as an employee of Blodgett Memorial Hospital.
Thereupon plaintiff renewed his claim in the court •of claims, for back pay from January 9 to June 28, 1952. On hearing, the circuit judge sitting in the ■court of claims gave plaintiff judgment for $901.29, from which the liquor control commission appeals. 'The amount is not in dispute.
Appellant’s principal ground on which it seeks reversal is that the court of claims did not have jurisdiction to hear the claim. Section 8 of the court •of claims act (CL 1948, §691.108 [Stat Ann 1953 •Cum Supp § 27.3548(8)]) provides:
“Except as provided in section 13 of this act, the jurisdiction of the court of claims as conferred upon it by this act over claims and demands against the State or any of its departments, commissions, boards, institutions, arms or agencies, shall be exclusive: * * * The court shall have power and jurisdiction:
“1. To hear and determine all claims and demands, liquidated and unliquidated, ex contractu and ex delicto, against the State and any of its departments, commissions, boards, institutions, arms or agencies. * * *
“The judgment entered by the court of claims upon any such claim, either against or in favor of the State or any department, commission, board, institution, arm or agency thereof, upon becoming final shall be res judicata of such claim.”
There is no dispute in this case as to the legality or the propriety of plaintiff’s dismissal by the defendant commission as its employee, and this question was not involved in the case in the court of claims. It was conceded that jurisdiction over that, question rests solely with the civil service commission. The instant claim is solely for the amount of money, if any, owing plaintiff as compensation for services to the defendant. The court of claims had jurisdiction to hear and decide the claim. Grix v. Liquor Control Commission, 304 Mich 269; Farrell v. Unemployment Compensation Commission, 317 Mich 676.
Appellant also claims, for reversal, that the court of claims should have dismissed plaintiff’s claim on the ground that under section 11a of the court of claims act plaintiff did not file with the clerk of the court of claims a written claim or notice of intention to file a claim against the State within 1 year after his claim accrued. But the plaintiff, on July 7, 1953, filed his claim which was voluntarily dismissed, without prejudice, pending an opportunity to seek an appeal to this Court from the orders of the civil service commission. This was attempted,, but we denied leave to appeal, apparently for the-reason that plaintiff’s claim was for back pay, and that it did not question the legality of his dismissal from service. Thereupon plaintiff renewed his claim in the court of claims. The trial court properly held that the plaintiff had timely filed a written claim or notice of intention to file a claim against the defendant, within the year.
The third ground on .which appellant seeks re-, versal is that the trial court erred in allowing the plaintiff to testify, after the defendant had closed its proofs. Appellant claims that plaintiff’s testimony was not rebuttal, and should have been offered by .plaintiff, after making a prima facie case. It was rebuttal and the court did not abuse its discretion in; receiving the testimony. Brandt v. C. F. Smith & Co., 242 Mich 217, 222.
Affirmed. Costs to appellee.
Carr, C. J., and Butzel, Smith, Sharpe, Reid, Dethmers, and Kelly, JJ., concurred.
Not applicable here.
CL 1948, § 691.111a (Sfcat Ana 1953 Cum Supp § 27.3548-[11-1/2]). | [
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Reid, J.
On leave granted by the circuit court, plaintiff filed an information in the nature of quo warranto and after a trial now appeals from the judgment of the circuit court. The Information was for the purpose of testing the title to the office of supervisor of the township of Manistique in School-craft county resulting from the spring election of April 6, 1953. Plaintiff Burns and defendant Rod-man were both candidates at that election for the office of supervisor. Plaintiff was a “sticker” candidate. Defendant’s name was printed on the only ticket appearing on the ballot.
The effect of the filing of plaintiff’s statement of reasons and grounds of appeal, specifying error in rulings by the trial court on ballots, is to limit plaintiff on this appeal to disputing the court’s rulings •on 7 ballots, exhibits Nos 1 and 2, and exhibits K, L, M, N and O. Plaintiff iii his questions involved ■does not question the court’s ruling on ballots, exhibits Nos 1 and 2. The court determined that each candidate received 178 votes. The tie was decided by lot, resulting in favor of defendant Rodman, and the court entered judgment in favor of defendant accordingly.
Defendant’s name was printed on the sole ticket on ballots, exhibits K, L, M, N and 0, and not marked off; these 5 ballots contain no slips for plaintiff nor mark in the square for defendant; there was no cross-in the circle at the top of any of the 5 ballots; there were crosses in the squares in front of the printed names of candidates for some of the offices other than supervisor on each ballot. Plaintiff claims and defendant denies that the court was in error in counting these 5 ballots as votes for defendant.
If there had been no crosses in the squares in front of the names of any of the candidates for other offices on the 5 ballots, then Johnson v. Board of Canvassers of Village of Casnovia, 101 Mich 187, would have been authority for defendant’s contention respecting these 5 ballots. There were no ballots in the Johnson Case that were in the same condition as the 5 ballots in dispute above mentioned. The Johnson Case does not sustain defendant’s argument.
In the Johnson Case, it was by inference only (not by statutory provision) that the court considered that on a 1-party ballot, no marks being in the circle at the top and no mark whatever being on the ballot, altogether the intent is shown on the part of the voter to vote for all candidates whose names appear on the ballot. See page 192 of the Johnson Case. This inference is negatived by the acts of the voters in the instant case in actually putting some marks, on each of the 5 ballots, by voting for some of the candidates for other offices. This negation is analogous to the principle that “expressio unius est exolusio alterius.” The voter’s marking for some other. candidates for the other offices negatives the inference which arises when he does not mark in the circle at the top of the ticket nor yet in the square in front of a candidate’s name nor put a sticker on the ballot, that then he must have intended to vote the entire printed ticket and for all the candidates whose names were printed in the only ticket on the ballot, otherwise his ballot would count for nothing. There was no mark in the circle at the top nor in the square in front of defendant’s name on any of the 5 ballots in question.
The case of Sawyer v. Hart, 194 Mich 399, 404, does not rule that the striking off of the name under the circumstances described in that opinion is necessary, only that it is permissible.
Not one .of the 5 ballots (K, L, M, N and 0) bore any indication of an intent of the voter to vote for Rodman, but each of the 5 ballots carried evidence of the intent of the voter to select and vote for candidates for offices other than supervisor. . ,
Plaintiff appellant claims that defendant appellee, having taken no cross appeal, may not urge in support of the judgment in his favor, reasons rejected by the trial court. However, in favor of the contrary proposition, .see Grant v. Merchants’ and Manufacturers’ Bank of Detroit, 35 Mich 515; Robertson v. Gibb, 38 Mich. 165; Lambert v. Griffith, 44 Mich 65; Bundy v. Youmans, 44 Mich 376; Regents of the University of Michigan v. Rose, 45 Mich 284. Also, Township of Pontiac v. Feather stone, 319 Mich 382 ; Morris v. Ford Motor Company, 320 Mich 372; Fass v. City of Highland Park, 321 Mich 156; Bostrom v. Jennings, 326 Mich 146; and Menendes v. City of Detroit, 337 Mich 476.
While it might simplify the briefs filed in this Court if the. appellee had served on the appellant, before the appellant filed his brief, a statement of what reasons rejected by the trial court, if any, the appellee would rely upon to sustain his case in this Court, still we feel constrained to consider appellee’s claims in this Court as to matters which were presented to the trial court.
. Appellee claims that if we reverse the ruling of the. trial judge on exhibits K, L, M, N and 0, then we are in duty bound to reverse the trial judge in his rulings counting exhibits 9, 10, 11, 12 and 13 for plaintiff Burns. However, there is this distinction: exhibits 9, 10 and 11 contained unmarked stickers for plaintiff Burns. Under the decision of this Court in Sawyer v. Hart, supra, it was not necessary when the voter had taken the pains to attach a sticker, to also mark on the sticker an “X” in front of the name of the sticker candidate. As to exhibits 12 and 13, stickers in each case were placed not precisely over the name of defendant Rodman but were placed at the name of the office, supervisor, for which office the slip was intended to indicate a vote for plaintiff Burns'.
In 'Saioyer v. Hart, supra, the other candidate’s name' was obliterated but in that case we say, p 401:
“On one ballot Hart’s slip (‘For Treasurer’) is pasted over the printed portion of the ticket, reading ‘For Treasurer,’ and Sawyer’s name, just at the right, is erased with a blue pencil mark.” of the opinion that that statute is directory only and not mandatory in requiring that the sticker be placed opposite the name of the office, and, therefore, such ballots will be counted for Mr. Burns.”
Though the ballots 12 and 13 in this case are not precisely the same as the ballots in the Sawyer Case just spoken of, still we think there was á sufficient intention manifested on the ballots 12 and 13 to indicate fairly clearly the intent of. the voter of each ballot to cast a ballot for plaintiff Burns as the sticker candidate.
The trial court in his opinion stated:
“The remaining question concerns plaintiff’s exhibits 12 and 13, in which the Burns slip was pasted not opposite the name of the office but directly under the name of the office of supervisor. No part of the name of William Rodman was obliterated by the sticker and the name of William Rodman was not stricken out. Although these ballots do not comply strictly with the requirements of * * * (CL 1948, § 178.19 [Stat Ann 1953 Cum Supp § 6.400]) I am
The 5 ballots, exhibits 9, 10, 11, 12 and 13, were ■all properly counted in favor of plaintiff Burns by the trial judge and we sustain the ruling of the trial .judge in those particulars.
As to the 1 ballot, exhibit H, the voter twice indicated his intention, once in the printed square and ■once on the square on the slip. As to exhibit H, the court in his opinion says:
“Defendant’s exhibit H, by reason of the position of the sticker, left exposed 2 squares in front of Burns’ name, and each of these squares contained a cross. I do not believe this was done intentionally for the purpose of distinguishing the ballot, and, therefore, I hold it to be a valid vote for Mr. Burns.”
We consider this ruling was correct and affirm it. As to exhibits I and J, there were horizontal lines in a square. The ballots contained slips' for Burns, plaintiff. As to these 2 ballots, the court ruled as follows in his opinion:
“Defendant’s exhibits I and J each had a square •completely blocked in with blue pencil marks. Although this was, of course, intentionally done, I do not believe it was done for the purpose of distinguishing the ballot, and, therefore, they will be •counted for Mr. Burns.”
1 This ruling, also, we affirm as to exhibits I and J.
Exhibit B was described and commented on in the court’s opinion as follows:
“Defendant’s exhibit B consisted of 5 ballots wherein a blue cross contained in the square of the Burns slip affixed to the ballot was marked over with either pen and ink or a black pencil so that each of these 5 ballots had a pen and ink or black pencil cross superimposed over a blue cross without completely obliterating the underlying blue cross. There being no reason to believe this was done for the purpose of distinguishing the ballots, these 5 ballots will be counted for Mr. Burns.”
Apparently the blue cross on each of these 5 stickers had been affixed before the sticker had been handed to the voter and the voter in each case apparently reaffirmed the indication, the cross, in front of Burns’ name. We affirm the ruling of the trial court as to the 5 ballots constituting exhibit B.
Concerning a group of ballots, exhibit A, the court in his opinion stated as follows:
“The 44 ballots comprising defendant’s exhibit A (plus the 2 ballots comprising defendant’s exhibits F and G already discussed) were all absent voter’s ballots in which the ‘X’ on the Burns sticker was in blue pencil and there were other marks on every ballot, all of which other marks were either in pen and ink or black pencil. Defendant claims that the slips pasted on these ballots had been marked by Mr. Burns or someone in his behalf before they were given to the voters and the fact that the marks were not made by the voter made the votes invalid. Plaintiff claims that there is no proof that these blue marks were made by anyone other than the voter, and that even if made by Mr. Burns, it is no reason to invalidate the ballots. I am not impressed by plaintiff’s argument that there is no proof that the voter himself did not make these marks. It is ridiculous to contend that out of the small number of votes cast in this election, 46 absent voters just happened to pick up a blue pencil to mark part of the ballot and then discard the blue pencil and mark the remainder of the ballot with ink or black pencil. Defendant’s witnesses and the evasive manner in which plaintiff gave his testimony furnish additional reasons for the court to find, and the court does find that the blue marks on the slips on these ballots were not placed there by the voter. However, I do not believe that this furnishes a basis for invalidating such ballots. The intention of the voters to vote for Mr. Burns is clear and the court holds it not to be mandatory that the voters themselves place the cross on the sticker.”
We affirm the ruling of the trial court in respect to this group of 44 ballots, exhibit A, considering that the reasons as recited by the trial judge are correct, and similarly, exhibits F and G-, over which a discussion by the attorneys appears to have.occurred, are considered to be included in effect.
The testimony that Burns passed out slips already marked and that the ballots with such slips on them were cast in the election, does not constitute a reason for declaring the ballots void or refusing to count them for Burns.
The trial court was in error in counting the 5 ballots, exhibits K, L, M, N and O, for defendant Rod-man. All other , rulings of the trial court, we affirm.
The result should have been declared by the trial court as 178 votes for plaintiff and 173 votes for defendant. The court was in error in determining that the election resulted in a tie and declaring defendant elected because of the result of drawing by lot favoring Rodman, defendant. The judgment appealed from is reversed. The case is remanded to the circuit court with directions to enter a judgment in favor of plaintiff. Costs to plaintiff.
Carr, C. J., and Btjtzel, Smith, Sharpe, Boyles, Dethmers, and Kelly, JJ., concurred. | [
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Kelly, J.
Three questions are presented in the appeal of defendant and appellant Benny J. Pakula:
(1) Was the southeast corner of Michigan and Military avenues, where appellant Benny J. Pakula sought to operate a bar under a class “C” liquor license, less than 500 feet from the Boys’ Club of Detroit?
(2) Was the Boys’ Club of Detroit a “school” within the meaning of section 17a of the liquor control act which provides “any request to transfer location of an existing license, shall be denied in the event the contemplated location is within 500 feet of a church or a school building” ? and
(3) Does laches on the part of the plaintiffs and appellees estop them from enjoining the transfer of the class “C” license?
At the hearing before the circuit court the assistant attorney general representing the defendant liquor control commission and its members advised the court that they were “not taking sides in this matter at all,” and were willing to abide by whatever decision the court might make in the case.
Appellant Pakula contends that the legislature intended “schools” to be restricted to institutions teaching “subjects required by law to be taught to children of that age.” Appellees contend that the legislature inserted no such restrictive language and that the purpose of the act was “to protect those of tender years attending institutions contributing to the educational needs of a community.”
The club was organized in 1926 as a nonprofit corporation for the purpose of promoting the physical, mental and moral well-being of the boys of Detroit by providing such means of education and amusement as the directors deemed advisable. Its corporate name now is Boys’ Clubs of Detroit.
One of the 3 buildings operated by the Boys’ Club is the building involved in this appeal, known as the Bloomer building, located at 3910 Livernois. This is a 2-story building resembling in appearance public school buildings, and contains classrooms, gymnasium, swimming pool, locker rooms, library, auditorium and stage, print shop, woodworking shops, art room and special events room. For convenience, the building affected by this litigation is referred to as the Boys’ Club.
Over 2,300 boys between the ages of 7 and 21 are enrolled at the Bloomer building Boys’ Club; 900 in the 7-to-10-year-old class; 700 in the ll-to-13-year-old group, there are 500 in the lá-to-17-year-olds, and the senior membership, 18 to 21 years of age, is 150.
The average number of boys using this building daily is about 600, and all of the members live within a radius of a mile and a half of the building. The Boys’ Club hours are Monday through Friday from 3:30 to 9:30 p.m., and on Saturdays from 10 a.m. to 4 p.m.
The Boys’ Club has a schedule of regular hours for classes in music, woodworking, photography, arts and crafts, printing, motion picture projection, dramatics, radio and television. A physical education program consisting of basket ball, baseball, football, swimming, boxing and wrestling is provided. There is also a health program under the supervision of a full-time doctor, dentist and nurse. The educational program is supervised and carried forward by a full-time staff of 14 paid employees.
. In determining this question as to what is meant by the word “school” we must keep in mind the fact .that in Morse v. Liquor Control Commission, 319 Mich 52, 65, this Court said, that the act must be liberally construed to' “preserve the rights of schools and churches as provided for” in the act as this Court regards such rights as paramount.
Webster’s New International Dictionary (2d ed) defines “school” as “a place for instruction in any branch or branphes of knowledge; * * * an institution for teaching children.”
We have carefully considered the cases cited in appellant’s brief; among which is Matter of Townsend, 195 NY 214 (88 NE 41, 22 LRA NS 194), holding that a liquor law-' prohibiting the' location of a place for the sale of liquor within 200 feet of a school would not include a building used as a training school for nurses. In this case the New York court stated (pp 222, 223):
“This phase of the statute indicates that the legislature, in using the term ‘schoolhouse,’ had in view primarily the common public schools devoted to such general elementary and intermediate instruction as is adapted to the education of our children and youth; and perhaps secondarily such semipublic and private schools as are conducted for the same purpose. Broadly classified this includes all ‘schoolhouses’ in which our so-called grammar and high schools are conducted. While we can find no express warrant in the words of the statute for placing private and semipublic .schools in the same category with common public schools, we are satisfied that it was not the intention of the legislature to exclude the former from its wholesome protection. That is the utmost limit, however, to which the languáge of the statute can be extended. The evident intention of the legislature was to remove the masses of our school-going children and youth as far as possible from the influences of the liquor traffic, and the most, effective means of accomplishing this end was thought to be the interdiction of the traffic within a certain radius surrounding the ordinary schoolhouse. It is obvious that, unless we draw a line with reference to schoolhouses at the point thus indicated, we must go to the extreme length of holding that the term- ‘schoolhouse’ includes every place where instruction is given of any kind or degree, and to persons of any age. These considerations, applied to the conceded facts of this case, lead us to conclude that a building used as a training school for nurses is not a schoolhouse within the purview of the liquor tax' law.”
We have also considered the following cases cited in appellees’ brief giving to the word “school” a broader construction, particularly where instruction is imparted to the young: People v. Collins, 191 Misc 553 (83 NYS 2d 124); Livingston v. Davis, 243 Iowa 21 (50 NW2d 592, 27 ALR2d 1237); Langbein v. Board of Zoning Appeals of the Town of Milford, 135 Conn 575 (67 A2d 5).
This Court was called upon to define the word “school” in Bastendorf v. Arndt, 290 Mich 423 (124 ALR 445). In that case we said (pp 425, 426):
“There is no serious question that defendant is conducting a ‘school.’ The word is a generic one and, where not affected by its context, means little more than an institution with educational purposes or activities. Although defendant is teaching for profit, she is engaged in the promotion of a particular branch of knowledge. * * It is not contended that because the student body is small or because the course of study is devoted more to the arts than to the sciences that the establishment does not fulfill the requirements of an educational institution.”
"We reaffirmed this decision, last year when in Norton School District v. Municipal Finance Commission, 339 Mich 96, we said:
“The word school means little more than an institution with educational purposes and activities. Bastendorf v. Arndt, 290 Mich 423 (124 ALR 445). Education, principally and primarily of the children of the district, is the one general objective of the plaintiff.”
Appellant contends that the Bastendorf Case should not apply to the present case because it was a case involving building restrictions. We cannot agree with this contention. There is no reason why the word “school” should receive a more restricted definition under the act in question than in building restriction eases.
The statute here involved does not construe the word “school.” If the legislature had intended “school” to be restricted to institutions teaching subjects required by law and thereby confined to public and parochial schools, the legislature would have so provided. The record justifies the trial court’s decision that “the Boys’ Club is a school within the meaning of the word as it is used in the liquor law.”
The Boys’ Club building in question is located on land bounded by 2 streets that run north and south, namely, Livernois avenue and Military avenue. The front entrance of the school is on Livernois.
The original liquor control act of 1933 contained no restriction as to the proximity of a liquor establishment to a church or school building. The legislature by PA 1945, No 133, added section 17a to said act, which read as follows:
“Any new application for a license to sell alcoholic beverages at retail, or any request to transfer location of an existing license, shall be denied in the event the contemplated location is within 500 feet of a church or a school building, by the regularly traveled thoroughfare.”
By PA 1949, No 106, the legislature eliminated the words'“by the regularly traveled thoroughfare,” and substituted the following:
“Such distance between the church or school building and the contemplated location shall be measured along the center line of the street or streets between 2 fixed points on said center line determined by projecting straight lines, at right angles to the said center line, from the part of the church or school building nearest to the contemplated location and from the part of the contemplated location nearest to the church or. school building.”
Appellant submits “that ambiguity is present in the application of the statute. The statute does not purport to say what is the nearest part of the school building. Is such to be determined mathematically, or is such part to be determined with regard to the main entrance?”
Appellant contended in the lower court and here contends that the measurement should have been made by projecting a line at right angles from the northerly part of the school building fronting on Livernois avenue (front entrance) to the center line of said avenue, thence north on Livernois to the center line of Michigan avenue, thence southeast along the center line of Michigan avenue to the center line of Military avenue, thence south to a right angle projected from the nearest point of appellant’s contemplated location. It is conceded that if this is the proper way to measure, appellant’s property is more than 500 feet distant from the Boys’ Club building.
The trial court held that appellant was in error in his construction as to how the measurement should be made, and concluded that the nearest part of the Boys’ Club was the northeast corner of the building (rear); that by drawing a line from this point to the center of Military avenue and then measuring north to appellant’s contemplated bar would be the proper way to determine the distance between the Boys’ Club building and appellant’s location. It is conceded that using this method the distance would be 223.28 feet.
A similar question was presented to this Court last year in the case of Elliott v. Liquor Control Commission, 339 Mich 78. Commenting upon the construction of section 17a this Court said:
“A former attorney general had ruled, 'Measurement should commence on the center line of the street on which is located the main entrance of the building.’
“The designation of the regularly travelled thoroughfare as having a part in determining the measurement of 500 feet was stricken out of the statute by PA 1949, No 106, and the defendant commission was in error in applying the ruling of the attorney general so far as expressed in the words just above quoted, which ruling is incorrect under the present form of the statute. ■
“The location of the entrance to either building is to be disregarded, not being an element in the statute.”
We reaffirm that decision in this case. The location of the entrance to the building is to be disregarded, not being an element in the statute. The trial court used the proper method of measuring the distance between the Boys’ Club and appellant’s location, and was correct in determining that appellant’s location was within 500 feet of the Boys’ Club.
The record does not sustain appellant’s claim that plaintiffs were guilty of laches estopping them from enjoining the transfer of appellant’s liquor license. The question was first raised by the defendant in his answer as an affirmative defense and was denied by plaintiffs in their reply. The burden of proving laches was on the defendant, but no evidence was introduced to support this claim. Certain allegations in regard to the publishing in newspapers of the application for transfer of license and the construction. of the building .by .defendant..on,the disputed site are referred to in appellant’s brief, but are not supported by the record. The record discloses that the Boys’ Club objected to the bar -when its officials were contacted by the liquor control commission in the spring of 1952 and by the Detroit police department in January, 1958. ■ •
•i .Zion Lutheran Church, a Michigan nonprofit corporation, an appellee and cross appellant’ herein, contends that the court erred in determining thát the church was 532.50 feet distant from the bar. Its contention that the parish house is á church building and within '500 feet of the bar is not passed upon in this opinion due to our decision that the Boys’ Club is' within 500 feet of appellant’s 'contemplated bar and that the lower court’s decree should be affirmed enjoining the liquor control commission from approving transfer of class “C” license to appellant at said premises.
Judgment affirmed. Costs to appellees. ■ ,.
Carr, C. J., and Smith, Sharpe, Boyles, Beid, and Dethmers, JJ., concurred.
Butzel, J., did not sit.
PA 1933 (Ex Sess), No 8, § 17a, as added by PA 1945, No 133, and amended by PA 1949, No 106 (CLS 1952, § 436.17a, Stat Ann 1953 Cum Supp § 18.988[1]). | [
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Sharpe, J.
This is an action for damages for failure of a tenant to surrender premises to the landlord on the termination of the lease. The record supports the following facts: On December 15,1943, plaintiff, Don McCullagh, leased the premises at 1110 East Michigan avenue in the city of Lansing from Belle R. Carr for a term of 5 years. The lease was renewed for a further 5-year term expiring December 15, 1953. On September 6, 1945, the parties entered into an agreement permitting plaintiff to make certain alterations in the building. Subsequently, plaintiff desired to move to Detroit and leased the premises to Dick Pair Company, who in turn leased the premises to Malcolm Milks, Inc. On May 20, 1953, Malcolm Milks, Inc., leased the premises to defendant, Goodyear Tire & Rubber Company, from July 1, 1953, to November 30, 1953, at a monthly rental of $537.50. Goodyear Tire & Rubber Company negotiated the lease with Malcolm Milks, Inc., with the understanding that Malcolm Milks, Inc., had the lease until December 15, 1953. After the lease was signed, Mr. Milks inserted the date of November 30, 1953. Defendant company also entered into a lease with Edelson Realty Company, the then owner of the premises, for a 10-year term from December 16,1953, to December 15,1963. When defendant company learned that plaintiff retained a leasehold from December 1, 1953, to December 15, 1953, they tendered to the plaintiff the sum of $268.75 as a fair rental of the premises based on a monthly rental of $537.50. The money was returned.
On September 30, 1953, plaintiff, through his attorney, gave notice to Malcolm Milks, Inc., and defendant company to surrender and deliver up the premises on or before November 1, 1953, for the reason that plaintiff had approximately a 200 used-car inventory which he wished to liquidate by an auction sale in Lansing. On November 23, 1953, plaintiff gave defendant, at its home office in Ohio, a notice to quit on December 1, 1953.
A summary proceeding for possession was instituted. The cause came on for a hearing on December 4,1953, and resulted in a judgment for plaintiff. Defendant appealed and demanded a jury trial in the circuit court. On November 23, 1953, defendant leased a store at 2116 East Michigan avenue in Lansing and tendered it to plaintiff for the purpose of conducting an auction sale of used cars. Plaintiff refused to accept defendant’s offer. On January 25, 1954, plaintiff instituted the present action alleging loss of profits because of defendant’s holding over. Plaintiff’s declaration alleges, in part, as follows:
“That the defendant continued in possession of said premises, whereupon on December 1, 1953, the plaintiff instituted summary proceedings for the recovery of the possession of said premises before Arthur Kramer, circuit court commissioner of Ingham county. That said cause was heard on to-wit, December 4, 1953, and a final judgment was issued in favor of the plaintiff and against the defendant. That on December 9, 1953, defendant appealed to the circuit court of Ingham and demanded a trial by jury, thereby preventing any possible determination of said appeal before December 16th. That, subsequently, said appeal has been dismissed upon stipulation of counsel for the respective parties. That despite the repeated requests and demands for possession of the premises made upon the defendant by the plaintiff, the defendant continued wrongfully and unlawfully and without right, to trespass upon the premises and withheld the possession thereof from the plaintiff, and to retain and use the same.
“That in consequence of the forcible detainer of said premises by the defendant, the plaintiff has been greatly injured and damaged. That, as the defendant was fully advised, the plaintiff is an automobile dealer in Detroit, Michigan and had on hand between two and three hundred used automobiles. That during the fall of the year 1953, the value of used cars suffered a sharp decline, and it was to the plaintiff’s advantage to establish whatever loss there might be in his used-car inventory before the end of the year. That he had planned to use the building at 1110 East Michigan avenue, Lansing, for the purpose of liquidating this used-car inventory at auction and that said building had been remodeled to make it suitable for holding such auction sales, and that secondhand automobiles command a substantially higher price in Lansing than they do in Detroit.
“That plaintiff has been deprived of the substantial profits which he would have gained if he had had the opportunity to use premises for the sale of auto mobiles at auction during the period, December 1 to December 15,1953.
“That plaintiff has also been damaged by virtue of the fact that possession of said premises would have enabled him to remove, peacefully, the electrically-operated overhead doors to which he is entitled, which said privilege the owner of the property has failed to accord to him and which will put the plaintiff to further legal expense and costs to recover his property or the value thereof.”
Defendant filed an answer to plaintiff’s declaration in which it is alleged in part as follows:
“The defendant denies that the plaintiff has been injured or damaged because of his inability to obtain possession of the premises. In further answer thereto, the defendant avers that it tendered to the plaintiff a larger and more convenient building at 2116 East Michigan avenue, Lansing, Michigan, for the wholesale auction of automobiles. The defendant admits that at the hearing before the circuit court commissioner the plaintiff claimed that he intended to auction 200 automobiles in the city of-Lansing. The defendant admits upon information and belief that the plaintiff -is an automobile dealer in Detroit, Michigan, but neither admits nor denies that he had in excess between 200 and 300 automobiles for the reason it has not sufficient information upon which to form a belief and as to those allegations, leaves the plaintiff to his proofs. The defendant denies that during the fall of the year 1953 the value of used automobiles suffered a sharp decline in excess of the ordinary month-by-month decline of prices of used automobiles. The defendant neither admits nor denies that it was to plaintiff’s advantage to establish whatever loss there might be in his used-car inventory before the end of the year for the reason it has not sufficient information upon which to form a belief and therefore, as to those allegations, leaves the plaintiff to his proofs. This defendant denies that the plaintiff ever planned to use the building at 1110 East Michigan avenue, Lansing, Michigan, for the purpose of liquidating his used-car inventory at auction. That such claim was a pretense when the plaintiff was under the belief that he could secure double damages from the defendant if he established that the defendant was a trespasser upon the premises. That the plaintiff had full opportunity to conduct such an auction in the building tendered to the plaintiff in the month of November, 1953. The defendant denies that the building had been remodeled by the plaintiff to make it suitable for holding such auctions since for the reason that such remodeling, if any, was for the purpose of servicing automobiles. The defendant denies that secondhand automobiles command a substantially higher price than they would in Detroit or any other place in Michigan.
“The defendant denies that the plaintiff has been deprived of substantial profits which he would have gained if he had had the opportunity to use the premises for the sale of automobiles at auction during the period December 1 to December 15, 1953. That the allegations in paragraph 8 are in contradiction to the allegations in paragraph 7 wherein he alleges that he would sell the automobiles at a loss at an auction in Lansing. In all events the plaintiff could have acquired all the profits of an auction sale in the building which the defendant tendered to him that he could have obtained in the building at 1110 East Michigan avenue. The defendant further avers that loss of profits is not an item of damages in plaintiff’s cause of action.”
The cause came on for trial at which time plaintiff was permitted to offer testimony on loss of profits over the objection of counsel for defendant. At the close of all testimony, the trial court gave the following instructions, in part, to the jury:
“I charge you that as a matter of law the defendant, Goodyear Tire & Rubber Company, was guilty of an unlawful and forceful detainer of the posses sion of the premises, and that plaintiff was entitled thereto from and after November 30, 1953 to December 15, 1953. The plaintiff claims that the withholding by the defendant of the possession of the premises to which the plaintiff was entitled has deprived him of certain profits which he would otherwise have made.
“I charge you that it is the law in Michigan that the plaintiff is entitled to recover from the defendant the amount representing the profits which he may have lost had he been permitted to expose automobiles for sale. It is for you, the jury, to determine-the amount of such loss if they have been shown with reasonable certainty and are not so remote, speculative or contingent as to form no reliable basis for a determination as to loss.
“In connection with the matter of proof of damages, I charge you that if the plaintiff has been damaged, the fact that the extent of the damage cannot be precisely ascertained does not prevent recovery. Damages are not rendered uncertain because they cannot be calculated with absolute exactness. It is sufficient if a reasonable basis of computation is afforded, although the result be only approximate. The amount of damages may not be determined by mere speculation or guess but must be based on evidence furnishing data from which the amount of the probable loss can be ascertained as a matter of reasonable inference. In such event, you may make such reasonable and probable estimate as to loss of profits as in the exercise of good sense and sound judgment you think will produce adequate compensation to the plaintiff.
“I charge you that the plaintiff is entitled to be reimbursed for any reasonable expense he was caused in attempting to get possession of the premises by summary proceedings before circuit court commissioner Kramer. You will recall what the testimony was in that regard.
“I charge you further that the defendant cannot escape liability by offering to the plaintiff the use of another building during the period from December 1 to December 15,1953.
' “The defendant corporation could, itself, have avoided the damages to the plaintiff by simply ceasing to cause them, by moving out and giving possession of the premises to the plaintiff during this period. Where the defendant had this opportunity to avoid the damage, it was its duty to act upon it. You will therefore disregard any offer made by the defendant to the plaintiff of the use of another building except insofar as said offer may bear upon whether the plaintiff in good faith contemplated conducting a public sale in Lansing at the time and place we have talked about here.”
The jury returned a verdict in favor of plaintiff in the amount of $20,000. • Defendant appeals and urges that the trial court was in error in permitting plaintiff to show loss of profits as an element of damages. It appears that plaintiff offered testimony to show an inventory of 194 used cars held and owned by him in Detroit which he intended to sell at auction in Lansing from December 1, 1953, to December 15, 1953; that because of a falling market in used cars it was desirable to sell the cars in Lansing at auction; that he could have sold his used cars in the city of Owosso, Michigan, as Owosso is nationally known as a city where used cars are sold at auction, but found it inconvenient to do so; that prices for used cars in Owosso bring an average price of $156 more per car than similar cars are sold for in Detroit ; that the value of used cars sold in Lansing was $167 per car more than cars sold in Detroit.
Plaintiff, Don McCullagh, testified:
“I had a particular use for this building during the latter part of my lease. We had a large inventory of used cars in Detroit and the market on used cars was rapidly dropping, and we were unable to dispose of them as rapidly in Detroit. I planned on bringing them to Lansing and selling them and that is what I wanted the building for. We were planning on holding an auction sale or 2 auction sales, plus an attempt to retail as many as possible. There was no other way of rapidly disposing of them in Lansing other than by auction.
“The Lansing price on used cars was considerably higher. I could have had an automobile sale, a sales of automobiles over the 2-week period. * * *
“Q. Do you know whether or not the conditions for the sale of used cars were substantially the same at Owosso as it is in Lansing.
“A. Yes, it would be the same. Conditions are fairly comparable. The nearest place to Lansing where auctions are regularly held for the sale of cars is in Owosso. I have sold cars in Owosso at auction. The place nearest to Lansing where cars are sold is at Owosso which is approximately 32 miles from Lansing.
“During the latter part of 1953 there was an oversupply of used cars. There was a sharp decline in values of used cars. I would say the last of September or the first part of October it started. It continued through the period of December 15, 1953, and for some time thereafter. The prices were dropping steadily, there was an over-supply.
“Through being deprived of the possession of 1110 East Michigan avenue during the period in question I was unable to dispose of my used-car inventory at that address. * * *
“A. I refused to accept that building for the purpose of an auction sale. That building is approximately the same size, and it was built for trailer sales, not for an automobile sale, to start with.”
Plaintiff’s cause of action is based upon CL 1948, § 630.23 (Stat Ann 1953 Cum Supp § 27.1997), which reads:
“The plaintiff obtaining restitution of any premises under the provisions of this chapter, shall be entitled to an action of trespass on the case against the defendant, and may recover damages from the time of the forcible entry, or forcible detainer, or of the notice to quit, or demand óf possession, as the case may be.”
It is urged by plaintiff that lost profits are recoverable where one is wrongfully deprived of the use of real property. In Hitchcock v. Pratt, 51 Mich 263, it was held that loss of profits is a proper element of the damages recoverable in an action of trespass for forcible entry and detainer.
In Pasieczny v. Bonkowski, 260 Mich 107, 109, 110, we quoted with approval from note 39 ALR 386, 392, the following:
“Independently of the damages which are based upon the reasonable rental value of the premises, the landlord may be entitled, in proper cases, to special damages that he has suffered by reason of the tenant’s failure to surrender the premises.”
Under the facts in this case defendant was guilty of an unlawful detainer of possession of the premises. The judgment before the circuit court commissioner is conclusive evidence of unlawful holding and upon dismissal of the appeal became res judicata of plaintiff’s right to possession, see Moskin v. Goldstein, 225 Mich 389; F. M. Aiken, Inc., v. Solomon, 298 Mich 123 (134 ALR 888).
"We are in accord with the statement found in Eastman Kodak Company of New York v. Southern Photo Materials Co., 273 US 359, 379 (47 S Ct 400, 71 L ed 684), where the following was quoted with approval from the court of appeals:
“ ‘Damages are not rendered uncertain because they cannot be calculated with absolute exactness. It is sufficient if a reasonable basis of computation is afforded, although the result be only approxi mate.’ ” See Eastman Kodak Co. v. Southern Photo Materials Co., 295 F 98, 102.
The United States supreme court then went on to say (p 379):
“This, we think, was a correct statement of the applicable rules of law. Furthermore, a defendant whose wrongful conduct has rendered difficult the ascertainment of the precise damages suffered by the plaintiff, is not entitled to complain that they cannot be measured with the same exactness and precision as would otherwise be possible.”
In our opinion the trial court was not in error in receiving in evidence plaintiff’s testimony of damages suffered. But it is urged that it is the duty of the landlord, when a tenant holds beyond the term of the lease, to use such means as are available to him to mitigate his damages. The general rule relative to mitigation of damages is well stated in Rich v. Daily Creamery Co., 296 Mich 270, 282 (134 ALR 232), where we said:
“There is no question but that it is a well-established rule that in case of a breach of contract the injured party must make every reasonable effort to minimize the damages suffered and that it would be the duty of the court upon request so to charge the jury. We hold, however, under the authorities that the burden is upon the defendant to show in mitigation of the damages claimed that the plaintiff has not used every reasonable effort within his power so to minimize his damages. Tradesman Co. v. Superior Manfg. Co., 147 Mich 702; Flickema v. Henry Kraker Co., 252 Mich 406 (72 ALR 1046); Milligan v. Haggerty, 296 Mich 62. The same rule is applicable in tort actions as in actions for breach of contract.”
Counsel for defendant relies on Socony Vacuum, Oil Co. v. Marvin, 313 Mich 528. That case involved an automobile accident. After tbe collision, plaintiff’s driver failed to turn off tbe ignition on Ms truck, tbe result being that tbe truck and trailer caught fire. In the above case we were concerned with an element of damages occurring subsequent to defendant’s wrongful act and held that it was the duty of plaintiff’s driver to minimize the resulting damages. In the above case we reaffirmed the quotation from Rich v. Daily Creamery Co., supra.
In the case at bar the wrongful act was a continMng one in that defendant wrongfully kept possession of the premises for a period of 15 days.
In 15 Am Jur, Damages, § 41, p 441, we find the f ollowing :
“In some States the rule requiring one to minimize the damages arising from an injury to property does hot apply in cases of intentional or positive and continuous torts, and if there is an illegal invasion of one’s property rights and an intentional or positive •and continuous tort, the injured party may recover whatever damages he has sustained, even though, by the exercise of ordinary care and diligence, he could have avoided the same.”
Also, see Johnston v. City of Galva, 316 Ill 598 (147 NE 453, 38 ALR 1384).
In the ease at bar there is evidence that the building tendered to plaintiff by defendant was not satisfactory for the purpose of conducting auction sales. In order to minimize his damages, plaintiff was not ■obligated to accept and use a building that was not suitable for the purpose of conducting his business when he was deprived of a building remodeled for that particular purpose. Moreover, defendant could have easily mitigated all damages by refraining to use the building during the period that plaintiff was entitled to its use.
Under the circumstances' of this case, we find no error in the trial of this cause. The judgment is affirmed, with costs to plaintiff.
Carr, C. J., and Butzel, Boyles, Reid, Dethmers, and Kelly, JJ., concurred.
Smith, J., took no part in the decision of this case. | [
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Smith, J.
In this case, plaintiff Wilda Aiken, the widow and administratrix of the estate of John M. Aiken, deceased, and Thomas F. Aiken, the brother of John M. Aiken, deceased, filed a bill of complaint on August 18, 1953, whereby they sought to enjoin the defendants Elizabeth Aiken Gronser, Carolyn Aiken Lipetz and Richmond Lumber Company from cutting or removing any timber or trees from certain lands situated in St. Joseph county. An injunction was issued upon the filing of the bill of complaint so enjoining defendants until further order of the court.
Defendants Elizabeth Aiken Gronser and Carolyn Aiken Lipetz are the daughters of John M. Aiken, deceased. Defendant Richmond Lumber Company is the vendee of a contract for timber entered into with defendants Gonser and Lipetz. The material facts have been stipulated by the parties.
The father of the aforementioned John M. Aiken and Thomas F. Aiken, died on March 17, 1914, leaving a will, the pertinent provisions of which are as follows:
“3d. I do hereby give, devise and bequeath unto my 2 sons John M. Aiken and Thomas F. Aiken the use, control and possession of all real estate that I may die possessed of, each to have 1/2 of all such real estate, and each to use, control and possess such 1/2 for and during his natural life, then to descend to the-male heirs of his body, and if no male heirs then to the female heirs of his body. In case either son should die without heirs of his body, then the estate hereby devised to him shall descend to the male heirs of the surviving son (being those of his body) and if there are no male heirs of his body, then to the female heirs of his body, share and share alike. I do not-make a division of said real estate for the reason that I believe that the 2 sons could better divide the same to suit themselves. The use, control and possession of the real estate to my 2 sons as aforesaid is hereby given and is hereby subject to the following conditions; that my 2 sons are to pay as legacies to my 3 daughters, Alta Gunning; Louzella Ziegenfus and Mabel Aiken each the sum of $2,000 in 6 years from the date of 1 year after my decease and annually thereafter until the whole sum of $6,000 shall be paid. All such legacies shall draw interest at 6% per annum after maturity but shall not draw any interest until due and payable as herein provided. The legacies herein provided are hereby bequeathed to the said daughters and to each of their heirs and assigns forever, and each son shall pay 1/2 of the legacies aforesaid.
“4th. In case my 2 sons should both die without leaving any heirs of their body, then the property herein named is to descend to the nearest heirs of my body share and share alike by right of representation.
“5th. The legacies mentioned to my 3 daughters are hereby made a lien upon the real estate that I may die possessed of—that is to say each of the 2 interests or estates of my 2 sons in and to such real estate shall be subject to a lien as aforesaid of $3,000.
“6th. I do hereby nominate and appoint my 2 sons John M. Aiken and Thomas F. Aiken as the joint executors of this my last will and testament, and if one should die before the duties of executor are fully performed, the surviving executor to act and perform such duties alone.”
The will was duly admitted to probate on May 4, 1914, in the probate court of St. Joseph county, the sons John M. and Thomas F. Aiken being appointed executors. Pursuant to the terms of the will, John and Thomas F. Aiken paid the legacies due the 3 daughters of the .deceased, and divided the real estate by the exchange of quitclaim deeds on April 8, 1919, John M. Aiken receiving the parcel which is now in dispute and on which his widow by a second marriage, Wilda Aiken, one of the plaintiffs herein, resides.
It is further stipulated that John M. Aiken had no male heirs, but has surviving him 2 female heirs by his first marriage, the defendants in the instant case.
After a full hearing, the court below was of the opinion that the will gave
“the sons the power to divide the real estate that he gave them under the will, stating that they could divide it more equitably than though he had done it. This, they did. And as stated in paragraph 5 of the will:
“ ‘The legacies mentioned to my 3 daughters are hereby made a lien upon the real estate that I may die possessed of—that is to say each of the 2 interests or estates of my 2 sons in and to snch real estate shall be subject to a lien as aforesaid of $3,000.’
“In the mind of the court, this clearly showed that the father left the real estate so the sons could divide it and each take an independent 1/2 interest, which they endeavored to do by the 2 quitclaim deeds.”
The court continued:
“In the opinión of the court, it is clear that Thomas M. Aiken left 2 separate life estates to his 2 sons, John and Thomas F., and that he gave them the power to divide the farm between them, which they did; and he took care of his daughters by making the payments to them through a lien upon this property which was paid by each of the sons. He then caused the property, after the life estate, to descend to the male heirs to keep the farm in the family name, but if there were no male heirs, then, to the female heirs. And, in the opinion of the court, the remainder preceded by the life estate of John Aiken now has become vested in the possession of the defendants, Elizabeth Aiken Gonser and Carolyn Aiken Lipetz, and that the life estate of Thomas F. Aiken is a contingent remainder contingent upon his having heirs of his body, and upon his death without having heirs of his body will become a vested remainder.in the defendants. It is now a vested remainder, but subject to the heir of the body of Thomas F. Aiken.”
The court accordingly dissolved the injunction and entered a decree adjudging that defendants Elizabeth Aiken Gonser and Carolyn Aiken Lipetz are owners in fee of the lands of John M. Aiken, deceased, and have a vested remainder in the land of Thomas F. Aiken, subject to the heir of his body.
While we are in complete agreement with the findings and decree of the trial court, there is another point in the case decisive of the issue here raised on appeal.
All of the parties to this litigation, save the vendee, Richmond Lumber Company, have lived under and acquiesced in the terms of the will in question for many years. The plaintiff, Thomas P. Aiken, accepted the will and acted in accordance with its terms. He and his brother, John (whose second wife now occupies the homestead which came to her husband under the will), qualified and acted as executors, and paid the legacies to the daughters. The brothers and their wives exchanged deeds dividing the property. It is now too late to claim that the devise under the will is void, and the legacies good, or that part is good and the rest bad.
In Young v. Young, 200 Mich 236, "Willis Young, a brother of the testator, contested the probate of the will in question. He later entered into an agreement with the widow of the testator for the sale of a farm which had been devised to the widow. Willis Young subsequently deeded some of the land to his son. Some 21 years later á second will was discovered in which plaintiff Young was given the remainder over after a life estate to the widow. Plaintiff appealed from a decree dismissing his bill of complaint for accounting, to set aside probate of the first will to establish the second. The court, in sustaining the dismissal of plaintiff’s bill of complaint, said (p 241):
“The positions occupied by plaintiff are inconsistent. He cannot elect to treat the first will as the last will and testament of David J. Young for the purpose of basing his title thereon to a portion of the lands conveyed thereunder, and at the same time elect to consider it invalid for other purposes.”
The Court went on to quote from the case of Hawley v. Dibble, 184 Mich 298, 303, wherein it said:
“In the instant case the defendants, who are trying to contradict the terms of the deed in this respect, are claiming an undivided half interest in the lots hy force of the same deed. They do not accept the instrument as a whole. They accept what is favorable to them, and attempt to reject what is unfavorable. This is just what the Jacobs Case holds they ought not to be permitted to do.”
The Court also quoted Stone v. Cook, 179 Mo 534 (78 SW 801, 64 LRA 287), where the rule is announced (pp 545, 546):
“A person cannot accept and reject the same instrument, or, having availed himself of it as to part, defeat its provisions in any other part; and this applies to deeds, wills, and all other instruments whatever. (Citing authorities.) This doctrine of election which prevents the assertion of repugnant rights, is but an extension of the law of equitable estoppel.”
Under the facts in the instant ease, plaintiffs may not now deny the validity of the division of the property under the terms of the will which has been acquiesced in for some 30 years. Under the view of the case we have- taken, there is no necessity for our discussion of additional matters raised on appeal.
The decree of the circuit court is affirmed, with costs to defendants.
Carr, C. J., and Btjtzel, Sharpe, Boyles, Beid, Dethmers, and. Kelly, JJ., concurred.
Jacobs v. Miller, 50 Mich 119.—Reporter. | [
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Reid, J.
Defendant appeals from a judgment rendered in the circuit court against him, July 28, 1954, and from an order denying a new trial entered on September 13, 1954, in the circuit court for Genesee county.
On May 23, 1953, plaintiff sold to Ike Cotton and Charles W. Allen, certain furniture for the agreed price of $616.80, including financing and recording charges. The agreement of sale was captioned, “conditional sale agreement and note.” After a recital of the parties and price, and a description of the property, the agreement, exhibit A, contained the following:
“Buyers agree to the following:
“1. The above property has been received in good condition.
“2. To pay to seller (successors or assigns) or order, the sum of $616.80 purchase money, in 24 monthly instalments of twenty-five and 70/100 dollars ($25.70) each on the same day of each consecutive month hereafter, commencing on the 27 day of June, 1953, and . . . dollars final instalment, negotiable and payable at the Merchants and Mechanics Bank, 120 West First street, Flint, Michigan.
“3. Not to remove property from Genesee county, Michigan without prior consent of seller.
“4. That the information furnished in the buyers statement on the reverse side is correct and is given for the purpose of inducing seller to extend credit for the purchase of the described property.
“It is mutually agreed between buyer and seller:
“5. Title is reserved in seller until purchase price (which is the time balance plus down payment) is fully paid and the extension or renewal of above note shall not pass title to the buyer.
“6. In case of default, in any particular, seller may, without notice, demand, or legal process, take possession of the said property and may lawfully enter premises where it is located to effect such possession.
“7. The full balance shall, without notice, become due forthwith if seller shall have cause to consider the indebtedness or the property insecure.
“8. Any indulgence or rearrangement by seller with buyer is not a waiver nor shall they or either of them affect the rights of seller.
“9. This is the entire contract. There are no warranties, agreements, representations, promises, or statements unless expressly set forth in this contract. This contract inures to the benefit of and binds the heirs, executors, administrators, successors, assigns of seller and buyer.
“10. Buyer acknowledges receipt of a duplicate of this contract.
“Buyer—/s/ Ike Cotton
“/s/ Charles W. Allen
“Seller—Flint Furniture Mart
“By /s/ Wm. Brushaber
“Ast. Treas.
“/s/ Wm. Brushaber
“Witness.”
This instrument was not recorded in the office of the register of deeds. The furniture covered by the contract in question was purchased from Mr. Allen about the 7th day of July by defendant, Charles L„ Beckley, who had no knowledge of said agreement and who seems to have taken the furniture to his new and used furniture store, all in the same city (Flint) and defendant disposed of the furniture prior to being called upon by Mr. Brushaber representing plaintiff.
The one controlling question in the case is whether exhibit A is a conditional-sales agreement or is in fact a chattel mortgage.
In Burroughs Adding Machine Co. v. Wieselberg, 230 Mich 15, we say at p 22:
“Absolute liability for the full purchase price may be stipulated and enforced, but title may not be retained, possession reclaimed, and the full purchase price unpaid also be exacted, without having the instrument fall within security in the nature of a chattel mortgage.” (Italics supplied.)
In Mills Novelty Co. v. Morett, 266 Mich 451, we say (syllabus 3):
“The distinction between a transaction involving a conditional sale and one involving a chattel mortgage lies in the rights and remedies of the vendor: In the former, the seller may retake the goods on default and rescind sale or sue for the price and elect to pass property to the buyer; in the latter, vendor has lien on property with right to reclaim, resell it and sue for deficiency.”
In the Mills Case we cite with approval the distinction between conditional sales agreements and chattel mortgages set forth in Atkinson v. Japink, 186 Mich 335, and Burroughs Adding Machine Co. v. Wieselberg, supra. The distinction between conditional-sales contract and chattel mortgage recited in the cases just cited is quoted with approval also in Nibbelink v. Coopersville State Bank, 286 Mich 1, 5, 6. In the instant case, by the contract herein-before recited, the title to the furniture was retained in seller until paid in full. There is nothing in the contract that can be construed as authorizing the seller to sue and recover a judgment for the balance of the purchase price if he retakes the goods.
The defendant relies on his construction of the ■seventh clause of the contract in question, above quoted. Defendant stresses the words therein, “the indebtedness * * * insecure,” as showing that the seller did not intend that this should be a pure title-retaining contract, and leaving the plaintiff the •option to bring suit on the note. Evidently defend ant means that plaintiff could sue for the balance after retaking the property. We cannot accept the construction of the seventh paragraph claimed by defendant. In any event, the word “indebtedness” and the word “property” in the seventh paragraph have the disjunctive “or” and the seller’s right is in the alternative as to “property” or “indebtedness.” This does not indicate that the seller had the right to retake the property and still sue for the balance.
If the construction of the recitals in the agreement as to the remedies given the seller were doubtful, it might be of some value to look at the caption of the agreement, which is, “conditional sale agreement and note.” We do not need to resort to the caption for construction of the agreement; the agreement is fairly plain and speaks for itself.
The trial court correctly construed the contract in question, ruling that the contract, “has all of the earmarks of a conditional sale. Nowhere does it give the seller any right to seize the property and sell it, and then sue for any balance due or in any manner collect any balance due. It has the acceleration clause which-is permissible, and under all the facts of the case it is very apparent it was intended as a conditional-sales contract.”
Defendant Beckley sold the furniture that was the subject of the conditional-sales contract without the knowledge or consent of plaintiff and rendered himself liable to plaintiff for that reason. The judgment for plaintiff appealed from is affirmed. Plaintiff may tax costs.
Carr, C. J., and Butzel, Sharpe, Boyles, Dethmers, and Kelly, JJ., concurred.
Smith, J., took no part in the decision of this case. | [
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Carr, C. J.
The material facts in this case are not in dispute. The litigation has resulted from differences of opinion on certain legal questions that have arisen in the course of probate proceedings. Charles E. Ward, a resident of Kent county, died testate November 24, 1933. His heirs at law and beneficiaries under his will were his widow, Mae Ward, a son, Charles E. Ward, Jr., and 2 minor grandchildren, who were the children of another son who predeceased testator. The will involved in this' proceeding was executed July 17, 1930. A later codicil, dated March 30, 1932, is not material to any issue presented here.
After making certain bequests and devises, testator provided, in paragraph 5 of the will, as follows:
“Fifth: I give, devise and bequeath all the rest, residue and remainder of my estate to my executrix and trustee hereinafter named, in trust, however, for the following uses and purposes, that is to say, to invest, reinvest, to sell and resell, and keep invested the proceeds of said estate in good interest-hearing securities during the lifetime of my said wife, and to use said trust fund and said net income as it sh'all appear to her to he reasonably necessary, having regard to the mode of life accustomed by myself and herself during my lifetime with full power to my said executrix to sell and convey any and all property, real estate or personal, acting upon her judgment therein and without waste or unnecessary diminution or destruction thereof, keeping and preserving the corpus of said property to he turned over at her death to my heirs, as more particularly hereinafter directed.
“Upon the death of my said wife I direct that the corpus of said trust fund he paid equally to my children, if living. If 1 only of said children is living, then 1/2 thereof to him and the balance thereof to my grandchild or grandchildren born to my other son, if any. If none, said 1/2 to go to my grandchild or grandchildren generally. In case of the death of 1 of my said sons before the time for the distribution of said trust fund, leaving no issue, that is, grandchild or grandchildren, then such part of such trust fund as would have gone to said deceased child hereunder, is to he paid equally to my grandchild or grandchildren. In case of the death of both of my said sons before the time for the distribution of said trust fund, then all of said trust fund shall he paid equally to my grandchild or grandchildren.”
The testator nominated his wife, Mae Ward, to be the executrix and trustee under the will, with a request that she should not be required to give bonds for the performance of her duties. The mother of the minor grandchildren, Mrs. Bertha Ward, was appointed as their guardian. Pursuant to authority granted hv the probate court, said guardian, testator’s son Charles E. Ward, Jr., and Mae Ward entered into a written agreement setting forth the election of the widow to take under the. will, and stating the interpretation to he placed on the language of the fifth paragraph, above quoted. Said agreement provided, in part, as follows:
“2. It is understood that under the fifth paragraph of said will first party as beneficiary of the trust therein created shall have the right and said fifth paragraph is hereby interpreted to give her the-right to use and expend the corpus or principal of said trust estate or any part thereof as well as the-net income therefrom as it shall appear to her to be-' reasonably necessary for her maintenance and support having regard to the mode of life accustomed by said Charles E. Ward, deceased, and first party during their married life, so long as she shall live.
“3. First party, as executrix and trustee, as, if and when appointed as such by order of said probate court, shall have the right, without order of or from said probate court, to sell and convey any or all property, real estate or personal, belonging to said trust estate, acting upon her judgment therein, or, at her election, may petition said probate court for an order authorizing the sale and conveyance of any or all property, real estate or personal, belonging to said trust estate, serving notice of the hearing on such petition, together with a copy thereof, on second and third parties in the manner provided by law.
“4. First party, as executrix and trustee, as, if and when appointed as such by order of said probate court, shall account to said probate court every 6 months and shall serve notice of the hearing on such accounts on second and third parties in the manner provided by law on the filing of accounts by executors and trustees.
“5. On the hearing on the allowance of such accounts or any of them or on any hearing before said probate court or any other court of competent jurisdiction which raises any question concerning the use and expenditure of the corpus or principal of said trust estate or any part thereof by first party, or anyone on her behalf, whether the nse and expenditure of the' corpus or principal of said trust •estate or any part thereof by first party or anyone •on her behalf was reasonably necessary, having regard to the mode of life accustomed" by said Charles E. Ward and first party during their married life, shall be a question of fact.”
On petition of Mae Ward, the agreement was approved by the probate court of Kent county by order dated June 1, 1934. After reciting a finding that the agreement was fair and properly construed the fifth paragraph of the will, it was further adjudged .and decreed that the order “shall constitute a construction of said will and particularly the fifth paragraph thereof and an adjudication of the rights of .said heirs at law, legatees and devisees of said Charles E. Ward, deceased, as far as such rights are determined by the terms of said agreement, exhibit A attached to said petition, which is incorporated in this order by reference.”
The will and codicil thereto were duly admitted to probate on the petition of Charles E. Ward, Jr., and Mae Ward was appointed executrix. The estate was administered according to the provisions of the will, the executrix receiving her fees as such, and a widow’s allowance in the sum of $200 per month being granted to her by order of the court. Following the completion of the administration, Mae Ward was appointed trustee, and the residue in the estate, amounting to $43,692.50, was assigned to her as such. She assumed control of the trust fund March 8, 1935, and continued to act as trustee until her death on December 7, 1951. During said period she filed 17 accounts, each of the first 3 covering a period of less than 1 year. The first account filed covered the period from March 8, 1935, to and including September 30th following, "and indicated that she had drawn during such period, as beneficiary under the will, the sum of $1,353, and the court was requested to approve such withdrawal as reasonably necessary for her use. An order was entered accordingly, the other parties in interest waiving notice of hearing and consenting to the approval of the account as submitted.
It is conceded that each subsequent account filed by Mrs. Ward contained a request that the court grant to her the sum of $200 per month as reasonably necessary for her use, and such provision was incorporated, in each instance, in the order of approval. In some of the periods covered by such accounts the trustee drew from the estate the amount-specified in the subsequent order. In other instances she drew less than said amount, while in 1946 and 1948 the withdrawals by her for her support exceeded the sum that the court was subsequently asked to approve, and did approve. It is-conceded that during the period covered by the accounts the total of the allowances made in the orders of approval signed by the probate judge was $38,499, but that Mrs. Ward actually withdrew for her use the sum of $30,440.58. In other words, the orders-of approval totalled $8,058.42 more than Mrs. Ward had withdrawn from the trust fund. The record further discloses that Mrs. Ward desired to maintain the fund in accordance with the wishes of the testator to the end that his heirs and beneficiaries' might receive it after her death. It may be noted further that of the total actually withdrawn from the trust by Mrs. Ward the sum of $12,301.52 came from principal and the balance from the income of the property.
Following the death of Mrs. Ward, the Michigan Trust Company was appointed administrator of her estate. As such it prepared and filed the 18th account of the trustee, setting forth the receipts and disbursements in the usual manner, asking for ap proval by the court of the acts of Mrs. Ward, and requesting instructions as to the right of her estate to receive from the trust fund the difference between the aggregate of the court orders above referred to and the amount expended for her support by Mrs.. Ward, said difference, as above pointed out, being $8,058.42. The administrator asked that the court alloAv for Mrs. Ward’s support during the year 1951 up to the time of her death the sum of $2,200. The account filed shoAved that she had actually drawn $1,200 during said period. The administrator further asked that the court fix the compensation to which Mrs. Ward was entitled for her services as trustee during the time that she acted as such. It is conceded that Mrs. Ward during her lifetime made no request for such compensation.
Objections to the granting of the petition of the administrator were filed by the' grandchildren of the testator, Florence E. Hughes and Kenneth F. Ward. Following a hearing, the probate court, by order dated February 20, 1952, approved the account as-submitted by the administrator, and further found that the estate of Charles E. Ward was indebted to the estate of Mae Ward in the sum of $10,258.42 for allowances for her support under paragraph 5 of the will, as specified by orders of the court but not AvithdraAvn by Mrs. Ward, and including the allowance asked for 1951. The successor trustee was directed to pay said sum to the Michigan Trust Company as administrator. The court further allowed $3,167.40 by Avay of compensation for the services of Mrs. Ward as trustee, and payment thereof was likewise ordered from the property remaining in the estate. An appeal to the circuit court was taken by Florence E. Hughes and Kenneth F. Ward. By order of that court the successor trustee was made a party to the cause, and entered his appearance by his. attorney.
Following the bearing before bim tbe circuit judge came to tbe conclusion that tbe orders of tbe probate court, approving the accounts filed by Mrs. Ward as trustee and undertaking to specify an amount for her support during tbe periods covered by such accounts, may not be given the force and effect of creating an indebtedness on tbe part of tbe estate of Charles E. Ward to tbe estate of Mae Ward. He further indicated the opinion that tbe authority of tbe probate court was limited to approving or disapproving tbe withdrawals from tbe trust fund by Mrs. Ward for her support, that the allowance of $2,200 for tbe year 1951, prior to tbe death of Mrs. Ward on December 7th of that year, was unauthorized, and that under tbe circumstances no allowance for fees as trustee should be made to her estate. Judgment was entered accordingly, denying the claim of tbe administrator in tbe particulars stated and remanding the cause to tbe probate court for further proceedings. From such judgment tbe administrator of Mrs. Ward’s estate has appealed. •
It is apparent from the language of tbe will that tbe testator bad confidence in tbe ability and judgment of Mrs. Ward to properly handle tbe trust fund. She was given power to sell property and to reinvest tbe proceeds, acting upon her judgment with reference thereto. It is equally apparent that be wished her to continue in tbe mode of life to which the parties were accustomed during bis lifetime. To that end she was empowered “to use said trust fund and said net income as it shall appear to her to be reasonably necessary.”
In their agreement, above referred to, tbe parties in interest recognized that it was tbe intention of the testator to empower Mrs. Ward to use and expend tbe principal of said trust estate, as well as the net income, as she deemed reasonably necessary for her maintenance and support.. It is significant that in this agreement the parties, with reference to the sale and conveyance of property, stipulated that she might act upon her judgment or might petition the probate court for an order authorizing the sale of property belonging to the estate. They did not see fit to insert any such provision with reference to her withdrawal of money from the trust fund for her support. The further provision that any question raised as to the reasonableness of an expenditure by Mrs. Ward for her support out of the trust fund should be a question of fact indicates that in the making of withdrawals for her maintenance she was entitled to act on her own judgment, subject to her action being subsequently questioned. As before noted, the order of the probate judge approving thé agreement declared it to be a proper construction of the fifth paragraph of the will and an adjudication of the rights of the parties as determined by the agreement. Such order must be construed as recognizing and declaring the right of Mrs. Ward to expend from the trust fund such amounts as she found necessary for her use in maintaining the standard of living contemplated by the testator.
In each of the accounts rendered by Mrs. Ward as trustee she set forth the amount that she had drawn for her maintenance and support during the period covered. Consistently with the will, the agreement of the parties above referred to, and the order of the probate court approving the agreement, such withdrawal was in each instance approved, no question being raised with reference thereto. In the petition filed for approval of each account a request was made, in addition to the request that the withdrawals and expenditures from the trust fund be approved, that the court fix $200 per month as a proper allowance for her support and use for the prior period covered. In each instance the order was made accordingly. In terms, each, order undertook to place the stamp of approval on what Mrs. Ward had actually done with reference to funds for her support, and then fixed a definite amount as reasonably necessary for her use without reference to what she had actually withdrawn. If such provision with reference to her right to $200 per month was proper, it follows that there was created in her favor an indebtedness on the part of the estate aggregating the sum of $8,058.42.
We are in accord with the holding of the circuit judge that no authority was vested in the probate court to create any such obligation. It was the duty of said court to pass on the acts of the trustee, as disclosed by the account, including the propriety of .actual disbursements from the trust fund. See MacKenzie v. Union Guardian Trust Co., 262 Mich 563. A contrary view would necessarily lead to the conclusion that the estate of Mrs. Ward and the parties interested therein are now entitled to have the trust fund reduced by the withdrawal therefrom of the amount claimed. We think it apparent that the testator did not contemplate any such possible result. By the express language of the will he authorized withdrawals from the fund for the support and maintenance of Mrs. Ward as her judgment and reasonable desires might dictate. However, she was not authorized to withdraw more than she deemed necessary in order to augment her own estate.
A like conclusion follows with reference to the sum of $2,200, specified by the order of the court in approving the 18th account, for the support and use of Mrs. Ward during 1951, such order having been made,' as noted, subsequent to her death. The circuit judge was not in error in setting aside the order ■of the probate court directing the successor trustee to pay to the administrator the sum of $10,258.42 on the theory that the estate of Mr. Ward was in debted to the estate of Mrs. Ward in that amount under the prior orders of the probate court, above considered.
On behalf of appellees the validity of the probate orders in question is challenged because of alleged failure to give them proper notice of the hearings on the accounts. With respect to such issue it may be noted that the agreement between the parties, executed January 6, 1934, in which they placed their interpretation on paragraph 5 of the will, specified that the trustee should serve notices of hearings on accounts on the other parties to the agreement, in the manner provided by law. Quite possibly the parties had in mind at the time the giving of actual notice to Charles E. Ward, Jr., and to Bertha E; Ward as guardian of the estates of the minor beneficiaries. It is admitted that notices were not personally served on such parties. However, in view of the conclusion above reached as to the authority of the probate court in the premises, it is unnecessary to discuss the question of notice. Assuming that appellees here were bound by orders of the probate court within the scope, of the .jurisdiction of said court, obviously their failure to appear and object to the orders as entered could not and did not operate to empower said court to create the indebtedness- claimed in the instant case.
This brings iis to the question as to the right of appellant administrator to recover compensation to which, it is claimed, Mrs. Ward as trustee was entitled for services rendered during the time that she acted in that capacity. Chapter 4, § 3.3, of the probate code of 1939 allows a testamentary trustee to be compensated for his services in such amount as the court shall deem to be just and reasonable; It appears, however, that Mrs. Ward did not at any time during the period that she acted as trustee of the fund created by the will ask for compensation for her services. It is a fair conclusion from the record that she had no intention at any time of doing so. It is not open to question that she sought to carry out the wishes of her husband, as expressed in the will, and to preserve as far as possible the corpus of the trust fund for the beneficiaries entitled thereto. In view of the fact that she was authorized under the will to draw from the fund such amount as she found necessary for her use and maintenance, it is quite probable that she did not deem it proper to ask for monetary compensation. She had the right to waive such if she so desired, and her conduct indicates that she did so.
The following statement by the Court in In re Shailer Estate, 172 Mich 600, 610, 611, is applicable here:
“Touching the demand for an allowance for compensation of the trustee, we are of opinion that it should be denied. During the 6-1/2 years the trustee acted she made no demand for compensation for her services in that capacity, and, considering the facts in the case, we have no doubt she had no intention of ultimately making such a demand. In any event, the allowance of a claim to compensation by a trustee is a discretionary matter, and we have no disposition to disagree with the finding of the learned circuit judge upon this point.”
The burden of proof rested on the administrator of Mrs. Ward’s estate to establish its claim with reference to the fees sought to be recovered. In re LaFreniere’s Estate, 316 Mich 285. We are in accord with the finding of the circuit judge that the right of such recovery has not been established.
The judgment of the circuit court is affirmed. Appellees may have costs.
Butzel, Smith, Sharpe, Boyles, Beid, Dethmebs, and Kelly, JJ., concurred.
PA 1939, No 288, as amended (CL 1948, § 704.33 [Stat Ann 1953 Cum Supp § 27.3178(284)]). | [
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Smith, J.
This is an action of ejectment. The decision of the trial court was in favor of plaintiffs. Judgment was entered thereon, granting plaintiffs possession of certain premises in Boyne City. Motions for new trial and to set aside judgment were denied, appellant taking a general appeal therefrom.The record discloses that considerable time has elapsed in the various steps taken, both in the court below and on appeal, a practice' we do not condone, but the appeal has not been challenged by reason thereof and we will proceed to a determination of the issues presented.
The appellant’s principal contention is that the court erred as a matter of law and fact in finding that plaintiffs were entitled to possession of the property. A statement of the material facts involved is therefore necessary.
The plaintiffs had acquired title to the lands in question by warranty deed on April 10, 1943. They subsequently appointed one John Wilkinson of Chicago, Illinois, their agent to sell the property. In August, 1943, he negotiated with, and orally agreed to sell to, Fred Binder and his wife of Detroit. The consideration was a cash payment of $3,150. The Binders tendered, as down payment, a check in the sum of $500, which was accepted and cashed by the agent. They then went into possession of the property, having been given the key to the premises by the agent. Subsequently, and in the month of August, 1943, the Binders contracted to sell the property to defendant Watkins by a written contract. On August 27, 1943, defendant notified the agent of the plaintiffs in writing that he had acquired the interest of the Binders and requested that the abstract of title be sent to the Charlevoix State Savings Bank to be held in escrow and, if title was found to be satisfactory, that the balance of $2,650 would be paid directly to the agent by the bank. Defendant further requested that the deed be made out directly to him. Agent Wilkinson acknowledged this letter, stating that he saw no objection to Binder’s transfer of his interest, providing he was satisfied as to the consideration, and stated that the deed would be made out as requested. It should be noted that defendant’s letter to Wilkinson did not disclose that the terms of the Binder-Watkins deal were materially different from those of the plaintiff-Binder transaction in that the former purported to provide for-transfer of title upon Watkins’ completion of FHA financing, “a time limit of 90 days, or as long after as would be necessary.”
On September 1, 1943, a deed to tbe property and tbe abstract of title were forwarded to the bank by plaintiffs’ attorneys, with a covering letter relating to the escrow agreement, which made the requirement of immediate payment. In due course the bank acknowledged receipt of the deed and abstract of title, but notified plaintiffs’ attorneys that, although their letter stipulated immediate payment,, “the transaction needs to be held open pending certain mortgage arrangements.” To this communication plaintiffs’ attorneys replied, on September 23, 1943, that the deed and abstract of title were- delivered to the bank upon condition that payment was to be made immediately, and they requested either the return of the deed, or payment. This letter also terminated, as of September 25, 1943, the bank’s authority to deliver the deed. On such date the deed was returned by the bank to plaintiffs’ attorneys, with the comment that the abstract disclosed doubtful title and that the defendant had a contract with the Binders, which gave defendant 90 days within which to consummate the transaction. The bank also sent plaintiffs, on October 7,1943, an opinion of title as to the property. Thereafter, and on November 15, 1943, agent Wilkinson wrote Binder, stating that the agreement had been that Binder was to pay the balance within 30 days thereof, or as soon as title was delivered, that he, Wilkinson, had made no deal with the defendant Watkins. He demanded return of the key and also stated, in substance, that if Binder did not “straighten out the mess (he had) created in Boyne City in connection with this matter” that the matter would be turned over to attorneys and the $500 deposit retained as liquidated i damages.
Correspondence continued between Binder, Wilkinson and the defendant in regard to the property. It was lengthy and we will not summarize. The result was that the parties were unable to straighten out their difficulties and the correspondence terminated on June 22, 1944. On July 21, 1944, plaintiffs commenced an action in ejectment which resulted in judgment for plaintiffs as aforedescribed.
Despite the profusion of offers and counteroffers between the parties, Wilkinson and Binder, Binder and Watkins, and Watkins and Wilkinson, extending over a period of several months and through some 25 written exhibits, as they attempted to work out their problems, certain facts emerge with clarity from the record as a whole. It is clear that plaintiffs orally agreed to sell their property to the Binders for cash, which cash they have never received from anyone, Binders or the defendant. Clear, also, is the fact that, regardless of whether or not the offer to the Binders was withdrawn in fact or by operation of law at any earlier date, it was definitely and unequivocally withdrawn on December 23, 1943, when plaintiffs’ agent wrote to Binder:
“We have never had a contract so I am through with this entire mess, and as stated above, if I do not hear from you immediately, I shall not consider your purchaser or anyone else in this matter.”
So far as the record discloses, the immediate response demanded was not forthcoming. Defendant Watkins himself seems finally to have recognized-the futility of placing any further reliance upon the plaintiff-Binder transaction, for, on April 23, 1944, he wrote Wilkinson in part:
“I want you to know that I feel nothing can be done with Binder and I am willing to forget him if we can get together on some kind of deal.”
He also, in this letter, suggested a purchase of the property on land contract from plaintiffs. No agreement was ever concluded between the parties on this basis.
We are not unaware of, or insensitive to, the argument that defendant, in the light of all the circumstances, may have certain equities, although we are expressing no opinion thereon. He did not, it is clear, enter upon the property as a trespasser, and, for reasons not made clear on the record, he has been permitted to remain there for the past 12 years. This, however, is an ejectment action, not a bill in chancery. It is well settled that in an action of ejectment, we do not take cognizance of defendant’s equitable rights. As we said in Barker v. Klingler, 302 Mich 282, 288:
“It is well settled in this State that the vendee in a land contract is vested with the equitable title-in the land, and that the legal title remains in the vendor and is held as security for the payment of the purchase price of the land, upon the payment of which the vendee is entitled to a conveyance of the legal title. Hooper v. Van Husan, 105 Mich 592; Stevens v. DeBar, 229 Mich 251; In re Estate of Jeffers, 272 Mich 127; Lutz v. Dutmer, 286 Mich 467. Plaintiffs’ rights, if any, under the land contract were equitable.
“ ‘Nothing is better settled in this State than that in an action of ejectment an equitable title cannot be set up as defense against a legal title. Buell v. Irwin, 24 Mich 145; Ryder v. Flanders, 30 Mich 336; Harrett v. Kinney, 44 Mich 457; Geiges v. Greiner, 68 Mich 153.' Michigan Land & Iron Co. v. Thoney, 89 Mich 226, 231, 232.
“See, also, Thompson v. Doore, 269 Mich 466.
“Plaintiffs’ equitable title under the land contract cannot be enforced in this action against defendants who have shown a prior legal title,”
In Lundberg v. Wolbrink, 331 Mich 596, the trial court in an ejectment action applied equitable principles and sustained an equitable defense raised by the defendant. In reversing this judgment, we said at page 599 that:
“In the case at bar, plaintiffs brought their action in ejectment. Defendants filed an answer claiming an equitable defense. The trial court found that defendants were not guilty of unlawfully withholding from plaintiffs the possession of the premises described in plaintiffs’ declaration. The judgment of the trial court is based upon an application of equitable principles. This may not be done in an ejectment case.”
This Court in Ohnstead v. Johnson, 313 Mich 57, 65, also stated, and quoted authority to the effect, that:
“The rule in Michigan excludes in ejectment all defenses that are not legal. Barrett v. Kinney, 44 Mich 457, 460. See, also, Moran v. Moran, 106 Mich 8, 12, 13 (58 Am St Rep 462); Paldi v. Paldi, 95 Mich 410; Bliss v. Slater, 144 Mich 648.”
An examination of the record indicates that the record title of plaintiffs is prima facie sufficient to entitle them to judgment. The questions propounded and argued by defendant claiming error on the part of the trial court in finding that no contract existed between either the defendant, or his assignor, and the plaintiffs, are not justified by the record. The trial court made no specific finding as to the contractual relationship of the parties. The decision of the court is as follows:
“This is an ejectment cause. The title of plaintiffs'is admitted upon the record to be valid.
“The court is of the opinion that the proofs do not establish the right of the defendant to have or hold the premises. Neither ownership nor right to possession is satisfactorily proven.”
In a nonjury action of ejectment, unless the finding of the trial court is against the clear preponderance of the evidence, this Court will affirm. Hamilton v. Weber, 339 Mich 31. We are constrained to hold that the judgment of the trial court must be affirmed. Costs to plaintiffs.
Carr, C. J., and Butzel, Sharpe, Boyles, Reid, Dethmers, and Kelly, JJ., concurred. | [
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Kelly, J.
The Michigan public service commission on April 9, 1954, granted the petition of Michigan Consolidated Gas Company and ordered a revision of gas rates in the city of Mt. Pleasant.
The city of Mt. Pleasant filed a petition for writs of prohibition or mandamus and an order to show cause was directed by this Court to the Michigan public service commission. The nature of the remedy sought confines this review solely to issues of law and plaintiff agrees with statements in the memorandum of the attorney general that:
“The plaintiff’s basic claim, asserted throughout its petition, rests upon ‘a valid and subsisting franchise contract’ between the city and Consolidated” * * * and involves “issues of law which arise out of the terms and conditions of the franchise contract between them.”
The 30-year franchise in question was issued in 1931 to Gas Corporation of Michigan. In 1942, Gas Corporation assignee! this franchise to defendant Michigan Consolidated Gas Company.
The 1931 franchise established the rates for gas service for 3 years with the further provision that subsequent rates to be determined upon mutual consent, and if the parties were unable to agree upon a revision of rates “either party * * '* may apply to the Michigan public utilities commission (to whom jurisdiction to fix and alter rates in said city is hereby granted and conferred) to fix and establish rates, in which case the rates so fixed, if just and reasonable, shall prevail.”
The Michigan pnhlic service commission ordered revision of rates in 1935 and 1936, and the 1936 rate was in effect until the order of the commission (April 9, 1954) reviewed in this proceeding.
The parties to this proceeding have on 2 previous occasions brought their dispute in re gas rates in the city of Mt. Pleasant before this Court.
In 1948, Michigan Consolidated applied to the commission for a gas-rate revision without prior negotiations with the city. The city of Mt. Pleasant brought suit in equity in the Isabella circuit court to enjoin the company from proceeding with its application to the commission, alleging:
(1) That the specific provisions of the franchise did not allow the jurisdiction of the commission to be invoked unless and until good-faith attempts had been made to reach an agreement between defendant and plaintiff city with reference to the rates to be charged by defendant within the municipality and that defendant had not made any effort to obtain such an agreement.
(2) That in the 1948 proceedings before the commission defendant sought to have the new schedule of rates determined on the basis of costs for the furnishing of gas on a district basis rather than a local basis in violation of the terms of the franchise; and that defendant was about to discontinue the the furnishing of gas to certain central heating and industrial users within the city in disregard of its contractual obligation.
Following hearing on the merits before the circuit court a decree was entered embodying the principal relief sought by the plaintiff and restraining the defendant from indulging in the conduct of which plaintiff complained and from such decree defendant company appealed.
Justice Carr’s opinion for this Court (September 8, 1949) is reported in City of Mt. Pleasant v. Michigan Consolidated Gas Co., 325 Mich 501 (81 PUR NS 589). We sustained the injunction on the grounds that the franchise required negotiations between the parties for a revision of rates before either could make application to the commission.
In regard to the second point, that the rates to be determined by the commission should be based on a local basis rather than a district basis, we said (pp 519, 520):
“Obviously it was the position of the defendant that it should be permitted to base its schedules of rates in all of the communities referred to on costs of service throughout the entire district, rather than being required to treat each community separately. Plaintiffs urge that such course may not be followed, as to Mt. Pleasant, without violating the 1931 franchise. The trial court upheld such contention and enjoined the defendant, in any rate application that it might make to the commission in the future to fix rates applicable in the city of Mt. Pleasant during the life of the franchise, from including Mt. Pleasant in the contemplated district, and, also from including costs of manufactured gas, or capital investment in artificial gas plants, as a basis for any increase in rates in said city.
“Defendant contends that the decree should be modified in this respect, insisting that when and if the matter finally comes before the commission for determination, it should be entitled to ask that its rates within the plaintiff city be based on the cost of service throughout the district that it seeks to establish, including other communities as well as the city of Mt. Pleasant, and that necessary costs of producing artificial gas be considered. It is further claimed that the matter is primarily one for determination by the commission when its jurisdiction is invoked, and that the court should not undertake, by injunction, to direct, control, or limit the procedure of the commission in advance of action thereby. Defendant’s position in this respect is, we think, well taken. It may be assumed that if the parties are unable to reach an agreement with reference to changes in the rates to be charged by defendant within the city of Mt. Pleasant, and in consequence defendant thereafter invokes action by the public service commission, the proceedings before that body will be conducted in accordance with the statutory procedure, and with due recognition of the contractual rights of. the parties.”
After several months of unsuccessful negotiation between the company and the city endeavoring to agree on a gas rate, the company on August 6, 1952 (approximately 3 years after the above-mentioned Supreme Court opinion), made its second application to the commission for a revision of rates. Once more chancery proceedings were instituted by the city in the Isabella circuit court seeking a restraining order because the company was seeking a rate based upon its system-wide costs rather than on basis of costs and investments in the franchise area. The circuit court issued the restraining order and this Court reviewed that order in 1953 in Michigan Consolidated Gas Co. v. Isabella Circuit Judge, 337 Mich 188 (100 PUR NS 504). After deciding that negotiations endeavoring to fix rates on a system-wide cost of service constituted good-faith negotiations, this Court on June 22, 1953, directed the circuit court to forthwith vacate the restraining order, stating :
“Neither the circuit court nor the intervenor city should in anywise interfere with the gas company’s presentation of the matters in the later petition by the gas company, before the commission.”
Testimony in support of defendant’s application for rate revision on the matter now before this Court was introduced by the defendant company on August 19, 1953. The hearings concluded on December 4, 1953, and the' commission entered its opinion and order on April 9,1954.
The forthwith order of June 22,1953, of this Court was followed by this Court’s denial on August 4th of the city’s application for rehearing. The circuit judge failed to vacate the restraining order until October 6, 1953.
Plaintiff contends that because the Isabella circuit court had failed to comply with this Court’s direction to vacate the restraining order on August 19,, 1953, when the commission took proof in regard to defendant’s application, that therefore said evidence and proof were unlawfully received and any order or opinion based thereon was null and void. We cannot agree with such a, contention. The court’s delay was not caused by the defendant and did not prejudice the city. Plaintiff cites no authority to-sustain its contention in this regard and decisions of this Court support a 'contrary view. See Geddis v. Wayne Circuit Judge, 151 Mich 122; Hulan v. Wayne Circuit Judge, 159 Mich 605; and Affeldt v. Dudley Paper Co., 306 Mich 39.
The city and the company agree that the commission had authority to fix gas rates for Mt. Pleasant users. They disagree as to the extent of the commission’s authority. The city claims said authority is limited by the various provisions of the franchise.
The company does not agree with city’s contention and claim that the jurisdiction and authority of the commission is based:
1. On the statute giving the commission general jurisdiction to fix rates for gas utilities, subject only to the qualification that where there is a franchise the parties must consent that the commission so act.
2. Upon the provision that the statute imposes no-limitation on the scope of the commission’s authority and therefore does not authorize the parties to im pose limitations on said authority after invoking commission action.
3. On the provision that if the parties see fit to accept the commission’s jurisdiction, they accept it as fixed in the statute, as the statute gives the parties no right to add to it or detract from it.
PA 1919, No 419, § 4, as amended (CL 1948, § 460.-54'[Stat Ann § 22.4]), provides:
“In no case shall the commission have power to change or alter the rates or charges fixed in, or regulated by, any franchise or agreement heretofore or hereafter granted or made by any city, village or township.”
In City of Detroit v. Public Utilities Commission, 288 Mich 267, 276 (29 PUR NS 203), this Court said:
“If there is a valid agreement or franchise granted or made by the city, fixing or regulating rates or charges, the commission has no power to change or alter them, as rates fixed by agreement are not subject to control of the commission. Lenawee County Gas & Electric Co. v. City of Adrian, 209 Mich 52 (10 ALR 1328).”
The franchise provisions prevail and control in this case and the fact that the commission proceeded on this theory we believe is disclosed by the following statement in the commission’s opinion and order:
“But for the provisions of the franchise, the commission would have full jurisdiction over rates for natural gas within Mt. Plesant. PA 1919, No 419, § 4 (CL 1948, § 460.54 [Stat Ann § 22.4]); PA 1939, No 3, § 6, as amended (CLS 1952, § 460.6 [Stat Ann 1953 Cum Supp §22.13(6)]). Rates within Mt. Pleasant are exempt so long as the franchise provisions are effective to fix them. * * * In the instant matter the parties have been unable in ‘good faith’ to negotiate new rates and the matter has been properly submitted to us under the statute and the franchise for decision.”
Plaintiff claims that an examination of franchise sections 7, 8, 9, 10, 11, 12, 13, 14, 17, 18 and 19 discloses a franchise that requires parol evidence to determine the intent of the original contracting parties. Section 7 provides:
“The rates specified in this franchise shall remain in force throughout the term of this franchise, subject to the following provisions: At the end of 3 years and at any time thereafter from and after the date of this franchise, said rates with the mutual consent of said grantee, successors and assigns, and the city commission of the city of Mount Pleasantj Michigan, or its successors, may be reviewed, altered, and changed.
“In the event that said grantee, its successors and assigns, and the city commission- of Mount Pleasant, Michigan, or its successors cannot agree to an altered or changed rate then either party, namely said grantee, its successors or assigns or the city of Mount Pleasant, Michigan, acting by its duly authorized representatives, may apply to the Michigan public utilities commission (to whom jurisdiction to fix and alter gas rates in said city is hereby granted and conferred) to fix and establish rates in which case the rates so fixed, if just and reasonable, shall prevail.”
Section 8 is as follows:
“In the event said grantee, its successors and assigns, or any other person or corporation through the extraction of gasoline or any other product or by-product from the natural gas furnished under this ordinance, reduces the B.T.U. content of said natural gas as it comes from the well, by an amount in excess of 50 B.T.U. (British thermal units per cu. ft.) then the rates charged by said grantee, its successors or assigns, for such gas shall be reduced proportionately.”
Section 9 establishes the following provision:
“In no event shall the rates charged by the grantee, its successors or assigns, for gas furnished to the inhabitants of said city, exceed the rates charged by said grantee, its successors or assigns, for like service in any other city or community in which the .grantee, its successors and assigns, may furnish gas, within a distance of 30 miles from the corporate limits of said city of Mount Pleasant, Michigan.”
Section 10 claimed by plaintiff to be very important is as follows:
“Said grantee, its successors and assigns, shall bring or shall cause to be brought natural gas to the ■corporate limits of said city, and on or before September 1, 1931, shall be furnishing natural gas to the inhabitants of said city in substantial compliance with the terms and provisions of this ordinance. Time is deemed to be the essence of this grant and the failure of said grantee, its successors and assigns, to procure and distribute natural gas to the inhabitants of said city within the time above stated, shall at the option of said city commission, work a forfeiture of this entire franchise. Should natural .gas be procured and distributed in said city within the time above stated and at some future date, due to the exhaustion or depletion of the supply of natural gas, said grantee, its successors or assigns, are nnable to procure and distribute same and are able fo convince said city commission or its successors that such failure is not due to the neglect or default ■of said grantee, its successors or assigns, then said .grantee, its successors or assigns, at the option of said city commission or its successors, may be allowed to change over and substitute artificial gas, or a mixture of artificial and natural gas, and furnish same to the inhabitants of said city. Should such change and substitution be allowed by said city commission or its successors, then the rates to be charged the inhabitants of said city for such artificial gas or mixture, shall he fixed and established by the mutual agreement of said city commission or its successors and said grantee, its successors or assigns. If said parties cannot agree on a just and reasonable rate, and said franchise has not been declared forfeited by said city commission or its successors, then either party, namely said grantee, its successors or assigns, or said city of Mount Pleasant, Michigan, acting by its duly authorized representatives, may apply to the Michigan public utilities commission (to whom jurisdiction to fix and alter gas rates in said city is hereby granted and conferred), to fix and establish rates for said artificial gas or mixture of artificial and natural gas, in which case the rates so fixed, if just and reasonable, shall prevail.”
Section 11 provides:
“Grantee may charge for natural gas for industrial purposes, such rates as may be mutually agreed upon by the city of Mount Pleasant and said grantee.
“In the event of their inability to agree on such industrial rates, then said rates shall he such as may be fixed by the Michigan public utilities commission, upon the application of either party.”
Sections 12, 13, 14, 17, 18 and 19 do not mention rates in any way. Section 12 restricts the city from regulating or controlling the utility in violation of terms of the franchise. Section 13 legally obligates the company to supply tie natural gas requirements to the inhabitants of the city of Mt. Pleasant. Section 14 provides that the company is legally bound to faithfully perform all the terms and conditions of the agreement and that such performance shall be in lieu of all license fees and charges which the city might otherwise levy or impose. Section 17 provides for the changing over from artificial to natural gas appliances without charge by the utility. Section 18 sets forth the company’s agreement to extend its lines and mains to serve new customers of gas in Mt. Pleasant and to install services from the main to the curb lines free of charge to the consumer. Section 19 provides that all terms, conditions and requirements of chapter 8 of the city charter apply to the franchise with the same force and effect as though said chapter 8 were specifically set forth in the franchise. The city cites in this regard section 15 of chapter 8 of the city charter providing for the right •of inspection to insure proper observance by the ■company of all conditions imposed by the franchises entered into between the city and utilities.
Plaintiff city states:
“The foregoing sections of the franchise (8, 9, 10, 11, 12, 13, 14, 17, 18, 19) are clear and unambiguous. Each is patently separate and independent of the ■other,- and independent of section 7.”
The plaintiff city urges this Court to “consider the legal implications of each section of this franchise, •as we contend that the reading of the franchise as a whole implies, as a matter of law, that rates in Mt. Pleasant can only be fixed on a local basis.”
.Plaintiff cites Pierson v. Davidson, 252 Mich 319, 325, which states: “Ambiguous and uncertain terms in a contract may always be explained by parol testimony,” and Weber v. Wilson, 240 Mich 462, 464, holding that if the language of a written agreement '“is capable of being understood in more than one sense, then it must be construed in the light of the circumstances existing at the time it was signed and delivered.”
Plaintiff contends that the testimony of its witnesses Messrs. Ryan, Lyon and Willman clearly shows that it was the intent of the city and the commission at the time the franchise was negotiated that future rates should be based on a local operation rather than a district or integrated system operation.
The city complains that “neither the intervenor nor the staff cross-examined any one of these witnesses nor did the commission, its staff or intervenor offer any testimony in rebuttal.” Plaintiff insists that the commission abused its discretion because it gave no weight or consideration to said testimony.
The commission in its opinion and order refers to this testimony as follows:
“The view urged by Mt. Pleasant is that the franchise requires that rates within the city of Mt. Pleasant be fixed solely upon what is denominated as a ‘local investment’ basis. The franchise itself is silent on this matter. Mt. Pleasant, however, claims a course of conduct on the part of the original parties leading to the conclusion that they contemplated that rates be fixed on the basis of system operations within Mt. Pleasant. It ivas natural that until 1942 (date of acquisition by Consolidated) rate making would be on the basis of the system in use when natural gas was first distributed in the city. This was the sole system used for furnishing natural gas in Mt. Pleasant and hence ivas the only system which could be considered.
“As indicated by the city’s own witnesses, however, negotiation on such rates were never fixed on the basis of the company’s investment and operation only within Mt. Pleasant. Rather, they were fixed on the basis of the entire system then required to produce, transport and distribute the gas in Mt. Pleasant, including the gas fields, the gathering system, the transmission lines and distribution within Mt. Pleasant, as well as distribution and transmission facilities in Clare and Rosebush, communities entirely separate from Mt. Pleasant, but a part of the. integrated system then in use. This is, in our opinion, no support for the city’s present legal contention that the franchise requires rates to be fixed on the basis of the operation of property located solely within the boundaries of Mt. Pleasant. Rather, it supports the view that it was always self-evident that unlike an artificial gas system located wholly within a municipality, a natural gas system, utilizing large scale facilities located outside the municipality to secure and transport its gas, must be considered on the basis of the whole system.”
The commission in its opinion and order comments upon the fact that neither party to the franchise in 1931 could contemplate the situation as it exists today ivhere natural gas produced in fields located in Kansas, Texas and Oklahoma would be transported hundreds of miles and distributed to gas users in Mt. Pleasant and states:
“It is impossible now to predict what the parties would have provided, or hoAv they would have acted, if they but could have envisaged the present factual situation and therefore, their previous conduct on the basis of entirely different physical facts, could neither factually nor legally form the basis for reading into the contract terms which do not in fact exist.
“Under such circumstances, the only valid guideposts are the provisions of the contract itself.”
The city and the company differ in construing what we said in our opinions in 1949 and 1953 and reported in City of Mt. Pleasant v. Michigan Consolidated Gas Co. and Michigan Consolidated Gas Co. v. Isabella Circuit Judge, supra.
Both of these opinions we believe clearly show that this Court Avas cognizant of the fact that a dispute existed then as now in regard to the inclusion of costs of service to 82 other communities and whether the franchise allowed said costs to be considered in determining cost to users of gas in Mt. Pleasant. In both of these opinions we meant to say and believe did say that the franchise did not prohibit the com mission from considering district costs in determining costs to gas users in Mt. Pleasant.
Once more we have given this matter careful consideration.
This Court in Michigan Chandelier Co. v. Morse, 297 Mich 41, 49, said:
“The question before us is as to the legal effect of the words used in the assignment, rather than a question of construction or interpretation of a contract. The words themselves are not ambiguous or uncertain. We must look for the intent of the parties in the words used in the instrument. This Court does not have the right to make a different contract for the parties or to look to extrinsic testimony to determine their intent when the words used by them are clear and unambiguous and have a definite meaning.”
We have called attention previously that plaintiff admits that the sections of the franchise that it relies upon are clear and unambiguous. The commission was correct in its statement, “The franchise itself is silent on this matter.”
In regard to the oral proof we cannot agree with plaintiff that the record discloses that the commission failed to give consideration to said testimony but hold in that regard that said oral testimony was not necessary to determine the rights of the parties under the franchise. The commission was correct in its statement that “Under such circumstances, the only valid guideposts are the provisions of the contract itself.”
This Court again finds that the franchise gave to the commission the right to determine, fix and establish rates that are just and reasonable and in making said determination could consider the question both from a local and a district basis. We find no error in the commission’s determination that a just and reasonable rate for gas users within the city of Mt. Pleasant should be established upon a district base.
Section 10 of the franchise provides that the gas company can only furnish the city with artificial gas or a mixture of artificial and natural gas after first convincing the city that failure to distribute natural gas is not due to the neglect or default of the company and secondly after so convincing the city obtaining the city’s consent. The record discloses that no consent has ever been asked for or obtained by said company since the franchise became operative in 1931. The commission allowed as one of the items of cost the costs of maintaining and operating manufacturing facilities located outside of the city of Mt. Pleasant and plaintiff contends the commission exceeded its authority in including said costs in determining the rate that should be charged for gas in the city of Mt. Pleasant.
Section 13 of the franchise gives to the company the right to extend pipe lines and sell gas to other cities and communities but provides “such sale shall in nowise affect the obligation of the grantee, its successors or assigns, to maintain and furnish sufficient pressure of gas for the use and benefit of the inhabitants of the said city of Mt. Pleasant, Michigan.”
In the hearing before the commission the plaintiff introduced city’s exhibit No 28 to show that artificial gas is being manufactured by defendant in large amounts with over $13,000,000 capital investment. This exhibit No 28 disclosed the following:
“Capital Investment .......... $13,690,363
“Materials and Supplies ........ 1,600,000
“Operation and Maintenance..... 1,075,326”
Consolidated owns and operates an integrated gas system serving 7 separate districts. One of these districts, known as the Mt. Pleasant district, consists of the cities of Mt. Pleasant and Clare, the unincor porated village of Rosebush, and adjacent areas. The others are Detroit, Grand Rapids, Muskegon, Ann Arbor, Greenville-Belcling and Big Rapids.
Consolidated purchases most of its natural gas from 2 interstate pipe-line companies, namely, Michigan-Wisconsin Pipe Line Company and Panhandle Eastern Pipe Line Company.
The Panhandle gas is received in the Detroit and Ann Arbor district while the Michigan-Wisconsin gas is delivered to Consolidated at the Austin gas-storage field located in Mecosta county, and various other points in Consolidated system in Michigan.
The city of Mt. Pleasant receives its principal gas supply through lines connecting the Austin storage field and also the Detroit and Ann Arbor districts. It also receives gas from other lines connecting the Austin and the Lincoln-Preeman storage fields.
Mr. Paulin, a company witness, testified:
“There is always gas in this 24-inch line moving either into or out of the Lincoln-Preeman field. Some of the gas is taken from this line by the 4-inch line leading from the vicinity of the Lincoln-Preeman field to the city of Clare. Some of the gas supplied by this line is used in Clare. And, the remainder is transported south to the village of Rosebush and the city of Mt. Pleasant. Thus the city of Mt. Pleasant has 2 sources of gas supply, which insures an adecúate gas supply to the residents of Mt. Pleasant in the event of a pipe line failure in either line.
“Q. I call your attention to the 4-inch line which leads from the Austin field to the Lincoln-Preeman field and parallels the 24-inch line to which you have-just referred. Is this line available for service to-the city of Mt. Pleasant?
“A. Yes, it is.”
Mr. Spindle, in charge of production and pipe lines for the company, testified as follows:
“A. We have had adequate supplies for Mt. Pleasant at all times.
“Q. That is of natural gas?
“A. Yes, sir, of natural gas.
“Q. And you still have today; isn’t that correct?
“A. Yes, sir.
“Q. Without the need of the furnishing of any manufactured gas ?
“A. Yes, sir.”
The fact that the city of Mt. Pleasant has very little or no reason to anticipate an emergency natural gas shortage in the future is concurred in by the company in its brief when it states:
“There is another reason why no reference to section 10 was necessary to sustain the action of the commission. Section 10 deals solely with the situation which would exist if the company sought to furnish its customers in Mt. Pleasant with either manufactured gas or mixed natural and artificial gas, ‘due to the exhaustion or depletion of the supply of natural gas.’ The rates fixed here by the commission ■do not apply to that sort of situation because that situation does not exist. The company’s supply of natural gas is not exhausted or depleted. The company is now serving natural gas to Mt. Pleasant and there is no reason to expect it will do otherwise during the term of the franchise. Consequently section 10 has nothing to do with the present situation.”
The company endeavors to justify the commission’s inclusion of costs of maintaining the company’s gas-manufacturing facilities with the following statement found in its brief to this Court:
“The commission found that it was reasonable to include the costs of maintaining the company’s gas-manufacturing facilities in the system-wide costs of service. This was done solely because these facilities are maintained to temporarily insure an ade quate supply of gas for the entire system, including Mt. Pleasant, in case of an emergency such as a line break in the supplying pipe lines. It was not done because there was any proposal to furnish manufactured or mixed gas to Mt. Pleasant or that the rates to be fixed were for either mixed or manufactured gas, which is the only situation covered by section 10. The rates fixed in the commission’s order are for natural gas service only, even though they do include a small allowance to maintain manufacturing facilities to be used temporarily in case an emergency interrupts or reduces the supply of natural gas.”
The commission in its opinion and order states:
“As a part of its integrated natural gas system, Consolidated maintains gas-manufacturing facilities in various cities for use in event of an emergency affecting its natural gas supply. None of these facilities are located in the city of Mt. Pleasant. However, through its transmission system the benefits resulting from the operation of these facilities accrue to all parts of the system, including Mt. Pleasant, to overcome an emergency gas shortage and are not limited to areas in which the manufacturing facilities are located.
“Thus the city of Mt. Pleasant is an integral part of the gas system of Consolidated and, like all other communities in it, receives the benefits thereof.”
In 1949, in deciding City of Mt. Pleasant v. Michigan Consolidated Gas Co., supra, this Court stated (pp 517-519):
“Under the terms of the franchise defendant was obligated to serve new consumers of gas in the city, and, while it had the right under section 13 to extend its pipe lines to other communities and sell and distribute gas therein, it could not, without violating its contract, thereby destroy its ability to perform its undertaking with plaintiff city. In commenting on the situation, the trial court said in part:
“ ‘The court has heard considerable testimony concerning the reserves of natural gas in the areas' supplying the Mt. Pleasant district, and the court believes that counsel for defendant admits that there is sufficient natural gas to supply the needs of the said city for a period of time, at least until the Michigan-Wisconsin pipe line is scheduled to be completed in April of 1950, however, in any event the court finds as a matter of fact that such is the condition. Further the court believes that the defendant sets forth that it intends to supply natural gas and is able to supply natural gas to the said city for all its needs and not to substitute manufactured gas or a mixture of natural and manufactured gas. The purpose of sections 10 and 13 is to secure to the city of Mt. Pleasant an even pressure of natural gas as long as the defendant company is able to furnish the same and permitting the defendant company to extend its lines and mains to service other communities, but ■only so long as it would in no way affect the maintenance of a sufficient pressure of gas for the use and benefit of the inhabitants of the city of Mt. Pleasant, Michigan, thus insuring to the said city of Mt. Pleasant not only the benefit of natural gas but also sufficient supply to meet the needs of its inhabitants.’
“The record in the case supports the finding of the trial court as to the availability of natural gas to supply the needs of consumers in the plaintiff city. The correctness of such finding does not appear to be directly challenged. Under the circumstances defendant is not entitled, in view of the obligations assumed by it in the acceptance of the franchise, to refuse to.continue service to the consumers in question for central heating and industrial uses.”.
While the record would sustain the commission’s decision to include items of cost of maintaining and operating gas-manufacturing facilities when determining cost for other communities in the district other than Mt. Pleasant, said record will not sustain including such an item in determining cost for Mt. Pleasant. Mt. Pleasant occupies a different position in this regard than the other cities and villages within the district because of a franchise that guarantees to Mt. Pleasant during the life of the franchise a priority upon the supply of natural gas. The commission rates should be revised eliminating therefrom the items of cost included for capital investment or operational expense of gas-manufacturing facilities.
There is a period each year during the spring, summer and fall seasons when there is a diminished need for gas for house-heating purposes. Consequently, during this period, a considerable volume of gas is available for sale in excess of requirements by the customers. To meet this situation, the company asked, and the commission granted in the rate schedules, a special industrial large volume rate. This is generally known as the interruptible service and a lower rate is offered than is provided in the large volume rate schedule which is not subject to interruption. In order to take advantage of this rate, industries must maintain other facilities to use when this gas is not available for them.
Plaintiff • complains that the commission violated the terms of the franchise by providing in regard to special industrial large volume rates as follows.*
“Gas purchased hereunder shall be used only as a fuel for general commercial and industrial uses; * * * The use of gas under this schedule shall be conditioned on and subject to the requirements of other present and future firm customers of the company and * * * the company may * * * limit, curtail, or discontinue the supply of gas to customers ; * * * and, in the sole judgment of the company, * * * the company may immediately curtail or interrupt service hereunder, * * * to the extent, and for such duration as the company in its sole judgment shall deem necessary.”
This rate is properly entitled a special industrial large volume rate and no one is compelled to use this service. It is offered to those who can arrange their facilities to use this interruptible gas service at a lower rate. It does not violate the terms of the franchise.
Plaintiff asks this Court to find that the commission erred as a matter of law by completely ignoring any mention of that part of section 8 which provides that if the company “reduces the B.T.U. content of said natural gas as it comes from the well, by an amount in excess of 50 B.T.U. (British thermal units per cu. ft.) then the rates charged by said grantee, its successors or assigns, for such gas shall be reduced proportionately.” Plaintiff states that nothing in the company’s direct testimony or its exhibits contains any information showing the B.T.U. content of natural gas at the wellhead.
An examination of the record discloses that there is nothing that even tends to show the content of the natural gas at the wellhead or any reduction in the B.T.U. content of the gas furnished in Mt. Pleasant.
Plaintiff did not offer or seek to obtain information on this question at the hearing before the commission and, therefore, this Court will not sustain plaintiff’s contention that the commission committed error by failing to mention this application of section 8 of the franchise in its opinion.
Plaintiff calls attention that the commission’s order states:
“Rules applicable:
“Service under this schedule shall be subject to the rules and regulations of the company.”
Plaintiff insists that this order should also have read and provided that service is “also subject to franchise ordinance No 227 of the city of Mt. Pleasant, Michigan.”
"We cannot conclude that the public service commission intended to encroach upon the franchise rights of the city, and its failure to include this provision requested by plaintiff shall not be considered as evidence of such intention.
The final 2 reasons offered by plaintiff why a writ ■of prohibition or mandamus should be granted deal with the question as to whether there was adequate proof to sustain commission’s rate increase and as to whether a fair hearing was accorded to the city.
In regard to the question of a fair hearing, we do not believe the record sustains plaintiff’s contention that it was denied such a hearing.
After raising the point in its brief in regard to the insufficiency of the proof to sustain a rate inurease, plaintiff states: “We are not discussing this point in detail for the reason same involves questions of fact.”
In its petition to this Court for a writ of prohibition or mandamus, plaintiff, in paragraph 12, stated as follows:
“Petitioner further avers that the issues raised by this petition are all issues of law, and primarily involve either the interpretation, clarification or confirmation of the opinion of this Court in [City of Mt. Pleasant v. Michigan Consolidated Gas Co.] 325 Mich 501. That an appeal to the Ingham circuit court would serve no useful purpose, particularly because said gas company previously appealed the decisions of the circuit court in the 2 prior cases involving the same subject matter, and particularly because the issues of law involved herein must finally be determined by this Court in view of the several statements of defendant commission in the record that if petitioner conld not agree with said commission’s various rulings on questions of law, it could take an appeal.”
Plaintiff in its brief under the title the propriety of the remedy states:
“We appreciate that a writ of mandamus or a writ of prohibition from this Court is a matter of grace or 'discretion. * * * The issues raised by this petition are all issues of law. * * * The issues of law herein must in any event be finally determined by this Court * * * so that there is an end to this litigation.”
The reasonableness of the rates fixed by the commission involves a question of fact and is not properly in issue in this case.
The relief prayed for by plaintiff in its petition and in its brief is denied, with the exception of that requested in paragraph 11 (J) which reads:
“That said opinion and order gives no recognition whatever to the contractual and substantive right of petitioner, pursuant to section 10 of the contract, to include manufactured gas and manufactured gas facilities in computing rates, only with the express official consent of petitioner.”
This matter is remanded back to the commission to make corrections in the rate schedule according to the provisions of this opinion. No costs, neither party having fully prevailed and a public question being involved.
Carr, C. J., and Btjtzel, Sharpe, Boyles, Reid, and Dethmers, JJ., concurred.
Smith, J., took no part in the decision of this case. | [
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Sharpe, J.
On February 27, 1954, plaintiff, Virginia H. Becker, filed her bill of complaint in the circuit court of Wayne county to void a mortgage executed by plaintiff and her husband upon certain real estate occupied by them as their home. It appears that Paul M. Becker, husband of plaintiff, became indebted to Morgan P. Underwood in the amount of $28,817.44. On January 16, 1951, the indebtedness was reduced to a judgment in the Wayne county circuit court. On October 28, 1952, plaintiff and her husband entered into a written agreement with Oscar E. Waer, administrator of the estate of Morgan P. Underwood. The agreement entered into contained both a mortgage and a settlement agreement. The mortgage was given on the home of plaintiff and her husband and secured the judgment. The ninth paragraph of the mortgage agreement gave the mortgagor, Paul M. Becker, the opportunity to settle the judgment by paying the sum of $7,500 as follows: $500 six months from the date of the agreement plus interest, $500 plus interest 1 year from the date of the agreement, and $500 or more each year thereafter plus interest until paid in full. The agreement also provided:
“If said instalments of principal and interest are made as herein provided and time is of the essence, mortgagee agrees that no writ of execution or garnishment or other efforts will be made to collect or enforce the aforesaid judgment, and if such instalments of principal and interest are made as herein provided when the sum of $7,500 plus interest has been fully paid mortgagee will execute a satisfaction of said judgment. In the event Becker shall default in the terms of this conditional settlement agreement then mortgagee’s agreement to compromise and accept less than the full amount of the aforesaid judgment plus interest thereon shall be of no further force and effect and shall terminate and the aforesaid judgment and the within mortgage maybe enforced by any method permitted by law and any payments made in accordance with this agreement shall be credited first upon the interest and the balance upon the principal of said judgment.”
No payments were made on the mortgage. The mortgage agreement was assigned to Northern Trust Company of Illinois and Nettie Moore Underwood, trustees under the will of Morgan P. Underwood, deceased, which instituted foreclosure proceedings.
In her bill of complaint to cancel the mortgage, plaintiff alleges that at the time of the execution of the mortgage the premises covered by it were occupied by her and her husband as their homestead; that she was not represented by an attorney and that she received no consideration for the execution of the mortgage.
In its answer to plaintiff’s bill of complaint, defendants admit that prior to the execution of the mortgage plaintiff was not indebted to Oscar E. Waer, administrator of the estate of Morgan P. Underwood, deceased, or to Morgan P. Underwood in his lifetime, but assert that by signing the agreement and mortgage she became jointly liable with her husband for the amount of said judgment and interest.
The cause came on for trial, and on November 17, 1954, a decree was entered setting aside the proceedings to foreclose the mortgage and enjoining defendants from taking any further proceedings in connection-therewith. Defendants appeal and urge:
“The court erred as a matter of law in entering a decree in favor of plaintiff and against defendants because neither plaintiff’s bill of complaint nor the proofs state or support a cause of action.
“The court erred in holding as a matter of law that the mortgage agreement * * * is totally without consideration and is invalid as to plaintiff and is void.
“The court erred in its decree in holding that Virginia H. Becker and Paul M. Becker are the owners of the land and premises in fee simple by title perfect as against the defendants in this suit.”
It is the rule in this State that a wife may join with her husband, and be bound thereby, in a mortgage of entireties property to secure the debt of her husband, without any special consideration or benefit running to her or to her estate, see Farmers & Merchants National Bank & Trust Co. v. Globe Indemnity Co., 264 Mich 395; Binne v. Bench, 302 Mich 327.
It is urged by plaintiff that a wife cannot legally join with her husband in a mortgage of entireties property to secure her husband’s debt where there is no consideration running to her. Plaintiff relies on Dowagiac National Bank v. Maier, 285 Mich 1. In that case defendant, Mrs. L. J. Maier, was the owner of a hotel. She signed a note to secure a debt of her husband. It was there held that the promise made by defendant to pay her husband’s debt was not a contract relating to or benefiting her separate estate. It is to be noted that decision in the above case was founded on CL 1929, § 13057, now CL 1948, § 557.1 (Stat Ann §26.161), in view of the fact, that defendant was the sole owner of the property. In the case at bar plaintiff and her husband were owners of the real estate as tenants by the entireties.
In Rossman v. Hutchinson, 289 Mich 577, 588, we quoted with approval Professor Raymond Van Syckle, 5 Detroit Law Review, 69, 79, 80, as follows:
“ ‘Any ordinary consideration will support this joint contract. It need not be a benefit to the married woman or her estate, nor even a benefit to the entireties estate. See Montz v. Reutter, 268 Mich 357, where a joint contract to repay a personal loan to the husband was upheld; Greening v. Wallace, 257 Mich 343, where a joint promissory note was given in renewal of defective notes previously given by the husband and wife. * * * Kies v. Walworth, 250 Mich 34, where a joint note was given in consideration of the release of a mortgage on entireties property; and McDougall v. Henderson, 260 Mich 71, where the contract was for the joint purchase of land.’ ”
Also, see Atwood v. Schlee, 269 Mich 322; Binne v. Bench, supra.
In our opinion the fact that Paul M. Becker and wife, plaintiff herein, were given the opportunity of settling a judgment against plaintiff’s husband in an amount in excess of $28,000 for the sum of $7,500, and no writ of execution or garnishment was to be made to collect or enforce the judgment if instalments of principal and interest were made as provided by the agreement was sufficient consideration to support the mortgage agreement.
The decree is reversed and plaintiff’s bill of complaint dismissed, with costs to defendants.
Carr, C. J., and Butzel, Boyles, Reid, Dethmers, and Kelly, JJ., concurred.
Smith, J., took no part in the decision of this case. | [
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Dethmers, J.
Defendant J. A. Utley Company, the employer, appeals from á circuit court judgment in plaintiff’s favor for unemployment compensation covering a 26-day period. The sole question before the'referee, appeal board and circuit court, and the only one raised in defendant’s statement of questions involved here, goes to plaintiff’s eligibility for benefits under' section 28(a) and- (c) of the act (CLS -Í952, §421.28[a], [c], Stat Ann 1953 Cum Supp § 17.530[a], [c]). Was plaintiff, during that' period of unemployment, seeking work and able and available to perform full-time work of a character generally similar to work for which he had previously received wages, which, under the language of the statute, is requisite to eligibilty ? The proofs show that at the outset he registered at an employment security commission office and thereafter continued to report for work there and at' his union hall and, in addition, personally sought such work during the 26-day period by contacting the business agents of his union, both in his home city and in Detroit, and by applying for work at 3 manufacturing-plants where he was told that he was not needed. He terminated his unemployment by becoming self-employed in building small homes and garages.
The trial court held plaintiff eligible for benefits. We think that under the proofs above noted the court-was correct in- holding,-in effect, that the finding of the appeal board that plaintiff had- not shown that he had been available for or seeking work and, hence,- that he had not established eligibility for benefits under the statute was contrary to the great weight of the evidence.
Defendant employer urges, however, that .the record presents the question whether a claimant is eligible for benefits under the act when he has restricted his availability for work to union, work. This it predicates on the following proofs: that plaintiff was a member of a carpenters’ union and was an experienced carpenter as well as.millwright; that during the period of his unemployment want ads for carpenters appeared in local newspapers, to which he responded; that he inquired whether these were union jobs and was told that they were not and that that was all he asked with respect thereto; that the business agent of his union told him that he could not take nonunion work. Were these all the proofs in the record concerning the advertised jobs the question urged by defendant employer might be pertinent. We need not pass on it here, however, inasmuch as proofs adduced on plaintiff’s behalf show the following: that the advertisements did not offer work or jobs at fixed wages, but “commission deals,” in which 3 or 4 carpenters were expected to combine as a crew, then bid on a job and assume the risk of whether they would make any money, depending on circumstances; that experience had demonstrated that these jobs were all “substandard rates.” Plaintiff’s previous employment had been for fixed wages. The offerings could scarcely be considered to be for work of a character generally similar to work for which plaintiff had previously received wages, as contemplated by section 28(c), in view of the legislative intent expressed in section 29 of the act, as follows:
“Notwithstanding any other provisions of this act, no work shall be deemed suitable and benefits shall not be denied under this act to any otherwise eligible individual for refusing to accept new work under any of the following conditions: * * ' * (b) if the remuneration, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality.” CLS 1952, §421.29 (Stat Ann 1953 Cum Supp §17.531).
The character and suitableness of the work offered in the advertisements, not the fact that it was nonunion, afford the basis for decision here. ■
Affirmed, with costs to plaintiff.
Carr, C. J., and Butzel, Smith, Sharpe, Boyles, Reid, and Kelly, JJ., concurred.
PA 1936 (Ex Sess), No 1.—Reporter. | [
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Butzel, J.
E. L. Kramer, plaintiff, filed with the workmen’s compensation commission an application for hearing and adjustment of his claim. Although the Charlevoix Beach Hotel is also made a defendant, the real defendant is the Travelers Insurance Company, referred to herein as Travelers. It resists plaintiff’s claim.
In 1946, plaintiff and Ms wife, Irene, with their joint funds purchased the Charlevoix Beach Hotel on land contract and subsequently obtained a deed running to them as husband and wife, but subject to a mortgage which they executed as husband and wife to a local bank where they also maintained a joint bank account. On January 3, 1950, they filed an assumed-name certificate, stating that they were conducting the business as the Charlevoix Beach Hotel. The profits or losses were to be equally divided. The entire arrangement had all the characteristics of a partnership, except for the facts that the liquor license for the hotel was taken out in the name of plaintiff alone and there appeared on the hotel stationery the words “E. L. Kramer, Owner and Manager.”
In 1946, plaintiff and his wife took out a workmen’s compensation policy with Travelers. It was renewed from year to year, the policy in force at the time of the accident running from June 1, 1951, to June 1, 1952. On July 15, 1951, plaintiff met with a very serious accident. He fell down the stairs, struck his forehead and nose against a table and suffered, among other things, a subdural hematoma. He required hospitalization and after several weeks was removed to the University Hospital at Ann Arbor where he underwent major brain surgery. At the time of the hearing he had not yet fully recovered and was unable to return to his former duties. He filed an application for workmen’s compensation which the deputy commissioner granted, and on appeal the majority of the commission awarded compensation at the rate of $26 per week for total disability from July 16, 1951, to the time of the' hearing and thereafter until further order of the commission. He was also awarded a large sum for very heavy medical expenses. Travelers has appealed from the award by the commission. It offered and still offers to rethrii to plaintiff an amount equal to all premiums paid.
While they differed on the point of law involved and hereafter discussed, all 3 commissioners found that a partnership existed between plaintiff and his wife. To' support its contention to the contrary Travelers also points to the fact that plaintiff and his wife did not file a copartnership certificate. However, CL 1948, § 449.101 (Stat Ann §20.111), clearly states that a partnership is not required to file a certificate of partnership with the county clerk If a Certificate of doing business under an assumed náme is filed with him. The policy itself described the Charlevoix Beach Hotel as a copartnership. At the most it became a question of fact and we see no reason to disturb the finding of the commission. Such' a finding, based on competent evidence, is conclusive in the absence of fraud. CL 1948, § 413.-12 (Stat Ann 1950 Rev § 17.186); Babcock v. General Motors Corporation, 340 Mich 58. The principal issue is one of law.
Under the workmen’s compensation act, CL 1948, § 411.7, subd 2, as amended by PA 1949, No 284 (Stat Ann 1950 Rev § 17.147, subd 2), an “employee” entitled to compensátion was defined as:
. “Every person in the service of another, under any contract of hire express or implied, including aliens, including working members of partnerships, receiving wages irrespective of profits from such, including any person insured for whom and to the extent premiums are paid based on wages, earnings or profits. * *, ■*
“Any policy or contract of workmen’s compensation- insurance may, by indorsement, exclude coverage as to any 1 or more named partners. No partner so excluded shall be subject to the provisions of this act.”
The italicized portion represents an amendment enacted as PA 1949, No 284. We are here faced with the effect of this amendment and the provisions of the policy upon plaintiff’s right to compensation, in light of the established fact that he did not receive, as such, wages irrespective of profits. One of the commissioners held that as plaintiff did not receive wages irrespective of profits, he was not entitled to compensation. The majority of two, however, held that plaintiff was entitled to compensation stating that the “proofs offered show that premiums were paid for workmen’s compensation insurance based upon $3,600 of plaintiff’s annual earn mgs” and therefore he was an “employee within the statutory definition.” While it is true that the premiums were “based” upon what the commission held were annual earnings, the annual earnings, if any, were not shown except in plaintiff’s application to the commission. Plaintiff and his wife both testified that in fact they received no wages during this entire period.
• Does the. 1949 amendment obviate the necessity for showing wages irrespective of profits heretofore required in order to recover! See Thurston v. Detroit Asphalt & Paving Co., 226 Mich 505. We have held that this amendment of itself does not operate to bring ah independent contractor within the act. Scott v. Alsar Company, 336 Mich 532. The words of the amendment must be given meaning. Construing the statute as it th'en stood and giving all of its words some meaning it must be‘ said that working partners, whether they received wages irrespective of profits, or whether their premiums are based on “earnings or profit's,” were within the statutory definition and can recover unless specifically excluded from the policy by indorsement. That such was the intent of the legislature becomes clear when relevant facts are examined.
In the' operation of a partnership it is difficult to tell with exactitude what the profits for the ensuing year will he. Siich a determination can only be accurately made at the end of the year. Premiums on prepaid insurance, however, in the first place- must be based upon a sum certain. It is therefore necessary to., fix. at a specific figure the amount of-remuneration upon which at least a minimum premium will be based. ' “
Attached to the basic policy were provisions applicable to those insured in Michigan. One such was the following: - -
“7. If this employer is a partnership, the remuneration of each of its partners shall be included at the fixed amount of $2,000 per annum and premium shall be paid thereon unless such partner is designated in the declarations or by indorsement as excluded.”
Effective June 1,1951, the figure of $3,600 was substituted for the $2,000. Plaintiff paid premiums based on these figures for the 5 or so years that he thought he was insured. In addition the policy provided :
“2. The premium is based upon the entire remuneration earned, during the policy period, by all employees of this employer engaged in the business operations covered by the policy.”
These stipulations and figures were not arrived at out of thin air. The provisions of the insurance code, made specifically applicable to workmen’s compensation insurance, require insurers, either individually or through rating bureaus, to file “every manual of classifications, every manual of rules and rates,” et cetera, with the insurance commissioner. CL 1948, § 545.4 (Stat Ann 1953 Cum Supp § 24.567 [4]). It is further provided in that same section that every filing “shall indicate the character and extent of the coverage contemplated.” Michigan Amended Rule 7 of section 13 of the workmen’s compensation and employer’s liability manual on file with the insurance commissioner provides as follows:
“(7) Copartnerships. Where an employer is a copartnership all partners are covered by the policy except the partners who are specifically excluded by indorsement of the policy. The payroll of each partner not specifically excluded, for the purposes of pre mium computation, shall be the fixed amount of $3,600 per annum.”
The Travelers must have adopted this rule, for not only is their above-quoted policy provision similar to it, but also paragraph 7 of the basic policy itself herein involved refers specifically to the “rules of the manual of rates in use by the company upon the date of the issue of this policy.”
Thus Travelers with the approval of the insurance commissioner set the remuneration earned by plaintiff and his wife at a certain figure without regard to whether or not an amount more or less than that figure was in fact earned by the insured. It drafted the policy. Its agents were in a position to know the financial condition of the Charlevoix Beach Hotel, as Hawley and Bridge, the agents who sold plaintiff the insurance, were cashier and president respectively of the bank where plaintiff did his business. Travelers accepted premiums “based” on these figures presupposed to be plaintiff’s remuneration. The rule adopted and referred to by the cofiipany, to repeat, stated that “where an employer is a co-partnership all partners are covered by the policy except the partners who are specifically excluded by indorsement of the policy.” Such a broad undertaking leaves no room for the defense here interposed that plaintiff is not covered because he earned no wages. The fact that the broad term “remuneration” was used rather than “wages” tends to indicate that the company was complying with the all-encompassing “wages, earnings or profits” language of the amendment.
Travelers has objected to the consideration of the manual of rules, rates and classifications filed with and accepted by the insurance commissioner on the ground that no mention of them was made at the hearing before the commission or in the briefs first filed in this Court. However, this Court notified respective counsel to file briefs on this particular subject and they did so. We take judicial notice of these rules. This no longer becomes a question of fact, but one of law, and we see no reason to refer the case back to the commission for introduction of the manual filed as required by statute and referred to in the policy.
As a matter of practice partnerships do not generally distinguish between forms of remuneration to the partners. Money is taken out, as was done in this case, when needed, without regard to whether it actually is “wages,” “earnings,” or “profits.” The legislature apparently enacted the amendment to broaden and conform the coverage of the act, insofar as partners are concerned, to this manner of doing business in the partnership form. To decide otherwise would be to make compensation dependent upon mere nomenclature or accounting practice rather than upon a substantive relationship. The fact that plaintiff did not earn wages irrespective of profits has now become irrelevant. The statute as we interpret it now provides coverage to a partner “for whom and to the extent that premiums are paid based on wages, earnings or profits” (emphasis added), as well as to the partner who earns wages irrespective of profits. The effect of the policy provisions and the rules referred to herein was to “base” the premium upon plaintiff’s “remuneration.” He is therefore within the statutory definition and entitled to compensation.
The award of the commission is affirmed, with costs.
Boyles, Reid, and Kelly, JJ., concurred with BtjtZEL, J.
Carr, C. J., and Sharpe, and Dethmers, JJ., concurred in the'result.
See CL 1948, § 445.1 et seq., as amended by PA 1949, No 101 (CLS 1954, § 445.1 et seq., Stat Ann and Stat Ann 1953 Cum Supp § 19,821 et seq.).—Reporter.
See CL 1948, § 545.2, as amended by PA 1949, No 165 (CLS 1954, § 545.2, Stat Ann 1953 Cum Supp § 24.567 [2]).—Repoetee. | [
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Graves, J.
July 29, 1868, one Joseph W. Amphlett and wife and the defendant King and wife made their mortgage to one Jared P. Bodge for $1,000 payable in one year with interest at ten per cent, upon premises in the village of Lowell in Kent - county, and being a parcel of land one hundred feet in width east and west and eight rods in length north and south, and bounded on the east by Water street and on the south by Bridge street. And subsequently, as may be inferred, the defendant King became vested with whatever interest belonged to Amphlett.
March 25, 1872, King and wife conveyed to complainant for an expressed consideration of $800 a strip twenty-two feet wide east and west and running from Bridge street to the north line of said parcel and lying forty feet west of Water street.
The deed contained the usual covenants of seizin, warranty and against encumbrance, and also provided specifically that King should pay the Dodge mortgage, and was duly recorded in September of the same year.
To secure $650 of the purchase price complainant gave his notes to King together with his mortgage on the parcel purchased. The papers were of even date with the deed and provided that $50 should be paid in six months; $200 in one year; $200 in two years, and the residue of $200 in three years, and that there should be annual interest at ten per cent, on all sums unpaid.
King further conveyed another parcel adjoining on the west and of the same shape and size to one Eli Cummings.
The original parcel mortgaged to Dodge was therefore divided after that mortgage into different holdings by these conveyances, and more than half in quantity and in value three times the amount of the mortgage being retained by King. The several holdings had buildings and they were occupied either by the proprietors or their tenants.
The record shows Rice to be a man of means, and that before and during the transactions relative to this case he dealt in money, made loans, bought paper and handled securities in his neighborhood about Lowell.
The case imports that he had become liable on a note given for King’s benefit to the Lowell National Bank for $2,000, and on the 3d of February, 1873, in order to secure himself, had taken from King an assignment of three mortgages, and one of which was the foregoing given by complainant to King.
At the time of the foreclosure and sale hereafter mentioned on the Dodge mortgage, some $400 remained unpaid on the mortgage given by complainant to King and held by Rice, and the latter claims that there remained unpaid on, the note to the bank on which he was liable between fifteen and sixteen hundred dollars.
It further appears that complainant on the 2d of October, 1871, sold to Rice a note given in May preced ing by M. & J. C. Hiler for $186.46 with interest at ten per cent, and having over two months to’ run, and guaranteed the payment, and that Eiee held this note at the time of such foreclosure. It is not shown that the securities, or any of them so held by Eice, were uneollectable.
King became embarrassed and unable to meet his engagements.
In this state of things, and in June, 1878, Dodge proceeded to foreclose his mortgage in chancery, and brought the mortgagors and Huxley in as defendants. No notice seems to have been taken of the cutting up of the premises subsequent to the mortgage. The complainant as well as the other defendants in the case omitted to appear, and the bill was taken as confessed, and on the 6th of September, 1873, a final decree for foreclosure and sale was entered, and on the 2d day of July, 1874, the entire premises were sold in one body to Eice for $1,570.50, that being sufficient to satisfy the mortgage and all costs, and he received the commissioner’s deed accordingly.
At that time the portion of the premises which King had not disposed of was worth double the amount obtained on the sale of the whole, and Eice was well acquainted with the situation of the property and was aware of complainant’s equities.
He knew that King was legally and equitably bound to guard complainant against the Dodge mortgage, and that according to the principles of equity, recourse ought to be had to the premises remaining in King before resorting to the lot held by complainant, and he also knew that as assignee of the subsequent mortgage given by complainant on the twenty-two feet strip he was entitled to insist upon the application of this doctrine, and by means of which complainant’s rights would be saved without prejudice to the lawful interests of any one.
July, 1875, Huxley filed this bill against King and Eiee to compel the latter to relinquish to him the apparent title made by the commissioner’s deed to the strip he bought of King, and for general relief.
The bill claims that defendants fraudulently combined to keep him from taking steps in the foreclosure suit to protect his interest and fraudulently professed to him and caused him to believe that they had made arrangements between themselves by which Rice would guard or provide for guarding the premises of complainant against the Dodge mortgage, and that he, complainant, believed such professions and accordingly omitted to take measures to protect his interests. And it further claims in substance and effect that Rice’s purchase was not an unqualified purchase made in good faith in his own right, but one made for the joint benefit of himself and King in bad faith to overreach the rights of complainant and deprive him of his property, and he insists he is entitled to claim that the effect of the course pursued and proceedings taken was to extinguish the lien of the Dodge mortgage on his, complainant’s, parcel.
King made no defense, but Rice answered, and the record shows that the parties went into evidence at much length.
The court decreed that the defendants should release to complainant the parcel he had purchased, but without prejudice to the lien of the mortgage given on it to King and held by Rice. Rice appealed.
The evidence in the record is voluminous and discordant, and it would be useless to attempt to harmonize it. An attentive consideration of it has led to certain conclusions, and a brief reference to them is all that is necessary here. Any general discussion would be quite unprofitable.
According to the clear weight of evidence the defendants a short time prior to the foreclosure sale and after some negotiations, entered into an oral agreement by which Rice was to provide the means and bid off in one body the entire premises covered by the Dodge mortgage, and take conveyance from the commissioner .in his own name and immediately release to Cummings his separate parcel, and likewise release to complainant his portion upon his payment of his purchase money mortgage in Rice’s hands; and that Rice should receive by way of interest on the sum advanced to bid off the property, certain rents issuing out of that portion King had not deeded, and amounting to four dollars per week, and moreover on being repaid the sum bid, should release to King the residue of the premises, and it was expected, and the defendants proceeded on the assumption, that no more would be required to bid in the property than the amount of the mortgage debt and costs, and that King would be able to repay the principal sum advanced at an early day and perhaps within a year, whilst the rents set apart for Rice would be equal to about twelve and a half per cent, a year on his advance. Rice was to give King a paper in the nature of a defeasance. This is the'distinct showing by King and his son.
Complainant was not. informed of this arrangement and gave no assent to it. It was a transaction between King, his grantor, who was bound to guard him against the Dodge mortgage, and Rice, the assignee of his mortgage, who was at least entitled to claim that the other premises should be first sold, and was made behind his back, and it provided that his premises, together with King’s share, which was worth more than double the amount of the debt and costs, should be passed into the hands of Rice, and that the latter should have the right to hold complainant’s parcel until the latter should pay the entire amount called for by his mortgage,, and that too when one-half of the amount remaining on that mortgage was not due and would not be for more than eight months.
It is true complainant’s testimony in certain particulars, and which would be of vital importance if the case depended on the theory to which they relate, disagrees with the testimony given by King; but it is equally true that when fairly examined the most of complainant’s testimony is quite capable of reconciliation with the fact of the making of this agreement by King and Pdce. Indeed the tendency of it is to favor, and most decidedly, this explanation, and the obvious inferences and implications point in the same direction.
Eice stands pretty much alone and his version is repugnant in terms to this explanation. He insists it was expressly understood that if he intermeddled at all he would bid and buy for himself to advance his own interests exclusively, and would hold the entire premises as his absolute property, and that all concerned quietly acquiesced. At the same time he admits an oral agreement with King, made about three weeks after the purchase, to sell the property to him, and he also admits that prior to his purchase words passed between them to the effect that a bargain to resell might be made after the purchase should be consummated. The account given by Eice is not so reasonable as the other. It does not so well harmonize with unquestionable facts and with ruling probabilities. When the day of sale arrived King took Eice to the place in his buggy, and on reaching there, and as though the business was already fully agreed upon and understood between them, Eice at once, and in King’s presence, and without his saying a word, took the whole property in a lump for the sum claimed on the mortgage and the costs of foreclosure, and King paid Eice’s expenses and the fee for recording the commissioner’s deed to Eice and the parties returned to Lowell together. It is needless to repeat Eice’s explanation of these matters. It fails to satisfy us.
No attempt was made to interfere with the possession, and Eice contented himself with the receipt of the four dollars per week in rents. After some time, however, he demanded possession and claimed that he owned the property absolutely and in his own right; that • he bought it to protect his own interests, but that as matter of favor he would resell to King on being paid the pur chase price, the demand held by the bank and whatever King owed him; and that he would sell to complainant his parcel and release him from his guaranty on the Hiler note and from all claim for rents subsequent to the commissioner’s deed and give up the purchase money mortgage if complainant would pay him eight hundred dollars. He refused to give King any defeasance or other evidence of right. In fine he repudiated the arrangement under which he took the title in his name and set up new and very exorbitant conditions.
The case suggests several grounds of equity which will not be noticed.
The first thing which may be referred to is the bearing of the oral agreement entered into by King and Rice, Whatever may have been the conscious motives of defendants, it is plain the arrangement was a fraud against, complainant. It was an “imposition” and a violation of the rule of justice which requires that “persons shall not only transact bona fide between themselves, but shall not transact mala fide in respect of other persons who stand in such a relation to either as to be affected by the contract or the consequence of it.” Chesterfield v. Janssen, 2 Ves. Sen., 156, 157, per Lord Hardwick; Ferris v. Hendrickson, 1 Edw. Ch., 132; Denison v. Gibson, 24 Mich., 187.
It was King’s duty to complainant to protect him against the Dodge mortgage at that time and at all times, and it was a gross violation of that duty and a fraud to adopt a scheme to place him in a situation where his protection would depend on the humor or honesty of another, or on the terms of his paying another debt, whether due or not due, and it was a fraud in Rice, with his knowledge of the state of facts, to enter into the arrangement, and especially as he was holder of the mortgage the complainant gave to King, and in a position to call for the sale of the other premises first. Upham v. Brooks, 2 Woodb. & M., 407.
The transaction being one in fraud of complainant’s rights, may be so construed in equity as to be a means of saving and protecting his rights. Laing v. McKee, 13 Mich., 124; Wilson v. Eggleston, 27 Mich., 257.
It is the settled doctrine of the court that where a conveyance is obtained for ends which it regards as fraudulent or under circumstances it considers as fraudulent or oppressive by instant or immediate consequence, the party deriving title under it will be converted into a trustee, in case that construction is needful for the purpose of administering adequate relief; and the setting up the statute against frauds by the party guilty of the fraud or misconduct in order to bar the court from effective interference with his wrong-doing, will not hinder it from forcing on his conscience this character as a means to baffle his injustice or its effects. Comp. L., §§ 4692, 4693; 1 Story Eq. Jur., §§ 330, 333; 2 id., §§ 1254, 1265; 1 Spence’s Eq. Jur., 511; 2 id., 194, 294, et seq.; Hill on Trustees, 144; Mestaer v. Gillespie, 11 Ves., 621; Pickett v. Loggon, 14 Ves., 215, 234; Barnesly v. Powel, 1 Ves. Sen., 284, 289; Young v. Peachy, 2 Atk., 254, 257; Brown v. Lynch, 1 Paige, 147; Hutchins v. Lee, 1 Atk., 447; Wolford v. Herrington, 74 Penn. St., 311; Gregory v. Williams, 3 Meriv., 582. The evidence in the record brings the conveyance Eice received from the commissioner within this doctrine, and is sufficient to authorize the court to consider Eice as holding the parcel in question for complainant’s benefit and subject only to the mortgage the latter gave to King.
But there is another view. The transaction between King and Eice when consummated by the commissioner’s deed operated as regards them in equity so as to create a trust in Eice in the nature of a mortgage with a right of redemption in King. King was borrower and Eice lender. The actual purchase was by the former and the latter took the title in his own name to secure himself for his advance. At the same time it was part of his trust to release to Cummings and complainant, and the circumstance that defendants assumed to make it part of their agreement that Rice should be required to release to complainant only on being paid the mortgage from the latter to King, makes no difference in this respect. The inherent nature of the transaction between .defendants was not changed, — King was borrower and buyer and Rice lender and trustee, with the rights of mortgagee. Ryan v. Dox, 34 N. Y., 307; Case v. Carroll, 35 N. Y., 385; Anderson v. Lemon, 4 Seld., 236; Levy v. Brush, 45 N. Y., 589; Stoddard v. Whiting, 46 N. Y., 627; Carr v. Carr, 52 N. Y., 251; Brown v. Lynch, supra; Wolford v. Herrington, supra; Wilson v. Giddings, 28 Ohio St., 554; Emerson v. Atwater, 7 Mich., 12; Russell v. Southard, 12 How., 139; Peugh v. Davis, 96 U. S., 332; Matthews v. Sheehan, 69 N. Y., 585; Wilcox v. Morris, 1 Murphey (N. C.), 116.
The fact that as between Rice and King the transaction was intrinsically of this nature is important. Because it could not be allowed to operate against complainant in a fictitious character without his assent. Considering the real circumstances, his position entitles him to insist that neither of the defendants shall gain or he lose on account of their giving a false character to the transaction, and his right to claim this must remain just the same whether the court in a controvers3r between the defendants would or would not allow either to avail himself of the exact oral arrangement made, as against the other. Now, the defendants were not at arms-length, but in concert and privity, and Rice was in truth buying for King and taking conveyance in his own name for security. He was not an independent operator with King standing by as a mere spectator unconnected with his proceeding. As matter of fact the purchase was King’s purchase, and in equity it worked an extinguishment of the lien of the Dodge mortgage as against complainant and left an apparent title in Rice with the right in complainant to be vested with it. As regards the latter the Dodge mortgage was in construction of equity redeemed or paid by King through Rice. This is manifest, since King could not make title in himself against complainant under the Dodge mortgage in the face of his own grant and covenant obligations against that mortgage. Putnam v. Collamore, 120 Mass., 454; Upham v. Brooks, supra. Rice appears to have infringed different equities. He has refused to give any defeasance or to recognize even any right whatever either in King or complainant, and claims the entire premises as his absolute property. He insists that'no trust can be fastened on him, and that no objection to his claim of absolute ownership can be substantiated by oral proof, and that he is in a position to take advantage of King and complainant and require them to pay his outside demands against them of whatever nature and amount as a condition precedent to any return or admission of their interests. This course of proceeding is sufficient to call the justice of the' court into activity.
Such is the case as we see it in the record, and by the showing there made we are bound. Had there been nothing more, than a bidding in of the premises under an oral arrangement that it should be in King’s interest and for his benefit, there would be occasion for other considerations on particular points.
The decree must be affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
_ Appeal was taken within forty days after settlement of the case. The law of 1877 [Pub. Acts, p. 18] changes the old law and makes the time for taking appeal run from the settlement of the case. | [
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Campbell, C. J.
Mrs. Powers appeals from an order confirming a sale on foreclosure. The suit was first brought against'her husband as sole defendant. Her title was by grant from him not recorded until after suit brought, though made before.
He died soon after suit was brought, and an attempt was made some months thereafter to revive under the statute by petition. Comp. L., § 5102. Before this was done her title had been recorded. The bill was not amended, and there was nothing to show why she was brought in, as a wife is neither heir nor legal representative.
' A bill of revivor was never the proper remedy to bring in parties claiming otherwise than by operation of law as a consequence of the death of the original party. 2 Dan. Ch. Pr., 1696-7; Story Eq. Pl., §§ 339, 342,-354a, 377-8. Any title not thus derived could only be brought in by an original bill of some kind. This title. being derived before suit, could not under any circumstances have been brought before the court without, such a bill, whether by new suit, or an original bill in the nature of a supplemental bill or bill of revivor. The statute was not designed to allow any independent right to be asserted without proper allegations. 2 Dan. Ch., Pr., 1673; Crowfoot v. Mander, 9 Sim., 396; Stewart v. Nicholls, Tamlyn, 307; Hardy v. Hull, 14 Sim., 21; Foster v. Foster, 16 Sim., 637.
Moreover, the suit abated a second time by the resignation of the first administrator and the appointment of a new one. There was no subsequent revivor.
The decree was void, and the sale was also void, and the order confirming it must be reversed with costs of this court, and twenty dollars 'and disbursements in the court below.
The other Justices concurred. | [
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Cooley, J.
If the position of chief clerk in the office of the assessor of the city of Detroit is not an office it is conceded that this proceeding cannot be supported. We are an of opinion that it is not.
An office is a special trust or charge created by competent authority. If not merely honorary, certain duties will be connected with it, the performance of which will be the consideration for its being conferred upon a particular individual, who for the time will be the officer. The officer is distinguished from the employee in the greater importance, dignity and independence of his position ; in being required to take an official oath, and perhaps to give an official bond; in the liability to be called to account as a public offender for misfeasance or nonfeasance in office, and usually, though not necessarily, in the tenure of his position. In particular cases other distinctions will appear which are not general.
In this case the facts are stipulated, and are given in the margin. We find among them no evidence that an office known as chief clerk in the office of the assessor of Detroit has ever been created. A person has been appointed, and has acted under the designation of chief clerk, but no statute or ordinance has given bim. that title, and if he were now to be called and to style himself in the discharge of his duties head clerk, or leading clerk, or assistant to the assessor, or assessor’s amanuensis, it would, for aught we can discover, be equally well, for nothing whatever depends upon the name. Indeed, we can discover no necessity for his making use of the title at all, except perhaps to indicate to those with whom he was transacting business that he was not an intruder in the assessor’s office.
Nor do we find in the facts stipulated or in any law or ordinance the requirement of an official oath. It is said that the usual oath of office has sometimes and perhaps always been administered, but why administered we do not understand. The fact of its being taken cannot prove that the clerk is an officer; at most, it could only evidence his belief that he was one, or perhaps his caution to observe all forms that possibly might turn out to be essential. It was, we think, a needless ceremony.
Nor do the duties usually performed by the chief clerk indicate an office rather than an employment. Nothing but custom has defined them, and custom has certainly not been very specific, except in excluding him from all “the official functions, power and authority appertaining to the office of assessor,” and from “representing the assessor in any official act or duty.” But while thus excluded he is still wholly subordinate to the assessor, having no independent functions; his duties are those of “ a mere clerkship, and consist of writing out and copying the annual assessment rolls of the city, from minutes and field notes furnished by the assessor and his assistants, and also special assessment rolls,” and he is distinguished from the other clerks in the office in that “he gives out and divides the work among the other clerks, and superintends the work for the purpose of making the work systematic and efficient, and of having it properly performed.” Surely these cannot be called official functions; they are properly described as those of a mere clerk, and a mere clerk is not an officer.
But the duties, such as they are, can be changed at the will of the superior, since no rule of law or well defined custom forbids it. The assessor may distribute his own work and oversee it himself, and if he were to restrict the clerk, now called the chief clerk, to some particular class of duties without making others subordinate to him, we cannot see that the incumbent would have any legal ground of complaint. The law has put nobody under the chief clerk, and the title is as applicable to the assessor’s confidential assistant, who is “chief” because of the special confidence reposed, as it is to one who is “chief” because of having a certain authority over others. The word “ chief,” in other words, defines no duties, and the title “clerk” is properly that of an employee. We know of no case in which it is conferred as a title of office where the duties are undefined. Nor is there anything significant in the fact that the chief clerk is independent of the assessor in the tenure of his position. The common council might give the assessor a janitor equally independent in that particular, but the janitor would not be an officer.
As these views require us to render judgment for defendant, it does not become necessary to consider the applicability to the case of the remedy which was sought. But it is proper to say that it is at least doubtful whether the proceeding by information is applicable to the case of any office not created by the State itself. In People v. DeMill, 15. Mich., 164, 182, we had occasion to point out that there may be many cases apparently within the words of the statute which cannot be within its real intent and meaning.
Judgment will be entered for the defendant, but without costs.
The other Justices concurred.
Statement oe Facts. — 1. That the city of Detroit is a municipal corporation, existing under and by virtue of an act entitled “An act to revise the charter of the city of Detroit,” approved February 5, 1857, and the acts amendatory thereof.
2. That from 1861 to July 13, 1877, the city assessor was authorized by an ordinance of the common council of said city to employ such clerks to assist him in the business of his office as were necessary, and a true copy of said ordinance, being section seven of an ordinance relative to the city assessor and his assistants, approved Dec. 30, 1861, and amended by an ordinance approved March 22, 1864, is recited and set forth in the second plea of the defendant in this cause.
3. That from the adoption of said ordinance of Dec. 30, 1861, down to July 13, 1877, the clerks in the office of the city assessor were employed by the assessor, without any intervention or interference on the part of the common council, and the said power and authority were so exercised by him by virtue of his office and the ordinance as aforesaid.
4. That on the 13th day of July, 1877, the mayor of said city approved an ordinance duly passed by the common council of said city, entitled “An ordinance relative to the appointment of assistants, clerks and other employees,” and a true copy of said ordinance is set forth in the said second plea of the defendant herein.
5. That at the time said ordinance of July 13th, 1877, was adopted, the Hon. H. H. Leroy was city assessor, and there were five or six clerks in his office, who had been employed by him under said ordinance of Dee. 30, 1861, and they remained in his office with him until the expiration of his official term on the 28th day of March, 1878; at which time he was succeeded in office by the Hon. Geo. W. Gilbert, the present city assessor of the city of Detroit.
6. That on the 29th day of March, 1878, the said Geo. W. Gilbert, as city assessor, sent a communication to the common council nominating and recommending Thomas F. Langdon for the position of chief clerk of the assessor’s office, and on the 2d day of April, 1878, said nomination was confirmed by the council, and thereupon the said Thomas F. Langdon entered upon the discharge of his duties as such chief clerk, and from thence hitherto has continued to perform said duties.
7. That the common council of said city has never fixed or proscribed the duties of the chief clerk or of the other clerks in the assessor’s office, but as a matter of fact the duties of the chief clerk are those of a mere clerkship, and consist of writing out and copying the annual assessment rolls of the city from minutes and field notes furnished by the assessor and hté assistants, and also special assessment rolls prepared in the office of the city assessor.
That the chief clerk exercises none of the official functions, powers or authority appertaining to the office of assessor, and he does not act for or represent the assessor in any official'act or duty.
That the clerks in the assessor’s office are'only necessary because the assessor and Ms assistant assessors provided by the charter cannot do all the -writing- and copying required in the office.
That the only distinction between the chief clerk and the other clerks in the office is that the chief clerk gives out or divides the work among all the other clerks, and superintends the work for the purpose of makieg the work systematic and efficient, and of having the work properly performed, but the eMef clerk cannot sign the name of the assessor or determine any matter' within his official judgment or discretion, and in point of fact is merely his chief amanuensis and copyist.
8. That on the 14th day of January, 1879, the common council of said city passed a resolution purporting to remove the defendant and a large number of other clerks, officers and employees, from their respective offices and positions, and a true copy of which resolution is set forth in the replication of the people to the defendant’s second plea.
9. That on the 22d day of January, 1879, the common council adopted the following resolution by a vote on the call of the roll of 14 yeas to 11 nays:
“Resolved, That William A. Throop be and is hereby appointed chief clerk in the assessor’s office.”
That on the then next session of the common council the mayor of said city sent to the council the veto message, a true copy of which is set forth in the third plea of the defendant herein, and that such resolution has never been passed over the said veto.
10. That the common council has never taken any other or different proceedings to create the office of chief clerk of the assessor’s office than those herein set forth.
11. - The statement contained in the third subdivision of this stipulation is modified by the following:
At a session of the common council on the 13th day of January, 1874, Aid. Baxter moved that James 0. Oldfield be appointed chief clerk in the assessor’s office.
The motion was adopted on a call of the yeas and nays by a majority vote of all the aldermen elect.
At the then next session of the common council the following-proceedings took place:
“ SUSPENSION 03? THE HULES.”
“On motion of Aid. Coots, the rules were suspended for the purpose of reconsidering the vote by which the resolution was adopted appointing James 0. Oldfield chief clerk in the assessor’s office.
“Aid. Coots moved that the vote be reconsidered.
“Aid. Welch moved that the whole matter be laid upon’the table until the next session. The motion prevailed.”
No further proceedings were had in the council in regard to the matter, and Mr. Oldfield-never entered upon the discharge of the duties of chief clerk in the assessor’s office.
12. That the chief clerk in the assessor’s office is paid by a salary of $1400 per year, and the other clerks a salary of $940 per year. | [
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Marston, J.
Complainant claiming to be the owner and in possession of certain premises, filed his bill to quiet title thereto.
The lands in question were patented by the United States to Artemas S. Hardy in 1836. Hardy and wife conveyed to Joseph Whittaker, who conveyed to John Lord, Sept. 3d, 1840. The deed to Lord was recorded on the same day, and no question is made but that, Lord under this deed became owner in fee simple of the premises. Defendant claims title through Lord under a conveyance purporting to have been executed by Lord to Peter D. McLane, October 8th, 1840, and acknowledged before a justice of the peace of Lapeer county. There is strong testimony in the case tending to show that what purports to be the signature of the justice before whom it is claimed Lord acknowledged the execution of the deed to McLane, is not his genuine signature. There are also many suspicious circumstances connected with the transfers from the so-called McLane to defendant, and also as to the manner and method by which defendant purchased and paid, or agreed to pay, for the land.
John Lord was examined in England, and afterwards in Livingston county, and his testimony is corroborated by that of other witnesses so fully and clearly that we must accept what he says as true beyond question.
He came from England in 1840; landed in New York August 2d; from there he came to Howell direct, where he arrived the latter part of August. He purchased and paid for this land and immediately left for England, going direct from Howell by stage to Detroit, thence to Buffalo by lake, and sailed from New York for England the latter part of September, 1840. The way he traveled, the name of the ships, boats, and the time he spent at each place, he gives in detail, and from his testimony it is clear that he never was in Lapeer county, where the deed to McLane purports to have been acknowledged, and that he was on the Atlantic ocean October 8th, 1840, at the time this deed purports to have been executed by him in Lapeer county. He also testifies clearly and distinctly that he never conveyed the premises to any one until he conveyed the same to complainant after the commencement of this suit.
It is clear therefore, beyond dispute, that defendant has at no time had even a shadow of right to the premises or title thereto.
The complainant claims, and introduces testimony which satisfies us, that he took possession in the fall or early winter of 1850 under a written contract of purchase from parties claiming title thereto under a sale for taxes, and that he has continuously since then exercised acts of ownership, paid taxes, etc., thereon. Without passing upon the validity of any of the tax-deeds under which complainant claims title, we are of opinion that he has shown over twenty years’ possession under a claim of title before the commencement of this action, and that he is therefore entitled to the relief prayed for.
The decrees must be affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
A writ issued at the beginning of the term to inquire into the cause of detention of Amidon in the Reform School, was by agreement made returnable on the 22d. The application for a writ set forth that the prisoner was held under a justice’s sentence for assault and battery, whereby he was required to be confined until he reached the age of twenty-one; but that petitioner was unable to obtain a copy of the commitment. It now appears that when the writ was sued out, the superintendent had refused to receive him on the original commitment approved by the judge of probate, because the justice had no authority to make it. He, however, was retained without process, while the original was returned to the justice, who altered it by changing the words “twenty-one” to “eighteen,” thus complying in form with the statute, which makes eighteen years the end of the term of confinement. The commitment thus altered is set up as the authority to hold the prisoner-.
The judge of probate never approved the commitment in its present shape, and the justice had no right to change it in the way he did. The only judgment he ever actually rendered was one of confinement until the age of twenty-one. The present document is not founded on any judgment, and in its original shape the justice had no power to award such a sentence as he did, and no law allows persons to be imprisoned on such terms. The law is also imperative, that the judge of probate must give his sanction to the action of the justice in sending young offenders to the Reform School.
The process is void, and the prisoner must be discharged. | [
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Cooley, J.
This case involves no question but the one passed upon in Wyandotte Rolling Mills v. Robinson, 34 Mich., 428. The judgment in the case was taken on default twelve days after service of declaration and notice of rule to plead.
* The judgment is reversed with costs.
The other Justices concurred. | [
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Campbell, C. J.
Doyle brought suit for the conversion of a stock of goods, filing a declaration with two counts, the fix-st of which was special, and the second in trover.
The first count averred ownership and possession by plaintiff on the 10th of April 1875, and a fraudulent taking possession and conversion by defendants on that day. Intermediate between these allegations was a recital of facts which were in substance that Mizner and Gray with an express fraudulent intent induced plaintiff to enter into an agreement to form a corporation to be known as the Detroit Chemical Works, with a capital stock of $50,000 in 2,000 shares of $25 each, they (M. and G.) to have 160 shares each for their services and expenses in organizing it, and to pay to the corporation $36,000 in cash and to receive therefor 1,440 shares. Plaintiff was to transfer to the corporation his goods and receive 400 shares therefor; that the other parties pretended to organize and fraudulently represented that they would pay or cause to be paid to the corporation said $36,000 as soon as plaintiff had executed, a bill of sale to the corporation, and that plaintiff joined with them in executing such' bill of sale; that Mizner and Gray had no interest in the property and never paid anything to the corporation. It then charges a fraudulent agreement between Kane, Mizner and Gray to obtain the execution of a pretended chattel mortgage from Mizner and Gray as president and secretary, and that Kane fraudulently took possession thereunder, and that the parties fraudulently converted the property.
On the trial plaintiff proved by his own testimony the forcible taking possession by Kane of the property then in plaintiff’s possession. He further testified to a series of transactions for the organization of the company and the execution by himself, Gray and Mizner io the company of a bill of sale, which he swore he delivered to Mizner to be held conditionally and not •delivered to the company until the money was paid in and he was paid, and to be used by Mizner for no other purpose than to show intended stockholders what amount of goods was to be turned in as capital. There was other testimony which is claimed by defendants to have shown a want of interest in plaintiff and to controvert his right, and to have precluded him from setting up individual claims.
There was also more or less testimony bearing on the ■question of fraud.
After Kane took possession, defendants introduced evidence to show a sale of the goods under a mortgage for $293.66 made by plaintiff in 1874, and held by D. W. Brooks as attorney for Mr. Boulter, the assignee. There was evidence tending to prove the property worth several thousand dollars.
After all the testimony on both sides was in, which was conflicting on important points, the court took the •case away from the jury, and directed a verdict for the defendants. It is therefore unnecessary to inquire any further than to ascertain whether there was any testimony under which plaintiff could possibly have recovered.
It seems to us very clear that there was. He swore positively that he not only had possession of the property, but that it was understood by himself, Mizner and Gray that he was to retain, and use it until the money was provided to pay its value. As Mizner was one of the nominal grantors to the company jointly with plaintiff and Gray, so that there was and could be no delivery in the ordinary sense of the term, the bill of sale could not become operative against the grantors until they had in some way fixed and manifested an intent to make it operative. Possession by a person who is an officer of a company is not the company’s possession unless received or held for that purpose, whoever may be grantor. If plaintiff’s testimony was true the-title never passed.
.And inasmuch as Mizner and Gray were shown by his testimony, if believed, to have paid nothing to him for the goods and to have had fraudulent designs in the whole negotiations, and he remained in actual possession of his goods, it was open to him to claim that no sale had been made which he would not have a right to rescind, — even if there had been a sale made in the usual way. A vendor may certainly protect himself against the fraud of an insolvent grantee who has not paid and does not mean to pay him.
The court had no right to take the ease from the. jury by reason of testimony introduced for the defense. If plaintiff swore to a case that is enough to reverse the judgment.
It is difficult to see how Iiane could be put in any better position than Mizner and Gray. If the company did not own the goods they could not be mortgaged; and the authority of Mizner and Gray to bind the company is not beyond question. But these matters were matters introduced in defense, and should have gone to the jury, with the rest of the facts.
If the plaintiff’s testimony is believed, he has suffered a great wrong, and is entitled to redress.
Judgment must be reversed with costs, and a new trial granted.
The other Justices concurred. | [
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Marston, J.
There is at least one fatal error in this ease. The school district entered into a contract with Shumway and Breed under which they were to build a schoolhouse and complete the job by the 10th day of October, 1874. The site was not designated nor referred to in the contract, nor was any site fixed .upon by the district until about the time when the building should have been completed, and the site so chosen was not then cleared nor for some time afterwards. The duty of the district was clear under this agreement to furnish a suitable site, and this within a reasonable time from the date of the agreement, so that the-contractors might not be delayed in the performance of the agreement on their part.
In August, 1874, Shumway and Breed assigned the contract to one Goodale, and it appears that the school district recognized the validity of the assignment, and treated with Goodale thereafter, and agreed with him to extend the time for the completion of the contract. This assignment and extension of time released the sureties Todd and Hinds from all liability upon their bond given for the faithful performance of the contract by the original contractors. Their agreement was a personal one that Shumway and Breed would perform the contract, and not that some other person, to whom they might assign their contract, with the consent of the district, would perform, or that they would be responsible for the default of such third person.
If this district had not been in default in not procuring and clearing a site, and had they not recognized the validity of the assignment to Goodale, or had the sureties consented to such assignment, it might be otherwise. ,
The judgment must be reversed with costs.
The other Justices concurred. | [
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Campbell, C. J.
This was an action to recover the rent of a house in Chicago, during a period when it was not occupied. Mrs. Tyler, through an agent, procured a lease to be made from herself to Mrs. Disbrow for one year from May 1, 1873.
The defense was that there were defects in the sewerage, not discovered by the tenant at first, and afterwards unsuccessfully sought to be remedied by her, which made the house unhealthful and unfit for occupation as a residence. Defendant ultimately left the house, but plaintiff refused to accept the surrender.
The court below found for the defendant and found specially among other things that the premises were when leased in bad condition from defective sewerage, the pipes being too small to carry off the refuse matter, and the house being filled with foul smells and stench, and unhealthful and unfit for occupation as a residence.
This is an action of assumpsit, in which the consideration of the contract is always open to inquiry.
The condition of the authorities upon the responsibility of a landlord for the fitness of a house for habitation. is not very satisfactory. But on this record we need not discuss those cases. There can be no doubt whatever that when the landlord rents his house with a distinct understanding that it is in good condition, that becomes a part of the consideration.
In the present case there is a written lease signed by both parties in which the lessee is made to covenant that she “has received said demised premises in good order and condition,” and will ultimately yield them up in as good condition, — unless prevented by casualty. She also is made to covenant that “she will keep said premises in a clean and healthy condition.”
It is manifest from these covenants that the condition of the premises was a distinct consideration, and the lessor who signed the lease and accepted these covenants cannot now be heard to make any claim to the contrary. The effect of the assertion could not be stronger if the covenant had been made by the lessor instead of the lessee.
This consideration having failed, the lessee was justified in leaving, and in refusing to pay further rent.
The judgment below must be affirmed with costs.
The other Justices concurred. | [
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Graves, J.
Waterhouse sued Phillips by attachment on a bond in replevin previously made to him by Phillips and one Catharine Woodell in a suit by the latter, against Waterhouse in justice’s court. In this action on the bond, which was also in justice’s court, Waterhouse recovered, and the circuit court affirmed the judgment on certiorari. Phillips then brought error. Several questions are mooted in the record which will not be noticed. It will be sufficient to refer to a single point.
The return of the justice shows what evidence he had before him and all of it, and it thence appears that no judgment was introduced and no execution in replevin shown. An execution was put in evidence, but it is an execution for damages “sustained on occasion of the non-performance of certain promises and undertakings,” and does not purport to be in tort. Under the statute an execution in the action is required to fix liability on the replevin bond, and here there was no such execution. This is a fatal defect as ruled in Williams v. Vail, 9 Mich., 162. The record discloses that besides this execution foreign to the case no other proof was put in except the bond. Hence there was a total lack of evidence.
We do not inquire whether proof of a judgment in replevin was a necessary prerequisite. It would certainly be much safer to make the proof than to omit it.
The judgment of both courts must be reversed with costs.
The other Justices concurred. | [
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Campbell, C. J.
Mrs. Milburn, the defendant in error, sued plaintiffs in error in trespass, for breaking into her house and removing certain furniture and offering her personal indignities. Special damage was averred in her business as a boarding-house keeper.
Upon the trial evidence was given tending to make out the case alleged, and damages were assessed in her favor. Several questions are presented by the bill of exceptions. The plea was the general issue without any notice of special matter.
It was first objected that the declaration presents no cause of action. We do not quite understand the meaning of this objection. No demurrer was put in, and the omission of some of the verbiage common in the precedents cannot, where there is no demurrer, make a declaration bad which sets forth substantial grievances. The objection in the court below pointed out, so far as the record shows, no particular ground of insufficiency. If it had done so, there was nothing that stood in the way of an amendment, if one would have been desirable. The testimony was full on the grievances charged. We have discovered nothing on which to found any substantial objection.
It appeared that the furniture taken away was obtained by a fraudulent entrance under false pretenses, and was claimed under a chattel mortgage which had ceased to have any legal validity. Mrs. Milburn got it back on replevin and recovered in the replevin suit eight dollars for its detention. Defendants below offered the evidence of the replevin proceedings in bar of this action. The court refused to receive the evidence for that purpose, but ruled it might be used in mitigation of damages.
We do not see how the judgment in a replevin suit could usually be a bar to an action for unlawful trespass and personal wrongs distinct from the detention of property. But however this may be, the ruling was clearly right that a former judgment to be used for any such purpose must be pleaded in bar. There are good reasons why damages confined to the detention of the property itself should not be recovered twice, and this was fully secured by receiving the replevin record in mitigation. This was all'that could be asked on such a state of pleadings.
The remaining errors may all be considered together. They relate to an alleged absence of evidence to charge Mrs. Briggs for any malicious conduct or for any concurrence in the trespass, and to the question of exemplary damages.
The relations of Mrs. Briggs to the transaction were the subject of proof, and as there was evidence which the jury could act upon, we cannot overrule their action. The suggestions of counsel that the record does not fairly set out the facts are improper, and should not have been spread upon their brief. There is not the slightest ground for insinuating that the conscientious Judge of the Superior Court, of whose valuable services the State has been deprived by his lamented death, deprived the parties of any of their rights.
The question of exemplary damages is covered by a uniform course of decision in this State. There was evidence of a willful invasion of 'the house of Mrs Mil-burn, and of insulting conduct, and injury resulting to her business, and that all which occurred was under an unlawful pretext. We must assume the jury gave due weight to any pretext that the parties thought they were justified. And we must also assume that if exorbitant damages were given, the Superior Court on application would have granted relief.
We find no error, and the judgment must be affirmed with costs.
The other Justices concurred. | [
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Graves, J.
This case was here in 1877, and was then sent back for a new trial (36 Mich., 327), and having been retried and again determined in favor of Macalister, the company a second time bring error.
The questions now raised differ from any disposed of on the former hearing. The ground of action is of course the same. The claim preferred by Macalister is for six months’ salary as company superintendent, together with interest, and the declaration is the common counts alone.
At the trial he swore that he was employed as company superintendent at a salary of $125 per month, and continued in such service six months under and by virtue of a resolution of the board of directors passed by them November 17, 1873. His counsel then offered an entry of the resolution in the book of the secretary of the company, as follows:
“ The following resolution was offered by Mr. Kellogg, and was adopted: Resolved, That Mr. N. M. Macalister be appointed superintendent of the Kalamazoo Novelty Manufacturing Company for the term of two years, provided he gives satisfaction to the company, at a salary of fifteen hundred dollars per annum. On ballot Mr. Macalister was duly elected and declared superintendent.”
The entry was admitted against objections by the company. The grounds of objection were explained as being that it was not shown that the resolution was regularly passed, — that a majority of the board were present or that the minutes had been approved by the board, or that there was any consideration for the resolution so as to bind the company.
These objections have no force. That plaintiffs in error were a private corporation competent to employ Maealister as superintendent on wages, and that the book containing the resolution was the proper record book of the corporation for such matters and actually kept by the secretary, were facts unquestioned. They were tacitly granted.
Hence ¡prima facie the entry was an authentic act and record of regular proceedings by the board of directors and the resolve itself a declaration of the corporation, and being so, it was a legitimate item of evidence to help make out Macalister’s claim. Having adduced this testimony, Maealister rested, and the company then showed by the person who presided at the directors’ meeting when the resolution was adopted that a contract was in fact made at that time between the parties for Macalister’s service as superintendent, — that the whole of it was not contained in the resolution, and he was then asked to state whatever was not embraced in the resolution, but the court ruled out all oral testimony so offered on the ground taken by Macalister’s counsel, that it had been shown that the bargain was in the form of a written resolution and could not be varied by parol.
In order to exclude oral evidence of a contract on the ground taken, it must be first settled that there is a subsisting written contract between the parties (1 Starkie Ev., 731), and where the immediate issue is whether there is or was a writing covering the contract, it is not competent to exclude oral testimony bearing on that issue upon an assumption of such writing. To do so is to beg the question. It is true Macalister’s counsel claimed by his objection that the resolution embodied the contract. But this was not admitted. The counsel for the company denied it and submitted testimony to prove it did not.
Surely it was not proper to refuse the evidence upon an assumption that the assertion of Macalister’s counsel was correct, and the denial on oath wrong. See Pym v. Campbell, 36 E. L. & E., 91.
Moreover, the position that the resolution embodied a contract was prima facie untenable. It did not contain the mutual assent of the parties. It did not purport to be their joint utterance or the manifestation of their accordant wills, and Macalister’s counsel did not understand that it did. He conceived it to be necessary to go outside and give oral evidence of extrinsic facts to connect Macalister with it and link together written and unwritten matter. The resolution was a declaration by the company and which might have been withdrawn or altered before acceptance, and it belongs to those mixed transactions where part is in writing and part not, and to which consequently the rule referred to does not apply so as to exclude oral testimony of what lies in such proof. Wharton Ev., § 1016; 2 Best, note by Am. ed., p. 891; Bishop, Law of Contracts, §§ 57, 58, 62; Sievewright v. Archibald, 17 Q. B., 115: 6 E. L. & E., 286; Pacific Works v. Newhall, 34 Conn., 67; Thomas v. Nelson, 69 N. Y., 118; Hope v. Balen, 58 N. Y., 380; Hutchins v. Hebbard, 34 N. Y., 24; Lathrop v. Bramhall, 64 N. Y., 365; Joannes v. Mudge, 6 Allen, 245.
The last question excluded was too general unless put by way of introduction, and no claim seems to have been made for it on that ground. It is not important now.
The case must go back for another trial.
On reaching this conclusion a suggestion or two seems justified in view of the circumstance that some questions not raised by the record appear to be not very remote. The facts offered and excluded are necessarily to be considered as not having arisen in such way as to hinder their introduction, since no such ground was taken by the objection.
But it will not be overlooked that mere internal discussion in the board of directors for the sole purpose of collecting the sense of the body and bringing it to an individual and corporate determination, would not be provable as expressions of the corporate body to Macalister in fixing terms of agreement with him. Peek v. Detroit Novelty Works, 29 Mich., 313; Eley v. Positive Government Security Life Assurance Co., L. R., 1 Exch. Div., 88: 16 Eng., 544.
Again, the declaration alleges no special contract. It is confined to the money counts, the count for goods sold and delivered, and the count for work done and materials found, and under this declaration a recovery is sought for six months’ service at $125 per month,— not on actual quantum meruit, nor on a completely executed express agreement for such time and on such wages, but on an alleged express agreement to hire him two years, provided he gave the company satisfaction, at a salary of $1,500 per year.
The record as it appears now scarcely explains how ■the claim by declaration and the state of facts apparently relied on are expected to so harmonize in point of law as to justify the result demanded.
It is perhaps not expedient to enlarge on these intimations or further discuss the case.
The judgment must be reversed with costs, and a new trial ordered.
The other Justices concurred.
The question was, “Bid the plaintiff give satisfaction to the company as its superintendent while he was so employed?” | [
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Cooley, J.
Plaintiff in .error was' convicted of the larceny of certain articles of clothing from a car of the Michigan Central Railroad Company. The larceny took place on or about tbe fourteenth day of September, 1877, while the car was in transit west from Jackson. The most important evidence supposed to connect plaintiff in error with the larceny was several of the articles being found on premises occupied by him, and some of them in his bed. The finding took place in January, 1878. As to the articles found in the bed it appeared that search was made for them in the house the day before without success, but on going a second time, the officer discovered them. To break the force of the evidence of this discovery, plaintiff in error .called as a witness John Gabliek, who had previously pleaded guilty of the same larceny, and he testified that he placed the articles where they were found after the first search was made, and that plaintiff in error had nothing to do with the larceny or with the concealment of the goods. It also appeared from his evidence and that of others that John Gabliek occupied another part of the same house in which the things were found.
This being the evidence the court was requested to instruct the jury that “the fact of possession of stolen property, standing alone and unconnected with any other circumstance, affords but slight presumption of guilt, for the real criminal may have artfully placed the property in the possession or on the premises of an innocent person the better to conceal his own guilt.” This request the court refused, but the jury were instructed that they must consider all the circumstances and allow the evidence such weight as they believed it deserved.
We think the plaintiff in error was entitled to the instruction requested. It is perfectly true that the jury must judge of the proper weight of the evidence; but when evidence is laid before them which only indirectly tends to raise an inference of guilt, and the importance of which must depend altogether upon circumstances, it is the right of the respondent to have the jury instructed how these circumstances bear upon the presumption of guilt. Possession of stolen property, if immediately sub sequent to the larceny, may sometimes be almost conclusive of guilt (see Walker v. People, 38 Mich.); but the presumption weakens with the time that has elapsed, and may scarcely arise at all if others besides the accused have had equal access with himself to the place where it is discovered. A jury may or may not attach importance to these circumstances; but as the law permits the inference of guilt to be drawn under some circumstances, and not under others, the jury should have some instruction how to deal with these circumstances when they are placed before them.
This is the only error we discover in the record. The judgment is reversed and a new trial ordered.
The other Justices concurred. | [
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Marston, J.
Kilborne, who was plaintiff below, sold certain logs to Busch. The agreement was in writing and contained a provision that the logs were to be scaled and agreed upon by the parties. Kilborne and Busch, on four different occasions, met and scaled some of the logs, and made a memorandum of the quantity and quality thus scaled, which was satisfactory to both parties, and the logs so sealed were marked with Busch’s mark. Afterwards Busch went to scale some more of the logs, and Kilborne not appearing to assist as before, he went on and scaled in the neighborhood of six thou-0nd, which were put in the river and became mixed with those previously scaled by the parties.
Kilborne being dissatisfied with this last scale, or for some other reason, employed one Hoffman to make a scale of the logs. Hoffman went on, and in the absence of the defendants, and without their knowledge or consent, made a scale of all the logs, as well those previously scaled by Busch and Kilborne jointly and agreed to, as those afterwards scaled by Busch alone.
The memorandum made by Busch and Kilborne of the logs scaled and agreed to by them was kept by Busch, and was by him lost with other papers, but from a copy or statement which he had made therefrom and sent to his office in Saginaw he was able to 'testify to the quantity .and quality of the logs scaled.
On the trial it was claimed that because and on-account of the loss of this memorandum, and because-that Busch had, when Kilborne was not present, scaled some logs, which had become mixed with those previously scaled by Busch and Kilborne, it became and was necessary to prove the entire quantity and quality of logs sold and delivered, according to the scale made by Hoffman, who was called and testified to the scale as made by him. His testimony was objected to because it did not, appear that he was an expert in that business. It did appear that he had previously scaled logs, but as he was. called upon to state facts and not opinions merely, he was competent, and his inexperience and want of the necessary qualifications could be considered by the jury in determining the weight which should be given to his testimony.
The court charged the jury that the scale made by plaintiff and Busch when together would be binding upon both parties; that “the scale bill of the logs that were scaled by the parties together and those that Busch scaled alone, Busch testifies is lost, so that the jury must, in order to determine the amount of the logs delivered, consider the testimony of the plaintiff and Busch and Hoffman, and all the other evidence in the case tending to show that fact.” And the court declined to charge that if they found a joint scale to have been made, then they should determine the quantity so scaled and adopt that as the amount of logs actually sold and delivered up to such last joint scale, and to that amount add the actual amount subsequently scaled by Busch. In this we are of opinion the court erred. The quantity agreed upon according to the scale made by the parties jointly was binding upon both, and the fact that the scale bill thereof was lost could not affect the right of either, except in so far as it might render the question as to quantity and quality of the logs thus scaled more difficult of proof. The loss of the scale bill could not give the plaintiff the right to call upon Hoffman, or any other person, and substitute his judgment as to the quantity and quality of the logs so sold and delivered, in lieu of what had previously been agreed upon.
In so far as the quantity and quality of the logs jointly sealed were in dispute, Hoffman could throw no light upon that question. His scale might show the entire quantity of logs put in by plaintiff and sold to defendants, but it would not show or in any way tend to show the quantity or quality of the logs agreed upon by the joint scale of the parties themselves. The logs were of very poor quality, cut from dead timber, killed several years previously by the fire, and injured by borers. Allowance bad to be made for these defects. What allowances were made and agreed to by the parties Hoffman did not knoty, and under the undisputed facts had no means of ascertaining.
Neither could the fact that Busch had scaled a portion of the logs when plaintiff was not present, which had become commingled with those previously scaled, change the rights of the parties in this respect. It does not appear that Busch had acted in bad faith or that there was a fraudulent admixture caused by him, if that could make any difference, even had the logs become mixed with those previously scaled, without having been scaled by Busch at all. Yet the plaintiff would not be wholly left without proof as to the quantity and quality of such logs. - True the proof might not be quite so satisfactory as an actual scale would be, but if the logs had become so mixed that this last lot could not be separated and scaled, then resort must be had to other means to ascertain the quantity thereof, and this could not be done in the manner attempted by Hoffman, and as the court instructed the jury.
The judgment must be reversed with costs and a new-trial ordered.
The other Justices concurred. | [
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Cooley, J.
On the first day of October, 1874, Mrs. Newcomer, the defendant in error, being at the passenger house of the Michigan Central Railroad at Albion, was forcibly taken and put aboard the cars of that railroad and removed to the Michigan Asylum for the Insane at Kalamazoo, where she was restrained of her liberty until the fourth day of August following. The persons chiefly instrumental in procuring this confinement were her son-in-law and his mother, with whom she had had difficulty, but her daughter gave assent. The person who accompanied her on the cars and to the asylum was one of the superintendents of the poor of Calhoun county, who, it is now conceded, had no legal authority for interference beyond that which might be claimed for any citizen. The reason assigned for removing Mrs. Newcomer to the asylum was her insanity. There had been no judicial finding of the fact, and it is not alleged that there were any such manifestations of mental delusion , as indicated danger to others. The plaintiff in error was at the time in charge of the asylum, and he received and detained Mrs. Newcomer in the full belief that she was insane. It is shown in this case that the medical and other assistants in the asylum believed her to be insane while she remained there.
On being discharged from the asylum Mrs. Newcomer brought suit for false imprisonment, and has recovered as her damages $6,000. The gravity of the questions involved would have warranted bringing the case here had the recovery been nominal only; but this considerable recovery rendered that course imperative. The case has been very earnestly and forcibly presented on the part of the defense, in the full belief that the usefulness, perhaps the very existence, of the asylum depends upon the reversal of the judgment and the correction of the errors which are supposed to have led to its recovery.
I shall give no attention to any but the main questions in the case'; all the others are fully and satisfactorily examined by Mr. Justice Marston, and I concur in what he says upon them.
Mrs. Newcomer claims never to have been insane at all, and the contest in the court below was mainly over the question of fact. She insists, however, that had she been insane, Dr. Van Deusen had no authority of law to restrain her of her liberty. The position assumed on her behalf is that, with perhaps the exception of indigent persons for whose case special provision is made by statute, no one can lawfully be sent to or confined in the asylum who has not been found to be insane on a regular inquisition for the purpose. This position is the first which it becomes necessary for us to examine; and it involves the whole theory of State action relating to this important institution.
The constitution provides that “Institutions for the benefit of those inhabitants who are deaf, dumb, blind or insane, shall always be fostered and supported.” Art. 13, § 10. The provision is found in the article respecting education, between those which have for their object the support of the University and of the Agricultural College. The position is significant, and gives emphasis to the word benefit which characterizes the policy indicated. Obviously what'was had in view as a primary object was to aid in bringing this unhappy class to a better condition; to improve their mental state wherever it should be found possible; to establish in their interest a great and noble charity. The asylums were to be retreats for proper instruction and treatment, and not in any sense prisons or bedlams.
I have no doubt it is because this State policy wras well understood by the people at large that there has been so little legislation on the subject. Provision has been made under which insane indigent persons may be sent to the asylum by the county authorities, but other cases have been left to the voluntary action of friends. The vast majority of those who have received, treatment in the asylum have been sent and received with no other warrant than their manifest need of its benefits, and the superintendent in his action has accepted the request of friends and relatives as his sufficient justification.
That the system has worked well thus far is demonstrated by the fact. that this is the first instance in which complaint of it appears in our records. Nevertheless there are possibilities in it which must not and cannot be overlooked. The facts in the present case show that it is entirely possible for complete strangers to seize upon a woman, forcibly take her into railroad cars, carry her a long distance without interference on their mere assertion that she is mentally unsound, and place her within the doors of the asylum where again the allegation of insanity must to some extent predispose the minds of those receiving her to turn a deaf ear to her protests. Indeed,, when we admit that such things are possible, we concede that other things still more dreadful are also possible; but we shall not stop to contemplate, or even to suggest them. If the law permits this, we must take it with all its possible evils and abuses.
The defense insist that everything done in this instance, if the woman was insane, was lawful; and that if in point of fact a mistake was committed in supposing her to be insane when she was not, nevertheless the defendant cannot be held responsible, as he has acted in a public capacity, with undoubted and unquestioned good faith. The alternative of the plaintiff’s sanity I shall pass by for the present, to consider whether, supposing her to be insane, the defense relied upon is made out.
I understand the counsel for the defendant to maintain the following propositions:
1. That insanity is a disease of which medical men are the best and in all uncertain cases the only competent judges, and that the determination of questions of sanity and the care and custody of the insane for that reason naturally and properly falls to them.
2. That insane persons are dangerous to others from their propensity to commit mischief, which they are hable at any moment to manifest though it may never have been exhibited before; and that therefore the State through its organized action, or any member of the political society, without other warrant than the imperious law of self-defense, may restrain their actions, and when no other restraint is provided, may properly remove them to the retreat the State,, has provided for their benefit.
3. That the helpless condition of insane persons, and the possibility of cure which is present in the early stage of most cases, imposes upon their relatives the solemn duty to take steps for their cure by placing them in the institutions specially provided for their treatment, and clothes them with all necessary power for the purpose: that they may restrain them of their liberty with a view to their cure as they might a person in the delirium of fever, or one who, in any case of mere bodily disease, was in danger, either purposely or through ignorance or temporary loss of prudence and discretion, of inflicting or causing self-injury.
4. That while in any case it might be proper to have an inquisition of sanity before restraint was imposed if no reasons forbid, yet that the institution of such proceedings must generally be exciting and disturbing to the deranged intellect, and therefore harmful, and consequently cannot be required by the law, which demands only what is reasonable.
5. The conclusion is that restraint of insane persons in asylums is lawful, and being lawful, the placing them there, whether it be done by way of protecting the persons or property of others, or for the benefit of the insane persons themselves, is in itself due process of law, though there may have been no judicial investigation whatever.
I have formulated these propositions in my own language, but I understand them in substance to be advanced and maintained by the defense. To some of them I can render full and hearty assent. The members of the medical profession are undoubtedly the most competent, and in many cases the only competent judges of insanity. It would be nonsense to deny this, and unjust to admit it with hesitation and cavil as some do.
The careful study of the phenomena of insanity is confined almost exclusively to learned and humane members of this profession, and it would be gross ingratitude in society and in the State, if it were not ungrudgingly admitted that the amelioration of the condition of this unfortunate class, by relieving them of the barbarous and inhuman restraints to which ignorante formerly subjected them, and giving them the humane, soothing and healing treatment of comfortable asylums, is due mainly to the investigations and labors of this profession. But I cannot admit that because one is a practitioner of medicine, it is therefore proper or safe to suffer him to decide upon mental disease, and consign people to the asylum upon his judgment or certificate. While the high character of a large proportion of the medical profession, their learning, their self-devotion and humanity, entitle them to our highest respect and confidence, and give to their conclusions in questions of medical science a weight that must generally challenge conviction, we cannot for a moment shut out from view the fact that the law throws wide open the doors of that profession, and that the ignorant jostle the learned in entering it, the unworthy have equal rights with the high-minded and humane, and it is not uncommon that the most unfit succeed for a long period in imposing upon the public. By no means known to the existing laws can it be rendered reasonably certain that, in the absence of public investigation, questions of insanity will be considered by competent persons and mistakes guarded against by those who are fit to judge.
Nor even when the investigation is public and conducted with the assistance of experts do we fail to encounter difficulties of the most serious nature, arising from differences of opinion among those who are called to give scientific evidence. In every case where the evidences of mental disease are obscure, opinion is certain to be divided, and we are brought face to face with this conclusion, that if physicians exclusively were to deal with the case, the person would be turned over to the asylum or discharged as sane, according as one physician rather than another happened to be called in as the adviser. If the liberty of the citizen must depend upon such accidental circumstances, it ought very clearly to be made to appear either that the safety of society requires that such perils should be encountered, or that adequate protection to those who are really insane admits of no better course.
The safety of society, it is said, does demand that every insane person should be placed under restraint, because the going at large of every such person is dangerous to others, and for self-protection they may be restrained by others without awaiting any judicial hearing. Moreover, it is further said, for their own good they should be restrained, in order that they may be treated for their malady and if possible cured; and this should be allowed without a preliminary inquisition, because the inquisition itself must be exciting and injurious to the subject of it, and tend to defeat the very purpose for which it would nominally be had. These are important positions, and they deserve thoughtful attention. For myself I cannot assent to the proposition that the going at large of a person who is mentally disordered is in every ease dangerous. It is a proposition that contradicts common observation. Many insane persons, even 'after they- have become hopelessly so, are to all appearance perfectly harmless, and for years continue to discharge the common duties of life -in the most regular. and acceptable manner, being trusted by every one in those particulars to which the insane delusion does not extend. The law takes notice of the fact that in many cases the disease leaves the person in the responsible possession and control of most of his faculties, and that the same motives influence his action in the employment of them, that influence those .not thus afflicted; in short, that the delusion is confined, to a single subject or group of subjects, and in other respects leaves the person rightfully entitled to control his own actions. It may nevertheless be perfectly true that in every one of •these cases there are possibilities of danger from the disease which circumstances have not yet brought out, and that every insane person may in a certain sense be considered'.a dangerous person, because he is more liable to sudden and unexpected manifestations of .dangerous cunning or violence than a sane person, would be.. But conceding this does not fully, meet the .case. Whoever takes into his own hands so serious a responsibility as the confinement of a- citizen upon his own judgment - merely, assuming it to be necessary in self-defense, must show that, upon the evidence, danger from his being at large was not merely possible, but was probable. Many sane persons, under the influence of strong excitements are subject to serious and perhaps dangerous fits of passion; but another could not be allowed, on this ground alone, to seize and imprison them, in anticipation that possibly the occasion for excitement might arise and the passion be manifested. A rule permitting this would introduce intolerable disorder.
Nevertheless I agree with the defense that it is not essential that a judicial hearing and determination should be had in every instance before an insane person can be admitted to the asylum. I concede that the right to restrain these unfortunate persons for their own benefit or for the protection of others is as clear as the right to restrain one who in the delirium of fever would break away from his attendants, or one who, with a contagious disease upon him, should attempt to enter a public assembly. But the first thing to be determined is whether there is insanity in fact; and in any case where that is open to possible question, prudence would dictate a judicial investigation unless the reasons against it are so imperative as not to admit of the necessary delay, or unless the investigation would probably be so far damaging to the subject of it as to more than counterbalance the probable benefits. It is no doubt true that a trial of the fact would be more or less exciting and disturbing to a- mind already in a diseased or abnormal condition, but that the consequences would be more serious than those likely to follow from the sudden arrest and removal for confinement in the asylum of a person who believes himself perfectly sane is by no means certain. An insane person does not necessarily lose his sense of justice, or of his right to the protection of the law; and when he is seized without warning, and without the hearing of those whom he might believe would testify in his behalf, and delivered helpless into the hands of strangers, to be dealt with as they may decide within the limits of a large discretion, it is impossible that he should not feel keenly the seeming injustice and lawlessness of the proceeding.
The great defect, however, of all reasoning in favor of confinement without legal investigation, is ■ that it assumes the person to be insane. Being insane, it is said, he ought not to be subjected to the excitements of a public and perhaps prolonged investigation. But suppose he proves not to be insane; are there no consequences still more serious to be looked for, from exposing him to the excitements of a sudden seizure and incarceration without a hearing, and a prolonged detention among persons unquestionably insane? In this very case the man who seized and imprisoned this woman did so upon evidence of mental disease which, if he were a prudent man, he would not have acted upon in any important money transaction; the mere word of one or two persons who might, for aught he knew, be interested in making a false case for the purpose. Such treatment, in the case of a sane person of a highly sensitive physical and mental organization, must necessarily have a powerful tendency to induce the very condition which the arrest and confinement assumes, and if the law would permit it, the possible wrongs in individual cases would be nothing short of the destruction of the intellect itself.
. It may be said with perfect truth that a public investigation is no very satisfactory or certain test of insanity, and that the superintendent of the asylum is much more competent to determine the question than the. average judge or jury. But safety is not found in the competency of the tribunal merely: it is the publicity of the proceeding, and the opportunity that is afforded for meeting a fictitious or deceptive case that constitute the chief protection. There is always danger that a secret investigation shall be made by those who manage it, to reach the conclusion desired, irrespective of the real facts; and the intelligence of the tribunal can constitute but an imperfect protection. Indeed, .if one is to be judged unheard,, he must be condemned almost as a matter of course in any case where upon the facts there could be two opinions; and those are the very cases in which investigation ought to be careful, particular and thorough in proportion to the gravity of the consequences of error.
But other difficulties in proceeding without judicial inquiry are also serious. If an insane person is to be confined on the ground that his going at large is dangerous to the community, any one person has the same right to pass judgment upon his case as any other, and when opinions differ respecting the necessity for restraint, one person may bind and another release the subject of their conflicting opinions at discretion. Such a condition of things could not be tolerated. The difficulties are the same in kind* when the unqualified right of the family to remove a member to the asylum for his own. advantage is conceded. In law it becomes necessary carefully to prescribe the limits of judicial authority, so that each tribunal shall act with unquestioned right within its own proper bounds; and shall be wholly excluded from the jurisdiction of others. This is necessary for the protection of all classes of officers; those who judge and those who are to execute their judgments;' the latter class are entitled to know precisely what their duty is so that they may proceed to perform it without peril. But between the different members of a family proceeding to act upon their own opinions, the clashing of authority must be imminent in every case not perfectly clear and unquestionéd. One part of the family may believe in an insanity which the other denies, and when the one rightfully confines, the other may rightfully demand the discharge. Nor in this family jurisdiction can the judgment of the supposed insane person be excluded, for until his insanity is determined he has the same right to judge-that the others are insane as they have to judge that he is. It may happen — as indeed it sometimes has happened — that he will succeed in successfully accusing his accusers. In this case the son-in-law succeeded in placing the mother-in-law in the asylum. There is some-reason from this record to believe that he has not had the education and the advantages of intercourse with the world which she has possessed; and had he accompanied her to the asylum and attempted to deliver her there, it is quite within the limits of possibility that this woman, who if she is insane, has certainly exhibited remarkable skill and power in convincing others that she is not so, might with her superior address have succeeded in delivering him over as the disordered person who needed the treatment of the asylum. To say that the supposition is purely fanciful, and that the imposture would at once have been detected, is to deny that there can be a case which cannot be at once and correctly diagnosed ; and that is to deny what is proved by common observation. The assertion that one is insane, when made by a member of the family, must always impress somewhat the minds of others, and the shock of the charge to the subject of it is not unlikely to lead to excited conduct which shall give to it some color of plausibility. Time, and patient observation and examination might be required to remove the impression, and meantime a great wrong would be done, and the purpose of the asylum in the particular case be wholly defeated.
It is true that the difficulties suggested did not exist in this case, for here the daughter assented to Mrs. Newcomer being placed in the asylum, and in the family no conflict of opinion was expressed. I put aside as wholly unworthy of a moment’s attention the ex post facto assertion of the daughter that she was deceived into assenting by being told that her mother was to be taken as a sane person to the asylum for medical treatment; if the fact were so, she had abundant opportunity to correct the error, which she failed to embrace. There is no room for any question whatever that during all the time Mrs. Newcomer was in the asylum Dr. Van Deusen had reason to believe that he was detaining her there in accordance with the desire of her family and because she was insane. And in my opinion, if she was insane in fact, he was justified in so detaining her, for her own benefit and with a view to medical treatment, under the facts as they were made known to him. A previous finding of insanity would have been a prudent proceeding, but it was not indispensable if the insanity actually existed and was not disputed in the family.
But I understand the defense to go further and insist that even if Mrs. Newcomer was really sane, Dr. Yan Deusen, if he has acted in good faith, is not responsible in damages for her confinement. What in that case is the alternative is not very clearly pointed out by the defense. It cannot be that no one is responsible. The law of no free country can tolerate a condition of things under which a person innocent of crime, and threatening no injury to himself or to others, can be restrained of his liberty, and no person be responsible for the injury he suffers. To admit the possibility would be to concede that arbitrary imprisonment under some circumstances is lawful; and that would be to concede that regulated and protected freedom does not exist. But if the superintendent is not responsible, we look in vain for adequate responsibility anywhere. No doubt the abductors are liable, not only for what they did, but for whatever has been done by others under their express or implied direction; but a new agency takes part in the confinement, and the immediate responsibility must be upon some one having authority where the confinement takes place. If it is not the superintendent, it must be either the trustees of the institution, or the State itself, as the controlling board or authority. But there is only one theory on which either the trustees or the State could be held liable ; and that is, that the superintendent was their agent and servant, and committed the wrong in the actual or supposed execution of their orders. I need not pause to give reasons why this theory is wholly inadmissible; it is sufficient for the purposes of this case to say, that admitting the responsibility of the trustees or of the State would not in any degree relieve the superintendent; for the servant may always be made to respond individually for his own trespasses, even though in law they be imputable to his superior also.
If therefore Mrs. Newcomer was sane when placed in the asylum, what can be said on behalf of the superintendent is, that acting in perfect good faith, and influenced only by public and proper motives, he has committed a mistake through which this woman has been greatly wronged. Do his good faith and correct motives excuse the mistake? — is the question now. The exact position and authority of the superintendent of the asylum are not so well defined that serious questions concerning them may not arise. But I think he is to be classed with the public officers of the State, and is entitled to all the advantages and protections which the law accords to officers performing analogous duties. The legal protections which the law accords to officers must depend largely upon the nature of their duties; whether they are ministerial merely, or are discretionary or judicial. If they are ministerial, the officer has a line of duty clearly marked out for him, and he must follow it at his peril; if they are judicial in the full sense, the very nature of the authority is inconsistent with civil responsibility for mistakes in judgment. Legislators cannot therefore be sued in tort by dissatisfied constituents, nor judges by dissatisfied suitors. There are, however, a class of duties which in a qualified sense are judicial and in another sense are ministerial, where the officer is required to do-certain acts with limited powers to pass his own judgment upon the rights of others. In such eases the officer has been held exempt from responsibility where he has acted in good faith, however great his error, but liable where another has suffered from his ignorance or his malice. That rule of responsibility was laid down in this State in the case of Gordon v. Farrar, 2 Doug. (Mich.), 411, where. election inspectors were sued for refusing to receive a ballot from one who claimed a right to vote. The same rule has been applied in election cases in several of the States. State v. M’Donald, 4 Harr., 555; Miller v. Rucker, 1 Bush, 135; Carter v. Harrison, 5 Blackf., 138; Goetcheus v. Matthewson, 61 N. Y., 420; Weckerly v. Geyer, 11 Serg. & Rawle, 35: Dwight v. Rice, 5 La. Ann., 580; Rail v. Potts, 8 Humph., 225; Wheeler v. Patterson, 1 N. H., 88; Peavey v. Robbins, 3 Jones (N. C.), 339; Fausler v. Parsons, 6 W. Va., 486. It has also been recognized in a variety of other cases, such as 'that of a school board removing a teacher, Burton v. Fulton, 49 Penn. St., 151; or expelling pupils from school, Donahoe v. Richards, 38 Me., 379; Stewart v. Southard, 17 Ohio, 402, and in other analogous eases. Ferriter v. Tyler, 48 Vt., 444; Billings v. Lafferty, 31 Ill., 318. There is force in the suggestion that if such officers are entitled to be sheltered under the protection of them good faith, the superintendent of this asylum has a like right.
There are cases in which the powers which the superintendent necessarily exercises seem to be judicial. I allude particularly to the case of patients received when insane, and improved and supposed to be cured by the treatment they have received. The time comes when such persons are entitled to their discharge, but exactly when it has arrived the superintendent must in the first instance decide. Should he maliciously continue the confinement after a cure had been effected, he would rightfully be held responsible; but if through error in judgment he failed to discharge the patient, he might with great justice claim the benefit of the rule which under corresponding circumstances protects officers who exercise authority of a quasi judicial nature. But under such circumstances the superintendent is dealing with a case in which insanity having unquestionably existed, a presumption of its continued existence favors his action. The case before us was not of this character. There was no presumption against the sanity of this woman when she was placed in the asylum, and the question on this part of the case must be whether the superintendent was- vested with any authority to pass judgment upon her insanity in a manner that can protect him.
Upon that subject it appears to me that I need say no more than this, that neither the constitution nor the statute has undertaken to give him the authority, nor in my opinion could it be given to him or to any other tribunal with the privilege of proceeding secretly, and without giving to the alleged non compos and his friends the opportunity to produce evidence to show that the allegation of insanity was unfounded. The privilege of defending the intellect is as sacred as the privilege of defending life itself, and it is not to be lightly assumed that the Legislature has ever intended to confer it upon a single officer acting .ex parte. The powers actually conferred upon this office, are clearly administrative and limited, and like all corresponding officers, he must at his peril keep within their limits. The hardship of this is not special and peculiar to his office. The sheriff commits an actionable wrong when by mistake he arrests the wrong person, or levies on property not belonging to the defendant in the writ: the magistrate may commit a similar wrong in honestly asserting a jurisdiction he does not possess; the assessor in mistakenly imposing a tax upon a person not within his jurisdiction; the military officer in enforcing military law under error regarding his legal powers, and so on. All officers are liable to similar errors, but the rule of law, no less than the rule of justice, is that he who commits the mistake shall bear the consequences. The opposite rule would invite outrage and wrong instead of tending to prevent them, and would therefore be wholly inadmissible. Purity of motive should protect the officer against excessive damages, but individual rights must have settled and definite rules of protection, and cannot be left to depend upon the opinion of an officer as to what he may or may not do in abridging them.
The English system for the treatment of the insane has been brought to our attention, and some things said in its favor in official reports have been read. It is a system of private asylums with rigid public super vision, and no doubt it has subserved an admirable purpose. But it is susceptible of the grossest abuses, and those who praise it as a great public benefaction must nevertheless concede that serious individual wrongs are not only possible but probable under it. The fact is patent that under that system it is for the interest of those who have charge of the insane to prolong confinement rather than to shorten it; to nurse disease rather than to cure it; perhaps even to confine persons not insane at all, when malice and cupidity deliver them over. The people of this State reject that system; not for its advantages, but because they would have its advantages without its liability to abuse. They would have the insane confided for treatment to those whose humane sentiments and sense of duty shall not be bribed to abuse by self interest. But they have given to the asylum authorities no jurisdiction whatever over sane persons; and nothing ought to be more certain in the administration of the State’s benevolence than that a sane person never passes behind the doors of its asylums as a prisoner. This can never be the case so long as a woman can be seized by a stranger, transported across the State, and delivered to its authorities without any warrant or symbol of authority, and yet with a grasp apparently as firm and inexorable as though the majesty of the law accompanied him, and enjoined implicit acquiescence upon every one whom he might encounter on the public conveyances.
But I think the circuit judge was in error in applying to the case the rule of responsibility which is applied where several persons are joint participants in the same wrong. The theory of the prosecution seemed to be that Dr. Yan Deusen was the keeper of a great prison into which he made it his business to entrap and confine weak and helpless people; that for this purpose he entered into conspiracy with wicked and depraved people outside; with children who would get rid of their parents in order that they might seize upon their property; with men who quarrelled with their wives’ relations and would rid themselves permanently of the disagreeable association ; with any man who had animosities to gratify, and found the mad-house the most convenient means for the purpose; and that he stood at the door of this hideous place of confinement ready to seize and thrust into its hopeless cells every victim whom avarice or malignity might entice or drag within his reach. He has therefore been punished in this case, not for the confinement merely, but for the malice of the son-in-law and his relations, and for conduct of others to which he was a total stranger. All the little circumstances of the affair from beginning to end which tended to show misbehavior in others have been carefully collected and arrayed in a striking light as appeals to the sympathies of the jury against him, and their whole force has been thrown against the very person who it is conceded, has acted in good faith throughout, and whose benevolent intentions cannot successfully be disputed. Indeed, one might infer from his being selected as the person tó be punished for the wrong done by all, that his good faith was supposed to aggravate the offense rather- than to mitigate it, and that an error of judgment in one whose motives were of the highest benevolence, was more culpable than the malice or cupidity which had brought about the error by their unfounded accusation.
Had all the parties concerned been joined as defendants, it may possibly be that under the technical rules of law it would have been impracticable to separate the act of the superintendent from that of the others, and hold him responsible for his own conduct only. The law in general refuses to apportion the consequences of a wrong as between wrong-doers, and had the suit included as defendants all the parties concerned, possibly it would have been necessary to render judgment for the same damages against all. But Dr. Van Deusen has been sued alone. If he is guilty of any wrong it is of the wrong of confining the woman in the asylum. He was wholly unconnected with all that preceded, and was as much a stranger to it, either in intent or knowledge, as any. other citizen of the State. The- abduction of this woman was not his fault in any sense. If in any other action he might, under somewhat harsh and technical rules of law be held responsible for it, in this action, which proceeds for his own misconduct, his responsibility should be held to begin where his connection with the case begins. He received the woman at the door of the asylum knowing nothing of what had preceded, and his fault, if fault there was, dates from that moment. Others are justly responsible with him for the confinement, because ■they procured it, but he is not justly responsible with them for the abduction, because he had nothing to do with it whatever. He was a public officer, who believed that his duty called upon him to act as lie did at that , time under the’ circumstances; if he erred in judgment on the circumstances as they appeared to him, he is liable, though his motives were pure; but it would be wholly inconsistent with the rules of responsibility for legal wrongs to hold him liable for the conduct and malice of others with which he was only connected by succession of events, and not otherwise.
In what is above said I have assumed that Mrs. Newcomer when brought to the asylum denied her insanity, so that the restraint was substantially against her protest. If it should appear on a new trial that such was not the fact, I agree with Mr. Justice Campbell that the superintendent was justified in receiving her as a patient.
Campbell, C. J.
The views more fully expressed by my brother Cooley upon the main legal question, as to the liability of the superintendent, in which I substantially concur, will render it unnecessary for me to say any more than will suffice to explain some views which have governed my conclusions.
The plaintiff in error has not been, and I think, could not be, made a final arbiter of the correctness of his own action. That would make him a judge in his own case, and deprive parties ■ secluded by him of necessary legal-protection. Unfortunately our laws have made no special provision for action by any public officer in cases of private persons who are not paupers, and who are not under guardianship; and- in such unprovided cases there is no alternative left to the superintendents of our asylums except to act on their common law responsibility. I "have no doubt that the regular certificate of any public officer who should be intrusted with the duty of conducting investigations in such cases would be a. complete justification to a superintendent acting on it in good faith. The present case shows that it is important for the welfare of our public institutions that their managers should be protected from any undeserved vexation.
The proceedings to determine the capacity of persons to' be left at their own disposal, or put under the care of others, while in a certain sense they are somewhat analogous to ordinary judicial inquiries, may be summary, and are not necessarily long or troublesome;- and they can always be conducted with as little notoriety and annoyance as is consistent with public and private safety. They certainly need be no more annoying than the removal and seclusion of unwilling parties. But it certainly cannot'be tolerated that persons who may be sane should be deprived of legal protection upon the risk that persons actually insane may be unduly excited by such legal steps. The danger is largely imaginary, but whatever may be its extent it must not be made a pretext for secluding persons who may be sane.
'The law has but one test of insanity, and that is whether a person is compos mentis, or capable of exercising rational self-control. If not so capable those who have by relationship or otherwise become the actual and proper custodians of the person who is non-compos may i'&wfully place him in a public asylum for treatment, and W superintendent may lawfully receive him. Having so lawfully received Mm, he may lawfully retain Mm while in good faith he believes him insane, unless discharged by habeas corpus or by the request of his friends.
Nothing but actual insanity will authorize the seclusion of one who makes known his objections and claims against reception. If no objection is made by a sane person to his own seclusion he cannot complain of it afterwards.
The authorities are uniform that there must be consent or actual insanity. King v. Coate, Lofft, 73-76; Brookshaw v. Hopkins, Lofft, 240; In re Shuttleworth, 9 Q. B., 651; Rex v. Gourlay, 7 B. & C., 669; Anderdon v. Burrows, 4 C. & P., 210; Rex v. Turlington, 2 Burr., 1115; Rex v. Clarke, 3 Burr., 1362; Scott v. Wakem, 3 F. & F., 328; Symm v. Fraser, 3 F. & F., 859; Hall v. Semple, 3 F. & F., 337; Fletcher v. Fletcher, 1 Ell. & Ell., 420; Ex parte Greenwood, 24 L. J. Q. B., 148; Denny v. Tyler, 3 Allen, 225; Look v. Dean, 108 Mass., 116; Colby v. Jackson, 12 N. H., 526; Davis v. Merill, 47 N. H., 208.
For the purpose of treatment in an asylum, it is certainly not necessary that, in addition to insanity, there should be evidence of danger to the lunatic or others beyond what is implied in the insanity itself. For other purposes not designed for the care of the patient, imprisonment could not be justified probably without some danger. It is always justifiable in such cases. Lott v. Sweet, 33 Mich., 308. But no such danger was necessary to be shown here.
■ Dr. Yan Deusen was, in my opinion, fully justified if Mrs. Newcomer was not sane, or if she made no plain objection which he was bound to regard, so as to call his attention to her claim of sanity.
If she was insane then there was nothing to make out any cause of grievance whatever. And if she was sane there was no testimony in the case which could properly make Dr. Yan Deusen responsible for any act of her relatives or their agents, or for anything beyond what was necessarily incident to the confinement in a properly regulated asylum. The rules and regulations were all shown beyond dispute to be proper, and if any other person in the asylum without his procurement did acts of an improper character, he cannot be bound to respond for them. There was no evidence legally tending to show conspiracy or bad faith in plaintiff in error, and the testimony of insanity was very strong. And I cannot avoid the belief that unless the jury had been instructed that Mrs. Newcomer could not be confined unless dangerous as well as insane, no verdict could have been rendered against Dr. Yan Deusen.
Much irrelevant matter was introduced, and some rulings were had upon professional evidence and other points which were objectionable, but which are referred to by my brother Marston, with whom on these points I concur.
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Campbell, C. J.
The bill of complaint in this cause was filed on behalf of a judgment creditor to avoid a security executed by Chapelle, the judgment debtor, to Eutson as'trustee for the benefit of Alcona county. It is claimed this document is void as to complainant for inherent defects, and as tending in fraud of creditors.
The instrument in question was made September 2, 1876, by Edward Chapelle and wife to George Eutson for the nominal consideration of $10,000 to provide for securing such balance as should be found due from the grantor to Alcona county for moneys received and not accounted for as treasurer of that county. The particular terms on which important questions are raised will be referred to presently.
A preliminary question is raised touching the power of counties to avail themselves of such a security. It is claimed that it was their duty to prosecute the treasurer and his bondsmen.
No authority is produced, and we can conceive of no reason why security should not be obtained for a debt to a public corporation where it can be had. It in no way concerns strangers that a county may rely on one security rather than another. If it is good between the parties, and is an honest and fair transaction, no creditor can complain, unless he has superior rights. It is quite as just that the property of a debtor should pay his official as his private debts. The facts prove conclusively that'there were claims which it was equitable that Chapelle should secure and provide for. The case of Rood v. Winslow, 2 Doug. [Mich.], 68, is sufficient authority for holding that such security may be taken in the name of a trustee.
The chief controversy was made on the nature of the instrument.
We do not think the questions applicable, to general •assignments have any bearing on a security which is only intended to secure a single debt on specific property. All of that doctrine is inapplicable. The doctrine is too elementary to bear discussion that a debtor may always give a bona fide security for any claim against him, and that fraud is a question of fact and not a question of law, in all cases where there is no statute to the contrary, and where an honest effect is possible.
• This instrument, analyzed into its various parts, consists of the following elements: It conveys to Butson the property in question specifically described, as trustee upon the trusts named, viz.: first, to provide a fund for and secure the payment of all sums that are or may be found upon a proper examination to be due and unaccounted for from Chapelle as treasurer aforesaid; second, to that •end, in his discretion, to sell the premises or any part thereof at public auction, on eight weeks publication, at least once a week, in the Iosco County Gazette, a newspaper published at Tawas City, but circulating in Alcona county; third, with Chapelle’s consent to sell at private sale and on credit upon good security, if thereby a larger price could be obtained; fowrth, upon payment by Chapelle of all moneys due, to convey back to him all unsold property and proceeds in his hands after deducting costs and expenses.
Assuming that selling on credit cannot-be provided for in such a security as this, the present instrument gives no such power. It can only he done with the concurrence of the grantor, and until some creditor obtains a lien on the land, that could have been done whether agreed on before or not. If this provision could be construed so as to authorize this to be done by the trustee alone, or in defiance of creditors, a different question would arise.
The statutes of this State expressly authorize trusts to be created to “ sell lands for the benefit of creditors.” Comp. L., § 4124. This language is too broad to be confined to general assignments. This instrument contains no clause whereby, without paying his debt in full, the grantor can revoke, determine or alter the trust or charge. Comp. L., § 4689. We do not discover any other difficulty in the transaction whereby it can be made void as to creditors under any of our statutes, unless it is fraudulent in fact under § 4716. We are of opinion that it was not fraudulent in fact.
If instead of an absolute trust deed we hold it to be a mortgage in form, as it was apparently intended to be, and was so held below, then there can be no objection to it unless fraudulent in fact. It certainly may be regarded as a mortgage in equity, because it is intended only as security for a debt which the debtor may discharge at any time and so release the land. It was designed to secure a debt already due, inasmuch as Chapelle had ended his official business, although it might require an examination of accounts to get at the true balance. In law it is presumable that the treasurer’s books themselves would show the amount. But, however this may be, it had all then accrued. The validity of the mortgage could in no way be affected by the sufficiency of the power of sale, which is no necessary part of it. If the power of sale should be carried out by a shorter notice than such as the statute authorizes to' bar the equity of redemption, the only consequence might be the continuance of a right to redeem until foreclosure by lapse of time or in equity. Comstock v. Howard, Walk. Ch., 110.
In either point of view there is nothing which could justify a court of equity in holding this instrument void.
We think the court below properly treated the instrument as a mortgage. The interest of Chapelle was subject to levy, and needs no interference of equity for that purpose. The whole theory and prayer of the bill rest on the ground of the actual and complete invalidity of the transaction, and there is no relief sought on any other ground. This being so, and no case being made or claimed to redeem, the bill was rightly dismissed as to both defendants. The bill does indeed contain some of the features of a statutory judgment creditor’s bill, but inasmuch as it seeks to enforce a levy on property claimed to be subject to levy, and inasmuch as the property was in fact subject to levy, that remedy was premature as well as inconsistent.
The decree must be affirmed with costs.
The other Justices concurred. | [
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Graves, J.
November 19, 1859, Hiram Butler and wife made their mortgage to. plaintiff on the southwest fractional quarter of section 7, in township 12 north of range 18 west, being in the county of Newaygo, to secure payment in five years of $200 borrowed money, with annual interest at ten per cent. September 1st, 1868, Butler and wife conveyed to Cameron and wife as joint grantees, but subject to the mortgage. June 28, 1871, Adams commenced foreclosure by advertisement under the power of sale in the mortgage, and on the 21st of September following, the sheriff made sale pursuant to the notice, and deeded the whole premises to Adams as lawful purchaser for $315.12.
September 3d, 1873, or nearly two years later, Cameron and'wife filed their bill against Adams to redeem the mortgage, and the grounds finally relied on were first, the waiver of the right accruing from the sale by the receipt of a payment of $100 on the mortgage after the sale; second, the accidental inability by disease of Cameron to make redemption within the year; and third, the great disparity between the sale price and the value of the premises. September 9th, 1873, being six days after the filing of the bill, Adams commenced this action of ejectment in the same circuit to recover the premises. Issue was joined and the action was then stayed to await the determination of the case in equity. April 1st, ¡1874, that cause was brought to hearing before the cir- , cuit court on pleadings and proofs, and the circuit judge made a decree allowing redemption on payment of the .remaining principal and interest called for by the mortgage together with the costs of foreclosure in four months, and ordering the bill to be dismissed in case of non-payment.
Adams appealed to this court, and in August of the same year Mrs. Cameron died. April 30, 1875, this court reversed the decree below and dismissed the bill. The case is reported in 31 Mich., 426.
January 12,1877, the present case went to trial before a jury, and Adams was allowed to recover the whole premises of Gilbert B. Cameron as survivor of himself and wife, and Cameron now asks a review of certain rulings in the action.
When the deed given on foreclosure and the sheriff’s affidavit of the sale were introduced, it was objected, first, that it did not appear from the deed that Adams bid for each parcel the distinct sum which the deed represented the parcel was sold for, and that he was the highest bidder; second, that the sheriff’s affidavit did not cure the defect since it was equally deficient; and third, that the certificate of the time when the deed would be operative, was not in compliance with the statute. Comp. L. § 6920.
There are several reasons for overruling these exceptions. It is sufficient to refer to one. The instruments mentioned contradict the assumptions on which the objections rest. The deed recites that the premises were sold to Adams for $315.12, that being the highest bid and he the highest bidder; and this is immediately succeeded by the explanation that the premises were sold in four designated parcels and each for a specific sum, and these sums aggregate the amount first mentioned, namely $315.12. The sense is clear that each parcel was sold to Adams for the price affixed, and that such price was the highest sum bid therefor, and that he was the highest bidder. Nothing further is required on the first and second grounds.
The sheriff certified that the deed would become operative at the expiration of one year from the twenty-first day of September, 1871 (the day of sale), “unless otherwise redeemed according to law in such case made and provided.” It is objected that the word “otherwise” causes a fatal ambiguity, and that the certificate conveys the impression that the whole premises, if any, would have to be redeemed. That the legal effect is not changed by the word complained of, is too plain to excuse comment. The redemption signified was the redemption authorized by law, and that was not only certain, but practicable. The deed showed on its face that there was opportunity to redeem any one or more parcels.
The plaintiff adduced evidence of Mrs. Cameron’s death. The fact was objected to as incompetent. No explanation was offered. It is now asserted by way of reason for the objection, that her death had not been suggested of record. Without going further, it is enough to say that the exception was incomplete for want of specification, and moreover that we have no evidence that a suggestion was .not entered. The ease does not allege that it was not, and the record is not before us. That appears affirmatively, and we cannot assume that Mrs. Cameron’s death was not suggested.
The defendant offered to show that the property mortgaged was a farm, and so situated and improved as to make it subject to sale as one parcel, and that it probably would have sold for a higher price than the sum obtained if it had been so disposed of: and further, that the parcel occupied as homestead was first sold. The offer was refused on an objection that the suit in chancery estopped the defendant from setting up the matters proposed against the sale. No special discussion is necessary in regard to the principles which govern the operation of decrees in silencing new contentions. In general the effect of an unqualified dismissal on the merits is conclusive on whatever matters are involved in the decision. Freeman on Judgments, ch. 22; Daniell’s Ch. Pr., 659 and note: 994 and note; Story’s Eq. Pl., § 793; Mitford’s Pl., 238, 239. The adjudged cases are too numerous to be cited.
In suits to redeem, the consequence of the decree is an immediate and absolute foreclosure, and hence a complete bar of the mortgagor’s rights. Goodenow v. Curtis, 33 Mich., 505-510; Cholmley v. Countess Dowager of Oxford, 2 Atk., 267: 2 Spence Eq. Jur., 671; Palk v. Lord Clinton, 12 Ves., 48, 62; Bishop of Winchester v. Paine, 11 Ves., 194, 199; Perine v. Dunn, 4 Johns. Ch., 140; Borrowscale v. Tuttle, 5 Allen, 377; Lansing v. Russell, 13 Barb., 510; Burhans v. Van Zandt, 3 Seld., 523; Wilcox v. Balger, 6 Ohio, 406; Pitman v. Thornton, 66 Me., 469.
But the effect due to the decree made in the redemp tion suit by this court, upon the right of Cameron to attempt a defense against the ejectment by going back and overhauling points of regularity concerning the foreclosure sale, does not rest exclusively on the ground mentioned. He knew as well when he filed his bill as he has known since, the exact particulars of the mode of foreclosure, and what is now proposed as matter of defense dn the suit at law for possession was as much within the scheme and object of the suit in equity as it is subservient to the theory of the defense here..
Still, when he framed the case in equity and did not include the incidents in question, they were not simply overlooked or even ignored. He saw them and decided that they were not irregularities. He put a construction upon them and considered they were not matters of inequity and not of force to hinder the foreclosure from barring redemption of the mortgage. He described the sale in his bill and specified the parcels in which the premises were sold and distinctly assumed that the sale was a valid sale when it was made, and that it could be avoided only by matter subsequent, and so manifest was this character of the case and of his position in regard to it, that when the circuit court came to decide and concluded to allow redemption, it imposed the condition that Cameron should pay the costs of the foreclosure, and he acquiesced.
Finally when the cause was heard here on the appeal by Adams, the state of' the record and the claims and concessions of the parties implied so distinctly and positively that neither the sale in parcels nor any other of the proceedings was objected to or was objectionable, that in giving the opinion, the court was led to say expressly that “ so far as appears, the sale was regular.” 31 Mich., 427. The position now taken, and that assumed and maintained in the suit in equity, are in direct contradiction. In the former case it was as fully admitted as it could be without express terms to that effect, that the sale in parcels was not questioned or questionable, and that the sale itself as an entirety was valid when if occurred, and now it is said that the selling in parcels vitiated the foreclosure. “Every person,” says Chancellor Kent, “is bound to take care of his own rights, and to vindicate them in due season, and in proper order. This is a sound and salutary principle of law.” Le Guen v. Gouverneur, 1 Johns. Cas., 486, 502. Had the court given way to the offer made below, it would have been a violation of this principle.
With full knowledge of the facts the defendant had enjoyed his day in court and had pursued his own way to assert and maintain his rights, and he was not- entitled to assume a new position at war with the first. If the foreclosure proceedings were insufficient to justify the sale, a point not open, the objections belonged to the equity of the case for redemption, and should have been made there. The defendant, however, declined to do that; and not only so, he admitted in that case that there was nothing in the proceedings to impair the sale. The court was right in refusing him permission to go behind the decree and draw into question the foreclosure proceedings referred to. Lilley v. Adams, 108 Mass., 50; Washburn v. Great Western Ins. Co., 114 Mass., 175; Burnett v. Smith, 4 Gray, 50; Wilson v. Wilson, 30 Ohio St., 365; Rodermund v. Clark, 46 N. Y., 354; Sloan v. Holcomb, 29 Mich., 153; Lord Tredegar v. Windus, L. R. 19 Eq. Cas., 607: 13 Eng., 538; Sanger v. Wood, 3 Johns. Ch., 416; Beam v. Macomber, 35 Mich., 455; Gould v. Vaughan, 30 Mich., 376; Hazen v. Reed, id., 331.
Bonker v. Charlesworth, 33 Mich., 81, is cited as authority for the position that the dismissal of the bill was not ground for excluding defendant’s offer. There the object of the bill was to cancel the mortgage which it was alleged had been obtained from complainant by fraud and while he was a minor. No other ground was stated against the foreclosure, and whether the proceedings were in due form was not made a question and could not be considered without departing from the subject of the altercations and the fundamental purpose of the bill.
Moreover, there was no concession or assumption, either express or tacit, that the course of proceeding had been regular, and when it was ascertained that the mortgage was valid, the only decree possible was one dismissing the bill. The result was entirely consistent with the position taken in the second instance that the proceedings were not in due form. The case is not applicable.
There is nothing in the record which requires further notice, and the judgment must be affirmed with costs. The cause will be remanded for any further action which may be proper.
The other Justices concurred. | [
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Wiest, J.
The Beaverton Power Company, plaintiff, filed the original and amended bills herein to obtain specific performance of an alleged verbal agreement binding defendant company to release to plaintiff the right to flow the Weinholdt farm, so-called, by a dam to be erected by plaintiff across the Tobacco river at the north 8th line of section 16, Tobacco township, Gladwin county, and to enjoin defendant from raising the water in the river above such line. The Wolverine Power Company, defendant, by answer and cross-bill, alleged an agreement binding plaintiff to grant it right to flow, by its dam at Edenville, the Hunter farm, so-called, up to the north and south quarter line of section 9 of the same township. The circuit judge was unable to find the agreement alleged by plaintiff, and, therefore, refused specific performance, and also denied relief to plaintiff by way of equitable estoppel or injunction. The court restrained plaintiff from erecting a dam at the north 8th line of sectioii 16, or below the north and south quarter liné of section 9, and awarded plaintiff $270 for all damages occasioned by flowage of the Hunter lands, past, present, and future, by defendant’s dam at Edenville. Plaintiff appealed.
The Beaverton Company has a power dam across the Tobacco river at the city of Beaverton, Gladwin county, and the Wolverine Company has a power dam across the same river ten or eleven miles lower down at Edenville. While defendant’s dam was in course of construction it was erroneously supposed by officers of the Wolverine Company that the dam would not back water above the crossing of the north 8th line of section 16, and for that reason they were willing that the Beaverton Company acquire title to the Hunter farm of 156 acres on the southerly side' of the river, the lower end of which is at the 8th line of the section, but claim that this was based on an agreement that, if the water did flow any part of the Hunter farm, the Beaverton Company should permit the same upon payment for such land. The Beaverton Company acquired title to the Hunter farm and claims the right to erect a dam at the 8th section line. At the mentioned line and across- the river from the Hunter farm is the Weinholdt farm, the title to which is in the Beaverton Company, but with right of flowage thereon in the Wolverine Company. The right of flowage of the Weinholdt farm being in the Wolverine Company, the Beaverton Company could not erect a dam at the 8th line unless it acquired such right of flowage. • The Beaverton Company holds rights of flowage from its dam at Beaverton to the north 8th line of section 16, with the exception of the Weinholdt property, and the Wolverine Company holds rights of flowage from its Edenville dam to the north and south quarter line of section 9, with the exception of the Hunter farm.
Right to flow the Weinholdt land was acquired by Frank I. Wixom, as trustee, in June, 1916. In August, 1913, the Riverdale Farms Company, of which Mr. Wixom was a stockholder but not an officer, was organized to take over, and later did acquire flowage options held by Mr. Wixom. December 11,1918, Mr. Wixom, trustee, deeded the flowage rights to the Riverdale Farms Company, a corporation, and May 30, 1923, that company deeded the flowage rights to the Wolverine Company. The Wolverine Company was organized in March, 1923., June 1, 1923, the Wolverine Company executed a mortgage, inclusive of the flowage rights, to the Ohio Savings Bank & Trust Company of.Toledo, Ohio.
Plaintiff claims that Mr. Ronald Ross, its president, was assured by Mr. Frank I. Wixom, president and general manager of the Wolverine Company, that the back water of the Edenville dam would not go to the north 8th line of section 16, where plaintiff company proposed to place its new dam and a release of the flowage rights on the Weinholdt lands would be given plaintiff for $600, and, relying thereon, the Hunter farm was purchased by it at an expense of $8,500, and title to the Weinholdt land, subject to flowage right, purchased at a cost of $400. Defendant denied the alleged assurances.
Mr. Ross testified that in January, 1923, Mr. Wixom informed him that the dam to be.built near Edeiiville would back water in the Tobacco river a little above the Dale bridge; that he then told Mr. Wixom of the plan to purchase the Hunter land, provided he could also buy the flowage right held by the Wolverine Company on the Weinholdt land, and Mr. Wixom said he would be glad to sell it as the water 'would not bach up there and he would attend to it right away; that in April, 1923, he told Mr. Wixom that a Mr. Behan had been to see him about the Hunter land, and Mr. Wixom said that Mr. Behan had been to see him and he had told Mr. Behan that he could not use the land and was not interested, and, “if Ross wanted it they did not want to do anything against him, something to that effect.” Following this talk Mr. Ross purchased the Hunter farm for $8,500, and some time later deeded to the Beaverton Company. '
Mr. Wixom testified that his talk with Mr. Ross related to a proposed dam above the north and south quarter line of section 9, and at that point a dam would not interfere with the pondage of water at Edenville, and that he was willing to let Mr. Ross, in behalf of the Beaverton Company, acquire title to the Hunter farm by reason of an agreement made by Mr. Ross with him that if the dam at Edenville did flow any part of the Hunter farm such flowage should be permitted upon payment for the land so covered.
Mr. Manchester, vice-president of the Wolverine Company, also testified to such an agreement made by Mr. Ross.
If we accept the testimony of Mr. Ross we cannot find a contract susceptible of specific performance. There was no agreement with the Wolverine Company. No writing was made and no consideration paid, and there was no part performance in any respect. At the most there was reliance upon the assurance that the dam at Edénville would not back water to the Hunter and Weinholdt farms, and, there fore, Mr. Ross, for the Beaverton Company, purchased the Hunter farm and title to the river frontage of the Weinholdt farm, subject to right of flow-age in the Wolverine Company.
If we decree specific performance, we must state the contract to be performed and must find it valid and binding upon the party we order to carry it out. This we cannot do upon this record. What we cannot do under the rule of specific performance cannot be indirectly accomplished under the doctrine of equitable estoppel.
The Beaverton Company, having established no right to interfere with defendant’s flowage of the Weinholdt farm, and, therefore, no right to erect a dam from the Hunter land to the Weinholdt land,below the mentioned quarter line, brings us to the question of the right of the Wolverine Company to flood, if necessary, any part of the Hunter land.
The right of flowage is an interest in land (Township of Beaverton v. Lord, 235 Mich. 261), and can only be acquired by an instrument in writing, under seal, in the nature of a deed of conveyance or by prescription. Glidden v. Beaverton Power Co., 223 Mich. 383. A verbal agreement to convey a right of flowage is void, will not admit of a decree for specific performance, nor work the same result by way of equitable estoppel. Neither will a breach thereof serve as a basis for awarding damages. The alleged verbal agreement, set up by plaintiff, was void and the alleged verbal agreement, set up by defendant, was also void, because both related to rights of flow-age and neither was in writing. Both being void, no relief can be granted either party thereunder. We cannot grant defendant right of flowage of the Hunter farm by virtue of any agreement.
The decree in the circuit proceeded on the theory that there would be flooding of a small portion of the lower part of the Hunter farm, and compensation was awarded for the damage occasioned thereby, past, present, and future. This, of course, was not based upon any agreement, but upon the fact that the flooding was, and will be, without right, but, under the circumstances disclosed and the great damage to the Wolverine Company,' if enjoined as prayed for by plaintiff, and the inconsequential result to plaintiff, the plaintiff should be required to accept damages and have the same fixed once for all.
In the flooding of any part of the Hunter farm plaintiff has a grievance, but if this can be composed by an award of damages, it will, in equity, be so done and an injunction refused in an instance where an injunction would occasion great injury to defendant and no substantial benefit to plaintiff. This principle of equity is elucidated in many opinions of this court. See Fox v. Holcomb, 32 Mich. 494; Hall v. Rood, 40 Mich. 46 (29 Am. Rep. 528); City of Big Rapids v. Comstock, 65 Mich. 78; Blake v. Cornwell, 65 Mich. 467; Allen v. Thornapple Electric Co., 144 Mich. 370 (115 Am. St. Rep. 453); Howard v. Bellows, 148 Mich. 410; Stock v. City of Hillsdale, 155 Mich. 375; Murphy v. Water Power Co., 204 Mich. 511; Monroe Carp Pond Co. v. River Raisin Paper Co., 240 Mich. 279.
Neither party may construct a dam between the mentioned 8th line and the quarter line, under existing conditions.' This being true, we are not impressed with the claim that plaintiff will be seriously damaged by the small amount of flowage on the lower part of the Hunter farm. We do not think, however, that the damage for all time is to be fixed in accord with the mentioned void agreement. The circuit judge evidently awarded plaintiff, for the land estimated subject to flowage, the amount per acre that plaintiff had paid for the same. We think something more than the mere value of the land should be awarded, and fix the damages at the sum of $500.
With the modification mentioned, the decree is affirmed, with costs to defendant.
North, C. J., and Fead, Fellows, Clark, McDonald, Potter, and Sharpe, JJ., concurred. | [
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Potter, J.
Defendant Meyer Perlman, owning real estate, desired to erect a combined store and apartment building thereon. He purchased lumber therefor of plaintiff under a written contract as follows:
“September 25, 1924.
“Mr. Meyer Perlman,
“Mrs. Zelda Perlman,
“289 Josephine Ave.
“Dear Sir and Madam: We will furnish you all of the rough lumber and finish required. construction of your apartment building (four stores, 50 apartments) to be erected on lots 32 of Herbert L. Baker’s subdivision located on the west side of 16th between Perry park and West Grand boulevard at prices shown on our current list price prevailing on this date.
“The terms of sale to be, payment in cash on the 10th of each month on all deliveries made during the preceding month and on such payments made we will allow you a discount of 10%.
“If you find it. desirable to do sq at the time you require a release from us to .enable you to receive the proceeds, of the first mortgage, we will accept from you your notes aggregating $33,000, on the following basis. The notes are to be dated at the time they are given us to bear interest from March 1, 1925, to be made payable as follows:
“$750 on April 1, 1925, and $750 on the 1st of each month thereafter for 29 months and the remainder of the $33,000 to be payable at the end of the 30th month after April 1, 1925. These notes to be secured by mortgage on the building and lots above described free from all liens and mortgages except a first mortgage to the United States Mortgage Bond Company of Detroit for a sum not exceeding $175,000. These notes aggregating $33,000, we will pass to the credit of your account or a net sum of $30,000 and at the completion of the building, if the amount for materials delivered to same is in excess of $30,000 such excess to he paid for in cash with [in] 30 days from that time.
“If you should wish to pay us in cash at the completion of the building and prior to April 1, 1925, we will agree to give you a discount of $5,000 off the $33,000 in notes.
“If this proposal is satisfactory to you please accept same in duplicate where indicated below when same will become a binding agreement upon both of us which shall extend to and be obligatory upon the heirs, successors and assigns of each of us.
“Yours very truly,
“Hartwiok Lumber Company,
“Wm. H. Kittle, (Sgd.)
“Vice-president.
“I hereby accept the above proposal and agree to comply with all terms contained therein.
(Sgd.) “Mr. Perlman,
(Sgd.) “Zelda Perlman.”
Defendant Perlman purchased lumber to the value of $38,747.09 at cash prices.. Defendant Perlman gave a first mortgage on'the premises to defendant United States Mortgage Bond Company, Ltd., for $175,000 and a second mortgage to plaintiff for $33,000. Defendant Perlman did not pay in cash within 30 days the cost of materials furnished by plaintiff in excess of $30,000 at cash prices. Plaintiff claimed a lien on the premises for materials furnished for $8,747.09, filed a bill to establish and foreclose the same, obtained a decree for $9,348.46, being the amount claimed with interest, and at that figure, plus costs, defendant United States Mortgage Bond Company, Ltd., purchased the premises. Prior to the commencement of this suit plaintiff’s mortgage had been reduced by payments thereon to $24,000, when default was made in further payments, and the bill herein was filed July 12, 1927, to foreclose the second mortgage. There was decree for plaintiff for $28,363.92 and defendants appeal.
The sole question is, was the mortgage usurious? If so, plaintiff cannot recover interest. Section 5998, 2 Comp. Laws 1915. Plaintiff had a right to charge more for its lumber sold on credit than when sold for cash. That it did so does not render the mortgage herein usurious. Rosen v. Rosen, 159 Mich. 72 (134 Am. St. Rep. 712); 39 Cyc. p. 926; 27 R. C. L. p. 214; 28 L. R. A. (N. S.) 102, note.
Decree affirmed, with costs to plaintiff.
Fead, C. J., and North, Fellows, Wiest, Clark, McDonald, and Sharpe, JJ., concurred. | [
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Fellows, J.
These six cases bring to our attention the unfortunate discord among the three Schwanbeck brothers who for many years were associated together in business and who until the happening’ of the events here involved had, and rightly had, unbounded confidence in each other. Two of the cases aré chancery cases and four of them are cases on the law side. It was originally stipulated that, for the purpose of bringing to án end all the litigation between the parties, the case's be heard together, the trial judge to make findings in the law cases followed by judgments, and to make decrees in chancery cases, but by a later stipulation the law cases were transferred to the chancery side with agreement that one decree be made in all the cases. After this order was made, the pleadings were not revamped; there was talk about making amendments but none were in fact made. One decree was entered and appeal was taken by both parties. In view of the two stipulations and the spirit of them, we shall treat the pleading as amended so far as may be necessary to present the questions before us.
Louis H. Schwanbeck is charged with defrauding his brothers through the manipulations of the corporations named. He will be styled defendant, and the others will be styled plaintiffs. There were literally thousands of items involved in the lawsuits. Some of them were adjusted on the advice of counsel before the hearing, in many the results reached in the trial court are accepted. Defendant’s counsel aptly and properly states the issues and the sole issues here involved. They say in their brief:
“The sole issues on appeal are:
“(1) The plaintiff contends that the decree so far as it concerns the St. Cosme Land Company stock adjustment is erroneous. The defendant contends likewise.
“(2) The plaintiff contends that the Wabunga stock adjustment was erroneous. The defendant contends it was correct.
“ (3) The plaintiff contends that the allowance by the court of the general commission account was erroneous. The defendant contends that the court was correct.
4 4 (4) The defendant, in addition, contends that the decree was erroneous also in taking from the defendant the Merchant’s .deferred commission account, which he purchased with his own funds from the defunct Merchant Company.”
We shall state, and need only to state, the facts necessary to decision of these four questions. Preliminary to taking up the detail, we should make plain that both corporations were practically family affairs, there were but few stockholders outside the brothers and their relatives, and outside of the brothers there are no stockholders here complaining. This litigation is purely a family affair.
1. St. Cosme Land Company. This corporation was organized to acquire real estate for subdivision and sale; it was not to do that work itself; that was to be done by the Merchant Company, a real estate broker. The shares were of the par value of $100, and there were issued to Grus and Will, brothers of defendant, 100 shares each, to a nephew of defendant 20 shares, to his brother-in-law 10 shares, to the attorney organizing the company 1 share for qualifying purposes, and to defendant 170 shares. There were also issued to outsiders, 135 shares. Defendant insists he is lawfully entitled to 171 shares, having paid for that number, and plaintiffs insist he is entitled to none. The trial judge found he was entitled to 100 shares. It seems to be admitted that the land involved was to be purchased by defendant at $1,250 per acre and turned into the corporation at $1,300, and the promotion fee thus obtained was to be divided between the members of the family. The circumstances of its incorporation are these: Defendant’s attention was called to some acreage in Ecorse township suitable for subdivision purposes. The Merchant Company was anxious to plat and sell it, but apparently was not in' financial condition to take it over, but a Mr. McCollum who was connected with that company offered to and did put in the deal $5,500. August and Anna Keppen owned 56.86 acres, and this was first acquired; afterwards 31.55 acres were acquired from Henry Keppen, and 7.5 acres from William Aben. The pieces were each platted and were named Elmwood Park, 1, 2, and 3. The question to be solved is how much, if any, cash was put into this corporation by defendant. A reading and a re-reading of defendant’s testimony satisfies us that the trial judge, who saw and heard him testify correctly concluded that but little credence should be given his testimony. The record is satisfying that he was not a truthful witness. But decree should not pass against him for this reason alone. Laying aside the conflict between the testimony of the parties and taking only the mathematics based on the undisputed facts, the conclusion is irresistible that defendant put into the deal the same amount each of his brothers did and no more.
Part payment was made on each of the purchases, deeds were executed to the company, and mortgages for the balance were given. The mathematics show that the cash payments were as follows: On the first piece $24,537.50 (there is a little dispute as to the correctness of this figure, but it does not affect the result), on the second piece $13,437.50, and on the third piece .$3,875, making a total cash expenditure of $41,850. There is no question but that this amount was paid out in cash. There was received from the outside stockholders the following sums: A. J. Monnier, $3,000, J. L. Liggett, $5,000, Cecil McCollum, $5,500. There is a dispute as to the amount Gus and Will put in, but the difference is inconse-' quential. For practical purposes, one set of figures is as good as the other. We take one of the sets of figures; it shows the following sums paid: by Gus $8,674, by Will $8,674, by Louis H. II (nephew) $1,734.80, by Gibbings (brother-in-law) $867.40, making a total paid in by the persons named of $33,450.20. As stated, there was paid out $41,850, demonstrating almost to a mathematical certainty that defendant paid in over $8,000 — -that he paid in the same amount as did his brothers and was entitled to the same amount of stock as they received. The company then needed no more money, the Merchant Company was to the expense of platting and selling the property, and soon commenced to pay money into the St. Cosme Company. Defendant’s claim that he then advanced something over $4,000 to buy bonds to put into the treasury of the company is not convincing. This portion of the decree will be affirmed.
2. Wabunga Land Company. Near the St. Cosme piece of land was approximately 100 acres of land owned by Mrs. Eberts. The Merchant Company had an option to purchase it at $1,000 per acre, on which it had paid $8,500; there was $11,500 due the next day. The Merchant Company, as we shall presently see, was hard pressed, and could not raise the money. Its officers approached defendant to finance a company to take over the Eberts farm, and agreed to repurchase it at $1,350 per acre, and agreed that $5,000 of the amount already paid Mrs. Eberts might be applied on such agreement. Defendant hurriedly organized the Wabunga Land Company. John L. Liggett put in $5,000, and defendant borrowed $10,000 from a trust company, and this, with the Merchant Company’s $5,000, swung the deal. Defendant wrote to his brother Gus, then in California, a letter which admittedly falsely stated the purchase price, terms, and amount he had borrowed and advanced. Gus took $5,000 of this deal, Will took $5,000, and there was issued to Liggett, Gus, and Will 50 shares each, and to defendant 100 shares; he afterwards sold his nephew 10 of these shares. Again the mathematics of the case may be invoked. They demonstrate that, although the defendant borrowed the money to finance the deal, none of his money remained in the company. There was needed to swing the deal $20,000. The Merchant Company furnished $5,000, Gus $5,000, Will $5,000, and Liggett $5,000. Indeed, defendant on cross-examination testified:
“Q. I am referring to your brother Gus. He gave you his note?
“A. Not that I recall.
“Q. You are sure of that, aren’t you?
“A. Well, I would not be —
‘ ‘ Q. All right. At any rate he paid you some day $5,000?
“A. Yes, sir.
“Q. And your brother Will paid you $5,000?
“A. Yes, sir.
“Q. And Liggett paid you $5,000?
“A. Yes, sir.
“Q. And Merchant was allowed $5,000?
“A. He was allowed $5,000 on the contract.
“Q. You sold ten shares to your nephew for $1,000?
“A. Yes, sir.
“Q. So when it was all over you had 89 shares, or 90, counting the one of Mr. Swan’s, and a thousand dollars, and you had not put in one red sou, had you?
“A. I had put in all the money that was required.
“Q. That was all paid back to you, wasn’t it?
“A. Certainly it was all paid back.
“Q. So far as any money of your own was concerned, for that 89 shares and the thousand dollars from your nephew yon haven’t paid one red penny?
“A. Ultimately it cost me nothing.”
Later, however, he came in with explanations of more or less plausibility. The finances of this company were in splendid shape. The trial judge was persuaded that they indicated some payment by defendant, and allowed him to retain 40 shares in this company. But this company, as well as the other company, were successful from the start. The Merchant Company before its failure sold many lots and turned over much cash to both companies. We are unable to find in this record evidence which satisfies us that defendant paid a cent into this company. The decree in this regard must be reversed.
3. General Commission Account. This may be a misnomer of what is really involved under this branch of the case. In the main, it involves discounts made to purchasers in different ways, the amount being $19,772.79. It is made up of a myriad of small items. As we have noted, the Merchant Company started off very successfully in the sale of lots in the various subdivisions owned by the St. Cosme Company as well as in its own subdivisions, the title to which rested in the Wábunga Company. But it did not last long. Bankruptcy proceedings put an end to its activity. Many purchasers of lots who had made purchases of the Merchant Company flocked to the office of the two plaintiff companies, then in charge of defendant. He conceived, as he claims, that it would be good business as these companies had, by reason of the Merchant failure, these subdivisions on their hands, to make new contracts with these purchasers, allowing them credits for payments already made to the Merchant Company; that the amount allowed would he less than they would have to pay new salesmen as commissions to go out and sell the lots to new customers, and that this was done in many, many instances. He also claims that it was customary to give a purchaser a discount if. he paid up his contract before it was due by its • terms. A large number of witnesses, purchasers in these subdivisions, corroborated these claims. We think the testimony clearly establishes a custom and sustained defendant’s claims,' although all of the hundreds of purchasers were not called, and that the trial judge was right in declining to charge defendant with this amount.
4. Deferred Commissions. In the contract between the St. Cosme Company and the Merchant Company,.the agreed commission was 25 per cent., and it was payable out of the payments on the contracts as they came in by taking and retaining one-half of such payments until the commission had been paid in full. There had been a large number of lots recently sold before the adjudication in bankruptcy, and a large sum had been earned as commissions, but which would not be due or payable for some time. It was a valid claim against the St. Cosme Company, but not then due. The trustee in bankruptcy desired to get in all the money he could, and approached defendant. The purchase of this account at a fair figure would be advantageous to the St. Cosme Company, as that company eventually would have to pay it if the contracts were not defaulted. Defendant tallied with his brothers about it, but told them that court officers and attorneys would have to be bribed to secure an advantageous purchase of the account. Under such circumstances,' they declined to have anything to do with it. It amounted to many thousands of dollars, and he paid $4,000' for it and took it over personally. He does not claim that he had to bribe anyone, and, in fact, denies he so stated to his brothers. Defendant was then in charge of the affairs of the St. Cosme Company. It is too well settled to need citation of authorities that his duty to that company and its stockholders required him to adjust this claim on terms advantageous to his company. Had he submitted to his brothers, who are also directors in the company, a proposition to honestly purchase or settle this account, and they had declined, another question would have been presented. It fairly well appears that the company had sufficient money on hand, but, if not, it had ample credit. When he told his brothers that bribery had to be resorted to in order to acquire the account at a fair figure, they properly declined to have anything to do with it. He then purchased it for many thousand dollars below its face. Under these circumstances, in equity he purchased it for the company, and the trial judge correctly so held.
Modified as pointed out in (2) of this opinion, the decree will be affirmed. Plaintiffs will have costs of this court.
North, C. J., and Fead, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred. | [
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Fellows, J.
Officers searched defendant and found a 45 caliber Smith & Wesson revolver concealed upon his person. He was prosecuted for violating section 5, Act No. 372, Pub. Acts 1927. We . here review by certiorari an order made by the recorder’s court of Detroit denying his motion to suppress the evidence (the revolver). We shall not discuss the propriety of the remedy or whether defendant is in position to seek the aid of this court in the premises, as we are clearly of opinion that the ruling must upon this record be affirmed.
On certiorari we only review questions of law. If there is testimony in' the record sustaining the ruling, and it is correct as matter of law, the order should be affirmed. The rule is pretty well settled that if an officer believes, and has good reason to believe, that one has committed a felony, or is committing a felony in his presence, he has probable cause, as the term is used, and may arrest without a warrant and search him before confining him in jail. The grounds on which such relief is based must, of course, appear. If the testimony establishes prima facie that the officers in the instant case had such probable. cause, then the revolver taken from his person should not be excluded from the. case. The officers had been looking for defendant to question him; they found him and another sitting in a parked automobile about 1:30 o ’clock in the afternoon; one of the officers testified on direct examination:
“A. We drove up and we had been looking for him for some time to question him about a hi-jack, and as we drove up alongside of his car, he started squirming around as if going for something from his pocket and we think that he was reaching for a, gun and we jumped out of the car and walked over to the side, and he continued reaching for the back, and I threw my gun and covered him and told him not to draw it, and took him out of the car and placed him under arrest and searched him and took that gun out of the back of his trousers. He stuck it down in the back of his trousers.
“Q. That is, this revolver pistol marked ‘S. & W., D. A. 45’?
“A. Yes, sir.”
On cross-examination, this officer testified:
“Q. You had no reason to believe that he was violating any law, Mr.'DeLisle?
“A. I had reason to believe that he had a gun; yes, sir.”
This testimony not only sustains the ruling, but also signifies that the officer would have been foolhardy had he pursued any other course than the one taken.
The order will be affirmed.
Fead, C. J., and North, Wiest, Clark, McDonald, Potter, and Sharpe, JJ., concurred. | [
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Sherwood, J.
Union-street, in the city of Hillsdale, runs north and south, and has been used over forty years being one of the principal streets of the city. The defendant’s railway track, in passing through the city, crosses this street nearly at right angles, running east and west. The crossing is alleged to be a dangerous one, by reason of the near approach of buildings to the track on each side of the street. On the east side of the street and on the south side of the track, standing partly on defendant’s right of way and within eight feet of the track and running parallel with it, was a wood-shed, five or six rods in length. There was a side track south of the main track, extending from the depot west to Union street and about thirty rods beyond, upon which there were standing at the time of the accident complained of five box cars, and still east of these cars and shed were the coal-sheds of the company. Several buildings also stood on the east side of Union street and south of the wood-sheds of the company; and between Main street and the depot, a distance of about forty or fifty rods, were several lumber-yards, ■closely approaching the track, and more or less obstructing the view of the approach of passing trains coming from the east. Union street, also, from about thirty feet south of the track, was about three feet lower than the railway track, which ran westward through the city on a down grade to the depot.
This was the situation of'the crossing and its surroundings on the 31st day of October, 1879, when Isaac Manheimer, accompanied by his son, a lad about ten years old, attempted with a mule and a democrat wagon to.make the crossing from the south on Union street, and while on the track was struck by one of the defendant’s passenger trains coming from the east, and instantly killed. The plaintiff is administrator of Manheimer’s estate, and as such brings this suit under the statute to recover damages for the alleged negligent killing of the deceased. The cause was tried by jury before Judge Pealer at the Hillsdale circuit, and after hearing the proofs he directed a verdict for the defendant, on the ground that Manheimer was negligent in not observing proper caution in approaching the crossing and track of defendant.
The return to the writ furnishes us with all the evidence and proceedings in the case for review.' The direction of the court to the jury raises the important question in the case. If he was right, the other questions presented may well be passed until circumstances shall arise making their consideration necessary.
In determining the question presented by the ruling of the court, it is only important to examine the testimony on the part of the plaintiff, and that which tends to prove his case. There is no question but that the proof shows Manheimer was instantly killed by the defendant’s engine at the time and place mentioned in the plaintiff’s declai’ation. Neither is it pretended that the deceased had not the right to cross the track of defendant with the mule and wagon where he made the attempt so to do.
The plaintiff claims four grounds of negligence on the part of the company to prove his case, and that lie- gave testimony on the trial tending to establish them all. First, the defendant left its cars standing upon the side track in such manner as to obstruct the view of an approaching train froin the east by a traveler upon the highway, and provided no watchman or other means of warning persons of such additional danger. Second, that the train causing the injury to deceased was not running on time when the injury occurred, and came into the city upon the crossing at an extraordinary and dangerous rate of speed, running twenty-five or thirty miles an hour. ' Third, that no whistle was sounded or bell rung as required by statute, or other warning of the approach of the train. Fourth, that the crossing was a dangerous one, and that defendant should have furnished the same with a flagman to warn persons of the danger, and of the approach of passing trains.
The testimony shows, I think, very clearly that the near proximity of the freight cars to the highway greatly obstructed the view of approaching trains from the east, and thereby very much increased the danger in approaching the track upon the highway from the south. While this was the right of the defendant, it must be conceded, I think, that it imposed additional responsibility upon the defendant in adopting means of protection against accidents and danger-The plaintiff’s testimony, however, shows no such means were taken, and the usual and ordinary warnings were omitted , at least it strongly tends to show that such was the fact.
The plaintiff’s testimony upon the second ground tends to show that the train passed through the city, and over the Union street crossing, at the rate of twenty-five to forty miles an hour, and one of defendant’s witnesses, an engineer and employee of the company, testified that the crossing was a dangerous one, and that the engineer would not exercise ordinary care and prudence in running the train over that crossing at a rate of more than fifteen miles an hour.
Upon the third ground the plaintiff’s witnesses, to the number of ten, all testified that they were in hearing distance of the bell and whistle upon the engine as it passed over the track through the city, and in its approach to Union street crossing, they did not hear any whistle blown or bell rung. Some of them were very near the train, and all think they would have heard these signals if they had been given; and one, at least, who was standing near by and watching the train and looking right at it as it came in and made the crossing swears positively that neither signal was given. Among those who testify upon this subject was the son of the deceased, who says, as he approached the track,
“ I looked both ways and did not hear any train or hear any whistle or hear any bell rung.”
Question. “ Your father did the same ?”
Answer. “ Yes, sir; he was looking, and he did not see anything until it struck us.”
Upon the fourth point the testimony shows, and tends to show, that Hillsdale is, or was at the time the accident occurred, a city of about 4000 inhabitants; that Union street, where the track of the defendant crossed it, was one of the main traveled thoroughfares of the city, for teams, carriages and pedestrians; that the track, as it approaches the street crossing from the east, for more than a hundred rods comes in on a curve, the train running on the outer side thereof ; that in passing north towards the track on the highway nothing of the train is observable coming from the east, except the smoke stack of the engine, for a long distance, and not even that when getting near the track, if cars are upon the siding, until the traveler reaches the crossing; that in -order to prevent accident and injury it is necessary, at least when cars are standing upon the siding near the street, that •a flagman, or something more than the ordinary means, should be used to advise travelers of the near approach of the ■defendant’s trains, and especially was such the case in this instance, when no train was due from either direction, and the one that did the injury was more than two hours behind time.
Such was the testimony and tendency of the testimony in this case, in behalf of the plaintiff when the evidence was ■closed.
In many instances this testimony was controverted on the part of the defendant, and very much of it was not seriously contested ; but tbe question presented is, does it not, standing alone and taken as true, show, or tend strongly to show, that the defendant was negligent in passing the crossing and coining round the curve with its train off of time at the rate of speed that it did, and without giving any of the signals or warnings whatever, required by statute, or otherwise? I think it does; and if that is the correct conclusion, then I apprehend there can be no question but that the cáse should have been submitted to the jury.
From the testimony above stated it appears that the plaintiff had good reason to believe that- no train was approaching, and that he could make the crossing in safety. Certain it was that had the train been slowed down ten seconds he would have passed the fatal spot in safety ; and it is almost ■conclusively to be presumed from the facts stated that had the whistle been sounded or the bell rung for the crossing, the deceased would have heard it, and delayed crossing until he could have done it without injury. The negligence of the defendant, -which could not have reasonably been anticipated, should not be allowed to impose a degree of care and diligence upon the deceased unknown to the law and which would not have been required if ordinary attention and prudence had been exercised by defendant.
It must be borne in mind in this discussion that we are not permitted to consider the defendant’s testimony, but plaintiff’s only, and must give to it the most favorable construction possible for the plaintiff. We are not to look for preponderance of evidence, but whether the plaintiff has any evidence for the defendant’s to preponderate over ; if he has, then the jury should have been permitted to take the case.
But, aside from all these considerations, under the circumstances of the case as they are presented in this record, I am not prepared to accede to the views of the learned judge who summarily disposed of the facts at the conclusion of the trial, that “ there is no evidence in the case that Manheimer exercised his sense of hearing, and the evidence that he exercised his sense of seeing is very slight.” The son testifies that he and his father both, as they approached, looked both ways, but they saw nothing of the train. Mr. Perry, another witness, says he saw the deceased, as he • approached the track, look towards the depot more than once. This is positive testimony. The son says he looked and listened for the train, and that his father did the same. Of course he could only speak of the father’s listening from such manifestations as his father gave of that fact, and certainly, sitting right beside him in the wagon, he was in a situation to observe these. The law does not require positive testimony to prove this fact; if it did, it could never have been proved in this case, for the reason the person who alone had positive knowledge upon the subject was instantly killed by the defendant’s train. The law is not so harsh or inconsistent as to require any such injustice, and this Court, in the Miller Case, never intended to intimate any such doctrine. The testimony of the deceased’s son is as positive as any testimony well could be in the case upon the subject, and I can see no good reason why it should be set aside or taken from the consideration' of the jury. Taking the testimony introduced on the part of the plaintiff as true, it is difficult to see why it does not show, under the decisions of this Court, and many others, that the deceased was free from any contributory negligence on his part in approaching the crossing. If the plaintiff’s testimony is to be credited, the deceased approached the track at a time when no trains are shown to have been due, over a smooth road, in a single wagon, the mule traveling upon a slow walk. He listened for the cars when nearing the track, and looked both ways for the train, and not seeing, hearing or expecting any train, -he drove along upon the crossing, and, after passing over the side track, upon which the empty cars were standing, and upon the main track, the train came rushing along on a down grade upon him, with steam off, at the rate of twenty-five to forty miles an hour. The testimony certainly tends to show, and I think strongly, that the deceased exercised the use of his sight and hearing, and ordinary care at least, and especially as no train was then due by the schedule time of the company: The evidence is quite clear that he directed his attention more to the west than to the east, that being the direction of the depot; it would be quite natural to expect an engine from that direction rather than from the other.
After a careful examination of the whole case, and a review of the arguments of counsel of the respective parties, I feel very confident that the facts should have been submitted to the jury, and I think a new trial Should be granted.
Campbell, J.
I think that there was enough testimony to render the case a proper one to go to the jury.
Cooley, C. J. concurred. | [
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Campbell, J.
This was a proceeding to-recover possession-of premises held over after the alleged termination of a term.
The lease was made by plaintiff to defendant’s assignor, June 1, 1875, to run until January 1, 18S0. It was provided-that if plaintiff should not, six months before the latter period, give notice of his desire to terminate the lease,, it should be-extended for another period of five years, upon an appraisal and certain named conditions. This notice was not given, and the lease, therefore, ran without controversy until January 1, 1885. Provision was then made for similar extensions in the same way.
Notice was given by plaintiff to terminate the lease more-than six months before January 1, 1885. The only question-on the record is whether defendant was- bound to give up-possession at the end of the second term-,, in the beginning of January, 1885, or whether he could retain it until the appraisal proceedings were completed, which- were to-be had after this period ended.
The clause in the lease under which the doubt arises-is as-’follows:
“ If said party of the first part shall so give six months’' notice of his desire to terminate this lease, at the expiration of any term of years, then either party may give to the other, after such term has elapsed, a like notice, that he or they have selected a disinterested person to act for him, to appraise and value at cash price any building or buildings the parties of the second part shall hereafter erect on and remaining on said premises; and the other party shall, within thirty days, appoint a like disinterested person to act for him in making said valuation. And the party first giving such notice may appoint the second person, if the other neglect for thirty days so to appoint, and the two so appointed may agree on such valuation, or they may select a third disinterested person, and then the valuation that any two shall agree upon and fix in writing shall be the cash valuation of said buildings and improvements. And the said party of the first part hereby agrees to pay such cash valuation, on surrender and delivery to him of said premises and buildings, as they were appraised, within thirty days after such appraisal and surrender, and until so paid the amount of said valuation shall be" a lien and incumbrance on said premises, and may be enforced the same as a mortgage therefor thereon ; but any rent,. taxes and assessments shall be first deducted and allowed in such valuation.”
There is some obscurity in this language, but, when construed in connection with the entire lease, it is not difficult to ascertain the legal meaning. The term granted is, in the first place, until January 1, 1880, and the extension until five years thereafter. These periods being definite and fixed, no repugnance should be held to exist so as to change them, unless clearly required. And no reason seems to exist for any. If the defendant were assured a possession until the amount • appraised should be paid, so that his possession should be a security to him, there wrould be force in urging that construction. But there is no doubt at all, under his own claim, that he is bound to surrender possession before payment. This being so, there is no more reason for his retention during the •period of appraisal than at any other time.
Defendant’s counsel cited one case, and only one, in which this distinct question was decided apparently in his favor. That case is Van Rensselaer's Heirs v. Penniman 6 Wend. 569. The other eases cited do not come strictly in point. In that case there was no definite period of time named in the lease. It ran for three lives named, absolutely, at a given rent, but it did not provide for surrender at their termination. But it provided that if, after the termination of those lives, the heirs or other owners, “ should choose to remove or dispossess ” the lessees, they should pay an appraised price for the improvements, and on payment of this value the lessees should give up possession. Under this lease this option was not required to be exercised at any particular time at or after the three lives ended, and the purpose was to create thereafter a tenancy at will, to terminate on payment of the value of improvements, no other time being named at all. The court held, as we think correctly, that the right of possession terminated with payment, and not before. But in Tallman v. Coffin 4 N. Y. 134, under a lease like this for a definite period, it was held that the term ended and the right of possession accrued to the landlord at the day specified, although in that case the agreement was to surrender on payment, while here the agreement is express that payment is not to be made until thirty days after surrender.
The lease gives perfect security to the lessee, because he has a lien on land and improvements both, for the value of improvements, which is to be enforced by foreclosure. He can lose nothing by the surrender, and he cannot claim to be paid until he surrenders, and until the thirty days thereafter shall be expiring. The court below was right in so holding, and the judgment must be
Affirmed.
The other Justices concurred, | [
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Sherwood, J.
The bill in this case was filed to procure a discharge of a mortgage upon the homestead of complainants, and to recover the statutory penalty of the defendant for his refusal to discharge the same. The complainants requested the defendant to make the discharge, and after waiting more than seven days, and the defendant failing to comply, they brought this suit, as the statute permitted them to do. The case was heard on pleadings and proofs, and the circuit judge in his decree found that the complainants had paid the mortgage, and directed the defendant to discharge the same, and pay the costs of the suit, but did not require him to pay the penalty given by the statute. (How. Stat. § 5704.) . From this decree the defendant took his appeal to this Court.
The mortgage purports to have been given for the sum of $300, to seteure a note of equal amount, bearing the same date, given by the complainant T. H. Parkes, payable in six months after date with interest, and dated December 6,1873. When the mortgage was given, the complainant T. H. Parkes was engaged in the retail grocery trade, and the defendant in the same business at wholesale. About two months' thereafter, complainant T. H. Parkes took in a partner by the name of Belden, and thereafter did business with his partner under the firm name of Parkes & Belden. At the time the mortgage was given, Parkes claims he only owed the defend ant a few cents over $50, and the defendant claims he owed him about $98; and defendant further claims that the mortgage was not only given to secure this amount, but for a continuous credit for groceries, and that when the account was closed, a large portion of which was with the complainants’ firm, there was quite a large sum owing him, and, including the firm account, was considerably more than the sum stated in the mortgage. It seems, however, to be conceded that if the firm indebtedness cannot be held secured by the mortgage, then the mortgage was fully paid long before the request was made of defendant to discharge the same.
The only agreement claimed, that the mortgage was intended to secure indebtedness for goods which might be incurred after the making of the mortgage, rested in parol, and without now determining how far such an agreement may be shown by parol, if at all, it is quite clear it could not be made to extend to the partnership indebtedness without a written agreement to that effect, and none is claimed to have been made in this case. We have, however, failed to discover any intentional wrong in the defendant’s refusal to discharge the mortgage; but it rather appears that he was in good faith relying upon his assumed legal right to withhold the discharge until the balance of the firm indebtedness was paid, and have no doubt that such was the interpretation of defendant’s conduct in the premises given by the circuit judge in withholding the penalty.
Upon the pleadings and the proofs in this record, we think .the decree at the circuit was correct and should be
Affirmed with costs.
The other Justices concurred. | [
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Sherwood, J.
The plaintiff brought trover for the valué of a horse. The cause originated in justice’s court where the plaintiff had judgment. An appeal was taken to the circuit court, where the cause was tried before Judge Pealer without a jury, who, after hearing the testimony and arguments of counsel, found the following facts, viz.:
“ The court finds that in June, 1880, one Warner applied to Hansom & Berry, of Quincy, in this county, for a loan of $25 for a short time, to pay for some materials he wished to use in his business, and proposed to give a'chattel mortgage to secure the payment. After considering the application, Hansom & Berry declined to take a chattel mortgage on the property, for the reason that Warner lived so far away, and it would be necessary to file the mortgage and look after it in the township where Warner lived. Hansom & Berry then proposed to buy Warner’s horse, harness and buggy for $25,. and allow him to use it in his business, and to repurchase this property at any time within thirty days for $27. This proposition was finally accepted, with some additions. The man Warner was given permission to retain the possession of the horse for about seven months, except that he was stabled the first night in the barn of Ransom & Berry. Warner-used the horse and buggy in his business and traveled around through the county, and finally stayed near Bronson, some twelve or fifteen miles ijrom Quincy, for several months. The horse was worth about $40, the harness 75 cents and the buggy about $20. Warner did not attempt to repurchase, but treated the matter as a loan. He sent five dollars to Ransom & Berry at two different times, and they received', the $10. Some direction was also given about an order for $3. There was no direction given as to the application of the money, but there was no other deal between the parties. Ransom & Berry suffered Warner to keep and use the property seven months without asserting the right to possession^
In the mean time, in October, 1880, Warner executed and delivered to Wallace Monroe, the appellant, a chattel' mortgage on the horse, at Bronson, for a valuable consideration, and while he was possessed of the property. Monroe* was an innocent mortgagee. Ransom & Berry, in December following, took possession of the horse under their claim of purchase. Monroe afterwards demanded the horse by virtue of his chattel mortgage, and the possession was delivered to-him. Afterwards Ransom & Berry assigned their claim to-plaintiff and he brought this action. Then Monroe caused a tender to be made to Ransom & Berry bf the balance due-on their claim, after deducting the money sent to them. They declined to receive it, and it was paid into the justice’s-court. I find further that while the parties tenped the transaction a sale, the said Ransom & Berry did not become vested with the title to the property at the time, and that a repayment of the $27 would have been regarded as satisfying the-arrangement. I find, as matter of law, that the transaction, taken as a whole, amounted only to an arrangement for the .purpose of securing a loan, and the plaintiff cannot recover.”
Judgment at the circuit was entered accordingly.
The plaintiff brings error, and alleges, as the only ground for complaint, that the finding of facts does not support the judgment, and that the plaintiff should have been permitted to recover. ' The record contains none of the evidence taken upon the trial, and it will therefore be presumed that the testimony fully supported the findings. We think the findings sufficient to support the judgment entered by the circuit judge, and the judgment must be affirmed.
Campbell and Champlin, JJ. concurred. Cooley, O. J. •did not sit. | [
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Cooley, C. J.
This action is brought to recover the value of tliirty-two tons of the article called “Excelsior,” which had been received by the defendant of the plaintiff.
The defendant is a corporation, organized, as its articles of association state, “to purchase material for, and manufacture and sell carriages, and carriage and harness hardware; also for the disposing of the right to manufacture on royalty the spiral buggy-spring, Smijth’s patent.” In the manufacture of carriages excelsior is used for upholstering seats and backs, but for no other purpose. The place of business of defendant is Grand Rapids, Michigan.
It was shown on the trial that in April, 1883, defendant contracted with one Hulz, of Chicago, to sell and deliver to him in Chicago one hundred and seventy-four tons of excelsior, the delivery to be made at the rate of two car-loads a month, and the price to be fourteen dollars a ton. Eor the purposes of this contract defendant then bargained with the plaintiff that she should manufacture the requisite quantity of excelsior and deliver it on board cars or boat at Grand Rapids, billed to Hulz at Chicago. The price to be paid by defendant was eleven dollars and fifty cents a ton, which, after paying cost of transportation, would leave to defendant a profit on the sale to Hulz. It was known to plaintiff, when she contracted for the manufacture, that the defendant was not procuring the article for use in its business, but for the purpose of a sale at a profit in Chicago, where the defendant had no place of business, and the delivery to be made by her was to be made from time to time as required by the Hulz contract. The plaintiff was therefore fully aware that the contract of the defendant with her was purely one of speculation, and had no connection with its legitimate corporate business.
The excelsior was delivered by the plaintiff under the contract from time to time until about June 15, 1883, and was shipped to Chicago under defendant’s contract with Hulz. At the time last mentioned the market value of the article had considerably advanced, and plaintiff declined to deliver any more at the price agreed upon. Part payment had been made for the quantity received, and defendant refused to pay further unless plaintiff should go on in completion of her contract. This suit was accordingly instituted.
The claim of the plaintiff is that the contract she entered into with the defendant was void in law ; that therefore she was at no time under obligation to perform it; that, in so far as the defendant has received excelsior from her, she is entitled to recover the value, not exceeding the price agreed upon ; and having shown that the value was equal to that price, she now claims to recover it in this suit. The defendant, on the other hand, insists that the plaintiff is estopped by the contract from disputing the capacity of the defendant to enter into it; and that when she refuses to perform, she becomes liable in damages. These damages the defendant seeks to recover from the claim of the plaintiff.
The circuit judge was of opinion that the contract made by the defendant with Hulz, not being for a corporate- purpose, was ultra vires and void, and the contract made with the plaintiff for the purpose of meeting its requirements was void also. For the excelsior actually received by the defendant the plaintiff was held entitled to recover, as if the void contract had not been entered into ; but a claim to recoupment must necessarily assume the validity of the contract, and was therefore inadmissible. The judge, therefore, gave judgment for the plaintiff for the value of what had been received, deducting such payments as had been made. The defendant brings error.
It is scarcely denied in this Court that the contract of the defendant on which it now relies was ultra vires. Its corporate purposes were specified in its articles, and it was without legal power to go beyond them. The contract was one of speculative dealing, and was as much foreign to the purposes of corporate organization as would have been a contract for dealing in grain on the produce exchange, or in shares in the stock market. The State had not by law consented that its manufacturing corporations should be at liberty to make such contracts, but for reasons of sound public policy had withheld from them the power to do so. Neither had the corporators of the defendant consented that their interests might be put in jeopardy by such dealings.
But defendant relies here, as it did in the court below, upon the plaintiff’s being estopped by her contract from raising the question of ultra vires. She has certainly admitted the power of the defendant to make the contract, and if the elements of an estoppel are to be found in this mere admission, or in this admission coupled with such action as has taken place under it, then the defendant should be entitled to recoupment.
There, are some decisions which give plausibility to the position of the defendant, but we know of none that is adequate to the exigencies of this case. Parties entering into contracts with an association of persons, who are de facto exercising corporate powers, are not suffered to dispute the corporate authority which their contracts admit: Swartwout v. Mich. Air-line R. Co. 24 Mich. 389; Wilcox v. Toledo &c. R. Co. 43 Mich. 584; but this is on the principle that a usurpation of corporate authority concerns only the State, and it is supposed the State will move on its own behalf to have the usurpation punished or restrained when it is found to exist, if the occasion seems to call for it. The case before us is not one of that description. The defendant’s possession of corporate powers is conceded, and though the particular act was done without authority, the State was not the only party interested in questioning it. Every stockholder was entitled in his own interest to insist on its being repudiated, for he had not consented to put his share of the capital at the risk of any such venture. There are some cases, also, in which parties by false representations have induced others to act upon invalid contracts as if they were valid, and to make payments, deliver property, or otherwise change their positions in reliance upon the contracts, under such circumstances that nothing but. the enforcement of the contracts will do complete justice": and in such cases the doctrine of estoppel may well be applied. But this is not such a case. No false representations are alleged, and it is not disputed that all parties were fully aware of all the facts. They must therefore be supposed to have' understood that the contract in its inception was ultra vires. And the power on the part of such a corporation to enter into contracts of speculation, being withheld on reasons of public policy, for the protection of shareholders and the general good of the community, the act neither of one party nor of both in entering into it can work an estoppel against setting up the invalidity. AW rule of law established for the public good cannot be thus ] defeated. A corporation cannot, by the mere act of individuals, be given a power which the state for general reasons has withheld from it. Pennsylvania &c. Nav. Co. v. Dandridge 8 Gill & J. 218, 319.
Parties may also be estopped, in some cases, from disputing the validity of a corporate contract when it has been fully performed on one side, and when nothing short of enforcement will do justice. To quote the language of Corn-stock, C. J., in Parish v. Wheeler 22 N. Y. 191, 508: “ the executed dealings of corporations must be allowed to stand for and against both the parties, when the plainest rules of good faith so require.” But this is not such a case. The contract has only been performed in part. The defendant has received a portion of the property bargained for, and we may justly assume that what has been received has passed into the hands of Hulz and been paid for, so that the defendant will lose nothing but the anticipated profits on the remainder if the contract is not enforced in its favor. Those profits it\ had no right at any time to count upon; and, in contemplation of law, there can be no injustice in depriving it of/ profits which the law would not permit it to bargain for. No valid ground for estoppel is therefore found to exist in the case.
The defendant, then, if the plaintiff has established a valid : ■demand, is not entitled to recoup damages for refusal to make j, -complete performance, because to allow recoupment would ji ■be indirectly to enforce the contract.
Whether the plaintiff is entitled to recover for the goods ■delivered and not paid for is the remaining question. The -defendant has had the goods, and there is no want of equity in requiring it to make payment. They were delivered under a contract which bound neither party, and though the plaintiff is the party who now refuses to go on with it, the defendant was at liberty to do the same, and we cannot know that it would not have done so if the change in market value had been such as to make it for its interest. But, however that' may be, if the defendant pays for the property received, the parties will have justice meted out to them as nearly as is-now possible.
It is to be observed that the contract, though void in law,, involved no element of criminality, and nothing of an immoral nature. The case is not, therefore, one in which the law will leave the parties without redress for the consequences of criminal or immoral action. The plaintiff had a righfc to sell her manufacture, and to be paid for it; the defendant has received something of value from her, and there is manifest equity in its being required to make payment, notwithstanding it exceeded its powers in the purchase.
The cases of Pratt v. Short 79 N. Y. 437; Northwestern Union Packet Co. v. Shaw 37 Wis. 655; Harriman vi. Baptist Church 63 Ga. 186, are in point, and fully sustain the judgment. The principle involved is considered at length in Whitney Arms Co. v. Barlow 63 N. Y. 62, and is supported by Thomas v. Railroad Co. 101 U. S. 71; In re Cork & Y. Ry. Co. L. R. 4 Ch. App. 748; In re National &c. Society L. R. 5 Ch. App. 309; and many other cases. No doubt it results in a degree of hardship in some cases, when, a party fails to obtain all that has been bargained for; but the loss of anticipated advantages, as an incident to unauthorized dealings, is one for which the parties themselves are-responsible, not the law.
The judgment must be affirmed.
The other Justices concurred. | [
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Per Curiam.
The Court is of opinion that the decree in this case could not properly be thus set aside on mere motion.
The writ will therefore issue, but without prejudice to any right the parties, or any of them, may have had at the time the action complained of was taken, to take proceedings in the regular way. | [
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Campbell, J.
This was a bill filed in the circuit court for the county of Wayne, to set aside attachment proceedings levied on the lands of the debtor, which were covered ' by the assignment.
Joseph Kuhn, on the 4th of February, 1884, made a general ¡ assignment to complainant, who accepted the trust, and! entered on its duties in proper time. The attachment of de-; fendant was levied within ten days after the assignment, ■contrary to the terms of section 8739, Howell’s Compilation, which declares that such levy shall not be valid.
Defendant relies on some objections against the assignment itself, which require notice in the outset. It is claimed that the instrument purports to refer to the law of 1883 (p. 217), which has been held void by this Court, and is therefore null. It is sufficient to say that it is completely in harmony with the only existing law on that subject, which is chapter 303 of Howell; and that it has not been repudiated or set aside by the assignor, who was bound to know the law, and who is not shown to be dissatisfied.
It is also claimed that the attachment must prevail because made before the assignment was recorded. The statute, however, makes all such attachments void as against the ■assignment, without 'any reference to the record, and there is no law of this State to the contrary.
It is also objected that a bill to quiet title will not lie under the statute without actual possession in the complainant, which is negatived as to a part of the land levied on. And it is further objected that several parcels of the land described in the bill are shown to have been sold during the pendency of this suit, and that as to those, the suit has abated.
Both of those objections would have force if the suit was a statutory one for the purpose of quieting title. But such is not its nature. The statute which forbids attachment levies, points out no way whereby the assignee can move in the attachment suit to dissolve the attachment; and, in the absence of such provision, a third party cannot intervene in •a common-law action. Neither could the assignee avail himself of the special proceeding to dissolve attachments before circuit court commissioners or judges at chambers, under § 8026 of Howell’s Compilation. The right to make such application is confined to a defendant; and he must be entitled to a return of the property. It is further confined to ■cases where the plaintiff has no sufficient cause for suing out ithe writ. In the present case, the defendant could probably have shown such cause.
There being no right of intervention in the law proceedings, it would be singular if the assignee had no remedy to ■avoid an attachment which he has a right to regard as void, and which, unless set aside, must greatly impair the value of ■the assigned property in the market.
Where there is a serious legal wrong, with no adequate legal remedy, a court of equity would seem to be the natural resort, if the grievance is so serious as to work great mis- ■ chief. But we are not left to inference in this matter. By section 8749 it is provided that “ The circuit court in ■chancery of the proper county shall have supervisory power of all matters, questions and disputes arising under such assignment, except as otherwise provided in this act, and may,, on the application of the assignee or any person interested,, make all necessary and proper orders for the management and disposition of the assigned property, the distribution of the assets and avails, the recovery of all property claimed by third persons, and may from time to time require new bonds- or sureties, who shall justify as herein provided.”
We think the jurisdiction exists to remove attachments on land, and there seems to be no other adequate remedy to avoid them. Personal property may not require the same help, because there are possessory remedies at common law. And. it can make no difference whether the lands are occupied or not. The attachment is attacked as a whole, and the remedy is sought to avoid it altogether, and not merely as to partieur lar tracts of land.
The decree below is substantially correct, although ifr would be better to confine it to a dissolution of the attachment itself; and it may be so modified if desired. But we are not disposed to decree costs against the defendant.. The frame of the bill might fairly lead him to believe that it was based on the ordinary rules applying, as between individuals, as to the grounds of jurisdiction, and on those he w ould have prevailed as to a part, at least, of the property. The other law questions are also novel, and he had strong moral grounds for seeking any available remedy or defense within his reach. While we do not give him costs, we think it quite proper to leave each party to pay his own costs in both courts. The assignee can have his costs ultimately out of the fund, and will not be damnified
The decree will be modified accordingly.
The other Justices concurred. | [
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Cooley, O. J.
Plaintiff sued to recover commissions in selling furniture for defendant. He claimed, by his bill of particulars, commissions on two specified sales. The defendant, with his plea of the general issue, gave notice of recoupment without any particulars.
The suit was begun in justice’s court, appealed to and tried in the circuit court. On the trial the defendant sought to recoup damages alleged to have been sustained by him in the case of other sales than the two in question, but made under the same employment. The court held recoupment under the notice, must be restricted to the two sales. This ruling is complained of, but we think it correct. If the defendant intended to go into other transactions, heshouldhave made his notice specific.
Other errors are complained of, but we think if the defendant is wronged in the case, it is by the action of the jury, not of the court.
The judgment must be affirmed.
The other Justices concurred. | [
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Campbell, J.
Plaintiff brought ejectment on a valid foreclosure sale under a mortgage given by defendant, on which she was in default. The only defense made, and which prevailed, was that the mortgage was given to secure a note' signed by defendant, who is a married woman, and that the-note was not for her own benefit, but to secure a liability of a son-in-law. The circuit judge held that, inasmuch as-a married woman cannot become personally bound as a surety, the note was void, and the mortgage was, for the same reason, void.
We think this was erroneous. There is no restriction under our Constitution and statutes which will prevent a married woman .from creating express liens on her property for any lawful purpose that could be the foundation of such-action on the part of an unmarried woman. A mortgage to' secure another person’s debt is valid beyond question. That was really the purpose of this mortgage. The right to' enforce a note personally is not necessary to make a mortgage securing it' good. The defense of the statute of limitations or bankruptcy may defeat altogether any personal claim, but will not destroy the mortgage lien. Michigan Ins. Co. v. Brown 11 Mich. 265; McKinney v. Miller 19 Mich. 142, Powell v. Smith 30 Mich. 451.
As defendant saw fit to give an express mortgage security upon a lawful consideration, we do not think it is invalidated by the fact that she cannot bo sued on the note. Under the old decisions upon equitable separate estates, such a note would-have bound her separate estate without a mortgage. Under our decisions the lien must be express. But there is no reason for holding that such a note will vitiate a security which refers to it as descriptive of the debt secured. The intention of the mortgage is lawful, and the lien on the property is cleaidy defined. Nothing more is needed to bind the land-
The judgment must be reversed with costs and a new trial granted.
Sherwood and Champlin, JJ., concui’red. | [
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Campbell, J.
The present controversy is upon an application for a mandamus to compel respondent, who is ex officio treasurer of relator, to deposit the school moneys in his hands in the First National Bank of Fort Huron, which made an accepted bid for the custody of such funds, and gave security to receive and hold them subject to the call of relator, as required by law, and to allow four per cent, interest. Respondent refused to transfer the moneys. An application by the bank for a mandamus was refused by us, as not being a proper remedy to enforce the contract. But now the board of education itself asks us to compel its own treasurer to perform a specific duty imposed by law. This we have regarded as competent.
The only objections which respondent raises by his answer are aimed at questions of formal regularity in the action of the board in the steps taken which resulted in the contract with the bank. Respondent also undertakes to figure out that there are no funds which are in condition to be transferred, because the comptroller has not made a formal apportionment and separation of the various taxes received by respondent from the collectors, so as to credit them to their respective funds.
This last objection is frivolous. The school moneys are clearly distinguishable on the tax rolls, and when the treasurer receives them, he need not be at a loss what to do with them. Moreover, the duty which relator asks him to perform is not confined to a specific sum on hand when the application was made, but is a continuous duty which he violates as often as he keeps any money out of the place where it belongs.
So far as the other objections go they have no more foundation. The statutes provide what notices shall bo given and what steps shall be taken to authorize the contract to be made with a bank to receive deposits. All of these conditions appear by the board records to have been brought to the notice of the board, and to have been complied with. Respondent cannot be permitted to go into a collateral inquiry whether the paper, recognized as the city paper and acting as such, had really acquired the right to be so treated by a literal compliance with all of the charter requirements. We have no reason to doubt this, but respondent has no right to dispute it in this way. The same is true in regard to the other formalities. A contract has been made, and it appears to have been regularly made, unless th.e recitals in the records are false. When the board of education, in full view of what the law requires, have acted on their responsibility in a way which seems to be regular, their servants cannot be permitted to refuse obedience and call on the board to prove, as respondent now does, what must be presumed valid without further inquiry. Faith and credit are due to their action as this record recites it.
It is difficult to see what reason respondent has had for refusing to put the school moneys where, under the charter, their deposit exonerates him from a large share of responsibility for their safe custody. He cannot use the money himself without violating his duty, and by keeping it out of the bank he not only deprives the • board of a new security for its safe keeping, but also of interest which it might gain from the deposits. The record gives no excuse for this serious breach of official obligation, and the great delay caused by it is a serious wrong.’
On the argument a new reason is propounded why the writ should not now be granted. It is now claimed that the. contract expired on April 30, during this present term of Oourt. This is not clear to us. The statute does not require the contract to be confined to so short a period, and the bids and securities are not so confined. The only place where the date mentioned appears is in the obligation of the board to leave the money in the bank that long. But the statute and the contract compared, show that by a two-thirds vote the deposits might be recalled at any time, and we do not think that we are required to assume the right of the board to keep up the deposits is ended. If the arrangement is ended, that may be a reason why respondent may hereafter excuse himself from the consequences which might flow from a neglect to obey the mandamus, which we shall award, leaving it for the relator to issue it or not, as the facts may require.
The relator’s application is granted with costs.
The other Justices concurred. | [
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Sherwood, J.
This action is in trespass on the case for an injury which the plaintiff alleges that he received while in the employ of the defendant, by having his hand caught in a machine called a “ jointer.”
The defendant was the owner of, and engaged in operating, a manufacturing establishment in the city of Grand Sapids, known as “Harrison’s Wagon Works,” at the time the injury to plaintiff occurred. The plaintiff was a boy sixteen years old, of moderate intelligence, and, at the time of his employment by the defendant, had never before worked in a factory or shop where machinery was used, and had had no experience in working about it. The defendant hired the plaintiff to carry hubs, boards, etc.', as occasion required, about the work in the factory, and he frequently passed and repassed the jointer in performing his work. At the time he received the injury he was carrying boards to a place near the jointer. The machine was stopped and started by shifting a belt from a loose pulley to a stationary one on the main shaft, by the use of a lever that came up through an opening in the floor, on one side of the machine. The knives of the jointer were operated by means of a belt running from the driving-shaft under the floor to a shaft on the south side of the machine.
The plaintiff’s claim is that he was young and inexperienced, that the machinery was dangerous, and that he was not warned of the dangerous character and condition of the machinery, and was ignorant thereof; that one of the pulleys-used to propel the jointers was defective and out of repair, and by wabbling would drive the belt back upon another pulley, and would thus set the jointer in motion when no person* was present or using it; that the defendant was negligent in suffering the pulley to remain thus out of repair, and the-knives of the jointer to be uncovered or unguarded,; that while he was removing the boards at the time the injury occurred, and laying them down near it, the person in charge stopped its running; that after he laid down the second board and turned around to go for another, the jointer suddenly started in motion by the wabbling of the defective pulley,, and that by means thereof the plaintiff, without any carelessness or negligence on his part, and while in the exercise of due- and proper care, had his hand caught in the knives of the jointer, whereby it was so injured that amputation above the-wrist became necessary. The plaintiff states his case in four counts. The defendant’s plea is the general issue, with notice that the plaintiff’s action is barred by lapse of time. The cause was tried in the Superior Court of Grand Bapids by jury, and after the testimony was taken and counsel had been-heard, Judge Parrish instructed the jury to return a verdict for the defendant, which was accordingly done, and judgment thereon rendered. The case is now before us on error, — the-record containing a bill of exceptions in which all the testimony is set forth.
The vital question in this case is, was the defendant guilty of any negligence which contributed to the defendant’s injury, because, if there was no negligence on the part of the-defendant, it is entirely unnecessary to consider the question of contributory negligence on the part of the plaintiff, and judgment should be affirmed. If there was any evidence-which fairly tended to show the injury occurred through any-negligence on the part of the defendant, it would then have been proper to consider the testimony tending to show contributory negligence on the part of the plaintiff, and the case-should have gone to the jury. The question, whether there-, ■was or was not any evidence in the case tending to show negli gence on the part of defendant, was one of law, and was to be determined by the court from the testimony alone, and not from the claims made by counsel in the case. If there was any doubt in the mind of the court upon the subject, then the case should have been submitted to the jury. It appears the judge of the Superior Court had none, for he says: “ My sense of duty, after a careful examination of the case, compels me to direct you to render a verdict for the defendant.”
I think the testimony plainly shows that the plaintiff, while in the employ of defendant, was required to perform the most common and simple kind of labor desired in the defendant’s manufactory, such as required no skill, and there seems to be no question but that he did his work well, and at the time of the injury he had been in defendant’s service about two weeks. It appears there was no guard or covering over the knives of the jointer, and this is claimed as negligence on the part of the defendant. We think, however, this was not required. It was a machine frequently in use, and when used or running it could not be kept covered, and when not running was not dangerous and no cover was needed.
It is also claimed that the defendant did not warn the plaintiff that the running machinery upon which he was injured was dangerous. The plaintiff was in his seventeenth year ; had resided in Grand Hapids several years; had known the defendant and his place of business for years. He had worked in the shop where the jointer was located for two weeks previous to receiving his injury, and had seen the machine in which the accident occurred every day during the period, both standing still and when in use; knew all about its location and use, and worked about it every day. He was not engaged in its use at the time, and was doing nothing calling or requiring him to be in any place in dangerous proximity to the jointer. The revolving knives were in plain view, and open to the observation of all persons coming near them. The plaintiff also says in his own testimony he “ knew the jointer was there; ” that if he came in contact with the running knives they would be likely to hurt him; that if he had looked at the jointer he wonld have known whether it was running or not; that he did not look at it because he supposed it was still; that if he had not placed his hand (which had a mitten on) on the table in which the jointer worked, he would not have been caught; that he “ did not pay any attention to whether the jointer was going or not.” If he “had known he was going to get hurt he would have looked out for it. It was an accident.”
Upon these undisputed facts, and the testimony of the plaintiff himself, it is difficult to see what notice or warning the defendant could have given which would in any manner have helped the plaintiff in avoiding the danger which overtook him; and, if he could not, certainly the law requires none. The plaintiff’s, testimony shows him to be a young man of fair intelligence. It is unnecessary to discuss the point made as to the pulley’s being out of repair, as it appears from the record that it was not and could not have been in consequence of the alleged defect that the plaintiff was injured.
We have examined this case with much care, as presented in the record and in the briefs of counsel, and have failed to discover any testimony tending to show any negligence on the part of the defendant.- The casé shows the injury to the plaintiff was the result of an accident, which could have been avoided by a little more caution on the part of the plaintiff, as all the means for so doing were fully within his own observation and reach; and we quite agree with the learned judge of the Superior Court that it was, under all the circumstances, his duty to give the direction he did to the jury.
The judgment will be affirmed. .
Campbell and Champlin, JJ. concurred, did not sit. Cooley, C. J. | [
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Cooley, C. J.
The purpose of the bill in this case is to obtain a perpetual injunction against the carrying on of the business of dealing in intoxicating drinks on certain premises in the village of Meredith, in the county of Clare.
The allegations of the bill are as follows:
On February 28, 1884, Thomas J. McClennan was owner of the premises in question, and sold the same to the defendants James D. Allen and William F. Holtz, and made and delivered to them a deed thereof. This deed contained the following proviso:
“ Provided always, and this contract and the estate in said premises hereby created is subject to the express condition, that if the parties of the second part, their heirs and assigns, shall at any time sell or keep for sale upon said above-granted premises, or knowingly permit any person under them so to sell or keep for sale, any spirituous or intoxicating liquors,whether distilled or fermented, the entire title and estate in and to said premises hereby sold and created shall cease, and the title to said premises shall thereupon at once revert to and vest in the parties of the first part, their heirs and assigns forever, and shall be lawful for the said parties of the first part, their heirs and assigns to re-enter upon said premises, and said parties of the second part, their heirs and assigns, and every person claiming under him or them, wholly to remove, expel, or put out.”
This deed was recorded in the office of the county register of deeds, March 29, 1884, but when recorded this proviso had been stricken out. Afterwards, on June 7, 1884, Mc-Olennán made a general assignment and transfer of all his property, real and personal, and all actions and causes of action, reversions and benefits, to complainant Watrous, and Watrous took possession of the property under the assignment.
At the time of the execution and delivery of the deed to Allen and Holtz, McClennan was the owner of a large amount of real estate in said village of Meredith, and so continued to be until the assignment to complainant Watrous ; and the bill avers “ that he platted said village, and was the proprietor and owner of the plat thereof, and was thereby directly and specially interested in having the said condition so inserted in said deed observed and enforced, and that the same was so inserted for his benefit as owner of the land and lots in the vicinity and contiguous to said premises, and that whatever rights, interests and benefits the said McClennan had by virtue of said condition and in the reversion of said premises for the violation thereof, belong to complainant.”
On or about the first day of August, 1884, William O’Brien took possession of the lot so conveyed to Allen and Holtz, and has commenced the sale of intoxicating liquors thereon as a regular business. O’Brien was aware when he did so of the condition in the McClennan deed, which the bill avers was stricken out by Allen wrongfully ; the act of striking it out being an act of forgery. O’Brien was warned not to enter upon such business before he did so, but refused to heed the warning. The bill avers special injury to complainant Watrous as owner of the-lands conveyed to him by McClennan, and prays that the estate so conveyed to Allen and Holtz be decreed to be forfeited for breach of condition ; that the defendants, and all persons holding from or under them, be enjoined and restrained from giving, delivering, selling or keeping for sale any spirituous or intoxicating liquors, whether distilled or fermented, on said premises, and for other and further relief.
The defendants answered, admitting the principal allegations in the bill, but alleging that the condition in McClennan’s deed to Allen and Holtz was inserted without the knowledge of the grantees, who were not aware of it until some time afterwards and then erased it, as they claimed they had a right to do. Defendants denied “ that said complainant sustains any damage by reason of the sale of liquors as described therein, except that said complainant Watrous and said McClennan are engaged in the sale of liquor in said village, and it is possible that they may not be able to sell quite as much liquor as they would if there was no opposition, and they may be compelled to sell a better article and at more reasonable rates; and in the loss of such profits as a monopoly of the liquor trade might give them, they may be to that extent damaged, but that complainant ■suffers damage in no other way. And defendants aver that if said prohibitory clause had been lawfully inserted in said deed it was void, as a clause inserted to create a monopoly, and in restraint of trade.” They also claimed that McClennan consented to waive the condition before O’Brien began business.
The cause was heard on pleadings and proofs, and the bill dismissed. The complainant appears to have made an affir mative case upon the facts, but defendants insist that they established their allegation that the condition was not in the-deed with their assent. On this the burden of proof was upon them, but we cannot say the preponderance of evidence-is in their favor. The erasing of the condition was without any application to McOlennan for correction, and had ail the-appearance of having been done secretly in the expectation-of obtaining a benefit from a recording of an instrument that on its face showed no restrictions.
The defendants also rely upon evidence that McOlennanwaived the condition. An agent of O’Brien testified that in a certain interview, in which McOlennan several times refused to assent to waiving the condition, he finally did so. The evidence is not very satisfactory, but when followed by' further testimony from the same agent that he soon after-wards went to McOlennan, and endeavored to secure his consent to O’Brien’s proposed business by promising him ten per cent, of the profits, we are not left in doubt that there is some error in the first evidence.
The defendants also rely upon the legal proposition that conditions in restraint of trade are void. This, in its application to a parallel case, was considered in Beal v. Chase 31 Mich. 490, where the authorities are collated and examined-■ It was there held thaté,a covenant in restraint of trade, so far as the covenantee had in his own business an interest in enforcing it, might be valid. This case comes within the decision in that ease. See also Doty v. Martin 32 Mich. 462 Caswell v. Gibbs 33 Mich. 332. There is nothing in the position taken by the defense that the condition tends to the-establishment of a monopoly in the business of selling intoxicating drinks, and is thus opposed to public policy. It is not the policy of this State that every one should sell intoxicating drinks who pleases. ■ On the contrary, heavy taxes are levied and onerous conditions imposed by the State for the express purpose of limiting the number of those who-shall sell; and the condition in question is directly in the line of that policy, instead of being opposed to it.
This disposes of all the grounds of defense which are brought to our notice by the brief in this Court.
The complainant is not entitled to enforce a forfeiture of the estate in equity, for equity,does not aid in enforcing forfeitures. Crane v. Dwyer 9 Mich. 350; White v. Port Huron, &c. R. Co. 13 Mich. 356; Wing v. Railey 14 Mich. 83; Horshurg v. Baker 1 Pet. 232; Livingston v. Tompkins 4 Johns. Ch. 415; Smith v. Jewett 40 N. H. 530; Warner v. Bennett 31 Conn. 468. But on the hearing in this Court they do not claim a forfeiture, and only ask the enforcement of the condition as an agreement. This is a remedy much more favorable to the defendants than the remedy at law» for the equitable remedy only compels the party to abide by the agreement, while the remedy at law takes from him the property he has paid for, and operates as a punishment. Injunction, then, to restrain a breach of a condition, if the condition is legal, is perfectly reasonable. It was so declared in Clark v. Martin 49 Penn. St. 289, where, as in this case, the remedy was sought by a grantee of the party in whose favor the condition had been reserved. He had become purchaser of a lot adjoining that which the defendant had bought subject to the condition, and was held entitled toa perpetual* injunction, upon the ground that the condition was imposed for the benefit of such adjoining lot. “ Common sense,” say the court, “ cannot doubt its purpose; and thus it becomes plain that the duty created by the condition and restriction is a duty to the owner of the adjoining lot, whoever he might be.” A like ease is Whitney v. Union Ry. Co. 11 Gray 359. Bigelow, J., delivering the opinion of the court, after speaking of the restrictions which appeared in the deed then in question, said: “ The purpose of inserting them in the deed is manifest. It was to prevent such a use of the premises by the grantee and those claiming under him, as might diminish the value of the residue of the land belonging to the grantor, or impair its eligibility as sites for private residences; That such a purpose is a legitimate one, and may be carried but, consistently with the rules of law, by reasonable and proper covenants, conditions or restrictions, cannot be doubted. Every owner of real property has the right so to deal with it as to restrain its use by his grantees within such limits as to prevent its appropriation to purposes which will impair the value or diminish the pleasure of the enjoyment of the land which he retains. The only restriction on this right is that it shall be exercised reasonably, with a due regard to public policy, and without creating any unlawful restraint of trade. Nor can there be any doubt that in whatever form such a restraint is placed on real estate by the terms of a grant, whether it is in the technical form of a condition or covenant, or of a reservation or exception in the deed, or by words which give to the acceptance of the deed by the grantee the force and effect of a parol agreement, it is binding as between the grantor and the immediate grantee, and can be enforced against him by suitable process, both in law and equity.” And he proceeds to show that it may also be enforced as against those «who shall derive interests through or under the grantee.
Those cases in which it is held that the fact that a penalty or forfeiture is imposed for doing a prohibited act is no obstacle to the interposition of equity by injunction, rest on the same principle. French v. Macale 2 Drury & War. 269; Coles v. Sims Kay 56: 5 De Gex M. & G. 1; Barret v. Blagrave 5 Ves. 555; Hardy v. Martin 1 Cox 26. So do cases in which specific performance is decreed, notwithstanding the contract provides for stipulated damages. Fox v. Scard 33 Beav. 327; Howard v. Woodward 10 Jur. (N. S.) 1123. This is perfectly reasonable and equitable ; for the penalty, forfeiture or fixed damages are only agreed upon to render it more improbable that the act against which they are directed will be committed.
The cases above referred to sufficiently show that the remedy may be had by and against the assigns of the respective parties, but the following cases may be cited to the same: Tulk v. Moxhay 2 Phill. 774; Mann v. Stephens 15 Sim. 377; Hills v. Miller 3 Paige 254; Barrow v. Richard 8, Paige 354; Brouwer v. Jones 23 Barb; 153; Linzee v. Mixer 101 Mass. 512; Gibert v. Peteler 38 N. Y. 165; Atlantic Dock Co. v. Leavitt 54 N. Y. 35. Even a parol agreement, if once executed, may be subsequently enforced in behalf of parties for whose benefit it was intended. Tallonadge v. East River Bank 2 Duer 614.
That a condition like that in this case is valid in law was decided in Smith v. Barrie 56 Mich. 314, at the last term of this Court, and is not now in question. A perpetual injunction should be decreed, and complainant should recover his costs.
Sherwood and Champlin, JJ. concurred.
Campbell, J.
I think the case is not one for equity. | [
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Champlin, J.
Defendant was garnished at the suit of plaintiff, as being indebted to one Brunette, and appeared before the justice and made disclosure by Alexander Maitland, which was in writing, as follows:
“ The Iron Cliffs Company makes answer to the garnishee summons in the above causeas follows: The principal defendant, Brunette, performed work and labor for the Iron Cliffs Company in 1882, and shortly after left the country, as this defendant is informed and believes, at which time this defendant was in debt to him in the sum of $1500 or thereabouts. Soon after Brunette left, several suits were commenced against him, before three justices of the peace, in this city, the result of which was that this defendant was garnished before said justices for more than was due to said Brunette from this defendant. Garnishee judgments to the amount of several hundred dollars' more than was due to Brunette were rendered by said justices against this defendant, a portion of which judgments were paid by this defendant ; and a portion rendered in this court were not paid, and are now being contested by this defendant in the courts as invalid. If said contested judgments are upheld, then the defendant was not indebted, nor had it any money, property, credits, or effects in its hands nor under its control belonging to said Brunette at time of the service on it of the garnishee summons in this cause; otherwise, if said judgments are held void.”
It is claimed that this disclosure was sworn to before the justice and filed with him. After judgment in the suit of Isabelle against Brunette, before this same justice, a judgment was rendered against the defendant for $172, and $3.51 costs, from which an appeal was taken to the circuit.
On the trial in the circuit the plaintiff was permitted, against defendant’s objection, to introduce additional evidence to the written disclosure made by defendant before the justice, as- follows: (1) Records and files of a judgment recovered in an action brought by one Edward Lahais against Alfred Brunette. (2) The files and records of a judgment in favor of said Lahais against the Iron Cliffs Company, as garnishee defendant, which judgment was declared void by the Supreme Court in a replevin suit brought by the Iron Cliffs Company against Lahais. (3) A stipulation of facts signed by the attorneys of the parties in the case of Iron Cliffs Company against Edward Lahais. (4) Garnishee judgments, and the files and records therein, in five different cases on the docket of the justice, in which the Iron Cliffs Company was garnishee defendant; also the records and files in the principal cases in which defendant was garnishee. (5) The files and record of the judgment rendered by the justice in the case of Etienne Isabelle against Alfred Brunette. (6) The oral testimony of Byron D. Jones, the justice of the peace before whom the disclosure was made, who testified that Maitland was sworn to the written disclosure and that it was filed.
He also testified that certain questions were asked Mr. Maitland by Isabelle’s attorney, and, although the justice made no minute in writing of the questions asked or answers given, he was permitted by the court to testify from his recollection that the attorney asked him what amount of money he had in his hands, as matter of fact; to which the witness replied : “ There was no paper put in that Maitland had signed his name to. The paper setting forth the answer heretofore referred to was the answer in all three cases. In reply to questions asked by you (Hayden) I think he said he had on hand about five hundred and fifty odd dollars; the exact amount I cannot recollect; I would not know the exact amount if you named it; it was something over five hundred and sixty dollars.”
The plaintiff also produced Alexander Maitland, and examined and cross-examined him with reference to his disclosure and to the indebtedness of the Iron Cliffs Company to the principal defendant, and also as to the six judgments which were contested by the company. The witness made no admissions of any liability of defendant to the principal defendant.
The course pursued in the trial of this case in the circuit court was erroneous. How. Stat. § 8036, provides that, “ on the appearance of such garnishee before such justice, or on some other day to which the same may be adjourned, the plaintiff may proceed to examine the garnisheq on oath or otherwise, as the plaintiff may elect, touching the matters alleged in,the affidavit, and the justice shall take minutes of •such examination and file the same with the other papers in the ease.” The disclosure he thus makes is the foundation of all further proceedings in the case against him. His statements cannot be controverted or contradicted; and unless by his disclosure it is clearly shown that he is liable to the principal defendant all further proceedings against him are at an end.
The law makes it the duty of the justice “ to take minntes of such examination and file the same with the other papers;” and while it does not say that he shall reduce the examination to writing, yet such is its fair import when it is considered that the disclosure is the evidence and all the evidence that can be produced against him. If the justice omits to reduce material statements or admissions of the garnishee to writing, such statements or admissions cannot be proved upon the trial by the justice or by any other witn'eás for the purpose of creating a liability not admitted by the written disclosure. In Newell v. Blair 7 Mich. 103, it was held that the plaintiff was at liberty to examine the garnishee fully in the circuit court; but he was not at liberty to contradict him, but for further information he might examine the garnishee himself to get at all of the facts, and that ■other evidence might be introduced when it does not conflict with the disclosure of the garnishee or increase his liability; and as to such liability the garnishee might be examined at length; and that the garnishee might in his own behalf testify in exoneration of his own liability.
Subsequent decisions of this Court have uniformly held that no recovery can be had against a garnishee in a jus- ' tice’s court, except upon the liability as admitted by the disclosure. Walker v. Railroad Co. 49 Mich. 446; Spears v. Chapman 43 Mich. 541; Weirieh v. Scribner 44 Mich. 73; Sexton v. Amos 39 Mich. 695; Hackley v. Kanitz 39 Mich. 398; Lorman v. Phœnix Ins. Co. 33 Mich 65; Thomas v. Sprague 12 Mich. 120; Wellover v. Soule 30 Mich. 482; Ford v. Detroit Dry Dock Co. 50 Mich. 358.
This is the only safe construction to be placed upon the statute. It would be a dangerous-and unsafe principle to adopt that a justice might neglect entirely his duty to take-minutes of the disclosure, and testify to the disclosure made from his memory, and it would be likewise unsafe to permit him to supply any part of the disclosure from his recollection. The law does not contemplate or authorize any such proceeding; and no decision yet madé by this Court gives countenance to any such doctrine.
It is claimed, however, that the testimony of the justice was admissible in corroboration of the disclosure in the justice’s court, and that it is not contradictory of such disclosure. It is plain that the disclosure itself did not admit any liability to the principal defendant, or that defendant was indebted or had any money in its hands belonging to him. The evidence of the justice was that defendant did admit that it had about $560 in its hands belonging to the principal defendant,, if the judgment against it as garnishee were held invalid. This testimony not only increased the liability of the garnishee, but it admitted a liability not embraced in the written disclosure.
The stipulation of facts made in another case by the attorneys therein was not admissible in this. The onty ground upon which its reception could be based was that it contained admissions of the party of the existence of certain facts. Attorneys as the agents of parties whom the3r represent in a cause have authority, by virtue of such agency, to make admissions, which are binding upon the parties in that particular case; but they have no authority by reason of such relation to bind a party generally by admission of facts. Their agency is for a special purpose, and for a specified transaction, and their admissions made with reference thereto are binding upon the party they represent. JBut admissions so made cannot bind the party in other suits or proceedings between other, parties. Elting v. Scott 2 Johns. 157, 163; 1 Greenl. Ev. §§ 113-115; Harrison’s Devisees v. Baker 5 Litt. 250; Baylor v. Smithers 1 T. B. Mon. 6; Tompkins v. Ashby Mood. & M. 32; Brittingham v. Stevens 1 Hall 379.
The judgment rendered in the principal suit was objected 'to as void. The suit was commenced by summons teste’d on •the 27th day of February and returnable the 8th day of .March, 1882. The law requires such summons to be served • at least six days before the return-day. The last day for service, therefore, was March 1st. The record offered in evidence showed that the constable returned the summons on February 27th, and in his return as to the method of service, stated that the defendant, not being found, the same was •served by leaving a copy thereof at the defendant’s last place ■of abode, in the presence of one of the family of suitable age and discretion, who was informed of its contents. OnMarcli 8th, the justice, at the request of the plaintiff, issued another summons returnable on the 18th of March. The law provides that a summons taken out in continuation of the •suit shall be returnable not less than three nor more than twelve days from its date, and shall be served at least two days before the time of appearance mentioned therein. The last day upon which this summons could be served was the 15th day of March. It appears from the record offered in evidence that it was returned on the léth of March ; the constable returning that the defendant could not be found, after ■making diligent inquiry, and that the same was served by leaving a copy thereof at the defendant’s last place of abode, in presence of one of the family of suitable age and discretion, who was informed of its contents. On the 18th, the defendant not appearing, the plaintiff demanded an attachment, made the required affidavit, and filed his bond, and an attachment was issued, returnable on the 25th day of March, 1882, which was returned by the constable that the defendant could not be found in the county of Marquette, and that a copy of the writ had been left at the last place of residence of defendant in the township of Negaunee, and that no property could be found belonging to the defendant.
The statute requires the attachment to be served at least six days before the return-day thereof. The return of the constable does not show when he served it, nor does he return that the copy served at the last place of residence of the defendant was certified by hiin. The defendant did not appear on tbe return-day of the attachment. The jurisdiction of the ■justice over the case, and his authority to issue a second summons in continuation of the suit, depended upon the compliance with the law prescribing the regular course' of proceeding. It was the duty of the constable to diligently and in good faith endeavor to make personal service of the summons on the defendant, and he must exercise that diligence during the whole time given him by law to perforin that duty, and he has no right .to make return of the summons “not found” until the time has expired in which he could lawfully make service. The jurisdiction of the justice depends upon a proper return showing a diligent attempt to make such personal service. This has frequently been held in attachment cases, and the same principle applies in case of summons where it is the foundation of subsequent proceedings to obtain jurisdiction. Withington v. Southworth 26 Mich. 381; Town v. Tabor 34 Mich. 262; Manhard v. Schott 37 Mich. 234; Brown v. Williams 39 Mich. 755; Myers v. Prosser 40 Mich. 644; Michels v. Stork 44 Mich. 2; Kraft v. Raths 45 Mich. 20; Smalley v. Lighthall 37 Mich. 348; Iron Cliffs Co. v. Lahais 52 Mich. 394.
But it is claimed that the justice on the return-day of the attachment adjourned the suit, and on the adjourned day the defendant appeared by M. H. Crocker, his attorney, who proved his authority; that issue was then joined, and the parties proceeded to trial and a judgment rendered. And the record so shows. This appearance, the plaintiff claims, waived all the jurisdictional defects mentioned, as was held in Manhard v. Schott, supra. This is undoubtedly so as to the defendant Brunette; but tbe question here presented is as to the effect such want of jurisdiction had upon the garnishee proceedings, and whether the waiver by defendant of such defects serves to keep alive and in force the garnishee suit. This point was raised and expressly decided in Iron Cliffs Co. v. Lahais supra, under precisely the same state of facts as are hero presented ; and it was there held that the appearance of Crocker, the attorney, whatever may have been its effect upon the principal defendant, could not have the effect to revive any void proceeding affecting the garnishee ; that the justice having lost, or rather not having acquired, jurisdiction over the person of the principal defendant, by reason of the illegal service of the summons, the suit went down for want of jurisdiction in the justice to continue it by issuing further process; and the garnishee proceedings being merely ancillary, went down with it for the same reason. That case rules this, and the judgment must be
Reversed, and a new trial granted.
The other Justices concurred. | [
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Champlin, J.
Relators ask for a mandamus to compel respondent to set aside the order made in a cause for partition confirming the report of commissioners appointed therein, and to set aside such report. Several grounds are alleged, but one of which will be noticed here.
The petitioners allege, and the return shows, that, after the commissioners had qualified, they proceeded to the discharge of their duties without giving notice to complainants or their solicitors, but that they were attended by the solicitor for some of the defendants, who were tenants in common of the land to be divided; that he directed them in what manner to proceed, and prepared their report, which they signed and filed in the cause.
We think this was improper. The commissioners are clothed with important duties, and it is essential that their minds should be free from bias, and that they should not be influenced, or subject to be influenced, by the parties interested by communications made in the absence of other parties. If the commissioners desire information respecting their duties, they should apply to the court for instruction. There can be no objection to their notifying all parties to appear before them, at a time and place to be stated, and affording them an opportunity to produce proof respecting the value of the land to be partitioned, should they desire, to embrace it; but in the deliberations of the commissioners, and in the preparation of their report, all interested parties should be excluded. Paul v. Detroit 32 Mich. 109; Peavey v. Wolfborough 37 N. H 286; Marquette, &c. R. Co. v. Probate Judge 53 Mich. 218. We do not say that the commissioners were improperly influenced. That question is not open to inquiry. The rule relates to the proper administration of justice, and is inflexible, and its violation will be corrected when timely application is made.
The order confirming the report of the commissioners must be vacated, and the report vacated and set aside, and the case will then proceed according to the practice of the court.
Let the writ of mandamus issue accordingly.
The other Justices concurred. | [
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Sherwood, J.
The plaintiff brought an action of assumpsit against the defendants as copartners, to recover of them a balance claimed to be his due on account for, flour and feed sold and furnished to defendants. The declaration was on the common counts, and the plea was the general issue. The cause was tried in the Newaygo circuit before Judge Fuller, by jury, and the plaintiff recovered a judgment for $607.49. The defendant Wyatt did not appear or defend. Sweet brings error.
The plaintiff’s account commenced . on the 26th day of March, 1874, and continued until the 12th day of May, 1875, consisting of about 280 different items. The record tends to show the following facts: That in 1874 and 1875, defendant Wyatt was engaged in lumbering operations in Newaygo county under four different contracts. No one but Wyatt was interested in any of these contracts. The four contracts were run from the same camps, and all supplies purchased by Wyatt were used in all the jobs indifferently, without separation. The defendant Sweet was the owner of the undivided one-eighth of the timber put in under one of these contracts. Wyatt also owned one-eighth, one Dickinson one-fourth, and Mr. Gray one-half. Wyatt was also part owner of the timber put in under two of the other contracts. For this lumbering Wyatt was paid by the thousand, and defendant Sweet was to furnish one-eiglith of the amount due Wyatt from time to time for the lumbering, and the other parties interested, their proportionate shares. The supplies sued for were furnished Wyatt by plaintiff to carry on these lumbering jobs. Some of them also went to Wyatt’s family and elsewhere. Martin L. Sweet, defendant Sweet’s father, furnished Wyatt the means to operate these various lumbering jobs, and also furnished defendant Sweet the means to pay Wyatt the one-eighth due him for putting in his one-eighth of the logs. Wyatt, under his arrangement with Martin L. Sweet, drew orders or drafts on him, which he accepted and paid. These orders were signed by Wyatt, “ Sweet & Wyatt,” or ■“ Sweet & Wyatt, by D. Wyatt, agent,” or “ D. Wyatt, agent,” or “ D. Wyatt.” With these orders he sometimes paid his creditors. Plaintiff had two of these orders given him, but these two were drawn by Wyatt. They were not signed “ Sweet & Wyatt.” M. L. Sweet authorized Wyatt to draw these drafts, and defendant Sweet knew it. All these orders and drafts, however signed, were Wyatt’s personal matters, and were charged him by M. L. Sweet. The account sued was commenced in the following manner: Wyatt had. previously dealt with plaintiff in his individual name. After making his arrangement with Martin L. Sweet, Wyatt stated that arrangement to plaintiff, and in pursuance of it made his purchases of plaintiff. Plaintiff did not know what arrangement existed between Wyatt and defendant Sweet. These things appear from testimony of Wyatt.
Plaintiff testified that Wyatt told him, when opening the account, that he,'Wyatt, had formed a copartnership with defendant Sweet, and that Martin L. Sweet was going to furnish the money; that it was on the faith that Martin L. Sweet would honor Wyatt’s draft that he gave the credit; that he did not care whether Cassius Sweet was worth a dollar or not. The account was first opened on Kritzer’s books in the name of “D. Wyatt.” The only reason plaintiff had for supposing defendant Sweet to be Wyatt’s partner was that Wyatt so told him, and that he thought he had seen goods marked Sweet & Wyatt, in Wyatt’s wagon.
It further appeared, by way of an attempt by plaintiff to show a partnership between Wyatt & Sweet, or a holding out of Sweet as partner, that it was matter of common notoriety that Sweet & Wyatt were partners; that defendant Sweet was once introduced by Wyatt to Mr. Utley as his partner, and made no disclaimer of that relation; that Sweet introduced Wyatt to Crawford Bros, of Grand Bapids'as his partner; that Wyatt used the name of Sweet & Wyatt in dealing with one S. K. Biblet; that Wyatt was financially irresponsible, and that Kritzer and Martin L. Sweet knew it. Defendant Sweet did not know this fact.
To prove knowledge by defendant Sweet of the fact that Wyatt was trading with the plaintiff in the name of Sweet & Wyatt, the plaintiff was allowed to show that Martin L. Sweet rendered an account of his dealing with Wyatt to Wyatt; that part of such account was in the handwriting of defendant Sweet; and that two orders of "Wyatt’s to plaintiff were therein charged to Wyatt. Testimony was also offered tending to show that the business to which the account referred was all transacted in the name of the firm of Sweet & Wyatt; that the defendants drew notes and drafts in that name, and not only did business with the plaintiff, but several others did the same in that name. There was testimony also offered tending to show that after the -account in question accrued, defendant Sweet ratified it.
It was the defendant’s theory, upon the trial of the case, that no actual partnership existed between the defendants, and the court so ruled upon the trial, and the plaintiff then placed his right to recover from the defendants upon the grounds that they represented themselves to him as partners or a firm, did business 'with him and others as a firm, and as such were reputed, and in that capacity contracted the indebtedness for which he claims; and after the account was made out and presented for payment, the defendant Sweet, who now contests it, made no objection to it, but ratified it.
It is true that it .was not necessary that the defendants should have been partners, as between themselves, if they had the goods, to make them liable; but if they held themselves out as such to the plaintiff, it was sufficient. It was not necessary that both defendants should have actually made the purchases, if the defendants had made themselves liable in the partnership relation for what they purchased of the plaintiff; either defendant could create the liability for the purchases after the relation was once established in either of the modes recognized by law. It was of no consequence what was done with the goods, as between the defendants, after the goods were obtained; whether they were used in the family of the one or the other, or for the benefit of both, there was no firm in fact interested. If the defendant Sweet, who now contests the case, ratified the account of the plaintiff in any manner, after it was made, and the amount thereof known to him, the liability of the other defendant not being contested, then the plaintiff was entitled to recover. If the testimony showed, as to this plaintiff, the defendants made themselves liable as partners in tbe plaintiff’s dealings with them, though not partners in fact, no other or different evidence would be required to show acquiescence by defendants in an account stated than in case the partnership actually existed, and the acquiescence of one defendant would be binding on both.
The substance of these legal propositions, as also the following directions, were given to the jury by the ’court in the charge for their guidance in considering the facts, viz.: That the burden of proof rested upon the plaintiff to show that the property was sold; that the balance of the indebtedness therefor remains due to the plaintiff and unpaid; that the defendants did the business with the plaintiff under the firm name ; that defendant Sweet knew it, and did nothing to stop the business, and thereby recognized his liability.
Under the testimony given we think the charge was correct, and the case properly submitted to the jury thereunder, and unless some error has been committed in admitting or rejecting the testimony, the judgment must stand. There was sufficient testimony in the case tending to show that Sweet allowed himself to be held out to the plaintiff as a copartner with Wyatt, to go to the jury; and this is all that is necessary to support the verdict upon this point in this Court, if the testimony was properly admissible. The weight of testimony was for the consideration of the jury upon the merits, or for the circuit judge to consider on a motion for a new trial. And it will not do to say that there was no testimony tending to show that Swpet did not know that he was thus held out, represented and regarded, so long ns he allowed himself to be introduced as a partner of Wyatt, and himself introduced Wyatt to business men as his partner, consented to the firm name, and allowed the use of it in his business done by Wyatt; saw his paper ¿float containing the signature of Sweet & Wyatt, and did not seek to stop its use till disaster threatened.
Counsel for defendant Sweet, assuming that there was not ■sufficient testimony upon the question of joint liability to go to the jury, made many objections, which would not have been offered under a different theory, and we do not, therefore, consider the objections in the order in which the alleged errors are assigned. We have examined them all carefully, and all that counsel have said in their briefs, but have found no error which could prejudice the rights of defendant Sweet upon the trial, and there is no occasion for considering the rights of the other defendant, ás he does not complain, and has not appealed.
It is difficult to separate the sayings and doings of Martin L. Sweet, the father of Cassius, from the transactions of Sweet & Wyatt. He it was who suggested the mode and manner in which Wyatt and Cassius should do business, and which was assented to and adopted by them, and he also furnished much of the means with which the business was done. It is possible defendant Sweet may be wronged by the judgment rendered, but we see no way we can aid him in his efforts to correct it upon this record, and
The judgment must be affirmed.
The other Justices concurred. | [
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Skebwood, J.
At the time of the injury complained of in this case, the defendant’s railroad extended from the city of Marquette to St. Jgnace, in the TJpper Peninsula. On the 20th day of August, 1883, the plaintiff’s cow strayed upon the road of defendant at Dollarville, and was run over upon the main track by defendant’s cars, and killed. The defendant’s railroad ran east and west through Dollarville station at which there is a side track on both sides of the main track. The-depot is between the south side track and the main track, and the freight-houses are south of the south siding. The south siding was about 1050 feet long. The side track on the north side is about 150 feet from the main track, at the-widest point, and is.called the “Mill-siding,” and is very much longer than the south siding between the switches on the north side of the mill-siding, and a little west of the depot. The American Lumber Company have a saw-mill,, which stands about fifty feet from the mill-siding, and its platform came up to the track, from'which it loaded lumber upon the defendant’s cars. The ground between the mill-siding and main track was mostly used by the mill company for piling slabs, loading and unloading logs, their lumber and other freight from the cars. The mill-siding connected at the east end with the main track. Charles H. Watson was roadmaster for the defendant and testified : “ At the time the cow was killed the railroad company was engaged in handling freight for the mill company and other parties. The yard of the railroad company, that was used for freighting business and the business of the public, at that time extended east and west as far as the switches where the south side track connects with' the main track, and beyond. * * * The whole length of the ground was then used by the railroad company as their depot grounds and yard. The mill-siding was then built to a point about opposite the [west] culvert and switch.” The sidings were all built and owned by the railroad company, and the grounds between them appear to have been used-and controlled by its agents. That they were used as the depot grounds and yard of the defendant is positively testified to by the track-master, and does not ■seem to have been questioned or contradicted by anyone. The only negligence or fault of the defendant averred in- the •declaration, or relied on by plaintiff for recovery, is the omission of the company to fence its right of way where the injury occurred.
No exception was taken to the admission of testimony upon the trial, at the close of which counsel for the defendant requested the court to charge the jury “that the company was not required by law to fence its depot and station .grounds, and that it appearing that the place where the plaintiff’s cow came on the track and was killed was within ■the depot and station grounds of the defendant, the plaintiff had made out no case, and the verdict must be for the defendant.” The court refused so to charge, but did charge the jury
“ That the statute provides that every railroad company shall erect two fences on the line of its road of the height and strength of division fences required by law, with fences and cattle-guards at the highways and street crossings sufficient to prevent cattle and other animals from getting on 6uch railroads, and until such fences, cattle-guards, etc., are •constructed, the railroad is liable for the destruction of any animal that gets upon the railroad by reason of the neglect to erect such fences; and the claim of plaintiff in this case is that the defendant had no fence where it should have constructed one and where the cow got upon the track, and so they are liable.”
“ Our Supreme Court has decided that this statute does not apply to station and depot grounds, because these places are required both for the necessity and convenience of the railroad and of the public, and that, therefore, it was not the intention of the Legislature to require that these places should be fenced which the public convenience, and the con venience ■of the railroad company, require should be open. If, therefore, you find in this casé that the place where this cow got upon the railroad track was a portion or part of the station and depot grounds of the defendant, the Detroit, Mackinac & Marquette It. It. Co., at that time, then the plaintiff is hot entitled to recover. If they were not a part of the station .and depot grounds at that time, then it was the duty of -the ■railroad company to fence them ; to put up a fence for the protection of the public and to keep cattle off. Now, a mill or any other businéss carried on near a depot so as to become a pai’t of the depot grounds, so as to be required for the convenience of such mill-owner, or owner of any such other business, would become a part of the depot grounds or station grounds, and need not necessarily be fenced. But it does not follow that the track running from the main track of the defendant to such mill placed at a distance from the railroad track, would absolve the company from fencing any such a portion of the track. In other words, such track, run to a considerable distance, would not make that side track to the mill, or the place where the mill-owner carried on his business, a portion of the depot grounds. It must be in such proximity to it as to constitute it a part of the depot grounds. The fact that there was no fence on any other part of the road than that where the cow got on has nothing whatever to do with the case. The question is, as I have stated to you, was this place where the cow got on a portion of the depot and station grounds ? If it is, the plaintiff cannot recover, .and your verdict should be for the defendant; if it was not, then your verdict would be for the plaintiff for the value of the cow.”
The jury returned a verdict for the plaintiff, and defendant brings error.
The only question in this case is whether the injury was done at such a place as the defendant was not required by law to fence. The plaintiff concedes that depot and station grounds proper, to the extent actually used for the legitimate business of the road and a public depot, are not required to-be fenced. He insists, however, that Dollarville is a sawmill station in a new and not very much improved country, and, although a depot was erected and used occasionally by others, it was used principally by the American Lumber Company, and for its accommodation ; and that the grounds north of the main track were never used as depot grounds, neither did the necessities or convenience of the public nor the railroad company require them for such use at the time the plaintiff’s property was injured; and that whether or not such necessity did exist, and whether the place where the cow came upon the company’s grounds was depot and station grounds, were facts to be found by the jury. The convenience of the public, as well as that of the company, is the reason why the statute requiring the defendant to fence its track should not apply to depot and station grounds, and it would require legislative action to induce courts to hold otherwise. Flint & P. M. Ry. Co. v. Lull 28 Mich. 510; Chicago & G. T. Ry. Co. v. Campbell 47 Mich. 265; Davis v. Burlington &c. R. Co. 26 Ia. 550; Rogers v. Chicago &c. R. Co. id. 558; Packard v. Illinois &c. R. Co. 30 Ia. 474; Latty v. Burlington &c. Ry. Co. 38 Ia. 250; Blair v. Milwaukee &c. R. Co. 20 Wis. 254; Indianapolis &c. R. Co. v. Caldwell 9 Ind. 397; Lloyd v. Pacific R. Co. 49 Mo. 199; Swearingen v. Missouri &c. R. Co. 64 Mo. 73; Galena &c. R. Co. v. Griffin 31 Ill. 303; Indianapolis &c. R. Co. v. Christy 43 Ind. 143; Jeffersonville, M. & I. R. Co. v. Beatty 36 Ind. 15. What amount of land may be taken and held for the use of a railroad company in the exercise of its franchise is always settled when it secures its, right of way, and when it is once acquired the company may designate and set apart so much thereof as it may deem necessary and proper for depot and station purposes, as the exigencies of its business may require at the points where it locates its stations. The territory required for this purpose, when ascertained and set apart, constitutes what is called depot and station grounds, and varies in amount usually according to the location and amount of business to be done, and the necessities and convenience of the company and public in doing their business at the station. These grounds, as we have seen, are not required to be fenced by the company, and of course cannot be made to extend from station to station. They are usually quite limited in extent, and are intended' to furnish sufficient space for construction of side tracks, offices, passenger depots, freight-houses, and other buildings, ways, and yards suitable and convenient for the speedy and safe reception and discharge of passengers and freight, and the storage of cars and other property belonging to the company and persons doing business with the road. The existence or extent of these grounds is not to be determined by the continued actual use of any part thereof. When station grounds are laid out, their contemplated future use is not unfrequently of more consideration than the actual demands at the time in determining their shape and extent. The construction and operation of new lines of railroad always tend to the development of the resources of the section through which it passes, and is followed by increased population and business. This is a matter of such common observation that ordinary prudence and foresight determines such an appropriation for station purposes as shall be commensurate with such reasonably anticipated growth. When these grounds are appropriated and set apart by the company it w.ould be neither safe nor wise to allow their limits to be curtailed or extended by a jury in a proceeding where they collaterally come in question, as in this case, upon the mere showing that any part of the same was not in actual use at any particular time.
The testimony in the case is very brief, and the main facts stand undisputed. There is no question but that the plaintiffs cow was on the'defendant’s right of way when first seen, and from that time until she was killed she was upon the defendant’s station grounds. Where'the material facts in a case are undisputed or admitted, it is the duty of the court to apply the law, and if such facts fail to make out the plaintiffs case, the court should direct a verdict for the ■defendant.
I think the request of counsel for defendant should have been given to the jury, and the judgment should be
Reversed, and a new trial granted.. ■
The other Justices concurred. | [
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Sherwood J.
The respondent, Thomas Hare, and one Daniel Billington, were jointly complained of before Alonzo Plummer, a justice of the peace at Benton Harbor, for the murder of John McCrone, at the township of Benton, in Berrien county, on the 6th day of October, 1883. The complaint was made on the 29th day of December, 1883, by Isabella McCrone, the wife of the deceased. Warrant was issued the same day for the arrest of the defendants, and thereunder Hare was arrested on the 31st of December, and Billington, January 5th following, 1884. On January 7th the-defendants were taken into court, and on their motion the case was continued until the 16th of January, at which time the case was again' adjourned to the 7th of February, at Kellogg’s Hall, in the city of Niles, and the record then says: .
“ By request, William J. Gilbert, a justice of the peace-of Niles township, appeared to sit during the further hearing-of said cause.
February 7,1884. Cause called at adjourned hour at Biles, in said county. Parties in court, with their attorneys: James A. Kellogg, prosecuting attorney, and B. A. Hamilton, counsel for the people ; and Law C. Fyfe and S. Tryon, attorneys for defendant Hare, and Mr. Tabor, attorney for defendant Billington. After hearing the evidence, the court finds that said offense has been committed, and that there is probable cause to believe, and the court does believe, said-defendants to be guilty of the commission thereof. The court therefore requests said defendants, without bail, to appear before, the circuit court for the county of Berrien, on the first day of the next term thereof, and thence from day to day to answer to any indictment, information, or complaint that may be filed against them.
Alonzo Plummer, Justice of the Peace.”
The complaint commences, “ The complaint and examination on oath and in writing of Isabella McOrone taken and made before me, Alonzo Plummer, justice of the peace of the township of Benton, in and for said county,” etc.; continuing in the usual form. Both justices signed warrant of commitment. The information in the case was filed on the 14th day of April, 1884. An'd on the same day a motion was entered and made to quash the information filed in the case by counsel for defendant, and the same day denied by the circuit judge.
The motion is as follows:
“Now comes the defendant Thomas Hare, and moves the court to quash the information filed in this cause by him, the said defendant Thomas Hare, for reasons following: That when the complainant, Isabella McOrone, swore to said complaint she had no personal knowledge of the charge therein -made, and had no knowledge of the facts therein contained, but that she made the same simply upon information derived from third persons; that there was no such examination as the statute requires, and that the justice, Alonzo Plummer, acquired no jurisdiction to issue said warrant, or to hold the examination for the said offense;' that the said defendant Thomas' Hare has .never had the examinations to which, under the statute, he is entitled, before any information can be filed against him. Second, that said arrest of the said defendant Thomas Hare was without lawful right, and void, because it deprives the defendant of his liberty without due ■process of law, and against the law, which requires that no warrant shall issue without probable cause. Third, there has been no determination and finding by the examining magistrate, Alonzo Plummer, and William J. Gilbert, associate examining magistrate, as the statute requires, as to there being probable cause to believe the defendant guilty of •the offense charged.
L. 0. Fyfe,
Spafford Tryon,
Attorneys for defendant Thomas Hare.”
It is alleged as error that the court denied this motion, and •compelled the defendant to go to trial. The respondent was permitted to withdraw his plea of not guilty for the purpose of enabling him to make this motion.
We think the complaint in this case was sufficient to give the ■court jurisdiction. The allegations are positive as to the •offense committed, and it does not appear there was no examination of witnesses under oath before the warrant issued, and it was not necessary to reduce such examination to writing. Such examination is taken only for the purpose of aiding the court in ascertaining the probability that the •offense has been committed. People v. Lynch 29 Mich. 274.
The objection made upon the first ground comes too late, after the examination has been had and returned, where the •commission of the offense is positively sworn to in the complaint. People v. Dowd 44 Mich. 488. The record shows that an examination was had before the magistrate Plummer, .and that justice Gilbert sat with him a portion of the time the case was under investigation; that the justice who issued the warrant determined before he issued it, that there was-probable cause for his so doing; and we do not agree with counsel for the defendant that there has been no legal finding by the justice of probable cause to believe that the defendant committed the offense charged.
It is claimed under the third ground for the motion that Justice Plummer associated with him, before entering upon the examination, Justice Gilbert, for the purpose of hearing-the case with him, and that upon the close of the examination Gilbert took no part in the subsequent proceedings; and counsel relies upon How. Stat. § 9477, to sustain him in the-claim made in his motion. The section reads as follows:: “ Any magistrate, to whom complaint is made, may associate with himself one Qr more other magistrates of the same county,, and they may together execute the powers and duties conferred upon such magistrates; but no fees shall be taxed for such associates.” The only evidence that is claimed to show that Plummer associated Gilbert with him, or intended to, under the statute, appears in the clause above quoted, and, it will be seen, who requested Justice Gilbert to sit, or for what purpose he sat, does not appear in the statement made upon the record by Justice Plummer; neither do counsel for the. respective parties appear to be agreed upon that subject. It is claimed by counsel for the defendant it was for the pur-' pose of taking a part in the deliberation of the court under the statute, and by two of the attorneys for the People, Mr.. Kellogg and Mr. Edwards, that it was only for the purpose-of assisting Justice Plummer in taking down the testimony given upon the examination. Justice Gilbert could act under the statute only upon the request of the magistrate, and his jurisdiction so to do should appear in some way upon the record, which we do not find. The record, therefore, rather supports the position taken by the attorneys for the People. It Can, however, make little difference by whom the request was made, so long as there is no proper evidence of the-purpose for which it was made. The motion was correctly denied. It does not appear objection was made to the examination, nor to the manner in which it was conducted. Tech nical nicety in all these preliminary proceedings should, as much as possible, be avoided and discouraged. It is not in that spirit the law was intended to be administered, either in civil or criminal proceedings. The cause of justice is seldom promoted by it, while great embarrassments in civil, and much delay in the apprehension and conviction in criminal cases, is often promoted. The defendant took a separate trial, and'was convicted of manslaughter.
On the trial the prosecution, by Billington, gave evidence tending to show that on the night of the 5th of October, he and defendant Hare left the fair ground where a county fair was being held, and went to the village of Benton Harbor ; that they were, during the greater part of the evening, until late, in a place known as Collins’ saloon; that during the evening, and at a time when all the business houses were closed, Hare and Billington stepped outside the saloon, and while there McCrone came by, when some words were interchanged between McCrone and Hare; that McCrone continued in a northerly course along the street, and at a point where the street varies from a direct course he kept on into the middle of it, and there, Hare having followed, came up to him, and struck him from behind, when McCrone turned and grappled with Hare, and Hare struck him, when McCrone said, “My God, I am stabbed,” and they together sank to the ground and there remained a short time, when Billington pulled Hare away from McCrone, and it was then discovered that McCrone was dead. Hare and Billington together then carried the body to the canal and threw it into the water, where it was found on the 13th of the same month; that Hare and Billington then went to Collins’ saloon, and from there to the stable where their horse and vehicle, a two-wheeled cart was, and getting it went to St. Joseph, to the house of Hare’s mother (a boarding-house), and remained during the, night, had a late breakfast the morning following, prepared and served by a girl named Jennie Lawton; that during the forenoon Billington got ready the cart, and about eleven o’clock they started and drove to the home of Billington’s mother, near Dowagiac, some twenty-seven miles distant, arriving in the evening, and remained during the night, and the day following (Sunday) Hare went to the place where he was working (a Mi’s. Sherman’s), some fifteen miles distant. The People relied upon the truthfulness of the facts stated by Billington to secure a conviction. The defense claimed that Hare and Billington left Benton Harbor at about five o’clock of the 5th, and went to Mrs. Sherman’s, and remained during the night, and the following morning went to Dowagiac, and that evening came to the home of Mrs. Billington and remained during the night, and the day following Hare took his departure for the Sherman place ; and upon these several theories the cause was tried.
The hody of McCrone was first discovered in the water off the dock at Benton Harbor, upon the 13th day of October, A. D. 1883. Dr. George Bell testified he made.an examination of the body upon that day, and on the next day an autopsy. He noticed no froth or water about the nostrils, found a bruise on the shoulder, slightly discolored, and a cut on the right hip three inches in length and a half inch in depth. The edges of the cut were clear, and apart three-fourths to one-half inch. Counsel for the People then asked the following question: “ From the appearance of the wound, what would you say it was caused by ?” This and a subsequent question of the same import- were objected to, upon the ground that the witness could not give an opinion upon the matter. The objection was overruled.
We think the objection to this question was well taken, and clearly comes within the decisions of this Court heretofore made. The question calls for the fact which was to be found by the jury. What might have caused it would have been proper, but what did cause it was the real question for the jury. Wilson v. People 4 Park. Crim. R. 619, 649; Evans v. People 12 Mich. 35; Moore v. State 17 Ohio St. 521; Hitchcock v. Burgett 38 Mich. 506; Van Deusen v. Newcomer 40 Mich. 90. This question in this case became of more importance than usual, because, to maintain the People’s theory, it had to be made to appear that death had •been produced by violence before the body of McCrone was placed in the water.
The following additional questions put to Dr. Bell were objected to, and the objections overruled and testimony received, viz.: “ (1) From the appearance of this wound (referring to that upon the shoulder), would you say it was inflicted in his life-time, or after death? (2) From general ■appearances, and from these facts which you have detailed, what is your opinion whether McOrone was drowned? (3) What effect upon the individual has a violent pressure on the •wind-pipe ? (4) Suppose there was a pressure on the trachea •sufficient to flatten it, or upon the larynx sufficient to draw it together, what would be the effect upon the individual ? (5) Would he be able to cry out? (6) In what length of time would pressure cause death? (7) Would it cause insensibility? (8) And a loss of power?” The objections made to these questions were that they called for the opinion of the witness and were irrelevant. We see no objection to the rulings of the court upon these questions. There seems to •have been no question made as to the doctor’s qualifications :as a physician, and he made a thorough examination of the •body. He was present and took part in the post-mortem' •examination, and described with particularity the indications •of violence, and wounds upon the body and its condition, and spoke from the personal examination made, as well as upon a hypothetical statement of facts, and his evidence was properly received. The testimony in the case contained sufficient facts upon which to base the hypothesis included in the questions. The order in which the testimony should be renewed was within the discretion of the court.
Dr. Scott, of Benton Harbor, was sworn in' behalf of the People, and testified that he did not see the body of McCrone. He was asked the following questions, after testifying that he heard the testimony of Dr. Bell: (1) Did you hear Dr. Bell’s description of McCrone’s shoulder ? (2) What would you say from the description of that wound, whether the bruise was made during life or after death ? (3) Did you hear Dr. Bell’s description of the wound in the side ? (4) What do you say as to that?” The witness answered he “ should say that the wound was made during life.” The questions were all objected to on the ground that they were irrelevant and immaterial, and “no testimony in the case to warrant the questions.”
The facts which were testified to as to the appearance of the dead man do not appear to have been disputed, and Dr. Scott, assuming the facts which he heard Dr. Bell testify to, to be true, and which were not contradicted, answered the questions by giving his opinion that the physical injuries referred to were made before death. We find no error in admitting this testimony. He was not required to pass upon the credibility of the testimony. The questions called for his opinion upon a certain state of facts, and only his professional knowledge and experience were involved in the answers to be made.
The question objected to in the re-direct examination of John A. Scott was properly received; it was warranted by the cross-examination.
The defendant Hare was a farmer, and lived in Keeler, Yan Burén county, about twenty miles from Benton Harbor, and Billington, who is informed against for the same crime, about miles, at the time the offense is charged to have been committed. At the time the atrocious crime was being cpmmitted, according to the testimony of Billington, the defendant swears he was not in Benton Harbor at all, but- was on his way home in Keeler, and Billington was riding with him, so that the final result of the ease before.the jury depended almost entirely upon the veracity of the statement of the defendant. If that was believed, the defendant could not be convicted; if discredited, and that of Billington believed, he could not and ought not to escape conviction. Such being the fact, the People’s counsel made a strong effort to discredit the defendant, and great latitude was allowed the counsel in the extent and ground covered by the examination, and upon the cross-examination of Billington great vigilance characterized the efforts of the defendant’s counsel inlaying the ground for his impeachment. His • attention was challenged to a conversation about a horse trade claimed to have taken place between Billington and Dine on the 6th of October, in Dowagiac, for the purpose of identifying Billington’s and defendant’s whereabouts on that day, and the witness was asked if he did hot recollect the fact and conversation. Thereupon the court stated that he “ did not think the fact that he was in Dowagiac would be material, and could not have been contradicted, if it had not been that the People have seen fit to show where he was on that day. It is entirely immaterial.whether he talked about a wind-broken horse or not. It will not contradict anything he swears to.” This statement was excepted to by counsel for defendant. We think it went too far, and that the exception was well taken. The court permitted the testimony to be given, and it was not objected to. Whether it properly might have been given, it is not necessary now to consider. Certainly it was for the jury to say whether it contradicted anything Billington testified to or not.
When the respondent was giving his testimony his counsel sought to show that on Friday, the last day of the fair, and immediately after it closed, he made his preparations for going to his home in Keeler that night, and was asked what he said to witness Hyler about it, at a time when Billington’s .attention had been called to it. This was objected to by counsel for the People, and the court remarked, in making his ruling: “ Take it in this particular case, perhaps it would make no difference. * * * I don’t think it is legal and proper, and would be a bad precedent to cite. As far as this particular case is concerned, I don’t think it would make much odds. He would probably swear that he went away anyway.” We think these remarks were well calculated to give the jury an unfavorable impression of the defendant’s veracity, besides intimating very clearly the court’s view of the testimony admitted; This should not have been done, inadvertently as it was. We cannot say it did not prejudice the jury against the defendant. The defendant was also asked by his counsel what conversations were had between him and witnesses William Dine, Addison Parks, Mr. Felt, John Green, Mr., Geer, Mr. Limbeck, Herbert Crane, and Mr. Hyler, at those times to which Billing-ton’s attention had been called, for the purpose of contradicting Billington. ¥e think this should have been allowed for that purpose, and for the purpose of showing the respondent at a place on a certain time and occasion which would render it impossible for him to be in Benton Harbor, and have the alleged altercation with the deceased, McCrone, as sworn to by Billington.
Two points are made against the rulings of the court in striking out the testimony of Mrs. Lyon giving the reason why she knew that the person whose voice she heard in passing, swearing and talking, was Hare, and in not allowing her to answer the following question : “ You may state what was said,” — -first, that the testimony taken tended to impeach Billington ; and second, that the matter sought to be proved made certain the facts constituting the impeachment. The occasion was Friday evening, about the time Billington had testified Hare was having his altercation with McCrone in Benton Harbor which resulted in the latter’s death; and if Hare was away from there, and many miles distant from Benton Harbor, Billington’s testimony could not be true; and any fact or circumstance reasonably tending to show the degree of attention which Mrs. Lyon was giving to enable her to know that it was Hare who was passing, was' botli proper and important. It was the issue made by the testimony given by the defendant and Billington that became all important. It was really all there was to the case, and anything which would tend to make or fortify the testimony on either side was of the utmost importance, and should not have been rejected when offered; and the same rule applies, and should have been applied by the court, to the testimony of witnesses Yeadis, Thomas Adams and Mrs. Belle Hare, and the rulings made by the court in each case were erroneous.
There is no reason why rules governing and relied upon by prudent and intelligent men in the transaction of the most important business of life should not be applied and made to govern in courts of justice in the trial of causes where life has been taken, and is to be answered for, and the liberty of the accused is at stake. The basis of a rule of law or evidence cannot rightly be ignored in its application, which, I think, was done in this case by rejecting the testimony offered, above referred to. We have been more particular in calling attention to the particular instances in which we think there has been a departure from the rule of safety because of the necessity for a new trial in the case.
The court refused to allow defendant to show the fact that no information had been filed against Billington. Billington was a confessed confederate and an accomplice in the crime charged against McCrone. No conviction could have been had upon this record without his testimony, which shows him to be a man with little conscience, and less regard for truth, if the testimony of the other witnesses is to be believed. It was not only proper, but it was the duty of counsel for the prisoner to place before the jury all the circumstances surrounding the witness upon the stand, as well as any fact which would have any reasonable tendency to affect his credibility ; and the fact that he was not informed against for the crime he stood charged with, and that he was treated with the leniency usual in cases of informing accomplices who volunteer to give testimony against their confederates in crime, had its bearing upon his credibility, and we think the circuit judge erred in ruling otherwise.
The defendant’s fourth, fifth, sixth, and eighth requests to charge relate to the testimony of an accomplice, and its insufficiency, unsupported, to convict. We think these requests were all properly refused. They are not in accord with the rule of this State. “ The credibility of an accomplice, like that of any other witness, is exclusively a question for the jury ; and it is well settled that a jury may convict on such testimony alone,” uncorroborated, and it is not error for the court to refuse to charge the jury that it is not safe to convict a defendant on the uncorroborated testimony of an accomplice, or any number of accomplices. Neither can the court instruct the jury that they are bound to accept and credit testimony of an accomplice, either standing alone or uncorroborated. It is their province to determine whether he is to be credited at all, and if so, to what extent. 'There is nothing improper, however, and in many cases it is important that the court should comment upon the nature of such testimony as the circumstances may prompt, and point out the various grounds of suspicion which may attach to it, to call the jury’s attention to the situation and temptation under which such witnesses may he placed, and the motives by which they may be actuated, and any other circumstances which, in the nature of the situation, may go to confirm or discredit the witness ; but further than this the court should not go. People v. Jenness 5 Mich. 305; People v. Schweitzer 23 Mich. 301; People v. Annis 13 Mich. 511; Hamilton v. People 29 Mich. 173; People v. Lyons 49 Mich. 78; Knowles v. People 15 Mich. 408.
The defendant’s seventh request was sufficiently covered by'the charge of the court, and there was.no error committed in refusing to give the defendant’s fourteenth, fifteenth, twenty-second, twenty-third, twenty-sixth, twenty-seventh, twenty-eighth, and twenty-ninth requests. All that was proper in these to be given is found in the charge given by the court.
The defendant’s tenth, eleventh, 'twelfth, sixteenth, seventeenth, twenty-first, and twenty-fifth requests, we think, were supported by the evidence and the course pursued by the People upon the trial, and should have been given as requested. These requests will be found in tlie margin.
The time when Billington testified the crime was com mitted, he refers to a fact well known to others, and which -appears in the case, upon the testimony of others, and without controversy or dispute. It was before the closing of Collins’ saloon, and the People must be held bound by the testimony of Billington, because the only proof of the striking of the fatal blow by Hare is that given by their own witness, upon whose testimony the whole theory for conviction rests.
The charge given by the court upon the defense of 'the alibi in the case, we think, clearly indicates the necessity for giving the seventeenth request, and we see no impropriety in ■giving the twenty-fifth request. It is unquestionably the fact that a person frequently yields to the importunities of his associates, against his convictions of what he believes to be right, in his desire to come to an agreement in the case ; and especially is this the case with young and inexperienced jurors. Probably every practicing attorney has met with this experience at the bar to a greater or less extent. It is very seldom that the jurors, are sufficiently instructed by the trial judge upon this and other points that might be mentioned in the discharge of their duties, and if the court fails so to do upon his own motion in an important case like this, •where the parties are entitled to a verdict, the result of the ■careful and intelligent investigation and honest conviction of each of the twelve, we see nó reason why the defendant, by his counsel, should not ask the court in the charge to especially call their attention to the subject, and when so requested, it is the duty of the court to comply with the request, if made in good faith, as we have no doubt it was in this case.
"We have carefully examined all the alleged errors andl exceptions taken in this case, numbering about one hundred, and fifty, aimed at the various proceedings had therein, and have considered herein only such as were called to our attention upon the argument of counsel upon the hearing, and-which we find raises all the important questions. The case-presents many difficulties, and is peculiar in many of its-features and circumstances. It was closely tried at the-circuit by counsel, and while we have felt it our duty to disagree with many of the rulings of the circuit judge, the record shows much care and anxiety on his part to secure a correct result. The view we have taken of the case renders-a new trial necessary, and
The verdict must be set aside for that purpose.
Cooley, C. J. and Campbell, J. concurred.
(10) Inasmuch as the People rely for a conviction on the testimony of Billington, who professes to have been present at the place and saw the act done, and knows the place where, and the time when, it was done, and no other testimony appears as to the time and place, then the People are confined to the time and place which he mentions, and they are not at liberty to fix either another place or time ; which the court refused to give ; to which ruling the defendant by his counsel duly excepted.
(11) It is maintained by the defendant that Billington testifies that the killing was done before Collins’ saloon was closed on the night of October 5, 1888 ; that he knows so, because be was in the saloon, after the killing ; that he and Hare went from the canal, where they had put the body, and went into the saloon, which was yet open, with a dozen people therein, and that it still was open when they left it; which the court refused to give, and the defendant by his counsel then and there duly excepted. If you find that Billington has so testified here in this case, and that he puts the killing before Oollins’ saloon was closed, then I advise you that you cannot legally convict the defendant, unless you find ■that McCrone was in fact actually killed and dead before Collins’ saloon was closed ; which instruction and request' the court refused to give; to ■which ruling the defendant by his counsel duly excepted.
(12) I advise you that you ought not to convict the defendant if you believe that McCrone was alive after Collins’ saloon was closed for the night on October 5, 1883, — the night when it is claimed that McCrone ■was killed ; which thé court refused to give ; to which ruling the defendant by his counsel duly excepted.
(16) If you believe the testimony of Mrs. Lyon and the other witnesses who testify to having seen. Hare on the road from Benton Harbor to-Mrs. Sherman’s on Friday night, the fifth day of October last, then you ought to acquit the defendant; which request and instruction was refused by the court, saying, “ This part is covered by my direct charge to which refusal defendant duly excepted.
(17) The defense of an alibi, as it is called, is as legitimate a defense as any other defense. You are to give the same credit to witnesses who-testify concerning it as to those who testify to anything- else. [Covered-by balance of charge.] If you believe it to have been established, then-you are bound to acquit the defendant. The circuit judge refused to give to the jury such instruction, as requested ; to which refusal the defendant did then and there duly except.
(21) It is your duty to come to an entire agreement as to whether the-killing of McCrone was before Collins’ saloon was closed. You are not at liberty to convict the defendant, part of you. believing that he was killed before, and part of you believing that he was killed after, the saloon was closed. If you cannot all agree that McCrone was killed' before Collins’ saloon was closed, then you should acquit the respondent; which the court refused to give ; to which ruling the defendant by his counsel duly excepted.
(25) The jury are instructed that in their deliberating, if any one or more of their number, after consulting with their fellow jurymen, retains a reasonable doubt of the. defendant’s guilt, the jury should not find him guilty ; which instruction, so prayed for, the court refused to-give, saying, “I am not to charge individual members of the jury to which ruling the defendant by his counsel did duly except.. | [
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Kelly, J.
The city of Muskegon adopted an urban renewal plan and, to implement said plan, filed its petition for condemnation, including a parcel owned by defendants John D. and Esther H. Shamel.
A two-week trial ended in a jury verdict for plaintiff as to the question of necessity and an award of $20,500 damages in favor of defendants Shamel. Defendants filed their proposed taxed bill of costs which included an attorney’s fee of $1,250 and the city of Muskegon filed objections, citing the statutory limitation.
The trial court granted the requested attorney fee, stating:
“It is my opinion that this statute is an illegal and unlawful interference with the power of the court to assess reasonable costs, and further, that it is in direct violation of the rights of the defendant to receive just compensation for the taking of his property.”
The Court of Appeals reversed the trial court, holding (1) that no statutory authority existed for the court’s grant of $1,250 attorney fee and, according to our holding in Detroit Edison Company v. Janosz (1957), 350 Mich 606, such authority was necessary; and (2) that in a case involving the Michigan condemnation statutes the United States Supreme Court held:
“Attorneys’ fees and expenses are not embraced within just compensation for land taken by eminent domain.”
Defendants’ and appellants’ claim that the legislature lacks the power to regulate the amount of costs is not supported by cases in Michigan or any other jurisdiction. In fact, authority is to the contrary.
The Michigan legislature’s right to regulate the items and amounts allowable as costs was recognized and acknowledged in our promulgated court rules, GCB, 1963, 526.1.
Defendants and appellants, add an additional issue in their ¿ppeal to this Court, claiming the 1963 Constitution took away from the legislature its previous right to determine when, and as to what amount, the court could assess costs.
The 1908 Constitution, under article 13, entitled “Eminent Domain,” devoted five sections to this subject. The 1963 Constitution, under article 10, entitled “Property,” devoted one of its six sections, namely section 2, to eminent domain, as follows:
“Private property shall not be taken for public use without just compensation therefor being first made or secured in a manner prescribed by law. Compensation shall be determined in proceedings in a court of record.”
It is defendants’ contention that the last sentence, “Compensation shall be determined in proceedings in a court of record,” placed the entire question, including costs, in the hands of the court and took it away from the legislature.
A review, however, of the proceedings and reports of the constitutional convention which wrote the 1963 Constitution discloses no merit in this contention.
In third reading before the convention, Delegate Lawrence offered (2 Constitutional Convention Record (1961), p 3151):
“Mr. President and members of the convention, this amendment consists of 7 words, 7 words only, and it is designed solely for the purpose of protecting the people of the State in giving them the security of knowing that if their property is taken by eminent domain that they will be heard in a court. * * *
“It leaves the method of doing this entirely up to the legislature to do, but does give the people the right to know that they will have their property rights determined in a court rather than before a board or bureau.”
The convention clearly rejected any change in the meaning of “just compensation” or any expansion of the power of the court, other than insuring court supervision of condemnation proceedings.
We agree with the Court of Appeals’ conclusion that:
“Since no statutory authority exists for the taxation of the $1,250 attorney fee, the order of the circuit judge is reversed and the cause remanded for the entry of an order taxing $25 for the attorney fee.”
No costs, a constitutional question being involved.
Dethmers, C.J., and Souris, O’Hara, and Brennan, JJ., concurred with Kelly, J.
CL 1948, §213.37 (Stat Aim 1958 Rev §8.27) as follows: “Officers, jurors and witnesses in any proceeding under this act shall be entitled to receive from the petitioner the same fees and compensation as are provided by law for similar services in an ordinary action at law in the circuit courts, and it shall be lawful for the judge in any ease to order the payment by the petitioner to any respondent of such reasonable attorney fee as he may deem just, not exceeding $25, which may be taxed with the costs.”
2 Mich App 235.
Dohany v. Rogers (1930), 281 US 362, 368 (50 S Ct 299, 74 L ed 904, 68 ALR 434).
20 Am Jut 2d, Costs, §5, p8; 26 ALR 2d, Annotation: Attorney’s fees as -within statute imposing upon condemner liability for “expenses,” “costs,” and the like, pp 1295-1301.
Referring to proposed amendment “except in a court of record and” to be inserted after the word use in the first sentence of section 2 above quoted. | [
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T. M. Kavanagh, J.
This appeal involves the construction of the veterans’ homestead exemption provision of the general property tax act. The factual background is as follows:
Plaintiff-appellee is a veteran of World War II with a service-connected disability recognized by the United States Veterans’ Administration for which he receives compensation. He owns a two-fifths undivided interest in common in certain real estate in the city of Detroit. The remaining three-fifths interest is owned by his cotenant, Ruth C. Barnes, who purchased it with her separate funds. Ruth C. Barnes is plaintiff’s wife and they occupy the premises together as a homestead.
The assessed valuation of the entire premises is $13,630, and the valuation of plaintiff-appellee’s two-fifths interest is therefore $5,452, and that of his wife and cotenant’s interest is $8,178. Plaintiffappellee owns no other taxable property.
Plaintiff applied in turn to the board of assessors, the board of review and the State tax commission for separate assessment and exemption. Relief having been denied, he paid the taxes under protest and filed complaint in Wayne county circuit court against the city of Detroit, its treasurer and board of assessors. Later Wayne county and its treasurer were added as defendants.
Plaintiff’s complaint prayed that the board of assessors be required (1) to assess to him separately the value of his undivided interest in the real estate as tenant in common and (2) to allow him against that assessment the $2,000 exemption granted by CLS 1961, § 211.7, subd 11(c) (Stat Ann 1961 Cum Supp § 7.7, subd 11 [c]) with respect to real estate owned and used as a homestead by a disabled veteran. He also sought judgment against the respective defendants for refund of $88.94 paid to the city and $14.27 paid to the county, those being the amounts by which the respective taxes would have been reduced had the claimed exemption been allowed against the assessment of December 31, 1962.
Plaintiff filed a motion for summary judgment, and defendants filed a motion to dismiss the complaint. The circuit judge denied the former and granted the motion to dismiss.
Plaintiff appealed to the Court of Appeals and that Court reversed the circuit court in a well-reasoned opinion reported in 1 Mich App 299. It concluded the plaintiff was entitled to-the exemption.
Defendants appealed to this Court.
Justice O’Hara, writing for reversal of the Court of Appeals, states:
“However, the precise point here involves not a question of the nature of estates in land. Before Judge "Wise could construe the involved subsection of the applicable statute and apply the controlling case law and the opinion of the attorney general, he, of necessity, had to make an essential primary determination from the pleadings and exhibits.”
Circuit Judge Wise found as follows:
“In this case, it is obvious that there has been no partition in fact. Plaintiff and his wife occupy and share the residence in question as their homestead. Since the incidents of ownerships are not separated, the total value of the property must be considered.” (Emphasis supplied.)
Justice O’Hara concluded:
“This determination was not contradicted by anything in the record before the court at the time he granted and denied the respective motions.”
The circuit, judge relied upon an attorney general’s opinion, No 3392, rendered April 10, 1959, and the cases therein cited, for the principle that only when there has been a partition in fact restricting ownership • and control to a particular part of the total property can a tenant in common base his claim of exemption upon the value of that aliquot part rather than on the value of the whole property. He concluded there had been no partition in fact in this case and therefore plaintiff was not entitled to the homestead exemption on the two-fifths tenancy in common interest in the property. The circuit court disregarded an earlier opinion of the attorney general, No 354, given in May, 1947, holding directly to the contrary.
For reasons detailed hereafter, we conclude the circuit court erred in following the 1959 attorney general’s opinion.
The authorities cited in the 1959 attorney general’s opinion in support of the conclusion reached are: Tharp v. Allen, 46 Mich 389; Cleaver v. Bigelow, 61 Mich 47; and Hooper v. McAllister, 115 Mich 174. None of these cases supports the position taken by the attorney general.
The Tharp v. Allen case merely holds the wife of a lessee cannot claim a homestead so as to be a necessary party to an action of ejectment. Mrs. Allen, defendant, claimed a homestead right in her husband’s interest. Her husband John during his lifetime went upon land owned by his father and occupied a dwelling which had been erected on the land by them jointly, John paying rent some years and other years not paying, and the father paying taxes and cutting timber from the land. During John’s occupancy he put up some outbuildings and made some other improvements. There was no agreement made about the buildings. After the father’s death, John paid rent to the administrator and subsequently sold his interest in the whole estate as a tenant in common to' plaintiff. Partition was made in probate court, plaintiff getting his interest. Defendant, wife of John, did not sign her husband’s deed and did not leave the premises when he did. The action of ejectment was brought and the question was: Did she have a homestead interest with her husband which required her to join in the deed? The Court held that John Allen neither took nor held possession under any express or implied claim which would create a homestead interest. He went on the land as his father’s tenant and even as such tenant his occupancy was concurrent with his father’s exercise of acts of ownership involving entry on the land and removal of timber. No change of kind or character of tenancy was made after the father’s death, but he continued to pay rent to the representative of the estate. He claimed no separate ownership in this parcel as distinct from the rest of the inheritance, and never undertook as heir to assert any sole possession, but did directly the contrary. The wife of lessee consequently could claim no homestead.
Cleaver v. Bigelow, supra, is another ejectment case. There the Court held that the action of ejectment is a possessory one and whether the husband and wife owned the land in question in fee or otherwise, they were equally interested in the homestead, which involves the question of possession, and therefore the wife of a tenant in common claiming a homestead is a necessary party to an action of ejectment.
The third case, Hooper v. McAllister, 115 Mich 171, held that a wife’s signature is not 'required to enable a tenant in common to execute a valid mortgage where no homestead is claimed or could be claimed by the husband, and that all the wife had was her inchoate dower interest. The Court concluded it was apparent she had no homestead right in the premises which could be enforced.
The 1959 attorney general’s opinion, relying upon these cases, goes on to hold that the foregoing opinions must be limited in their application to cases where the tenancy in common had been partitioned in fact, and concludes:
“In other words, only when a tenant in common does, in fact, restrict ownership and control to a particular part of the total property can he base his claim of exemption upon the value of that aliquot part rather than on the value of the whole property. Where the tenant in common does not so restrict his control but instead practices the usual incidents of ownership over the whole property, the total value of the property must be included in the aggregate of such tenant’s taxable property. Legal effects flow from the actual practice of ownership as it relates to the property, not from the legal characterization of the tenure.”
The eleventh subdivision of said section 7 of the general property tax act, as amended, exempts:
“Eleventh, * * * (c) All real estate to the value of $2,000 used and owned as a homestead by any soldier or sailor of the Federal government * * * and who has a service or nonservice connected disability.” (Emphasis supplied.)
. It is undisputed that plaintiff-appellee qualifies as a disabled veteran and that he owns an undivided two-fifths interest in common in the realty involved and the residence thereon. It is to be noted the statute uses the phrase “used and owned• as a homestead.” No mention of control is made in the statute, as was the case in the 1959 attorney general’s opinion.
This Court has many times held that a person does not have to own property in fee simple to claim a homestead. The word “owner” as used in the law has generally been treated as including all parties who had a claim or interest in the property, although the same might be an undivided one or fall short of an absolute ownership, and possession alone has frequently been held, in reference to personal property, as prima facie evidence of ownership.
In the ease of Lozo v. Sutherland, 38 Mich 168, reference is made to the cases of McKee v. Wilcox, 11 Mich 358, and Orr v. Shraft, 22 Mich 260, as settling the question that an absolnte estate in fee-simple is not required, this Court holding that a homestead might be claimed in lands held in common with others.
This rule has been followed in many cases by this Court since the decision in Lozo v. Sutherland. See King v. Welborn, 83 Mich 195, and cases therein cited.
The statutory exemption applies to the real estate itself when it is the residence of the veteran. The provision limiting the exemption, however, is not phrased in terms of the value of the real estate, but is expressed in terms of the value of the property owned by the person claiming the exemption. The two-fifths property interest owned by this veteran did not exceed the maximum limitation.
As was said by the Court of Appeals, “It cannot be said that a tenant in common owns the whole property.” It cites as authority People, ex rel. Holbrook, v. Treasurer of Detroit, 8 Mich 14, 16 (77 Am Dec 433), which holds:
“An undivided interest is just as much a separate estate as a divided one, and the law so regards it.”
This Court held in City of Detroit v. State Tax Commission, 369 Mich 508, in a unanimous opinion, that the hoard of assessors may not refuse, when requested, separate assessments to individual owners without legal justification.
We conclude that plaintiff is entitled to the benefit of the veteran’s exemption and to the separate assessment. We affirm the decision of the Court of Appeals.
Plaintiff shall have costs.
Kelly, Black, Souris, and Adams, JJ., concurred with T. M. Kavanagh, J.
CLS 1961, §211.7, subd 11 (Stat Ann 1961 Cum Supp, §7.7, subd 11).
1 OAG 1959-1960, p 77. — Reporter.
OAG 1947-1948, p 311. — Reporter.
“If any homestead as defined in this eleventh subdivision shall exceed in value the sum of $2,000, it shall be exempt only to the amount of such sum.
“The exemptions set forth in this eleventh subdivision shall not operate to relieve from taxation any person who is the owner of taxable property, both real and personal, of greater value than $7,500.” CLS 1961, § 211.7, subd 11 (i) (Stat Ann 1961 Cum Supp § 7.7, subd 11[i]), (Emphasis supplied.) | [
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O’Hara, J.
Leave was granted in this case to appeal an order of the Court of Appeals. The order affirmed the grant of summary judgment in the Ingham county circuit court. We affirm.
The litigation is in the nature of a suit for declaratory judgment against some 13 defendants. The plaintiff-appellant is the commissioner of the corporation and securities commission. Thirteen corporations were named as defendants. Decision in this case is limited to Detroit Edison Company, appellee herein.
Appellee’s legal posture is distinguishable from the other named defendants in that it is a public utility and thus subject to accounting procedures prescribed by the Michigan public service commission. It is further distinguishable by reason of prior litigation which reached this Court and was decided by a 3-2 vote, 3 Justices not participating.
The subject matter of this suit is the annual franchise fee of appellee corporation for the years 1957, and 1959 through 1966, both inclusive. The franchise fee for 1958 was the vehicle for the determination of appellee’s legal rights in the prior action. The question here presented is the extent to which the decision of this Court in Detroit Edison Com pany v. Corporation & Securities Commission, 367 Mich 104, renders the issues in the suit against 13 corporations instituted February 10, 1964, res judicata as to this defendant-appellee.
It is of little worth to bench and bar to recite again a long and detailed factual background. In simple substance, the issue is whether amounts designated “reserve for deferred Federal income taxes” can be included in this corporation’s “surplus” for the computation of its annual franchise fee. The fee is computed by multiplying the corporation’s paid-up capital and surplus by the statutory millage rate (at the time involved in the prior case, 4 mills).
Originally, appellee included the reserve item above mentioned in its surplus. The Michigan public service commission by an order which is set out in the Court of Appeals opinion, provided in part:
“ ‘The current Federal income tax reductions of the Detroit Edison Company resulting from such special amortization are subject to liability for the larger future Federal income taxes * * * and are not available for addition to surplus.’ ” (Emphasis supplied.)
Obediently, appellee omitted the item from its “surplus.” The corporation and securities commission, however, did not deem itself bound by this determination. It withheld the requisite authority of appellee to exercise its corporate rights and. privileges in this State, for failure to include the reserve in surplus.
The Ingham county circuit court in granting the summary judgment followed the holding in Detroit Edison Company v. Corporation & Securities Commission, 367 Mich 104. The Court of Appeals affirmed.
We rest our decision in this case on the doctrine' of estoppel by judgment. We quote with approval the statement and supporting authority therefor in the reply brief of appellee:
“It is the prior adjudication (judgment) between the same parties on this same question which binds the parties.
“‘2 Freeman on Judgments (5th ed), § 708, pp 1494-1496, discusses this question as follows:
“ ‘ “Estoppel includes both law and fact. — The estoppel of a judgment is not confined to matters purely of fact or of mixed law and fact, but extends to a decision of the legal rights of the parties on a state of facts common to both suits, although the causes of action are different. ‘The claim that a mere conclusion of law announced by one court with reference to a matter before it is not binding in a subsequent suit between the same parties involving the same matter is plausible only under a superficial conception of the principle of res judicata. It is not the finding of facts which constitutes an adjudication, but it is the conclusion of the court as to the effect of those facts determined as matter of law. It is the determination of the issues presented which constitutes the adjudication. That determination may consist principally of findings of fact which lead to the result reached on rules of law which are not disputed as between the parties, or it may consist of conclusions as to disputed questions of law as 'applied to facts about which there is no controversy leading to the result announced. Every judgment necessarily involves the application of principles of law to the facts of the case. The dispute between the parties may he as to the facts, or as to the law, or as to both, but the judgment is conclusive as to the entire matter involved, that is, as to the case pre-¡ sented, and not simply as to the particular question ill regard to which the parties are in controversy.’ Where the causes of action are the same the judgment is conclusive as to every matter of law or fact involved in the claim whether urged or not.
“ ‘ “An adjudication in a proceeding appropriate for that purpose, such as a taxpayer’s suit, as to the validity of municipal bonds, is conclusive that the city has the legal right to incur a debt of the amount and for the purpose indicated, that the assent ,of the qualified voters has been obtained as required by law, and as to all other questions which the constitution and laws require to be determined before authority is conferred on a municipality to incur a debt. So a judgment against a municipal corporation and a writ of mandamus directing the levy of a tax to satisfy it conclusively determines that the levy is not in excess of the limits imposed by statute.” ’ ” (Citation and footnotes omitted.)
We would make abidingly clear that absent an express overruling of Detroit Edison Company v. Corporation & Securities Commission, supra, it is binding precedent as to issue decided therein, namely, the reserve for deferred Federal income taxes is not includible in this corporation’s surplus for the computation of its annual franchise fee. Nor should it be necessary for appellee to seek our writ of superintending control to enforce the holding. We have reviewed appellant’s plethora of authority and the rationale of his argument seeking to include appellee within the ambit of whatever decision may ultimately result in the cases of other named defendants in the instant suit and find it inapposite. As to any other party individually or the balance of the parties collectively, we express no opinion.
The order of the Court of Appeals affirming the order for summary judgment of the circuit court for Ingham county is affirmed.
Under the circumstances of this case, appellee is authorized to tax the costs of all courts.
Dethmers, C. J., and Kelly, T. M. Kavanagh, Souris, Adams, and Brennan, JJ., concurred with O’Hara, J.
Corporation & Securities Commission v. American Motors Corporation (Appeal re Detroit Edison Company), 4 Mich App 65. — Reporter.
PA 1921, No 85, § 4, as amended by PA 1954, No 144 (CLS 1956, § 450.304 [Stat Ann 1959 Cum Supp .§ 21.205]). Currently PA 1963, No 63, § 4 (Stat Ann 1965 Cum Supp § 21.205).
4 Mich App 65, 67. | [
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Brennan, J.
Plaintiff was paid unemployment compensation benefits of $45 per week for 14 weeks from September 7,1963, through December 14, 1963. The total amount was $630.
In February, 1964, plaintiff received a workmen’s compensation award of $45 per week, beginning as of August 31,1962, aud embracing the same 14-week period for which plaintiff was paid unemployment compensation.
On February 17, 1964, the Michigan employment security commission issued a redetermination, by which it was ordered that plaintiff was not entitled to the unemployment benefits he had received, and which ordered plaintiff to make restitution thereof to the commission in accordance with section 62(c) of the employment security act. PA 1965, No 281, amending CL 1948, § 421.62(e) (Stat Ann 1965 Cum Supp § 17.566 [c]).
On February 18, 1964, an appeal was taken from this redetermination, and a hearing on this appeal was had before a referee on March 5, 1964.
On April 20, 1964, the referee filed and served his decision, holding as follows:
“The redetermination of the commission issued on February 17, 1964, is hereby modified. It is held that the claimant was not entitled to the benefits received for the period from September 8, 1963, through December 15, 1963, in the amount of $630 and is required to make restitution in that amount under section 62(a) of the act. It is further held that the referee is without jurisdiction to authorize the commission to reimburse the claimant for attorney fees expended.
“(s) Mortimer S. Snow,
Referee.”
The decision of the referee was affirmed by action of the appeal board on July 8, 1964.
Thereafter, appeals were taken to the circuit court and the Court of Appeals, and each in turn has affirmed the action of the referee and the appeal board.
In none of these proceedings has the plaintiff challenged the legality or constitutionality of the re-determination in toto. Plaintiff merely urged that attorney fees and expenses incurred in the work men’s compensation proceedings should be deducted from any restitution of unemployment compensation benefits.
The courts below, the commission and the referee all applied section 27n of the Michigan employment security act to these facts and thus arrived at the result which has been outlined.
Section 27n of the act has been declared unconstitutional by this Court. See Fox v. Employment Security Commission, 379 Mich 579.
Therefore, the determination of February 17, 1964, from which this appeal was taken was in error. Plaintiff should not have been required to return any part of the $630.
While the constitutionality of the act has not been argued here, Fox is controlling, and this Court has authority under GCR 1963, 865.1(7) to make an appropriate disposition of this case of Shaw.
Reversed, with costs to the appellant.
Black, T. M. Kavanagh, Souris, O’Hara, and Adams, JJ., concurred with Brennan, J.
PA 1936 (Ex Sess), No 1, § 27n, as added by PA 1963, No 188 (CL 1948, § 421.27n [Stat Ann 1963 Cum Supp § 17.529(1)]). Section 27n was repealed by PA 1965, No 281, but the same act reenacted substantially the same language as subd (m) of section 27 of the employment security act (CL 1948, § 421.27 [Stat Ann 1965 Cum Supp § 17.529]). | [
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Adams, J.
On September 28,1962, Clara Williams gave a warranty deed to Sun Oil Company by which she conveyed to that company two lots. Contained in her deed is the following agreement:
“Grantor agrees that property now owned-by grantor lying north of and adjacent to' the" within described premises shall not be used for or in connection with the operation of a gasoline service station or filling station for the sale of gasoline, motor fuel, petroleum products, automotive accessories or automotive services generally.” (Emphasis added.)
On February 1, 1964, Clara Williams executed a land contract to defendant, Trent Auto Wash, Inc. It is admitted that the land contract covered ‘‘that property now owned by grantor lying north of and adjacent to” the lots Clara Williams conveyed to Sun Oil Company. The defendant also “admits that it had knowledge of the alleged covenant; that plaintiff’s agents informed it that plaintiff would attempt to enforce said covenant, and that defendant intends to construct underground storage tanks and above ground pumps,” et cetera.
It is unnecessary to determine whether the above agreement is a covenant running with the land to afford plaintiff the relief it seeks. The agreement relates to the property purchased by Trent Auto Wash and it is equally clear that it was intended for the benefit of the adjacent property of Sun Oil Company. The agreement does not relate to any activities on the part of Clara Williams, but, rather, contemplates a restriction upon the use of property retained by her. Whatever she could not do, chancery may also enjoin those in privity with her and with notice of the restriction from doing.
The principle is stated by the Lord Chancellor in the case of Tulk v. Moxhay (1848), 2 Ph 774 (41 Eng Rep 1143), affirming 11 Beav 571 (50 Eng Rep 937):
“The question does not depend upon whether the covenant runs with the land * * * if there was a mere agreement and no covenant, this court would enforce it against the party purchasing with notice of it; for if an equity is attached to the property by the owner, no one purchasing with notice of that equity can stand in a different situation from the party from whom he purchased.”
The principle of Tulk has been widely recognized and followed in numerous cases. In the case of Langenback v. Mays (1950), 207 Ga 156 (60 SE2d 240), the defendants sold to plaintiffs a small tract of land on which several tourist cabins were located, and orally agreed not to nse their remaining land for a tourist camp. The defendants constructed a tourist camp in violation of their contract and, when enjoined from operating it, executed an instrument purporting to he a lease to their daughter for the tourist camp. The daughter operated the business with actual knowledge of the injunction granted against her parents. The supreme court of Georgia’s opinion states:
“Equity will enforce a lawful restrictive agreement concerning land against a person who takes with notice of the contract. In such a case, the person violating the agreement, though not a party to it, is a privy in conscience with the maker. 31 Yale Law Jour 127, 131; Francisco v. Smith, 143 NY 488 (38 NE 980); Rosen v. Wolff, 152 Ga 578 (110 SE 877).”
In the case of Thodos v. Shirk (1956), 248 Iowa 172 (79 NW2d 733), plaintiff, owner of certain lots in a subdivision, brought an action in equity asking that defendants be enjoined from using their property as a trailer court in violation of the restrictive covenant in their deed which provided: “No building shall be placed or erected on said premises except for residence purposes.” The court in discussing the doctrine of equitable servitudes said (p 179):
“Since the doctrine of equitable servitudes rests upon the theory of a servitude imposed upon the land, enforceable against all subsequent purchasers of the land who are charged with notice actual or constructive, the requirement of the special words such as ‘and assigns’ is unnecessary in the deed. The sole test for the running of the burden in equity is the intention of the parties to impose a servitude upon the land as distinguished from a personal promise of the present owner.”
In Hodge v. Sloan (1887), 107 NY 244 (17 NE 335), a grantee bound bimself by a covenant in his deed to limit the use of land purchased so as not to interfere with the trade or business of the grantor and the property was subsequently sold to defendant without covenant on his part but with notice of the covenant in the deed to his grantor. The court said (p 250):
“There seems no reason why he and his grantee, taking title with notice of the restriction, should not be equally bound. The contract was good between the original parties, and it should in equity at least bind whoever takes title with notice of such covenant. By reason of it the vendor received less for his land, and the plain and expressed intention of the parties would be defeated if the covenant could not be enforced as well against a purchaser with notice, as against the original covenantor. In order to uphold the liability of the successor in title, it is not necessary that the covenant should be one technically attaching to and concerning the land and so running with the title. It is enough that a purchaser has notice of it.”
In the case of Coomes v. Aero Theatre and Shopping Center, Inc. (1955), 207 Md 432 (114 A2d 631), the complainant and his grantee intended that land should be restricted to uses not in conflict with the use of complainant’s remaining land. The restrictive covenant read:
“Subject also the further restriction that the grantees or their tenants therein will not engage "in any business which shall compete with or be of a similar nature of those businesses conducted and maintained on the property known as the Aero Theatre and Shopping Center, Inc.”
Defendants, who took from plaintiff’s grantee, had notice of the restriction at time of conveyance. The restriction was held binding on them. The court, said (p 437):
“We reaffirm the doctrine [the doctrine of Tulk] that if the owner of land enters into a covenant, concerning its use, subjecting it to an easement- or personal servitude, and the land is afterwards conveyed to one who has notice of the covenant, the grantee will take the land bound by the covenant and will be compelled in equity to specifically execute it or will be restrained from violating it; and it makes no difference, with respect to this liability in equity, whether or not the covenant is one which runs with the land. Thruston v. Minke, 32 Md 487, 494; Halle v. Newbold, 69 Md 265, 270 (14 A 662); Newbold v. Peabody Heights Co., 70 Md 493 (17 A 372, 3 LRA 579); Peabody Heights Co. of Baltimore City v. Willson, 82 Md 186 (32 A 386, 1077, 36 LRA 393); Clem v. Valentine, 155 Md 19 (141 A 710); Turner v. Brocato, 206 Md 336 (111 A 2d 855); 2 Pomeroy, Equity Jurisprudence (5th ed), § 689. * * *
“'While most courts have accepted the theory that restrictive agreements should be enforced as an easement or servitude, Mr. Tiffany took the view that the more satisfactory theory is that equity regards such an agreement as vesting in the promisee a right to specific enforcement by means of an injunction or otherwise, not only as against the original promisor, but also as against a subsequent holder of the property, if not a purchaser for value without notice. He argued that if the right to equitable relief could not thus be asserted as against a subsequent holder of the property, the result would be that the promisee could be deprived of such right, in practically every case, by a collusive transfer on the part of the. promisor. 3 Tiffany,' Re.al Property (3d Ed), § 861. * * *
' “It is understood, however, that it is not necessary that the expression of intention shall take any particular form. Of course, if the promise purports to bind successors by the use of such words as ‘sue cessors’ or ‘assigns’, little question can arise as to the existence of the necessary intention. But as the language employed becomes less plain and precise, the conclusion that the successors were intended to be bound must rest in a correspondingly greater degree upon an inference drawn from the circumstances under which the promise was made. The circumstances of a particular transaction may yield such an inference without the aid of any specific language in the terms of the promise.”
For further annotated statements of the equitable doctrine, see Pomeroy’s Equity Jurisprudence (5th ed), §§ 689 and 1295; Tiffany, Real Property (3d ed), § 859; Thompson on Real Property (1962 Replacement), § 3170; 20 Am Jur 2d, Covenants, Conditions, and Restrictions, § 26; 23 ALR2d p 520 et seq.
The agreement between Clara Williams and Sun Oil Company is not so ambiguous as to be incapable of enforcement against those who have taken with notice of it. The commitment is that “that property * * * shall not be used for or in connection with the operation of a gasoline service station.” There is nothing personal as to Mrs. Williams in this language. It clearly refers to the land. While the time of the commitment is not expressed, this is no insuperable obstacle. Courts are quite accustomed to making determinations of what is a reasonable time in terms of the presumed intent of the parties. Finally, if the agreement is not enforced by equity, it becomes completely vitiated. Obviously, plaintiff has no adequate remedy at law. If equity cannot grant relief, a covenantor need only convey the land to destroy today the covenant he made yesterday — or, as in Mrs. Williams’ case, the covenant made by her a short 16 months before her conveyance to defendant,
Both the trial judge and the Court of Appeals-disposed of this matter by holding that the covenant or agreement of the parties ran with the land, a. determination I do not regard, as necessary for disposition of this case. The chancellor also recog-; nized the equitable doctrine as being applicable if the covenant did not run with the land. I would remand to him for such hearing as may be required to apply that doctrine. Determination of possible-.questions such as a change in circumstances relating to the lands in question may be necessary. Other aspects of the transaction not presently before may bear upon the equities of the parties. This is a traditional equity action which does not lend itself to summary disposition. Upon the conclusion of a full hearing, the chancellor will be in a position to shape a proper decree.
I agree that the covenant does not violate CL 1948, § 750.151 (Stat Ann 1962 Rev § 28.348).
I would remand, with costs to abide final result.
Kelly, Black, and T. M. Kavanagh, JJ., concurred with Adams, J. | [
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Souris, J.
This appeal is from a judgment of dismissal of defendant’s counterclaim for its failure to state a cause of action. According to the recitals thereof the judgment was entered on plaintiffs’ motion pursuant to GCR 1963, 117.2(1), immediately after counsel’s opening statement on the counterclaim. The Court of Appeals affirmed the judgment. 3 Mich App 101. We reverse and remand for further proceedings.
Plaintiffs’ complaint for damages for defendant’s alleged breach of certain real and personal property leases was withdrawn, apparently by consent .of all parties and of the circuit judge, several months before the case was called for trial on defendant’s counterclaim. The counterclaim sought, in a single confusing count, rescission or cancellation of the leases and certain contemporaneously executed deeds, hills of sale, and assignments or, alternatively, their treatment as an equitable mortgage of all of the property involved and, as well, damages for- the allegedly unlawful ouster of the cross-plaintiff from possession of the property. The opinion of' the Court of Appeals quotes a portion only of the counterclaim. The balance is quoted in the margin of this opinion. The answer to the counterclaim denied its allegations of fraud, unconscionable dealing and unjust enrichment and alleged that the transaction, was intended to be an outright sale and lease-back by cross-plaintiff of all of its property in precisely the manner disclosed by the written instruments executed by the parties.
One of many exceptions to the parol evidence rule is that parol evidence may be admitted to prove that a written conveyance absolute in its terms was intended by the parties to operate only as a mortgage. Wadsworth v. Loranger, Harr (Mich) 113; Fuller v. Parrish (1854), 3 Mich 211; Batty v. Snook (1858), 5 Mich 231; Emerson v. Atwater (1859), 7 Mich 12; and, of more recent vintage, Selik v. Goldman Realty Co. (1927), 240 Mich 612, and Ellis v. Wayne Real Estate Company (1959), 357 Mich 115. For citation and discussion of authority imposing a heavy burden of proof upon one who invokes this equitable doctrine, see Schmidt v. Barclay (1910), 161 Mich 1 (20 Ann Cas 1194). While fraud or mistake are essential elements of a cause of action for reformation, rescission or cancellation of a written conveyance, see River Rouge Bank v. Fisher (1964), 372 Mich 558, 562, and Smith v. Taber (1961), 362 Mich 619, they are not essential to a cause seeking to establish that a conveyance absolute in form is in fact a mortgage. Mr. Justice Manning, in Emerson v. Atwater, supra, stated the equitable principles governing this class of cases as follows:
“The principle on which courts of equity proceed in this class of cases, is not that it is in contemplation of law a fraud for A, who has made a parol agreement to sell B a piece of land, to refuse to deed the land, or to live up to his parol agreement. It would be as clear a violation of the statute of frauds in a court of equity to decree a specific performance of such contract, as it would in a court of law to sustain an action on it for damages.. It is upon no supposed fraud of this kind that equity bases its action. It proceeds on a different principle, viz.: The relation between the parties of debtor and creditor, or borrower and lender, and the abuse of that relation. The statute of frauds was intended for persons dealing with each other at arm’s length, and on an equal footing; and, even then, when the contract has subsequently been in part performed by one party, with the assent of the other, equity will compel the latter to perform on his part, as it would be a fraud on the statute for a party to invoke its protection under such circumstances.
“Courts of equity frequently set aside deeds and other contracts between trustee and cestui que trust, attorney and client, guardian and ward, and parent .and child, and other like cases, when it has reason for believing the relation between the parties has been abused, when such deed or contract, had it been between parties not so related, would have been held good. The principle the court goes on in cases of debtor and creditor, is the same as in the cases we have just mentioned. The difference is in its application only. In these last cases it is to prevent the abuse of a confidence which the relation implies. In the case of debtor and creditor, the abuse of the power of coercion which a creditor sometimes, by the force of circumstances, has over the debtor. So sensible are courts of the existence of this power, and of its abuse, and that debtor and creditor do not at all times stand on an equal footing, that the borrower, says Judge Story, ‘has been significantly called the slave of the lender:’ 1 Story’s Equity Jurisprudence (6th ed), § 302, p 335. And Judge Green, in Fuller v. Parrish, says: ‘Mortgages, and conveyances intended to operate as mortgages, are generally given by the necessitous to the more opulent, the debtor to the creditor, the borrower to the lender, the suppliant for favor to him who has power to make the terms upon which it shall be granted. The man whose property is about to be sacrificed by a creditor, will not hesitate in regard to the amount of security to be given, nor the manner of giving it, if he can loan the money to satisfy the debt, or otherwise gain time for its payment. He will not hesitate to execute a deed, or bill of sale, absolute upon the face of it, but intended to operate as a mortgage, to four times the value of the loan, without insisting upon a written deed of defeasance:’ 3 Mich 211, 217.
“Courts of equity have, from an early day, interfered between creditor and debtor to prevent oppression. What is now a mortgage, was at common law, and until courts of equity interfered, a conditional conveyance of land, that became absolute on the nonperformance of the condition by the grantor, on or before the day mentioned in the deed. The penalty of a bond was collectible at law, until equity restrained its collection, on the payment of what Aims due on the condition. When the relation is mortgagor and mortgagee, once a mortgage always a mortgage, is the maxim in equity. See 2 Leading-Cases in Equity, pt 2, p 432, where may be found a large collection of cases in which deeds have been declared to be mortgages.
“Honesty and fair dealing, and the good of society, require that the cupidity of man should be kept' Avithin certain limits, and not be alloAved to roam at large. To define and fix these limits, and give relief Avhen théy are transcended, has ever been the province of courts of equity, and their chief excellence consists in a wise and judicious exercise of this part of their jurisdiction. Neither the statute of frauds, nor the statute requiring powers and trusts to be created in writing, is, we think, encroached on, by a court of equity exercising its jurisdiction in this class of cases, as it was wont to do before these statutes Avere passed. A different construction of the statutes Avould make them what they were never intended to be, a' shield for the protection of oppression and fraud.” Emerson v. Atwater (1859), 7 Mich 12, 24-26.
■ We conclude from the foregoing that cross-plaintiff’s counterclaim, and, as well, its counsel’s opening statement, stated a cause of action which it was entitled to submit for judgment on the merits. Dismissal for failure to state a cause of action, therefore, was error requiring reversal of the judgment and remand for further proceedings.
Because this matter must be remanded, it may not be amiss to note that Ferd Alpert’s statements to Chester Chapie, set forth in paragraph 5 of the counterclaim, see 3 Mich App 101, 106, upon which statements cross-plaintiff predicates its allegation of fraud, are not, even if untrue, such, that they would support a finding of fraud. See Roy Annett, Inc., v. Kerezsy (1953), 336 Mich 169, 172, and Lisowek v. Bagozzi (1958), 354 Mich 398, 402. However, such statements, if proved, might have probative value in determining whether the parties intended the transaction to be an absolute conveyance and lease-back or an equitable mortgage.
Reversed and remanded to the circuit court for further proceedings. Cross-plaintiff may tax its costs.
Dethmers, C. J., and Kelly, Black, T. M. Kavanagh, O’Hara, Adams, and Brennan, JJ., concurred.
“9. That through the fraud, over-reaehing and misrepresentation of the plaintiffs as aforesaid, they have carried into effect a scheme, design and conspiracy to denude the defendant of assets, which it here alleges to be of a value greatly in excess of $300,000 which, if not rescinded and set aside hy the judgment of this court, will unjustly enrich the plaintiffs and will result in the financial ruin of the defendant; that, in equity and good conscience, the transaction between' the parties as set forth aforesaid should be abrogated and the parties restored to the positions they respectively occupied prior to said transaction having been forced upon the defendant by the fraud and scheming of the plaintiffs; that the defendant offers to do equity and to restore the plaintiffs to their former position, and that it stands ready to pay to the plaintiffs or to the clerk of this eourt an amount equal to that expended by the plaintiffs, together with any interest and reasonable costs and charges incurred by them as the eourt may determine upon the trial of this cause. ’
“10. That the representations of plaintiffs up to consummation of the transaction led defendant to believe it would be refinanced; and at the time of the said transaction, when on its face it appeared that a sale was to be effected, the intention of the defendant was to be refinanced and the words and assurances of the plaintiffs were of such nature as to lead the defendant to believe that what appeared to be'a sale would be honored by plaintiffs in the same manner and effect as a mortgage.'
“11. That plaintiffs ousted defendant from the subject premises at a time when defendant was commencing its busy season, during which defendant’s business derives the greater percentage of its yearly profits; and that such wrongful aetion, upon a lease obtained by the fraud and scheming of the plaintiffs, has caused damage to defendant in the amount of $350,000. • '
“Wherefore the defendant prays:
“a. That the eourt treat the transaction aforesaid, as null and void, and that the said assignments, deeds, agreements and leases be set aside, -rescinded and held for naught;
“b. That the parties be restored to the positions they respectively occupied prior to said transaction having been entered into;
“a. That the court treat the transaction as a mortgage rather than a sale and that defendant be permitted to redeem.
“d. That defendant have a judgment against the plaintiffs for its damages in the sum of $350,000 and.costs.
“e. That the court grant other relief in the premises as to the court shall seem reasonable, just and equitable.”
Justice Manning served as Michigan’s Chancellor from 1842 to 1847. Mr. Justice Cooley, in Ms preface to the second edition of Harrington’s reports of the Court of Chancery, pp viii to ix, in 1872, bestowed the following high praise, posthumously, upon Chancellor Manning:
“Chancellor Manning was thoroughly familiar with equity law, and fully imbued with the spirit of its principles; and his disposition to insist upon correct practice was well understood, and had an important influence in educating a good chancery bar. When that clear-headed, upright and conscientious judge withdrew from the beneh, and when his temporary successor followed-him, the excellent and uniform chancery practice which had grown up soon fell into a disorder from which it has never recovered.” | [
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Adams, J.
Willis Hier was employed as a heavy-equipment operator for defendant Boichot Concrete Products Corporation. On November 11, 1954, a winch handle struck him on the right side of the head and shoulder. He received compound fractures of the skull and other injuries. Workmen’s compensation benefits were paid, but terminated at the expiration of 500 weeks from the date of injury. Plaintiff then filed an application for hearing, claiming additional weekly benefits for a total of 800 weeks because the injury had resulted in permanent and total disability. The hearing referee allowed Hier’s claim for additional benefits; but, upon appeal to the workmen’s compensation appeal board, the decision of the' referee awarding further compensation was reversed on the ground that this Court’s ruling in Verberg v. Simplicity Pattern Company (1959), 357 Mich 636, limits recovery beyond 500 weeks from the date of injury to those employees whose injuries fall within the definition of total and permanent disability under section 10, part 2, of the workmen’s compensation law as it read on the date of injury. The appeal board found that plaintiff Hier did not qualify under the section 10 test but was in fact totally and permanently disabled in his field of skilled employment.
The Court of Appeals denied an application for leave to appeal. Leave to appeal to this Court was granted on January 10, 1967.
Is an employee who was injured on November 11, 1954, and who in fact is totally and permanently disabled from returning to work in his field of skilled employment, entitled to workmen’s compensation benefits after the expiration of 500 weeks from the date of injury?
Plaintiff’s claim is based upon section 9, part 2, of the workmen’s compensation law which, upon the date of his injury, read, in part, as follows:
“And in no case shall the period covered by such compensation be greater than 500 weeks from the date of injury, nor shall the total compensation exceed an amount equal to 500 times the total weekly amount payable under this section 9, except for permanent and total liability, when the compensation shall be paid for 800 weeks from the date of injury.” PA 1954, No 175, effective August 13,1954. (Emphasis supplied.)
On the date of plaintiff’s injury, section 10, part 2, of the workmen’s compensation act stated in part:
“Total and permanent disability, compensation for which is provided in section 9 hereof, means:
(1) Total and permanent loss of sight of both eyes.
(2) Loss of both legs or both feet at or above the ankle.
(3) Loss of both arms or both hands at or above the wrist.
(4) Loss of any 2 of the members or faculties enumerated in (1), (2) or (3).
(5) Permanent and complete paralysis of both legs or both arms or of 1 leg and 1 arm.
(6) Incurable insanity or imbecility.” PA 1954, No 175. (Emphasis supplied.)
Defendants contend that, unless plaintiff’s injuries fall within one of the specific enumerations of section 10, he is not entitled to recover.
Prior to PA 1954, No 175, part 2, § 10 provided:
“The loss of both hands, or both arms, or both feet, or both legs, or both eyes, or of any 2 thereof, shall constitute total and permanent disability, to he compensated according to the provisions of section 9.” PA 1953, No 198. (Emphasis supplied.)
In Springer v. Reed Foundry & Machine Company (1956), 346 Mich 11, this Court affirmed an award of workmen’s compensation to plaintiff for 750 weeks for permanent and total disability arising out of and in the course of his employment. The employee in Springer admittedly became permanently and totally disabled in 1943. Section 10 then provided that the loss of both hands, or both arms, or both feet, or both legs, or both eyes, or of any two thereof, shall constitute total and permanent disability to be compensated according to the provisions of section 9. Defendants in Springer argued that section 10 should be read into section 9 as a limitation, thereby allowing additional payments for total and permanent disability under section 9 only if one or more of the losses enumerated in section 10 had been suffered. The employee’s injuries in that case re- suited from inhaling coke gas, by reason of which he became insane. This Court rejected the defendants’ argument and affirmed the award to plaintiff.
In Edwards v. Michigan Light Alloys Corporation (1956), 346 Mich 169, plaintiff fell from a factory roof on January 23,1945. The fall caused a cerebral concussion and subsequent mental deterioration, resulting in total disability. This Court affirmed the award of additional compensation upon the reasoning of Springer.
In Verberg v. Simplicity Pattern Company, supra, plaintiff became disabled on December 10, 1947, as the result of long exposure to and inhalation of chrome in the course of his employment. He was paid compensation for 500 weeks. On July 15, 1957, Verberg filed an application for additional benefits for permanent and total disability and was awarded compensation for an additional 250 weeks but denied differential benefits from the second-injury fund. His right to additional compensation benefits was governed by section 9, part 2, of the workmen’s compensation act as it stood at the time of his injury. Verberg’s right to recover from his employer, therefore, fell under the holdings of this Court in Springer and Edwards. His right to recover differential benefits, however, was created by PA 1955, No 250, which amended section 9, part 2, of the act. PA 1955, No 250, effective June 25,1955, in part reads as follows:
“And in no case shall the period covered by such compensation be greater than 500 weeks from the date of injury, nor shall the total compensation exceed an amount equal to 500 times the total weekly amount payable under this section 9, except for permanent and total disability as defined in section 10, when the compensation shall be paid for the duration of such permanent and total disability: Provided, That the conclusive presumption of total and permanent disability shall not extend beyond 800 weeks from the date of injury, and thereafter the question of permanent and total disability shall be determined in accordance with the fact, as the fact may be at that time. Any person who is permanently and totally disabled and who is receiving payments of workmen’s compensation which are payable to such person under this act in amounts per week of less than is presently provided in the workmen’s compensation schedule of benefits for permanent and total disability and for a lesser number of weeks than the duration of such permanent and total disability shall hereafter receive weekly, without application, from the second injury fund, an amount equal to the difference between what he is now receiving per week and the amount per week now provided for permanent and total disability with appropriate application of the provisions of paragraphs (b), (c), (d) and (e) of this section since the date of injury.” (Emphasis supplied.)
Since Yerberg’s right to additional compensation was governed by the provisions of section 9, part 2, of the act in effect at the time of his injury in 1947, it was not necessary for this Court to construe the italicized portion appearing in the above quotation from the 1955 amendatory act. Nevertheless, the Court’s opinion in Verb erg had that effect by approving and adopting the following language from an opinion of the Attorney General, reported in OAG 1955-1956, vol 2, p 592:
“In 1954 by Act No 175 the legal significance of section 9, insofar as permanent and total disability is concerned, was radically changed by the amendment to section 10. In the amendment to that section, the legislature said:
“ ‘Total and permanent disability, compensation for which is provided in section 9 hereof, means:
“‘(1) Total and permanent loss of sight of both eyes.
“ ‘(2) Loss of both legs or both feet at or above the ankle.
“ ‘(3) Loss of both arms or both hands at or above the wrist.
“ ‘(4) Loss of any 2 of the members or faculties enumerated in (1), (2) or (3).
“ ‘(5) Permanent and complete paralysis of both legs or both arms or of 1 leg and 1 arm.
“‘(6) Incurable insanity or imbecility.’
“The effect of this amendment to section 10 was to limit permanent and total disability in section 9 to the items defined in section 10. In the 1955 amendments any remaining doubt as to whether total and permanent disability was limited to the definition in section 10 was dispelled by the language above quoted, viz: ‘except for permanent and total disability as defined in section 10.’
“All of the language in section 9 relating to payments from the second-injury fund was added by the 1955 amendment. The legislature, having clearly evidenced its intent to limit permanent and total disability to that which was defined in section 10, payments from the second-injury fund provided for in section 9 must also be so limited.”
Yerberg was denied differential benefits from the second-injury fund because his disability was not permanent and total as defined in section 10, part 2, of the act.
The holding in Verb erg was recently considered by this Court in a footnote in Liesinger v. Owen-Ames-Kimball Company (1966), 377 Mich 158, wherein it was stated:
“By the 1954 amendment total and permanent disability was defined to mean only those losses set forth in the first six subsections quoted above in the text and supplemented in 1956 by the addition of subsection (7). See Verberg v. Simplicity Pattern Co. (1959), 357 Mich 636.”
Prior to PA 1954, No 175, section 10, part 2, contained an enumeration of certain losses and stated that such losses “shall constitute total and permanent disability, to be compensated according- to the provisions of -section 9.” Such wording is not language of limitation. It was so held in Springer and Edwards. Consequently, in those cases permanent and total disability was compensable if established in fact. However, the language of PA 1954, No 175, that “Total and permanent disability, compensation for which is provided in section 9 hereof, means:”, followed by enumeration of certain losses, is language of limitation and as such bars this plaintiff from recovery. By legislative enactment which is .controlling here, the issue of total and permanent disability is not one of fact but whether plaintiff’s injuries come within one of the enumerated losses set forth in the statute.
. The order of the workmen’s compensation appeal board is affirmed.. Costs to appellees.
Dethmers, C. J., and Kelly, Black, T. M. Kavanagh, Souris, O’Hara and Brennan, JJ., concurred.
CL 1948, § 412.10, as amended by PA 1954, No 175 (Stat Ann 1955 Cum Supp §17.160).
Senate Bill No 1150 shows “disability.” Senate Enrolled Bill No 1150 shows “liability.” | [
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Souris, J.
(dissenting). In Trellsite Foundry & Stamping Company v. Enterprise Foundry (1961), 365 Mich 209, this Court held constitutionally invalid the procedure then specified in section 9, part 7 of our workmen’s compensation law for apportioning liability for an employee’s disabling occupational disease among his last and prior employers in whose employment the employee was subject to conditions to the nature of which such disease was due. The Court’s decision was based upon its finding that the apportionment procedure of the section denied prior employers procedural due process since it did not provide expressly for their participation in the hearing at which the claimant’s right to compensation benefits was determined.
In 1962, the legislature rectified the procedural defect of the section by enactment of PA 1962, No 189, which became effective on March 28,1963. That act amended section 9, part 7 to provide that upon motion of a last employer against whom a claim has been filed prior employers shall be made parties and shall be given notice of, and an opportunity to participate in, the hearing before a referee at which the claimant’s right to compensation is determined.
In this case, Leonard filed his application for hearing and adjustment of claim against Lans Corporation in 1964. He claimed he became disabled by occupational disease while in Lans’ employment prior to March of 1963. Lans thereupon moved, in accordance with Act 189, for the addition as parties defendant of Die Aids Corporation and Lansing Pattern & Manufacturing Company, in whose employment Leonard served prior to his employment by Lans. The hearing referee awarded compensation to Leonard from Lans, but the referee failed to order apportionment of that liability between Lans and the prior employers. Lans appealed to the appeal board, solely on the issue of apportionment, and the board affirmed on the ground that the apportionment provisions of Act 189 could not be applied to a claim which arose prior to its effective date. The Court of Appeals, without opinion, denied review by order merely citing its decision in Briggs v. Campbell, Wyant & Cannon Foundry Company (1966), 2 Mich App 204. This Court granted leave to appeal.
It is appellees’ contention, apparently shared by the appeal board and by the Court of Appeals in Briggs, supra, that our decision in Trellsite abrogated all of former section 9, part 7 except its first sentence and that thereafter, until Act 189 became effective, there was no liability imposed upon prior employers of a claimant who became disabled from an occupational disease. Prom this premise it is argued that Act 189 did more than provide a valid procedure for enforcing a pre-existing liability; it is claimed that it created a liability upon prior employers to replace that theretofore abrogated by our decision in Trellsite and provided a constitutionally valid procedure for its enforcement. The conclusion urged upon us is that Act 189, since it is claimed to have created a new substantive liability as well as an enforcement procedure, therefore cannot be applied retroactively to claims arising before its effective date without running afoul of constitutional obstacles. We do not accept such conclusion.
Section 9, part 7, as considered in Trellsite, read as follows:
“The total compensation due shall be recoverable from the employer who last employed the employee in the employment to the nature of which the disease was due and in which it was contracted. . If, however, such disease was contracted while such employee was in the employment of a prior employer, the employer who is made liable for the total compensation as provided by this section may appeal to said board for an apportionment of such compensation among the several employers who since the contraction of such diséase shall have employed such employee in the employment to the nature of which the disease was due. Such apportionment shall be proportioned to the time such employee was employed in the service of such employers, and shall be determined only after a hearing, notice of the time and place of which shall have been given to every employer alleged to be liable ’for any portion of such compensation. If the board finds that any portion of such compensation is payable by an employer prior to the employer who is made liable for the total compensation as provided by this section, it shall make an award accordingly in. favor of the. last employer, and such award may be. enforced in the same manner as an award for compensation.”
While it is true that in Smith v. Lawrence Baking Company (1963), 370 Mich 169, we treated the first sentence of the quoted section as unaffected by.our decision in Trellsite, we did not attempt in Smith, nor have we attempted subsequently, to delineate specifically how much of the language of former section 9, part 7 was invalidated by our decision in Trellsite. It is important to do so now because of appellees’ contentions.
It may be conceded that Trellsite may be read as broadly as it is read by appellees and, so read, that tbe result urged upon us by appellees would' have to follow. However, tbe Court’s opinion in Trellsite need not be read so broadly, and, in our judgment, it should not be.
Trellsite presented for tbe Court’s decision only tbe constitutional validity of tbe procedure for apportioning liability among a claimant’s last' and prior employers. For failure to provide prior employers notice of, and an opportunity to participate in, the bearing at wbicb tbe claimant’s right to compensation was adjudicated, this Court in Trellsite declared unconstitutional tbe provisions of'the statute for apportionment of tbe liability among such employers. In other words, tbe procedure for in-voting tbe last employer’s right of apportionment was declared invalid. However, it was not necessary for decisional purposes in Trellsite to declare tbe statutory imposition of several liability upon prior employers invalid, nor did we do so in express language. We perceive no reason now to read into Trellsite more than it was necessary to decide in that case.
Since our decision in Trellsite invalidated only tbe procedural provisions of former section 9, part 7, wbicb were found to be constitutionally deficient, the following portion was left intact until amended by‘Act 189:
“Tbe total compensation due shall be recoverable from tbe employer who last employed tbe employee in tbe employment to the nature of wbicb the' disease was due and in wbicb it was contracted. If, however, such disease was contracted while such employee was in tbe employment of a prior employer, the employer who is made liable for the total compensation as provided by this section may appeal to said board for an apportionment of such compensation among the several employers who since the contraction of snch disease shall have employed such employee in the employment to the nature of whiqh. the disease was due. Such apportionment shall bé proportioned to the time such employee was employed in the service of such employers * '*
The language of the former section invalidated by our decision in Trellsite read as follows:
“* .* * and shall be determined only after a hearing, notice of the time and place of which shall have been given to every employer alleged to be liable for any portion of such compensation. If the board finds that any portion of such compensation is payable by an employer prior to the employer who is made liable for the total compensation as provided by this section, it shall make an award accordingly in favor of the last employer, and such award may be enforced in the same manner as an award for compensation.”
Thus, after Trellsite, while prior employers continued liable to the last employer for their proportionate share of the compensation payable to a claimant disabled by an occupational disease, there was no valid statutory procedure by which the last employer could enforce that liability in proceedings before the workmen’s compensation department. When Act 189 became effective, however, the statutory procedural deficiency resulting from our decision in Trellsite was corrected and thereafter the prior employers’ liability was enforceable in proceedings before the department at least in those cases in which the employees’ claims had not yet been adjudicated finally by a referee, as in this case of Leonard.
We perceive no reason in logic nor in law why the remedial provisions of Act 189 should not be applicable retroactively in those cases in which they may be applied literally. Ample precedent exists for retroactive application of remedial statutes designed to correct defects in existing law or to provide procedures for enforcing existing liabilities, as distinguished from those creating new substantive rights or destroying vested rights.
In Rookledge v. Garwood (1954), 340 Mich 444, this Court, by unanimous decision, held that an amendment to the workmen’s compensation law removing the previous statutory bar to an action against a negligent third party by an injured worker who had elected to proceed first against his employer for compensation was applicable retroactively to claims arising prior to the amendment. The. Court noted that the amendment was designed to rectify the injustice of the statutory bar which shortly before had commanded the critical attention of the Court in Graham v. Michigan Motor Freight Lines, Inc. (1943), 304 Mich 136. In our opinion in Rookledge, supra, at p 453, we said:
“It is generally understood that if a statute or amendment is ‘designed to correct an existing law, redress an existing grievance, or introduce regulations conducive to the public good,’ it will be regarded as remedial in nature. In re School District No. 6, Paris and Wyoming Townships, Kent County, 284 Mich 132, 144. The same connotation is given to those statutes or amendments which apply to procedural matters rather than to substantive rights. The definitive rule in this respect, found in 50 Am Jur, pp 33, 34, Statutes, § 15, is:
“ ‘Legislation which has been regarded as remedial in its nature includes statutes which abridge superfluities of former laws, remedying defects therein, or mischiefs thereof implying an intention to reform or extend existing rights, and having for their purpose the promotion of justice and the advancement of public welfare and of important and beneficial public objects, such as the protection of the health, morals, and safety of society, or of the public generally. Another common use of the term “remedial statute” is to distinguish it from a statute conferring a substantive right, and to apply it to acts relating to the remedy, to rules of practice or courses of procedure, or to the means employed to enforce a right or redress an injury. It applies to a statute giving a party a remedy where he had none or a different one before.’ ”
In Trellsite this Court’s majority forcefully brought to the legislature’s attention in 1961 the constitutional invalidity of the procedural provisions of former section 9, part 7, and, in 1962, the legislature corrected the procedural defect to permit enforcement validly of the statutory liability to the last employer imposed upon prior employers. Act 189 clearly was designed to correct an existing defect of law and, as such, it must be regarded as remedial and intended by the legislature for retroactive application. Absent any adverse consequences to vested rights, by such retroactive application of the amendatory act, no constitutional obstacle precludes giving it such effect. Pertinent at this point, also, is Rooldedge. The nature of vested rights entitled to immunity from retroactive application of statutes was considered at pp 456-458:-.
“The question of determining what is a vested right is always a source of much difficulty. This is illustrated by our holding in Wylie v. City Commission of Grand Rapids, 293 Mich 571, where we said at page 587:
“ ‘Few questions have troubled the courts more than the problem of what are vested rights. What some courts have considered vested, others have considered inchoate. 44 Tale Law Journal, p 358 (note). A few courts have frankly recognized that policy considerations, rather than definitions, are controlling, and have defined a vested right as a right of which the individual could not be deprived without injustice.
“ ‘ “In its application as a shield of protection, the term ‘vested rights’ is not used in any narrow or technical sense, or as importing a power of legal control merely, but rather as implying a vested interest which it is right and equitable that the government should recognise and protect, and of tuhich the individual could not be deprived arbitrarily without injustice.” 2 Cooley’s Constitutional Limitations (8th ed), p 745.’ * * *
“A statutory defense, though a valuable right, is not a vested right and the holder thereof may be deprived of it after the cause of action to which it may be interposed has arisen.
“ ‘There can, in the nature of things, be no vested right in an existing law which precludes its change or repeal.’ Harsha v. City of Detroit, 261 Mich 586, 594 (90 ALR 853).
“In dealing with the constitutionality of the statute abolishing the statute of limitations the Court said in Evans Products Co. v. State Board of Escheats, 307 Mich 506, 545, quoting with approval from Campbell v. Holt, 115 US 620 (6 S Ct 209, 29 L ed 483):
“ ‘The authorities we have cited, especially in this court, show that no right is destroyed when the law restores a remedy which had been lost.’
“Rookledge, under the act as it existed prior to the amendment, lost his right to enforce his remedy for damages against the third-party tort-feasor when he accepted compensation. The legislature had the authority to revoke this defense and restore to plain tiff his remedy for damages. This it saw fit to do. The situation here presented is aldn to the one involved in Foster v. Buckner, 203 F2d 527, 6th Circuit (12 NACCA Law Journal, 217, 218). There, the defendant tort-feasor sought a summary judgment on the ground that plaintiff had made an election by accepting compensation. Judgment was denied with the following statement (p 531):
“ ‘A further conclusive answer to this contention is that the Michigan statute which was construed in the Dinardo Case [Dinardo v. Consumers Power Co. (CA 6, 1950), 181 F2d 104] has now been changed. An amendment was enacted to CL 1948, § 413.15 (Stat Ann 1950 Rev §17.189), in 1952, PA 1952, No 155, after the instant action was commenced but while it was pending. The former statute required an employee to elect whether to pursue his remedy against the employer for compensation or to seek his common-law remedy against the third party causing the injury. Under the present statute the employee may receive compensation or take proceedings to enforce compensation payments and also sue the third party. The statute provides in substance, that in case of recovery against the third party, after deducting expenses of recovery, the amount of the judgment is to be used first to reimburse the employer or the workmen’s compensation insurance carrier for amounts paid or payable under the compensation act to date of recovery and the balance is paid to the insured employee or his dependents. This statute pertains to the remedy and hence applies to the present action. Judd v. Judd, 125 Mich 228; Heineman v. Schloss, 83 Mich 153; Nash v. Robinson, 226 Mich 146; Detroit Club v. State of Michigan, 309 Mich 721; Stott v. Stott Realty Company, 288 Mich 35. Since the change in the statute created no new cause of action and the amendment merely limited a procedural defense, the amended statute governs this controversy.’ ”
We would hold that section 9, part 7, as amended by PA 1962, No 189, is applicable to claims arising prior to the effective date of the amendment in those cases in which the employees’ claims had not yet been adjudicated finally by a referee. The referee and appeal board erred in refusing to apportion liability between the last and prior employers of claimant Leonard.
The award should be reversed and remanded for further proceedings consistent herewith. Appellants should be allowed to tax their costs.
Dethmers, C. J., and O’Hara, J., concurred with Souris, J.
Black, J. In this case the appeal board concluded:
“The determined date of injury in this case is March 9, 1963. As of said date, our statute lacked an effective apportionment provision. Through Act 189, PA 1962, effective March 28,1963, an apportionment section was added to part 7 of the statute. Since we have held in Wright v. Campbell, Wyant & Cannon Foundry Company, 1964 WCABO 187, that said amendment is not effective retroactively, it follows that the appellants are not entitled to have their liability to plaintiff prorated among the named prior employers, and, we so find.
“The referee’s decision is modified so as to deny any right of apportionment herein.”
I would affirm the board’s ruling and order. See separate opinion of Briggs v. Campbell, Wyant & Cannon Foundry Company (1967), 379 Mich 160.
Kelly, T. M. Kavanagh, and Adams, JJ., concurred with Black, J.
Brennan, J., did not participate in the decision of this case,
CL 1948, § 417.9 (Stat Ann 1960 Rev § 17.228).
Amending CLS 1961, § 417.9 (Stat Ann 1963 Cum Supp § 17.228). See, currently, CLS 1961, § 417.9, as amended by PA 1965, No 44 (Stat Ann 1965 Cum Supp § 17.228).
See Briggs v. Campbell, Wyant & Cannon Foundry Company (1967), 379 Mich 160. | [
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On Rehearing
D. F. Walsh, P.J.
Defendant, Richard L. Goo-
dard, was convicted after jury trial of first-degree murder. MCL 750.316; MSA 28.548. He appealed and we reversed. People v Goodard, 82 Mich App 424; 266 NW2d 832 (1978) (Beasley, J., dissenting). The people moved for and we granted rehearing in an order dated August 31, 1978. On rehearing defendant’s conviction is affirmed and our former order reversing the conviction is rescinded.
Defendant claims that the trial court gave an erroneous and misleading instruction on the essential element of malice. Such an allegation of error does not require objection at trial in order to be preserved for appeal. People v Townes, 391 Mich 578; 218 NW2d 136 (1974), People v Liggett, 378 Mich 706; 148 NW2d 784 (1967), People v Rosemary Gibson, 71 Mich App 543; 248 NW2d 613 (1976). If the instructions were so erroneous as to have denied the defendant a fair trial , then "manifest injustice” has been shown.
As an element of the crime of murder, "malice” has a very specific definition:
"Malice means the defendant intended to kill or that he knowingly created a very high risk of death with knowledge that it probably would result in death and that he did so under circumstances which did not justify, excuse, or lessen the crime.” Michigan Standard Criminal Jury Instructions (CJI) 16:3:01, quoted in People v Fountain, 71 Mich App 491, 493 fn 1; 248 NW2d 589 (1976). See CJI, Murder Commentary.
It is against that definition that we evaluate the trial court’s instructions on malice, which were as follows:
"Malice is here used in a technical sense, including not only anger, hatred or revenge, but every other unlawful and unjustifiable motive. It is not confined to particularly ill-will to the deceased, but is intended to denote an action flowing from a wicked and corrupt motive. A thing done, as the book says, 'malo animo’, meaning with an evil mind; with a bad purpose or wrong intention and, therefore, malice is implied from any deliberate or cruel act against another however sudden. The time in which the wicked purpose is formed is immaterial. Malice aforethought does not imply deliberation or the lapse of considerable time between the formation and execution of the intent to take life but rather denotes purposes and design. It means malice existing at any time before the act so as to be its moving cause or concomitant.
"Murder in the first degree is defined as where a person with a sound memory and discretion, willfully and unlawfully and unreasonably kills any human being against the peace of this state with premeditation and with malice aforethought, express or implied.
"Murder in the second degree is similarly defined except the element of premeditation is lacking. If one without cause inflicts a wrong upon another, we call him wicked and malicious, so when one without any legal provocation, justification or excuse intentionally kills another, he is called a murderer. The law implies from such unprovoked, unjustifiable or inexcusable killing, the existence of that wicked disposition which the law terms malice aforethought. The intention may be inferred from the use of a deadly weapon in such a manner that the death of the person assaulted would be the inevitable consequence. Thus, if the defendant Richard Goodard intentionally killed Earl DeMarse without provocation, justification or excuse and with premeditation and malice aforethought, he would be guilty of murder first degree.” (Emphasis added.)
I disapprove much of the instruction insofar as it is arcane and potentially misleading. Such instructions should not be approved automatically simply because they were reproduced in the text of a distinguishable decades-old opinion. However, my assessment of the above instruction is that it did not constitute reversible error,
The central inquiry in reviewing jury instructions in criminal cases is whether the jury, following the court’s instructions, could have convicted the defendant without finding all of the legally required elements. Thus, when we examine the transcript we must always consider the context of a challenged passage to determine the likelihood that the jury considered it as a legal definition or principle to be applied to the facts of the case. If the context and the language indicates that the jury may have used the statement in question as an operative legal principle in their deliberation, and if the statenlent is erroneous or misleading, the conviction must be reversed regardless of the content of the remaining instructions. See People v Beard, 78 Mich App 636; 261 NW2d 27 (1977).
My reading of the first full paragraph of the quoted instructions convinces me that the jury must have considered it no more than introductory. The term "malice” was cast about in a general and (concededly) incorrect fashion, but contained nothing of substance in terms of a legal principle to be applied to the facts.
The second paragraph of the instructions is clearly a legal definition of first-degree murder. It correctly includes all of the required elements of the crime, including the pertinent type of malice involved in the case. The word "willfully” accurately characterizes the requisite mental element of intent to kill.
The elaboration upon "malice” contained in the emphasized portion of the third paragraph contains all of the components required to find "malice”: an intentional killing without legal provocation, justification or excuse. As such, it was a correct instruction. People v Rosemary Gibson, supra.
I conclude that the instructions in the instant case accurately communicated to the jury the components required for a finding of malice, and, therefore, did not constitute reversible error.
Defendant’s conviction is affirmed.
The cases cited in the text are authority for the proposition that a fair trial includes having the jury properly instructed as to the applicable law. If the jury was so erroneously instructed that its finding of "malice” did not necessarily include a finding of the legally necessary components thereof, then the defendant was convicted without having a necessary element of the crime determined by the jury. Such a conviction cannot be termed the product of a "fair trial”.
In my opinion, the concept of "manifest injustice” is coterminous with that of a "fair trial”. Our determination whether "manifest injustice” has occurred should not turn on our assessment of the defendant’s guilt — we are not triers of fact. Rather, our analysis should focus on the question of whether the trial procedures comported with our systemic standards of fairness. If they did not, we must reverse. Fundamentally unfair trial procedure cannot be vindicated merely because we agree with the result.
I consider People v Borgetto, 99 Mich 336; 58 NW 328 (1894), to be of uncertain precedential value for the proposition that the instant instructions were not erroneous. Borgetto found the instructions given in that case sufficient because of the immediate presence of additional language distinguishing murder from manslaughter,- language not present in the instructions before us. Hence, Borgetto is inapposite here.
Furthermore, in view of the development of legal thought and the evolution of common language to the point where "it is well-nigh impossible to communicate to jurors in the arcane jargon of malice aforethought the mental state required [to constitute murder]”, People v Morrin, 31 Mich App 301, 320; 187 NW2d 434 (1971), I consider it unwise to accept instructions because their preadamic language corresponds to that approved in a case from an earlier time. Rather, our analysis should begin by defining the legal components of the element in question and then proceed to determine whether the instructions communicated the requirement that those components must be found before the defendant can be convicted. See People v Rosemary Gibson, 71 Mich App 543; 248 NW2d 613 (1976).
I agree with Judge Maher’s observation that the "read as a whole” rule has been abused by overuse. People v Beard, 78 Mich App 636, 639; 261 NW2d 27 (1977). I further agree that clearly erroneous instructions on' a material element of a crime mandate reversal. However, as indicated in the text, even the application of such a salutary rule requires that we keep in mind the rationale underlying our review of the instructions. If we can state with near certainty that the jury did not rely upon the challenged instruction in its deliberations, there is no point in reversing the conviction. Needless to say, such a statement can be made legitimately only after careful consideration of the language and its context.
Given the evidence concerning the nature of killing in the instant case, the only question of malice presented was whether the killing was done intentionally. Hence, the instructions should be read to determine whether they required the jury to find inter alia an intent to kill as a condition of conviction.
I hasten to add that in a different factual context (e.g., a charge of murder in the perpetration of a robbery) in which there existed the possibility that the jury could have construed such phrases as "unlawful and unjustifiable motive”, "wicked and corrupt motive”, "bad purpose” to denote something other than intent to kill (e.g., intent to rob), I would not hesitate to reverse. However, the facts of the instant case simply do not lend themselves to that kind of confusion.
"Willful * * * 2: done deliberately: not accidental or without purpose: INTERNATIONAL, SELF-DETERMINED <a — injury > < — murder > * * * .” Webster’s Third New International Dictionary (1965), p 2617.
I think that the above definition accurately states the common meaning that a layman would give the term "willful”.
See fn 3, supra. | [
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Per Curiam.
This action arises from a dispute over an apartment project called River Hollow, which was constructed on land owned by the Cats-man Realty Company. The construction of the apartments was financed by a loan from Kelly Mortgage Company, secured by a mortgage on the premises and the personal guarantee of Samuel M. Catsman.
The suit was commenced on September 1, 1974, by the filing of a complaint by plaintiff, United Growth Company, against defendants, Catsman Realty Company, Kelly Mortgage Company, and others. On March 5, 1975, Kelly Mortgage Company filed a cross-claim for foreclosure against Catsman Realty Company. Catsman appeals the judgment granted upon that cross-claim.
On March 10, 1976, Kelly moved for a summary judgment of foreclosure of both its mortgage and a security interest which it held in personalty at the apartment project. Neither Catsman nor Catsman Realty opposed the motion, both admitting to having defaulted in their repayment obligations on the mortgage. At the conclusion of the April 7, 1976, hearing on the summary judgment motion, Catsman requested that the court establish an upset price in conjunction with the foreclosure sale, pursuant to the discretion vested in the court under MCL 600.3155; MSA 27A.3155.
Catsman’s request was granted and on May 12, 1976, an appraisal was submitted to the court. The appraisers advised the court that the foreclosure sale value of the mortgaged property was $1,000,-000. After the court heard appellants’ objections to the price, the judgment of foreclosure was entered in the amount of $1,000,000. No appeal was taken therefrom.
On October 15, 1976, a mortgage foreclosure sale was held, but the court refused to confirm the sale due to a deficiency in the sheriff’s manner of posting notice of the sale.
A second foreclosure sale was held on April 1, 1977. Appellee purchased the property for $1,050,-000. The sale was confirmed on May 13, 1977. On June 1, 1977, appellants filed a "Motion to alter or amend judgment under GCR 1963, 527”, alleging that the first sale upset price was inadequate. On June 20, 1977, the motion was heard and denied. Catsman and Catsman Realty appeal from that denial.
As a preliminary note, there is some question as to whether appellants may challenge the amount of an upset price set nearly a year before they claimed an appeal. Formerly, their appeal might have been precluded. See Cooper v LaBuda, 308 Mich 737; 14 NW2d 788 (1944). However, the court rules have been changed and as they now exist, they permit appellants a delayed appeal to the Court upon leave granted. Since appellants do not appear to have been negligent in filing the appeal, we shall address the merits of the case as on leave granted.
Appellants first claim that the trial court erred in using a forced sale valuation in determining the foreclosure sale upset price. We find no error.
MCL 600.3155; MSA 27A.3155 provides:
"In any forfeiture, foreclosure, or specific performance case based upon a mortgage on real estate or land contract the court may fix and determine the minimum price at which the real property covered by the mortgage or land contract may be sold at the sale under the forfeiture, foreclosure, or specific performance proceedings.”
The statutory language itself suggests that the Legislature was avoiding the use of terms such as "fair market value” or "cost”. On the contrary, the statute itself notes the forced nature of the sale by utilizing the terms, "forfeiture, foreclosure or specific performance”. As appellee states: "There is nothing whatsoever in the text to support the contention that the legislature viewed the sale as an arm’s-length, private transaction free from constraints wherein the best possible price can be negotiated by the seller.”
Moreover, it cannot be gainsaid that the element of compulsion reduces the value of property. Section 3155 was obviously intended to prevent such compulsion from forcing the mortgage sale price too far below the price which could be obtained by a willing seller from a willing buyer. If the element of compulsion could not be considered by the court in setting the upset price, prospective buyers would probably refrain from bidding until the price was reduced. Reality requires that the court make some concession to the forced nature of the sale in setting the upset price.
Other jurisdictions have held that the element of compulsion is a proper consideration in analyzing the fairness of the foreclosure sale price. See Gilbert v Lusk, 123 Ind App 167; 106 NE2d 404 (1952), Cromer v De Jarnette, 188 Va 680; 51 SE2d 201 (1949), and Orlove v National Savings & Trust Co, 68 US App DC 387; 98 F2d 259 (1938).
It is also true, as appellees argue, that Michigan courts have consistently refused to void or otherwise alter the sale price in foreclosure sales on the basis of mere inadequacy. In Campau v Godfrey, 18 Mich 27, 44-45 (1869), the Supreme Court said:
"And no case has been cited, nor are we aware of any, in which an execution sale of real estate has been set aside, on motion or otherwise, for inadequacy of price alone, especially when, as in this case, it was subject to a year’s redemption. The statute giving a year’s redemption seems to rest mainly upon the idea that real estate may be sold for less than its value, and to give the time of redemption mainly on this ground. This is an adequate remedy, and if the debtor will not avail himself of it, he can not complain of it. Public policy requires that judicial sales which have been open and fair, and nothing done to prevent a sale at a higher price, should not be disturbed on the ground of inadequacy; since the effect of an opposite course would be to deter bidders, and render the prices on such sales still less. And any rule which might be laid down as to the degree of inadequacy would be wholly arbitrary.” (Citation omitted.) (Emphasis supplied.)
Inadequacy of price does not justify a refusal to confirm the sale. It likewise follows that it cannot flaw the deficiency judgment resulting from such sale.
The court, then, in setting the upset price, did not err in taking into consideration the compulsion attendant to a mortgage foreclosure sale.
Appellants also complain that the trial court erred in denying defendant’s motion to increase the upset price when that motion was not made until after the second sale was held and confirmed. As the reason for their motion, appellants claimed the value of the property had increased between the setting of the foreclosure sale upset price and the second foreclosure sale.
But mortgage foreclosure proceedings are strictly statutory and courts are bound by the statutory provisions.
"Mortgage foreclosure proceedings are special and statutory and not an exercise of inherent equity powers of the court.” Wurzer v Geraldine, 268 Mich 286, 288; 256 NW 439 (1934).
There is no provision in the mortgage foreclosure statute which expressly permits amendment of the upset price subsequent to a sale. The words in MCL 600.3155, "may be sold”, clearly anticipate a future sale at the time the upset price is set.
Appellants’ reliance on Kramer v Davis, 371 Mich 464; 124 NW2d 292 (1963), is misplaced. Kramer addressed itself to the issue raised by appellants and rejected appellants’ theory.
"We think the language of the statute 'the court may fix and determine the minimum price at which the real property covered by the mortgage or land contract may be sold at the sale’ discloses a legislative intent to authorize the court to make such determination in advance of the sale. The statute does not say that the court may determine the minimum price at which the real property should have been sold at a sale theretofore held.” 371 Mich at 471.
The Kramer Court clearly construed § 3155 as giving the court the authority to set the minimum price prior to the sale only.
There is an additional reason for upholding the denial of appellants’ motion to amend the judgment. GCR 1963, 527.3 requires that if the facts stated in the motion to amend the judgment did not appear on the record, the motion must be supported by affidavits of the party or some other person. Catsman’s allegation that the value of the property increased between the first and second foreclosure sale did not appear on the record and was not supported by affidavit. Consequently, even if it could have, the court had no basis for amending the judgment.
Finally, the trial court ruled that attorney fees could not be awarded in a judicial mortgage foreclosure as a matter of law. The court consequently refused to include such an award in the judgment of foreclosure.
The general rule as to attorneys’ fees is stated as follows:
"In the absence of a statutory provision or some contractual stipulation between the parties for the allowance of attorneys’ fees, the court in an action to foreclose a mortgage will not render judgment against the mortgagor for the attorneys’ fees of the mortgagee.” 55 Am Jur 2d, Mortgages, § 625, p 590.
In this case, however, both the mortgage executed by Catsman Realty and the guaranty signed by Samuel Catsman expressly permit the assessment of attorneys’ fees in the event of foreclosure. Since attorneys’ fees are expressly permitted by the terms of the mortgage and the guaranty, the general rule cited above does not apply.
In denying attorneys’ fees, the trial court relied, upon Kittermaster v Brossard, 105 Mich 219; 63 NW 75 (1895). But Kittermaster stated that a court will not enforce a mortgage clause providing for attorneys’ fees in a stipulated amount. The mortgage in the instant case, however, does not set a stipulated fee and Kittermaster does not apply. The mortgage at issue called for the payment of "all expenditures and expenses which may be reasonably paid or incurred”. Provisions for payment of reasonable attorneys’ fees have been endorsed by our Courts. See Wilson Leasing Co v Seaway Pharmacal Corp, 53 Mich App 359; 220 NW2d 83 (1974).
In short, as was stated in Butzel v Webster Apartments Co, 112 F2d 362, 365 (CA 6, 1940):
"The rule prevails in Michigan that an agreement by a mortgagor to pay a stipulated attorneys’ fee on default and foreclosure is contrary to public policy and invalid. Curtis v Mueller, 184 Mich 148; 150 NW 847 [1915]; Myer v Hart, 40 Mich 517; 29 Am Rep 553 [1879]. However, a reasonable fee may be allowed, measured by the fair value of the services rendered. Security Trust Co v Solomon, 241 Mich 52; 216 NW 405 [1927]”.
We find that the agreement in the instant case called for reasonable attorneys’ fees and such costs should have been allowed appellees. The case is therefore remanded for taking of proofs on the question of reasonable attorneys’ fees to be awarded to appellees. As to the other issues, the trial court is affirmed. Costs to Kelly Mortgage & Investment Company. | [
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Per Curiam.
Defendant was found guilty by a jury of the offense of carrying a dangerous weapon in a motor vehicle, which is proscribed by MCL 750.227; MSA 28.424.
It was undisputed at trial that a pistol was removed by police from a car in which defendant and a female companion had been riding. The case for the prosecution rested mainly upon the testimony of a police officer who stated he had seen defendant leave the driver’s position of the car and walk around it to the passenger’s side, where he re-entered and attempted to conceal a handgun between the seats. Witnesses for the defendant testified that defendant was riding as a passenger only and had exited the car to examine it for a noise it was making. Both defendant and his companion denied knowledge that a gun was in the car. The vehicle was owned by neither defendant nor his companion.
While presenting its case in chief, the prosecution was permitted, over defense objection, to introduce prior consistent statements by one of the arresting officers, Officer Holt, who had testified for the people and had been impeached on cross-examination by evidence of prior contradiction. The trial court ruled such statements admissible whenever prior inconsistencies have been brought out. Upon the close of the people’s case, defendant moved the court in limine to prohibit the prosecutor from impeaching one of defendant’s witnesses, his companion, by reference to a prior misdemeanor conviction for accosting and soliciting. The trial court denied the motion, reasoning that witnesses, other than an accused, may be so impeached.
Both during voir dire and in its instructions after trial, the court informed the jury of the state’s burden of proof. It told them on three occasions that defendant was presumed innocent until the state presented sufficient evidence to convince the jury of defendant’s guilt beyond a reasonable doubt. The court did not specifically charge that the presumption of innocence "goes into the jury room”.
Contrary to defendant’s objection, we find sufficient evidence on the record to support his conviction, see People v Little, 58 Mich App 12; 226 NW2d 735 (1975), People v Filip, 58 Mich App 564; 228 NW2d 464 (1975), People v Stephens, 58 Mich App 701; 228 NW2d 527 (1975), and no error in the court’s burden of proof instructions, People v Heard, 31 Mich App 439; 188 NW2d 24 (1971), see People v Parsons, 105 Mich 177, 186-87; 63 NW 69, 72 (1895).
We agree with defendant, however, that the court erred in allowing defendant’s witness to be impeached by misdemeanor convictions and in permitting the prosecutor’s witness to be rehabilitated by evidence of prior consistent statements.
People v Renno, 392 Mich 45; 219 NW2d 422 (1974), holds that misdemeanor convictions may not be "used by the prosecution solely for impeachment purposes”. Id., at 55, 219 NW2d at 425. (Emphasis in original.) That decision is based on MCL 600.2158; MSA 27A.2158 and MCL 600.2159; MSA 27A.2159, which apply in this case. By their own language, these code sections respectively govern the impeachment of any "person * * * giving evidence,” and any "person * * * as a witness.” Although Renno factually involved a witness who was a defendant, the case’s analysis and holding apply to all witnesses. People v Alphus Harris, 56 Mich App 517, 528; 224 NW2d 680, 685 (1974). See also People v Bowen, 77 Mich App 684; 259 NW2d 189 (1977), People v Foster, 77 Mich App 604; 259 NW2d 153 (1977).
Prior consistent statements are inadmissible to rehabilitate a witness except to rebut a charge of recent fabrication, Brown v Pointer, 41 Mich App 539; 200 NW2d 756 (1972), rev’d on other grounds, 390 Mich 346; 212 NW2d 201 (1973), or as evidence of the fact that a witness had made a prior inconsistent statement, Stewart v People, 23 Mich 63 (1871). Whether evidence is probative of either of these facts is a matter within the trial court’s discretion. See id., 76. Neither party contends that the prior consistent statements of Officer Holt were admissible to disprove a charge of recent fabrication. We do not have to decide whether it was an abuse of discretion to allow the evidence under the rule of Stewart v People, as it is apparent at a glance (see tr, pp 124, 129, 132) that the witness did not deny making the prior inconsistent statements. Cf. People v Hallaway, 389 Mich 265, 277; 205 NW2d 451, 455 (1973) (Stewart clearly inapplicable when no inconsistent statement made), Leach v Detroit Electric R Co, 129 Mich 286, 288; 88 NW 635 (1902) (same). But see Woodrow v Johns, 61 Mich App 255; 232 NW2d 688 (1975).
The cumulative effect of both rulings by the trial court was to diminish the credibility of a defense witness and to bolster the credibility of a witness for the prosecution. Since the evidence presented by each side was directly conflicting, witness credibility was crucial to the jury’s verdict. See People v Rahar, 37 Mich App 577; 195 NW2d 77 (1972). Thus, we cannot say that only harmless error occurred. People v Foster, 77 Mich App 604; 259 NW2d 153 (1977), which found harmless error in allowing impeachment by reference to prior misdemeanors, is clearly distinguishable. In that case the actual offense was never revealed to the jury, the question and answer was stricken by the trial judge, and the error was further cured by subsequent instructions.
This last point leads us to discuss another issue which was neglected by both sides in their briefs. The issue is unlikely to reoccur at trial, but its resolution determines the propriety of our reaching the merits of this case. The record shows that evidence of the offense used to impeach defendant’s witness was first introduced by defense counsel and that the prosecutor made only oblique references thereto, not clearly understandable as references to the witness’s prior conviction, but for the witness’s own earlier admissions. Defense counsel’s apparent purpose was to reduce the prejudicial impact of the conviction evidence by mentioning it himself. This presents a question in our minds whether defendant has waived his objection. See State v Burt, 249 NW2d 651 (Iowa, 1977), State v Miller, 229 NW2d 762 (Iowa, 1975), cf., People v Iaconis, 29 Mich App 443; 185 NW2d 609 (1971), aff’d sub nom, People v Bercheny, 387 Mich 431; 196 NW2d 767 (1972) (issue of waiver of objection to ruling on impeachment by witness’s failure to take stand), People v Draine, 72 Mich App 592; 250 NW2d 139 (1976) (same), People v Bernard Smith, 81 Mich App 561; 266 NW2d 40 (1978) (same). We hold that he has not.
No Michigan eases have decided this precise issue. In People v Renno, supra, the defendant first admitted his prior misdemeanor convictions on direct examination by his counsel, yet the Supreme Court reached the merits of his objection on appeal without questioning whether the issue had been properly preserved. Renno, however, is significantly distinguishable from the case before us in that the prosecutor’s remarks in Renno standing alone clearly referred to the witness’s prior conviction. Various panels of this Court have split on the analogous issue of whether a defendant, by staying off the stand, waives his objection to the trial court’s erroneous preliminary ruling that he could be impeached by certain evidence. See People v Iaconis, supra, (issue moot), People v Draine, supra, (issue preserved), People v Bernard Smith, supra, (issue preserved).
The Iowa Courts, in the only other cases we have found directly on point, have reached the merits of the evidentiary objection on appeal despite the opponent’s trial tactics in admitting the evidence himself after denial of an in limine motion to exclude. State v Burt, supra, State v Miller, supra.
As a general rule, Wigmore states that an error in admitting evidence is cured by the opponent’s use of evidence similar to that to which he objected, unless he uses it in self defense to explain or rebut the original evidence. 1 Wigmore, Evidence (3d ed), § 18, p 345.
We choose to follow the Iowa rule and expand the "self-defense” exception noted by Wigmore. Our decision is based on a policy of furthering the practical resolution of trial court errors at trial.
A motion in limine to exclude evidence is eminently proper. Lapasinskas v Quick, 17 Mich App 733; 170 NW2d 318 (1969). When successful, it is the only realistic means by which an opponent of excludable evidence can avoid prejudice to his case. See Anno: Modern status of rules as to use of motion in limine or similar preliminary motion to secure exclusion of prejudicial evidence or reference to prejudicial matters, 63 ALR3d 311, 313. When the motion fails through an error by the trial court, the in limine procedure still serves a practical purpose. Knowing what the court plans by way of admission of testimony, the opponent can plan a strategy that will reduce the harmful impact of the court’s error such as the strategy of being the first to introduce the objectionable evidence, as adopted by defendant in this case. If the opponent’s tactics are successful, they may produce a verdict in his favor, despite the judge’s mistake. This practice serves all interests in the suit, including the court’s. It enhances the fairness of the trial, while reducing the risk that an erroneous ruling by the court will change the outcome of the suit, thereby necessitating a correction on appeal and possibly a new trial, which all entails more time and money. While we do not require defendants to mitigate the damage of court errors in this fashion, we should encourage them to do so.
Reversed and remanded for new trial.
Similarly the new Michigan rules on impeachment by evidence of prior convictions apply to any "witness”. MRE 609.
The only arguable references on cross-examination to the crime of accosting and soliciting were as follows:
"Q [Mr. Damren, prosecutor]: Is your general practice to drive customers from the Rutland Manor place?
"Q How many men were over at that location that evening?
"A Men? I don’t know, I guess it was about 10 people there altogether.
"Q How many people?
"A Ten.
"Q Ten. About how many men?
"A About six.
"Q Were those all the girls that were there?
"A Well, a couple of girlfriends came in and left out, you know.
"Q Who did they leave with?
"Mr. Blank [defense counsel]: Objection.
"A I don’t know.
“Q How old is Patricia?
"A Patricia? She is about 25,
"Q How old is Delores?
"A Delores? 32.
"Q And I believe you are 18, is that correct?
"A Uh-huh.
"Q How long have you known Delores?
"A About a couple of years.
"Q How long have you known Patricia?
"A About a year, I guess.
"Q Did Delores introduce you to Mr. Harris?
"A Yes.
"Q At one of those get togethers?
"MR. BLANK: Objection, relevancy.
"THE COURT: Sustained. Well, no, I will overrule that. I suppose their relationship is germane, it goes — well, you may answer that question.
"Was that at a get together?
"THE WITNESS: That I met — well, no, it wasn’t exactly a get together. I just came over.
"Q Had you taken John home on previous occasions?
“MR. BLANK: Objection, relevancy.
"THE COURT: No, that is overruled.
"A No.”
The only remark that seems prejudicial of its own force — the prosecutor’s reference to "customers” — was successfully challenged by defendant.
We note, in summary disposition of the state’s argument on the point, that defendant has otherwise preserved his objection by specific, timely objection. See 22 Michigan Law & Practice, Trial, §§ 71-74, pp 255-262.
See also People v Sanders, 394 Mich 439; 231 NW2d 639 (1975), holding People v Renno, 392 Mich 45; 219 NW2d 422 (1974), retroactively applicable only when the reference to prior misdemeanors occurred first on cross-examination, the negative implication of which is that Renno applies prospectively regardless of when the reference first occurs. But see People v Jackson, 77 Mich App 392; 258 NW2d 89 (1977), holding Renno inapplicable when the only mention of prior misdemeanors came from the defendant.
The prosecutor in that case expressly referred to the witness’s arrest and conviction. See People v Renno, 392 Mich 45, 63-64; 219 NW2d 422, 429-30 (Coleman, J., dissenting).
The author of the annotation states:
"It is commonly understood by trial lawyers that prejudice implanted or stimulated in the minds of jurors can win trials, that objecting to the prejudicial material may only emphasize it, and that traditional 'curative’ actions taken by trial judges when prejudicial material is objected to are ineffective and unrealistic and may aggravate the potential harm. In order to avoid this dilemma, counsel has often sought to secure in advance the exclusion from trial of prejudicial evidence or other references to prejudicial matters by means of a preliminary motion, sometimes called a motion in limine.” 63 ALR3d 311. (Footnotes omitted.) | [
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M. E. Clements, J.
On July 14, 1977, the defendant was convicted by a jury of breaking and entering an occupied building with intent to commit larceny, MCL 750.110; MSA 28.305. On July 19, 1977, the defendant filed a motion for a new trial, based on the trial court’s refusal to give a requested instruction on the crime of entering without breaking, MCL 750.111; MSA 28.306.
On August 11, 1977, at a hearing on the defendant’s motion, the people opposed the defendant’s motion, arguing that the offense of entering without breaking was not a necessarily included offense to breaking and entering. Based on an unpublished order issued by this Court in People v Loeffler (Docket No. 77-427, dated July 29, 1977), the trial court granted the defendant’s motion. No formal order for a new trial was ever entered.
In a letter dated August 15, 1977, the prosecutor informed the trial court that he did not wish to proceed with a new trial. He recommended that the defendant’s conviction of breaking and entering be vacated, and that judgment of guilt on the charge of entering without breaking be substituted.
At the conclusion of a hearing on the prosecutor’s motion, the trial court set aside its order of a new trial and agreed to sentence the defendant on the lesser included offense of entering without breaking. The defendant was then sentenced to six months in the county jail and given three years probation. The defendant appeals as of right.
The common-law test for lesser included offenses requires "that the lesser must be such that it is impossible to commit the greater without first having committed the lesser”. People v Ora Jones, 395 Mich 379, 387; 236 NW2d 461 (1975). "If the lesser included offense is one that is necessarily included within the greater, the evidence will always support the lesser if it supports the greater.” Ora Jones, 395 Mich at 390. We find that entering without breaking is a necessarily included lesser offense to the crime of breaking and entering. Thus, the trial court committed reversible error in refusing the request to charge on the lesser offense.
A trial court’s erroneous failure to give a requested instruction on a lesser included offense does not entitle the defendant to a new trial. The usual remedy by the appellate court is to remand the case for entry of conviction of the lesser offense. Such cases allow the prosecutor to accept conviction of the reduced charge or, upon proper notice, move for a retrial on the original charge. People v Page, 83 Mich App 412; 268 NW2d 666 (1978). See also, People v Allen, 80 Mich App 786, 788-789; 265 NW2d 47 (1978), People v Thompson, 76 Mich App 705, 708; 257 NW2d 268 (1977), lv den, 402 Mich 829 (1977), People v Lank Thomas, 399 Mich 826; 249 NW2d 867 (1977).
In the case at bar, the trial court perceived its own error and proceeded to correct it by granting the defendant a new trial, rather than by substituting entry of conviction of the lesser offense.
A trial court may set aside and vacate an order for a new trial improvidently granted. People v Beath, 277 Mich 473, 479; 269 NW 238 (1936), People v Poole, 7 Mich App 237, 242; 151 NW2d 365 (1967).
There is no indication that the defendant was prejudiced by the trial court’s actions. We hold, therefore, that the trial court did not err in vacating its order of a new trial and in its stead entering a conviction on the lesser offense of breaking without entering.
The defendant also challenges the trial court’s admission into evidence of a written statement allegedly made by the defendant shortly after his arrest and after he was given the Miranda warnings. The statement was not read to the defendant and was not signed by him. The defendant argues that his refusal to sign the statement constituted a revocation of his previous waiver of the Fifth Amendment right to silence. At a pretrial suppression hearing, the trial court found that the statement was a voluntary confession, that the defendant had knowingly and intelligently waived his Miranda rights, and therefore the statement was admissible at trial.
In reviewing a finding of voluntariness at a Walker hearing, the reviewing court must examine the entire record and make an independent determination of the issue of voluntariness. People v Robinson, 386 Mich 551, 557; 194 NW2d 709 (1972), People v Cutler, 73 Mich App 313, 317; 251 NW2d 303 (1977). The defendant’s testimony at the suppression hearing indicated that he had been given the Miranda warnings, and that he understood their meaning, before making his incriminating statement. Thus, we hold that the people have sustained the burden of proving that the statement was voluntary when made.
The defendant’s other issues of error have been rendered moot by our previous determinations.
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M. J. Kelly, J.
Plaintiff appeals from a Marquette County Circuit Court order granting defendant’s motion to suppress certain statements made by the defendant during interrogation and other physical evidence. Plaintiff raises two issues on appeal. We affirm as to the first issue and reverse as to the second.
Defendant stands charged with inciting to murder, contrary to MCL 750.157b; MSA 28.354(2). This prosecution arises from the following facts:
On March 14, 1977, defendant allegedly telephoned one Kenneth Epps and asked whether he would be willing to cause a fatal accident to an unnamed person for $15,000. Epps told defendant he would have to think about it and later reported the call to the Marquette City Police. The next day, defendant again called Epps and told him to forget the matter and Epps agreed to do so; however, he reported the second call to the police. After the March 15, 1977, telephone conversation, the defendant never again called Epps or initiated any contact with him; all subsequent contacts between the parties were initiated by Epps at the urging of the police.
On March 28, 1977, Epps, at the direction and in the presence of the police, called the defendant. This conversation was tape recorded by the police without the defendant’s knowledge and without having obtained a search warrant. During the next two days, the police obtained four separate search warrants to tape record two telephone conversations and a meeting between the defendant and Epps at a local restaurant and to record and film a second meeting between them. Immediately after the second meeting, the defendant was arrested.
During oral interrogation of the defendant, the police requested that the defendant either write out a statement of what she had told them or sign a statement that had been prepared by them. Defendant replied that she did not want to write anything until she talked to an attorney. Oral interrogation, however, continued for 15 minutes to 1/2 hour thereafter. On September 21, 1977, the trial court granted the defendant’s motion to suppress, ruling that it was unable to separate the information obtained by the police interrogators prior to the request for an attorney from that obtained subsequent to that request and therefore suppressed the entire interrogation. Further, the court ordered that the first recorded telephone conversation be suppressed because it was made without a warrant and also suppressed the other recordings and films obtained pursuant to warrants on the grounds that they had no separate source independent of the first illegal recording.
The first issue raised on appeal is whether all of the defendant’s statements made in the course of the interrogation were rendered inadmissible by further questioning after she said that she did not want to reduce her statement to written form until she had seen an attorney.
Plaintiff argues that the police interrogation of defendant did not have to be terminated under Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966), merely because she indicated that she desired to speak to an attorney before reducing her oral statements to writing. Alternatively, the plaintiff asserts that, even if defendant’s statement should have terminated the interrogation, her oral statements up to the time of her request for an attorney should be admitted because they are severable from the statements made by her after the point at which questioning should have been terminated. We reject both of these contentions.
The decision of a trial judge following a hearing held under People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965), is reversed only if this Court has a "definite and firm conviction that a mistake has been committed”. People v Bradley, 54 Mich App 89, 98; 220 NW2d 305 (1974). The reviewing court, after examining the entire record, must make an independent determination and may reverse only when convinced that the trial court’s decision was clearly erroneous. People v Brannan, 64 Mich App 374, 376; 236 NW2d 80 (1975), lv gtd, 395 Mich 812 (1975).
Plaintiff argues that the interruption of the interrogation by defendant did not require termination of the interview. Plaintiff relies on United States v Frazier, 155 US App DC 135; 476 F2d 891 (1973), and People v Bradley, supra, for this argument. However, this reliance is misplaced because in both cases the defendant failed to specifically state that he wished to consult with counsel. In People v Brannan, supra, we held that questioning of the accused should have ceased as soon as the accused indicated that "he’d have to check with a lawyer” before he could decide whether to submit to a Polygraph test. Characterizing the reference to an attorney as a "red flag”, the Court of Appeals’ majority said:
"This should have stopped the interrogation forthwith as Miranda requires that if a suspect indicates in any manner and at any stage of the process he wishes to consult with an attorney, there can be no questioning. Miranda v Arizona, 384 US 436, 477; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966), People v Ansley, 18 Mich App 659, 667; 171 NW2d 649 (1969).” 64 Mich App at 378-379.
Similarly, in People ex rel Wayne Prosecutor v Recorder’s Court Judge, 79 Mich App 495; 261 NW2d 63 (1977), this Court held that an examining magistrate did not abuse her discretion in holding that a criminal defendant’s statement to a police officer was not admissible where the statement was made subsequent to Miranda warnings, and was given after the defendant indicated a desire for counsel by asking the interrogating officer whether he thought she should have an attorney. An ambiguous indication of an interest in having counsel requires cessation of police interrogation. People v Lewis, 47 Mich App 450; 209 NW2d 450 (1973), People v Sparks, 82 Mich App 44; 266 NW2d 661 (1978). The crucial factor in the present case is that the defendant indicated a desire to consult with an attorney; the motivation behind this request is irrelevant. The request for counsel is, in itself, enough to require a termination of interrogation.
As to plaintiffs contention that the statements obtained in violation of defendant’s rights are severable from those obtained previously, the record does not support this argument. The trial court specifically noted in its opinion that the substantive content of defendant’s statements had not been introduced at the hearing. The police denied that there had been a tape recording made of the interrogation. Although police officers testified that there were no new areas of inquiry after defendant’s request for counsel, the trial court found that it was practically impossible to separate the part of the interview conducted after questioning should have been terminated from the rest of the interview. If there had been a tape recording of the interrogation, as was the case in People v Van Epps, 59 Mich App 277; 229 NW2d 414 (1975), then such a separation would be possible. In the absence of a recording, however, the determination of the trial court was not clearly erroneous.
The second issue raised in this appeal is whether a warrantless recording of a telephone conversation between an informant and a defendant prevents the use of evidence obtained under subsequent search warrants. On this question, we find that the trial court erred in suppressing the physical evidence and reverse.
The "fruits of the poisonous tree” doctrine is employed to discourage unlawful police practices by depriving the law enforcement officers of advantages flowing from the primary illegality. People v Jones, 66 Mich App 223, 230; 238 NW2d 813 (1975). Thus, if law enforcement agents have exploited a primary illegality, any evidence so acquired must be suppressed. In the present case, however, the defendant has failed to establish that the tape recordings and films were special advantages necessarily flowing from the first illegal telephone monitoring.
The record indicates that the first, warrantless, recording need not have been used to establish probable cause for the issuance of the subsequent search warrants. In People v Beavers, 393 Mich 554; 227 NW2d 511 (1975), the Court held that warrantless participant monitoring of a conversation between a confidential police informant and a defendant is inadmissible as a violation of the defendant’s Fourth Amendment rights. Id. at 566. But, the Court stated that the admissibility of the informant’s testimony is not affected thereby, it is only the monitored account of the conversation which must be suppressed. Id. at 567. Here, the informant’s testimony could have provided a basis for the subsequent search warrants even if no recording of the first telephone conversation had been made; there is, therefore, no special advantage flowing from the illegal activity which should be deprived the law enforcement agency.
In any event, the record shows that the conversation recorded in violation of Beavers did not constitute a substantial portion of the case against defendant. There had been two previous conversations before the police became involved in the investigation. The officer testifying at the probable cause hearing for the first search warrant had questioned the informant about the original conversation and had also listened to the informant’s version of the first monitored conversation. This information, standing alone, would have been sufficient to establish probable cause. Thus, the trial court’s order suppressing the evidence obtained pursuant to the search warrants must be reversed.
Affirmed in part; reversed in part. Remanded. | [
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On Remand, On Rehearing
Per Curiam.
We granted the prosecutor’s motion for rehearing in this cause on August 24, 1978, in order to reconsider our opinion in People v Yarbrough (On Remand), 84 Mich App 779; 270 NW2d 689 (1978).
This case was originally decided in People v Yarbrough, 78 Mich App 81; 259 NW2d 248 (1977). The facts are stated in the original opinion. This Court reversed defendant’s conviction on the ground that the trial court had failed to address defendant’s motion for mistrial which had been withdrawn and later renewed by defense counsel. On appeal by the prosecutor, the Supreme Court issued the following order:
"Leave to appeal is considered April 28, 1978, and, pursuant to GCR 1963, 853.2(4), in lieu of leave to appeal, the Court of Appeals decision is vacated and the case is remanded to the Court of Appeals for consideration of the question of whether, assuming pro arguendo that the trial court should have entertained defendant’s final request for mistrial, it would have been error for the trial court to refuse to grant said motion. Unless it would have been error for the trial court to refuse to grant the motion, reversal on this basis should not be ordered. In addition, the matters raised by defendant in his application for cross-appeal are remanded to the Court of Appeals for such further consideration as the Court of Appeals shall deem necessary. This Court does not retain jurisdiction.” 402 Mich 920 (1978).
Addressing the above question, we find that it would not have been error to refuse to grant the motion for mistrial. The basis for this motion was that three references to defendant’s incarceration were made during the trial. The first reference was made by a prosecution witness who, when asked on direct examination whether he knew the defendant, answered, "Yes, I met him in the penitentiary, he locks [sic] four cells from me.” The prison reference here was a nonresponsive, volunteered answer to a proper question. It was not cause for granting a mistrial. See People v Kelsey, 303 Mich 715, 717; 7 NW2d 120 (1942), compare People v Greenway, 365 Mich 547; 114 NW2d 188 (1962).
The second reference to defendant’s incarceration occurred during the reading of witness Wilson’s preliminary examination testimony to the jury. The prosecutor asked Wilson to relate a conversation he had had with the defendant, and defense counsel objected, demanding a foundation as to time and place. No error resulted when this necessary foundation was supplied, especially since a cautionary instruction was given by the court concerning the use of the testimony.
The third mention of prior time in jail took place when the prosecutor asked Wilson’s parole officer whether he had made any recommendations regarding Wilson. The parole officer answered, "I recommended that he not be placed in the same block with Mr. Yarbrough”. While we do not condone the prosecutor’s question, and in fact suspect that had the prosecutor been better prepared, his witness would not have referred to defendant’s incarceration, we do not find that this one remark necessitated the granting of a mistrial. By this time the jury already knew that defendant had been in prison, due to the foundational facts elicited previously at defense counsel’s request. In addition, the trial court gave a second cautionary instruction regarding this matter at the conclusion of the proofs.
For the above reasons we find that refusal to grant defendant’s renewed motion for a mistrial would not have been error. Since defendant’s other allegations of error are also without merit, we affirm defendant’s conviction.
Affirmed.
F. J. Borchard, J., did not participate.
We adhere to the legal conclusions as stated in our original opinion with respect to the issue of the trial court’s duty to consider defendant’s motion for mistrial. Our opinion here is directed solely to answering the question posed by the Supreme Court, infra. | [
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Per Curiam.
The defendant, Thomas Schuster, was originally charged in a two-count information with receiving or concealing stolen property, MCL 750.535; MSA 28.803, and unlawfully taking possession of and driving away a motor vehicle, MCL 750.413; MSA 28.645. As part of a plea bargain the prosecutor agreed to drop the latter charge if the defendant pled guilty and was in fact guilty of the receiving or concealing charge. The defendant’s plea to receiving or concealing was accepted by the trial judge, and the defendant was sentenced to 3 years, 3 months to 5 years in prison. The defendant appeals by right. GCR 1963, 806.1.
The facts adduced at the plea proceeding tended to show that the defendant himself took the automobile without any permission from the owner and drove it away with the intent to sell it.
It is readily apparent that no factual basis was established to support the defendant’s conviction of receiving qr concealing. The statute which prohibits buying, receiving, or aiding in the conceal ment of stolen goods does not encompass the thief himself. People v Kyllonen, 402 Mich 135; 262 NW2d 2 (1978). Therefore, the defendant’s conviction must be set aside.
The prosecutor is not barred from reinstating the charge of unlawfully taking possession and driving away a motor vehicle under People v McMiller, 389 Mich 425; 208 NW2d 451 (1973). McMiller prohibits the state from charging the defendant with a higher offense after a guilty plea, arising out of the same transaction, has been accepted. In the present case the crimes of receiving or concealing stolen property and unlawfully taking possession and driving away a motor vehicle are both punishable by a five year maximum prison sentence. Therefore, the latter charge is not a higher offense, and the prosecutor may reinstate it if he feels that the ends of justice will be served thereby.
Reversed and remanded for proceedings not inconsistent with this opinion. | [
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Per Curiam:.
Defendant was charged with robbery armed in violation of MCL 750.529; MSA 28.797, and possession of a firearm while committing a felony in violation of MCL 750.227(b); MSA 28.424(2). A jury trial resulted in a finding of guilty as to the armed robbery only. Defendant was sentenced to 11 to 25 years in prison.
An appeal as of right presents us with three issues, only one of which requires discussion.
The prosecutor’s case in chief included the testimony of the complainant, Mrs. Hall, who stated that on Sunday, February 6, 1977, at 10:50 a.m. she arrived near her church, parked her car, and was exiting the car when she was confronted by the defendant. She testified that the defendant pulled a sawed-off shotgun from his coat, pointed it at her face, and took both her car and her purse containing about $23.
After the defendant’s arrest, Sergeant Sommers, the officer in charge of the case, conducted a live lineup at which an attorney was present. Mrs. Hall, who had identified defendant at a photo showup, again identified the defendant.
Defense counsel had announced in his opening statement that the defense would be alibi. A friend of the defendant, Robin Brown, testified that she was with the defendant from 10 p.m. Saturday, February 5 until about 2 p.m. Sunday, February 6.
Defendant’s sister testified that Brown and the defendant came to her home on Sunday at about 11:30 a.m. Both Brown and the defendant’s sister testified that the Monday immediately following the Sunday they saw and spent time with the defendant he went to the Recorder’s Court building and was arrested.
The defendant did not testify.
The prosecutor called Officer Wood in rebuttal who testified that he arrested the defendant twice, once on Sunday, February 6, 1977, at 1:15 p.m., and again on Monday, February 14, 1977. Officer Wood testified that the first arrest was for an unrelated armed robbery and possession of a stolen motor vehicle. The second arrest was for the crime involved in this case.
Immediately after the officer stated that the defendant was arrested on February 6, 1977, for possession of a stolen motor vehicle and armed robbery, the defendant objected and moved for a mistrial. The court ruled that it would allow the testimony. Following argument on the objection, the trial court stated that it would "reserve a ruling”. When it became apparent that the first arrest was for an incident unrelated to the crime charged the defendant again objected.
After some discussion on the objection, the jury was excused. The prosecutor argued that he was attempting to rebut the alibi defense by showing that the defendant was arrested for the crime in this case on February 14, not February 7. The prosecutor argued that if the defendant had spent the Saturday night and Sunday morning before his arrest with Robin Brown and his sister as they had indicated, that Saturday and Sunday was the weekend after the robbery, not the weekend of the robbery.
The defendant contended that the mention of the first arrest and the testimony that it was for the possession of a stolen motor vehicle and an armed robbery of another person, required that a mistrial be granted. After the jury returned, the trial court instructed them to disregard the previous statements of the rebuttal witness. The prosecutor and the court then elicited from the witness the fact that he had arrested the defendant on both February 6 and February 14.
On appeal defendant asserts that the admission of rebuttal testimony revealing that a defendant was recently arrested for an unrelated crime similar to that which was charged requires a new trial.
Rebuttal evidence is that which is introduced "by one party to contradict, repel, explain or disprove evidence produced by the other party and tending directly to weaken or impeach the same”. People v Wright, 74 Mich App 297, 300; 253 NW2d 739 (1977), quoting People v Utter, 217 Mich 74, 83; 185 NW 830 (1921). In this case the rebuttal evidence disclosing that the defendant went to Recorder’s Court and was arrested on February 14, 1977, and not on February 7, 1977, fits squarely within the bounds of proper rebuttal. It removes the exculpatory effect of the defense witnesses’ testimony that they were with the defendant the Saturday and Sunday before the Monday on which he was arrested. The rebuttal evidence tends to show that the defendant’s witnesses may have spent the 12th and 13th of February with the defendant and not the 5th and 6th of February, the weekend of the crime.
That part of the rebuttal testimony which revealed that the defendant was arrested on February 6 at 1:15 p.m. is also proper because it contradicts the testimony of Robin Brown who testified that she was with the defendant until about 2 p.m. that Sunday. It also contradicts the testimony of the defendant’s sister who testified that the defendant and Robin stayed at her home until 2:30 or 3 or 4 p.m.
Having established those facts regarding the February 6 arrest which were relevant to proper rebuttal, the prosecutor asked specifically what the defendant was arrested for on February 6. The officer testified that he arrested the defendant for an unrelated armed robbery and possession of a stolen car. This testimony does not refute any part of the defendant’s alibi defense; it is not, therefore, proper rebuttal testimony. People v Wright, supra, People v Utter, supra.
This Court recently discussed the use of evidence of a defendant’s bad acts in People v Wilkins, 82 Mich App 260; 266 NW2d 781 (1978). The general rule stated in that case was that: "evidence of other bad acts may be introduced only when the matter which they tend to prove is disputed”. See also People v Lundberg, 364 Mich 596; 111 NW2d 809 (1961). The Court listed three exceptions to the general rule. The statement in this case could have fallen within that exception which would allow a prosecutor to show identity by showing a common modus operandi, if the statement had been offered in the prosecutor’s case in chief and if a proper foundation could have been laid. People v Wilkins, supra, People v Utter, supra. But even if the requirements of Wilkins were met, the statement would still have to be more probative than prejudicial. Wilkins, supra.
The prosecutor, on appeal, tacitly admits that the statement which implicated defendant in an unrelated armed robbery and possession of a stolen vehicle was an error. He argues that the error was harmless.
The standard for harmless error involves a dual inquiry: 1) was the error so offensive to the maintenance of a sound judicial system as to require reversal? and 2) if not, was the error harmless beyond a reasonable doubt? People v Sherman Hall, 77 Mich App 456; 258 NW2d 517 (1977), People v Robinson, 386 Mich 551, 562-563; 194 NW2d 709 (1972).
The purpose of the first criterion is to deter prosecutorial and police misconduct. People v Swan, 56 Mich App 22; 223 NW2d 346 (1974). In People v White, 38 Mich App 651, 654; 197 NW2d 121 (1972), this Court held that a reference to an officer’s attempt to buy heroin from the defendant was so prejudicial as to require reversal even though the testimony also indicated that she did not sell heroin. A major consideration in the Court’s decision was that the improper testimony was elicited by a question from the prosecutor. In People v Measles, 59 Mich App 641, 642-643; 230 NW2d 10 (1975), the fact that a security officer indicated that he was referring to notes which also contained references to another incident with the defendant was not considered grounds for reversal. In that case, however, the security officer’s statement was not solicited by the prosecutor.
The prosecutor specifically elicited the information that the defendant was arrested for armed robbery and possession of a stolen motor vehicle in this case. The prosecutor had obtained an answer to the relevant question concerning the time of the arrest but proceeded to ask "What did you arrest him for?” When the witness stated possession of a stolen motor vehicle the prosecutor continued by asking "Anything else?” The witness replied "Armed robbery”. In eliciting these responses and repeating them, the prosecutor improperly used rebuttal to assert new evidence of guilt, People v Utter, supra, and improperly injected evidence of a recent bad act which was nearly identical to that for which the defendant was being tried. People v Measles, supra, People v White, supra.
Testimony of the fact that the defendant was arrested for an unrelated crime similar to the one charged clearly violated not only the general rule prohibiting evidence of unrelated bad acts but also the rules concerning the use of rebuttal which find their genesis in the 1885 case of People v Quick, 58 Mich 321, 323; 25 NW 302 (1885).
More significantly, the Michigan Supreme Court in People v Robinson, supra, held that the facts in that case, in which the prosecutor asked questions which revealed a crime unrelated to the charge, required reversal in accord with the first prong of the harmless error rule.
In Robinson the Court stated:
"Here, without regard to the result reached in this case, the prosecutor’s deliberate injection of this im proper evidence and the trial court’s acquiescence in it are such affront to the integrity of the trial process that we will not countenance it”. 386 Mich at 563.
The error here was not harmless. It was "so offensive to the maintenance of a sound judicial system” that it requires reversal.
Reversed and remanded for a new trial. | [
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Per Curiam.
We believe MCL 257.240; MSA 9.1940, set forth as follows, means just what it says:
"The owner of a motor vehicle who has made a bona fide sale by transfer of his title or interest and who has delivered possession of such vehicle and certificate of title thereto properly endorsed to the purchaser or transferee shall not be liable for any damages thereafter resulting from negligent operation of such vehicle by another.”
Defendant Thunder Bay Manufacturing Corporation made a bona fide sale to defendant Rice and delivered possession of the vehicle and the certificate of title properly endorsed. Therefore, under the statute, defendant Thunder Bay was not liable for damages resulting from negligent operation by another.
None of the cases cited in the dissenting opinion involves car license plates. Failure to remove the plates does not preclude the application of MCL 257.240; MSA 9.1940._
We further note that plaintiff-appellee did not see fit to file a brief.
We reverse the order denying defendant-appellant’s motion for summary judgment. Defendant’s motion for summary judgment is hereby granted.
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D. R. Freeman, J.
On May 14, 1976, plaintiff was served by defendant with a civil citation alleging a wilful violation of the Michigan Occupational Safety and Health Act, MCL 408.1001 et seq.; MSA 17.50(1) et seq. (hereinafter OSHA). The citation fixed a proposed penalty of $10,000. Section 41 of the OSHA provides that if an employer does not petition the Department of Labor (hereinafter the Department) for modification or dismissal within 15 working days of receipt of the citation and proposed penalty, the citation and proposed penalty shall be deemed a final order of the Board of Health and Safety Compliance and Appeals (hereinafter the Board). On June 16, 1976, plaintiff petitioned the Department to permit tardy filing of a petition. By way of excuse for its failure to timely contest the citation, plaintiff alleged that a criminal complaint had also been issued against it on May 6, 1976, as a result of the alleged wilful violation of OSHA; that the criminal complaint, like the civil citation, called for a $10,000 fine; that the president of plaintiff corporation mistakenly believed that the civil citation related solely to the pending criminal action; that, because the president of plaintiff corporation had already retained legal counsel to handle the criminal proceeding, he mistakenly believed that he need take no additional action with regard to the civil citation; that the president of plaintiff corporation did not notify his counsel of the civil citation until June 10, 1976; and that plaintiff had a meritorious defense to the civil citation involving whether the Department would be able to prove that the violation was wilful.
On the basis of § 41 of OSHA, the Department rejected plaintiffs petition ruling that it was not timely and that neither the Department nor the Board had authority to extend or waive the 15-working-day time period. Plaintiff sought review of this decision in circuit court pursuant to § 44 of OSHA and the Administrative Procedures Act of 1969, MCL 24.201 et seq.; MSA 3.560(101) et seq. (hereinafter the APA). The circuit court vacated defendant’s decision rejecting plaintiffs untimely petition and ordered the Department to afford plaintiff a full evidentiary hearing on the citation. Defendant appeals as of right.
Both the civil and the criminal proceeding arose out of an accident that occurred at plaintiffs construction site. The wall of a trench collapsed killing one of plaintiffs employees. The Department alleged in both the civil and the criminal proceeding that plaintiff had wilfully failed to shore and slope the trench as required by OSHA and regulations promulgated pursuant thereto. On appeal to the circuit court, plaintiff asserted that, on June 14, 1976, following a preliminary examination, the criminal complaint had been dismissed because the prosecution had failed to establish the element of wilfulness.
Section 41 of OSHA provides:
"Within 15 working days after receipt of a citation and proposed penalty, if any, an employer may petition the appropriate department for a grant of additional time for compliance modiñcation, or dismissal of the citation and any proposed penalty. Within 15 working days after the employer has received a citation, an employee or employee representative may petition the appropriate department, alleging the period of time fixed in the citation for the abatement of the violation is unreasonable. When a petition is submitted to the department by the employer, the employer shall transmit a copy immediately to the affected employees or the employee representative. When a petition is submitted to the department by an employee or employee representative, the department shall submit a copy of the petition immediately to the employer after, if so requested by the employee or employee representative, deleting the name of the employee or employee representative. If the employer, employee or employee representative does not petition the department within the 15 working days after receipt of the citation and proposed penalty if any, the citation or proposed penalty shall be deemed a ñnal order of the board. Upon receipt of a petition, the appropriate department may modify the time schedule for compliance, may modify or dismiss the citation and any proposed penalty and shall notify the employer of its decision within 15 working days after receipt of the petition. The employer shall promptly post the notice of the department’s decision together with the appropriate citation. The decision of the department shall become final 15 working days after receipt of the decision. Within 15 working days after receipt of the department’s decision an employer may appeal the decision to the board. Within 15 working days after the employer has received the director’s decision, an employee or employee representative may appeal the decision to the board with respect to the violation abatement period.” (Emphasis added.) MCL 408.1041; MSA 17.50(41).
Section 42 provides that, where an employer timely petitions for review, the Board shall afford an opportunity for an evidentiary hearing before a hearing officer; that the hearing officer shall report his final decision to the Board; and that if, within 30 days, no board member directs that the hearing officer’s decision be reviewed by the Board, it shall become a final order of the Board. Section 44 of OSHA provides that the person aggrieved by an order of the Board may obtain judicial review pursuant to the APA.
We perceive the underlying issue in this case to be whether OSHA vests the Board with discretion to entertain an employer’s petition for modification or dismissal of a citation and penalty filed after the 15-working-day time period has expired. We hold that it does.
Certain well established rules of statutory construction were succinctly stated in Webster v Rotary Electric Steel Co, 321 Mich 526, 531; 33 NW2d 69 (1948):
"Although we may not usurp the law-making function of the legislature, the proper construction of a statute is a judicial function,* * * and we are required to discover the legislative intent. * * * .
"Where, however, the language is of doubtful meaning, a reasonable construction must be given, looking to the purpose subserved thereby. * * * Its occasion and necessity are matters of judicial concern, * * * and its purpose should prevail over its strict letter * * * . Injustice in its application should be prevented, * * * and absurd consequences avoided * * * .” (Citations omitted; emphasis added.)
The clear purpose of the 15-working-day/final order provision is to assure that employers who have been cited for violations of OSHA will promptly respond. However, while §41 of OSHA provides that if an employer does not petition the Department within 15 working days, the citation and proposed penalty shall be deemed a final order of the Board, OSHA does not contain language expressly empowering the Board to set aside such a final order and entertain an untimely petition, or language prohibiting it from doing so. The statute is ambiguous in this regard. .
We note that the Board, in the past, has construed § 41 as fixing a jurisdictional time limit of 15 working days for administrative review of a citation and proposed penalty. Department of Health v Detroit Diamond, Inc, Board of Health and Safety Compliance & Appeals Docket No. NOA 75-64AA (1976). While the construction given a statute by those charged with the duty of administering it is entitled to respectful consideration, especially when the statute is ambiguous, such an administrative interpretation is not binding on the Courts and must be rejected if not in accord with the intent of the Legislature. Howard Pore, Inc v State Comm’r of Revenue, 322 Mich 49, 66; 33 NW2d 657 (1948).
A statute should be construed with an eye toward the result. Cronin v Minster Press, 56 Mich App 471, 476; 224 NW2d 336 (1974). The result of the Board’s construction would be that every employer who petitioned after the 15-working-day time limit would be denied review of the citation and penalty by the Department, would be denied an evidentiary hearing before a hearing officer and would be denied review by the Board, all without regard to the reason it failed to timely petition and without regard to whether it had a meritorious defense. Even were the employer able to show that it was impossible for it to meet the 15-work-ing-day deadline, and that it had an absolute defense, its belated petition would be dismissed, the citation and proposed penalty would be deemed the final order of the Board and the employer’s opportunity to contest the citation in an evidentiary hearing would have been irretrievably lost. Such a construction works an injustice and should be avoided. Stanley v Hinchliffe & Kenner, 395 Mich 645, 657; 238 NW2d 13 (1976); Webster v Rotary Electric Steel Co, supra; Zawacki v Detroit Harvester Co, 310 Mich 415, 420; 17 NW2d 234 (1945). We do not believe that the Legislature intended this result. Accordingly, we reject the Board’s construction and hold that it does have jurisdiction to entertain an untimely petition.
The scheme of administrative review provided for in §§ 41 and 42 of OSHA indicates the Legislature’s solicitude for the rights of employers cited for violations. Further, although the present Michigan statute in many ways parallels the earlier enacted Federal occupational safety & health act, 29 USC 651 et seq., it does not include the Federal provision expressly stating that a final order entered by virtue of an employer’s failure to timely contest a citation shall not be reviewable by any court or agency. 29 USC 659(a). We interpret the 15-working-day/final order provision in our statute to mean that an employer waives administrative review as of right when he fails to timely contest a citation. By implication, however, the Board is vested with discretion to review such a final order and to determine whether it should be set aside and an untimely petition accepted.
The general similarity between this situation and a motion to set aside a default judgment entered in an ordinary civil suit is obvious. See Frank Irey, Jr., Inc v Occupational Safety & Health Review Comm, 519 F2d 1200, 1205-1206 (1975). We hold, therefore, that the Board, in its discretion, may set aside a final order such as was entered here and grant a belated petition for review where an employer shows "good cause” for having failed to meet the 15-working-day deadline and that it has a meritorious defense. Without suggesting that it is directly applicable here, we refer the Board for general guidance in this matter to GCR 1963, 520.4.
It should be made crystal clear that we do not intend by our construction of § 41 of OSHA to appreciably diminish the incentive created by the 15-working-day/final order provision for an employer to promptly respond to a civil citation issued by the department. We hasten to add, therefore, that the "good cause” standard in this context is not necessarily identical to that developed in cases involving motions to set aside default judgments in ordinary civil suits. We leave it to the wisdom of the Board to determine whether the effective enforcement of OSHA dictates that it apply a stricter standard, and we express no opinion at this time as to whether the allegations made by this plaintiff, if established as true to the satisfaction of the Board, constitute "good cause”.
The circuit court’s order is hereby vacated and the matter is remanded to the Board for further proceedings not inconsistent with this opinion.
We are cognizant that § 44 of OSHA affords a right to judicial review of the Board’s orders; and that § 106 of the APA provides that the reviewing court shall set aside an agency decision if substantial rights of the petitioner have been prejudiced because the decision is not supported by competent, material and substantial evidence on the whole record, or because it was arbitrary, capricious or clearly an abuse of discretion. However, in our view, plaintiff would not be entitled to have this order set aside and the matter remanded for an evidentiary hearing on either of these grounds.
In this case, the citation became a final order of the Board solely by virtue of the fact that plaintiff did not timely contest it; no adversarial hearing was had, no evidentiary record was made. If plaintiff were entitled to have the Board’s order set aside for lack of evidentiary support, every employer who, with or without justifiable excuse, failed to meet the 15-working-day deadline would be entitled to have the resulting order set aside. The 15-working-day/final order provision would be rendered nugatory. We note that § 78 of the APA expressly provides that disposition may be made of a contested case by waiver or default, and conclude that the competent, material and substantial evidence requirement is inapplicable to an order such as is involved here.
Again, if the 15-working-day/final order provision were jurisdictional, the Board would be without discretion to set aside an order entered pursuant thereto. This is precisely the position the Department took in this case. If neither the Department nor the Board exercised discretion, on appeal, the circuit court could not reverse for abuse of discretion.
We deem it appropriate, at this time, to leave for the Board the delineation of the procedure by which it will afford an employer an opportunity to establish "good cause” and a meritorious defense, subject, of course, to judicial review pursuant to § 106(l)(c) of the APA. In any case, however, an order denying an untimely petition for review would be a final order governed by the requirements of § 85 of the APA, and the Board’s findings of fact and conclusions of law as to the absence of "good cause” or a meritorious defense must be set forth with sufficient clarity to permit judicial review. | [
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M. J. Kelly, J.
Defendant appeals his conviction of breaking and entering a building with intent to commit larceny, contrary to MCL 750.110; MSA 28.305. A review of the record in this case indi cates that defendant’s conviction must be reversed due to the misconduct of the prosecutor at trial. The course of conduct adopted demonstrates a deliberate and concerted effort to introduce highly prejudicial but totally irrelevant material at trial for the sole purpose of gaining a conviction at any cost. Such a course of conduct is offensive to our judicial system, which places upon the prosecutor not the duty to gain a conviction, but the obligation to do justice. As this Court said in People v Brocato, 17 Mich App 277; 169 NW2d 483 (1969):
" 'It is as much his [the prosecutor’s] duty to refrain from improper methods calculated to produce a wrongful conviction as it is to use every legitimate means to bring about a just one.’ ” Brocato, supra, at 304, quoting Berger v United States, 295 US 78, 88; 55 S Ct 629; 79 L Ed 1314 (1935).
Upon retrial, the prosecutor may not, upon pain of personal discipline as well as further reversal, question defendant about his drug habits, the narcotics paraphernalia found on him at the time of his arrest, People v Mullins, 79 Mich App 515; 261 NW2d 67 (1977), People v Lorenzo Williams, 63 Mich App 389; 234 NW2d 537 (1975), or ask that he waive his privilege regarding his notes or communications with his attorney. People v Brocato, supra, at 303. The prosecutor must also not question defendant’s character witnesses, who testify only about defendant’s reputation for truth and veracity, concerning their knowledge of defendant’s arrest record. People v Lewis Robinson, 70 Mich App 606; 247 NW2d 308 (1976), People v McClow, 40 Mich App 185; 198 NW2d 707 (1972).
Finally, the prosecution shall not ask anyone whether there have been previous breakings and enterings at the courthouse in order to determine that there was money kept at the courthouse.
This Court suggests that this reprimand will alert the trial court to keep inferences of misconduct, as well as instances, from recurring at a new trial.
Reversed.
D.E. Holbrook, P.J., concurs in the result only.
One issue pertains to the scope of the prosecutor’s cross-examination of a proposed character witness. Át first the prosecutor had a favorable ruling from the trial judge but after recess the trial court, having referred to the cases cited by defense counsel, People v Lewis Robinson, 70 Mich App 606; 247 NW2d 308 (1976), and People v McClow, 40 Mich App 185; 198 NW2d 707 (1972), indicated a change of perspective but did not reverse his ruling. We would not base our reversal on this aspect alone because the prosecutorial misconduct here was nurtured by the trial court’s failure to rule unequivocally.
The prosecutor persisted in trying to get into evidence narcotics paraphernalia clearly having been ruled inadmissible as being irrelevant in a prosecution for breaking and entering. The prosecutor succeeded in showing the jury that defendant was apparently a drug addict thus circumventing the trial court’s order.
The prosecutor persisted in forcing defendant to exercise his attorney-client privilege concerning notes written to his attorney during the trial for the ostensible purpose of leading the jury to believe that incriminating information was being suppressed.
Arrests for which convictions were not obtained. | [
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M. E. Clements, J.
On December 20, 1976, the Ann Arbor City Council passed a resolution pursuant to MCL 117.9(8); MSA 5.2088(8), annexing six parcels of land from Pittsfield Township, henceforth collectively referred to as the "airport parcel”. The airport parcel is an irregularly shaped piece of land consisting of 700 acres, only 330 feet of which is physically connected with a city boundary. On January 13, 1977, Pittsfield Township commenced a proceeding in the lower court to have the annexation declared null and void.
On February 2, 1977, an Ann Arbor City Council resolution annexed a parcel of land known as the Eisenhower Parkway, which was also a part of Pittsfield Township. This parcel, which lies between Stone School Road on the west and Packard Road on the east, consists of a roadway with two westbound lanes and two eastbound lanes separated by a median. Plaintiff also requested that the court void this annexation.
Plaintiff and defendant each brought a motion for summary judgment pursuant to GCR 1963, 117.2(3) for the reason that there was no genuine issue of material fact. In addition, plaintiff moved for summary judgment under GCR 1963, 117.2(2) on the ground that the defendant had failed to state a valid defense to the claim asserted against it.
The trial court refused to decide the question of whether or not the airport parcel was used as a park, saying that there were both recreational and commercial usages of the property. The trial court did find that the attempted annexation of the airport property was not legal because it created an enclave of township property that was politically deadlocked, the creation of which amounted to gerrymandering. The trial court also found that the boundary of the attempted airport annexation was not a reasonable configuration, and was not proportionately adjacent or contiguous to the city, and so could not properly be annexed by resolution.
The trial court found that the parkway was not a park nor was it vacant property, and that its annexation would also create an illegal township enclave within city boundaries. Having made these findings, the trial court granted the plaintiff’s motion for summary judgment, thereby voiding the attempted annexation of these two properties.
MCL 117.9(8); MSA 5.2088(8) provides the procedure for an annexation by resolution when certain conditions are met:
"(8) Where the territory proposed to be annexed to any city is adjacent to the city and consists of a park or vacant property located in a township and owned by the city annexing the same, and there is no one residing thereon, such territory may be annexed to the city solely by resolution of the city council of the city * * *
The defendant city argues that the terms of the statute, with which it has complied, are exclusive. We disagree. Michigan appellate courts have traditionally held that additional factors to be considered by trial courts in annexation cases include contiguity, gerrymandering, and reasonable compactness of boundaries. Saginaw v Saginaw County Board of Supervisors, 1 Mich App 65; 134 NW2d 378 (1965), Owosso Twp v Owosso, 25 Mich App 460; 181 NW2d 541 (1970), aff'd, 385 Mich 587; 189 NW2d 421 (1971). The judiciary must apply the test of reason to insure compliance with legislative intent. Owosso Twp, supra, 25 Mich App at 467.
We conclude that the trial court in the case at bar acted properly when it examined the proposed annexations to determine whether they were reasonably contiguous with the city and whether they created illegal enclaves.
An enclave is defined as a tract of territory enclosed within a foreign territory. In Genesee Twp v Genesee County, 369 Mich 592, 603; 120 NW2d 759 (1963), the Supreme Court quoted ex tensively from 37 Am Jur, Municipal Corporations, § 27, and included the following observation:
"When contiguity is required by statute, the attempted consolidation of 2 municipalities which are contiguous at 2 points with an intervening space between is unlawful, since it would leave a tract of territory within but not part of the consolidated municipality.”
This has been taken as an invalidation of enclaves created by annexation. Saginaw v Saginaw County Board of Supervisors, supra.
The trial court found that the proposed airport annexation would create a triangular enclave of township surrounded by city territory. There was, thus, no error in the grant of summary judgment to the plaintiff on the proposed airport annexation.
We note that there is no evidence of improper gerrymandering in the city’s actions. As we said in Grand Haven Twp v Grand Haven (On Remand), 38 Mich App 122; 196 NW2d 3 (1972), the irregular boundaries of a proposed annexation can be explained by the fact that the city bought the property involved parcel by parcel as it became available on the public market.
The defendant City of Ann Arbor claims that it should be allowed to annex Eisenhower Parkway, which it owns in fee, according to the terms of MCL 117.9(8); MSA 5.2088(8), because it is "vacant property”. But the fact that no one does or can reside on the property does not render it vacant. According to the terms of the statute:
"(8) Where the territory proposed to be annexed to any city is adjacent to the city and consists of a park or vacant property located in a township and owned by the city annexing the same, and there is no one residing thereon, such territory may be annexed to the city solely by resolution of the city council of the city * * * .” (Emphasis added).
In construing the words of a statute, effect must be given to each part of a sentence, so as not to render any other part nugatory. Melia v Employment Security Comm, 346 Mich 544, 562; 78 NW2d 273 (1956). If we said that vacant land is the same as land upon which no one resides, we would render part of the sentence in the statute redundant. According to MCL 8.3a; MSA 2.212(1), words are to be construed according to their common and approved usage. Webster’s New Collegiate Dictionary (1974 ed), p 1290, defines vacant land as that which is not put to use.
The statute requires that the land to be annexed must (a) be owned by the city and (b) consist of (1) a park or (2) land which is not resided upon and which is not being utilized for any beneficial purpose. However, the Eisenhower Parkway is in constant use as a road, and has not been abandoned. Therefore, it is not "vacant property” for purpose of the statute, and the trial court did not err in voiding the annexation.
Further, annexation of the roadway would result in the creation of an enclave of township property resided in by over 100 persons. The creation of an enclave is not permitted by Michigan courts, as we have discussed earlier.
The defendant city argues further that the plaintiffs motion for summary judgment was fatally defective because it contained some facts of which the affiant had no personal knowledge, in contradiction of the rule in Jones v Shek, 48 Mich App 530; 210 NW2d 808 (1973), and GCR 1963, 117.3, 116.4. However, we find that the other portions of the affidavit, of which the affiant did have personal knowledge, were legally sufficient to support the trial court’s decision.
Affirmed.
See Appendix A.
See Appendix B.
Saginaw v Saginaw County Board of Supervisors, 1 Mich App 65, 70 (1965). | [
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Procedural History
M. J. Kelly, J.
Four different Ingham County Circuit Court Judges are woven into the background fabric of this action and we outline their respective roles before reaching the merits of this appeal.
On August 5, 1977, the Honorable Jack W. Warren, at the request of the Ingham County Prosecutor, ordered a grand jury summoned for the September, 1977, term, "in accordance with the statutes providing for the drawing of grand jurors”.
On September 6, 1977, the Honorable Michael G. Harrison, who was chosen by blind draw to be the supervising judge of the grand jury and had been assigned to select it, issued an "amended order for summoning grand jury”. Neither order was directed to, conveyed to or received by the Ingham County Jury Board (hereinafter Board), nor was the Board ever notified or informed of the existence of the grand jury.
Judge Harrison, sitting in the City of Mason, Michigan, obtained a group of 50 jurors derived from the September, 1977, petit jury panel from the court clerk’s office in the Lansing City Hall Building. Over the next several days, he personally and privately conducted a voir dire of each of the members of this group. No record of these individual voir dires was made.. Judge Harrison then personally selected, without a random or blind draw, the 17 persons who compose the Ingham County Citizens’ Grand Jury. On December 15, 1977, this grand jury returned an indictment against 12 persons, the defendants, charging 63 counts of violations of the Controlled Substances Act.
At the preliminary examination on February 27, 1978, several motions were heard by the examining magistrate, including a motion to quash the indictment because of the improper selection of the grand jury. The examining magistrate took the testimony of 12 witnesses concerning this motion and, after the hearing, denied the motions on March 2, 1978.
The testimony established that the Board, during its annual meeting in May, 1977, had compiled a first jury list by applying the "key number” to the voter registration lists supplied by the county clerk. Questionnaires were sent to the persons on the list. The Board then reviewed the questionnaires and excused those persons who were exempted by statute or otherwise unqualified. A second jury list, comprised of those qualified to serve as jurors, was then prepared. The Board subsequently compiled panels from the second jury list to serve as jurors for the September, October, November and December, 1977, terms. No separate drawing and listing of prospective grand jurors was ever prepared by the Board. It was from the September panel that the 50 persons who comprised the grand jury array were selected.
On the day the district court denied the motions, one of the defendants filed a "claim of appeal, motion for leave to appeal, for immediate consider ation, and for stay of proceedings pending appeal” with the Ingham County Circuit Court, which was assigned by blind draw to the Honorable Thomas L. Brown. On the very next day, March 3, 1978, another defendant filed similar appeal pleadings with the Honorable Ray C. Hotchkiss, contesting the same ruling of the examining magistrate as the appeal filed and assigned the previous day to the Honorable Thomas L. Brown.
In the appeal directed to Judge Hotchkiss, the defendants sought to quash their indictment on the grounds that: (1) two members of the County Jury Board failed to take the oath of office as required by statute; (2) the prospective grand jurors were improperly selected from a panel of prospective petit jurors; (3) the grand jurors were improperly selected and impaneled by the supervising judge; and, (4) one juror (juror No. 7) was improperly allowed to sit as a grand juror and participate in the proceedings. The circuit court quashed the indictment. In considering the first two issues, it held that such failures to strictly comply with the applicable statute did not affect or threaten the due process rights of the defendants, and thus, that these defects were properly entitled to protection from challenge under the provisions of MCL 767.13 and 767.14; MSA 28.953 and 28.954. As to the fourth issue, the trial court held that, as juror No. 7 was merely one of 17 grand jurors, only nine of whom are needed to concur on issuing an indictment, his participation in the proceedings would not affect their outcome and, by itself, was not grounds for quashing the indictments. As to the claim that the grand jurors were improperly selected and impaneled by the supervising judge, the trial court held that constitutional due process required some method of random selection of grand jurors, and accordingly entered an order granting defendants’ motion.
Other pertinent facts are contained in the statement of facts appended to Judge Hotchkiss’s opinion and order of March 20, 1978, which was adopted by the people-appellants and accepted by the defendants with minor additions which are not significant in this appeal. The statement of facts of Judge Hotchkiss is attached hereto as Appendix A.
Judicial Selection of the Grand Jury
The order of the circuit judge states several issues but observes that: "The most serious issue raised by the defendants regards the selection and impaneling of the Citizens Grand Jury by the supervising judge.” Because this issue is determinative and since the other issues are pertinent only if the grand jury was properly impaneled initially, we address it first.
The Wayne County Prosecutor in an amicus brief attempts to raise a totally new issue regarding the authority of the circuit court to entertain an appeal from a district court decision on a motion to quash based on irregularity in the grand jury selection. In the brief it is claimed that, in effect, it is tantamount to review by one circuit court judge of the action of another in the latter’s selection and supervision of a Citizens’ Grand Jury. We decline to address that issue and treat this matter solely as a review of an appeal to the Ingham County Circuit Court from an adverse ruling of the examining magistrate.
The people assert that Judge Harrison’s personal selection of 17 persons to serve as grand jurors does not impugn the validity of the Ingham County Citizens’ Grand Jury. In making this argu ment, they place reliance on Chapter VII of the Code of Criminal Procedure, being MCL 767.1 et seq.; MSA 28.941 et seq. Chapter VII is captioned "Grand Juries, Indictments, Informations & Proceedings Before Trial”. The circuit court found, and both sides concur, that, while some sections of Chapter VII relate to grand juries, no single identifiable statute provides any specific method for the exact procedural selection and impaneling of grand jurors. The prosecutor argues that it is therefore not necessary to select the jurors by lot or by blind draw so long as the supervising judge acted in good faith. There is no allegation or finding that the supervising judge acted other than in good faith.
The defendants, in attacking the validity of the Citizens’ Grand Jury, rely on Chapter XIII of the Revised Judicature Act. That chapter was added in 1968 and is captioned "Jurors”. MCL 600.1301 et seq.; MSA 27A.1301 et seq. Sections 1306, 1312 and 1326 refer to grand juries or grand jurors and § 1326 is of special significance; it states:
"If a grand jury is ordered by the court, or required by statute, the board shall draw the names of a sufficient number of persons, as determined by the presiding circuit judge, to serve as grand jurors in accordance with the provisions of section 11 of chapter 7 of Act No. 175 of the Public Acts of 1927, as amended, being section 767.11 of the Compiled Laws of 1948. The names shall be drawn in the same manner and from the same source as petit jurors. The term of service of grand jurors shall be as prescribed by section 7a of chapter 7 of Act No. 175 of the Public Acts of 1927, as added, being section 767.7a of the Compiled Laws of 1948.” (Emphasis added.)
The reference to § 11 in the above quote refers to the Code of Criminal Procedure and appears at MCL 767.11; MSA 28.951. It limits the grand jury to no more than 17 nor less than 13 persons. The defendants argue that a reading of the above statute in conjunction with GCR 1963, 511.1 requires that prospective grand jury names be drawn in the same manner as petit jurors, that is, it would require their selection by blind draw rather than by the personal voir dire of the supervising judge. GCR 1963, 511.1 provides for the selection of petit jurors as follows:
".1 Selection of Jurors.
(1) The clerk of the court shall deposit in a box separate slips containing the names of persons returned by the sheriff and not discharged or excused as prospective jurors by the court. The slips shall be folded to conceal the names contained thereon, and shall be intermingled after being deposited in the box.
(2) At every trial where any or all of the issues are to be tried by a jury, the clerk shall draw from the box a number of slips: (a) Sufficient to name a jury of 12 or more persons approved to sit as jurors in criminal cases or (b) sufficient to name a jury of 6 or more persons approved to sit as jurors in civil cases as provided by this rule.
(3) When the jury is impaneled, the clerk shall return all slips drawn from the box which contain the names of qualified persons not approved or sworn to sit as jurors at the trial.
(4) When the jury is discharged from the case the clerk shall return all slips which contain the names of the jurors so discharged.
(5) In a circuit having more than 1 judge trying jury cases at 1 time, the circuit judges may, by local rule, provide for drawing jurors from the Jury Box.”
In ordering the indictments quashed, Judge Hotchkiss rejected the defendants’ argument that § 1326 mandated a blind draw selection of the grand jury rather than selection by personal voir dire of the supervising judge. The circuit court held that § 1326 required only that a separate list of prospective grand jurors be drawn by the jury board. However, the court did hold that some method of random selection was mandated under the due process provisions of the state and Federal constitutions, and, therefore, ruled that the method of selection used here denied the defendants’ due process.
We agree with the circuit court’s conclusion that the selection process outlined in § 1326 and GCR 1963, 511.1 does not render the indictment by the Citizens’ Grand Jury invalid. We do not think that § 1326 incorporates the method of juror selection expressed in the court rule; the language of GCR 1963, 511.1(2)-(5) indicates that it is directed exclusively to the selection of petit, rather than grand, jurors. Furthermore, some judicial voir dire, some input in the selection, seems essential because it is highly unlikely that 17 jurors randomly selected could all be seated. Some would likely seek to be excused from the rigors of prolonged service (six months to one year, MCL 767.7a; MSA 28.947(1)). Moreover, the voir dire and exclusion of prospective grand jurors on the grounds of bias or prejudice are functions which the Board is not statutorily empowered to perform. We hold, therefore, that MCL 600.1326; MSA 27A.1326 does not mandate that the Board randomly select the final 13 to 17 persons ultimately chosen to sit on the grand jury nor does it preclude reasonable selection by the supervising judge. The key number random selection from the voter registration lists is the blind selection contemplated by § 1326. A wheel within a wheel is not required.
We disagree, however, with the circuit court’s decision to quash the indictments on constitutional due process grounds. In holding that the mere possibility of judicial bias or manipulation in the grand jury selection process constituted a valid reason to quash the indictments, Judge Hotchkiss raised to a level of constitutional due process a requirement unfounded in our case law or statutes.
The exercise of individual judgment in the selection of grand jurors does not, standing alone, deny constitutional due process. A grand jury is an inquisitorial, informing, and accusing body, and it is not a trial body or the ultimate factfinder. 8 Michigan Law & Practice, Criminal Law, § 141, p 213. The selection of a grand jury is not an adversary proceeding as is the drawing of a petit jury in a contested trial. In the absence of statutory direction or evidence of judicial manipulation, we are not prepared to create, as an element of constitutional due process, a requirement that grand jurors be selected in . exactly the same fashion as petit jurors.
Historically, grand jurors have been selected with some relative degree of flexibility in the process. At common law, the sheriff drew them to his liking. 38 CJS, Grand Juries, § 9. Presently, in practically all jurisdictions, the mode of selecting a grand jury is a matter of statutory requirement and state procedures which rely solely on discretionary selection by state officials, as opposed to random selection, have consistently been upheld by the United States Supreme Court. In Smith v Texas, 311 US 128; 61 S Ct 164; 85 L Ed 84 (1940), for example, the court upheld a grand jury selection system whereby the appointed grand jury commissioners would jointly select 16 names from the county assessment rolls. Similarly, in Carter v Jury Comm of Greene County, 396 US 320; 90 S Ct 518; 24 L Ed 2d 549 (1970), the Court upheld against constitutional challenge the Alabama statutory grand and petit jury selection system which vested a large amount of discretion in state officials, even in the face of "overwhelming proof’ that the officials had, in fact, abused their discretion by discriminating on the basis of race.
In addition, the fact that it is a judge, rather than some other state official, who exercises individual discretion in the selection of grand jurors is not, absent discrimination, offensive to constitutional due process. Many jurisdictions make provision for judicial input in the selection of grand jurors. The grand jury selection process in Louisiana, for example, provides for the exercise of broad discretion by the judge and has been upheld as constitutional in Eubanks v Louisiana, 356 US 584; 78 S Ct 970; 2 L Ed 2d 991 (1958), where the Court stated:
"The method by which grand juries are selected in the parish is not controverted. A jury commission is required to select, 'impartially, from the citizens of the Parish of Orleans having the qualifications requisite to register as voters, the names of not less than seven hundred and fifty persons competent * * * to serve as jurors’. Twice each year the Commissioners draw the names of 75 persons from this group. The list of 75 is then submitted to one of the six judges of the local criminal court who, in rotation, choose a new grand jury of 12 every six months. Obviously the judges have broad discretion in selecting from the list provided by the Commission. State v Dorsey, 207 La 928, 22 So2d 273. Several of them interview a substantial number of prospective jurors before making their choice. Others, including the judge who chose the jury that indicted petitioner, testified that they usually selected on the basis of personal knowledge or reputation in the community. Petitioner does not challenge this system of choosing grand jurors, as such, but he does contend that it has been administered by the local judges so that members of the Negro race have been systematically excluded from grand jury service.” 356 US at 585-586 (Footnotes omitted.)
The circuit court, therefore, erred in holding that mere judicial participation in the selection of a grand jury, absent bias or prejudice, violates constitutional due process.
In the present case, there are no facts or allegations of fact indicating bias or prejudice with regard to the judicial selection of the 17 chosen grand jurors. Judge Harrison, the supervising judge of the Ingham County Citizens’ Grand Jury, appeared before the district court to give testimony relevant to defendants’ motion to quash. He explained that he was selected as the supervising circuit judge through the use of a blind draw. Judge Harrison said that at least 50 prospective grand jurors were brought before him. Each of the candidates was interviewed by the judge and it was only after all these interviews were completed that 17 individuals were chosen by him to sit as grand jurors. Judge Harrison testified in detail as to the criteria he applied in impaneling the jury:
"Q. Judge, could you tell the Court the factors you considered in your selection of the 17 people from the 50 people?
"A. Yes, sir. My objective or goal was to have a jury which, as much as reasonably possible, would represent a cross-section of the community. I was interested in age, sex, race, and ethnic background, educational background, employment. That was what I was striving for as far as trying to develop a jury of 17 individuals who could at least reasonably fairly represent a cross-section of the community. Now, in certain specifics, what I was looking for in 17 individuals who would represent this cross-section, were characteristics as far as general responsibility. The questions I would ask, for instance, were with respect to their employment record, if they had any reprimand for tardiness, problems with absenteeism. I talked to them about the importance of having the procedure — having those persons there during this process beginning on time, being there on time, and I was looking for, among other things, those characteristics because I realized that if we had problems with tardiness or absenteeism, it would substantially affect the ability of the Grand Jury to function.”
Judge Harrison described the make-up of the grand jury as follows: Of the three blacks on the array, one was selected for grand jury service. Also on the grand jury is one Spanish surnamed person. The majority of the grand jurors are female; the age range is from 18-21 to 65 years old. The occupations of the jurors include laborers, factory employees, self-employed businessmen, State of Michigan employees, MSU employees, general commercial type employees and homemakers. One member is on public assistance and one member is a student. Geographically, approximately half of the jurors are from the City of Lansing, and half from the remainder of Ingham County, a split which corresponds to the population distribution in the county. Although defendants’ counsel had a full opportunity to question Judge Harrison and did in fact do so, none of them elicited any testimony or otherwise produced any evidence indicating that he had an improper motive or was swayed by personal bias in the selection process. In short, the record contains no indication of judicial impropriety, and indeed, plainly refutes its existence.
Neither the Supreme Court nor this Court has ever been willing to find the "spectre” of judicial manipulation or bias, without more, to be sufficient to establish a due process violation. GCR 1963, 405.1(3), (8); GCR 1963, 912.2(2), (7), Crowley, Milner & Co v Macomb Circuit Judge, 239 Mich 605, 613; 215 NW 29 (1927), Kolowich v Ferguson, 264 Mich 668; 250 NW 875 (1933), People v Moran, 36 Mich App 730, 734; 194 NW2d 555 (1971), People v Lobsinger, 64 Mich App 284; 235 NW2d 761 (1975). As this Court observed in Irish v Irish, 59 Mich App 635, 639; 229 NW2d 874 (1975):
"In Wayne County Prosecutor v Doerfler, 14 Mich App 428, 441; 165 NW2d 648 (1968), we discussed the question of disqualification of a judge and formulated the following standard for interpretation of the court rule:
'An appellate court must demand actual proof of claimed prejudice when reviewing the nonjudicial activities of a judge, and when none is forthcoming that court must find that no violation of due process has occurred. The language of GCR 1963, 405.1(8), apparently a catch-all phrase, still requires some actual showing of prejudice and it will not encompass the unfounded fears of defendants.’
"While the above-quoted statement was made in reference to the nonjudicial activities of a judge, we feel that it is equally applicable to a case such as this where the judicial activities of a judge are involved. Actual proof of prejudice must be presented before a trial judge will be disqualified.”
Unsupported speculation and conjecture regarding judicial impropriety is not appropriate at any stage of appellate review. See People v Irwin, 47 Mich App 608, 610; 209 NW2d 718 (1973).
Neither do we find convincing the emphasis placed below on the failure of the supervising judge to make a record of his voir dire of the individual prospective jurors. We do not find an obligation to make such a record in order to provide fodder for an otherwise prohibited skirmish. In light of the testimony of Judge Harrison quoted above and the fact that there is no allegation of bad faith on his part, there was no basis for challenging the array on the grounds of purposeful discrimination in selection. Hence, a record of the voir dire, if made, could only be used in the present case to attack individual grand jurors on the grounds of bias or prejudice. This an accused may not do, for an accused has no right to subject a grand jury or grand jurors to a voir dire. Commonwealth v Dessus, 423 Pa 177; 224 A2d 188 (1966), Estes v United States, 355 F2d 609 (CA 5, 1964). As stated in United States v Knowles, 147 F Supp 19, 20-21 (D DC, 1957):
"Challenges for bias or for any cause other than lack of legal qualifications, are unknown as concerns grand jurors. No provision is made for peremptory challenges of grand jurors and no such challenges are permitted. Likewise no voir dire examination exists in respect to grand jurors. In other words, the status of a member of a grand jury may not be questioned except for lack of legal qualifications.”
We will not permit the defendants to do indirectly, through the voir dire of Judge Harrison, what they may not do directly, that is, challenge grand jurors for bias or prejudice.
We hold that the participation of the supervising judge in the selection and impaneling of the Ingham County Citizens’ Grand Jury did not constitute a due process violation. The circuit court erred in requiring that the 50 names be dropped into a box and extracted therefrom randomly and blindly as an element of constitutional due process. The Legislature could, if it so desires, clarify the language of § 1326 and incorporate the petit jury blind draw system outlined in GCR 1963, 511.1 or it could proscribe voir dire examination by a supervising circuit judge. In the absence of a legislative mandate, however, the lower court should not have imposed such requirements.
We therefore reverse the order of the circuit court quashing the defendants’ indictment.
Jury Board Qualification
In addition to the challenges to judicial participation in the selection of the grand jury, the defendants raised other questions in the circuit court regarding qualifications of the Board and the source of the grand jury array. We now turn to those questions.
The defendants assert that the failure of two members of the Board to take the oath of office upon reappointment, as required by MCL 600.1303a; MSA 27A.1303(1), voids the Board’s initial selection of the petit jury panels. The prosecutor, on the other hand, contends that the defective constitution of the Board represents merely a technical defect of the sort entitled to protection from challenge under the provisions of §§ 13 and 14 of Chapter VII of the Code of Criminal Procedure, MCL 767.13 and 767.14; MSA 28.953 and 28.954. We believe the point is well taken. Those provisions read:
"Sec. 13. A person held to answer to any criminal charge may object to the competency of anyone summoned to serve as a grand juror, on the ground that he is the prosecutor or complainant upon any charge against such person; and if such objection be established, the person so summoned shall be set aside.”
"Sec. 14. No challenge to the array of grand jurors, or to any person summoned as a grand juror, shall be allowed in any other case than that specified in the preceding section.”
The prosecutor had the best of this issue below. Judge Hotchkiss held that the failure of two members of the Board to take the oath of office before the presiding judge upon reappointment constituted a technical defect, protected from challenge by §§ 13 and 14. We agree with the circuit court.
Case law interpreting the quoted statutes evidences a long history of prohibiting challenges such as defendants seek to assert in the present case. In People v Lauder, 82 Mich 109; 46 NW 956 (1890), defendant was indicted by a grand jury and contended that defects in the selection process necessitated that the indictment be quashed. The Court rejected defendant’s contention, citing the above statutes and stating, at pages 134-135:
"It was evidently intended by the Legislature that no mere technicalities or irregularities should be permitted to quash the grand-jury panel, and that only in case of a prosecutor or complaining witness being summoned could the accused person successfully complain and exercise the right of challenge.
"I am satisfied that the Legislature has wisely ordained that no inquiry for the purpose of quashing an indictment shall be made into the composition of a grand jury, or as to the competency of the individual jurors, except in cases where some member has been the prosecutor of, or the complaining witness against, the person indicted. It must be remembered that the grand jury does not settle the guilt or innocence of the accused, but acts something the same as does an examining magistrate. No irregularities in the examination of an accused person before a magistrate are permitted to quash an information filed in the circuit court against him, and based upon such examination. The admission of incompetent evidence, or the rejection of proper testimony, by the justice of the peace, or other person holding such examination, has no effect upon the information. This proceeding to find an indictment before a grand jury, or to bind an accused person over to the circuit court by a justice of the peace, is but the presentment of a case to be tried before a petit jury, and the proceeding is not to be governed by any mere technicalities, as long as the substantial rights of the accused to a speedy and fair trial before a jury of his peers is preserved and remain to him.”
The Lauder rationale was affirmed in People v Smith, 118 Mich 73; 76 NW 124 (1898), where the Court stated:
"The statute is conclusive of the first question. The objections relate to irregularities in the drawing of the jury. The statute specifies what shall be a ground of challenge, viz., that a juror is prosecutor or complainant. It expressly prohibits a challenge on any other ground. 2 How. Stat. §§ 9496, 9497. The question is discussed by Mr. Justice Morse in People v Lauder, 82 Mich [109] 133, authorities cited, and statute quoted. An objection prohibited by the statute when the grand jury is impaneled cannot be valid when the party is put to trial under the indictment found. There was no fraud or willful disregard of the law, or even an indication that competent jurors were not secured, or that respondent was prejudiced.”
The Smith and Lauder holdings have been consistently interpreted to bar challenges to the selection of grand juries. People v Reigel, 120 Mich 78; 78 NW 1017 (1899), People v Thompson, 122 Mich 411; 81 NW 344 (1899), People v Morgan, 133 Mich 550; 95 NW 542 (1903), People v Lay, 193 Mich 476; 160 NW 467 (1916).
Defendants in argument and briefs below relied on People v Gratz, 35 Mich App 42; 192 NW2d 304 (1971), for the proposition that failure to comply with statutory provisions concerning the selection of juries constitutes reversible error without any necessity for proving prejudice. We believe Gratz to be distinguishable as involving petit jury selection and we agree with its holding. The grand jury, however, is primarily an investigative tool and since the right to preliminary examination was afforded in People v Duncan, 388 Mich 489; 201 NW2d 629 (1972), the potential for constitutional due process violation in grand jury selection fades and the legislative intention to insulate the investigative aspects of the criminal justice system becomes a paramount principle.
In the present case, both board members had taken the oath of office before a deputy clerk; there is no allegation that they violated the oath. In light of the case law interpreting these sections, we are inclined to agree with the circuit court that the failure of two Board members to take the oath of office before the presiding judge upon reappointment was of a technical rather than fundamental due process nature, and accordingly, is protected from challenge by §§ 13 and 14.
Source of Grand Jury Array
The next issue raised by the defendants is more troublesome. The defendants argued in circuit court that § 1326 requires that the names of prospective grand jurors be "drawn in the same manner and from the same source as petit jurors”; thus, requiring random selection of the grand jury array. The circuit court, however, did not go so far; it held only that § 1326 required that a separate list of prospective grand jurors be drawn by the Board, but that the failure to do so and the consequent use of the petit jury panel for the grand jury array was also a technical defect shielded by §§ 13 and 14. Although we agree with the circuit court’s result, we interpret § 1326 differently, thus obviating resort to §§ 13 and 14.
A review of the statutes providing for the drawing of jurors from the voter registration lists indicates that the Legislature intended that randomly selected panels of prospective jurors, regardless of their designation, be viewed as a "fungible” quantity to be used for either grand or petit jury purposes. We note that neither MCL 600.1308; MSA 27A.1308, which requires that the presiding judge estimate the court’s anticipated juror needs, nor MCL 600.1311; MSA 27A.1311, which provides for the computation of the "key number” on the basis of the judge’s estimate, nor MCL 600.1313; MSA 27A. 1313, which provides for the use of questionnaires in determining juror qualifications, makes any distinction between grand and petit jurors in the performance of these functions. Indeed, § 1311(c) specifically states that the key number so derived be used throughout the entire period for which jurors are selected and it is unlikely that the Legislature intended that a key number based solely on petit juror needs be used to compile a separate list of prospective grand jurors. Furthermore, MCL 600.1312(f); MSA 27A.1312(f), which provides for the exclusion of persons who have served on either petit or grand juries within the preceding year, treats those two categories identically, which may be some indication of a collective mental concept by the Legislature. We note further that as the panel used here was randomly selected from the voter registration lists, a grand jury array drawn from that panel would satisfy the mandate of § 1326, that it "be drawn in the same manner and from the same source as petit jurors”.
Thus, the circuit court erred in interpreting § 1326 as requiring the compilation of a separate list of prospective grand jurors. We hold that MCL 600.1326; MSA 27A.1326 contemplates the use of randomly selected petit jury candidates as the source of the grand jury array.
Disqualification of Juror No. 7
Finally, defendants challenge the grand jury proceedings on the grounds that the supervising judge failed to exclude juror No. 7.
During the course of the grand jury proceedings, it was learned that juror No. 7, the only black juror, is a cousin to four of the witnesses testifying before the grand jury. Furthermore, all are related to an Assistant Ingham County Prosecutor. Although Judge Harrison and all the members of the grand jury were informed of this relationship, grand juror No. 7 was not excluded add participated in discussions and voting leading to the indictment challenged herein.
In considering this challenge, Judge Hotchkiss stated that the relationship was suggestive of bias and that juror No. 7 should have been excluded. However, he held that, as only nine of the 17 grand jurors need concur on issuing an indictment, his participation would not have affected the outcome and, by itself, was not grounds for quashing the indictments. We agree with the result but for a different reason.
As we stated earlier, we believe the purpose of §§ 13 and 14 to be that no interest, except those defined by statute, will disqualify a member of a grand jury or vitiate an indictment returned. Accordingly, the fact that juror No. 7 was a cousin to four of the witnesses, by itself, should not operate as a disqualification. Cruce v State, 87 Fla 406; 100 So 264 (1924), People v Briggs, 50 Misc 2d 1062; 272 NYS2d 211 (1966), Tyson v State, 146 Tex Cr App 128; 171 SW2d 496 (1943).
The decision of the trial court quashing the defendants’ indictment is reversed.
Appendix A.
STATE OF MICHIGAN
IN THE CIRCUIT COURT FOR THE COUNTY OF INGHAM
People of The State of Michigan,
Plaintiff, Docket No. 77-28261-FY
v
Percy Edmond, et al,
Defendants.
STATEMENT OF FACTS
(1) On August 3, 1977, the Ingham County Prosecutor petitioned the Ingham County Circuit Court for the creation of Ingham County Citizens Grand Jury.
(2) On August 5, 1977, the Honorable Jack W. Warren, issued an Order for the summoning of a Grand Jury.
(3) The Honorable Michael G. Harrison was selected by a blind draw to be the supervising judge of the grand jury (Tr. p 152) and was assigned to select the grand jury. (Tr. p 105).
(4) The Ingham County Jury Board was never served with a copy of either of the above described Orders, nor ever notified or informed of their existence. (Tr. p 11, pp 44-45, pp 76-79). The Citizens Grand Jury was never summoned according to the Orders of the Court.
(5) The Ingham County Jury Board was formed in 1969. The first members of the Board were Mr. Raymond Totte, Jr., Mr. Frank Perrin and Mrs. Margaret Holmes. (Tr. p 9). These persons were each reappointed to the Board when their original terms expired and they comprise the current Ingham County Jury Board. (Tr. p 75).
(6) Mr. Perrin was first appointed to the Jury Board in 1969 and was reappointed to a six year term in 1975. (Tr. p 75). Mr. Perrin took a constitutional oath of office before the presiding circuit judge each time he was appointed. (Tr. pp 75-76).
(7) Mrs. Margaret Holmes was first appointed to the Jury Board in 1969 and was reappointed in 1973. (Tr. pp 42-43). Mr. Totte was first appointed to the Jury Board for a four year term in 1969. (Tr, pp 8, 21). Mr. Totte was reappointed to the Jury Board for a six year term in 1971 and in May, 1977. (Tr. p 21). Both stated that they had not taken a constitutional oath before the presiding circuit court judge, but had signed an oath before a Deputy Clerk.
(8) The minutes of the Board meetings were not attested to by the secretary. (Tr. p 17, pp 48-49). Minutes of the Board’s meeting have been kept in this fashion since 1969, being signed by the Board members. (Tr. p 66).
(9) The Jury Board held their annual meeting in May, 1977. (T. pp 26-27, p 51). The Board compiled the First Jury List by applying the "key number” to the voter registration lists supplied by the County Clerk. Questionnaires were sent to the persons on the First Jury List. (Tr. p 30, p 49). The Board then reviewed the questionnaires and excused those people who were exempted by statute or otherwise unqualified. (Tr. pp 30-34, p 56). A Second Jury List, comprised of those qualified to serve as jurors, was then prepared by the Board in the same manner as the First Jury List. (Tr. p 85).
(10) The Jury Board, pursuant to an order of the presiding judge drew a list of prospective jurors to serve as petit jurors for the September, October, November and December 1977 terms of the court. (Tr. pp 80-81). No separate list of persons to serve as prospective grand jurors was ever prepared by the Jury Board.
(11) On September 6, 1977, a group of approximately 50 persons were removed from the September 1977 petit jury panel (Tr. pp 99-102) and transported to Mason, Michigan, and appeared before Honorable Michael G. Harrison, Ingham County Circuit Judge, who was selected to handle the Grand Jury by the blind draw system (Tr. p 152) and to select the jurors. (Tr. pp 105-106).
(12) Over the course of the next several days (Tr. p 153) Judge Harrison personally and privately voir dired each of the 50 petit jurors. (Tr. p 154). This procedure was carried out without a court-reporter or stenographer (Tr. p 154) or any other person present. No record of these individual voir dires was made.
(13) Judge Harrison, after personally examining the 50 or so petit jurors, personally selected, without a random or blind draw, the 17 persons who even now compose the Ingham County Citizens Grand Jury. (Tr. pp 154-155).
(14) Of the 17 petit jurors personally selected by Judge Harrison, one was of the Black race. Two other Black petit jurors (Tr. p 153, p 159, p 160) were excluded.
(15) On September 23, 1977, it was learned that juror number seven (7), the only black juror selected to sit on the Ingham County Citizens Grand Jury (Tr. p 213) was related to George Andrew Thomas, Jr., "Junebug”, a witness before the Ingham County Citizens Grand Jury. (Tr. p 208, p 209, p 216). After so learning the Prosecutor and assistant prosecutor John E. Steele met with Judge Harrison and advised him of the relationship. (Tr. p 217). The Black grand juror was not excused. (Tr. p 160).
(16) All of the four persons named Thomas are related to each other as brother and sister (Tr. p 228), each is therefore related to Grand Juror number seven (7) as a cousin, and it would appear are all related to an assistant Ingham County Prosecutor. (Tr. p 232).
(17) Additionally, Grand Juror number seven (7), although being absent during the testimony of George A. Thomas, Jr., and Claude Sterling Thomas, not only read the transcripts of their testimony, but also participated in the discussions leading to the indictment of December 15, 1977, and the vote taken thereon. (Tr. p 193). George A. Thomas, Jr., "Junebug”, and Claude Sterling Thomas, "May May”, were vound to be co-conspirators but were not indicted; Pearl Thomas and Terri Thomas were not found to be co-conspirators. (See Indictment).
(18) All members of the Ingham County Citizens Grand Jury who were present at the September 28, 1977 session at which the testimony of George A. Thomas, Jr., and Claude Sterling Thomas was taken, were advised on the record of the relationship between the aforenamed parties. (Tr. p 207, p 208).
The California Grand Jury system, for example, not only allows the court to interview and select grand jurors, but compels it. The California Penal Code, § 895 provides:
"During the month preceding the beginning of the fiscal year of the county, the superior court of each county shall make an order designating the estimated number of grand jurors that will, in the opinion of the court, be required for the transaction of the business of the court during the ensuing fiscal year as provided in Section 905.5.”
§ 896 then states:
"(a) Immediately after such order is made, the court shall select the grand jurors required by personal interview for the purpose of ascertaining whether they possess the qualiScations prescribed by subdivision (a) of Section 893. If a person so interviewed, in the opinion of the court, possesses such qualifications, in order for his name to be listed he shall sign a statement declaring that he will be available for jury service for the number of hours usually required of a member of the grand jury in that county.” (Emphasis added.)
While the quoted portion is taken from the dissent, all the justices concurred in it. See People v Reigel, 120 Mich 78, 86; 78 NW 1017 (1899). | [
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Per Curiam.
Defendant was tried in the Ingham County Circuit Court commencing May 11, 1976, on two counts of criminal sexual conduct in the first degree, contrary to MCL 750.520(b)(1)(f); MSA 28.788(2)(l)(f). He was convicted by the jury on both counts and sentenced June 18, 1976, to two concurrent terms of 20.to 40 years in prison. He appeals of right.
Typical of cases involving alleged sexual misconduct the trial boiled down to a one-on-one confrontation, with the complaining witness testifying that defendant assaulted her when she was asleep in her apartment with her two children, and defendant testifying that the conduct was consensual. Because the jury was left with deciding which witness to believe, defendant argues that his trial counsel grossly misrepresented him by eliciting on direct examination the fact that while living in New York, the defendant had been involved in grand larceny in connection with a theft of an automobile. Appellate counsel asserts that it is now established that the charge of grand larceny resulted in a dismissal and not a conviction, and in the one-on-one situation counsel’s error denied defendant effective assistance of counsel. People v Degraffenreid, 19 Mich App 702, 709; 173 NW2d 317 (1969), Beasley v United States, 491 F2d 687, 696 (CA 6, 1974).
We are not persuaded. Trial counsel skillfully avoided asking his client whether he had been convicted, and defendant’s response was not that he had been convicted of grand larceny but that he had been involved. Trial counsel sought to paint a picture of his client as a man who had totally reformed after coming to Michigan from New York. He could best do so and still maintain a high professional standard by having his client tell the truth. Given the situation with which he was confronted, we believe this was probably the best tactic counsel could use. The most recent Supreme Court pronouncement on effective assistance of counsel appears in People v Garcia, 398 Mich 250, 264; 247 NW2d 547 (1976). In that opinion the Court adopted the test formulated in Beasley v United States, 491 F2d 687, 696 (CA 6, 1974):
"Defense counsel must perform at least as well as a lawyer with ordinary training and skill in the criminal law and must conscientiously protect his client’s interest, undeflected by conflicting considerations.”
We have carefully reviewed the entire record, including the action of defense counsel alleged to be erroneous. We find that the line of questioning would appear to be a reasonable choice of trial strategy to a competent criminal attorney and that defense counsel’s performance satisfied the Garcia standards. We also do not believe that defendant would have a reasonably likely chance of acquittal given a new trial absent any error by counsel. People v Degraffenreid, 19 Mich App 702, 716, 718; 173 NW2d 317 (1969).
Defendant’s second claim of error concerns allegedly prejudicial cross-examination of defendant about his admitted use of drugs. Since the crucial issue was consent, the issue of drug usage was material to possibly show that defendant’s ability to judge consent was impaired by his use of drugs earlier that day. Also, it was defendant who first raised the question of drug usage and naturally the prosecutor was entitled to pursue the subject. Additionally, we find that the line of prosecutorial questioning was not so prejudicial that a curative instruction would not have eliminated any harmful effect. Therefore, in the absence of a timely defense objection and request for a curative instruction we find no basis for reversal. People v Gould; 61 Mich App 614, 625; 233 NW2d 109 (1975).
We believe that defendant’s conviction resulted from a fair trial and it is, therefore, affirmed. | [
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N. J. Kaufman, P. J.
On December 17, 1976, defendant pled guilty to possession of heroin, contrary to MCL 335.341(4)(a); MSA 18.1070(41)(4)(a). He was sentenced to two years probation. On April 6, 1977, defendant was charged with two counts of possession of heroin with intent to deliver, MCL 335.341(l)(a); MSA 18.1070(41)(1)(a). He pled not guilty to these new charges.
Probation violation proceedings were then instituted and a hearing held on April 22, 1977. At the hearing, defense counsel requested an adjournment pending disposition of the underlying criminal charges. The court denied this request and proceeded with the hearing. Prosecution witnesses testified as to the circumstances of the violation, but defense counsel refused to cross-examine them. Defendant refused to testify in his own behalf, specifically because he feared that any incriminating statements he might make would be used against him at a later trial.
Despite defendant’s objections, the court found him guilty of probation violation and sentenced him to three to eight years in prison on April 29, 1977. Defendant appeals as of right.
At issue in this appeal is the propriety of the prosecution’s timing of the probation revocation hearing prior to the trial on the underlying criminal charges. Our Court has discussed facets of this problem in three recent cases. In People v Baines, 82 Mich App 438; 266 NW2d 839 (1978), the Court saw the issue as whether the trial court’s refusal to delay the probation revocation hearing violated defendant’s Fifth Amendment right against self-incrimination. After noting that the trend of authority favored holding the trial first, the Court declined to reach the substantive issue because the defendant had in fact testified at the probation revocation hearing and later pled guilty to the underlying offense. Thus, the prejudice feared was not thought to be present.
When defendant Baines appealed from his guilty plea conviction, this Court had occasion to consider another aspect of the problem. People v Baines, 83 Mich App 570, 573; 269 NW2d 228 (1978). Baines argued that holding the revocation hearing first created " 'unjustifiable tension’ between the defendant’s rights to due process and the right to be free from duress when he enters a plea”. The Court rejected this argument, viewing it as essentially an attack on the process of plea bargaining itself. Judge D. E. Holbrook, Jr., dissenting, wrote:
"Absent a rule preventing the use of a probationer’s revocation hearing testimony at the subsequent trial, I believe it is fundamentally unfair to hold the revocation hearing prior to the trial on the substantive offense when the sole basis for revoking probation is a finding that the probationer committed the substantive offense. Whether or not constitutionally mandated, such a rule is necessary to prevent a chill on a probationer’s exercise of his right to due process of law and his privilege against self-incrimination.” 83 Mich App at 574.
We agree with the above analysis and, but for the fact that defendant Baines did take the stand at the probation revocation hearing and did not claim any violation of his constitutional rights, we would find the present case indistinguishable from Baines.
The third case to consider the problem of timing was People v Nesbitt, 86 Mich App 128; 272 NW2d 210 (1978). In that case as well, the defendants failed to preserve the issue and suffered no prejudice, because they testified at the hearing without first objecting on Fifth Amendment grounds or requesting an adjournment. The Court implied that there might be Fifth Amendment problems should the prosecutor seek to introduce the hearing testimony at a subsequent trial, but stated that the appropriate proceeding to resolve them would be the trial itself. Despite this, the Court then went on to state, in the context of reviewing a statutory argument presented by defendants, that there was "no reason” why the revocation hearing should not precede the trial. Judge Riley, concurring in the result, wrote that this language was unnecessary to the decision and too broad in scope.
In the case at bar the situation is ripe for decision on the principal issue. Defendant Rocha was deterred from taking the stand at the probation revocation hearing, due to his fear that his testimony would be used in a subsequent trial on the underlying charge.
Although a probation revocation hearing is not a criminal trial, the probationer is entitled to. certain due process rights at that proceeding. These rights include the "opportunity to be heard in person and to present witnesses and documentary evidence”. Morrissey v Brewer, 408 US 471, 489; 92 S Ct 2593; 33 L Ed 2d 484 (1972), Gagnon v Scarpelli, 411 US 778, 786; 93 S Ct 1756; 36 L Ed 2d 656 (1973). At a probation revocation hearing, unlike a criminal trial, the evidence which the defendant may present and the trier must consider includes mitigating circumstances. This is because probation revocation encompasses a two-step analysis: 1) a factual determination of whether the defendant violated the terms of his probation, and 2) a discretionary determination of whether the violation warrants revocation. Morrissey, 408 US at 479-480; Gagnon, 411 US at 784; People v Clements, 72 Mich App 500, 503; 250 NW2d 100 (1976), People v Givens, 82 Mich App 336, 339; 266 NW2d 815 (1978). Upon a finding that the defendant has violated probation, the court still may wish to permit him to retain his conditional liberty if the circumstances of the case so warrant. Clements, supra, pp 504-505.
The importance of the defendant’s right to present evidence in mitigation was stressed by the California Supreme Court in People v Coleman, 13 Cal 3d 867, 874; 120 Cal Rptr 384; 533 P2d 1024 (1975):
"A probationer is by definition a convicted law breaker. Insofar as a probationer seeks at a revocation hearing to deny or contradict the evidence of a probation violation, he is generally at a disadvantage in terms of the credibility of his testimony. His testimony is likely to be more readily accepted, and hence more useful to the court, insofar as it adds to rather than detracts from the factual picture presented by the state, through the probationer’s explanation of his actions and account of the circumstances surrounding an alleged probation violation. But such mitigating evidence is just what is most likely to be withheld from the court by virtue of the probationer’s fear of self-incrimination, since mitigating evidence often involves damaging factual admissions coupled with more or less compelling moral excuses.” (Emphasis added.)
The Coleman Court held that the prosecutor must either grant use and derivative use immunity for defendant’s probation revocation hearing testimony, or else hold the violation hearing after the trial on the underlying charge. Rhode Island’s Supreme Court has reached the same result. State v DeLomba, 370 A2d 1273 (RI, 1977). Both Courts were concerned with possible prosecutorial misuse of a fair government-individual balance. As stated in Coleman:
"Indeed, to the extent that the object of the prosecution is simply to secure the probationer’s incarceration, whether by revocation of probation or by conviction and sentencing for the new offense, the prosecution’s instigation of a pretrial probation revocation hearing currently puts it in a 'tails we win, heads you lose’ position vis-a-vis the probationer. Because of the inapplicability of certain evidentiary rules and the lower standard of proof obtaining at a probation revocation hearing, the People are generally more likely to achieve a probationer’s incarceration through the probation revocation process than through the new prosecution and conviction. When a probationer is deterred from testifying at his revocation hearing by fears of self-incrimination at his subsequent trial, the People’s chances of securing his incarceration through the revocation proceeding are further enhanced. And if a probationer does successfully fight revocation by testifying at the hearing, the People’s chances of securing his conviction of a new offense will have been improved by the probationer’s having been forced, in effect, to be one of the prosecution’s principal witnesses in its case in chief at his trial.” Coleman, supra, 13 Cal 3d at 876-878. (Footnotes omitted.)
The present procedure forces upon the probationer a choice which he should not, in the interests of fairness, be required to make. The issue is whether forcing the defendant at a revocation hearing to choose between either testifying and incriminating himself later at trial, or else remaining silent and surrendering a valuable defense, constitutes an impermissible penalty for the exercise of the privilege against self-incrimination. We are certain that to place the defendant in such a dilemma is inconsistent with our notions of substantial justice, but we are not certain that our result is constitutionally-compelled. The United States Supreme Court has not passed upon this precise issue, and lower court cases have reached varying results. In Flint v Mullen, 499 F2d 100 (CA 1, 1974), cert den, 419 US 1026; 95 S Ct 505; 42 L Ed 2d 301 (1974), the Court held that the prosecution need not hold the trial first and need not grant immunity for testimony given at the probation revocation hearing. This result has received criticism from commentators who see the choice forced upon defendant as unconstitutional. Note, 21 Wayne L Rev 1127 (1975); Case Comment, 55 Boston U L Rev 847 (1975). In Melson v Sard, 131 US App DC 102; 402 F2d 653, 655 (1968), the Court apparently agreed, in the context of parole revocation hearings:
"If a parolee is not given the full and free ability to testify in his own behalf and present his case against revocation, his right to a hearing before the Board would be meaningless. Furthermore, his Fifth Amendment rights must not be conditioned 'by the exaction of a price.’ Accordingly, we hold that any self-incriminatory statements made in a parole revocation hearing shall not be used affirmatively against the parolee in any subsequent criminal proceeding.” (Footnotes omitted.)
Several state courts which have considered the problem have found no constitutional violation in timing the probation revocation hearing prior to the trial. See Anno: Comment Note. — Procedural Requirements, Under Federal Constitution, Applicable to Revocation of Probation or Parole, 36 L Ed 2d 1077, § 18; People v Baines, 83 Mich App at 575-576 (D. E. Holbrook, Jr., J., dissenting). As noted above, California and Rhode Island have formulated rules of immunity; however, the rules were based on public policy and not constitutional grounds.
A review of United States Supreme Court cases discloses no clear answer. See Note, 74 Mich L Rev 525 (1976). In one line of decisions, the Court has condemned the imposition of penalties for the exercise of the privilege against self-incrimination. In the first of these, Garrity v New Jersey, 385 US 493, 497-498; 87 S Ct 616; 17 L Ed 2d 562 (1967), police officers being investigated for ticket-fixing were given a "choice” between furnishing possibly incriminatory answers at a hearing, or else losing their jobs for remaining silent. The Court held that any statements thus elicited were involuntarily made and therefore inadmissible in subsequent criminal proceedings. In a companion case, Spevack v Klein, 385 US 511, 515; 87 S Ct 625; 17 L Ed 2d 574 (1967), the Court disallowed the disbar ment of an attorney for failure to furnish incriminating records, stating, "In this context, 'penalty’ is not restricted to fine or imprisonment. It means * * * the imposition of any sanction which makes assertion of the Fifth Amendment privilege 'costly’.”
The reasoning of Garrity and Spevack was followed in later cases involving dismissal of governmental employees following their refusal to testify or waive immunity at hearings investigating alleged criminal conduct. Gardner v Broderick, 392 US 273; 88 S Ct 1913; 20 L Ed 2d 1082 (1968); Uniformed Sanitation Men Ass’n v Comm’r of Sanitation, 392 US 280; 88 S Ct 1917; 20 L Ed 2d 1089 (1968). Finally, in Lefkowitz v Turley, 414 US 70, 85; 94 S Ct 316; 38 L Ed 2d 274 (1973), the Court held unconstitutional the withholding of public contracts from a contractor who refused to waive the Fifth Amendment privilege before a grand jury:
" '[T]he State must recognize what our cases hold: that answers elicited upon the threat of the loss of employment are compelled and inadmissible in evidence. Hence, if answers are to be required in such circumstances States must offer to the witness whatever immunity is required to supplant the privileges and may not insist that the employee or contractor waive such immunity.’ ” .
In all of the above cases, the "penalty” for remaining silent was the certain loss of a tangible benefit — a job, a contract, or the right to practice law. A different type of penalty was considered in Simmons v United States, 390 US 377, 394; 88 S Ct 967; 19 L Ed 2d 1247 (1968), — the surrender of another constitutional right. The Simmons Court held that testimony given in support of a motion to suppress evidence was inadmissible in a subsequent trial on the issue of guilt, finding it "intolerable that one constitutional right should have to be surrendered in order to assert another”.
In the case at bar, the probationer’s dilemma at the revocation hearing could be likened to those faced by the defendants in Simmons, Garrity, and other cases involving a penalty for the exercise of Fifth Amendment rights. However, the choice-of-rights reasoning utilized in Simmons was declared "open to question” in McGautha v California, 402 US 183, 212-213; 91 S Ct 1454; 28 L Ed 2d 711 (1971). McGautha involved a challenge to the state’s procedure whereby both guilt and punishment in a capital case were determined by the jury in a single proceeding. Defendant argued that he had been forced to give up his right to remain silent on the issue of guilt in order to exercise his due process right to address his sentencer (allocution). The McGautha Court agreed that this was a difficult choice, but found no constitutional violation:
"Although a defendant may have a right, even of constitutional dimensions, to follow whichever course he chooses, the Constitution does not by that token always forbid requiring him to choose. The threshhold question is whether compelling the election impairs to an appreciable extent any of the policies behind the rights involved.” 402 US at 213.
The Court answered the above question in the negative, stating that the choice was no worse than that always present in every criminal case where after hearing the state’s evidence the defendant must decide whether to take the stand.
McGautha’s precedential value appears to have been limited by the decision in Brooks v Tennes see, 406 US 605; 92 S Ct 1891; 32 L Ed 2d 358 (1972), where the Court struck down a statute requiring the defendant to testify, if at all, before any other defense witnesses testified. The Court pointed out that a defendant may not be able to tell if his testimony will be helpful until he has seen how his other witnesses stand up under examination. Tennessee’s procedure did not allow a defendant to make his choice of whether to testify in the "unfettered exercise of his own will”; it cut down on the privilege to remain silent "by making its assertion costly”. 406 US at 610-611, quoting Griffin v California, 380 US 609, 614; 85 S Ct 1229; 14 L Ed 2d 106 (1965).
No standard emerges from the above cases for determining when a restricted choice between constitutional rights is itself unconstitutional, and when it is merely a difficult tactical decision. The only distinguishing feature appears to be the nature of the state’s burden required to effectuate the defendant’s claim. In McGautha, the defendant in effect requested that the traditional form of trial used in several states be abolished and replaced by an entirely different procedure. In Simmons and Brooks, however, no radical departure from legal tradition and no improper exercise of rulemaking power by the Court was necessary. Our case is more similar to Simmons and Brooks in this respect. There already exists a bifurcated procedure for determining probation revocation and guilt on the underlying charge, and all that is necessary to alleviate the burden on defendant’s constitutional rights is a grant of immunity for testimony which should be inadmissible anyway under the Garrity rationale. Thus, the present case could be distinguished from McGautha on its facts.
Alternatively, were we to apply the McGautha standard, we could find that compelling the election between constitutional rights in this case does impair to an appreciable extent the policies behind the rights involved. See our discussion of Coleman, supra.
However, the viability of either of these approaches is questionable, due to the recent decision in Baxter v Palmigiano, 425 US 308; 96 S Ct 1551; 47 L Ed 2d 810 (1976). In Baxter a prison inmate at a disciplinary hearing was informed that he had the right to remain silent, but that his silence would be used against him. No criminal proceedings were then pending on the violation which was the subject of the hearing. The Supreme Court first held that use immunity would be required in a later criminal trial:
"Prison disciplinary hearings are not criminal proceedings; but if inmates are compelled in those proceedings to furnish testimonial evidence that might incriminate them in later criminal proceedings, they must be offered 'whatever immunity is required to supplant the privilege’ and may not be required to 'waive such immunity.’ ” 425 US at 316, quoting Lefkowitz, supra, 414 US at 85.
The Baxter Court saw no violation of the above principle or the principle of Griffin v California, supra, forbidding the use of a defendant’s silence against him, in the state’s procedure. The Court stated:
"The Rhode Island prison rules do not transgress the foregoing principles. No criminal proceedings are or were pending against Palmigiano. The State has not, contrary to Griffin, sought to make evidentiary use of his silence at the disciplinary hearing in any criminal proceeding. Neither has Rhode Island insisted or asked that Palmigiano waive his Fifth Amendment privilege. * * * [T]his case is very different from the circumstances before the Court in the Garrity-Lefkowitz decisions, where refusal to submit to interrogation and to waive the Fifth Amendment privilege, standing alone and without regard to the other evidence, resulted in loss of employment or opportunity to contract with the State. There, failure to respond to interrogation was treated as a final admission of guilt. Here, Palmigiano remained silent at the hearing in the face of evidence that incriminated him; and, as far as this record reveals, his silence was given no more evidentiary value than was warranted by the facts surrounding his case.” 425 US at 317, 318.
Justice Brennan, joined by Justice Marshall, dissenting, wrote that the penalty imposed — 30 days in punitive segregation — made the assertion of the privilege more costly. "On the whole, the record inspires little confidence that [defendant’s] silence was not the sole basis for the disciplinary conviction.” 425 US at 332, fn 6. Justice Brennan thought the case indistinguishable from Garrity and Lefkowitz:
"The compulsion upon Palmigiano is as obvious as the compulsion upon the individuals in Garrity-Lefkowitz. He was told that criminal charges might be brought against him. He was also told that anything he said in the disciplinary hearing could be used against him in a criminal proceeding. Thus, the possibility of self-incrimination was just as real and the threat of a penalty just as coercive.” (Footnote omitted.) 425 US at 333.
Finally, Justice Brennan saw in the majority’s decision a violation of "one of the fundamental purposes of the Fifth Amendment: to preserve our adversary system of criminal justice by preventing the government from circumventing that system by abusing its powers”. (Emphasis in original.) Id. at 334. There was nothing to indicate that the disciplinary proceeding was not used as a discovery device for later criminal prosecutions; a grant of immunity at trial would be of no value to an uncounselled inmate who at the hearing did not know that such immunity would be forthcoming.
The Baxter decision, like the First Circuit’s decision in Flint v Mullen, supra, has received much criticism. See Note, 29 Baylor L Rev 620 (1977); Note, 55 North Carolina L Rev 254 (1977); Comment, 1976 Utah L Rev 572 (1976). It has also been applied in a situation where criminal proceedings were pending against the inmate. Roberts v Taylor, 540 F2d 540 (CA 1, 1976), cert den, 429 US 1076; 97 S Ct 819; 50 L Ed 2d 796 (1977). The Roberts Court, viewing the "critical factor” in Baxter to be the fact that remaining silent did not automatically result in a finding of guilt, held that the failure to grant immunity at the hearing did not invalidate the disciplinary conviction. Defendant Roberts, like defendant Rocha, had specifically refused to testify at the hearing for fear that his testimony would be used against him at trial. See also, Tinch v Henderson, 430 F Supp 964 (D Tenn, 1977); Morale v Grigel, 422 F Supp 988 (D NH, 1976).
The impact of Baxter on the case at bar is unclear. On the one hand, Baxter could be distinguished because it involved a prison disciplinary hearing at which even the minimum due process rights of Morrissey and Gagnon, supra, do not apply. Wolff v McDonnell, 418 US 539; 94 S Ct 2963; 41 L Ed 2d 935 (1974). This difference can, of course, cut both ways: it could be said that the relative absence of rights at the prison hearing makes the defendant’s testimony even more impor tant there than it is at a probation revocation hearing. See Coleman, supra, 13 Cal 3d at 883-884.
Furthermore, the reasoning employed by the Baxter Court may indicate that a prison-probation hearing distinction is unwise. In both contexts, the final determination cannot be made upon the basis of the accused’s silence alone, and the "penalty” for assertion of the Fifth Amendment privilege is not the certain loss of a tangible benefit as in Lefkowitz and Garrity. This Court views the penalty of loss of liberty as more onerous than that of prison discipline, and as much more onerous than that of the loss of a job or a contract, see Flint v Mullen, 372 F Supp 213, 219 (D RI, 1973), but we are uncertain that Baxter leaves room for such a distinction. Justice Brennan’s dissent in Baxter focused upon the same points which we do here: the importance of the defendant’s testimony at the hearing and the policy of maintaining a fair state-individual balance. These were factors which the Baxter majority apparently found insufficient to invalidate the disciplinary conviction.
For these reasons, we are constrained to base our holding upon public policy rather than constitutional grounds. We adopt the holding of the California Supreme Court in People v Coleman, supra, 13 Cal 3d at 889:
"We accordingly declare as a judicial rule of evidence that henceforth upon timely objection the testimony of a probationer at a probation revocation hearing held prior to the disposition of criminal charges arising out of the alleged violation of the conditions of his probation, and any evidence derived from such testimony, is inadmissible against the probationer during subsequent proceedings on the related criminal charges, save for purposes of impeachment or rebuttal where the probationer’s revocation hearing testimony or evidence derived therefrom and his testimony on direct examina tion at the criminal proceedings are so clearly inconsistent as to warrant the trial court’s admission of the revocation hearing testimony or its fruits in order to reveal to the trier of fact the probability that the probationer has committed perjury at either the trial or the revocation hearing.”
This rule will eliminate the possibility of illegitimate use of a probation revocation hearing as a discovery device, but will at the same time foster the interests of both the state and the defendant in a prompt, full and truthful disclosure of evidence at the hearing. Coleman, supra; DeLomba, supra, p 1276. We see no prejudice to the prosecution stemming from such a rule.
We also hold, in recognition of the concerns expressed by Justice Brennan in Baxter, supra, that the probationer must be advised before he takes the stand at the revocation hearing that his testimony and its fruits will not be admissible against him at a subsequent criminal trial on the underlying offense. As this was not done in the present case, we must reverse.
Defendant’s conviction for probation violation is reversed and the cause is remanded for further proceedings consistent with this opinion.
The trial court’s increase in the maximum sentence was based on MCL 335.348; MSA 18.1070(48) which permits doubling the sentence otherwise authorized when defendant is convicted of a "second or subsequent offense” relating to drugs. Reliance on this statute was improper, because the Federal conviction occurred after December 17, 1976, the date of defendant’s conviction on the instant charge.
"The American Bar Association’s Standards Relating to Probation (Approved Draft, 1970), § 5.3 provides: 'A revocation proceeding based solely upon commission of another crime ordinarily should not be initiated prior to the disposition of that charge.’ The commentary points out that a prior revocation hearing with its lower standard of proof and concomitantly greater incentive to present an active defense might 'compromise’ the privilege against self-incrimination. Id., at 63. The Model Penal Code would go further and require a conviction before probation can be revoked for that crime. Model Penal Code, § 301.3, Comment (Tent. Draft No. 2, 1954), pp 150-151. The California Supreme Court, for one, has banned the use of probation revocation hearing testimony in a later criminal trial; the court was acting in its supervisory capacity but the self-incrimination problem was the reason for the rule. People v Coleman, 13 Cal 3d 867; 120 Cal Rptr 384; 533 P2d 1024 (1975).” People v Baines, 82 Mich App at 441, fn 1; 266 NW2d 839 (1978). | [
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D. E. Holbrook, J.
On August 5, 1977, an Isabella County acting circuit judge set aside the previous appointment by an Isabella County circuit judge of a special prosecutor to investigate possible criminal activity in the sheriffs department. The people appeal as of right.
On June 9, 1977, the Isabella County Prosecuting Attorney petitioned the Isabella County circuit court for the appointment of a special prosecutor. The petition states as follows:
"NOW COMES Joseph T. Barberi, Prosecuting Attorney in and for Isabella County, Michigan, and respectfully shows unto this Honorable Court as follows:
"That an investigation needs to be conducted pertaining to the sale of a .38 calibur [sic] S&W Revolver, serial number D138195 previously reported as being stolen, said sale allegedly being made by a Deputy Sheriff.
"That a conflict of interest exists with regard to such investigation for the reason that a close working rela tionship exists between the Prosecuting Attorney’s Office and the Isabella County Sheriffs Department. The Prosecuting Attorney’s Office also is defending the Sheriffs Department in a civil law suit in which the possible Defendant is one of the alleged witnesses.
"That because of the conflict of interest, your Petitioner prays that a Special Prosecuting Attorney be appointed by the Court to conduct the investigation herein mentioned.
"Accordingly, your Petitioner prays that TIMOTHY J. TAYLOR, Attorney at Law, a member of the Isabella County Bar, be appointed by the Court to act as Special Prosecutor in this matter, with authority to perform all the duties and discharge all the functions of such office in relation to the investigation herein mentioned.”
The prosecutor’s petition was granted by an Isabella County circuit judge as follows:
"The Court having been advised that the duly elected Prosecuting Attorney of Isabella County, Joseph T. Barberi, will not be in a position to serve the People in the matter of the investigation of the sale of a stolen revolver because of a conflict of interest due to the close working relationship between the Prosecuting Attorney’s Office and the Isabella County Sheriffs Department,
"IT IS HEREBY ORDERED that Timothy J. Taylor, a member of the Isabella County Bar, is HEREBY appointed to act as Special Prosecuting Attorney of Isabella County, with authority to perform all the duties and discharge all the functions of the office of Prosecuting Attorney insofar as they pertain to the investigation herein mentioned.”
The special prosecutor conducted an investigation into the matter and on June 13, 1977, authorized the issuance of a warrant which charged the defendant with embezzlement or fraudulent conversion of certain property less than $100 in value. On July 11, 1977, the special prosecutor autho rized the issuance of an "amended” warrant which charged defendant with additional counts of forging a public record with intent to defraud, receiving and concealing stolen property less than $100, and a failure to present a firearm for safety inspection.
At the preliminary examination held on July 21, 1977, the forgery and fraudulent conversion counts were dismissed on the grounds of insufficient evidence. The defendant then filed a motion in circuit court to set aside the circuit judge’s appointment of the special prosecutor. This motion was heard by the Isabella County probate judge who was sitting on assignment in the circuit court. On August 9, 1977, the acting judge entered an order setting aside the appointment of the special prosecutor and dismissing the warrants authorized by him. On August 5, 1977, the judge in his opinion wrote:
"In conclusion it is the opinion of this judge, after a careful and exhaustive search of the Michigan law, that while a circuit judge may appoint a special prosecuting attorney to act in Circuit Court, he may not appoint such a special prosecutor to investigate a criminal complaint, authorize warrants, or appear in misdemeanor cases and preliminary examinations in the district court.” (Emphasis in original.)
On August 9, 1977, the judge entered the following order:
"The Court having considered the Motion of the Defendant, Lee Howard Davis, to set aside the Order appointing Timothy J. Taylor Special Prosecuting Attorney and the Court having considered the oral arguments of the parties and having considered the Briefs of the parties and the law, and having determined that the Order should be set aside;
"IT IS HEREBY ORDERED that the Order of June 9, 1977 appointing Timothy J. Taylor Special Prosecuting Attorney be and is hereby set aside.
"IT IS FURTHER ORDERED that the warrants which were authorized by the said Timothy J. Taylor be and are hereby dismissed.”
The first issue raised on appeal is whether the circuit judge has statutory authority to appoint a special prosecutor to investigate possible criminal activity, issue warrants and initiate prosecution in district court.
On appeal the prosecutor asserts that the circuit court has inherent and statutory authority to appoint a special prosecutor for proceedings in district court. The defendant disagrees.
The power of the circuit court to appoint a special prosecutor is provided for in MCL 49.160; MSA 5.758, as follows:
"The supreme court and each of the circuit courts may whenever there shall be no prosecuting attorney for the county or when the prosecuting attorney shall be absent from the court, or unable to attend to his duties, if either of said courts shall deem it necessary, by an order to be entered in the minutes of such court, appoint some other attorney at law to perform, for the time being, the duties required by law to be performed in either of said courts by the prosecuting attorney, who shall thereupon be vested with all the powers of such prosecuting attorney for that purpose.”
A statute (How Stat § 559) which is identical to MCL 49.160; MSA 5.758 was construed by the Michigan Supreme Court in Sayles v Circuit Judge of Genesee County, 82 Mich 84; 46 NW 29 (1890). The acting circuit judge relied on this case when he held that MCL 49.160; MSA 5.758 does not authorize circuit judges to appoint special prosecu tors to investigate possible crime, issue warrants and initiate prosecution in the district court.
The facts in the Sayles case indicate that Mr. Mallery wanted Mr. Sayles prosecuted for forgery. The prosecutor issued a warrant, but before the preliminary examination, he went into a copartnership with the attorneys who represented Sayles. The prosecutor disqualified himself in the case and requested that a special prosecutor be appointed. The circuit judge appointed a special prosecutor. The special prosecutor appeared before the justice of the peace who would conduct the preliminary examination and stated that he did not take an enthusiastic interest in prosecuting the case. The justice of the peace then dismissed the case. Mr. Mallery then petitioned the circuit court to appoint a special prosecutor to investigate the facts and institute criminal proceedings, if necessary. The circuit judge felt that the justice of the peace did not act properly when he discharged Mr. Sayles and appointed George Durand as special prosecutor. The defendant appealed this appointment and the Michigan Supreme Court addressed the issue of the power of a circuit judge to make this appointment.
The Court cited the statute, How Stat § 559, which is exactly the same as MCL 49.160; MSA 5.758, and stated: "This section plainly refers to cases arising in or pending in those courts, and not to cases out of such courts”. 82 Mich at 89. (Emphasis supplied.) The Court went on to say at 90:
"But the circuit judge cannot appoint a special prosecuting attorney to investigate a charge of crime, or to conduct an examination before a justice of the peace. The circuit judge is a conservator of the peace, but that does not authorize him to appoint any one to act as a public prosecutor, except in his own court, in cases over which he has jurisdiction. Even then his power is statutory.”
The language of the Supreme Court in Sayles is very specific in its interpretation of a statute which is identical to the statute in the instant case. Thus, we are constrained to hold that the circuit court does not have the power under MCL 49.160; MSA 5.758 to appoint special prosecutors for the purposes here requested. If circuit judges are to have this power, it is up to the Michigan Legislature to so provide or for the Michigan Supreme Court to reconsider the Sayles decision.
The next issue raised on appeal is whether the trial court erred in issuing the order which dismissed the warrants that the special prosecutor ordered.
The plaintiff maintains that the dismissal of the warrants authorized by the special prosecutor was improper because the de facto doctrine will validate them. The defendant alleges that there is no reason to apply the de facto doctrine in the instant case.
The de facto doctrine will validate, on grounds of public policy and prevention of a failure of public justice, the acts of officials who function under color of law. People v Townsend, 214 Mich 267, 270; 183 NW 177 (1921), People v Matthews, 289 Mich 440, 447-448; 286 NW 675 (1939).
In 46 CJ, Officers, § 366, p 1053, it states as follows:
"A person will be held to be a de facto officer when, and only when, he is in possession, and is exercising the duties, of an office; his incumbency is illegal in some respect; he has at least a fair color of right or title to the office, or has acted as an officer for such a length of time, and under such circumstances of reputation or acquiescence by the public and public authorities, as to afford a presumption of appointment or election, and induce people, without inquiry, and relying on the supposition that he is the officer he assumes to be, to submit to or invoke his action; and, in some, although not all, jurisdictions, only when the office has a de jure existence.” (Footnotes omitted.)
Also see, 67 CJS, Officers, § 135, pp 438-440.
In the instant case, the special prosecutor was in possession and exercised the duties of his office. His incumbency was illegal because the circuit judge did not have the power to appoint him, for the purposes intended. However; he had a fair color of title to the office. Therefore, we apply the de facto doctrine to the instant case and hold that the judge erred in dismissing the warrants issued by the special prosecutor. The authority of the de facto officer in this instance could not be attacked collaterally, but required a proceeding instituted directly for that purpose. The instant circuit court action satisfied this requirement. 46 CJ, Officers, §366, p 1054; 67 CJS, Officers, §135, p 440. In affirming the trial court in this regard, we rule that effective with the trial court’s ruling, the de facto status of the special prosecuting attorney ended.
The case may be continued by the attorney general under MCL 14.28; MSA 3.181, or other appropriate manner.
Our holding finds support in one of our sister states. In State v Bell, 84 Idaho 153; 370 P2d 508 (1962), a special prosecutor was appointed because of the close business and personal relationship the prosecutor had with the defendant which made prosecution difficult of performance. The Court found the special prosecutor’s appointment valid and went on to say at 84 Idaho 160; 370 P2d 511-512:
"In such case, even though the appointment were defective or irregular, so far as the defendant is concerned the special prosecutor nevertheless became a de facto officer, and his appointment, and the prosecution of the action by him, was not subject to collateral attack by the defendant, in the absence of a showing that he was denied a fair trial by reason thereof.”
We need not address plaintiffs remaining issue.
Affirmed in part and reversed in part. No costs, a public question being involved.
Beasley, J., concurred. | [
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Danhof, C.J.
Defendant was convicted after a jury trial of first-degree felony murder under MCL 750.316; MSA 28.548, and sentenced to mandatory life imprisonment. Claiming several errors in the proceedings below, he appeals as of right.
Defendant mainly objects to the trial court’s instructions on mens rea. By our disposition of this issue, we eliminate the need to discuss other alleged grounds for reversal.
At trial, the prosecution claimed defendant had intentionally aided Ronald Wilson in the armed robbery of a store, and that Ronald Wilson, in committing that robbery, shot and killed Arretta Lou Ingraham. The people proceeded on a felony-murder theory that any killing committed in the course of a robbery is first-degree murder under MCL 750.316; MSA 28.548, and that an accomplice to the underlying felony is liable as a principal for the murder. Citing People v Fountain, 71 Mich App 491; 248 NW2d 589 (1976), defendant argues that MCL 750.316; MSA 28.548 is not a true felony-murder statute as it only applies after murder has been found, and then only to establish the degree of the offense. Under Michigan common law, malice is still an independent, necessary element of murder which may be inferred by the jury from the commission of an underlying felony, but may not be imputed by the court.
We agree with defendant and the panel in People v Fountain, supra, that there is no felony-murder doctrine in Michigan. The statutory and common law foundations for this ruling are well set out in the Fountain opinion. We add here that the ruling also is in line with the basic premise that a criminal state of mind is the essence of crime. See LaFave & Scott, Criminal Law, § 65, pp 515-17. In addition, by requiring an independent finding of malice, the rule does not substantially thwart the goal of deterring crime, as the punishment of negligent conduct only has a marginal deterrent effect, nor does it overburden the state in prosecuting criminals, as malice may often be inferred from the nature of the underlying felony and the circumstances surrounding its commission. People v Fountain, .supra.
From this view of felony murder it follows that an accomplice to robbery cannot be liable for a murder committed in the course of that robbery unless he acted with malice. While a majority of state courts hold an accomplice liable for all the foreseeable consequences of the criminal scheme he advances, LaFave & Scott, supra, we find that accomplice liability predicated on negligence, even when the crime involves a more serious state of mind, is as obnoxious as felony murder to the basic precepts and purposes of our criminal law. Logically, we cannot accept the former doctrine while rejecting the latter. Indeed, as Professors LaFave and Scott point out, the negligence standard for accomplice liability only makes sense in the context of felony murder — when a principal can be convicted for homicide without any showing of recklessness or intent, it is no less objectionable to hold the accomplice liable without showing he acted with a guilty mind. We find that it makes little sense to convict either the principal or accomplice under such circumstances.
Michigan case law also provides some support for this conclusion. Thus, the Michigan Supreme Court in People v Knapp, 26 Mich 112 (1872), broadly held that an accomplice is liable for any acts fairly within the common enterprise that might have been expected to happen. Later, it narrowed that decision in People v Foley, 59 Mich 553; 26 NW 699 (1886), by holding that an accomplice to an assault cannot be found liable for a robbery that was within the responsibility of all the assailants, but not shown as a matter of fact to be within the defendant’s specific intent. The inference is that foreseeability is a necessary but not a sufficient element of accomplice liability for unintended consequences. See also People v Koharski, 177 Mich 194; 142 NW 1097 (1913); People v Belton, 160 Mich 416; 125 NW 386 (1910); People v Cleveland, 107 Mich 367; 65 NW 216 (1895).
We hold, therefore, that to be liable for murder an accomplice to robbery must have acted with the intent to kill or in reckless disregard of a known and high degree of risk that death or serious bodily harm might occur.
In the instant case, the only instruction that indicated a need to find some mens rea beyond the intent to aid and abet robbery was the judge’s charge that the murder must have been found to be "fairly within the scope of a criminal enterprise and it might have been expected to happen in the course of committing this robbery with a pistol”. That charge does not satisfy the test we have laid out in this opinion as it fails to inform the jury that malice entails a more than foreseeable risk of death and is based on defendant’s subjective awareness of the risks and consequences of his acts. LaFave & Scott, supra, §71, p 554; CJI, 16:2:03 and commentary, pp 16-90-16-99. Although the record contains facts from which an inference of malice might have been drawn (i.e., aiding an armed robbery itself creates a risk of death), the issue must be retried and put before the jury. People v Fountain, supra.
Reversed and remanded for a new trial.
R. H. Campbell, J., concurred. | [
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D. E. Holbrook, J.
On July 26, 1976, defendant was convicted, on his plea of guilty but mentally ill, of criminal sexual conduct in the first degree, contrary to MCL 750.520b; MSA 28.788(2). The plea was the result of a plea bargain whereby defendant pled "guilty but mentally ill” to Count I of criminal sexual conduct in the first degree, and a second count of criminal sexual conduct in the first degree was dismissed. On August 6, 1976, defendant was sentenced to life in prison. Defendant appeals as of right.
The defendant raises eight issues on appeal, only one of which merits discussion. The defendant asserts that the trial judge erred when he relied on the preliminary examination transcript in order to establish a factual basis for defendant’s plea of guilty but mentally ill.
The issue of whether or not a trial judge should be able to use a preliminary examination transcript to establish a factual basis for a guilty but mentally ill plea is one of first impression in this jurisdiction. However, there is considerable case law discussing the use of a preliminary examination transcript in order to establish the factual basis for guilty pleas and for nolo contendere pleas.
The use of the preliminary examination transcript as a means of establishing the factual basis of a guilty plea has been prohibited by the Michigan courts. People v Schneff, 392 Mich 15, 23; 219 NW2d 47 (1974), People v Taylor, 387 Mich 209, 225; 195 NW2d 856 (1972), and People v Zuniga, 56 Mich App 231, 234; 223 NW2d 652 (1974). In Schneff, supra, at 25-26, the Court states its reasons for prohibiting the use of a preliminary examination transcript as follows:
"It is our opinion that MCLA 768.35; MSA 28.1058 requires the trial court to derive the factual basis for a guilty plea directly from defendant or through testimony developed at a full adversarial trial. This procedure also provides the best method for assurance that a defendant understands the nature of the charge to which he is pleading. A complete recitation of facts from the defendant also provides for increased appellate certainty when reviewing challenged guilty pleas.
"We find therefore that the trial judge erred in considering the preliminary examination testimony when accepting defendant’s guilty plea.” (Footnotes omitted.)
In a footnote to the above quote we find the following:
"We note that defendant consented to the trial court’s examination of the preliminary examination transcript. The result is not, however, changed by this consent. MCLA 768.35; MSA 28.1058 places the 'duty’ on the trial court to insure that the plea is freely and knowingly proffered by the defendant. The procedures required in the plea taking process should be strictly complied with and may not be waived by the defendant. Cf. People v McMiller, 389 Mich 425, 432-434; 208 NW2d 451 (1973).” Schneff, supra, at 26, n 3.
Thus, a judge may not consider the preliminary examination transcript to establish a factual basis for a defendant’s guilty plea.
There is an exception to the rule prohibiting the use of a preliminary examination transcript in order to establish a factual basis in the case of a nolo contendere plea. People v Chilton, 394 Mich 34; 228 NW2d 210 (1975), People v Conville, 55 Mich App 251, 253-254; 222 NW2d 312 (1974), People v Gonzales, 70 Mich App 319, 324; 245 NW2d 734 (1976), lv den 402 Mich 815 (1977), People v Belanger, 73 Mich App 438, 455; 252 NW2d 472 (1977).
The prosecutor urges this Court to allow the use of a preliminary examination transcript to establish a factual basis for a guilty but mentally ill plea for the same reason that the preliminary examination transcript is allowed in a nolo contendere plea. We must decline. The people have not shown us a case which allows this. We hold that the nolo plea rule is not applicable to a guilty but mentally ill plea.
In the event that there is not a sufficient showing of a factual basis to disclose defendant’s participation in a crime, the trial judge may hold a hearing similar to the hearing on the issue of defendant’s mental illness, MCL 768.36; MSA 28.1059. At this hearing either party may present evidence to satisfy the judge of the factual basis for the plea. Such a hearing would provide a complete recitation of the facts for appellate review.
We remand to the trial court for further hearing. On remand the prosecutor shall be given an opportunity to establish the factual basis. If he is able to do so and there is no contrary evidence, the judgment of conviction shall be affirmed. If the prosecutor is unable to establish a factual basis, the judgment of conviction shall be set aside. If contrary evidence is produced, the matter shall be treated as a motion to withdraw the guilty plea and the court shall decide the matter in the exercise of its discretion. Guilty Plea Cases, 395 Mich 96, 129; 235 NW2d 132 (1975), People v Stewart, 69 Mich App 528, 532; 245 NW2d 121 (1976).
Remanded for further proceedings in accord with this opinion.
Beasley, J., concurred. | [
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T. M. Burns, J.
This appeal involves three cases consolidated by the Court for purposes of review. Each of the defendants pled guilty to a charge of larceny from a person, MCL 750.357; MSA 28.589, in 1974 and was placed on three years probation. In each case probation was revoked because subsequent criminal charges were brought against the defendant. Each defendant now appeals by right from the revocation of probation based on subsequent criminal activity.
Appeal of Nesbitt
No. 30707
Nesbitt was served with a notice of violation of probation after he was arrested for a breaking and entering in August of 1976. A hearing on the petition to revoke probation was held on September 1 and 21 of 1976. At the conclusion of the hearing, the court determined that a violation of one of the conditions of probation had occurred and probation was revoked. Defendant was subse quently sentenced to a term of nine months to ten years.
The only issues raised in this appeal relate to the validity of the original guilty plea in 1974. In People v Pickett, 391 Mich 305, 316-317; 215 NW2d 695 (1974), the Court held:
" * * * that the appeal as of right following determination of probation violation and sentence must necessarily be limited to those matters relating to the probation violation and the hearing thereon. We have given defendant the opportunity to raise any questions concerning his trial on his first appeal as of right. To allow him to raise trial related matters on this second appeal would, in effect, be granting two rights of appeal to the same final determination and make the 60-day requirement of GCR 1963, 803.1 in taking an appeal as of right meaningless. See, People v Nordstrom, 73 Ill App 2d 168; 219 NE2d 151 (1966); Gossett v State, 282 SW2d 59 (Tex Crim App, 1955).”
The issues that defendant attempts to raise are not properly before the Court. The revocation of probation is affirmed.
Appeals of Kendrick and Woodward
Nos. 77-1810 and 77-2024
The appeals of Kendrick and Woodward are factually related and may be considered together. In each of these cases the alleged violation of probation involves several charges of criminal sexual conduct. Defendants were served with notice of the violation and a petition to revoke after the preliminary exam on the criminal sexual conduct charges. Defendants raised several objections to proceeding with the revocation hearing before the trial on the criminal sexual conduct charges and before the judge who had placed them on proba tion. The objections were denied and a hearing scheduled.
Before the hearing began the objections to proceeding at that time and before that judge were renewed and again denied. The only evidence of a violation of a condition of probation was provided by the complaining witness in the criminal sexual conduct case. She testified about the events surrounding those offenses and identified each of these defendants as a participant.
Each of the defendants was then allowed to present his case. Each took the stand and denied any involvement in the offense. Each claimed to have been somewhere else.
At the conclusion of the testimony, the trial court did not make specific findings of fact. However, he did announce his intention to revoke probation. Probation was then revoked and each defendant was subsequently sentenced to serve six to ten years in prison.
I
Kendrick and Woodward both claim that it is a violation of their right to remain silent to proceed with the revocation hearing before the trial on the underlying offense and that they did not properly waive that right at the hearing in this case.
We resolve the first point in the same manner as the panel did in People v Baines, 82 Mich App 438; 266 NW2d 839 (1978). The basis of the argument is that defendant will be deterred from testifying at the revocation proceeding because anything he says in that proceeding could be used at the subsequent trial. We recognize that a problem can exist when defendant is forced to make a "double defense” by holding the revocation proceeding first. However, in this case each defendant did take the stand and testify in his own behalf. They were not deterred by the possible threat of the use of that testimony in their subsequent trial. If the defendants’ revocation hearing testimony is used at the subsequent trial, that would be the appropriate proceeding at which to consider this question.
The defendants’ second point in this issue must also be rejected. Both defendants were represented by counsel at the revocation proceeding and both testified without claiming that to do so would violate their privilege. Since the privilege was not claimed, we have no occasion to determine if it was voluntarily waived. People v Hunley, 63 Mich App 97; 234 NW2d 169 (1975).
II
Both defendants also contend that it is contrary to the statute regulating revocation of probation, MCL 771.4; MSA 28.1134, to base revocation of probation on a subsequent violation of the law before the criminal charge is disposed of by trial or plea.
We decline to accept defendants’ construction of the statute. The proceeding to revoke probation is not a new criminal prosecution, but merely a hearing to determine whether defendant is entitled to continue on probation. One or the other proceeding must come first, and as another panel of this Court has noted, there is no reason why it cannot be the revocation hearing. People v Eric Baines, 83 Mich App 570; 269 NW2d 228 (1978). Indeed, the substantial weight of authority holds that it is not necessary to delay a probation or parole revocation hearing merely because criminal proceedings are pending against the probationer arising out of the acts for which revocation is sought. See cases collected in Anno: 36 L Ed 2d 1077, § 18(a), 1105-1106.
The record in this case shows that defendant Kendrick was subsequently convicted of the charged offenses. The record does not show the disposition of the charges against Woodward. But, even if he was acquitted, because of the different burden of proof (preponderance of the evidence, not beyond a reasonable doubt, People v Miller, 77 Mich App 381; 258 NW2d 235 [1977]), the prior revocation proceeding would not be invalidated. People v Baines, supra. See also, Anno: 76 ALR3d 564, § 2.
The statute requires the revocation hearing to be "summary and informal and not subject to the rules of evidence or of pleadings applicable in criminal trials”. MCL 771.4; MSA 28.1134. It would be inconsistent with the expressed terms of the statute to require the prosecution to show defendant’s guilt beyond a reasonable doubt on the new offense in a separate trial before proceeding to revoke defendant’s probation based on that conduct. There was no error in holding defendants’ revocation hearing before disposing of the new criminal charges.
Ill
Both defendants also challenge the fact that the trial court did not make written findings of fact, as required by the due process clause, or a specific finding of fact as required by GCR 1963, 517.1.
We first examine the constitutional claim. In Gagnon v Scarpelli, 411 US 778; 93 S Ct 1756; 36 L Ed 2d 656 (1973), the Court adopted certain minimum due process standards for probation revocation proceedings. Among the stated requirements is "a written statement by the factfinders as to the evidence relied on and reasons for revoking [probation or] parole”. 411 US at 786.
However, the Court did not intend to establish an inflexible structure for probation revocation proceedings. People v Blakely, 62 Mich App 250, 254; 233 NW2d 523 (1975). The purpose of the written statement is to allow a reviewing court to determine whether there was a factual basis for revocation and provide the probationer with a record of the proceeding so that a second revocation proceeding could not be based on the same conduct. Kartman v Parratt, 535 F2d 450 (CA 8, 1976). In Michigan the entire probation revocation hearing is transcribed. Therefore, we conclude that if the court adequately complies with GCR 1963, 517.1 the due process standard will have been met. See, State v Fry, 15 Wash App 499; 550 P2d 697 (1976).
In People v Jackson, 390 Mich 621; 212 NW2d 918 (1973), the Court held that GCR 1963, 517.1 is applicable to criminal as well as civil proceedings and that where the trial court does not comply with the rule the appropriate remedy is to remand for further factfinding, not reversal. We hold the rule is also applicable to revocation proceedings, although they are not, strictly speaking, criminal prosecutions.
The limitations on remand are also applicable. In Jackson, the Court stated:
"A judge’s failure to find the facts does not require remand where it is manifest that he was aware of the factual issue, that he resolved it and it would not facilitate appellate review to require further explication of the path he followed in reaching the result as, for example, where the only factual issue is identification. See People v Green, 32 Mich App 482; 189 NW2d 122 (1971). See, also, People v George Scott, 21 Mich App 217-218; 175 NW2d 312 (1970).” 390 Mich at 627, n 3.
Here the trial court did not make specific findings of fact, he simply announced his decision to revoke probation. But, from the record it is clear that he resolved the factual question of defendants’ participation in the subsequent offenses against them and believed the victim. A remand to further articulate this finding would not aid in our review. The reasoning which supports the requirement of making findings of fact is satisfied. There was no error on this point.
IV
Defendant Woodward claims that he was denied due process, as defined in Gagnon, because the trial court was not a neutral and detached hearing body. The claim is based on the fact that the judge who heard the revocation petition was the same judge who had originally placed defendant on probation and also the fact that Recorder’s Court was in the midst of a crash program which put pressure on the court to move the docket.
The "neutral and detached hearing body” requirement is aimed at preventing revocation by one who was directly involved in bringing the charges against the defendant, such as a probation officer, or one who has personal knowledge of an event upon which the charge is based, such as a judge who orders revocation because of a failure to appear before him. McGuire v Warden, 229 NW2d 211 (ND, 1975), Edwardsen v Gray, 352 F Supp 839 (ED Wis, 1972). See also, Louk v Haynes, — W Va —; 223 SE2d 780 (1976). As each of these courts recognized, a trial court which has placed a defendant on probation is not precluded, simply by that fact, from conducting the hearing on a petition to revoke. Cf. People v Blakely, 62 Mich App 250, 255; 233 NW2d 523 (1975) (dictum). We so hold.
There has been no allegation that the court was personally biased against defendant. Nor does defendant’s argument concerning the crash program in Recorder’s Court strike us as persuasive. A finding that defendant did not violate probation would also remove the case from the docket. The trial court’s decision to revoke probation was adequately supported by the record. We find no error in this issue.
V
The final issue involves defendant Woodward’s claim that the trial court relied on prejudicial material contained in the presentence report in setting his sentence. In rebutting defense counsel’s claim that defendant had no prior trouble with the law, other than the offense for which he was placed on probation, the trial court pointed out an incident which was strikingly similar to the event which led to probation being revoked. The defendant did not deny that the incident occurred, but attempted to explain it. No further objection to consideration of this matter was raised by defendant or his attorney. The court was presented with defendant’s side of the story. We can find no error. People v McIntosh, 62 Mich App 422; 234 NW2d 157 (1975), aff'd in part, rev’d in part on other grounds, 400 Mich 1; 252 NW2d 779 (1977).
The judgment in each case is affirmed.
Cynar, P.J., concurred.
The charges against each of the defendants were based on a single incident. After a mistrial each defendant pled guilty to the offense noted. Kendrick pled guilty at the same time as the other defendants, but his plea was not accepted until January 16, 1975, so that a term of probation for still another offense could expire before a conviction in this case was entered.
US Const, Am V; Const 1963, art 1, § 17.
Kendrick’s attorney states the problem in these terms: "During the hearing, the defendant was forced to testify in his own behalf in order to defend himself against the charges, and consequently, had to relinquish his constitutional right to remain silent at the trial on the new charges." (Emphasis added.)
Woodward’s attorney argues: "The defendant is forced to relinquish this right prior to his trial and/or conviction to defend himself in the probation hearing. If he does not testify, without question he would be violated and remanded.”
By statute, each order placing a defendant on probation requires as a Condition for continued probation that the probationer not violate any criminal law of the state or ordinance of any municipality in the state. MCL 771.3; MSA 28.1133.
The ABA Standards Relating to Probation (Approved Draft, 1970), § 5.3 suggests that revocation based solely on new criminal conduct should be postponed until the new charge is disposed of. Neither our Supreme Court or any panel of this Court has adopted this standard.
It is unclear whether this incident was the basis of the charge for which defendant earlier pled guilty and was placed on probation. The prosecutor claims that it was. | [
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W. Van Valkenburg, J.
New and complex legislation, such as 1972 PA 294, often provides a fertile breeding ground for interpretative litigation. The present case is illustrative of that situation as this Court is called upon to interpret the intention of the Legislature when it enacted MCL 500.3107(b); MSA 24.13107(b). That legislation reads in pertinent part as follows:
"Work loss consisting of loss of income from work an injured person would have performed during the first 3 years after the date of the accident if he had not been injured and expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of himself or of his dependent.”
The present controversy centers around the word "would” and its meaning in the context of that statute.
Plaintiff, a housewife, alleged in her complaint that she sustained disabling injuries as a result of an automobile accident on May 9, 1975. By virtue of an insurance policy issued by defendant to her husband, she claimed personal protection benefits as set forth therein.
She presented the following allegation in paragraph 6 of her complaint:
"As a result of the injuries sustained in the described accident, Plaintiff suffered a loss of earning capacity entitling her to benefits under Sec. 3107 of the No-Fault Act, for wage loss benefits from the date of the accident for a period of three years.”
Defendant filed a motion for summary judgment pursuant to GCR 1963, 117.2(1), on the ground that plaintiff had failed to state a claim upon which relief could be granted. Defendant’s theory was that the statute provided no benefits for loss of earning capacity but only for work loss consisting of lost income from work that an injured person would have performed if no injury had occurred.
The trial court, after receiving the parties’ briefs, granted defendant’s motion, stating in part as follows:
"The court feels that the language of the statute is clear and unambiguous. It was the legislative’s [sic] intent to provide benefits, only for actual work loss sustained. It must be presumed * * * that the legislature was fully cognizant of the law, case law, common law, court law, if you please, that existed in Michigan at the time that they enacted the no-fault statute.”
Therefore, this issue is centered on the single question of whether the Legislature intended to include loss of earning capacity as a part of the benefits. The trial judge held that it did not. We agree.
First, we should note that the word "would” is the past tense of "will” and more particularly defined in Safety Cab, Inc v Ferguson, 137 Ind App 644, 651; 205 NE2d 827 (1965):
"The Oxford English Dictionary, Vol. XII, p. 137, meaning no. 42 defines the word 'would’ as 'expressing merely a possibility or contingency in the supposed case’. Black’s Law Dictionary, 4th Ed., p. 1782, defines the word 'would’ as 'a word sometimes expressing what might be expected. Often interchangeable with the word "should”.’ ”
No definition of the word has been located in Michigan cases, but the Supreme Court in Prince v Lott, 369 Mich 606, 610; 120 NW2d 780 (1963), did infer that it would follow the usual meaning when it was held that:
"Defendants would not have been entitled to an instruction of the kind suggested had they requested it because the factor to be considered in determining such damages is not what plaintiff would have but what he could have earned but for the injury. It is the loss of earning capacity for which damages are to be awarded.”
The law is well established that when the language of a statute is clear and unambiguous no interpretation need or can be made. Jones v Grand Ledge Public Schools, 349 Mich 1; 84 NW2d 327 (1957), Acme Messenger Service Co v Unemployment Compensation Comm, 306 Mich 704, 709; 11 NW2d 296 (1943), Murray v Ferris, 74 Mich App 91, 94; 253 NW2d 365 (1977); Schigur v Secretary of State, 73 Mich App 239, 243; 251 NW2d 567 (1977), Gregory Boat Co v Detroit, 37 Mich App 673, 676; 195 NW2d 290 (1972); Collins v Motorists Mutual Ins Co, 36 Mich App 424, 430; 194 NW2d 148 (1971).
An extension of that rule was promulgated by the Supreme Court in MacQueen v City Comm of Port Huron, 194 Mich 328, 342; 160 NW 627 (1916). There the Court held:
"It is a cardinal rule that the legislature must be held to intend the meaning which it has plainly expressed, and in such cases there is no room for con struction, or attempted interpretation to vary such meaning.”
Further, plaintiff contends that the common-law tort rule should not be considered as abrogated unless there is a clear intent to do so. There is little argument about this principle. 73 Am Jur 2d, Statutes, § 181, p 384. However, plaintiffs reliance upon Garwols v Bankers Trust Co, 251 Mich 420, 427; 232 NW 239 (1930), is misplaced. There an illegitimate son, and sole heir, murdered his mother with the thought that he would inherit her estate and thereafter be able to marry a woman who had rejected him because of his poverty. The conclusion of the Court is self-explanatory:
"The omission to so foresee and to provide therefor cannot be presumed to work a repeal of the fundamental rule of the common law under which this murderer is disabled from inheriting. By so holding we are not grafting an exception into the statute by construction, but we are construing the statute according to the obvious intent of the legislature.”
The law is clear that the Legislature possesses the right to extinguish the common-law measure of damages by appropriate language. "A statute which expressly extinguishes a common-law right is a proper exercise of legislative authority. Bean v McFarland, 280 Mich 19; 273 NW 332 (1937).” Dole v Oosting, 82 Mich App 291, 297; 266 NW2d 795 (1978).
This Court in Shavers v Attorney General, 65 Mich App 355, 366; 237 NW2d 325 (1975), aff'd in part, rev’d in part, 402 Mich 554; 267 NW2d 72 (1978), stated, "Common law remedies are not sacrosanct * * * and their replacement by other means of redress is within the Legislature’s prerogative”. (Citations omitted).
The Supreme Court in Boyer v Backus, 282 Mich 701, 704; 280 NW 756 (1938), said, "[b]ut the common law does not remain in force if it appears that the rule has been changed by statute”.
Further evidence of the Legislature’s intent can be gleaned from the title of the act. Kalee v Dewey Products Co, 296 Mich 540, 545; 296 NW 826 (1941). The title of 1972 PA 294, reads in part: "An act * * * to modify tort liability arising out of certain accidents; to require security for losses arising out of certain accidents * * * ”.
Additionally, the Legislature by the enactment of 1975 PA 311, being MCL 500.3107a; MSA 24.13107(1), which provides for payment to one temporarily unemployed on the basis of earned income during the last month in which he was working full time, clearly indicates that loss of earning capacity was not to be compensated.
The discussion in Harper v Progressive Casualty Ins Co, 79 Mich App 764, 766-767; 263 NW2d 1 (1977), is very helpful in determining the legislative intent. As explained therein, the Legislature must have been "familiar with the intention ascribed by the drafters” of the uniform motor vehicle accident reparation act, 13 Uniform Laws Annotated 358, 362, § l(5)(ii) as § 3107(b) is copied almost verbatim therefrom. The drafters of the uniform act made known their intentions in no uncertain terms:
" 'Work loss’, as are the other components of loss, is restricted to accrued loss, and thus covers only actual loss of earnings as contrasted to loss of earning capacity. Thus, an employed person suffers no work loss from injury until the time he would have been employed but for his injury.” 13 Uniform Laws Annotated 358, 362; comments to § l(5)(ii) of the uniform act.
Finally, our decision in the present case is supported by this Court’s decision in Nawrocki v Hawkeye Security Ins Co, 83 Mich App 135; 268 NW2d 317 (1978), which, while varying factually from the present case, comes to the same result.
Therefore, by virtue of the above definitions and the authorities hereinbefore cited, we conclude that the trial judge was correct in holding that the Legislature intended to provide damages for work loss only and not for loss of earning capacity.
Plaintiff next contends that the trial court’s interpretation of MCL 500.3107(b); MSA 24.13107(b) denied her equal protection of the law under both the United States and Michigan Constitutions.
The equality of rights protected by our state constitution is the same as that protected and preserved by the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. Const 1963, art 1, §§ 1 and 2; US Const, Am XIV.
The purpose of the Equal Protection Clause of the Fourteenth Amendment is to secure every person within a state’s jurisdiction against intentional and arbitrary discrimination, whether occasioned by the express terms of a statute or by its improper execution by duly constituted agents. Fox v Employment Security Comm, 379 Mich 579, 588; 153 NW2d 644 (1967). Equal protection of the law requires that all persons subject to particular legislation be treated alike under like circumstances and conditions, but the guarantee of equal protection of the law is not one of equality of operation or application to all citizens of the state. Grayson v Board of Accountancy, 27 Mich App 26, 31-32; 183 NW2d 424 (1970). The Equal Protection Clause precludes irrational discrimination as between persons or groups of persons in the incidence of a law but does not require situations which are different in fact or opinion to be treated in law as though they were the same. Goesaert v Cleary, 335 US 464; 69 S Ct 198; 93 L Ed 163 (1948).
Accordingly, equal protection of the law does not prevent, and is not violated by, a reasonable classification by legislative enactment if it applies alike to all persons within such class and reasonable grounds exist for making the distinction between those who fall within such class and those who do not. People v Palazzolo, 62 Mich App 140, 146; 233 NW2d 216 (1975). A classification must be based on substantial distinctions and be germane to the purpose of the law. Manistee Bank & Trust Co v McGowan, 394 Mich 655, 665-672; 232 NW2d 636 (1975), Fox v Employment Security Comm, supra.
The Legislature has wide discretion as to classification, and under the Fourteenth Amendment a distinction in legislation is not arbitrary if any state of facts can reasonably be conceived that would sustain it. Therefore, the rule of equality permits many practical inequalities and what satisfies equality cannot be precisely defined. Goesaert v Cleary, supra. A classification does not violate the Equal Protection Clause unless it is so lacking in an adequate or reasonable basis as to preclude an assumption that legislative discretion was exercised. Kriger v South Oakland County Mutual Aid Pact, 49 Mich App 7, 10-11; 211 NW2d 228 (1973), rev’d on other grounds, 399 Mich 835; 250 NW2d 67 (1977).
The United States Supreme Court has tradition ally applied two tests in determining the validity of legislation in equal protection cases. If the interest is "fundamental” or the classification is "suspect”, a "strict scrutiny” test is applied requiring the state to show a compelling interest which justifies the classification. Other legislation, principally social and economic, is subjected to review under the traditional equal protection test discussed above. Under that test, the burden is on the person challenging the classification to show that it is without reasonable justification. Manistee Bank & Trust Co v McGowan, supra.
This two-tiered approach to equal protection analysis, which was developed in the 1960’s, is still applied today. However, recent cases have not embraced the rigid attitude adopted by earlier cases toward the two-level approach, in which application of scrutiny that was "strict” in theory in fact proved fatal to the legislation in question and application of the traditional rational basis test with minimal scrutiny in theory meant no scrutiny in fact. Recently, a significant shift has taken place in the operation of equal protection law. A mounting discontent with the two-tier approach has been manifested in the Court. Craig v Boren, 429 US 190; 97 S Ct 451; 50 L Ed 2d 397 (1976).
This growing discontent has resulted in recent years in the adoption of an intermediate test which is applied in certain equal protection cases. Under this intermediate test, the classification must rest upon some ground of difference which has a fair and substantial relation to the object of the legislation. Reed v Reed, 404 US 71; 92 S Ct 251; 30 L Ed 2d 225 (1971), Schigur v Secretary of State, 73 Mich App 239, 245; 251 NW2d 567 (1977). The result is that the Court is less willing to supply justifying rationales by exercising its imagination, as is the case when the rational basis test is applied, and more certain to assess the means in terms of legislative purposes that have substantial basis in actuality, not merely in conjecture.
In determining the constitutionality of § 3107(b) it is necessary to first determine the applicable equal protection test to be applied. In the present case, the classification made by the Legislature draws a distinction between those injured individuals who would suffer an actual work loss and those who would not. There is no "suspect” classification involved nor is there a "fundamental” interest. Therefore, the "strict scrutiny” test is inapplicable.
Since the no-fault legislation is new and still deemed experimental, the "fair-and-substantial-relation-to-the-object-of-the-legislation” test is not applicable, but instead the traditional equal protection analysis must be used. Richardson v Belcher, 404 US 78; 92 S Ct 254; 30 L Ed 2d 231 (1971), Shavers v Attorney General, 402 Mich 554; 267 NW2d 72 (1978), Manistee Bank & Trust Co v McGowan, supra, Schigur v Secretary of State, supra, McKendrick v Petrucci, 71 Mich App 200; 247 NW2d 349 (1976).
In applying the "rational basis” test, the inquiry has traditionally focused upon the character of the classification in question, the relative importance of the governmental benefits that they do not receive to the individuals in the class discriminated against, and the state interest asserted in support of the classification. Massachusetts Bd of Retirement v Murgia, 427 US 307; 96 S Ct 2562; 49 L Ed 2d 520 (1976). Here the state interest is to provide recovery to those persons who have sustained an actual wage loss resulting from an auto mobile accident and to allow for reduced insurance rates. There is a rational relation between the legislative objective and § 3107(b), even under the interpretation made by the trial court in the present case. Under that section, recovery is only allowed where it can be shown that there was an actual work loss.
It must be remembered that even though a legislative solution appears undesirable, unfair, unjust or inhumane, this in and of itself does not empower a court to override the Legislature and substitute its own solution. A legislative classification need not be drawn with mathematical nicety, and rough approximations will do. Statutes are cloaked with a presumption of constitutional validity and the burden of rebutting that presumption is on the person challenging the statute. Manistee Bank & Trust Co v McGowan, supra, Schigur v Secretary of State, supra. That presumption was not rebutted in the present case and § 3107(b) is, therefore, not unconstitutional.
It is further argued by plaintiff that the trial judge considered factual matters not set forth in the complaint in deciding the motion for summary judgment pursuant to GCR 1963, 117.2(1).
First, it should be noted that counsel for defendant, both in his brief and oral arguments, has vehemently denied that the trial court considered factual matters not contained within the complaint.
The rule is well settled that such a motion will be tested by the pleadings alone which must be considered as true. Todd v Biglow, 51 Mich App 346, 349; 214 NW2d 733 (1974).
Nevertheless, whether the statement in the judge’s opinion that "the facts are clear” was inadvertently made or not is immaterial. Plaintiff in paragraph 6 of her complaint merely alleges "a loss of earning capacity” and does not claim any damages for work loss.
Therefore, the trial court, having determined that the statute was clear and unambiguous and covered only loss of wages resulting from an automobile accident, was free to conclude that the complaint failed to state a claim upon which relief could be granted. Any possible reference to the facts under these circumstances would be harmless error. Bostrom v Jennings, 326 Mich 146, 158; 40 NW2d 97 (1949).
Affirmed. No costs, an interpretation of a statute being involved. | [
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D. E. Holbrook, Jr., P.J.
Defendant was convicted by a jury of breaking and entering with intent to commit larceny contrary to MCL 750.110; MSA 28.305. Thereafter sentenced to a prison term of 2-1/2 to 10 years, defendant appeals as of right.
On August 18, 1975, at approximately 3 a.m., Kucher’s Standard Service was broken into. A rock had been thrown through the front window removing sufficient glass to provide an opening sufficient to permit entry by a person. Upon investigation that afternoon, the police discovered latent fingerprints on several pieces of glass found lying in the parking lot and one from the window frame. No other areas were fingerprinted and no fingerprints were matched to any suspects.
Eleven days later defendant, pursuant to court order, was detained for the purpose of submitting fingerprints and palmprints in the investigation of an unrelated offense. The affidavit, however, which served as the basis for the order contained a misstatement of fact. While it read that defendant attempted to give the informant "the .25 caliber gun”, meaning the gun used in the offense, it should have read that defendant attempted to give the informant "a gun”.
Pursuant to the order aforesaid the defendant, whose fingerprints had not previously been on file with any police agency, was taken from his home to the police station, fingerprinted and immediately released. Comparison of these prints led to defendant’s arrest on the unrelated charge and further fingerprinting. The latest fingerprints were subsequently matched with nine of 22 latent prints discovered as a result of the Kucher break-in. Prints from defendant’s left hand were found on both sides of the pieces examined. Defendant was then arrested for the Kucher break-in.
Defendant’s pretrial motion to suppress the fingerprint evidence as the fruit of an illegal arrest was denied and trial commenced. While defendant raises three issues on appeal one is dispositive and mandates reversal.
Defendant contends that the order to submit fingerprints was issued without probable cause, and that the fingerprints taken pursuant to the order and their fruits must be suppressed as violative of the US Const, Am IV and the Michigan Const 1963, art 1, § 11. The general rule concerning searches and seizures is that the Fourth Amendment requires a prior determination by a detached and disinterested magistrate that probable cause to search exists. Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971). Fingerprint evidence and detentions for the sole purpose of obtaining fingerprints are included within the reach of the Fourth Amendment. Davis v Mississippi, 394 US 721; 89 S Ct 1394; 22 L Ed 2d 676 (1969).
The order issued was based upon an affidavit which contained the following statement:
"That Juanita Clark stated that Albert Price, Jr. attempted to give her the .25 Caliber gun on August 22, 1975 at Claude’s Bar in Saginaw, Michigan and that she did not take it.” (Emphasis supplied.)
During the course of the hearing on defendant’s pretrial motion to suppress affiant acknowledged this statement to be in error. Rather than "the .25 caliber gun” the statement should have read "a gun”. Since the statement was erroneous it must be deleted from the affidavit and our review of probable cause must be determined from review of the affidavit absent the erroneous statement upon which the issuing magistrate relied. People v Broilo, 58 Mich App 547; 228 NW2d 456 (1975), People v Staffhey, 70 Mich App 737; 246 NW2d 364 (1976).
Having reviewed the affidavit, absent the erroneous statement, we find absolutely no probable cause for the issuance of the order for the detaining, fingerprinting and palmprinting of the defendant. Analogous to Broilo, supra, the misrepresentation was unknown to the judge who issued the order, but came to light later, and the order should have been quashed and all evidence derived therefrom held inadmissible.
While appellee asks us to adopt a "reasonable cause” test to permit the detention of criminal suspects for the limited purpose of obtaining physical identification evidence in the absence of probable cause in the traditional sense we refuse to so do absent legislation or rule of the Michigan Supreme Court. People v Marshall, 69 Mich App 288; 244 NW2d 451 (1976). It is therefore unnecessary for us to decide whether such "reasonable cause” exists in the instant case with the erroneous statement deleted.
Reversed. | [
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After Remand
Per Curiam.
This case has been before this
Court on a prior occasion. In Michigan National Bank v Windsor Charter Twp, 76 Mich App 387; 256 NW2d 791 (1977), this Court remanded this case to the trial court for findings of fact under the Supreme Court’s decision in Kirk v Tyrone Twp, 398 Mich 429; 247 NW2d 848 (1976).
The original trial court was unable to participate in the remand, and so on September 29, 1977, this Court issued an order directing the successor to the trial court to render a decision under Kirk, supra. The trial court has complied with that order and we review the successor court’s opinion.
Quoting from Kropf v Sterling Heights, 391 Mich 139; 215 NW2d 179 (1974), the Supreme Court in Kirk, supra, detailed the applicable principles and tests:
"The important principles require that for an ordinance to be successfully challenged plaintiffs prove:
" '[F]irst, that there is no reasonable governmental interest being advanced by the present zoning classification itself * * * or
" '[Secondly, that an ordinance may be unreasonable because of the purely arbitrary, capricious and unfounded exclusion of other types of legitimate land use from the area in question.’ 391 Mich 139, 158.
"The four rules for applying these principles were also outlined in Kropf. They are:
"1. ' "[T]he ordinance comes to us clothed with every presumption of validity.” ’ 391 Mich 139, 162, quoting from Brae Burn, Inc v Bloomfield Hills, 350 Mich 425; 86 NW2d 166 (1957).
"2. ' "[I]t is the burden of the party attacking to prove affirmatively that the ordinance is an arbitrary and unreasonable restriction upon the owner’s use of his property * * * . It must appear that the clause attacked is an arbitrary fiat, a whimsical ipse dixit, and that there is no room for a legitimate difference of opinion concerning its reasonableness.” 391 Mich 139, 162, quoting Brae Burn, Inc.
"3. 'Michigan has adopted the view that to sustain an attack on a zoning ordinance, an aggrieved property owner must show that if the ordinance is enforced the consequent restrictions on his property preclude its use for any purposes to which it is reasonably adapted. 391 Mich 139, 162-163.
"4. ' "This Court, however, is inclined to give considerable weight to the findings of the trial judge in equity cases.” ’ 391 Mich 139, 163, quoting Christine Building Co v City of Troy, 367 Mich 508, 518; 116 NW2d 816 (1962).” 398 Mich at 439-440.
As to the first three rules applicable to a trial court, the successor court rendered conclusions of law based on the findings of fact enumerated in its opinion.
The successor court found that "[t]he presumption of validity of the ordinance was not rebutted”. We agree. The ordinance is not unconstitutional on its face and contains sufficiently definite standards. Osius v St Clair Shores, 344 Mich 693; 75 NW2d 25 (1956).
The successor trial court further elaborated:
"The terms of the ordinance are not an arbitrary and unreasonable restriction upon the plaintiff’s use of their property. It was not an arbitrary fiat on the part of defendant’s Township Board to deny the application of plaintiffs, and there is room for a legitimate difference of opinion regarding its reasonableness. Rule 2 of Kirk, supra, p. 439.
"The Bank and Grey failed to show that if the ordinance is enforced the consequent restrictions on the Bank’s property preclude its use for any purposes to which it is reasonably adapted. To the contrary, they concede it is suitable for its zoned purpose. Rule 3 of Kirk, supra, p. 439.”
Again, we agree with the conclusions of the successor trial court. See also Long v Highland Park, 329 Mich 146; 45 NW2d 10 (1950). The testimony of a senior vice-president of plaintiff bank, to the effect that it didn’t try to sell the land as agricultural merely because it felt that the land was "too valuable” for that purpose, puts to rest any contention that the ordinance was confiscatory in application. Biske v City of Troy, 381 Mich 611; 166 NW2d 453 (1969), Cohen v Canton Twp, 38 Mich App 680; 197 NW2d 101 (1972). Nor can there be any argument that the terms of the ordinance totally exclude the proposed use from the township, as a special use permit was granted for an identical purpose on an adjacent tract.
Cognizant of a reviewing court’s duty under the fourth Kropf rule, and thus giving "considerable weight to the findings of the trial judge in equity cases”, we affirm those findings.
Affirmed.
This case arose prior to the Supreme Court’s decision in Kirk v Tyrone Twp, 398 Mich 429; 247 NW2d 848 (1976), at a time when the Supreme Court’s decision in Sabo v Monroe Twp, 394 Mich 531; 232 NW2d 584 (1975), was controlling.
We would note that it is not arbitrary to allow a proposed use in one section of a township, and to deny the use in another section of the township — even if the parcels are close together. The consequences of adopting the opposing viewpoint might result in a township filled with trailer parks. | [
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On Remand
Per Curiam.
The matter is again returned to us by remand from the Michigan Supreme Court, 402 Mich 546; 266 NW2d 148 (1978). The order of the Supreme Court reversed the decision of this Court, and reinstated the judgment for the plaintiff. Plaintiff had, by jury verdict, received an award of $27,000 for lost profits.
The Supreme Court, in reinstating the judgment on the verdict, ordered that the matter be remanded to the Court of Appeals for "consideration of issues not reached in its earlier decisions”. The opinion of the Supreme Court emphasized that its earlier decision in Fera v Village Plaza, Inc, 396 Mich 639; 242 NW2d 372 (1976), held that lost profits could be recoverable where plaintiffs’ proofs were sufficient to support the jury verdict.
The Court further found that reasonable minds could disagree as to the adequacy of plaintiff’s proof as to lost profits, and that we improperly invaded the jury’s determination of fact.
Given this background, we are hard put to determine what issues raised by the parties were not resolved, either by the jury’s verdict or the opinion of the Supreme Court.
The only possible area of doubt could be that of the measure of damages to be awarded. In Allen v Michigan Bell Telephone Co, 61 Mich App 62, 68; 232 NW2d 302 (1975), lv den 395 Mich 793 (1975), we said:
"The object of the measure of damages in a breach of contract suit is to place the injured party in as good a position as he would have been in if the promised performance had been rendered.”
A review of the record shows that the trial judge’s instructions, approved by the Supreme Court in this matter, adequately resolved the question.
Accordingly, we affirm the judgment of the trial court and assess costs to the plaintiff appellee. | [
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After Remand
D. E. Holbrook, P.J.
Defendant Martha Watkins was injured in an automobile accident on July 14, 1972, while a passenger in an automobile owned by Bessie Evans, deceased, and driven by defendant Erwin Shanks. That automobile was insured under a policy issued to Bessie Evans by plaintiff. After Martha Watkins filed suit against Mr. Shanks and the estate of Bessie Evans, plaintiff sought a declaratory judgment to determine its obligation under the insurance contract. Plaintiff argued that its liability coverage did not apply to Martha Watkins because the policy excluded coverage to "any member of the family of an insured residing in the same household as the insured”. In the trial court, Martha Watkins conceded that she was a sister of Bessie Evans and resided in her household. The case was submitted to the trial court on briefs and the court found plaintiff’s exclusion void and the liability coverage of the policy applicable to Martha Watkins’s claim.
The case was appealed to this Court, and in an unpublished per curiam opinion, No. 30617, issued September 14, 1977, this Court said:
"During oral arguments before this Court, counsel for defendant Martha Watkins asserted that he had only recently learned that Martha Watkins was not related to Bessie Evans. If this assertion is correct then the household exclusion cited by State Farm would have no application. Therefore, if proven, the nonrelative status of Martha Watkins may settle the issue conclusively in her favor. State Farm, however, may wish to contest the issue or assert other policy provisions in light of this new allegation by defendant Watkins. Under these circumstances we believe it would be improvident to reach the legal issue presented in this appeal.” (Emphasis in original.) (Footnote omitted.)
The case was therefore remanded to the trial court to allow the parties to amend their pleadings and the court to determine whether Martha Watkins was related to Bessie Evans.
On remand, Martha Watkins testified by deposition that she and Bessie Evans were not related. Martha Watkins testified that they had neither a common mother nor father. The two women were born of separate parents, but when they were teenagers, after the death of Bessie Evans’s father and Martha Watkins’s mother, Martha Watkins’s father married Bessie Evans’s mother. The trial court found that "the exclusionary clause relied upon by the Plaintiff in denying liability to the Defendant Martha Watkins as [sic] inapplicable to her for the reason that she is not a 'relative’ of the named insured within the meaning of the policy provisions,” and granted summary judgment in favor of defendant Martha Watkins. Plaintiff appeals.
The purpose of "household” exclusions such as the clause under consideration was to protect insurers from liability in cases where, due to close family ties between plaintiff and the insured, the insurer may be victimized by a collusive lawsuit. Anno: Validity, Construction, and Application of Provision of Automobile Liability Policy Excluding from Coverage Injury or Death of Member of Family or Household of Insured, 46 ALR3d 1024, 1030-1032, § 4. This note indicates that a majority of courts in other jurisdictions which have been required to interpret such clauses under similar circumstances have emphasized the domestic arrangement rather than consanguinity or lack thereof in determining the legal effect of such clauses. Anno, supra, § 11, pp 1050-1054.
In spite of the strong Michigan policy of construing all insurance contracts which require judicial interpretation against the preparer and in favor of the insured, 14 Callaghan’s Michigan Civil Jurisprudence, Insurance, § 146, p 162, and cases cited therein, it would require an unusually strained construction of the term "household” in order to remove defendants Evans and Watkins from the intended meaning of the clause in question. They had resided together for 21 years, and had generally held themselves out to be "family”. In addition, due to the close relationship which existed between them, the policy behind the clause in question seems clearly to apply. Therefore, the conclusion that the trial court erred in holding these defendants not to be members of the same "household” is compelling.
Nevertheless, resolution of this matter requires consideration of defendants-appellees’ claim that the clause in question should be considered void as a matter of law, as it contravenes public policy. In support of this conclusion, appellees cite two recent Michigan cases holding the "household” exclusion to be invalid under comparable circumstances, Gurwin v Alcodray, 77 Mich App 97; 257 NW2d 665 (1977), and Allstate Insurance Co v DeFrain, 81 Mich App 503; 265 NW2d 392 (1978). Gurwin involved a declaratory judgment action brought by the plaintiff insured, as next friend of his minor children, to determine the liability of the insurer under a policy which excluded coverage of the plaintiff to "liability of any insured for bodily injury to (a) any member of the same household of the insured except the servant”. The appellate Court upheld the trial court’s, ruling that the clause was void, noting that under the financial responsibility act, MCL 257.520(b)(2); MSA 9.2220(b)(2), a liability policy must insure the named insured "against loss from the liability imposed by law”. The Court noted that under Lilje v Allstate Insurance Co, 393 Mich 259; 224 NW2d 279 (1974), and Citizens Mutual Insurance Co v Central National Insurance Co of Omaha, 65 Mich App 349; 237 NW2d 322 (1975), an exclusion which deviates from the statutorily imposed standards is not valid. The Court held that as parental immunity is no longer recognized in Michigan, any attempt to exclude from the policy coverage the liability of an insured for actions brought by the insured’s children was not in compliance with the statutory requirements governing insurance coverage. Although the Court never discussed the policy of discouraging "over-friendly lawsuits” the decision which it reached clearly implied repudiation of this policy as grounds for coverage exclusions.
DeFrain reached the same conclusion in invalidating a "household” exclusion clause relied upon by the insurer in refusing to defend its insured against suit by his then-wife. The Court held that abolition of interspousal immunity necessarily rendered the claimed exclusion invalid as in contravention of public policy as stated in the financial responsibility act, supra.
In addition to the cases cited by appellees, a separate line of cases also suggests that exclusionary clauses such as the one in question contravenes public policy. Allstate Insurance Co v Motor State Insurance Co, 33 Mich App 469; 190 NW2d 352 (1971), lv den, 386 Mich 760 (1971), Robinson v Mendell, 45 Mich App 368; 206 NW2d 537 (1973), Cadillac Mutual Insurance Co v Bell, 50 Mich App 144; 212 NW2d 816 (1973). Each of these cases relied upon MCL 257.520(b)(2); MSA 9.2220(b)(2) (set out in part above), as a declaration of legislative intent. In pertinent part, with emphasis added, the statute asserts that a policy of insurance:
"Shall insure the person named therein and any other person, as insured, using any such motor vehicle or motor vehicles with the express or implied permission of such named insured, against loss from the liability imposed by law for damages arising out of the ownership, maintenance or use of such motor vehicle.” (Emphasis supplied.)
Although appellant relies upon Weisberg v Detroit Automobile Inter-Insurance Exchange, 36 Mich App 513; 194 NW2d 193 (1971), as authority for upholding the "household” exclusion despite policy arguments to the contrary, it is clear that whether or not Weisberg is good law, it is not apposite to actions involving the protection of third parties.
Weisberg involved an exclusionary clause which provided that public liability coverage did not apply to a named insured. It was upheld, and distinguished from Allstate v Motor State on the questionable grounds that the public policy, as embodied in the financial responsibility act, supra, and the accident claims act, MCL 500.3010; MSA 24.13010, was not offended by "exclusion [which] is inherent in the concept of liability insurance. It [liability insurance] contemplates protection of the insured against liability running from the insured to another”, 36 Mich App at 517. Thus, Weisberg is not contrary to the Allstate v Motor State line of reasoning which protects third persons. The Legislature impliedly adopted the Allstate v Motor State result in 1971 when it amended the insurance code by adding MCL 500.3009; MSA 24.13009.
This section expressly authorizes the liability insurer to provide that its policy coverage will not be effective if the vehicle is operated by a specific named person. In Citizens Mutual Insurance Co v Central National Insurance Co of Omaha, 65 Mich App 349, 353-354; 237 NW2d 322 (1975), this Court, in passing upon the validity of a clause which excluded coverage of passengers, had occasion to assess the impact of the new statute on public policy as promulgated in Allstate:
"In accord with this view [the public policy view stated in Allstate] are Robinson v Mendell, 45 Mich App 368; 206 NW2d 537 (1973), Cadillac Mutual Insurance Co v Bell, 50 Mich App 144; 212 NW2d 816 (1973), Celina Mutual Insurance Co v Preferred Risk Mutual Insurance Co, 51 Mich App 99; 214 NW2d 704 (1974), overruled sub nom Lilje v Allstate Insurance Co, 393 Mich 259; 224 NW2d 279 (1974), State Automobile Mutual Insurance Co v Babcock, 54 Mich App 194; 220 NW2d 717 (1974).
"The Legislature obviously remains interested in requiring automobile insurance policies to conform to the dictates of the statute. The theory underlying the Allstate decision was that exclusionary clauses with respect to policies covering a particular motor vehicle which were not contemplated by the Legislature are contrary to public policy and therefore void. A clear intent of § 3009 was to allow an insurance company to exclude from liability coverage only named persons operating a motor vehicle. There are no statutory references to other types of exclusions. It is a familiar rule of statutory construction that the express mention of one thing implies the exclusion of other similar things. Stowers v Wolodzko, 386 Mich 119, 133; 191 NW2d 355 (1971), Marshall v Wabash Railway Co, 201 Mich 167, 172; 167 NW 19 (1918). An exclusionary clause which exempts from liability coverage all passengers of a motor vehicle is at variance with the intent of the Legislature, contrary to public policy and is therefore void and unenforceable.” (Emphasis in original.)
We find the reasoning of this Allstate line of cases still to be persuasive, and furthermore, agree with the assessment of legislative intent made by the Court in Citizens Mutual. Unlike the Gurwin and DeFrain cases, supra, there has never been any recognized "member-of-household immunity” which would be effectuated by the exclusionary clause under consideration. Therefore, no sound reasoning exists to justify continued recognition of "household” exclusions from liability coverage when such recognition would clearly violate the statutorily expressed policy of comprehensive liability coverage.
Affirmed. Costs to defendants. | [
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D. E. Holbrook, Jr., P.J.
Defendant was charged with two counts of kidnapping, MCL 750.349; MSA 28.581, and two counts of rape, MCL 750.520; MSA 28.788. It was the claim of the prosecution that the defendant forced two girls, at gunpoint, to enter his car following which he drove around for approximately 15 to 20 minutes terminating the drive in a wooded area and forcing them to engage in sexual intercourse.
On the day of trial defendant waived jury trial and moved the trial judge to disqualify himself because he had previously presided at a competency hearing regarding the same defendant and pertaining to the same offenses. Following denial of the motion the case proceeded to trial, defendant raised insanity as a defense and was found guilty on all four counts. Thereafter sentenced to a term of life imprisonment on each conviction, defendant appeals as of right.
While defendant raises three issues on appeal we find but one worthy of discussion. Defendant claims it was reversible error for the trial court to have denied his motion for disqualification on the grounds that the trial judge had presided at a competency hearing involving the defendant relating to the same offenses.
With respect to disqualification of a trial judge there appear to be two lines of cases. In People v Boyd, 49 Mich App 388; 212 NW2d 333 (1973), the Court held that disqualification is not automatically required if the trial judge has previously presided at a Walker hearing, its reasoning being that such a hearing does not relate to the guilt or innocence of the accused. Similarly in People v Grable, 57 Mich App 184; 225 NW2d 724 (1974), this Court distinguished cases involving strong indications of prejudice and ruled that prejudice would not be presumed in a case where a trial judge had heard defendant’s guilty plea even though he had been exposed to facts not on record. In that case the Court found that the trial judge had no predisposition of guilt. In People v Irwin, 47 Mich App 608; 209 NW2d 718 (1973), this Court reiterated the general rule that a trial judge, who had been exposed to a case prior to trial, would not be disqualified from presiding at trial unless actual prejudice or bias is shown on the record.
While the rule set forth in Irwin, supra, is not without exception the line of cases which have held prejudice to exist were situations where the trial court sitting without a jury referred to a preliminary examination transcript and where a trial judge sitting without a jury knew the results of a polygraph examination taken by the defendant. People v Ramsey, 385 Mich 221; 187 NW2d 887 (1971), and People v Hale, 72 Mich App 484; 250 NW2d 103 (1976). In both of these cases obvious prejudice could result because the trial court had before it evidence which directly related to the innocence or guilt of the accused. These represent the second line of cases.
In denying defendant’s pretrial motion for disqualification the trial judge reviewed his memory and his notes made during the competency hearing and stated he knew nothing about the case and had no preconceived ideas about it. We find the instant case to be analogous to Boyd and Grable, supra, where the trial court was not exposed to evidence relating to the guilt or innocence of the accused and where the court had no preconceived notion as to the guilt or innocence of the defendant. Th® evidence presented at the competency hearing related to defendant’s mental state at the time of trial and did not affect defendant’s insanity defense which related to his state of mind at the time the offense was committed. Absent exposure by the trial court to evidence relating directly to the guilt or innocence of the accused, a preconceived notion as to defendant’s innocence or guilt or a showing on the record of actual prejudice or bias we will not reverse a trial court’s denial of a motion for disqualification in a nonjury trial where the trial judge previously presided at a competency hearing. None of the foregoing exists here.
Having examined defendant’s two remaining allegations of error we find them to be without merit. People v Hardesty, 67 Mich App 376; 241 NW2d 214 (1976), People v Keeth, 63 Mich App 589; 234 NW2d 717 (1975), People v Baker, 60 Mich App 309; 230 NW2d 409 (1975), People v Chism, 390 Mich 104; 211 NW2d 193 (1973).
Affirmed.
People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965). | [
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Danhof, C.J.
This case arises from the June 1, 1976, slaying of two young girls at their home in Buena Vista Township, Saginaw County. Defendant, a teenage boy who lived across the street from the victims’ home, was charged with the murders on June 17, 1976. From the time of the murders until the time he was charged, defendant had repeated contacts with police, primarily with Detective William Browne of the Buena Vista Police Department, the chief investigator of the girls’ murder. Browne interviewed defendant at various times and locations, ultimately procuring several incriminating admissions. Tapes of these interviews were played at trial. To the jury defendant denied killing the girls. He testified that he was in their home the night of the murders, but that a third person had committed the crimes. He claimed he did not remember what had happened when he spoke to police, but did recall the actual events at trial. The jury found defendant guilty of two counts of second-degree murder, as defined by MCL 750.317; MSA 28.549. The trial judge sentenced defendant to two concurrent terms of life in prison.
On appeal as of right, defendant raises a host of alleged errors by the trial court. Our research and analysis reveals that only three of his arguments merit a nonsummary response: (1) whether any admissions used against defendant were the prod ucts of "inherently coercive” interrogations, in violation of Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694 (1965); (2) whether any admissions used against defendant at trial were involuntarily made; and (3) whether any evidence obtained by or references to an examination of defendant while under hypnosis were admissible at trial. We decide all three issues in favor of the people.
I
The Admissibility of Defendant’s Statements to Police.
As an admissions problem, the instant case is factually complex and is complicated by the defense’s imprecise presentation of the issues.
Defendant claims he made incriminating statements during at least nine separate contacts with police, some before he was warned of his constitutional rights, some after. Rather than informing the trial court precisely what incriminating statements were made during this series of interviews, and explaining how they could be used at trial to establish his guilt or could have been used before trial to obtain other incriminating statements, defendant generally sought to suppress all statements by him, during any meeting with police from June 1 to June 10. His theory is that all were obtained either involuntarily, through a scheme to harass, badger and mislead, or in violation of Miranda, either directly as part of a primary illegality or indirectly as "fruits of a poisonous tree.” After a Walker hearing, the trial court denied defendant’s motion.
It is undisputed that Officer Browne interviewed defendant twice, along with other neighbors, at the scene of the crime on June 1, and once again at the Buena Vista Police Department on June 4, before warning defendant of his constitutional rights. The nature of the questions each time was similar: Browne inquired where defendant had been the night of the murders and what he had seen, heard, or knew of the killings.
Defendant alleged a fourth similar meeting without Miranda warnings on June 5, at a police field station set up in the Buena Vista Red Roof Inn. Contrary to his testimony at the Walker hearing, defendant averred at trial that Officer Browne, in the Red Roof Inn meeting, accused defendant of discrepancies in his prior statements. Officer Browne acknowledged the field station at the Red Roof Inn, but denied the interview with defendant there on June 5.
At noon, on June 8, Officer Browne took defendant to the Buena Vista Police Station for fingerprinting, but did not detain him. That evening defendant met with Officer Browne at a second field station in the Buena Vista Holiday Inn. Prior to interviewing defendant there, Officer Browne gave the Miranda warnings. At that meeting, Officer Browne told defendant that his fingerprints had been found in the victims’ home, that defendant had been lying, and, for the first time, that defendant was in trouble. Browne taped the interview and also took hair and fingerprint samples. Although defendant was not arrested, at that point, he no doubt had become a primary suspect.
The following evening, June 9, Officer Browne drove defendant to the Bay City State Police Post for a lie detector examination. Before administering the test, the polygraph operator read defendant his constitutional rights. After the examination the operator and his supervisor questioned defendant further, obtaining defendant’s admission that he was in the house the night of the murders. The supervisor claimed that he readvised defendant of his constitutional rights, which claim defendant denies. There is also conflicting testimony whether defendant at that time called for Officer Browne and told him he killed the girls. It is certain that sometime after the polygraph examination, either at the State Police Post or during the return trip to Buena Vista, defendant described the clothes he was wearing the night of June 1 and said they were spotted with blood. The police obtained a warrant and defendant’s consent to search his parent’s home for this evidence. While Officer Browne and other investigators executed the warrant, defendant remained at the police station. When the investigators returned, they took defendant to the Holiday Inn field station, where they recorded his statements during a three hour interview, which lasted until 4 a.m., June 10. Both sides agreed that Officer Browne adequately warned defendant of his rights prior to this last interview.
A. The Miranda Issue
The present debate of whether the entitlement to Miranda warnings in Michigan rests on focus or custody, compare People v Martin, 78 Mich App 518; 260 NW2d 869 (1977), with People v Robinson, 79 Mich App 145; 261 NW2d 544 (1977), is not now before us. That issue was not briefed and its resolution is unnecessary to our decision, as we find that Miranda warnings were excused during the initial encounters between defendant and police under either test.
"Custody” does not necessarily entail police house confinement; it rests primarily on a finding that defendant was not free to go after questioning. Kamisar, "Custodial Interrogation” within the Meaning of Miranda, Crim Law & the Constitution, 335, 362 (Reed, et al., eds., 1968). The "focus” inquiry is interrelated with the inquiry of probable cause for arrest. See People v Ridley, 396 Mich 603, 608; 242 NW2d 402, 405 (1976), Kamisar, supra. The evidentiary bases for both findings may overlap.
Collectively the following facts indicate that, until the June 8 interview at the Holiday Inn, the Buena Vista police were engaged only in preliminary exploration and defendant remained free to go. Police never handcuffed or otherwise physically restrained defendant. They did not detain, threaten to detain or have probable cause to detain him at that time. Defendant was asked general investigatory questions, consistent with his being a witness as well as a suspect. Others, were questioned with him at the scene of the crime and, according to defendant, at the Red Roof Inn. The June 4 interview at police headquarters was prompted by defendant’s own phone call, he travelled there by his own means. Defendant did not believe he was under arrest until the morning of June 10.
Finding no primary illegality, it is unnecessary to determine whether any statements taken from these initial interviews were used at trial or whether defendant’s later admissions were fruits of the earlier ones.
The trial court declined to enter an order as to the alleged June 5 meeting at the Red Roof Inn, reasoning that since the prosecutor denied the interview, he could not introduce any evidence of it at trial. Although the so-called "fruits of the poisonous tree” doctrine casts a shadow upon this logic, see People v Robinson, 48 Mich App 253; 210 NW2d 372 (1973), but see Michigan v Tucker, 417 US 433; 94 S Ct 2357; 41 L Ed 2d 182 (1974), we find no reversible error in the court’s conclusion, as the meeting on the above facts would also have to be considered part of a preliminary investigation. Even defendant’s testimony at trial — that Officer Browne there accused him of lying — does not make out a case of focus or custody. At the preliminary exploration stage the police must be expected to check on witnesses’ stories and requestion those whose stories have been contradicted, in an effort to ascertain the true facts. A witness does not automatically become a suspect if there is a discrepancy in any part of his story. Nothing on the record shows that the parts of defendant’s story, which supposedly did not check out, necessarily had implicated him in the crime.
B. The Voluntariness Issue.
In accord with People v McGillen #1, 392 Mich 251; 220 NW2d 677 (1974), we have reviewed the entire transcript of defendant’s Walker hearing, and have independently assessed the voluntariness of defendant’s statements. An attempt has been made to ascertain the defendant’s state of mind when he spoke to police, accord, People v Sum mers, 15 Mich App 346; 166 NW2d 672 (1968), to determine whether his statements were products of a free and unconstrained choice, accord, United States v Brown, 557 F2d 541 (CA 6, 1977). In making that determination we have read the record with an eye towards evidence of the duration and conditions of the interviews, the attitude of police towards defendant, defendant’s physical and mental state, and any other pressures which may have undermined defendant’s free will. Accord, People v Allen, 8 Mich App 408, 412; 154 NW2d 570, 572 (1967).
Weighing against the admissibility of defendant’s statements, we find evidence that police questioned defendant a substantial number of times (at least 8 times in 10 days); that contact was prolonged on the final occasion (June 9-10) for approximately 9 hours, during which time defendant was interrogated for approximately 6 hours without sleep, until early in the morning; and that police interrogated defendant without counsel or family present, at times in a foreign city. Coercion is also suggested by the facts that defendant was only 19 years old and was upset and crying during the final interview. Evidencing that his free will may have been undermined was defendant’s testimony that the polygraph operator yelled at him and accused him of lying, and that defendant subjectively feared he would be beaten if he did not confess.
Contrary to defendant’s assertion we do not find that the use of a polygraph in the course of interrogation necessarily renders his subsequent confession involuntary. Accord, United States v McDevitt, 328 F2d 282, 284 (CA 6, 1964).
In favor of the trial court’s findings is evidence that police timely warned defendant of his consti tutional rights, never handcuffed him, and did not detain him until after the June 9 admissions; that police did not use or threaten physical force nor make any promises; that the prolonged interrogations on June 9-10 were conducted in separate sessions of about 3 hours each, with a 3 hour break in between; and that during this 9 hour contact defendant was offered and accepted refreshment. As to defendant’s personal circumstances, the record shows that he had a high school education and that while he was upset during the final hours, he was not extremely distraught.
Recognizing that it is impossible "precisely to delimit * * * the power of interrogation allowed to state law enforcement officers * * * ", Culombe v Connecticut, 367 US 568, 601; 81 S Ct 1860; 6 L Ed 2d 1037 (1961), wé affirm the trial court’s finding of voluntariness. This record does not leave us with a firm and definite conviction that a mistake has been made.
II
The Admissibility of Evidence Obtained by or References to Hypnosis.
Before presenting his case, defense counsel asked the court if he would be allowed to call a psychiatrist who had examined defendant after his arrest, to testify as to what defendant said while under hypnosis and to play a tape of that conversation. This testimony and tape would have related defendant’s story that he was in the home the night of the murders, but that a third person had committed the killings. Alternatively, defense counsel asked if he could at least refer to the hypnosis sessions in his opening remarks (or in his examination of defendant) to point out to the jury that defendant could not recall the events of the murder before hypnosis, but could recall them afterwards, and that that was after his confession. As a legal and factual foundation for the evidence, defense counsel offered an unappealed decision of the circuit court and stated that the proposed witness was a trained psychiatrist. The court denied both requests.
A proper analysis of the problem presented to the trial court by defendant’s request, requires some elaboration of the possible purposes defendant sought to achieve by it. One purpose for introducing the evidence obtained by hypnosis would be to establish the truth of the statements made by defendant while he was under the hypnotic trance. A second use, apparent from defense counsel’s alternative request, would be to bolster the credibility of defendant’s story at trial by arguing that the hypnosis had a mind-jogging effect, which would help explain defendant’s earlier inconsistent admissions to police.
As a matter of first impression in this state, we hold that evidence of a subject’s responses while under hypnosis is inadmissible for either of these purposes. Courts in other jurisdictions have universally disallowed such evidence under the first theory, reasoning that it is unreliable. See Anno: Physiological or Psychological Truth and Deception Tests, 23 ALR2d 1306, § 4, p 1310, 29 Am Jur 2d, Evidence, § 831, p 924. Defendant does not argue reliability in this case beyond his assertion that the psychiatrist who administered the test was qualified. This is an inadequate foundation for scientific evidence under People v Tobey, 401 Mich 141; 257 NW2d 537 (1977).
Some courts have admitted evidence obtained by hypnosis for other limited purposes. Thus, it has been held that an expert witness, in explaining his opinion of a defendant’s state of mind or sanity at the time of a criminal offense, may relate the administration and results of hypnotic tests that were used as tools in the diagnosis. E.g. People v Modesto, 59 Cal 2d 722; 31 Cal Rptr 225; 382 P2d 33 (1963); See Anno: Admissibility of Physiological or Psychological Truth and Deception Test or its Results to Support Physician’s Testimony, 41 ALR3d 1369. However, even among courts that allow such evidence for that purpose, there is a split as to whether the precise results, including testimony and tapes relating the subject’s actual responses, may be introduced. See 41 ALR3d, supra at 1372. Assuming for the moment that some evidence relating to defendant’s test under hypnosis would be admissible in this case for the limited purposes of enhancing his credibility, we agree with those courts that would exclude his actual responses. It was well within the trial court’s discretion to determine that the dubious value those results might have in clarifying and supporting defendant’s theory of memory restoration would be outweighed by the chance of misinterpretation and misuse by the jury. Cf. State v White, 60 Wash 2d 551; 374 P2d 942 (1962).
We also hold that under the circumstances of this case it was proper to exclude any references to hypnosis. In opposition to this view, defendant directs us to Harding v State, 5 Md App 230; 246 A2d 302 (1968), which also involved a witness who testified from her present memory, which had been restored by hypnosis. In Harding, however, the question was whether the witness should have been allowed to testify at all, and whether her testimony was sufficient to support defendant’s conviction for her rape. Warning that such testimony was suspect, since a subject under hypnosis was extremely susceptible to suggestion and yet capable of fantasizing, the court found no abuse in allowing the witness to testify, so long as the jury was cautioned about the inherent unreliability of her testimony. Accord, Wyller v Fairchild Hiller Corp, 503 F2d 506 (CA 9, 1974). Defendant notes that the Harding court emphasized that the witness’s testimony had been corroborated by the physical evidence. That emphasis, however, was in support of the court’s finding that the evidence was sufficient to support the conviction, despite the inherent untrustworthiness of the witness’s testimony.
The issue here is whether a criminal defendant may inform the jury that his memory was restored by hypnosis. Harding suggests that any error in restricting defendant in this respect would be harmless, since any reference to hypnotic memory restoration would tend to impeach, rather than rehabilitate the credibility of a witness’s present memory. Still, the facts of this case are sufficiently distinguishable so as to preclude a decision on the basis of nonreversible error. When both sides rested the jury was left essentially with a choice between defendant’s earlier admissions as related by police and his story at trial. The physical evidence tended to corroborate both versions. On these facts the reference to hypnosis may have had the abnormal effect of enhancing rather than diminishing the witness’s credibility.
Nevertheless, we find that references to defendant’s examination while under hypnosis were properly excluded because defendant has also failed to establish the reliability of hypnosis as a memory-jogging device. As we have recited, the only fac tual foundation offered to the trial court was defendant’s assertion that the witness was a qualified psychiatrist. In his brief defendant also quotes the Encyclopedia Britannica which merely defines hypermnesia and the theory of hypnotic memory restoration. That does not demonstrate the general scientific acceptance required by People v Tobey, supra. Absent an impartial showing that hypnosis has been successful in restoring the * memory of persons other than defendant, either by testimony of other subjects or experts, the references in this case were properly rejected as being of tenuous probative value. Cf. People v Busch, 56 Cal 2d 868; 16 Cal Rptr 898; 366 P2d 314 (1961).
Affirmed.
There was a conflict between defense and prosecution witnesses whether defendant actually admitted killing the girls. He did admit being in the house the night of the murder. He also described the clothes he wore the night of the murder, which were later discovered in his home spotted with blood, and drew pictures of various implements which were used in the commission of the crime.
People v Walker (On Rehearing), 374 Mich 331; 132 NW2d 87 (1965).
The field station had been employed to avoid station house confusion which had been generated by the murder investigation.
The Federal standard is now clearly "custody”. Beckwith v United States, 425 US 341; 96 S Ct 1612; 48 L Ed 2d 1 (1976).
Professor Kamisar suggests three standards by which to make that finding: (1) the subjective belief of the defendant, (2) the subjective intent of the police, and (3) the objective belief of a reasonable man.
Thus, for example, probable cause for arrest may evidence that the police had focused on one suspect and also that they intended to detain him. | [
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Per Curiam.
Plaintiffs appeal as of right from a September 29, 1976, judgment of the Court of Claims granting defendant’s motion for summary judgment brought under GCR 1963, 117.2(1).
This case arose out of an automobile accident on November 3, 1969, in Genesee County. As a result of this accident a wrongful death action was filed in circuit court on November 3, 1971, in behalf of Michael Mitchell. Plaintiffs and defendant herein were named as defendants in that action. At the same time, a similar complaint was filed against the State Highway Commission in the Court of Claims. On April 27, 1972, the circuit court judge granted the Michigan State Highway Commis sion’s motion for accelerated judgment in that action, on the ground that MCL 600.6419; MSA 27A.6419 gave the Court of Claims exclusive jurisdiction over claims against state agencies.
Subsequently, the Court of Claims action against the State Highway Commission was voluntarily dismissed. On October 16, 1975, plaintiffs herein settled the circuit court action by the payment of $75,000.
On April 7, 1976, plaintiffs sought contribution from defendant for $37,500 as a result of the settlement in the circuit court action. However, defendant’s motion for summary judgment was granted, on the ground that the action was barred under the doctrine of governmental immunity.
The Court of Claims was established by the Legislature under the authority of Const 1963, art 9, § 22 and art 6, § 26. Its jurisdiction is exclusive and extends
"over claims and demands against the state or any of its departments, commissions, boards, institutions, arms or agencies.” MCL 600.6419(1); MSA 27A.6419G).
However, the power of the Court of Claims is limited in part by the doctrine of governmental immunity. This doctrine was codified by MCL 691.1407; MSA 3.996(107) which states in part:
"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.”
In Van Antwerp v State, 334 Mich 593, 600-601; 55 NW2d 108 (1952), the Supreme Court held that the passage of a predecessor of the present Court of Claims Act did not waive the right of the state to rely upon governmental immunity. A similar result is mandated here by the second sentence of MCL 691.1407; MSA 3.996(107) which states:
"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
See also Doan v Kellogg Community College, 80 Mich App 316, 320-321; 263 NW2d 357 (1977), which held that the Court of Claims Act should be interpreted in light of the subsequently-enacted governmental immunity act. Thus, since the maintenance of roadways is clearly a governmental function, Thomas v Dep’t of State Highway, 398 Mich 1, 11; 247 NW2d 530 (1976), plaintiffs’ right to bring this action is dependent upon the applicability of some exception to the governmental immunity provided generally by MCL 691.1407; MSA 3.996(107).
Plaintiffs attempt to rely upon MCL 691.1402; MSA 3.996(102) in support of their right to bring suit against defendant. That statute provides in part:
"Any person sustaining bodily injury or damage to his property by reason of failure of any governmental agency to keep any highway under its jurisdiction in reasonable repair, and in condition reasonably safe and fit for travel, may recover the damages suffered by him from such governmental agency.”
Although this section would have permitted the action in behalf of Michael Mitchell to be pursued against the state, it does not authorize the sort of action attempted here. This is because the statute limits relief to that class of persons who Suffer bodily injury or property damage. Plaintiffs, of course, have suffered no such loss. Statutory exceptions to governmental immunity are to be strictly construed. Stremler v Dep’t of State Highways, 58 Mich App 620, 632-633; 228 NW2d 492 (1975). Subsequent language in MCL 691.1402; MSA 3.996(102), limiting actions to "injury or loss suffered on or after July 1, 1965,” should not be read to expand the class of person who could bring a suit against the state. Rather, this language merely refers to the bodily injury and property damage mentioned previously therein.
Plaintiffs’ other bases in support of bringing this action are similarly without merit. It is true that the Michigan Supreme Court has overruled a common-law rule barring joint tortfeasors from the equitable right of contribution, Moyses v Spartan Asphalt Paving Co, 383 Mich 314, 329; 174 NW2d 797 (1970). However, plaintiffs cannot avail themselves of this right, as Moyses did not deal with a situation where the action was otherwise barred by governmental immunity. Nor should Moyses be construed as setting forth an exception to the rule of governmental immunity. This is because MCL 691.1407; MSA 3.996(107) eliminates tort liability of governmental agencies "[ejxcept as in this act otherwise provided.” Thus, except for the court-made nuisance exception, Rosario v City of Lansing, 403 Mich 124; 268 NW2d 230 (1978), one cannot look beyond the scope of the governmental immunity act for exceptions thereto.
Nor can plaintiffs rely upon MCL 600.2925; MSA 27A.2925, as applied in Morgan v McDermott, 382 Mich 333; 169 NW2d 897 (1969), as a basis for this action. That statute, which provides for a statutory right of contribution, only applies when a money judgment has been recovered jointly against two or more defendants. Such is not the case here. Nor can plaintiffs rely upon MCL 600.2925a; MSA 27A.2925a which amended this section, since the amendment applies only to torts committed on or after January 1, 1975. See 1974 PA 318, § 3.
Plaintiffs lastly contend that the statutory scheme which permits the Genesee County Road Commission to be sued for contribution in circuit court, while shielding the State Highway Department from such an action, violates their rights to equal protection of the laws. This Court has consistently rejected claims that governmental immunity violates the equal protection clause. See for example Snow v Freeman, 55 Mich App 84, 86; 222 NW2d 43 (1974), and Anderson v Detroit, 54 Mich App 496, 498-499; 221 NW2d 168 (1974). Reich v State Highway Dep’t, 386 Mich 617; 194 NW2d 700 (1972), cited by plaintiffs, is inapplicable, as that case dealt with a notice provision not involved here.
Affirmed. No costs, a public question being involved.
D. R. Fkeeman, J., not participating. | [
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Bashara, J.
Defendant was tried and convicted in a jury trial in Detroit Recorder’s Court for one count of delivery of heroin, MCL 335.341(l)(a); MSA 18.1070(41)(l)(a), and one count of conspiracy to deliver heroin, MCL 750.157a; MSA 28.354(1). This appeal by right challenges the trial court’s instructions on identification and alibi, and the validity of the conspiracy conviction.
Both counts arose out of a single incident on March 24, 1976. An undercover narcotics officer went to an address on American Street in the City of Detroit for the purpose of purchasing narcotics. Prior purchases had been made at this address from an individual known as "Dog”. Dog did not have anything to sell on this occasion.
Dog and two other unidentified males escorted the undercover officer to a house on Dalrymple, also in the City of Detroit, to make a purchase. The group was admitted at this address and the officer was introduced to an individual called "Red”. No conversation occurred between Red and the officer.
Before any sale could be made, Red required the officer to sample the product. Under Dog’s guidance, the officer simulated snorting the drug. Convinced the officer was "cool”, Dog took money from the officer and went into another room with Red. When they returned, the officer saw Red pass a shiny object to Dog. This object, a tinfoil packet, was given to the officer, with $5 change, when they returned to the American address. The packet was shown to contain heroin.
A search warrant and several arrest warrants based on this incident were executed on April 8, 1976. Dog was arrested at the American address and identified as Donald Byars. When the search warrant was executed at the Dalrymple address, the undercover officer identified the present defendant as Red. Both were charged with delivery of heroin and conspiracy to deliver heroin based on the March 24 incident described above in a single complaint and information. Byars pled guilty to delivery before trial and was placed on three years probation. The conspiracy count, as to him, was dismissed. No evidence that defendant conspired with any person other than Byars was presented at trial.
The defendant called several of his family members as alibi witnesses. Each testified that defendant was working at the family store on March 24 until around 9:30 p.m. The narcotics sale was shown to have occurred sometime after 8 p.m. The defense also called the former codefendant Byars to testify that defendant was not the "Red” involved in this case.
Defendant testified in his own behalf and confirmed the alibi given by his family. He denied being at the Dalrymple address on March 24. He admitted being arrested there on April 8, but claimed he went there to see a friend named "Reggie” or "Reg”. The defense attempted to show that the officer had misidentified defendant and that "Reg” was the individual involved in the sale. Reggie did not testify at trial.
In instructing the jury, the trial court gave CJI 7:2:01, the standard instruction on alibi, and tied to it an instruction on identification based on the first paragraph of CJI 7:7:01. Defendant now claims it was error to tie the alibi and misidentification "defenses” together and to refuse to give the entire standard instruction on identification.
It was not error for the trial court to link the alibi instruction to the instruction on identification. Michigan has long recognized that alibi testimony may serve two purposes; if believed, it forms a "perfect defense” because the defendant could not have been where the prosecution claimed he was and, alternatively, it may serve to raise a reasonable doubt in the identification even if defendant’s presence at another place is not adequately established. People v Burden, 395 Mich 462; 236 NW2d 505 (1975), People v Erb, 48 Mich App 622; 211 NW2d 51 (1973). Defendant employed both theories at trial and the instructions as given were consistent with the defense theory.
Nor was it error for the trial court to limit its instruction on identification, as noted above, over defendant’s objection that the entire instruction should have been given. The trial court relied on the note to CJI 7:7:01 which provides:
"The identification instruction should be given only when the identifying witness was not in a position which would permit him to observe clearly the person committing the crime, when the witness is not positive as to identity, when his positive statements as to identity are weakened by qualification, by failure to identify the defendant on one or more other occasions or by a prior inconsistent identification or when his identification testimony otherwise appears to be doubtful. No instruction on identification testimony should be given when the identifying witness had a good opportunity for positive identification, he is positive in his identification and his identification is not weakened by prior inconsistent identification or by prior failure to identify, but remains, even after cross-examination, positive and unqualified. To give an instruction on identification under these circumstances would serve only to confuse the jury.” (Emphasis in original.)
At the present time, the CJI are not mandatory, although their use is encouraged. The instruction under consideration requires the trial court to make a preliminary evaluation of the strength of the identification testimony. The trial court did so here and decided the instruction was necessary only as a companion to the alibi instruction. We do not disagree with the trial court’s evaluation of the facts or the manner in which the instruction was limited. See, United States v Telfaire, 152 US App DC 146; 469 F2d 552 (1972).
Defendant’s final claim is that where the conspiracy charge against a sole co-conspirator is dismissed, defendant’s conviction for conspiracy must be set aside. We initially note that this issue does not appear to be properly preserved for appeal. Nonetheless, the mandates of People v Le Blanc, 399 Mich 31, 49; 248 NW2d 199 (1976), seem to allow this Court to address the question. Clearly, there can be no "one man conspiracy”. If one defendant is acquitted by a fact finder of the crime of conspiracy, the charge cannot be sustained against the other alleged co-conspirator, People v Frye, 248 Mich 678; 227 NW 748 (1929).
However, where the codefendant pleads guilty to delivery of heroin in exchange for a dismissal of the conspiracy charge, it can hardly be said that there has been any adjudication of either party’s participation in the conspiracy.
Judge Burns cites Feder v United States, 257 F 694; 5 ALR 370 (CA 2, 1919), and Miller v United States, 277 F 721 (CA 4, 1921), for the proposition that once a charge against a codefendant is dismissed and he is no longer subject to conspiratorial liability, the conspiracy count as to the principal defendant can no longer stand. These cases can be distinguished as the co-conspirators were tried and acquitted.
Rather, we would not only rely on Feder and Miller, but specifically on United States v Coppola, 526 F2d 764, 776 (CA 10, 1975), where the Court observed:
"Nor do we see any merit to the contention that the dismissal of the conspiracy charges as to Baca and Molina automatically bars the conviction of appellant. This dismissal is not equivalent to a judgment of acquittal. It is merely a compromise and not a finding that the evidence was insufficient to convict Molina and Baca of conspiracy. We find no substantial merit to any of this. Hence we see no inconsistency. (Emphasis supplied.)”
See also Romontio v United States, 400 F2d 618 (CA 10, 1968), United States v Fleming, 504 F2d 1045 (CA 7, 1974), and People v Berry, 84 Mich App 604; 269 NW2d 694 (1978).
Affirmed.
N.J. Kaufman, J., concurred.
"In conjunction with the alibi defense in this case, one of the questions is the identification of the defendant, Mr. Turner, as the person who committed the crimes. Again, identification is an element, and just as all other elements, the Prosecution has the burden of proving beyond a reasonable doubt not only that the crime was committed, but that the defendant, Mr. Turner, was the person who committed it.” | [
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Per Curiam.
On August 2, 1977, defendant was convicted of possession of heroin with intent to deliver, MCL 335.341(l)(a); MSA 18.1070 (41)(l)(a). Sentenced to 4-1/2 to 20 years imprisonment, he appeals by right under GCR 1963 806.1.
On January 24, 1977, defendant was arrested at the Capital City Airport pursuant to two outstanding felony warrants for offenses totally unrelated to the present offense. Defendant had gone to the airport to renew a rental contract with Avis Rent-A-Car. While inside the terminal his car was parked in a loading zone. After renewing the contract, defendant returned to his car where he was apprehended while seated in the parked rental car. Defendant was then taken to the public safety office inside the terminal and was arrested there. At this time an Avis employee brought defendant’s rental contract to the office, refunded to defendant his money and secured defendant’s signature on the cancellation form. The police then went outside the terminal, searched the trunk of the car and removed defendant’s briefcase. The briefcase was brought into the office and placed on a desk. A search of the briefcase was conducted, disclosing 254 bindles of heroin. A motion to suppress was filed by defendant’s trial counsel prior to trial. Upon defendant’s waiver of a jury trial the hearing on the motion to suppress and the trial were combined. At the close of the proofs and legal arguments on the motion to suppress, the trial court found no constitutional violation and admitted the heroin into evidence.
During argument on the motion to suppress, defense counsel did not contest the validity of the removal of the briefcase from the car trunk, but instead claimed that the opening and examination of the briefcase after it was brought to the public service office where defendant was under arrest was illegal. The people claim that defendant has thereby waived the issue which cannot now be raised for the first time. On the facts in this case, we disagree. Where a defendant raises a constitutional question for the first time on appeal, the Court must determine if the allegedly erroneously admitted evidence was decisive to the outcome of the case. People v Summers, 70 Mich App 584; 246 NW2d 152 (1976), People v Blassingame, 59 Mich App 327; 229 NW2d 438 (1975). Here, the challenged evidence was totally decisive since defendant’s conviction was based exclusively on the bindles of heroin found in the briefcase. Under these circumstances we allow defendant to raise the issue even though our ruling admittedly makes for a less complete record than is desired.
On appeal defendant argues that since the search was warrantless it was illegal per se unless shown to be within one of the well-recognized exceptions to the warrant requirement rule. People v Reed, 393 Mich 342, 362; 244 NW2d 867 (1975). In his comprehensive brief defendant contends that none of the exceptions, including the automobile exception, are applicable. We view the issue differently.
Within a few minutes after defendant was placed under arrest in the airport terminal building, Jane Rundell, the Avis employee who earlier had accepted an additional deposit which extended defendant’s rental contract, returned to refund some $30 in cash to defendant and to obtain his signature terminating the rental agreement. She did so after phoning her superior to obtain instructions on what to do with the car and being instructed to close out the contract. Defendant did not object and signed the printed contract form showing the rental agreement was terminated.
In view of the unrebutted testimony that the rental agreement was terminated, that the car was the property of Avis rather than defendant, and that the car was illegally parked in a loading zone, we conclude that defendant no longer had standing to contest the removal therefrom of his personal possessions. He had surrendered any reasonable expectation of privacy. As was stated in People v Hopko, 79 Mich App 611; 262 NW2d 877 (1977), lv den, 402 Mich 950o (1978), Fourth Amendment protection from warrantless search or seizure does not extend to situations where the reasonable expectation of privacy no longer exists. Defendant cites two New Mexico decisions purportedly holding that a constitutionally protected expectation of privacy extends to a rented car. State v Brubaker, 85 NM 773; 517 P2d 908 (Ct App, 1973), State v Lewis, 80 NM 274; 454 P2d 360 (Ct App, 1969). The cases are clearly distinguishable. In neither had the rental agreement been terminated. In each case the rental agent acknowledged a continuing right of the lessee to the rented vehicle. But where, as here, the rental agent no longer recognizes any right of the lessee to the car, a subsequent New Mexico case, State v Clark, 89 NM 695, 696; 556 P2d 851, 852 (Ct App, 1976), suggests that the defendant would not have standing to object to the search of the vehicle.
"The state first contends that the defendant did not have standing to object to the search and seizure. We disagree. Mr. Johnson stated that he was holding the vehicle until paid what was owing and if defendant did not pay he was going to keep the contents of the van. The facts show that Mr. Johnson was waiting for the money owing at the time of the inventory search. Mr. Johnson was holding the vehicle for the defendant subject to payment. This recognition of defendant’s right to the vehicle by the U-Haul representative, Mr. Johnson, was sufficient to give defendant standing to object to the inventory search and seizure. State v Lewis, 80 NM 274; 454 P2d 360 (Ct App, 1969).” (Emphasis supplied.)
Having determined that removal of the briefcase was permissible the remaining question is whether the warrantless opening of the case was justified. The trial court upheld the search of the defendant’s briefcase under the inventory exception to the warrant requirement. Michigan recognizes inventory searches, People v Dixon, 392 Mich 691; 222 NW2d 749 (1974), People v Robinson, 388 Mich 630; 202 NW2d 288 (1972), but with the possible exception of People v Obadele, 58 Mich App 139; 227 NW2d 258 (1975), no Michigan case discusses the scope of the inventory search. Must the inventory be limited to a listing of the car contents, or may it include a listing of the contents of the contents? That question has been answered in South Dakota v Opperman, 428 US 364; 96 S Ct 3092; 49 L Ed 2d 1000 (1976), which clearly allows the opening of closed containers taken into custody by the police under standard police procedures. The justifications for such search are: (1) the protection of property while held in police custody; (2) protection of the police against claims over lost or stolen property; and (3) protection of the police from potential danger. Opperman has been cited with approval by this Court in People v Boutell, 80 Mich App 216; 263 NW2d 36 (1977).
Defendant argues that the Opperman holding has recently been reduced in scope by United States v Chadwick, 433 US 1; 97 S Ct 2476; 53 L Ed 2d 538 (1977). In that case a footlocker, suspected by the police of containing narcotics, was lifted out of an open car trunk and the defendants were placed under arrest. Defendants and the footlocker were taken to the Federal Building where the footlocker was opened. The Supreme Court held that the warrantless search of the locked footlocker was an unreasonable invasion of defendants’ expectation of privacy in the footlocker. However, Chadwick was not an inventory case since the arrests there were based on the contents of the footlocker as disclosed by the search. Here, defendant was not arrested for the heroin found in his briefcase but was arrested on outstanding warrants on charges of larceny from a building, and was about to be taken to jail on said charges. Under the circumstances, the police were making a standard type inventory of the items defendant had with him prior to being taken to jail. For purposes of this case Chadwick is inapplicable.
Affirmed.
Probably because the court understood counsel was not contesting the opening of the car trunk the court made no findings of fact on that issue even though the testimony was disputed as to whether the Avis employee asked the officers to remove any personal possessions of defendant from the car.
The automobile exception was first established in Carroll v United States, 267 US 132; 45 S Ct 280; 69 L Ed 543 (1925), and more recently restated and expanded upon in Coolidge v New Hampshire, 403 US 443; 91 S Ct 2022; 29 L Ed 2d 564 (1971).
"Q. Now after you gave him the refund and acquired his signature what did you do then?
"A. I believe I contacted my boss a second time and told her that the contract had been closed out and she asked me to find out what would happen with the automobile and I was told that the police would need to keep the car but that [the police] would return it to us as soon as possible.
"Q. Did you and Mr. Merchant have any conversation when you gave him these dollars and asked him to sign this thing?
"A. I think he asked me why it was such a small refund but I told him that it was because of the mileage discrepancy and then he Said, 'Oh, okay,’ and he signed the contract.”
At trial, Officer Webster testified he opened the briefcase for two reasons: (1) at defendant’s request so that defendant might use his glasses which were contained in the case, (2) to make an inventory of the briefcase contents before taking defendant to jail. The trial court made a finding of fact that defendant did not ask for his glasses. | [
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Per Curiam.
Defendant was found guilty by a jury of first-degree criminal sexual conduct, MCL 750.520b(l)(d); MSA 28.788(2)(l)(d), and armed robbery, MCL 750.529; MSA 28.797. He appeals of right.
One issue raised by defendant mandates reversal.
Defense counsel moved at trial to prevent the prosecutor from using a three-month-old guilty plea conviction for first-degree criminal sexual conduct to impeach defendant. The trial court correctly recognized its discretion in this area, see People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). See, also, MRE 609(a). However, the discretion was improperly exercised, i.e., the trial court indicated that the conviction could be used to impeach because it was identical to the crime charged.
Some guidelines for exercising discretion were detailed in People v Jackson, supra, at 333:
"Among the factors to be considered are the nature of the prior offense, whether it is for substantially the same conduct for which the accused is on trial, and the effect on the decisional process if the accused does not testify from fear of impeachment by prior convictions.” (Footnote omitted.)
See Gordon v United States, 127 US App DC 343; 383 F2d 936 (1967). This paraphrasing has apparently caused some confusion about the admissibility of similar crimes for impeachment purposes. See People v Cash, 80 Mich App 623, 627, n 2; 264 NW2d 78 (1978). The proper rule is that, while similar crimes evidence is admissible for impeachment, such evidence should be admitted with "extreme caution”. People v Crawford, 83 Mich App 35; 268 NW2d 275 (1978), People v Cash, supra.
The trial judge’s error in the case at bar was identical to the error in Cash: discretion was exercised, but the trial court erroneously thought that similar crimes were generally admissible while dissimilar crimes were not. An erroneous exercise of discretion is as prejudicial to a defendant as not exercising discretion. We hold that the trial court erred in ruling on the admissibility of defendant’s prior conviction.
We further hold that this error cannot be deemed harmless.
First, it is immaterial that defendant chose not to testify after the court ruled that the conviction was admissible to impeach, because the ruling itself may have influenced defendant’s decision not tb testify. People v McCartney, 60 Mich App 620; 231 NW2d 472 (1975).
Second, while a similar error was held harmless in People v Cash, supra, in that case the defendant denied being convicted of the similar crime and no collateral proof was introduced. Thus, the Court noted, there was no possibility of the jury concluding that "if he did it before, he probably did so this time”. See People v Cash, supra, at 628. In the case at bar, the court’s ruling raised that precise problem. Thus, the error was not harmless.
We also note that the prosecutor must share responsibility for this error. The prosecutor, as an officer of the court, has the duty to see that apparent reversible error is not committed, even if the error is favorable to his case. As stated in ABA Standards Relating to the Prosecution Function and the Defense Function, 1.1(c) (Approved Draft, 1971): "The duty of the prosecutor is to seek justice, not merely to convict”. As an officer of the court and a law enforcement official, the prosecutor must act not only as the sword of justice but also as the shield of justice. If the prosecutor recognizes that error is being committed, it is his duty to seek its immediate correction. A failure to exercise this duty results in costly and time-consuming retrials which could have been avoided.
Reversed and remanded for a new trial.
The court stated:
"The Court: The motion is denied. He is charged at this time with criminal sexual conduct, and any charge that is similar, the prosecution may go into it for the question of credibility. The jury is entitled to hear this because they have to determine credibility. Motion denied.
"The Court: But anyway, the jury is entitled to know this. The law is very clear. If he takes the stand, the prosecution can go into his past record — not regarding any dissimilar crimes, which I never allow —but of similar crimes of a similar nature, the jury can hear them. The motion is denied. Next?”
These guidelines were derived from Judge (now Chief Justice) Burger’s opinion in Gordon v United States, infra, at 347; 383 F2d at 940, where he stated:
"A special and even more difficult problem arises when the prior conviction is for the same or substantially the same conduct for which the accused is on trial. Where multiple convictions of various kinds can be shown, strong reasons arise for excluding those which are for the same crime because of the inevitable pressure on lay jurors to believe that 'if he did it before he probably did so this time’. As a general guide, those convictions which are for the same crime should be admitted sparingly; one solution might well be that discretion be exercised to limit the impeachment by way of a similar crime to a single conviction and then only when the circumstances indicate strong reasons for disclosure, and where the conviction directly relates to veracity.” (Footnote omitted.)
See Luck v United States, 121 US App DC 151; 348 F2d 763 (1965).
Upon retrial, if this issue arises again, the trial court should exercise its discretion in accordance with People v Jackson, supra. See People v Crawford, supra. | [
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Per Curiam.
This is an appeal by right of the trial court’s order limiting the operating hours of the plaintiffs’ business establishment. In 1949, Stanley Klenk erected the building in question located in Carrollton Township, Saginaw County, Michigan. Mr. Klenk operated the building as a grocery store until 1959, and kept the hours of 8 a.m. to 10 p.m.
In 1959, Carrollton Township passed a zoning ordinance which placed the property in question in a residential zone. The property was allowed to operate as a nonconforming use and continues to be used as a grocery store until the present time.
In 1959, Mr. Klenk sold the grocery business (not the building itself); and the business was later resold. The various grocery store owners generally operated the business from 8 a.m. to 10 p.m.
In 1971, the plaintiff, Garb-Ko, Inc., agreed to lease the store for a 7-11 operation if the building was refurbished. Mr. Klenk secured a building permit from the township to refurbish the building and in 1971 leased the building to the plaintiff, Garb-Ko, for the operation of their 7-11 store. No conditions or restrictions as far as hours of operation were imposed by the township at the time of the issuance of the building permit for the refurbishing.
When the store first opened in 1971, its hours of operation were from 7 a.m. to 11 p.m. Shortly after its opening, the store hours were changed to 6 a.m. to 12 midnight and after a short time were again changed to 6 a.m. to 2 a.m.
On November 8, 1974, the township board advised the plaintiffs by mail that they must cut back their hours of operation to 7 a.m. to 11 p.m. On July 30, 1975, the plaintiffs commenced this action against the township, seeking to temporarily and permanently restrain the township from interfering with plaintiffs’ hours of operation. The township filed a counterclaim against the plaintiffs, asking the court to temporarily and permanently restrain the plaintiffs from extending the hours of operation of the 7-11 store beyond 7 a.m. to 11 p.m.
Testimony was adduced at trial as to the trafile noise and disturbances at the 7-11 store after 11 p.m., and as to the plaintiffs’ desire to operate the store on a 24-hour-a-day basis.
The trial court denied the plaintiffs’ prayer for permanent injunction and ordered that the plaintiffs may not operate their 7-11 store beyond the hours of 7 a.m. to 11 p.m.
The plaintiffs appeal by right. The precise question on appeal is whether the extension of hours of a grocery store operating as a nonconforming use constitutes an expansion of the nonconforming use which can be lawfully restricted by the defendant township.
Although this precise question has not heretofore been addressed, Michigan courts have, on various occasions, set forth the policy and purpose of the law relating to nonconforming uses.
In Dearden v Detroit, 70 Mich App 163, 169; 245 NW2d 700 (1976), this Court stated:
" '[I]t is the law of Michigan that the continuation of a nonconforming use must be substantially of the same size and same essential nature as the use existing at the time of passage of a valid zoning ordinance.’ White Lake Township v Lustig, 10 Mich App 665, 674; 160 NW2d 353 (1968).”
In Norton Shores v Carr, 81 Mich App 715, 720; 265 NW2d 802 (1978), the Court stated:
"The policy of the law is against the extension or enlargement of nonconforming uses, and zoning regulations should be strictly construed with respect to expansion.”
The trial court’s finding that the extension of operating hours constituted an expansion of the nopconforming use is consistent with the aforementioned policy. While this Court reviews equity cases de novo, the findings of the trial court will not be disturbed unless this Court would have arrived at a different result had it been in the position of the trial court. Biske v City of Troy, 381 Mich 611; 166 NW2d 453 (1969). In view of the policy against the expansion of a nonconforming use, and the fact that the Michigan courts, in reviewing the question of expansion, have empha sized the scope and nature of the nonconforming use as existing at the time of the passage of a valid ordinance, it cannot be said that this Court would have reached a conclusion different from that of the trial court.
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