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Beasley, J.
After long service as an airplane pilot for General Motors Corporation, plaintiff suffered a severe heart attack on January 17, 1971. Although he recovered, his pilot’s license was permanently suspended as a result of the heart attack. Plaintiff claimed benefits under an extended disability benefit section of a group insurance policy issued by defendant Metropolitan Life Insurance Company for the reason that he is totally disabled to perform his job as an airplane pilot. Defendant denied extended disability benefits on the basis that, although plaintiff is no longer able to get a pilot’s license, there are many jobs that he is physically qualified to do. After plaintiff filed suit, both parties moved for summary judgment. The trial court granted plaintiff a partial summary judgment for benefits payable as of that time based on a finding that plaintiff was totally disabled within the meaning of the language of the insurance policy. Defendant appeals as of right.
The sole issue for our consideration is whether the trial court erred in deciding that plaintiff was entitled to partial summary judgment on the basis that he was totally disabled under the terms of the insurance policy even though he was, and is, physically qualified to do some jobs.
Essentially, the question here involves interpretation of the disability provisions of the group life insurance policy issued by defendant. The key provision in the policy reads:
"If, while insured * * * the Employe is both under age 65 and totally disabled so as to be unable to engage in any gainful occupation or employment for which he is reasonably qualiñed by education, training or experience, the amount of Extended Disability Benefit Insurance (Monthly Benefits) then in force on account of the Employe shall be paid to the Employe each month during the period the Employe is so disabled, as set forth herein.” (Emphasis added.)
Generally, two aspects or elements are involved in defining "total disability”. First, there is the element of quality, which involves the question of whether the insured must be unable to work in his particular occupation, or whether he must be unable to work in other occupations as well. Then, there is the element of quantity, which is concerned with the amount of work an insured can be capable of performing and still be considered "totally disabled”, that is, whether the insured need be absolutely helpless, or whether he may be able to perform minor acts only, or whether he may be able to perform substantial acts.
It should be noted that since plaintiff in the instant case is one hundred percent disabled from performing within his former occupation of airplane pilot, the question of what quantity of work he is capable of performing within his given occupation is not at issue. The question is: Does the fact that plaintiff could possibly pursue some occupations other than that of licensed airplane pilot precluded a conclusion that he is totally disabled as the term is used in the insurance policy?
The rule for interpretation of disability provisions in insurance policies has been stated:
"As a general rule the disability provisions are to be given a reasonable, rather than a literal, construction, and, if ambiguous, are to be construed in favor of insured; but the court cannot make a new contract for the parties, and, if there is no ambiguity, neither party will be favored. The guide in construing disability provisions is the interpretation which would be given them by the ordinary business man, or by a reasonable person in the position of insured.” 45 CJS 1103-1104. (Footnotes omitted.)
There is an ambiguity in the provision in dispute in the instant case sufficient to bring the provision within the general rule quoted above. The policy provides that a person is totally disabled if he is unable to engage in any gainful occupation or employment for which he is reasonably qualiñed by education, training or experience. Careful reading indicates the policy language covers "any gainful occupation or employment” but that the words "any gainful occupation or employment” are modified by the clause, and limited to those, "for which he is reasonably qualified by education, training or experience”. Thus, the ambiguity arises from and the question then is as to the meaning, under the policy, of "reasonably” qualified.
In general, there are three views relating to the interpretation of "total disability” provisions in insurance policies. They are:
1) the extreme view in favor of the insured that total disability exists whenever the insured is unable to perform the duties of his particular occupation;
2) the extreme view in favor of the insurer that total disability exists only when there is incapacity to pursue any occupation whatever, and
3) the intermediate view, which regards total disability as a relative term, which rejects both of the two extreme views and which employs differing language to explain the degree of incapacity required to constitute total disability. We interpret the Michigan cases to follow the so-called intermediate view.
In Ebert v Prudential Ins Co of America, the Michigan Supreme Court utilized the above terminology and affirmed a judgment in favor of plaintiff who was an undertaker. The evidence indicated that plaintiff injured his back in an automobile accident suffering what was described as hypertrophic arthritis. The Court said that while he could do some light work he could not perform the embalming and lifting required of an undertaker. The Court concluded that he was permanently and totally disabled so as to be entitled to benefits under a provision contained in his life insurance policies. The Ebert Court made it clear that where there is ambiguity, insurance policies are to be liberally construed in favor of the insured. Technical construction to defeat claims is not favored.
We recognize that the language of the insurance policies involved in the Michigan cases tends to vary, but within those varying provisions, the Michigan Court has indicated a strong commitment to a liberal construction of such insurance policies that does not permit defeat of a reasonable expectation of payment of benefits. See, Crowell v Federal Life & Casualty Co.
Applying that view to the facts of the instant case, we note that the record reveals beyond dispute that plaintiff is totally disabled from pursuing his former occupation of airplane pilot. There is considerable evidence of record to indicate that all significant education, training and experience accumulated by plaintiff was geared to his preparation for the specialized occupation of airplane pilot. It is this particular occupation for which plaintiff is reasonably qualified.
Defendant argues that prior to his heart attack plaintiff had experience in sales and aviation-related jobs such as maintenance, scheduling and flight operations. Defendant says this experience compels the conclusion that plaintiff is reasonably qualified for such jobs and that, therefore, since plaintiff is now physically capable of doing that kind of work, he is not totally disabled within the meaning of the term as delineated in the insurance policy. In support of this argument, defendant cites Przbylinski v Standard Pressed Steel Co.
In Przbylinski, this Court affirmed a directed verdict for defendant where plaintiff failed to offer evidence that "he suffered a disability which prevented him from engaging in any occupation for which he was reasonably fitted” and also failed to offer evidence that he was being treated by a physician for the disability as required under that insurance policy. In fact, the evidence showed that plaintiff, a supervisor, believed he was still physi cally able to do the work and did similar work for another employer for 4-1/2 months subsequent to his alleged disablement. We conclude Przbylinski is, on its facts, readily distinguishable from this case and is not controlling precedent here.
In the within case, the trial judge said:
"Now it would seem to me that to say that this man now is reasonably qualified by education, training, or experience to do anything but fly is stretching it a little bit far. Clearly his whole adult life for all practical purposes has been devoted to flying, and to say now that at age 51 he is reasonably qualified by education, training, or experience to undertake something else, real estate or some other type of employment, seems to me stretching the language a little bit.”
We do not believe his finding was clearly erroneous.
To hold as defendant contends would be to interpret the policy as extending very limited coverage. We believe the coverage afforded under this group policy looked to the work performed by the employee for this employer. We also note that the work experience relied upon by defendant as a basis to attempt to defeat liability occurred many years ago. The trial judge’s ruling is consistent with the Michigan cases.
We hold, therefore, that under the terms of the insurance policy in question, plaintiff is unable to engage in any occupation or employment for which he is reasonably qualified by education, training or experience. Consistent with this conclusion, we affirm the award of partial summary judgment in favor of plaintiff by the trial court.
Plaintiff entitled his motion to be one for partial summary judgment, but did not specify the section of GCR 1963, 117 under which it was brought. Since the motion expressly referred to depositions, answers to interrogatories and the record, it would appear to be under GCR 1963, 117.2(3); although, in another sense, it resembles a GCR 1963, 117.2(2) motion. It is better practice to designate the specific court rule under which a motion is brought. However, since the bare facts are not in dispute, and in view of our conclusion, we will not remand for clarification of which section of GCR 1963, 117, upon which plaintiff intended to base his motion. Defendant’s motion was for summary judgment under GCR 1963, 117.2(3).
Our ruling would appear to be supportable under either GCR 1963, 117.2(2) or (3).
Affirmed.
The insurance policy here in question provided so-called Sickness and Accident Benefits for a maximum period of 12 months, which defendant paid plaintiff. The subject policy also provided for payment of extended disability benefits commencing on termination of the sickness and accident payments; it is payment of the extended disability payment that is here in dispute. For one year after his heart attack, plaintiff received his full salary from his employer, General Motors Corporation, and he receives retirement benefits. Also, for a period of about four years, plaintiff received substantial benefits from defendant under a so-called loss of pilot’s license insurance policy.
Plaintiff’s claims against defendant General Motors Corporation have not yet been litigated. The summary judgment runs only against defendant Metropolitan Life Insurance Company; thus, only defendant Metropolitan Life Insurance Company appeals. In this opinion, defendant means Metropolitan Life Insurance Company.
21 ALR3d 1155, 1158-1159.
Id. at 1161; See also, 21 ALR3d 1383, 1393-1394.
Crowell v Federal Life & Casualty Co, 397 Mich 614; 247 NW2d 503 (1976), Ebert v Prudential Ins Co of America, 338 Mich 320; 61 NW2d 164 (1953), Besh v Mutual Benefit Health & Accident Ass’n, 304 Mich 343; 8 NW2d 91 (1943), Wheeler v Equitable Life Assurance Society of the United States, 294 Mich 520; 293 NW 735 (1940), Hallock v Income Guaranty Co, 270 Mich 448; 259 NW 133 (1935), Hohn v Inter-State Casualty Co, 115 Mich 79; 72 NW 1105 (1897).
338 Mich 320, 330; 61 NW2d 164 (1953).
See Michigan cases cited in footnote 4.
397 Mich 614; 247 NW2d 503 (1976).
62 Mich App 461; 233 NW2d 614 (1975). | [
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Danhof, C.J.
Defendant pled no contest, GCR 1963, 785.7, to a charge of possession of heroin, MCL 335.341(4)(a); MSA 18.1070(41)(4)(a), and was sentenced to from 2-1/2 to 4 years in the state prison. He appeals his conviction on the grounds that critical evidence received at his preliminary examination had been seized in violation of the Fourth Amendment and that the circuit judge, contrary to court rule, failed to properly specify reasons for accepting defendant’s plea.
I
At preliminary examination the magistrate received evidence of defendant’s heroin possession, which was obtained by officers conducting a warrantless search and seizure incident to defendant’s arrest. The magistrate denied defendant’s motion to suppress that evidence on Fourth Amendment grounds. Before trial, defendant moved to quash the information against him. In that motion he did not raise his Fourth Amendment defense, but made a general attack on the sufficiency of the evidence. Before the circuit court could rule, however, defendant changed his original plea to nolo contendere.
On these facts, under applicable law and policy, defendant is precluded on appeal from challenging the denial of his motion to suppress. In People v Goodman, 58 Mich App 220; 227 NW2d 261 (1975), this Court held that a Fourth Amendment challenge to evidence introduced at trial is a nonjurisdictional defense that is waived on appeal by a plea of nolo contendere. Defendant argues that the Michigan Supreme Court’s decision in People v Alvin Johnson, 396 Mich 424; 240 NW2d 729 (1976), compels us to an opposite result. In Alvin Johnson, decided after Goodman, three Justices agreed to expand the class of rights that survive a guilty plea to include those that would be a "complete defense” to the state’s prosecution. Among other examples, the opinion by Justice Williams cites "those [defenses] relating to insufficient evidence to bind over at preliminary examination and failure to suppress illegally-obtained evidence without which the people could not proceed”. Alvin Johnson, supra, at 444; 240 NW2d at 739-740. Defendant plausibly maintains that Alvin Johnson preserves his asserted constitutional defense since the suppression of evidence seized incident to his arrest would have eliminated the state’s ability to proceed with its charge.
For two reasons, we determine that Alvin Johnson does not control the outcome of this case. The precise holding in Alvin Johnson is that the defense of double jeopardy is a complete defense to a criminal prosecution and, therefore, is not waived by defendant’s guilty plea in a prior proceeding. Justice Williams defined a "complete defense” as any defense that "undercuts] the state’s interest in punishing the defendant, or the state’s authority or ability to proceed with the trial”. Id. (Footnotes omitted.) Because the plea-waiver rule serves important state policies, we interpret this definition narrowly. In light of the vast majority of criminal cases concluded by guilty plea, see Schwartz, Note The Guilty Plea as a Waiver of 'Present but Unknowable” Constitutional Rights: The Aftermath of the Brady Trilogy, 74 Colum L Rev 1435, fn 1 (1974) (hereinafter Guilty Plea as Waiver), the scope of the plea-waiver doctrine is an issue of immense practical importance. It should be resolved by reference to the competing state and individual interest involved.
From the state’s view, plea waiver serves the important community interests of judicial economy and finality. Accordingly, it has been firmly established in Michigan, see People v Ginther, 390 Mich 436, 440, fn 1; 212 NW2d 922, 924, fn 1 (1973), and has been approved by the United States Supreme Court. Brady v United States, 397 US 742; 90 S Ct 1463; 25 L Ed 2d 747 (1970). On the other hand, state rules that impinge upon individual rights should be carefully drawn so as to actually promote the asserted state interests and not sweep too broadly. Balancing these competing concerns, we conclude the scope of the plea waiver doctrine generally should be consistent with the function of the guilty plea, which is to relieve the state from proving defendant’s guilt.
In establishing a more specific test, we are aided by the decisions of the lower Federal courts. In defining exceptions to Brady, the Federal courts seem to have established that a "complete defense” is one that "reaches beyond the factual determination of the defendant’s conduct”. Guilty Plea as Waiver, supra, at 1447. They apparently reason that a "defendant asserting such a right does not dispute participation in the proscribed activity but — by reason of a subsequently recognized right — questions the capacity of the government to punish that activity”. Id. We believe the "complete defense” exception in Michigan should have the same scope. Defects that merely impugn the accuracy of a bindover or conviction are waived by defendant’s guilty plea; they are inher-. ently subsumed by the plea, which conclusively resolves the issue of defendant’s guilt.
Theoretically, it still might make sense to distinguish fact-finding defects in the preliminary examination from similar imperfections at trial, since the sufficiency of evidence at preliminary examination determines whether there will be a trial at all. That logical difference is nevertheless without practical significance; in either situation we would be forced to look beyond the defendant’s plea and factually evaluate the state’s unpresented case.
Therefore, we hold that Alvin Johnson supplies the rule for cases in which defendants assert an absolute defense, not including defenses which relate to establishing the fact of criminal conduct. Since defendant’s asserted defense relates to the sufficiency of evidence to support a factual finding that he probably committed the offense charged, it does not survive his plea of nolo contendere.
As a second reason for finding Alvin Johnson inapplicable to this case, we assume arguendo that defendant’s asserted right is the type that is within the "complete defense” exception, but nevertheless hold that defendant lost his right to assert it by failing to make a timely objection below. In People v McIntyre, 74 Mich App 661; 254 NW2d 603 (1977), this Court held that, despite Alvin Johnson, a defendant cannot challenge the sufficiency of evidence presented at his preliminary examination after a plea of guilty when he did not press the circuit court to rule on that defense. The panel reasoned that: "Inasmuch as Johnson grounded its decision on what the guilty plea itself waives, we do not think it applies where the inaction of the defendant causes the purported error to be waived.” Id., at 065; 254 NW2d at 605. In the instant proceedings, defendant moved to quash his information after preliminary examination, but did not allege any constitutional error nor await a ruling by the circuit judge. Following McIntyre, we believe defendant’s inaction waived his right to challenge evidence received at his preliminary examination. To hold otherwise, as the panel noted in McIntyre, would mean that the magistrate’s decision to bind over would have to be reviewed by the trial court in every plea of guilty or by this Court, performing the functions of a circuit court, whenever defendants failed to press the issue below.
II
Defendant’s second ground for appeal implicates GCR 1963, 785.7(3)(b)(i). That provision, which partially replaced GCR 1963, 785.7(3)(d) as of December 7, 1975, requires the court, before accepting a defendant’s plea of nolo contendere, to "state why a plea of nolo contendere is appropriate”. While there is scarce case law interpreting GCR 1963, 785.7(3)(b), the Michigan Supreme Court seems to interpret it substantially the same as the old rule. See People v Eugene P Jones, 399 Mich 873 (1977). Therefore, in determining whether defendant’s no contest plea was appropriate in this case, we must evaluate the judge’s stated reasons according to the "interests of the defendant and the proper administration of justice”. For standards we look to the purposes of the plea as opposed to the public’s interest in rejecting it. We keep in mind generally that a nolo contendere plea is accepted only as a matter of grace, under special circumstances. Guilty Plea Cases, 395 Mich 96; 235 NW2d 132 (1975).
The basic purpose of the plea is to protect a defendant from unreasonable collateral effects of his pleading guilty. See Anno: Plea of Nolo Contendere or non vult contendere, 89 ALR2d 540, 548-549. Hence, it has been most often used to avoid exacting an admission that could be used against the defendant in other potential litigation. United States v Jones, 119 F Supp 288 (SD Cal, 1954), (avoiding admissions is the main, if not only, modern purpose of nolo contendere). Similarly, it has been accepted from defendants who are technically guilty of criminal laws intended to reach only malicious violators or of criminal acts that are civil in nature but subject to criminal penalties. Anno, supra. Weighing against the acceptance of a nolo contendere plea are a high degree of moral culpability on the part of a defendant and a potentially adverse effect on law enforcement generally. See Anno, supra, at 566-569. Convictions based on a guilty plea, because they carry a greater stigma, are likely to have a stronger deterent effect than convictions based on a plea of no contest. Also, because the plea by its nature excuses the defendant from relating the facts that establish guilt, People v Chilton, 394 Mich 34; 228 NW2d 210 (1975), improper use of nolo contendere pleas could thwart ongoing criminal investigations. People v Spann, 60 Mich App 48, 55; 230 NW2d 302 (1975).
Considering all these factors in the present case, we find an insufficient statement of reasons why defendant’s plea was appropriate. As defendant points out, the circuit court’s stated reason for accepting the plea — to avoid admissions — was merely a conclusion. After acknowledging his duty to state reasons, the judge engaged in the following dialogue with defendant’s attorney:
"MR. DOBBINS: My understanding of the cases, and I may be incorrect, beyond a good reason, if he indicates that he wishes to enter a plea of nolo contendere for the reason that he does not want to enter a guilty plea on the Record or to express his guilt on the Record.
"THE COURT: He simply doesn’t want to make admissions that might be used against him. Is that the type of thing?
"MR. DOBBINS: That’s correct.
"THE COURT: All right, I’ll accept that.”
Such a cursory nonexamination of defendant’s proffered justification does not establish the appropriateness of the plea. Although the court may not interrogate the defendant about his participation in the crime after it finds that a no contest plea is appropriate, People v Chilton, supra, the court ordinarily should determine from the defendant whether his reasons for offering that special plea are valid. Such a collateral line of questioning will not subvert the purposes of the nolo contendere plea.
Considering the possible collateral effects of an admission in this case, defendant rightly points out that his crime was victimless, and therefore could not subject him to civil liability. The state argues, nevertheless, as a matter of law any admission by defendant in this case could be used to show motive, intent, or other relevant states of mind in any subsequent prosecution against defendant for an unrelated crime. MRE 404(b). This admittedly collateral effect is too contingent and remote to justify a no contest plea. The record does not show that defendant is presently subject to any other criminal charges. Any future prosecutions for crimes arising out of the transactions that underly the charge in this case would raise serious double jeopardy problems. See People v White, 390 Mich 245; 212 NW2d 222 (1973). Thus, the asserted effect is conditioned upon the chance that defendant will commit some other crime in the future that involves a mental element within the scope of MRE 404(b). This is far from the situation where the same acts that give rise to criminal liability could also give rise to civil liability.
The state also contends that incriminating statements in a guilty plea may be used "in pre-sentence reports to judges for purposes of sentencing; screening purposes for placement by the Department of Corrections; and consideration by the Parole Board when Defendant-Appellant comes for consideration of parole”. These highly probable effects are not collateral; instead they influence the future administration of defendant’s present conviction.
In short, none of the circumstances alleged by the state are special, they are the ordinary consequences of any guilty plea. Before we even consider the public’s interest in rejecting a nolo contendere plea, we should first satisfy ourselves that special circumstances would make a guilty plea extraordinarily harsh. By finding special circumstances in this case, we would be holding that nolo contendere is prima facie appropriate as a matter of course in any criminal prosecution.
The case must be remanded for a supplemental statement of reasons why the plea was appropriate. If the lower court cannot supply adequate reasons, the plea must be vacated, People v Belan ger, 73 Mich App 438; 252 NW2d 472 (1977), and defendant ordered to stand trial.
Remanded for further proceedings. We do not retain jurisdiction.
For plea waiver purposes, it is immaterial whether defendant pleads guilty or no contest. People v Goodman, 58 Mich App 220, 222; 227 NW2d 261 (1975); see MCL 767.37; MSA 28.977.
See People v Alvin Johnson, 396 Mich 424, 444; 240 NW2d 729, 739-740; cf., Mullady, Note, Appellate Review of Constitutional Inñrmities Notwithstanding a Plea of Guilty, 9 Hous L Rev, 305, 314 (1971) (insufficient evidence to bind defendant over is really a "jurisdictional” defect).
Even in this case it is not prima facie evident that the state could not proceed without the evidence defendant sought to suppress. At preliminary examination, the magistrate must determine only that there is probable cause to bind defendant over for trial; that decision cannot be overturned unless it is a clear abuse of discretion. 1 Gillespie, Michigan Criminal Law & Procedure (2d ed), §§ 305-307, pp 363-366. Defendant sought to negate a finding of probable cause by excluding physical evidence, consisting of a vial containing heroin residue and other drug related paraphernalia, seized incident to his arrest. He also objected to testimony relating the discovery, seizure and analysis of those items. Apart from that evidence, however, the judge also heard testimony by the arresting officer from which an inference of heroin possession might be drawn. Since the element of criminal heroin possession, including the nature of the substance possessed, may be shown by circumstantial evidence, cf., People v Boyd, 65 Mich App 11; 236 NW2d 744 (1975) (sale of heroin), People v Atkins, 47 Mich App 558; 209 NW2d 735 (1973) (sale of heroin); State v Lanigan, 258 Ind 279; 280 NE2d 809 (1972), we would have to reevaluate all the evidence presented at preliminary examination to determine whether the state had authority to proceed. Although the state would probably have to show more at trial to convict defendant, see e.g., People v Boyd, supra, (without introducing physical evidence of heroin, the state must introduce testimony of someone sufficiently experienced with heroin, indicating that the substance sold was contraband), we cannot say that the prosecution, in its present posture is clearly without probable cause.
In so holding we do not ignore the language in Alvin Johnson, 396 Mich 424; 240 NW2d 729 (1976), that any defense that would prevent the trial from taking place is not waived by a' guilty plea. We recognize, however, that the language was not necessary to the result in Alvin Johnson nor clearly mandated by Justice Williams’s definition of a "complete defense” as any defense that undercuts the state’s interest or authority to proceed. Since we believe the rule that would be established by that dicta achieves an improper balance of competing interests, we should not follow it until we are bound to.
Both parties briefed the issue under GCR 1963, 785.7(3)(d). That rule was replaced by GCR 1963, 785.7(3)(b), however, before defendant’s plea was taken. See text at this note.
We reject the notion in People v Maciejewski, 68 Mich App 1; 241 NW2d 736 (1976), see also People v Michelle, 69 Mich App 389; 245 NW2d 59 (1976), that a nolo contendere plea is appropriate whenever a defendant is inclined to be noncummunicative about the facts establishing his guilt. We believe the appropriateness of a nolo contendere plea is qualitatively independent from its factual basis. Although there was a good deal of confusion about this point under the old court rule, see People v Gonzales, 70 Mich App 319; 245 NW2d 734 (1976), the new rule clearly distinguishes these two elements. Thus, a defendant is privileged to remain silent about his guilt or the facts establishing his guilt whenever he affirmatively states an adequate justification that outweighs any public interest in rejecting the plea. Once he does, the court may not interrogate him to establish a factual basis, since that would backhandedly convert his nolo contendere plea into a guilty plea.
While we find this disposition mandated by court rule and case law, we are troubled by it. As we explained, the purpose of the nolo contendere plea is to protect defendants from unreasonable collateral effects of pleading guilty. It is anomolous on appeal for defendant to argue he should not have been so protected, that the court in essence gave him more than he deserved in detriment to the people’s interest in rejecting the plea. Yet, the court rule clearly requires the trial judge to make a record of appropriate reasons, and unless we are willing to accept nolo contendere pleas as a matter of course in criminal cases, we are constrained to find error in this case. At first blush, the error seems harmless and in this respect we note the Supreme Court’s language in Guilty Plea Cases, 395 Mich 96; 235 NW2d 132 (1975), that "[wjhether a particular departure from Rule 785.7 justifies or requires reversal or remand for additional proceedings will depend on the nature of the noncompliance.” Id., at 113. If the error in this case is harmless, however, all errors by the trial court under GCR 1963, 785.7(3)(b)(i) would seem to be harmless. Practically, such a holding would write that subsection out of the court rule.
Thus, we are obliged to remand for a supplemental statement of reasons, which under the circumstances is not likely forthcoming. See part II of this opinion, supra. The result on remand may very well be a vacation of defendant’s otherwise just and valid conviction in order to vindicate the "people’s interests”. To avoid such anomolies in the future we urge prosecutors to refrain from bargaining for nolo contendere pleas that are inappropriate. | [
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Per Curiam.
Detroit Automobile Inter-Insurance Exchange (hereinafter defendant) appeals from an amended declaratory judgment which entitled plaintiff to coverage under the uninsured motorist provision of an insurance policy issued by defendant. The form of the policy had been approved by the Commissioner of Insurance.
Factually, plaintiff was injured when the automobile she was driving on M-60 in Cass County, Michigan was struck by one owned and operated by Banks, a resident of Illinois. The automobile plaintiff was driving was owned by her father who was insured with defendant. The uninsured motorist provision involved provided coverage of $20,000 as provided by law. Banks was insured by an Illinois insurance company not authorized to do business in Michigan. His policy had a $10,000 limit of liability for bodily injury, and this satisfied Illinois statutory requirements.
In her personal injury action against Banks, plaintiff recovered $60,000 by jury verdict and judgment thereon. Banks’ insurance company paid its policy limits on the judgment. Under its medical coverage, defendant paid plaintiff certain medical benefits.
On appeal, defendant makes the following arguments:
"I. An Illinois automobile involved in an accident in Michigan while insured under a policy of insurance affording liability coverage to the extent required by the Illinois financial responsibility laws, but not affording liability coverage to the extent required by Michigan laws governing policies delivered or issued for delivery in Michigan, with respect to motor vehicles registered or principally garaged in Michigan, is not an uninsured automobile under the uninsured motorist coverage of the policy issued by the defendant DAIIE on the motor vehicle which plaintiff was driving.”
The reasoning of Woods v Progressive Mutual Ins Co, 15 Mich App 335; 166 NW2d 613 (1968), is applicable and it defeats this argument.
"II. If said Illinois automobile is determined to be an uninsured automobile under the uninsured motorist coverage of the policy issued by defendant DAIIE on the vehicle which plaintiff was driving, defendant DAIIE is entitled to a set-off in the amount of the liability coverage afforded by the Illinois insurance policy covering said Illinois automobile.”
The reasoning of Blakeslee v Farm Bureau Mutual Ins Co of Michigan, 388 Mich 464; 201 NW2d 786 (1972), is applicable and defeats this argument.
"HI. If said Illinois automobile is determined to be an uninsured automobile under the uninsured motorists coverage of the policy issued by defendant DAIIE on the vehicle which plaintiff was driving, defendant DAIIE is entitled to a set-off in the amount of the medical payments it made on behalf of plaintiff.”
This argument cannot be sustained, Keyes v Beneficial Ins Co, 39 Mich App 450; 197 NW2d 907 (1972).
In its brief under the first argument, defendant also raises two constitutional issues neither of which merits comment.
Affirmed with costs to plaintiff. | [
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Per Curiam.
Following a bench trial on July 13 and 14, 1976, defendant was found guilty of delivery of heroin in violation of MCL 335.314(b), 335.341(l)(a); MSA 18.1070(14)(b), 18.1070(41)(l)(a). He was sentenced to three years probation with six months to be spent in the county jail. He appeals as of right.
According to the testimony, one Eric Colby, a cousin of defendant, working in conjunction with David Brewer, an undercover officer and deputy sheriff, began calling on defendant in January of 1975. Colby told defendant he had been arrested on a breaking and entering charge in another county and needed funds to engage an attorney. He also stated that certain blacks, who had purchased dope before, had been to his house and had demanded more. After being assured that Colby did not intend to use the heroin himself, defendant delivered a tinfoil packet to him containing 1/3 gram of a brown powdery substance which contained 10% heroin.
Three questions are raised on appeal; however, since the entrapment issue will be dispositive, it is the only issue discussed here.
It is now well established in Michigan by the holding of the Supreme Court in People v Turner, 390 Mich 7, 19-21; 210 NW2d 336 (1973), that the so-called objective test is to be applied to the facts of a case in order to determine if in reality entrapment has ensued.
The situation presented in the case at bar is remarkably similar to the one in People v Cushman, 65 Mich App 161; 237 NW2d 228 (1975), except that the cousin there played on the sympathies of the defendant by saying that his brother-in-law had a friend who was sick and needed some dope.
A majority of the panel in Cushman, after a reference to Turner, stated:
"The Court relied heavily upon the dissenting opinion of Justice Stewart in United States v Russell, 411 US 423; 93 S Ct 1637; 36 L Ed 2d 366 (1973). Both opinions placed the determination of entrapment upon the evaluation of whether repugnant methods were used by the police rather than the defendant’s predisposition to commit the offense.”
"The court’s attention should be focused on the conduct of the police and whether that conduct has in a reprehensible manner instigated the commission of a crime by one not ready and willing to commit it— regardless of the propensities of the particular person induced.” People v Cushman, supra at 164, 166.
In People v Fraker, 63 Mich App 29, 33; 233 NW2d 878 (1975), we find the following statement:
"If the police conduct was sufficiently provocative to induce the normal law abiding citizen to commit a crime, entrapment has occurred regardless of the predisposition of the defendant involved.”
See also People v D’Angelo, 401 Mich 167, 173; 257 NW2d 655 (1977); People v Duis, 81 Mich App 698; 265 NW2d 794 (1978); People v Stanley, 68 Mich App 559; 243 NW2d 684 (1976); People v Asher, 67 Mich App 174; 240 NW2d 749 (1976); People v Van Riper, 65 Mich App 230; 237 NW2d 262 (1975).
Application of the objective test, promulgated in the foregoing citations, to the facts in this case leads us to the conclusion that defendant was entrapped contrary to the finding of the trial court. Ramon was reluctant to make the sale and did so only after being convinced by Colby that he needed money and would not use the drug himself.
Plaintiff relies heavily on People v Irma Perry, 75 Mich App 121, 126; 254 NW2d 810 (1977). However, in that decision one judge disagreed in a strong dissent and the majority opinion contains two sentences which distinguish it from the present situation:
"The relationship between the informant and defendant was not created by the police, or by the informant for the purchase. There were no appeals made to defendant’s sympathies.”
The defense of entrapment is still available to a defendant following inducement to commit a crime even though the false statements or sympathies are made by a private person, if "encouragement or assistance” is given by law enforcement officials. Stanley, supra at 564.
This Court possesses the authority to decide the entrapment issue as a matter of law rather than remanding the case to the trial judge when the defendant’s testimony is considered as true or the evidence is uncontroverted. Fraker, supra, People v Henley, 54 Mich App 463; 221 NW2d 218 (1974).
Following a careful review of the briefs and the facts as disclosed by the record we conclude as a matter of law that defendant was entrapped into committing the offense.
Reversed and defendant discharged.
On remand, the officers in Cushman were found guilty of entrapment and the defendant was discharged. File No. 4191, Shiawassee County Circuit Court records. | [
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D. E. Holbrook, J.
Our brother, Judge Bronson, clearly sets out the facts of the instant case in his dissent. The plaintiffs’ standing to raise their allegations of fraud in the court below must be upheld. It is clear that there is no authority directly on point in this matter and our disagreement with the dissent on this issue is merely a disagreement regarding the extent of irregularity implied in the plaintiffs’ allegations. The dissent is certainly correct when it notes that the treasurers’ statutory duties with regard to the collection of drain assessments are merely ministerial. MCL 211.43; MSA 7.84. In addition, the treasurers are indemnified by the county against any action arising out of irregularity in the collection of drain taxes. MCL 280.265; MSA 11.1265.
The line of cases including The County Treasurer of Berrien v Bunbury, 45 Mich 79; 7 NW 704 (1881), Scholtz v Smith, 119 Mich 634; 78 NW 668 (1899), and Mayor of City of Dearborn v Dearborn Retirement Board of Trustees, 315 Mich 18; 23 NW2d 186 (1946), does suggest that the treasurers’ standing in this case may not be "commensurate with their public trusts and duties”. Nevertheless, we hold that careful attention must be accorded the plaintiffs’ allegations of fraudulent conduct, thereby placing greater emphasis and a broader interpretation upon the phrase "public trust” as used in Bunbury, Scholtz, and Dearborn Retirement Board, supra. Nothing in these cases dictates that standing shall only lie to fulfill "discretionary” duties of public officers and we hold that "public trust” includes the treasurers’ duties as fiduciaries in the management and application of funds. 62 CJS, Municipal Corporations, § 697, pp 1392-1395.
The treasurers-plaintiffs’ complaint basically alleges that defendant Wayne County Drain Commission has fraudulently utilized tax funds which are statutorily earmarked for drain construction work to cover administrative expenses; by statute, such administrative expenses should come from the defendant county’s general fund. MCL 280.196; MSA 11.1196. This statute permits the county drain commissioner to assess landowners benefit-ted by drain maintenance and repair costs up to $800 per mile, without petition, provided the repairs have been performed within the previous two years.
The plaintiffs-treasurers’ complaint alleged that the work for which the contested taxes were assessed was not performed within the last two years; that the assessments exceeded the statutory maximum and were not proportioned properly; that proper notice was not given; and finally, that the special assessments were not being used to reimburse the Drain Revolving Fund at all, but rather were used to cover administrative expenses. In Drain Commissioner of the County of Huron v Supervisor of the Twp of Chandler, 90 Mich 278, 279; 51 NW 282 (1892), the Court refused to issue a writ of mandamus to compel a township supervisor to assess a drain tax. According to the Court: "The proceedings being so defective that no legal drain could be laid out, the supervisor was not in the wrong in refusing to assess the tax.” Similarly, such a writ was denied in The Board of Supervisors of Cheboygan County v The Supervisor of the Twp of Mentor, 94 Mich 386, 388; 54 NW 169 (1892), on the grounds that it:
"[CJannot be invoked to accomplish a confessedly illegal purpose, even though the officer against whom it is invoked is charged with an express duty under the statute.
"The circumstances must be exceptionally extraordinary which will justify a supervisor in refusing to comply with his statutory duty, but we think the respondents in this case were justified in so doing.”
It is settled law in Michigan that a motion to dismiss should not be granted where the plaintiffs standing to sue is based upon a disputed question of fact. Watts Construction Co v Joint Clutch & Gear Service, Inc, 325 Mich 548; 38 NW2d 919 (1949). This continues to be the law under GCR 1963, 116, when such a dismissal is denominated an accelerated judgment, since Rule 116 was not intended to be a "radical departure from past practice”. 1 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), p 336.
In the instant case such "exceptionally extraordinary” circumstances as required by the Supreme Court in Huron County Drain Commissioner and Cheboygan County Supervisors are alleged and this Court will not deny the plaintiffs-treasurers’ standing to seek relief, even affirmative relief, without a full evidentiary trial. In much the same manner, the individual taxpayers’ standing in the instant case depends upon whether they can establish extraordinary circumstances indicating the existence of fraudulent conduct on the part of the county drain commission. The Supreme Court cases of Twp of Norton v Cockerill, 265 Mich 405; 251 NW 543 (1933), and Brooks v County of Oakland, 268 Mich 637; 256 NW 576 (1934), clearly indicate that mere allegations of illegality will not suffice to toll the running of the statute of limitations. Neither of these opinions had occasion to consider the impact of allegations of fraudulent conduct.
Under MCL 600.5855; MSA 27A.5855, the taxpayers’ complaint in the instant suit alleged fraud and fraudulent concealment, which, if proven, would exempt the plaintiffs-taxpayers from the 30-day statute of limitations under MCL 280.265; MSA 11.1265. Whether or not MCL 600.5855 applies to save the individual plaintiffs’ actions in the instant case depends upon whether plaintiffs sustain their allegations of fraud at trial. If they should carry the burden of demonstrating fraudulent conduct on the part of the defendants, the plaintiffs’ action is timely. If the plaintiffs fail to show fraud on the part of the defendants, their action must be dismissed as not timely under MCL 280.265. Such a determination is clearly a decision of fact which should await a full trial on the merits. Cf. Corley v Logan, 35 Mich App 199; 192 NW2d 319 (1971).
We note that since the Tax Tribunal has not been given general equitable powers, it is appropriate that this matter be decided in circuit court. Despite the Tax Tribunal’s purported exclusive jurisdiction, MCL 205.701, et seq.; MSA 7.650(1), et seq., where relief is sought which only a court of general equitable jurisdiction can provide, the action may properly be brought before such court.
Affirmed in part and reversed in part.
N. J. Kaufman, P.J., concurred. | [
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Per Curiam.
Defendant was charged with armed robbery, MCL 750.529; MSA 28.797, and found guilty by a jury as charged. He was sentenced on February 28, 1977, to a term of 20 to 40 years in prison and appeals as of right.
Defendant first contends that the on-the-scene identification of him by the complaining witness was improper because it occurred in the absence of counsel and was impermissibly suggestive.
An on-the-scene identification is a well-recognized exception to the rule requiring counsel during a corporeal identification once a suspect is in custody. People v Curtis Williams, 57 Mich App 612; 226 NW2d 584 (1975). The rationale behind the exception is that such confrontations are reasonable police practices since they permit the police to immediately determine whether there is a reasonable likelihood that the suspect is connected with the crime and subject to arrest, or merely an unfortunate victim of circumstance. Defendant’s contention that counsel was required is unfounded.
Defendant’s second allegation that the identification was impermissibly suggestive is also without merit. This argument is totally undermined by the fact that although the witness identified defendant, he failed to identify the other suspect who was shown to the witness in the exact same manner as defendant. Defendant also failed to properly preserve this issue as he made no pretrial motion to suppress the allegedly suggestive identification, nor did he object to the in-court identification at trial. People v Curtis Williams, supra. Instead, he chose to try and show the alleged suggestiveness through vigorous cross-examination of the identifying witness and the police officers present at the on-the-scene identification. Under these circumstances "defendant was neither denied due process nor his right to a fair trial”. People v Johnson, 59 Mich App 187, 190; 229 NW2d 372 (1975).
Defendant next contends that the trial court erred in refusing to suppress his prior conviction record. At trial, defendant testified in camera that he would not take the witness stand if the prosecutor was permitted to go into his past record. The trial judge properly exercised his discretion under People v Jackson, 391 Mich 323; 217 NW2d 22 (1974), and ruled that seven of defendant’s nine prior convictions could be used by the prosecutor for impeachment purposes. Defendant chose not to testify. It was not until after trial that defendant brought to the attention of the trial court, in a motion for new trial, that two of his prior convictions were invalid because they were obtained without benefit of counsel. Thus, under Loper v Beto, 405 US 473; 92 S Ct 1014; 31 L Ed 2d 374 (1972), they were inadmissible for impeachment purposes and reversal would be mandated if the admission of the convictions "might well have influenced the outcome of the case”. 405 US at 480.
After a careful review of the record, we conclude that reversal is not necessary because neither the threatened nor actual use of the prior convictions would have influenced the outcome of the case. Even if the two void prior convictions had been suppressed, the prosecutor would still have been able to impeach defendant with five valid and more recent larceny related convictions. Since defendant testified that he would not take the witness stand in his own behalf if the prosecutor were permitted to go into his prior record, it is unlikely that defendant would have taken the stand even if the two invalid convictions were suppressed as five valid admissible prior convictions still remained. Furthermore, if defendant had testified at trial and had been impeached by all seven of the prior convictions, the use of the five valid larceny re lated convictions would have so undermined defendant’s credibility that the introduction of the two more remote invalid prior convictions would not have influenced the outcome of the case. People v Moore, 391 Mich 426; 216 NW2d 770 (1974). Therefore, we decline to reverse for a new trial.
Finally, defendant asserts that he should be resentenced by a different trial judge because his presentence report listed his invalid prior convictions and recommended a sentence of 60 to 100 years based on "this offender’s extensive past history of illegal activities”.
In United States v Tucker, 404 US 443; 92 S Ct 589; 30 L Ed 2d 592 (1972), the Supreme Court remanded for resentencing where the trial judge explicitly considered prior convictions which had been obtained in violation of the right to counsel where it appeared that the sentence might have been different if the sentencing judge had known the prior convictions were invalid.
In the instant case, the presentence report labeled the void convictions as "uncounseled”. A recess was granted so that defendant and his attorney could review the presentence report. The trial judge gave the defendant an opportunity to respond to the presentence report and explain or controvert any of the representations it contained in accordance with GCR 1963, 785.12. The trial judge also allowed the defendant to supply him with his own version of a presentence report which the judge read before coming into court. The trial judge had a discussion with the defendant to determine which prior convictions were obtained without counsel, and stated that he would not consider these "uncounseled” convictions. Furthermore, the trial judge did not follow the recommendation of the probation officer regarding the length of sentence:
"The court does agree with your attorney and perhaps with you, also, that the recommendation of the Probation Agent is too extreme. It is possible that the officer, the Probation Agent’s recommendations are because of his misunderstanding of the prior alleged illegal activities.
"The court had indicated to you that those particular matters are not being considered by the court. Only those matters in which you were represented and, of course, the instant case.”
We conclude there was no violation of Tucker.
Affirmed. | [
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After Remand
R. B. Burns, P.J.
Plaintiff filed a complaint in circuit court alleging that it had purchased 1000 shares of American Agronomics Corporation stock on account for defendant, and was owed $15,270 for the stock. Defendant answered, and counterclaimed, alleging he was injured through plaintiff’s mishandling of the transaction. The trial court granted plaintiff’s motion for accelerated judgment on the counterclaim, upon determining that it lacked subject matter jurisdiction over the claim.
Defendant moved for leave to file an amended counterclaim. In the amended counterclaim defendant alleges that he was without knowledge of the law and rules regarding purchase of securities, and that plaintiff’s agents had alleged that they had expertise in the purchase of securities and related matters. Defendant further alleges that plaintiff was a member of the New York Stock Exchange and American Stock Exchange, and subject to exchange rules that it know the essential facts about each customer and order; that plaintiff knew or should have known that defendant’s sister and brother-in-law were major stockholders in American Agronomics Corporation, and as a consequence defendant might be required to file a schedule 13-D with the Securities and Exchange Commission in connection with the purchase, and be restricted in reselling the stock. Defendant alleges that plaintiff had a duty to advise defendant of the legal ramifications of the purchase, to file a schedule 13-D, or to consult with an attorney; failed to so advise; and as a result, defendant has been sued by the Securities and Exchange Commission and various other parties, has been enjoined from sell ing his stock as it has declined in value, and has been subjected to adverse publicity.
Defendant’s motion for leave to file an amended counterclaim was denied by the trial court. Defendant appealed, and this Court remanded to the trial court with instructions to set forth the reasons for the denial of defendant’s motion. Ben P Fyke & Sons v Gunter Co, 390 Mich 649, 656-657; 213 NW2d 134, 137 (1973). The trial court filed an opinion explaining that it had denied the motion because the amended counterclaim was legally insufficient on its face, and amendment would, therefore, be futile. Ben P Fyke & Sons v Gunter Co, supra. The trial court reasoned that the duty alleged to have been breached by plaintiff derives from exchange rules rather than common law, and therefore exclusive jurisdiction over the claim resides in Federal courts. 15 USC 78aa. We reverse.
15 USC 78aa provides in part that,
"[t]he district courts of the United States, and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have exclusive jurisdiction of violations of this chapter or the rules and regulations thereunder, and of all suits in equity and actions at law brought to enforce any liability or duty created by this chapter or the rules and regulations thereunder”.
However,
"[t]he rights and remedies provided by this chapter shall be in addition to any and all other rights and remedies that may exist at law or in equity * * * ”. 15 USC 78bb.
Thus, if the duty alleged to have been violated by plaintiff was created by the Securities Exchange Act of 1934 or "the rules and regulations thereun der”, and does not exist "at law or in equity”, the Federal courts have exclusive jurisdiction.
"This is not meant to suggest that it was the intent of Congress, in enacting the statute in question, to preempt common-law rights which might have been fully adjudicated and enforced in a State court before the act was passed. A more likely construction of the statute is that it confers exclusive jurisdiction on Federal courts to entertain only those actions which involve some right of recovery which goes beyond such common-law rights. * * * Both State and Federal courts recognize that a common-law action giving rise to a private civil remedy enforcible in the State courts may arise out of violations of the provisions of the act * * * .” McCollum v Billings, 53 Misc 2d 661, 664-665; 279 NYS2d 609, 614 (Sup Ct, 1967). (Citation omitted.)
"[Rjules and regulations thereunder”, 15 USC 78aa, refers to Securities and Exchange Commission rules, not stock exchange rules. Starkman v Seroussi, 377 F Supp 518, 523 (SD NY, 1974). However, stock exchange rules are promulgated as a condition of registration, 15 USC 78f(d), and may amount to a substitute for regulation by the Securities and Exchange Commission. Colonial Realty Corp v Bache & Co, 358 F2d 178, 182 (CA 2, 1966), cert den, 385 US 817; 87 S Ct 40; 17 L Ed 2d 56 (1966), Starkman v Seroussi, supra. Depending upon the rule and the circumstances, a violation of an exchange rule may be actionable as a violation of a "duty created by this chapter”, 15 USC 78aa. Starkman v Seroussi, supra.
In determining whether violation of a stock exchange rule is actionable under Federal law,
"the court must look to the nature of the particular rule and its place in the regulatory scheme, with the party urging the implication of a federal liability carrying a considerably heavier burden of persuasion than when the violation is of the statute or an SEC regulation. The case for implication would be strongest when the rule imposes an explicit duty unknown to the common law.” Colonial Realty Corp v Bache & Co, supra, 182.
In part this reluctance to find per se Federal liability for violation of exchange rules is due to the unlikelihood that Congress intended to create a new body of Federal broker-customer law, thereby stripping state courts of the power to adjudicate claims between brokers and customers. Colonial Realty Corp, supra at 183.
The exchange rules relied upon by defendant in his counterclaim require members of the exchanges to use due diligence to learn the essential facts relative to every customer and order. New York Exchange Rule 405, American Stock Exchange Rule 411. Although Federal courts are split on the issue of whether violation of Rule 405, and by implication Rule 411, may ever state a cause of action, compare Buttrey v Merrill Lynch, Pierce, Fenner & Smith, Inc, 410 F2d 135, 142-145 (CA 7, 1969), cert den, 396 US 838; 90 S Ct 98; 24 L Ed 2d 88 (1969), with Nelson v Hench, 428 F Supp 411, 417-420 (D Minn, 1977), it is clear that violations of Rule 405 are not per se actionable. Rather, because the Securities Exchange Act is directed to fraud, not mere negligence, the facts involved in the rule violation must minimally be "tantamount to fraud” to state a Federal cause of action. See Buttrey, supra at 143, Wells v Blythe & Co, Inc, 351 F Supp 999 (ND Cal, 1972), Hecht v Harris, Upham & Co, 283 F Supp 417, 430 (ND Cal, 1968), aff'd as modified, 430 F2d 1202 (CA 9, 1970).
Defendant’s counterclaim alleges negligence, not fraud. As a consequence, Federal courts do not have exclusive jurisdiction over the counterclaim.
Plaintiff argues that the counterclaim fails to state a cause of action under state law, first, because there are no prior cases stating that a broker owes its customers a duty to advise of legal complications involved in a stock transaction, and second, such a duty would amount to a requirement that it engage in the unauthorized practice of law.
" 'The court should be especially reluctant to dismiss on the basis of the pleadings when the asserted theory of liability is novel or extreme, since it is important that new legal theories be explored and assayed in the light of actual facts rather than a pleader’s suppositions.’ ” Crowther v Ross Chemical & Manufacturing Co, 42 Mich App 426, 430; 202 NW2d 577, 580 (1972), quoting 5 Wright & Miller, Federal Practice & Procedure, § 1357, p 603.
The absence of prior reported cases on broker negligence certainly does not mean brokers are under no duty to their customers to refrain from careless infliction of injury. Rather, plaintiffs objection that it is under no duty to warn about the legal implications of a purchase, to file a schedule 13-D, or consult an attorney really goes to the issue of specific standard of care, not duty, and is properly a question for a jury. Moning v Alfono, 400 Mich 425; 254 NW2d 759 (1977). We need not discuss at this point the extent of advice regarding legal complications about which a broker might be required to give a client in light of the unauthorized practice statute, MCL 600.916; MSA 27A.916, since defendant has alleged that plaintiff failed to advise him to consult an attorney, which would clearly not be unauthorized practice.
Reversed and remanded. | [
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Per Curiam.
Plaintiff brought this action to recover benefits under a policy of insurance issued to him by defendant, for injuries sustained in a motorcycle accident. Defendant brought a motion for accelerated judgment under GCR 1963, 116.1(5), on grounds that the claim was barred by the applicable statute of limitations. The trial court denied the motion, and defendant brings this appeal by leave of the Court.
The decision of this case depends upon an interpretation of a section of the no-fault insurance statute, MCL 500.3145(1); MSA 24.13145(1), which provides:
"(1) An action for recovery of personal protection insurance benefits payable under this chapter for acci dental bodily injury may not be commenced later than 1 year after the date of the accident causing the injury unless written notice of injury as provided herein has been given to the insurer within 1 year after the accident or unless the insurer has previously made a payment of personal protection insurance benefits for the injury. If the notice has been given or a payment has been made, the action may be commenced at any time within 1 year after the most recent allowable expense, work loss or survivor’s loss has been incurred. However, the claimant may not recover benefits for any portion of the loss incurred more than 1 year before the date on which the action was commenced. The notice of injury required by this subsection may be given to the insurer or any of its authorized agents by a person claiming to be entitled to benefits therefor, or by someone in his behalf. The notice shall give the name and address of the claimant and indicate in ordinary language the name of the person injured and the time, place and nature of his injury.”
Plaintiff contends that the quoted section is not a limitation of actions provision, but rather a notice provision and therefore constitutes a bar to this action only if defendant establishes that it was prejudiced by the lack of notice, citing Carver v McKernan, 390 Mich 96; 211 NW2d 24 (1973).
We disagree. Notice provisions have different objectives than statutes of limitation. Notice provisions are designed, inter alia, to provide time to investigate and to appropriate funds for settlement purposes. Statutes of limitation are intended to prevent stale claims and to put an end to fear of litigation. Dillon v Tamminga #1, 64 Mich App 301; 236 NW2d 716 (1975).
In Dolson v Secretary of State, 83 Mich App 596; 269 NW2d 239 (1978), we dealt with the time limitation for recovery of personal protection insurance benefits claimed through an assigned claims plan, embodied in MCL 500.3174; MSA 24.13174. The time limitation contained in that section is determined by applying MCL 500.3145(1); MSA 24.13145(1), which provision is involved in the instant case. We concluded in Dolson that the specific objective of the time limitation is to insure that claims be settled while the evidence remains fresh. This objective is characteristic of a statute of limitation.
In the case at bar, the language of the statute was intended as a limitation on actions for personal benefits arising under the no-fault act, with a mechanism for extending the one-year period upon filing of notice within the year. There is no requirement that plaintiff file notice in order to be able to take advantage of the full statutory period. That he is entitled to in any case. Notice simply gives him the benefit of an additional year’s grace.
The statute construed in Carver, supra, by contrast, contained a three-year period of limitations for filing lawsuits, with an additional provision that failure to file notice of intent to claim within six months of the accrual of the cause of action also barred the claim, MCL 257.1118; MSA 9.2818. Unlike the statute involved in Carver, the provision involved herein does not unduly restrict access to the courts. Its effect is to encourage those with a claim against their insurance company to bring the matter to court while it is fresh. It differs from statutory notice provisions which trap unwary litigants who have claims which are brought within the time limited, but without proper notice.
Thus, we conclude that MCL 500.3145(1); MSA 24.13145(1) is a one-year statute of limitations, with a provision enabling claimants to extend the period for up to one additional year by giving notice. Plaintiff having neither filed a complaint nor given notice within the one-year period, is barred from now presenting his claim. The motion for accelerated judgment should have been granted.
Accordingly, we reverse the trial court and dismiss plaintiff’s complaint.
Costs to appellant. | [
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V. J. Brennan, J.
The defendant was charged with two counts of armed robbery, MCL 750.529; MSA 28.797, and was convicted after a jury trial of one count. The defendant was sentenced to 15 to 30 years in prison and appeals as of right. Three issues are raised on appeal, only one of which merits discussion.
The facts surrounding the defendant’s claim of prosecutorial error are set forth in the dissenting opinion.
Although we feel that the prosecutor’s comment on the defendant’s impecuniousness in the present case constituted error, we do not believe that such error mandates reversal upon application of the harmless error test. MCL 769.26; MSA 28.1096. See People v Ronald Green, 74 Mich App 601, 604; 254 NW2d 788 (1977).
At trial the defendant did not question the fact that the robbery took place but raised the defense of alibi. Three eyewitnesses were introduced who testified that they picked the defendant out of a lineup and then positively identified the defendant at trial as the robber. In addition no alibi witnesses testified in regard to the robbery charge upon which the defendant was convicted.
The reference to the defendant’s impecuniousness was brief and was not the subject of a prolonged effort by the prosecutor. Taking into account the brevity of the comment and the overwhelming evidence against the defendant, we hold the error harmless and affirm the defendant’s conviction.
Affirmed.
D. E. Holbrook, P.J., concurred.
Here the Court in applying the second prong of the harmless error test cited the "lengthy jury deliberations and the relative dearth of direct evidence implicating the defendant” and was unable to hold harmless the prosecutorial misconduct which included comment on defendant’s lack of employment. | [
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D. E. Holbrook, P.J.
On October 10, 1975, plaintiff William Flower, a state police officer, was struck by defendant Donald Gensterblum’s vehicle while on duty and in the course of the plaintiffs employment. On May 20, 1977, Flower filed a complaint against Gensterblum, alleging negligence, and against defendant The Brewery, Inc., doing business as The Silver Dollar Saloon, alleging violation of the dramshop act, MCL 436.22; MSA 18.993. The plaintiff sought $500,000 damages, denominated recovery for "severe, painful and permanent injuries” and "serious impairment of body functions and permanent serious disfigurement”. In accord with the no-fault act, recovery for economic losses was not sought.
Michigan State Accident Fund, workmen’s compensation insurer for the Michigan state police, paid wage loss benefits to Flower from the date of the accident through October 29, 1976. The Accident Fund also paid plaintiffs medical expenses through October of 1977. These payments were made pursuant to the Worker’s Disability Compensation Act of 1969, MCL 418.101 et seq.; MSA 17.237(101) et seq.
After the Accident Fund was denied consent to intervene in plaintiffs action against Gensterblum, it filed a motion to intervene pursuant to GCR 1963, 209.1(1) and MCL 418.827(1); MSA 17.237(827X1), in order to recover its payments from any damages plaintiff might receive. Plaintiff Flower and defendants Gensterblum and The Brewery all opposed the Accident Fund’s motion to intervene. The motion was denied by the circuit court, which also certified its action to be a final order subject to appeal as of right.
Appellant Accident Fund contends that GCR 1963, 209.1(1), when considered in conjunction with the Worker’s Disability Compensation Act, confers upon it an unconditional right to intervene in the instant action. Rule 209.1(1) provides that:
"Anyone shall be permitted to intervene in an action
"(1) when a statute of this state confers an unconditional right to intervene.”
According to appellant, MCL 418.827(1); MSA 17.237(827X1) grants it such a right. It states:
"Where the injury for which compensation is payable under this act was caused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies but the injured employee or his dependents or personal representative may also proceed to enforce the liability of the third party for damages in accordance with the provisions of this section. If the injured employee or his dependents or personal representative does not commence the action within 1 year after the occurrence of the personal injury, then the employer or carrier, within the period of time for the commencement of actions prescribed by statute, may enforce the liability of such other person in the name of that person. Not less than 30 days before the commencement of action by any party under this section, the parties shall notify, by certified mail at their last known address, the bureau, the injured employee, or in the event of his death, his known dependents or personal representative or his known next of kin, his employer and the carrier. Any party in interest shall have a right to join in the action. ” (Emphasis added.)
With respect to reimbursement, it provides at MCL 418.827(5); MSA 17.237(827X5):
"In an action to enforce the liability of a third party, the plaintiff may recover any amount which the employee or his dependents or personal representative would be entitled to recover in an action in tort. Any recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, shall ñrst reimburse the employer or carrier for any amounts paid or payable under this act to date of recovery and the balance shall forthwith be paid to the employee or his dependents or personal representative and shall be treated as an advance payment by the employer on account of any future payments of compensation benefits.” (Emphasis added.)
Clearly, were this an ordinary tort action arising out of the plaintiffs employment but not involving a motor vehicle, the appellant’s claim for intervention would be uncontestable. The policy behind this requirement of reimbursement was discussed by the Supreme Court in Pelkey v Elsea Realty & Investment Co, 394 Mich 485; 232 NW2d 154 (1975). In Pelkey the Court relied upon this section of the worker’s disability act to uphold the insurer’s right to treat two-thirds of an employee’s third party settlement for pain and suffering as credit in its favor when the employee sought additional benefits for economic loss. At p 492 it quoted 2A Larson, Workmen’s Compensation Law, § 74.35, p 14-246 to the effect that:
" '[I]t is quite clear, as the cases now stand, that the prevailing rule in the United States refuses to place an employee’s third-party recovery outside the reach of the employer’s lien on the ground that some or all of it was accounted for by damages for pain and suffering.’ (Footnote omitted.)”
The Court then upheld the majority view, as adopted in Michigan by MCL 418.827(5), against due process and equal protection attacks. The Court first noted that as originally enacted, workmen’s compensation statutes required an election of remedies: the injured employee could not pursue recovery from both the tortfeasor and the insurer. Pelkey, supra at 493, Albert A Albrecht Co v Whitehead & Kales Iron Works, 200 Mich 109; 166 NW 855 (1918). As the requirement of election of remedies had been abolished, therefore theoretically allowing the employee to seek a double recovery, the Court was unabashed in allowing the insurer to claim reimbursement. "We do not find the provision for reimbursement to be an arbitrary denial of a property right. The right to reimbursement is justified by the abrogation of the election of remedies requirement.” Pelkey, supra at 493. Allowing reimbursement in these cases basically meant that the victim could claim the larger of his two recoveries, and no more.
The Court also allowed an insurer to seek reimbursement out of the employee’s settlement with a third party in Transamerican Freight Lines, Inc v Quimby, 381 Mich 149; 160 NW2d 865 (1968). This case is of limited precedential value, however, due to the unique fact situation, amounting very nearly to the creation of an estoppel against the employee.
Appellees contend, and the trial court held, that the worker’s compensation act as interpreted in Pelkey is inapplicable to the instant case due to the subsequent enactment of the no-fault insurance act of 1973, MCL 500.3101 et seq.; MSA 24.13101 et seq., which bars suit in tort against third persons for economic losses. MCL 500.3135; MSA 24.13135. This section provides in pertinent part that:
"(2) Notwithstanding any other provision of law, tort liability [with respect to the operation of motor vehicles] * * * is abolished except as to:
"(b) Damages for noneconomic loss [or excessive economic loss or intentionally inflicted injuries].” (Emphasis added.)
On one of two occasions when this Court has considered this question previously it decided Wrobel v Wayne County Road Comm, 79 Mich App 484; 261 NW2d 58 (1977), lv pending. In a very brief opinion the Court held that the defendant road commission was entitled to be subrogated to the rights of the employee so that it might recover its payments of approximately $20,000 for lost wages and medical expenses (so-called economic loss) from the $25,000 which the defendant received from the tortfeasor in settlement of his claims for noneconomic loss. The majority explained its reasoning as follows at 486:
"Such a result does not seem equitable. However, in Pelkey v Elsea Realty & Investment Co, 394 Mich 485; 232 NW2d 154 (1975), the Supreme Court allowed the defendant to be subrogated for plaintiffs pain and suffering, a noneconomic loss. We are bound by the Pelkey decision.”
Judge T. M. Burns’ concurring opinion agreed that Pelkey was controlling. Nevertheless, he admonished at 486 that:
"An employer or a compensation carrier should not be allowed to seek reimbursement out of a recovery by the employee against a third-party tortfeasor where the employer or carrier did not pay compensation for the injury which the recovery represents. Compensation carriers do not pay benefits for noneconomic loss.”
Judge Burns’ concern in this regard was justified in that the compensation carrier’s right to indemnity has traditionally been interpreted as a statutorily created right of subrogation. Bay State Milling Co v Izak, 310 Mich 601, 604; 17 NW2d 769 (1945), and authorities cited therein. "[SJubrogation”, according to 83 CJS, Subrogation, § 8, p 600, "will be applied whenever a person not acting voluntarily, but under some compulsion, pays a debt or discharges an obligation for which another is primarily liable and which in equity and good conscience ought to be discharged by the latter”. (Emphasis added.)
Of course, such a right of indemnification and subrogation created no difficulties when legislative intent was clearly to permit actions against third parties precisely in order that the compensation carrier might be reimbursed. Gamble v American Asbestos Products Co, 381 Mich 105, 112; 159 NW2d 839 (1968), Petrosian v Frizell, 25 Mich App 141, 145; 181 NW2d 10 (1970), Arnett v General Motors Corp, 22 Mich App 658; 177 NW2d 704 (1970). For this reason, it was also considered a necessity, in order to avert the potential for unconscionable subversion of the statutory scheme, that the carrier be allowed to reach any recovery of the injured employee, regardless of its denomination. Quimby, supra.
The legislative intent is no longer clear. Although the Wrobel Court gave the matter little attention, enactment of the no-fault statute and the consequent elimination of tort liability for economic loss indicates a legislative determination that neither the victim nor his insurer shall recover such damages from the tortfeasor. At the same time it expressly reserved liability for noneconomic loss.
In a more recent case the panel of Judges Riley, author, T. M. Burns and Cynar considered the identical question in Reliance Ins Co v Messina Trucking, Inc, 83 Mich App 159; 268 NW2d 328 (1978). In a unanimous decision, the Court relied upon passage of the no-fault act, supra, subsequent to the Pelkey decision, in holding that an insurer is not entitled to recover benefits paid from the employee’s recovery for noneconomic loss. The Reliance Court took note of the Wrobel opinion, however, it found the reasoning of Murray v Ferris, 74 Mich App 91; 253 NW2d 365 (1977) more convincing in holding MCL 418.827(5); MSA 17.237(827)(5) "unconstitutional as applied to employees injured in automobile accidents where tort recovery is limited by MCL 500.3135; MSA 24.13135”. 83 Mich App at 165. The Murray Court had held MCL 500.3116; MSA 24.13116, which allowed the no-fault insurer to recoup his damages from the injured insured’s noneconomic loss recovery against the tortfeasor, to be unconstitutional as a violation of equal protection. It noted at 95 that "[t]he function of recovery in tort is to make the victim whole”. The Court found that since persons who do not suffer noneconomic losses are fully recompensed, whereas persons who suffer such losses, when forced to indemnify their insurer are not, the statutory scheme in this respect constituted arbitrary discrimination, contrary to Const 1963, art 1, §§ 2 and 17.
We do not find it necessary to question the constitutionality of MCL 418.827(5), in order to adopt the result reached in Reliance. As noted above, the Supreme Court in Pelkey felt it necessary to allow the workmen’s compensation insurer subrogation rights, even with respect to damages denominated "noneconomic”, in order to avoid the possibility of double recovery. The Supreme Court’s concern in this regard was even more clearly illuminated in Quimby, supra, where to have held otherwise would have been grossly unfair to the insurer. Since enactment of no-fault, however, it can no longer be said that the carrier is "discharging the obligation of another”. The legislative repudiation of tort liability in this instance must be seen as a restriction upon the compensation carrier’s standing under MCL 418.827(1).
As noted above, the worker’s compensation act confers upon the injured employee an immediate right to recover economic damages from the employer’s insurer. Under the no-fault act, specifically MCL 500.3135, the employee is not allowed to seek a second recovery for these damages from the tortfeasor: "tort liability [for economic loss] is abolished”, MCL 500.3135(2). Appellant State Accident Fund’s right to intervene in plaintiff’s action arises only as a "party in interest” under MCL 418.827(1). In order for the insurer’s right of subrogation to arise under this statute, "the injury for which compensation is payable” must be one "creating a legal liability” in another. The plaintiff received compensation for economic injury, and by contrast to the state of the law when Pelkey was decided by the Supreme Court, the tortfeasor is no longer liable for ordinary economic injuries. Therefore, under MCL 418.827(1), appellant State Accident Fund is no longer a party in interest, has not satisfied the debt of another, and has no standing to intervene under GCR 1963, 209.1(1).
Although MCL 418.827(5) appears to contradict this interpretation, it is troublesome primarily because it preceded the no-fault insurance legislation. Unlike MCL 418.827(1), it does not confer standing. It is a declaration of priorities which reflects legislative concern over double recovery by the plaintiff to the exclusion of the insurer. Read together, subsections (1) and (5) obviously presuppose that the employee’s recovery in tort will include the amounts received by him from the insurer, thereby, under standard insurance principles, conferring a right of subrogation upon the insurer. Where the insurer lacks standing under subsection (1), however, the declaration of priorities contained in sub-section (5) must not apply. Although the resulting interpretation requires a tortured reading of subsection (5), we find this to be an unavoidable result of the subsequent enactment of the no-fault insurance scheme with its radical departure from the previously existing tort law. The fundamental assumption underlying the enactment of subsection (5) is no longer operative.
As suggested earlier in Wrobel and Reliance, to reach any other result under these circumstances would be to deny the victim a complete recovery. As the Court itself recognized, the result reached in Wrobel was inequitable. We find it to have been unnecessary as well. Clearly the no-fault insurance scheme was not intended to prevent complete recovery on behalf of the victim. It merely separated the plaintiff’s recovery into two distinct classes, one recoverable from the tortfeasor, the other recoverable from the injured’s insurer alone. It is true that the employee may seek to claim a second recovery for economic damages from his automobile insurer. According to the general view, such a recovery would not be subject to the compensation carrier’s claims for reimbursement, as it is considered a personal contract right, bargained for by the victim. 101 CJS, Workmen’s Compensation, § 1045, p 628. See also Meyers v Meyers Oil Co, 88 SD 166; 216 NW2d 820 (1975). The fact that some plaintiffs may thus achieve a disfavored double recovery by carrying personal automobile insurance coverage, we consider to be a problem for the Legislature to consider.
Under the facts in this case we rule that the appellant must be denied standing to intervene.
Affirmed. Costs to appellees.
P. J. Marutiak, J., concurred.
As noted above, the plaintiff seeks only noneconomic damages in the instant complaint. Should his recovery exceed his noneconomic damages, as reasonably calculated, the appellant may then intervene. | [
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Per Curiam.
Plaintiffs, three landowners in the City of Niles, brought this suit in October of 1975 to enjoin the defendants, City of Niles and Wolverine Sign Works, from discharging surface waters upon their land. A temporary injunction was denied and the case set for trial.
Before trial, plaintiffs and the city reached an agreement allowing the city to be dismissed as a defendant. The city agreed to divert the flow of certain storm sewers away from plaintiffs’ land.
The dispute continued between plaintiffs and Wolverine Sign Works. Wolverine owns land across a public street and higher than plaintiffs’ land. Wolverine is in the process of developing a subdivision, Westfield Farms No. 2, on property which was formerly farmland. The process of development has included grading the property, removal of substantially all of the vegetation, removal of a concrete collection box for water at the base of the drainpipe, and the paving of a road, Kensington. This development occurred after the suit was begun and after the temporary injunction was denied.
A ravine exists on plaintiffs’ property. This ravine has acted as the natural drainage point of the land now owned by Wolverine for some time. A 20-inch pipe carries the water collecting at the corner of Wolverine’s land under Wells Street and dumps it into the ravine on plaintiffs’ property. Since the development of Wolverine’s property began, there has been extensive and damaging erosion in the ravine. Although the pipe has emptied into the ravine for some time, the erosion damage is of fairly recent vintage and accelerating.
There is and has been no real dispute about the rules of law applicable to this suit. The owner of the lower or servient estate must accept surface water from the upper or dominant estate in its natural flow. By the same token, the owner of the dominant estate may not, by changing conditions on his land, put a greater burden on the servient estate by increasing and concentrating the volume and velocity of the surface water. Bennett v County of Eaton, 340 Mich 330; 65 NW2d 794 (1954), Emerald Valley Land Development Co v Diefenthaler, 35 Mich App 346; 192 NW2d 673 (1971), lv den, 386 Mich 770 (1971), and cases collected therein.
The trial court heard the testimony, including expert testimony, of both parties and issued a lengthy opinion. In her factual conclusion she stated:
"* * * that under the past circumstances (prior to improvements) the erosive effect of Defendant’s water had stabilized and there was no erosion; that the present existing conditions increased the flow and velocity of Defendant’s water on Plaintiffs’ land causing erosion and causing plaintiffs’ ravine to be in a present unstable condition; that the future effect of Defendant’s planned development will increase the flow and velocity of Defendant’s water on Plaintiffs’ land even more and more erosion will result; that the problems arose because of poor subdivision drainage design which allows too much of Defendant’s water too fast to go upon Plaintiffs’ land, and that proper design or present corrective measures could stabilize Plaintiffs’ present erosive conditions.”
In the judgment which followed, defendant was given 60 days in which to implement a plan to stabilize the erosive condition on plaintiffs’ land and, if such a plan was not carried out, defendant was to be enjoined from increasing the volume or velocity of its water flowing into the ravine. Defendant was given reasonable access to plaintiffs’ land to carry out the plan. Plaintiffs were allowed to seek monetary damages for any further erosion incurred subsequent to the date of the judgment and the time of implementation of the plan or injunction. Wolverine was not enjoined from carrying out its development or completing the subdivision. It was merely stopped from destroying plaintiffs’ land in the process and bearing the cost of any plan which was necessary to achieve that result.
We review this type of case de novo, but give great consideration to the findings of the trial court. Bennett v County of Eaton, supra. The trial court’s grant of relief was fully justified in this case. The record, common sense, and the law fully support her ruling. Changing the grade of the land, paving a road so that it acts as a flume directing the water into the ravine, and removing the vegetation would all tend to get more water to the ravine faster and with greater force. This is exactly what cannot be done. Wolverine had a duty to place no greater burden on the servient estate than would occur naturally.
Affirmed. Costs to appellee. | [
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Allen, J.
On October 31, 1974, defendant was convicted by a jury in Barry County Circuit Court of possession of marijuana with intent to deliver, contrary to MCL 335.341(1)(c); MSA 18.1070(41)(l)(c). The case was subsequently appealed to this Court, People v Jerry Johnson, 68 Mich App 697; 243 NW2d 715 (1976), and re manded for a hearing pursuant to People v Robinson, 391 Mich 555; 218 NW2d 1 (1974). The record reveals that the prosecution failed to produce a res gestae witness whose testimony could have been relevant to important issues disputed at trial.
Upon remand, the missing res gestae witness was located and a hearing was held for the purpose of taking his testimony on September 3, 1976. After the hearing, the trial court ruled that the missing witness’s testimony was merely cumulative and, hence, defendant was not entitled to a new trial. Defendant appeals, contending that the trial court erred in ruling that the testimony of the missing witness was cumulative.
We agree with defendant. At the hearing upon remand the formerly missing res gestae witness invoked the Fifth Amendment on four occasions. On key questions his testimony was evasive. The transcript is illustrative:
"Q. [Mr. Wickett, defense counsel] It’s very simple. Question: You were there Sunday. Did you see that bag of marijuana there at that time?
"A. Mr. Wickett, I already asked you once. I said I really would have to advise my attorney over this case, because it’s getting involved.
"THE COURT: Mr. Magnum, I don’t think that your answer to that question would incriminate you, so I direct you to answer.
"THE WITNESS: Well, I think I have my own rights too, and to an attorney don’t I?”
"Q. Do you know how much that cost?
"A. Well —
"THE COURT: Again, your answer to this possibly could' incriminate, so I don’t know, so I instruct you again that you may not answer.
"THE WITNESS: I ain’t going to answer that.
"Q. (By Charles Wickett) Did you contribute any money towards its purchase? Again you should ask the Judge.
"THE COURT: Again, your answer might tend to incriminate you so have that in mind before you answer.
"THE WITNESS: I am not answering no more questions.”
We are convinced — and strongly so — that had the jury heard at trial the same testimony as the witness gave at the Robinson hearing, had the jury viewed and heard the witness’s evasiveness on the key question of the transaction forming the basis for the conviction, had defense counsel been able to impeach the witness for a prior conviction of receiving stolen property, the jury verdict may well have been different. Because the witness was not called by the prosecution the jury did not hear the testimony. In effect, the defendant was denied a fair trial. This being so, and but for People v Giacalone, 399 Mich 642, 645; 250 NW2d 492 (1977), the proper procedure in this case would be a new trial.
Does Giacalone preclude a new trial? The people argue that the answer is "yes” since Giacalone holds that where either the prosecution or defense knows a witness will assert his Fifth Amendment rights it is error to call such witness.
"The American Bar Association standards relating to the prosecution and defense functions provide that it is unprofessional conduct for a prosecutor or a lawyer representing a defendant
" — 'knowingly and for the purpose of bringing inadmissible matter to the attention of the judge or jury to offer inadmissible evidence’;
" — 'to call a witness who he knows will claim a valid privilege not to testify, for the purpose of impressing upon the jury the fact of the claim of privilege.’ ” Giacalone, supra, at 645.
We are not persuaded that Giacalone goes so far. There, the prosecutor called as a witness an accomplice, whom the prosecutor knew in advance would take the Fifth. In that case, assertion of the Fifth Amendment rights was highly prejudicial to the defendant. Here, the situation is reversed since here the witness’s resort to remaining silent, if anything, helps the defendant and prejudices the plaintiff. For these reasons, Giacalone is clearly distinguishable. In our initial opinion in this case, People v Jerry Johnson, 68 Mich App 697; 243 NW2d 715 (1976), we held that the failure to call the missing res gestae witness was sufficient error to mandate remand. Now, on remand, it is quite clear to us that the witness’s testimony may well lead to a different verdict. This being so, the testimony is clearly more than cumulative. Accordingly, we reverse the trial court and remand for a new trial.
Reversed and remanded for a new trial.
R. B. Burns, J., concurred.
At the Robinson hearing the witness indicated that he had a prior conviction for receiving stolen property.
On April 19, 1977, execution of defendant’s sentence to prison for 18 months to 4 years was stayed by the trial court pending the outcome of the present appeal. | [
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Allen, P.J.
Where the wife in a pro confesso divorce proceeding dies 29 days after the date of the proceedings but before a formal judgment of divorce has been entered, may a written nunc pro tunc judgment of divorce be entered? On June 17, 1976, the trial court held "yes” and defendant-husband appeals of right.
Phyllis and Harry Smith, defendant, were married in April, 1945, and lived together until February, 1974, when they separated and Phyllis filed a complaint for divorce. No children were born of the marriage. An answer and counter-complaint were filed by the defendant in April, 1974. On March 30, 1976, the matter came on for hearing, the parties having reached an agreement as to the division of property. The property settlement agreement was stated in full on the record, defendant withdrew his pleadings, and the case proceeded pro confesso. At the conclusion of the wife’s testimony the following occurred:
"MR. TOBY [Plaintiff’s Attorney]: Does the Court have any questions?
"THE COURT: I have no questions. You may step down. Judgment is granted. Property disposed of as set forth on the record. There will be no alimony. Insert the usual dower and insurance provisions.
"MR. TOBY: One further point, Your Honor. I would ask this judgment, even though written judgment will be prepared after this, be given immediate effect?
"MR. KENNEDY [Defendant’s Attorney]: I have no objection.
"THE COURT: I have no objection.
"MR. TOBY: Thank you.”
Phyllis Smith died April 28, 1976, just 29 days following the court proceedings but before a written judgment of divorce had been entered. Upon motion of Dorothy Saunders, sister of the decedent and special administratrix of Phyllis Smith’s estate, default judgment of divorce nunc pro tunc was entered June 17, 1976. Under the property settlement agreement the wife was awarded some $6,000 in savings bonds, some of which were in defendant’s name alone, $13,465 in the defendant’s stock savings program, $8,000 in Brunswick stock and $10,000 in cash, payable by defendant within 90 days from the date of the pro confesso hearing.
We find that the instant appeal is controlled by Tiedman v Tiedman, 400 Mich 571, 577; 255 NW2d 632 (1977). In that case, as here, the attorneys stated on the record the terms of the property settlement, the parties acknowledged the accuracy of the terms stated and the wife then testified. Unlike the instant case, the trial court then stated " 'I’ll approve the property settlement as stated and upon presentation I will sign the judgment of divorce’ ”. 400 Mich at 573. Six days later, before a judgment of divorce had been presented, the husband died in a fire and the wife moved to dismiss the complaint for divorce for the reason that she had become a widow. The trial court denied the motion and, as here, entered a judgment of divorce nunc pro tunc to the date of the hearing. The Court of Appeals affirmed but the Supreme Court reversed, saying that: "Generally * * * until reduced to writing and signed”, a judgment is not effective and the parties remain married. Id., at 576. To this general rule, the Court then added a full paragraph exception.
"We do not wish to be understood as saying that a judgment of divorce may not be made effective immediately by a judge’s oral statement. If the judge were to read into the record all the terms of a judgment of divorce, and declare that such statement is to be given immediate effect as a judgment of divorce without further action or signing of a written judgment, such an oral declaration might be as fully effective as a written judgment of divorce.” 400 Mich at 577. (Emphasis supplied.)
The Tiedman Court also stated that an exception to the general rule might occur where the parties have in good faith "acted on the strength of a judge’s oral statement that a divorce is or will be granted”. 400 Mich at 575, n 1.
The instant appeal falls within the full paragraph exception quoted above. There can be no doubt but that the trial court and the respective attorneys intended that the divorce "be given immediate effect”. Based on the record it appears with certainty that the parties were divorced March 30, 1976.
Affirmed, costs to plaintiff.
The written opinion of the trial court granting the motion stated: "On the 30th day of March 1976, testimony was taken that satisfied me that the marriage of these parties had broken down to the extent that they could no longer continue their marriage relationship. Attorneys for both parties agreed with the Court that the marriage should cease as of that date and that the written Judgment would so be prepared. Under these circumstances a Judgment will be prepared granting the divorce as of March 30,1976.” (Emphasis supplied.)
The so-called reliance exception to Tiedman is discussed in an opinion of this Court, released concurrently with this opinion in Ensman v Ensman, 86 Mich App 91; 272 NW2d 176 (1978). | [
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M. E. Clements, J.
Defendant Bursar Realty Corporation appeals as of right from an October 13, 1977, order of Oakland County Circuit Court Judge Alice L. Gilbert, denying defendant Bursar Realty’s motion to set aside a default judgment entered on September 8, 1977.
Plaintiffs filed complaints in October, 1974 against defendants, alleging that in 1972, defendants had sold plaintiffs limited partnership interests in Lone Pine Associates, a partnership intending to construct an office building, in violation of the Michigan blue sky law, MCL 451.801 et seq.; MSA 19.776(401) et seq.
Defendant Bursar Realty Corporation responded with a motion for accelerated judgment. Bursar claimed that plaintiffs’ action was barred by the applicable statute of limitations, MCL 451.810(e); MSA 19.776(410)(e).
A hearing on the defendant’s motion was held before Oakland County Circuit Court Judge William R. Beasley, Judge Gilbert’s predecessor, in January, 1975. The parties disputed the date on which the partnership agreement was actually signed and executed. Judge Beasley suggested that the matter be deferred pending discovery. Judge Beasley also indicated that the defendant, Bursar Realty, could renew its motion for accelerated judgment at a later date. No formal order denying the defendant’s motion was ever filed.
Plaintiffs filed a first amended complaint in January, 1975 and a second amended complaint in May, 1975. The effect of the amended complaints was to avoid the statute of limitations problem. Defendant Bursar Realty did not answer the amended complaints.
On November 19, 1976, plaintiffs moved for entry of a default judgment against defendant Bursar Realty Corporation. The court granted the motion on September 8, 1977, and awarded each plaintiff the $78,500 plus interest, costs, and attorney fees that each plaintiff had sought to recover from defendant Bursar Realty Corporation.
Defendant Bursar Realty Corporation brought a motion to set aside the default judgment or, in the alternative, to amend the amount of damages. Defendant argued that because plaintiffs had entered into the agreement with Lone Pine Associates to obtain tax losses, the amount of their loss was less than the $78,500 plaintiffs had invested in Lone Pine Associates. The trial court rejected this argument.
I. Was the default judgment erroneously entered?
According to GCR 1963, 520.1, a default may be entered when a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend "as provided by these rules”.
GCR 1963, 108.1 requires a defendant to file his answer within 20 days after personal service of the summons and a copy of the complaint. GCR 1963, 118.1 provides that an amended pleading supersedes the former pleading. Therefore, as the defendant Bursar Realty failed to answer the plaintiffs’ second amended complaint within the time allotted, entry of a default judgment was proper.
The defendant argues that its motion for accel erated judgment based on the statute of limitations defense had never been denied, therefore, according to GCR 1963, 108.3(1), the time for filing an answer was extended until 20 days after denial of the motion.
It is true that no formal order denying the defendant’s motion was ever entered, but the trial court implicitly denied the defendant’s motion at the conclusion of the January 22, 1975, hearing.
The defendant relies on Hosner v Brown, 40 Mich App 515; 199 NW2d 295 (1972), lv den 388 Mich 758 (1972), which held that the time for an answer does not begin to run until after the defendant’s order is signed and filed by the trial court, and that the subsequent default judgment based on failure to answer must be set aside as defective. However, Hosner can be distinguished on its facts. In Hosner, the defendant’s motion to dismiss was heard on April 19, 1968, and denied orally. On April 30, 1968, the plaintiff submitted an order denying the defendant’s motion, but that order was never signed. On May 15, 1968, the plaintiff entered a default judgment, because the defendant had failed to answer the original complaint within 20 days of entry of denial of its motion.
In the case at bar, however, the trial judge orally denied the defendant’s motion on January 22, 1975. The plaintiffs filed their second amended complaint on May 22, 1975. This amended complaint superseded the original complaint. Bursar Realty did not answer the second amended complaint. The plaintiffs moved for a default judgment against Bursar Realty in November of 1976, and the actual default was entered in September, 1977. The record contains no reason for the defendant’s failure to take action on the amended pleading during that protracted time period.
II. Did the trial court err in refusing to set aside the default judgment?
The decision as to whether a default judgment should be set aside is discretionary, and will not be reversed on appeal unless a clear abuse of discretion is shown. Milinsky v Schmidt, Ellis & Associates, Inc, 48 Mich App 192, 197; 210 NW2d 367 (1973). The established policy of the courts in this state is against setting aside defaults which are regularly entered. Zinn v Fischer Distributing Co, 27 Mich App 591, 593; 183 NW2d 859 (1970), lv den 384 Mich 796 (1971).
GCR 1963, 520.4 provides that a default judgment may be set aside "only if good cause is shown and an affidavit of facts showing a meritorious defense is filed”. The "good cause” requirement was explained in Harrison v VMC Building Corp, 71 Mich App 458, 460; 248 NW2d 584 (1976):
"Commenting on this requirement, the authors in 2 Honigman & Hawkins, Michigan Court Rules Annotated (2d ed), Comments, p 662, state:
" 'Good cause within the meaning of this provision would seem to include (1) a substantial defect or irregularity in the proceedings upon which the default was based, (2) a reasonable excuse for failure to comply with the requirements which created the default, or (3) some other reason showing that manifest injustice would result from permitting the default to stand.’ ”
The defendant herein has failed to show the requisite good cause. Furthermore, the defendant’s statute of limitations defense is not applicable to the second amended complaint.
The order denying the motion to set aside the default is hereby affirmed.
III. Did the trial court err in its award of damages?
The Michigan blue sky act, MCL 451.801 et seq.; MSA 19.776(401) et seq., provides in § 410 that a person violating the statute:
" * * * Is liable to the person buying the security or commodity contract from him, who may sue either at law or in equity to recover the consideration paid for the security or commodity contract, together with interest at 6% per year from the date of payment, costs and reasonable attorneys’ fees, less the amount of any income received on the security or commodity contract, upon the tender of the security or commodity contract, or for damages if he no longer owns the security or commodity contract. Damages are the amount that would be recoverable upon a tender less the value of the security or commodity contract when the buyer disposed of it and interest at 6% per year from the date of disposition.”
The defendant does not contest the amount of money the plaintiffs invested in Lone Pine Associates. Instead, the defendant presents the novel argument, for which no authority is cited, that the valuation of the plaintiffs’ investment should depend on the tax benefits which they may have received. We reject that argument. Tax consequences as a result of the purchase do not enter into the computation of damages under the statute.
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D. E. Holbrook, P.J.
Plaintiffs appeal the trial court’s order denying a motion to set aside a stipulation and order of dismissal as to defendant Peoples Community Hospital Authority. Plaintiffs’ original complaint in this medical malpractice action was filed August 15, 1968. It is alleged that Peoples Hospital and the individual defendants negligently administered excessive quantities of oxygen to the minor plaintiff postnatally for a period of approximately one month following his premature birth October 11, 1967, resulting in a condition diagnosed as retrolental fibroplasia which rendered said minor plaintiff totally and permanently blind.
On December 8, 1968, defendant Peoples Hospital filed a motion for dismissal, improperly denominated a motion for summary judgment, alleging governmental immunity. This motion was never acted upon, however, on March 7, 1969, a stipulation of dismissal as to defendant Peoples Hospital only, signed by all parties, was filed. In pursuance thereof, the circuit court filed an order dismissing the action as to Peoples Hospital, with prejudice.
Early in 1973, plaintiffs filed a motion to set aside the above stipulation and to add Peoples Hospital as a party defendant. Plaintiffs alleged that "there was no inquiry at the time of the Order of Dismissal as to the best interests of the Plaintiff minor”. This motion was granted, only to be set aside for lack of notice to defendant Peoples and by entry of accelerated judgment based upon the stipulation and order of dismissal. As the order setting aside plaintiffs’ motion was without prejudice, plaintiffs filed an identical motion in December of 1973. On January 31, 1975, the trial judge filed an order denying plaintiffs’ motion.
Plaintiffs’ attempted appeal of this denial in February of 1975 was not allowed as the trial court’s decision was not a final judgment. Plaintiffs thereupon renewed their motion to set aside the stipulation and dismissal of Peoples Hospital on April 28, 1977. This motion was denied on July 7, 1977, rendering it a final judgment as to Peoples Hospital, which the plaintiffs now appeal.
The plaintiffs’ tenacity in seeking to have the 1969 stipulation and resulting dismissal of Peoples Hospital set aside stems from several more recent Michigan Supreme Court decisions which have considerably narrowed the doctrine of governmental immunity. As noted in defendant-appellee’s brief:
"The motion [for summary judgment filed in 1969] asked for a judgment of dismissal in favor of Peoples and against Pleznac for the reason that at all times material thereto, Peoples, pursuant to statutes of the State of Michigan and specific decisions of the Michigan Supreme Court, had been determined to be a State agency, and thereby entitled to avail itself of the governmental immunity defense.”
"[Apparently counsel [for each of the parties] were of the opinion that the Motion for Summary Judgment was well-founded, and a Stipulation of Dismissal * * * was executed.”
"[This stipulation was] a stipulation and an order wherein all parties to the lawsuit represented by counsel agreed that as a matter of law Peoples could not be sued for the injuries sustained by the plaintiff”. (Emphasis added.)
Plaintiffs seek to set aside the stipulation and order of dismissal on the claim that the subsequent abrogation of governmental immunity retroactively rendered Peoples Hospital amenable to suit.
On appeal, plaintiffs suggest that the line of cases requiring that the trial court determine whether a proposed compromise or settlement is in the best interests of a minor plaintiff, should be extended to include the instant stipulation to dismiss. See Dudex v Sterling Brick Co, 237 Mich 470; 212 NW 92 (1927), Palazzolo v Judge of Superior Court of Grand Rapids, 234 Mich 547, 549; 208 NW 677 (1926), and Centala v Navrude, 30 Mich App 30, 32-33; 186 NW2d 35 (1971). In such case, the court’s dismissal in reliance upon the stipulation but without a hearing to determine whether it is in the best interests of the minor would be error. Centala, supra, Centala v Navrude, 45 Mich App 282, 284-285; 206 NW2d 544 (1973), and Moebius v McCracken, 261 Mich 409, 414; 246 NW 163 (1933).
Defendant’s brief cites 3 Callaghan’s Michigan Pleading & Practice (2d ed), § 32.33, pp 93-94, to the effect that:
"Where there is a stipulation to dismiss, followed by an order dismissing the cause pursuant to the stipulation, the disposition of the case is final and binding in the absence of demonstrative fraud of a serious character in obtaining the stipulation.” (Footnotes omitted.)
Neither the line of cases cited by plaintiffs, nor this general statement of the law put forth by the defendant, is determinative in the instant case.
Mr. Justice Cooley correctly stated the applicable law a century ago in Detroit v Beckman, 34 Mich 125, 126 (1876): "[T]he admission of a rule of law could not obligate the court to accept and act upon it”. In a unanimous decision, the Michigan Supreme Court recently reaffirmed Beckman in Magreta v Ambassador Steel Co, 378 Mich 689, 705; 148 NW2d 767 (1967). According to the Court: "The stipulations of the parties before the referee, reflecting as they do misinterpretation of the ap plicable law, do not preclude our disposition of this controversy in accordance with the law as we construe it”. See also Anno: Stipulation of Parties as to the Law, 92 ALR 663, 674-675, § m.
The passages excerpted from defendant’s brief clearly indicate that the parties entered into the stipulation agreement as a result of their (reasonable) misapprehension of the efficacy of Peoples Hospital’s cloak of governmental immunity. The authorities cited above clearly indicate that such a "misinterpretation of the applicable law” need not bind the court.
Even if we were to construe the stipulation of the parties to have been merely the result of a mistake of fact, it would not necessarily have been binding in this case. The minor plaintiffs next friend did not have the power to surrender the minor’s rights against the defendant. 83 CJS, Stipulations, § 15, pp 36-37:
"While it has been broadly stated that no person has any authority to stipulate in behalf of a minor, and that infant defendants are not bound by a stipulation as to facts, the general rule is that the next friend or guardian ad litem of an infant may give a binding assent to such arrangements as will facilitate the determination of the case in which the rights of the infant are involved, this rule being subject to the limitation that the stipulation be approved and ratified by the court, on a showing that it is for the interest, or, at least, not prejudicial to the interest, of the infant. However, a guardian ad litem or next friend cannot, in any event, by stipulations, surrender substantial rights of the infant; and stipulations and admissions of fact which are adverse and disadvantageous to the interests of infant defendants are not authoritative with respect to the determination of their rights.” (Footnotes omitted, emphasis added.)
See also 13 Callaghan’s Michigan Civil Jurispru dence (2d ed), § 99, p 457 and 3 Callaghan’s Michigan Pleading & Practice (2d ed), §§ 28.17, 28.18, 32.35, pp 19-21, 97-98.
In light of the recent Michigan Supreme Court decisions substantially abrogating the doctrine of governmental immunity during the time period in question, including Maki v East Tawas, 385 Mich 151; 188 NW2d 593 (1971), and Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976), a substantial likelihood exists that the stipulation served to foreclose significant rights of the plaintiff. Ordinarily such a stipulation and dismissal under GCR 1963, 504 would be binding upon the plaintiff. Where, as here, the next friend plaintiff lacked the capacity to enter such a binding agreement, however, the court, with its traditional concern for the protection of the rights of minors, may look beyond the stipulation to the substance of the parties’ agreement: where that agreement purports to decide the law of the case it is clearly not binding on the court. (See Beckman, supra, and Magreta, supra.)
Under the unique facts of this case, it was a clear abuse of the trial court’s discretion to allow the minor plaintiff’s next friend to stipulate a matter of law which operated to foreclose substantive rights of the minor. Such a stipulation clearly exceeded the next friend’s authority and is of no binding force or effect.
Reversed and remanded for actions consistent with this opinion. Costs to plaintiffs.
This motion was properly termed a motion for accelerated judgment. See GCR 1963, 116, 117, Drouillard v City of Roseville, 9 Mich App 239; 156 NW2d 628 (1967), Pompey v General Motors Corp, 385 Mich 537; 189 NW2d 243 (1971).
On November 23, 1976, the Michigan Supreme Court in Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976), held that any claim arising prior to August 1, 1970, effective date of the enactment of the first constitutional governmental immunity act, must be governed by common-law principles of government tort liability. The Court then abolished common-law immunity with respect to all pending and future case challenging this defense.
Courts are charged with the protection of rights of infants and incompetents and should always give due regard to those rights. Centala v Navrude, 30 Mich App 30, 32-33; 186 NW2d 35 (1971), cites 3 Callaghan’s Michigan Pleading & Practice, § 32.35, p 97. | [
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Per Curiam.
Defendant appeals as of right from her February 1, 1977, conviction by a Monroe County jury of buying, receiving or aiding in the concealment of stolen property worth over $100, knowing the same to have been stolen. MCL 750.535; MSA 28.803. On March 10, 1977, she was sentenced to a term of two to five years imprisonment.
Defendant was a passenger in a 1971 Lincoln driven by Arthur Thomas when it was stopped for speeding on June 11, 1976. After defendant produced a registration slip bearing her name, the officer ran a check on the car’s license plates. This revealed that the plates were registered to Arthur Thomas for a 1968 Ford Mustang. Other discrepancies in the registration led the officer to run a vehicle identification number check on the car. These discrepancies included the absence of a validation stamp, extraneous letters in the identification number and an imprecise description of the make of the car. Furthermore, it was pointed out at trial that the fees listed on the registration were too high and that it was incorrectly marked "tax exempt”. The vehicle identification number check indicated that the car was reported stolen on June 1, 1976. On the basis of this evidence, defendant was arrested.
At trial the owner of the car, Joseph Brooks, testified that the car was stolen from the parking lot of an Ann Arbor shopping center on June 1, 1976. He also testified that when the car was returned to him he noted that his key no longer fit the ignition.
The prosecution also called Joseph Giljum, a used car sales manager, to testify. He appraised the Lincoln at $3400 wholesale and $4200 retail. He also stated that there was a lot of flexibility in car prices and that $1500 was not much of a variance for a car such as that involved herein. In response to a prosecution question as to whether $1500 was a fair market price for the car, he replied that it was "more than fair, it’s very cheap”.
Defendant took the stand in her own defense and gave the same explanation that was given to the arresting officers. She testified that she and Mr. Thomas saw the automobile in a Highland Park parking lot with a "For Sale” sign on it. They stopped and talked to the purported owner, Rufus Williams. On June 4, 1976, she paid $1500 for the car. She testified that the transfer took place in the Secretary of State’s Office in Highland Park. There, she claimed to have paid Williams the money, signed some papers and received the registration and a handwritten receipt. She also testified that she was told by Williams that the title would come in the mail. She added that after the purchase Williams removed the license plates from the car; so she took a plate from Thomas’s car and placed it on the Lincoln. The whereabouts of Rufus Williams is unknown, as defendant never obtained his address or phone number.
Defendant claims that the trial court erred in sustaining prosecution objections to the introduction of evidence of defendant’s conversations with the alleged seller of the car. These conversations, which apparently involved price negotiations and matters relating to the transfer of the automobile, were excluded on the basis of hearsay. Each of these objections followed a statement by defendant as to what Williams had allegedly told her.
Hearsay is testimony of an out-of-court statement used to prove the truth of the matters asserted therein. People v Hallaway, 389 Mich 265, 275; 205 NW2d 451 (1973) (opinion of T. E. Brennan, J.). See also MRE 801(c). On their face, statements of what another person said at some prior point in time would appear to be hearsay, absent any applicable exception to the hearsay rule. The crucial question, of course, is the purpose for which the statements are offered. Defendant contends that the statements here were offered to show her lack of knowledge of whether the car was stolen. She contends that evidence of price negotiations would show the reason for the car’s low price, that evidence of her conversations with Williams would explain why she was ignorant of the discrepancies in the registration and that evidence of her conversations with Williams after the transaction would shed light on the matter of the license plates.
We agree with defendant’s contention that evidence of statements made by others may have some bearing upon the question of knowledge or lack thereof. Obviously, one’s knowledge is affected by the statements of others. In such situations the utterance is used to show the effect on the hearer, not to prove its truth. McCormick, Evidence (2d ed), § 249, pp 589-590, People v Cameron, 52 Mich App 463, 466; 217 NW2d 401 (1974). It was thus error for the trial judge to exclude these statements.
Defendant further contends that this error violated her right to present a defense, citing Chambers v Mississippi, 410 US 284; 93 S Ct 1038; 35 L Ed 2d 297 (1973). That case involved a confession by another which was excluded on the basis of hearsay. There, the excluded evidence, if believed, would have provided a complete defense to the crime. Such is not the case here. Even accepting as true defendant’s allegations as to the substance of the excluded testimony, there was ample evidence from which the jury could infer the requisite guilty knowledge.
Moreover, this Court fails to see what could have been added by defendant which would not have been cumulative of the evidence placed before the jury. Defendant explained that her companion’s license plates had been put on the car because Williams had removed his. Her ignorance of the false validation or the registration was explained by her failing to accompany Williams to the counter in the crowded Secretary of State’s office. Any inference to be drawn from the prosecution’s expert witness’s characterization of the purchase price as "cheap” were substantially rebutted by his own testimony, indicating that a $1500 variance from $3400 wholesale price was not that much. Therefore, on the basis of the above, we hold that the exclusion of the statements constituted harmless error and that defendant’s right to bring a defense was not violated.
Defendant also contends that certain portions of the jury instructions constituted reversible error. However, no objections were made to any of the instructions. Thus, this issue was not preserved for review. GCR 1963, 516.2; People v Sherman Hall, 77 Mich App 456, 462; 258 NW2d 517 (1977).
There is an exception to the "no objection, no review” rule when a miscarriage of justice would otherwise result. Hall, supra, 462. However such is not the case here. Contrary to defendant’s contention, the trial judge has no duty to sua sponte instruct the jury that when a case is based on circumstantial evidence, the state must refute every theory consistent with innocence. People v Blackwell, 61 Mich App 236, 243; 232 NW2d 368 (1975). Furthermore, we agree that such an instruction does not accurately reflect the state of the law. See People v Edgar, 75 Mich App 467, 472-474; 255 NW2d 648 (1977). Nor do we find authority in support of defendant’s contention that the instructions for this offense must reflect a theory of either "buying”, "receiving” or "aiding in concealment”. Assuming arguendo that such a choice must be made, the instruction on "aiding in concealment” was proper, since the information listed the date of the arrest, not the date of the alleged purchase, as the date of the offense. Finally, the trial judge’s review of the evidence was not so' biased as to warrant reversal. Although it is unwise to summarize some facts as "alleged”, while noting others in more absolute terms, in this instance any error was cured by other instructions indicating that the jury should disregard anything said by the trial judge that could be construed as an opinion.
Affirmed.
She tried to testify as follows:
"Q [Mr. Nordstrom, defense attorney] And did he indicate a price to you?
"A Yes.
"Q And what was the price that he first indicated to you?
"A Well, the very first price — he said he was trying to get twenty-five * * * .
"MR. VITALE [Chief Assistant Prosecuting Attorney]: Objection your Honor. I believe that would probably be hearsay as to what he indicated to her.
"THE COURT: Objection sustained.
"Q (By Mr. Nordstrom) Miss Haney, did this individual who has come to be known as Rufus Williams, indicate a price to you?
"MR. VITALE: Objection again.
“MR. NORSTROM: Your Honor, I’m not asking what the price was. I’m asking if he indicated a price to her.
"A (By the witness) Yes, he did.
"THE COURT: Don’t answer where there’s an objection. It’s still hearsay. Objection sustained.
"Q And then how did you get into contact with him?
"A Well, at first — he called me at my home and I gave him my number because he said that he didn’t have a phone, so I gave him my number to call me the next day at my home. He called at the house and I told him I had some money but it wasn’t what he had asked for.
"MR. VITALE: I’m going to object to that hearsay, Judge.
"THE COURT: Miss Haney, don’t tell us what somebody else told you.
"Objection sustained, at this stage at least.
"Q Now when you got to the Secretary of State’s Office, what happened then?
"A We went in, he and I went inside, and there was a line, and I was standing in the line with him until he told me that I could go sit down.
"MR. VITALE: Objection.
"THE COURT” Miss Haney, I told you not to tell us what was told to you by this Mr. Williams. Keep that out of your testimony. It’s hearsay.
"Q And after he gave you the receipt, what did you do then?
"A After I gave him — after he gave me the receipt for the money we both left the Secretary of State and went outside.
"Q Then what happened?
"A At that point we both got into the car, and he asked me would I drop him off at Dexter — on Dexter, and I told him yes, so I dropped— when we got to Dexter he got out of the car and said that he wanted to * * * .
"MR. VITALE: I’ll object, your Honor. Hearsay.
"Q (By Mr. Nordstrom) Miss Haney again don’t tell us what Mr. Williams said to you.” | [
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D. C. Riley, P.J.
Defendant Moses Knolton was convicted at a jury trial of assault with intent to do great bodily harm less than murder, contrary to MCL 750.84; MSA 28.279, and sentenced to a prison term of two to ten years.
The incident in question occurred when a crew of plain clothes Detroit police officers, driving an unmarked police car, responded to the requests of several people, including relatives of defendant, to investigate a disturbance at defendant’s house. According to the officers, they spoke to defendant on his front porch, but took no immediate action. While they were then observing the house, defendant drove away at a high rate of speed. After a chase through the city streets, the cars stopped at a red light. One officer stated that as he approached defendant’s vehicle, with his gun drawn, and identified himself as a police officer, he was shot in the chest by defendant.
Defendant Knolton testified in his own behalf. He admitted having been in an argument at his house, but denied having spoken to any police officers on his porch. He stated that he did not notice anyone following him when he drove away from his house, but that a man approached his car with a gun drawn when he was stopped at the light. Defendant denied that the man identified himself as a police officer, instead maintaining that he thought the man was one of several young men who allegedly had been harassing him earlier in the day. He stated that he did fire shots in the man’s direction but only after he had first been fired upon.
Obviously one key area of dispute in regard to defendant’s claim of self-defense was whether defendant in fact knew that the man approaching his car was a police officer. In this context, the identifiability of the unmarked police car was quite relevant. In opening argument, the prosecutor stated:
"Of course, the unmarked car is a Plymouth four door sedan with no radio antenna, and anybody with brains and eyes know[s] that’s a police car specially in the city of Detroit.”
During closing argument, the prosecutor again spoke to the issue of the appearance of the unmarked car:
"And that will become important because the car was unmarked, and they were in civilian clothes.
"My friend Mr. Parzen [defense counsel] will probably say [']how would he know they were police officers[?’].
"Ladies and gentlemen, all you have to do is walk out of this building and take a look at that parking lot across the street, and there you see a whole Pythian of unmarked Detroit police cars, all being Plymouths, all being four door, all having blackwalls, all having no radio antenna.
"So the only thing it doesn’t have is a big P-O-L-I-C-E printed on the side of the car.”
Defendant asserts on appeal that the comments made in the prosecutor’s argument were improper because they relied upon evidence not on the record. We see merit in this contention. The only testimony at trial related to these comments were the police officers’ descriptions of the car. There was no real evidence of the general public’s ability to recognize such a car as an unmarked police vehicle and, more importantly, defendant testified that he never saw the car, either at his house or during the subsequent chase.
It is a long-standing rule of law that an attorney may not argue or refer to facts not of the record. People v McCain, 84 Mich App 210; 269 NW2d 528 (1978), People v Brocato, 17 Mich App 277; 169 NW2d 483 (1969), People v Dane, 59 Mich 550; 26 NW 781 (1886), People v Quick, 58 Mich 321; 25 NW 302 (1885). In the case at bar, there was no record evidence to support the prosecutor’s argument that defendant knew that the unmarked car was a police vehicle.
It is true, as raised by the prosecution here, that defendant did not object to these comments at trial. However, even unobjected-to comments may be cause for reversal where the result of those comments is a denial of the defendant’s right to a fair trial. People v McCain, supra, People v Auer, 393 Mich 667; 227 NW2d 528 (1975). We find a miscarriage of justice in the present case since the comments could have significantly diverted the jury’s attention from the actual issues of the case. We also note that the comments themselves, while phrased in a form that resembles judicial notice of a recognized fact, were of questionable accuracy. Thus, the jury was not only prejudiced by considerations outside of the evidence presented in the case but also misled as to the evidentiary value of the considerations. Defendant should be granted a new trial absent this prejudicial argument.
In order to avoid a recurrence should a retrial be commenced, we will briefly comment on a few other points raised in this appeal. Certain statements made to the police officers, which prompted their investigation of defendant’s activities, were admitted over defendant’s hearsay objections. We find that the objections were properly overruled, since the statements were not presented to show their truth but only to show their effect on the officers’ course of conduct. MRE 801(c), People v Garcia, 31 Mich App 447; 187 NW2d 711 (1971). However, on retrial, the court should limit this testimony solely to the fact that several statements were made that induced the investigation, without reference to the irrelevant and prejudicial substance of those statements. Also, the status and availability of witness Betty Watts should be decided outside of the presence of the jury.
Reversed and remanded.
B. M. Hensick, J., concurred.
We would assume that one of the basic reasons for the use of unmarked police cars is to avoid citizen recognition, for purposes of surveillance and undercover work. While it is undoubtably true that some members of the populace have learned to identify the unmarked cars, we seriously doubt whether there exists the universal recognition perceived by the prosecutor in this case. | [
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Per Curiam.
Defendant Roderick Johnson was convicted, on his plea of guilty, of delivery of heroin, contrary to MCL 335.341(l)(a); MSA 18.1070(41)(l)(a), and was sentenced to a prison term of 8 to 20 years.
Defendant alleges that his plea was not voluntary or knowing because of the nature of the plea bargain. He had previously been convicted, at a single trial, of three counts of delivery of heroin. In exchange for his plea, the prosecution agreed that his sentence on the instant charge would be concurrent with the sentence imposed for the earlier convictions and that no habitual offender information would be filed. It is now contended that the agreement not to initiate a supplemental information charging defendant as a habitual offender was coercive and illusory, thereby invalidating the plea.
The use of a potential habitual offender charge as a plea bargaining tool has been upheld in a recent decision of the United States Supreme Court. Bordenkircher v Hayes, 434 US 357; 98 S Ct 663; 54 L Ed 2d 604 (1978). Under Bordenkircher, a prosecutor may threaten to charge a defendant with a habitual offender prosecution, if applicable, in order to induce a plea, or may promise to forego such a prosecution in exchange for a plea. On its face the plea bargain in the case at bar thus would be valid and enforceable.
However, we perceive from the record below what may be a more basic problem. Implicit in the proper use of a habitual offender charge as a plea bargaining tool is the legal applicability of the recidivist statutes to the particular defendant. The accused must be in fact a potential subject of habitual offender supplementation if this factor is to play a part in the plea negotiations. If the plea is induced by a promise to forego a recidivist proceeding, when no such proceeding would be warranted, the defendant is per se misinformed as to the benefit of his plea and the bargain is illusory. See People v Lawson, 75 Mich App 726; 255 NW2d 748 (1977), Hammond v United States, 528 F2d 15 (CA 4, 1975).
The prosecutor below stated on the record that defendant, in exchange for his plea, would not be supplemented as a second-time offender. Michigan’s recidivist statute for second-time offenders reads in part, as follows:
"A person, who after having been convicted within this state of a felony, or an attempt to commit a felony, or, under the laws of any other state, government or country, of a crime which if committed within this state, would be a felony, commits any felony within this state, is punishable upon conviction as follows: * * * (Emphasis added.) MCL 769.10; MSA 28.1082.
As this language should make clear, in order for a defendant to be supplemented as a second-time offender, the first felony conviction must predate the commission of the second felony. It is not sufficient if merely the convictions, or for that matter the commission of the offenses, are separate in time.
In the present case defendant was tried and convicted of three counts of delivery of heroin. Defendant entered his plea to the present offense while before the court for sentencing on the three trial convictions. As we stated earlier, his plea was given in exchange for a promise that no habitual offender information would be brought and that his sentence on the plea-based conviction would run concurrently with those imposed on the trial convictions.
Our uncertainty concerning this bargain stems from certain statements on the record that raise the issue of whether defendant indeed could have been charged as a habitual offender. At an early point in the proceeding, defendant’s counsel on the trial conviction cases, speaking in regard to the sentence to be imposed, stated that the defendant was a first offender. Later, defendant’s counsel on the current charge stated that the drug sales that led to both the current charge and the trial convictions occurred during the same period of time. Further, the offense at issue was committed on April 7, 1976, the trial convictions on March 17, 1977, and the plea on May 16, 1977. If in fact defendant had no felony convictions prior to April 7, 1976, he could not have been charged as a habitual offender, even after the three trial convictions.
We therefore must remand the matter for an evidentiary hearing. If defendant is found to have one or more felony convictions prior to April 7, 1976, his plea conviction is affirmed. On the other hand, if there are no such prior convictions, the plea bargain must be deemed illusory and the conviction reversed.
Remanded for proceedings consistent with this opinion.
If the commission of the second felony occurs after the commission of the first, but prior to the conviction on the first, the defendant will be subject to potential consecutive sentencing upon conviction of the second rather than to a supplemental habitual offender charge. MCL 768.7b; MSA 28.1030(2). | [
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C. W. Simon, J.
This appeal raises but one issue for consideration: whether, where a workmen’s compensation carrier has been called upon to pay benefits and joins the injured employee to bring an action for negligence against a third party, its contributory negligence may be asserted as a bar to recovery.
Plaintiff Ms. Stafford, at the time of her injury, was a press operator with United Metal Products. She operated a press designed and manufactured by the E.W. Bliss Company. On May 18, 1971, Ms. Stafford’s press allegedly malfunctioned, causing the majority of her left hand to be severed. Ms. Stafford filed for workmen’s compensation benefits and Liberty Mutual Insurance Company, the compensation carrier for United Metal Products, voluntarily paid her claim. Upon payment, under MCL 418.827; MSA 17.237(827), Liberty Mutual became subrogated to an equivalent portion of any cause of action Ms. Stafford had against E.W. Bliss Company arising out of the accident. Together they filed suit in the Wayne County Circuit Court alleging both negligence and breach of warranty.
Defendant, E.W. Bliss Company, denied plaintiffs’ allegations and moved to assert the affirmative defense of contributory negligence. It contended that a safety inspection conducted by Liberty Mutual on the premises of United Metal Products should have revealed a foreign body lodged in the safety mechanism of the press, and that such negligence, failing to discover the hazard, was a proximate cause of the injury. Defendant’s motion was granted and we granted plaintiffs leave to appeal.
Prior to its amendment in 1952, MCL 413.15; MSA 17.189 (repealed 1969) provided an employee who suffered an injury under circumstances which created liability in some person other than his employer with an election between proceeding against the third person at law for damages or against the employer for workman’s compensation. If the employee chose the latter, his employer could then proceed against the third party, and any contributory negligence of the employer would not be assertable by the third party as a bar to recovery. Utley v Taylor & Gaskin, Inc, 305 Mich 561; 9 NW2d 842 (1943). The purpose of the section "was to provide a method whereby the employer could reimburse himself or his insurer for workmen’s compensation benefits paid to an injured employee, where such injury resulted from the negligence of some other person”, and therefore the statute placed the employer "in the shoes of his injured employee”. Utley v Taylor & Gaskin, Inc, supra at 575. Since the employer’s contributory negligence could not have been asserted against the employee had he brought suit, neither could it be asserted against the employer.
1952 PA 155 amended MCL 413.15; MSA 17.189 (repealed 1969) to include the employer’s compensation insurance carrier as a subrogee of the employee’s claim against the third party, and provided that "the taking of proceedings to enforce compensation payments shall not act as an election of remedies”.
Currently, MCL 418.827(1); MSA 17.237(827X1) (formerly MCL 413.15; MSA 17.189) in pertinent part reads as follows:
"Where the injury for which compensation is payable under this act was caused under circumstances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies but the injured employee * * * may also proceed to enforce the liability of the third party for damages in accordance with the provisions of this section. If the injured employee or his dependents or personal representative does not commence the action within 1 year after the occurrence of the personal injury, then the employer or carrier, within the period of time for the commencement of actions prescribed by statute, may enforce the liability of such other person in the name of that person.”
Thus, assuming as we must that the allegations of the parties are correct, plaintiff Ms. Stafford, after obtaining her compensation award, still had two third parties against whom she could have proceeded. As eventually she did, she could have sued E.W. Bliss Company on a theory of negligence or product liability, e.g., Byrnes v Economic Machinery Co, 41 Mich App 192; 200 NW2d 104 (1972), lv den, 388 Mich 765 (1972), and, since her action arose before the enactment of 1972 PA 285, MCL 418.827(8); MSA 17.237(827)(8), which under these circumstances abolished liability for negligent safety inspection, she could have sued Liberty Mutual Insurance Company on a theory of negligence, e.g, Megge v Lumbermens Mutual Casualty Co, 45 Mich App 119; 206 NW2d 245 (1973).
In the case at bar, however, suit was prompted by the insurance carrier, Liberty Mutual, which, naturally, would not seek to proceed against itself. Since concurrent tortfeasors are jointly and severally liable, this exposed defendant to liability for the entire injury, Sexton v American Aggregates, 60 Mich App 524; 231 NW2d 449 (1975), a position of seemingly obvious inequity. But, the defense of contributory negligence, if proven, would completely bar recovery by Liberty Mutual, Baader v Detroit, Jackson & Chicago R Co, 228 Mich 104; 199 NW 630 (1924), and this we feel would also be unjust, see Prosser, Comparative Negligence, 51 Mich L Rev 465, 469 (1953).
Had Ms. Stafford chosen to sue Liberty Mutual it would have been exposed to liability for the entire injury, it could have sought contribution from defendant pursuant to 1961 PA 236, § 2925, repealed by 1974 PA 318, § 2, currently found at MCL 600.2925a, b, c; MSA 27A.2925 (1) (2) (3), and contributory negligence could not have been raised as a bar to recovery. Similarly, had Ms. Stafford alone brought suit against defendant, it could not assert Liberty Mutual’s negligence as a defense and would have been forced to seek contribution from it. To hold here that because of the mere fortuity that the insurer rather than the employee chose to bring the action the third party tortfeasor should be absolved from liability would certainly be anomalous. This is especially true since MCL 418.827; MSA 17.237(827) in no way extends the applicable statute of limitation or otherwise prejudices defendant.
The supplantation of cumulative remedies for election of remedies has not changed the purpose of the third party tortfeasor provision of the Worker’s Disability Compensation Act. As in Utley, it still seeks to provide a method whereby the employer or insurer can be reimbursed for compensa tion benefits paid to an injured employee, where such injury resulted from the negligence of some third person other than a co-employee. Therefore, we hold that an insurer, whether negligent or not, has a right to recover, under MCL 418.827; MSA 17.237(827), compensation payments which it has made to an injured employee. Where the insurer itself has been negligent the third party may properly seek contribution under 1961 PA 236, § 2925, repealed by 1974 PA 318, § 2, currently found at MCL 600.2925a, b, c; MSA 27A.2925 (1), (2), (3).
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T. M. Burns, J.
Defendant was charged in two separate informations with delivery of marijuana, MCL 335.341(1)(c); MSA 18.1070(41)(l)(c), on two specific dates in 1975. He moved to quash each information, claiming the Controlled Substances Act, insofar as related to marijuana, was unconstitutional. The trial court denied the motion, after a hearing, on the basis of this Court’s decision in People v Alexander, 56 Mich App 400; 223 NW2d 750 (1974). Defendant then entered bargained pleas of guilty to two counts of possession of marijuana, MCL 335.341(4)(d); MSA 18.1070(41)(4)(d), in exchange for dismissal of the delivery counts.
Defendant renews his constitutional attack on the statute in this appeal. The prosecution argues that the issue has not been preserved because defendant pled guilty. We disagree. A plea of guilty does not waive the right to contest whether a statute upon which the prosecution is based is constitutional. People v Alvin Johnson, 396 Mich 424, 440, 442; 240 NW2d 729 (1976). We may, therefore, properly consider whether the Legislature’s decision to classify marijuana as a controlled substance or the Legislature’s decision to place marijuana in Schedule 1 resulted in a deprivation of defendant’s rights to equal protection of the law.
The Michigan Controlled Substances Act of 1971 is based on the uniform controlled substance act approved by the National Conference of Commissioners on Uniform State Laws in 1970. See generally, 9 ULA, Matrimonial, Family & Health Laws, 145. The uniform act in turn relied largely upon the Federal Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 USCA 801, et seq.
The uniform act has been adopted, with some alterations, by 43 states, Puerto Rico and the Virgin Islands. 9 ULA, 1974-1977 Supplementary Pamphlet, 47. The act creates five schedules of substances which are considered harmful or have a potential for causing harm, lays out the criteria for adding substances to the schedules or changing the classification of a substance currently in a schedule, creates a regulatory scheme to prevent illicit drug diversion from the proper channels of commerce and provides penalties for violation of the act.
Defendant, by his motion to quash and this appeal, challenges the classification scheme of the act as it relates to marijuana.
Much of defendant’s brief is devoted to the lack of administrative action in classifying marijuana as a Schedule 1 substance, MCL 335.314(c); MSA 18.1070(14)(c), and the lack of administrative review to determine whether marijuana should remain in Schedule 1. We perceive this challenge to be misdirected. Marijuana was placed in Schedule 1 by the Legislature when it adopted the act. 1971 PA 196. We, therefore, are not reviewing administrative action, but legislative action. If the scheduling of marijuana denied equal protection, it is because of legislative action. We review defendant’s claim from that perspective.
As noted above, defendant bases his challenge to the legislative decision to place marijuana in Schedule 1 and the decision to control marijuana at all on the equal protection clause. In People v Alexander, supra, a different panel faced the same challenge to the same legislative classification. Relying primarily on United States v Kiffer, 477 F2d 349 (CA2, 1973), the Court applied the tradi tional equal protection test and concluded that the legislation was not a violation of this constitutional guarantee. Defendant asks that we reexamine that decision in light of subsequent legal and scientific developments.
Defendant contends that the applicable equal protection standard should not be the "traditional” equal protection review used by the Alexander panel, but the "substantial-relation-to-the-object” test used by Justice Levin in Manistee Bank & Trust Co v McGowan, 394 Mich 655; 232 NW2d 636 (1975). Application of the Manistee Bank equal protection test is dependent on two factors: the legislation must carve out a discrete exception to a general rule (such as requiring a showing of gross negligence by a guest passenger to recover for loss or injury from his host, while all others recover on a showing of mere negligence) and the legislation must have remained in force for a sufficiently long time so that it may no longer be considered experimental. 394 Mich at 671.
We do not find defendant’s arguments on these points persuasive. The legislative decision to place controls on marijuana, from among the galaxy of substances, does not compare with the legislative decision to single out guest passengers for special treatment in recovering for a loss resulting from an automobile accident.
We conclude that the traditional equal protection test must be applied. Since defendant does not claim that any fundamental right is involved, the burden is on defendant (the person attacking the classification) to demonstrate that the legislative decision to control marijuana and the legislative decision to place it in Schedule 1 lacked a reasonable basis, i.e., that the decision was essentially arbitrary. Forest v Parmalee, 402 Mich 348, 356-357; 262 NW2d 653 (1978).
Defendant presented testimony of experts below and has asked that we take judicial notice of other scientific data which he claims demonstrates that marijuana is a relatively harmless substance and, therefore, that the Legislature acted arbitrarily in controlling the substance and in placing it in Schedule 1.
The testimony in this case below would not be sufficient to declare the statute unconstitutional. Defendant’s witnesses recognized the split in medical opinion and expressed the belief that much is still to be learned in this area. Divided scientific opinion is not a firm enough basis upon which to declare a statute unconstitutional.
Assuming that this Court could be expected to cull the scientific journals and other material on its own, the result contended by defendant would not be compelled from that search. Other courts examining this question have concluded that at this point in time there is no uniform scientific opinion and, therefore, the respective legislative bodies did not act arbitrarily in deciding to control marijuana. See, e.g., State v Mitchell, 563 SW2d 18 (Mo, 1978), Marcoux v Attorney General, — Mass —; 375 NE2d 688 (1978), State v Murphy, 117 Ariz 57; 570 P2d 1070 (1977), State v Infante, 199 Neb 601; 260 NW2d 323 (1977), Ross v State, — Ind App —; 360 NE2d 1015 (1977), State v Rao, 171 Conn 600; 370 A2d 1310 (1976) (reversing a lower court determination of unconstitutionality), State v Leins, 234 NW2d 645 (Iowa 1975), Ravin v State, 537 P2d 494 (Alas, 1975), Blincoe v State, 231 Ga 886; 204 SE2d 597 (1974), State v Donovan, 344 A2d 401 (Me, 1975), State v O’Bryan, 96 Idaho 548; 531 P2d 1193 (1975), Kreisher v State, 303 A2d 651 (Del, 1973), Gaskin v State, 490 SW2d 521 (Tenn, 1973), People v Demers, 42 App Div 2d 634; 345 NYS2d 184 (1973), State v Kaplan, 23 NC App 410; 209 SE2d 325 (1974), State v Tabory, 260 SC 355; 196 SE2d 111 (1973).
We do not necessarily agree with statements, such as appear in Brantley v State, 548 P2d 675 (Okla Crim App, 1976), that the evidence compels the conclusion that marijuana use is detrimental to public health and safety, or the South Carolina assessment that the issue is obviously without merit. State v Tabory, supra. Indeed, we agree with the statement that the Legislature could not regulate a harmless drug, Blincoe v State, supra, but, in light of present day medical and scientific knowledge there is room for doubt. As the court said in State v Mitchell, supra, it is a "debatable medical issue”. Under the circumstances the choice of whether marijuana will be subject to regulation is still one for the Legislature, not the Court. As long as a substantial body of scientific literature continues to conclude that marijuana use is or may be harmful, we cannot say that the Legislature’s choice to rely on that evidence is arbitrary.
Nor does the fact that the Legislature has failed to control other substances, such as tobacco, alcohol, or caffeine, require that we find an equal protection violation. The Legislature, because of the role a particular substance plays either economically or socially, could find control feasible in one circumstance and not in another. It is not necessary that the Legislature act on all perceived evils in an area at one time. State v Mitchell, supra, State v Leins, supra, State v Kantner, 53 Hawaii 327; 493 P2d 306 (1972), Commonwealth v Leis, 355 Mass 189; 243 NE2d 898 (1969).
In determining whether the legislative decision to classify and control some substances while not taking a like action as to others was arbitrary, we must also recognize that significant political roadblocks exist which preclude regulating some substances which are known to be dangerous. Ravin v State, supra.
In summary, we find that the state of present day medical and scientific knowledge does not allow us to find the Legislature’s decision to regulate marijuana to have been, or to be, essentially arbitrary. Scientific research in the area is ongoing. Many of the former "truths” about marijuana have been shown to be myths. But not all questions as to the safety of this substance have been answered. Nor will they be answered in the courts. New scientific findings which become generally accepted in the appropriate field may require a different result. The day may come when we are able to join defendant in his conclusion that the state has no right to regulate marijuana. That day has not yet come.
We are definitely not saying the Legislature must continue the present classification. To the contrary, we would continue to urge the Legislature to reevaluate the entire marijuana "problem”. See, Joslin v 14th District Judge, 76 Mich App 90, 100; 255 NW2d 782 (1977) (T. M. Burns, concurring), lv den, 402 Mich 833 (1977). A proper respect for the legislative function requires that the statute be found constitutional even if we may personally question the wisdom of continuing criminal sanctions for its use or possession. The Legislature is better equipped to make the findings and decisions in this area. We are allowed to intervene only if that body’s decision conflicts with the constitution. In this case it does not.
Affirmed.
MCL 335.301 et seq.; MSA 18.1070(1) et seq.
US Const, Am XIV, § 1: "No state shall * * * deny to any person within its jurisdiction the equal protection of the laws.”
Const 1963, art 1, § 2 provides: "No person shall be denied the equal protection of the laws * * * .”
The traditional equal protection test is a two tiered approach with the level of judicial scrutiny depending on the interest involved. The legislative classification is subject to strict scrutiny if the right asserted is classified by the court as fundamental. Defendant admits he has no fundamental right to possess marijuana. If the right is not fundamental, the legislation is presumed valid and overturned only if the classification is not reasonably or rationally related to the object of the legislation. See, People v Alexander, 56 Mich App at 403, Forest v Parmalee, 402 Mich 348, 356; 262 NW2d 653 (1978).
Manistee Bank was a three-to-two decision with two justices not participating. Such a decision is binding on this Court until overruled or modified. Negri v Slotkin, 397 Mich 105; 244 NW2d 98 (1976).
This list of authorities is not intended to be exhaustive. The list is in addition to those cases cited in People v Alexander, supra, 56 Mich App at 402, n 1. No case from a court of last resort was found declaring a statute unconstitutional on equal protection grounds.
Ravin v State, 537 P2d 494 (Alas, 1975), rejected the defendant’s equal protection challenge but declared that the Alaska statute was unconstitutional insofar as it prohibited possession of marijuana in a private residence on the basis of a specific state constitutional provision relating to the right of privacy. Similar statements appear in opinions of our courts. See, People v Sinclair, 387 Mich 91, 133-134; 194 NW2d 878 (1972), (Opinion of T. G. Kavanagh, J).
Defendant has made no challenge to the statute on the basis of a right to privacy in this case.
The Massachusetts Supreme Court recently reexamined the present question in Marcoux v Attorney General, supra. That court stated that the statute would be unconstitutional if the doubts about the safety of marijuana were resolved on the side of safety "beyond reasonable scientific dispute”. — Mass at —; 375 NE2d at 689.
We need not decide what quantum of scientific evidence would persuade us to declare the statute unconstitutional. While we might consider the Massachusetts standard too severe, a court should expect that at least a substantial body of credible scientific evidence be presented on the question. Examining the present record and the authorities mentioned in the cases cited above shows what we perceive to be a genuine lack of information on several critical points. Until long term studies are completed and more is known about the precise effect of marijuana on certain types of persons, that substantial body of authority will not be available. | [
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N. J. Kaufman, J.
Defendant was convicted by a jury of conspiracy to break and enter a business place with intent to commit larceny, in violation of MCL 750.157a; MSA 28.354(1) and MCL 750.110; MSA 28.305, and of receiving and concealing stolen property over the value of $100, in violation of MCL 750.535; MSA 28.803. Defendant was sentenced to a term of from six to ten years imprisonment on the first charge and from three to five years imprisonment on the second charge. Defendant appeals as of right, raising numerous issues.
Defendant had originally been charged with having conspired with Gregory Teeter, the chief prosecution witness, to break and enter the Fairway Jewelry Store in East Detroit with intent to commit larceny therein. Defendant was also charged with receiving and concealing the stolen property from the break-in, in an amount over $100.
Defendant’s major contention on appeal is that a tape-recorded conversation between defendant and Gregory Teeter, which contained inculpatory statements, was erroneously admitted into evidence during the prosecution’s rebuttal.
The prosecution originally tried to introduce a portion of the recording at issue in its case in chief to prove the existence of the conspiracy between defendant and Teeter with respect to the burglary of the Fairway Jewelry Store and, further, to show that defendant had purchased from Teeter stolen goods from that burglary. The tape recording was marked as Exhibit 13 and was played to the jury without objection for approximately five minutes. After that time, the prosecutor withdrew the tape as a proposed exhibit because of the largely unintelligible nature of the recording. The prosecutor explained to the trial court that "obviously, it is too bad for us to get any entry value out of it, so I withdraw the tape even as a proposed exhibit”.
On rebuttal, the prosecution again decided to play the tape for the jury. Defense counsel objected to the playing of the tape recording during rebuttal, arguing that it would be allowing the prosecutor to renew his case in chief. Defense counsel further argued that the tape did not provide a clear and direct contradiction of the defense witnesses’ testimony. The trial court overruled the objection and allowed the prosecution to play the tape recording.
After the tape was played, the prosecution called two rebuttal witnesses and then moved for the admission of the tape recording. Defense counsel’s primary objection was that because of the great amount of interference in the tape recording, it was incomprehensible. In response the trial court stated:
"Well, the Court admitted the entire tape even though part of it was incapable of being understood. And it was admitted in the form that it was in the original taping. There is no question about it that there was a lot of interference. But I am going to admit the entire tape.”
The prosecutor mentioned the tape recording during rebuttal argument:
"Corroboration is also in the tape and discussions on the tape, particularly the last portion of the last side of what is possible to be heard.
"Perhaps one of the greatest amounts of the value on the tape is the fact that the two were together and talking. And whether it was a heated discussion or somewhat friendly discussion or a business discussion. The fact that there was discussion of costs and values and amounts and per centages [sic] and what is the markup on a Timex, I think is certainly relevant.” (Emphasis added.)
We empathize with the dilemma faced by the trial court in this case. It is a problem which confronts trial courts when part of a deposition is destroyed. The trial court must balance competing interests. Here, on the one hand, the tape contained at least arguably relevant evidence. On the other hand, at least part of the tape was incomprehensible. The trial court did try to make the requisite weighing of the interests. However, we must observe that the trial court failed to utilize the applicable standards of law while so doing. Accordingly, we are constrained to reverse and remand this case for a new trial.
Problems of audibility of tape recordings were considered by this Court in People v Taylor, 18 Mich App 381; 171 NW2d 219 (1969). This Court set forth what constitutes a proper foundation:
”(1) a showing that the recording device was capable of taking testimony, (2) a showing that the operator of the device was competent, (3) establishment of the authenticity and correctness of the recording, (4) a showing that changes, additions, or deletions have not been made, (5) a showing of the manner of the preservation of the recording, (6) identification of the speakers, and (7) a showing that the testimony elicited was voluntarily made without any kind of inducement.” 18 Mich App at 383-384.
Accord: People v Frison, 25 Mich App 146, 148; 181 NW2d 75 (1970), noting further:
" 'The fact that a recording may not reproduce an entire conversation, or may be indistinct or inaudible in part, has usually been held not to require its exclusion; however, the recording may be rejected if it is so inaudible and indistinct that the jury must speculate as to what was said. It has been held that unless the unintelligible portions of a tape recording are so substantial as to render the recording as a whole untrustworthy, the recording is admissible and the decision whether to admit it should be left to the sound discretion of the trial judge,’ 29 Am Jur 2d, Evidence, § 436, p 495.”
Although the prosecution did offer some foundation testimony through Detective Smith, we con- elude that it was insufficient to meet the TaylorFrison requirements.
Our resolution of this issue makes it unnecessary to rule on defendant’s contention that the tape recording constituted improper rebuttal evidence. However, it is clear that the tape is merely corroborative of the prosecution’s case in chief in a general way and does not provide a clear and direct contradiction of the proffered testimony of the defense witnesses. Additionally, we disapprove of saving a tape recording until rebuttal merely for use as a final mechanical arbiter solving the credibility question between two conflicting stories. Trial courts should not admit that type of evidence on rebuttal where it is argued that the evidence is merely cumulative in nature.
Defendant also contends that the trial court committed reversible error when it allowed as rebuttal evidence Detective Smith’s testimony because the testimony concerned a collateral matter raised by the prosecution on cross-examination of a defense witness.
Over defense Counsel’s objection, the prosecutor was allowed on cross-examination to ask defendant’s wife whether there were 17 sets of used golf clubs and golf bags in the basement and garage of their home. The trial court allowed the answer to test the credibility of the witness. She testified that at the time the search warrant was executed there were only two sets.
On rebuttal, Detective Smith testified over defense counsel’s objection that he had personally observed approximately 17 sets of various brand names of golf bags and clubs at the time the search warrant was executed. In response to defense counsel’s objection, the trial court ruled that this was the proper subject of rebuttal because there had been testimony about the presence of certain equipment.
This issue is controlled by a recent decision of this Court, People v Roeder, 79 Mich App 595; 262 NW2d 872 (1977). There:
"Defendant testified at trial, and during cross-examination was asked by the prosecutor whether she had shown Mrs. Wenzel, who was her landlady, a scrapbook containing a newspaper article about the fire in her parent’s home. Defendant denied having done so. Over the objection of defendant, the prosecutor was permitted to recall Mrs. Wenzel to the stand to testify in rebuttal that defendant had, in fact, shown her a scrapbook containing such an article.” 79 Mich App at 601.
Quoting People v Bennett, 393 Mich 445; 224 NW2d 840 (1975), this Court noted:
"Rebuttal is limited to the refutation of relevant and material evidence — hence evidence bearing on an issue properly raised in a case.
"The device of eliciting a denial of some statement not properly in the case at the time of denial will not serve to inject an issue.
"Both the statement and the veracity of the witness are then collateral matters and the cross-examiner is bound by the response. People v Hillhouse, 80 Mich 580; 45 NW 484 (1890).” 79 Mich App at 602.
This Court then concluded:
"In the case at bar, no evidence about the scrapbook was presented either in the prosecutor’s case in chief or in the defendant’s case. The entire issue of the fire at the home of defendant’s parents was a collateral matter. Defendant was being tried on charges arising out of the fire which occurred at her mobile home, not the earlier fire at her parents’ house. Whether or not defendant kept a clipping about the earlier fire has no probative value on the question whether defendant intentionally burned her trailer home. As a collateral matter, the subject of the scrapbook concerning the earlier fire is appropriate neither for substantive rebuttal nor for extrinsic impeachment of defendant’s testimony. People v Bennett, supra, People v McGillen #1, 392 Mich 251; 220 NW2d 677 (1974).” 79 Mich App at 602-603.
We do not suggest that the rebuttal testimony offered in this case might never be admissible. However, on the facts of this case — with the evidence offered only to test the credibility of the witness — it must be held that the testimony went to a collateral matter. Thus, Roeder being dispositive, it was error to permit extrinsic impeachment of the witness’s testimony. We specifically decline to rule whether the error was harmless. See the rules set forth in People v Swan, 59 Mich App 409; 229 NW2d 476 (1975).
Defendant also claims that the trial court committed reversible error by admitting the tape recording because it contained inculpatory statements made by defendant to a prosecution witness (who was equipped with a body transmitter placed there by police authorities) and no Miranda warnings were given. The United States Supreme Court decided this question adversely to defendant’s position in Hoffa v United States, 385 US 293; 87 S Ct 408; 17 L Ed 2d 374 (1966).
Defendant further argues that the examining magistrate who bound him over for trial after his first preliminary examination should have disqualified himself from presiding over the second pre liminary examination. Defendant has failed to show bias or prejudice in fact on the part of the examining magistrate, as is his burden under GCR 1963, 405.1(3); therefore, his claim is without merit. People v Tillman, 59 Mich App 768; 229 NW2d 922 (1975).
Defendant also contends that the trial court showed bias and prejudice to the jury by the manner in which he questioned chief prosecution witness Teeter about defendant’s occupation. A similar contention was raised in People v John Moore, 78 Mich App 150; 259 NW2d 403 (1977). There, this Court responded:
"A careful review of the entire record shows that the trial court’s questions had the apparent intent and effect of resolving ambiguities and bringing out additional relevant testimony that potentially could have aided either the prosecution or the defense. The record does not show any interjection of the trial court’s personal views or bias. The trial court’s questions did not have the effect of unfairly influencing the jury’s verdict against the defendant and therefore there was no error. People v Redfern, 71 Mich App 452, 456; 248 NW2d 582 (1976). People v Gray, 57 Mich App 289, 295; 225 NW2d 733 (1975).” 78 Mich App at 155.
Moore is controlling here. The questioning was not lengthy. There was no suggestion from the trial court that it thought defendant’s occupation to be anything but legal. Defendant’s claim is without merit.
Defendant further argues that the prosecutor’s closing argument was reversibly erroneous because he was permitted to explain to the jury the immunity situation pertaining to the chief prosecution witness. The prosecutor’s argument was made in direct response to defense counsel’s closing argument and was not prejudicially inflammatory. There was no error. People v Pomranky, 62 Mich App 304; 233 NW2d 263 (1975), lv den 397 Mich 823 (1976).
Defendant also claims that the prosecutor failed to fulfill his obligation to reveal to the jury the full extent of the deal that the prosecutor had made with the chief prosecution witness in exchange for his testimony. The claim is wholly without merit. Throughout the trial there was a continuing effort to keep the jury aware of the fact that the chief prosecution witness had been granted immunity in exchange for his testimony.
Next, defendant contends that there was insufficient evidence to support a conviction of conspiracy to break and enter with intent to commit larceny. The jury could reasonably find that there was an agreement between defendant and the chief prosecution witness to commit the crime of breaking and entering with intent to commit larceny on the basis of the evidence presented. The overt acts taken by defendant in furtherance of that crime, coupled with his knowledge that the crime was to be committed are sufficient to form the basis of an inference of intent. See People v Atley, 392 Mich 298, 310-311; 220 NW2d 465 (1974).
Finally, defendant contends that the trial court committed reversible error in its conspiracy instructions. Defendant’s trial counsel did not request any jury instructions regarding the conspiracy charge. Neither did he indicate any objections to the trial court prior to the jury retiring for deliberations. In the absence of objection to the charge, this Court will reverse the defendant’s conviction only upon a demonstration that manifest injustice has occurred. People v Embree, 70 Mich App 382; 246 NW2d 6 (1976). There was no manifest injustice.
Reversed and remanded.
R. M. Maher, P.J., concurred.
The combination of the fact that an improper foundation was used to admit the tape, regarding its inaudibility, and the fact that the tape only corroborated Detective Smith’s testimony prompts our decision in this matter.
Miranda v Arizona, 384 US 436; 86 S Ct 1602; 16 L Ed 2d 694; 10 ALR3d 974 (1966).
The second preliminary examination was ordered by Wayne County Circuit Judge John R. Kirwan because defendant was not represented by retained counsel of his choice at the first proceeding.
The particular questions assigned as error are as follows:
"THE COURT: And do you know what his occupation is?
"THE WITNESS: Yes, I know.
"THE COURT: What is his occupation?
"THE WITNESS: Well, I knew he was involved in illegal things. I don’t know exactly what he did.
"MR. BOGGS [Defense counsel]: Your Honor, I am going to object.
"THE COURT: What did he do for a living that you knew? Is he a doctor? A dentist? A jeweler? Or what is he?
"THE WITNESS: Oh, I knew from his kid’s mouth before that.
"THE COURT: You don’t know exactly?
"THE WITNESS: No, just from his kids.
"THE COURT: All right.”
Defendant supplied the money for the purchase of tools at K-Mart to use in a first aborted attempt. Defendant also gave the chief prosecution witness’s brother some tools to use in the second successful break-in after the K-Mart tools had been abandoned during the first attempt. | [
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Per Curiam.
The concurrence/dissent adequately states the facts in this case and satisfactorily disposes of most of the issues facing us. We differ on two points, however. Plaintiffs in this case argue that the trial court erred in refusing to include in its instructions the holding of McKendrick v Petrucci, 71 Mich App 200; 247 NW2d 349 (1976). As our brother does, we reject plaintiffs’ argument basically because a "trial court does not err in refusing to charge as to a particular party’s theory of another case”. But in discussing McKendrick, we must not de-emphasize the language concerning "particular body function”. While the language is not part of the holding of the case, it does have a significance which our brother seems to deny.
The choice of the words "particular body function” was not inadvertent: the McKendrick Court interpreted the statute as not requiring impairment of the total body function, e.g., through a life-sustaining organ such as the heart or liver. The Court chose the word "particular” to suggest that impairment of one specific body function comes within the ambit of the statute. The very nature of the impairment at issue in McKendrick, tendonitis of the biceps tendon of plaintiff’s right arm, implies that the Court was referring to a particular body function, not simply "body function”. Although not the holding of the case, we believe it is one of its important implications and should not be obscured.
On a second issue we differ more fundamentally with our brother. Plaintiff argued that as a matter of law he satisfied the threshold requirement of the no-fault act for serious impairment of bodily function. He therefore moved for a directed verdict. In denying the motion, the trial judge stated:
"Mr. Hayes [plaintiffs’ attorney], the McKendrick case defeats your argument. It is very clear in the McKendrick case that the Court has decided that the issue of serious impairment of body function is a fact question for the jury, and your motion is denied.”
McKendrick does not conclude that every question of whether a particular impairment falls under the act must be submitted to the fact finder. In Vitale v Danylak, 74 Mich App 615; 254 NW2d 593 (1977), this Court, consistent with McKendrick, allowed a trial judge to rule by summary judgment that plaintiff’s injuries (a stiff neck) did not, as a matter of law, meet the standard of serious impairment of body function. The Vitale Court stated that no specific "permissible limits” had been drawn but that the Court was of the opinion that "if any class of cases could approach such limitation, the case at bar must be included in that class”.
Just as there is a class of cases, of which Vitale is representative, in which the trial court can rule as a matter of law that plaintiff’s injury is so minor that it fails to reach the threshold, so there is a class of cases in which, as a matter of law, the threshold of serious impairment is reached by the very nature of the injury, i.e., reasonable minds could not differ on the question of whether the threshold is met. In such a case, the trial judge should not give the issue to the jury for determination.
The trial judge in the instant case used an erroneous standard. He thought, because of a misinterpretation of McKendrick, that he was forced to send the issue to the jury. He did not perceive that McKendrick does not foreclose the possibility of the court determining as a matter of law that the threshold was reached. In denying plaintiffs’ motion for a directed verdict, the judge here was unaware of this alternative.
We therefore remand to the trial court with instructions to the judge that McKendrick does not force him in all circumstances to send the issue of serious impairment to the jury. He should recognize that he may grant a directed verdict for plaintiffs, if the nature of Leo Cassidy’s injury was such as to meet the threshold of serious impairment as a matter of law. | [
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V. J. Brennan, P.J.
Plaintiff Clarence St. Vincent brought suit both in the Michigan State Court of Claims and Dickinson County Circuit Court, seeking damages for personal injuries allegedly suffered due to the negligent acts of the State of Michigan, the Michigan State Highway Commission, Department of Highways and Transportation, and the Dickinson County Road Commission. The Court of Claims granted accelerated judgment to the state defendants pursuant to GCR 1963, 116.1(5). The Dickinson County Circuit Court granted county defendants’ motion for summary judgment on the basis of governmental immunity and nonliability pursuant to a maintenance contract existing between defendant county and defendant State Highway Department. GCR 1963, 117.2(1). Plaintiff appeals as of right under GCR 1963, 806.1.
Plaintiff brought suit against defendants on May 26, 1976, alleging injury which occurred in 1935 in a Michigan state highway park located north of M-69, near Hardwood in Dickinson County. Plaintiff stated that he was an invitee, that the premises were under the ownership and control of defendants, that defendants breached their duty of care by failing to erect signs warning of dangerously shallow waters, that he was injured upon diving into those waters, that defendants’ breach of duty was the direct and proximate cause of those inju ries and that such injuries caused mental derangement which prevented him from instituting legal action prior to this time.
With regard to the state defendants, on July 19, 1976, the Dickinson County Circuit Court granted their motion for accelerated judgment on the ground that plaintiffs claim against them was cognizable only in the Court of Claims. Similarly, the Court of Claims, holding plaintiffs claim for naught, on August 13, 1976, granted the state defendants’ motion for accelerated and summary judgment. Although the court’s decision does not so indicate and the record is silent on the matter, judgment for state defendants was apparently based upon their claim that plaintiff was barred by the doctrine of sovereign immunity.
With regard to the county defendant, on October 27, 1976, the Court of Claims granted its motion for accelerated judgment on the basis that such claim was cognizable only in Dickinson County Circuit Court. Finally, on March 18, 1977, the circuit court granted defendants’ motion for summary judgment on grounds of governmental immunity and nonliability premised upon a contract between Dickinson County and the Michigan State Highway Commission.
Plaintiff raises several allegations of error. We will comment only briefly on them.
The Court of Claims properly granted summary judgment to state defendants. GCR 1963, 117.2(1). See White v Detroit, 74 Mich App 545, 547; 254 NW2d 572 (1977), McCann v Michigan, 398 Mich 65, 77; 247 NW2d 521, 523-524 (1976) (opinion of Ryan, J.), Galli v Kirkeby, 398 Mich 527; 248 NW2d 149 (1976) (opinion of Williams, J.). Recently, the Michigan Supreme Court abrogated the common-law doctrine of sovereign immunity as applied to the state and its agencies. Pittman v City of Taylor, 398 Mich 41; 247 NW2d 512 (1976). However, because plaintiff was not directly challenging the concept of common-law sovereign immunity in his reply to state defendants’ claim of immunity, but only contesting its application to plaintiff’s particular suit, we find plaintiff’s action is not governed by Pittman, despite the fact the suit was pending when Pittman was released. The Court stated there:
"This ruling is prospective, with the exception of the instant case and any cases now pending in which an express challenge to the common-law defense of state governmental immunity has been made and preserved.” Pittman v City of Taylor, supra, at 45.
Consequently, state defendants properly availed themselves of the immunity defense, and the Court of Claims correctly granted their motion for summary judgment. See Myers v Genesee County Auditor, 375 Mich 1; 133 NW2d 190 (1965).
Concerning county defendant, we find no basis for liability on account of charged negligent maintenance when the county simply maintained a contract with the state for such maintenance. See Moyer v Wayne County Road Comm, 52 Mich App 285; 217 NW2d 53 (1974), Bennett v Lansing, 52 Mich App 289; 217 NW2d 54 (1974). Therefore, defendant county was properly granted summary judgment when they affirmatively presented to the court every fact necessary for a complete defense. Bloss v Williams, 15 Mich App 228; 166 NW2d 520 (1968).
Having reviewed plaintiff’s remaining claims of error and finding none meritorious, we sustain the Court of Claims and Dickinson County Circuit Court.
Affirmed. | [
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Per Curiam.
Plaintiffs filed suit in circuit court in Kalamazoo County on June 21, 1974, claiming damages arising out of the alleged medical malpractice and breach of contract to cure by Dr. George Hoekstra and Dr. John Hammer, employees of the defendant. Jury trial commenced on June 1, 1977, and plaintiffs closed their proofs on June 15, 1977. At that time defendant moved for a directed verdict claiming that the plaintiffs had failed to establish any standard of care to which the defendant could be held. The trial court granted the defendant’s motion and the plaintiffs appeal by right. GCR 1963, 806.1.
Plaintiff Ethel Francisco had a long history of prior breast problems including pain in the breast area. While plaintiff Ethel Francisco was under the care and treatment of doctors in Sturgis, Michigan, in 1963, a suspicious lesion was noted in her left breast and she was advised at that time that her breast might be cancerous. A biopsy was performed which disclosed no cancer, but Mrs. Francisco was diagnosed as having fibrocystic disease in both breasts.
Mrs. Francisco came under the care of Dr. Hoekstra on January 26, 1971, at which time she was complaining of severe pain in the left breast together with swelling and blueness in her left upper arm. At that time Dr. Hoekstra made a determination that she was in the healing stage of left mastitis with secondary axillary adenolymphangitis and pain medication was prescribed.
On four separate occasions from February 2, 1971, to February 8, 1971, Mrs. Francisco returned to Dr. Hoekstra complaining of severe pain in the chest and breast area. On February 8, 1971, Mrs. Francisco was admitted to Borgess Hospital for a mammogram study. The results of the study showed a suspicious nodule in the upper outer quadrant of the right breast together with widespread fibrocystic changes within the glandular tissues of both breasts.
Dr. Hoekstra discussed the results with plaintiff and indicated a possibility of cancer. Dr. Hoekstra also indicated that the mammogram study confirmed the presence of widespread fibrocystic disease in both breasts.
Dr. Hoekstra testified that the plaintiff agreed to the removal of her breast because of the widespread fibrocystic disease. Mrs. Francisco directly contradicted this and stated that the reason she consented to the operation was that she was told by Dr. Hoekstra and Dr. Hammer that she in fact had cancer.
Dr. Hammer testified that Mrs. Francisco agreed to a biopsy of the suspicious nodule and then after a detailed discussion agreed to have both her breasts removed because of the fibrocystic disease. Upon removal the breasts were found to be noncancerous.
The trial court in granting the directed verdict in favor of the defendant held that the plaintiffs failed to establish any standard of care applicable to their cause of action. On appeal from the granting of a motion for directed verdict, this Court will view the evidence presented in the light most favorable to the nonmoving party. Since the evidence is contradictory as to whether the operation was performed for the treatment of fibrocystic disease or for the treatment of cancer, we must determine whether a standard of care was established for either treatment.
I. Whether the plaintiffs established a standard of care for the treatment of ñbrocystic disease?
The thrust of the plaintiffs’ argument under this issue concerns the trials court’s ruling that two experts called to testify as to the applicable standard of care were unfamiliar with the locality of Kalamazoo and were thus not qualified to testify. It is within the trial court’s discretion to admit or exclude expert testimony, and the trial court’s decision will not be disturbed unless clearly erroneous. Johnson v Detroit, 79 Mich App 295; 261 NW2d 295 (1977), Coger v Mackinaw Products Co, 48 Mich App 113; 210 NW2d 124 (1973). It is incumbent upon the parties offering an expert witness to show that the witness possesses the necessary knowledge or skill to enable him to competently give such testimony. Siirila v Barrios; 398 Mich 576; 248 NW2d 171 (1976). In Michigan, general practitioners, including general surgeons, are held to the standard of professional competence of similar physicians in their community or one similar thereto. Siirila v Barrios, supra; Abbe v Woman’s Hospital Assoc, 35 Mich App 429; 192 NW2d 691 (1971). See MCL 600.2912(1); MSA 27A.2912(1). Therefore, an expert’s testimony as to the standard of care applicable to a general surgeon must first be qualified by a showing of knowledge of the medical community in question.
In the present case the trial court ruled that the defendant’s employees were general practitioners and general surgeons. The proffered expert witnesses testified that they were unfamiliar with the medical community of Kalamazoo, and the trial court held any testimony by them in regard to the applicable standard of care was inadmissible.
The plaintiffs assail the trial court’s ruling on two grounds. First, the plaintiffs argue the trial court erred in ruling that Dr. Hammer was a general surgeon, and second, the plaintiffs argue that the recent case of LeBlanc v Lentini, 82 Mich App 5; 266 NW2d 643 (1978), warrants the application of a national standard in the case at bar.
The ruling that Dr. Hammer is a general surgeon and thus a general practitioner is within the discretion of the trial court and will not be reversed unless clearly erroneous. In reviewing the testimony adduced at trial it is found that Dr. Hammer considered himself a general surgeon and not a specialist. Dr. Hammer at one time operated on all parts of the body, but with the increasing number of specialists in the community, his practice had narrowed to the abdomen, breasts, thyroid, and the extremities. There is no showing that Dr. Hammer held himself out as a specialist in the treatment of some particular organ or disease, and thus, it cannot be said that the trial court’s ruling was clearly erroneous. See Anno: Physicians and Surgeons: Standard of skill and care required of specialist, 21 ALR3d 953. Therefore, the plaintiffs argument in this regard is without merit.
We next direct our attention to the question of whether Lentini imposes the application of a national medical standard to the case at bar. In Lentini, this Court held that although the locality standard is applicable in Michigan, cases may arise where the treatment in question (including the medical standard of care) is uniform throughout the United States so as to allow testimony of an expert who is unfamiliar with the locality in question. It must be noted that in Lentini the necessary foundation was laid showing that the treatment of the ailment in question (hiatus hernia) was well known and uniform throughout the United States. In the present case no such foundation was laid concerning the treatment of fibrocystic disease. Therefore, the national standard contemplated in Lentini is inapplicable, and the trial court’s ruling that the proffered experts’ testimony was inadmissible is upheld.
We hold that the granting of the directed verdict, insofar as it barred recovery for the alleged malpractice in regard to the treatment of fibrocystic disease, was proper.
II. Whether the plaintiffs established a standard of care applicable to the treatment of cancer?
It must again be noted that Mrs. Francisco testified that her consent to the mastectomy was based upon the representation that she in fact had cancer. For the purposes of this appeal we take this testimony as true, and our review is limited to the question of whether a standard of care concerning the treatment of breast cancer was established.
In reviewing the record it is found that Dr. Franklin Cox, the Borgess Hospital pathologist at the time of Mrs. Francisco’s treatment, testified that the normal procedure where there is a suspicion of cancer is to remove a specimen of tissue which may be involved.
Dr. Hammer initially testified that the suspicious nodule in the right breast was removed and sent to the laboratory before the breast was removed. Upon reviewing his records Dr. Hammer stated that the entire breast was removed and sent to the laboratory for tests, reason being that Mrs. Francisco agreed before surgery to have her breasts removed due to the fibrocystic disease.
Viewing this testimony in the light most favorable to the plaintiffs we find that there was sufficient evidence to establish the standard of care applicable to the treatment of suspected cancer of the breast. The evidence shows that the proper procedure is to perform a biopsy on a very small area of the suspected tissue. Tests for the detection of cancer are then performed on that small excised area.
In the present case the entire breasts were removed and sent to the laboratory. It is within the province of the jury to believe or disbelieve testimony adduced at trial. If the jury believed that Mrs. Francisco submitted to the operation solely upon the representation that she had can-, cer, then they could have found that the defendant breached its duty of care. Therefore, we hold that the granting of a directed verdict in regard to the plaintiffs’ claim of mistreatment for the suspected cancerous condition was error.
We have reviewed the plaintiffs’ other contentions of error and find them to be without merit.
That portion of the directed verdict insofar as it bars recovery for the alleged malpractice concerning the treatment of fibrocystic disease is affirmed. That portion of the directed verdict insofar as it bars recovery for the alleged malpractice concerning the mistreatment of suspected breast cancer is reversed.
The case is remanded for new trial with the only issues to be litigated being (1) whether Mrs. Francisco’s consent was based solely upon the representation that she in fact had cancer, (2) and if so, then whether the treatment administered in the present case constituted a breach of the applicable standard of care.
We must point out that upon retrial the defendant is not barred from asserting as a defense that the surgery was performed for the treatment of fibrocystic disease.
Reversed. | [
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Per Curiam.
On May 23, 1977, defendant was convicted by a jury of second-degree murder, MCL 750.317; MSA 28.549. Sentenced to a term of from 20 to 30 years imprisonment, he appeals as of right.
The deceased, Clim Green, died as the result of a shotgun blast to his face. He was pronounced dead on April 1, 1976, nine days after he was shot. At trial, Climmie Allen, the deceased’s woman friend, testified that she was in his home on March 22, 1976. Green received two phone calls and at 7:30 or 7:45 p.m. he left his residence to meet one of the callers. Allen left and returned to her residence. At 8:15 p.m. she received a call from the hospital. Shortly afterwards she went there to visit the deceased. Green was covered with blood and had a towel over his head. He told Allen that the last phone caller had been a man named "Joe” who told Green to meet him at Campbell near Vernor. Green did so. Allen testified that deceased also stated, "Joe shot me”.
After the shooting Green staggered onto the front steps of the home of Kenneth Cantreraz. Cantreraz testified that he asked Green who had done it. Green responded by first stating David, then Joe, then he mentioned David once again and finally he said Joe three more times.
Police officer George Wilson interviewed Green at the hospital at approximately 9:15 p.m. The officer testified that Green was lying on his back with bandages on his face and blood dripping from it. Green was also spitting up blood. He told the officers what had happened. When asked by the officer to describe who shot him, Green spoke of a Mexican male, known to him as "Joe”, who was living on Cavalry south of Vernor Highway.
Officer Clyde Jones, partner of Officer Wilson, testified to participating in the interview of the deceased. He stated that the victim gave clear and coherent answers to the questions posed, pausing briefly after each question.
After Jones testified, defense counsel moved to strike the testimony of Officer Wilson, on the basis that the interview at the hospital did not fall within the "dying declaration” or "excited utterance” exceptions to the hearsay rule. The trial court denied the motion.
On appeal, defendant renews his argument that the testimony of Officer Wilson was hearsay and not recognized within any hearsay exception and therefore inadmissible. The trial court allowed the admission of the hearsay statement on the basis of the dying declaration exception and the excited utterance exception.
Four requirements must be met before a statement can be admitted as a dying declaration:
(1) The declarant must have been conscious of impending death.
(2) Death must actually have ensued.
(3) The statements are sought to be admitted in a criminal prosecution against the individual who killed the decedent.
(4) The statements must relate to the circumstances of the killing. See People v Franklin, 70 Mich App 343, 347; 245 NW2d 746 (1976).
The requirement in dispute in the case at bar is whether Clim Green was conscious of his impending death. "Consciousness of death” requires first, that it be established that declarant was in fact in extremis at the time the statement was made and, secondly, that the decedent believed his death was impending. People v Johnson, 334 Mich 169, 173; 54 NW2d 206 (1952).
On this record there is no evidence that anyone actually informed decedent of his critical condi tion. Nor did the decedent himself make any statements signifying his belief that death was imminent.
But a verbal indication that a person believes he or she is about to die is not necessary. People v Johnson, supra. The essential fact of declarant’s belief that death is impending may be proved like any other facts in the case in light of the existing and surrounding circumstances. People v Simpson, 48 Mich 474; 12 NW 662 (1882). The declarant’s belief may be shown by the apparent fatal quality of the wound, by statements made to the declarant by the doctor or by others that his condition is hopeless, and by other circumstances. McCormick, Evidence (2d ed), § 282, pp 680-681.
Despite the lack of a statement from decedent, we conclude from other circumstances that decedent knew death was imminent. The wound in the face which severed decedent’s eye, the blood, both dripping and being spit up, all point to an injury of fatal proportions. As the Supreme Court has stated:
"Some wounds certify death. Such a wound was given the sheriff. He was not asked if he was aware of impending death or informed that his death was imminent, nor did he express himself on the subject, so far as this record discloses. When the first bullet ripped its course through his vitals his hours were numbered. His stoical bearing, restraint of emotions and retention of opinion or knowledge on the subject of dissolution do not at all rule the admissibility of his statements. * * * To say he did not sense impending death would accord him less than ordinary intellegence.” People v Arnett, 239 Mich 123, 131-132; 214 NW 231 (1927).
Likewise, in People v Gorman, 252 Mich 603; 233 NW 430 (1930), the Court looked to the sur rounding circumstances to reach the conclusion that decedent believed his death was imminent.
"There is no testimony that deceased at the time of the statement and the writing believed he was in extremis or that he had been so advised. He died the ninth day after the shooting, and was conscious during a portion of the early part of the intervening time. He was an intelligent man and experienced in police work. Besides having several large scalp wounds and numerous abrasions and contusions about the forehead and face, he was suffering from two bullet wounds. One bullet had entered just above and a little in front of the right ear and the other in the right side of his neck. To presume that in his conscious moments he did not appreciate that he was in the shadow of death would be doing violence to common sense and common experience.” 252 Mich at 605.
See also People v Franklin, supra.
The police here were notified by physicians that decedent’s condition was serious. Witnesses testified that decedent’s eye had been shot out, his face badly battered. At the hospital, blood continued to drip from the face and when answering the police officer’s questions, decedent was continually coughing up blood. These circumstances lead us to believe that decedent, as a man of ordinary common sense, knew that his death was imminent. The lack of a direct statement from decedent is not decisive.
Nor are we persuaded that the length of time between the shooting and Green’s death — nine days — removes decedent’s statement from the class of dying declarations. The fact that the maker of the dying declaration lives for several days after making the declaration is not controlling in determining its admissibility. People v Johnson, supra, at 173. In People v Denton, 312 Mich 32; 19 NW2d 476 (1945), it was held that a declaration made by a decedent while he was being taken to a hospital almost immediately after being shot and while he was conscious of impending death would be a dying declaration notwithstanding that decedent lived for 11 days after being shot. Similarly, under the circumstances of the case at bar, the passing of nine days did not negate the nature of decedent’s statements as a dying declaration.
Even if decedent’s words are not admissible as a dying declaration, they are admissible as an excited utterance. An excited utterance will be allowed in evidence if (1) there is a startling occasion, startling enough to produce nervous excitement and render the utterance spontaneous and unreflecting; (2) the statement was made before there has been time to contrive and misrepresent; and (3) the statement relates to the circumstances of the occurrence preceding it. Rogers v Saginaw-Bay City R Co, 187 Mich 490; 153 NW 784 (1915), Rice v Jackson, 1 Mich App 105; 134 NW2d 366 (1965), People v Mosley, 74 Mich App 145; 254 NW2d 33 (1977).
Here those three requirements are met. The statements did relate to the circumstances of the occurrence preceding it. A shooting is a startling occasion which can produce nervous excitement. See Rice v Jackson, 1 Mich App at 111. The statements were made approximately 45 minutes to an hour after the shooting. A 40-minute time lapse was not found to be too great in People v Ivory Thomas, 14 Mich App 642; 165 NW2d 879 (1968), when the party was in great pain and unconscious part of the time.
Decedent in the instant case was bandaged but still bleeding. He was continually expectorating blood. While there was a 45-minute period be tween the shooting and the police interview, the circumstances surrounding the events indicate that defendant did not reflect, contrive or misrepresent. The time lapse was not extraordinary considering that defendant had crawled for help, awaited an EMS van and had been bandaged at the hospital. When the police saw him he was still bleeding profusely, his eye was shot out and he was spitting up blood. One may infer that decedent’s statements were made before he had time or mind to contrive or misrepresent the facts in his statements to the police. See Rice v Jackson, supra, and Stone v Sinclair Refining Co, 225 Mich 344; 196 NW 339 (1923), for other situations in which excited utterances have been allowed in evidence despite a lapse of time. The trial court did not abuse its discretion by admitting into evidence the hearsay testimony of Officer George Wilson.
Defendant also alleges that the trial court erred in failing to dismiss the charges against defendant in accordance with MCL 780.131; MSA 28.969(1), the 180-day rule. When an inmate is not brought to trial within 180 days of the date on which the Department of Corrections notifies the prosecuting attorney that defendant is serving a sentence for a prior conviction, MCL 780.131; MSA 28.969(1) in conjunction with MCL 780.133; MSA 28.969(3), acts to deprive the trial court of jurisdiction.
Several cases have considered when the statutory period begins to run. See People v Thomas, 21 Mich App 465; 175 NW2d 540 (1970). In People v Hill, 402 Mich 272; 262 NW2d 641 (1978), the Supreme Court propounded the following rules:
"We hold that the statutory period begins with the coincidence of either conditions 1 or 2 and condition 3:
"D The issuance of a warrant, indictment or com plaint against a person incarcerated in a state prison or under detention in any local facility awaiting incarceration in any state prison;
"2) The incarceration of a defendant in a state prison or the detention of such defendant in a local facility to await such incarceration when there is an untried warrant, indictment, information or complaint pending against such defendant; and
"3) The prosecutor knows or should know that the defendant is so incarcerated when the warrant, indictment, information or complaint is issued or the Department of Corrections knows or should know that a warrant, indictment, or complaint is pending against one sentenced to their custody.” 402 Mich at 280-281.
At the time of defendant’s arraignment on the instant charge, he was incarcerated on a parole violation. The coincidence of conditions commencing the statutory period in this case occurred on April 14, 1976, when the warrant was issued. The time elapsed between that date and the beginning of trial on May 18, 1977, is some 400 days. On the surface, the trial court would seem to have automatically lost jurisdiction.
But in interpreting the 180-day statute, the courts of this state have ruled that jurisdiction is not always lost if defendant does not go to trial within 180 days. The statute requires only that "good faith action” to commence proceedings be initiated within the six-month time limit. People v Hendershot, 357 Mich 300; 98 NW2d 568 (1959), People v Castelli, 370 Mich 147; 121 NW2d 438 (1963). When trial does not begin until well after the 180-day period has expired, the court may still have jurisdiction if the initial action was followed by reasonable diligence in proceeding to trial. People v Forrest, 72 Mich App 266; 249 NW2d 384 (1976).
From April 14, 1976, until November 15, 1976, a series of excusable delays occurred. For the period between the original trial date of November 15, 1976, and the actual commencement of trial on May 17, 1977, there is no reason given for the delay. The prosecution seeks to absolve itself by laying blame for the delay on the judiciary, arguing that for purposes of the 180-day rule the actions of the trial court (e.g., in adjourning trial) are not to be attributed to the prosecution.
This Court, however, has adopted a position clearly contrary to that asserted by the prosecution. In People v Forrest, supra, the Court held that delays attributable to the judiciary were chargeable against the people.
"In the case at bar the people have not made an affirmative showing of unavoidable delays which might justify this inaction. A mere recitation of the factor of a crowded docket, without more, cannot warrant visiting on the incarcerated defendant a longer imprisonment than might otherwise be in store. If congestion and delay result from inadequate court staffing or funding, the inevitable results of those delays must fall upon the people, who have the power to remedy court congestion.” 72 Mich App at 273.
In the present case, the people have not given an adequate explanation for the delay. In light of Forrest, the reason proffered, the administrative procedures of the court, fails to sustain the people’s burden of making "an affirmative showing of exceptional and unavoidable circumstances which hamper the normally efficient functioning of the trial court”. Forrest, supra at 273. Such a reason (adminstrative procedures), " 'should be weighted less heavily [against the government] but nevertheless should be considered since the ultimate responsibility for such circumstances must rest with the government rather than with the defend ant.’ Barker v Wingo, 407 US 514, 531; 92 S Ct 2182, 2192; 33 L Ed 2d 101, 117 (1972)”. (Footnote omitted.) 72 Mich App at 271.
Guided by Forrest, we hold that the inexcusable delay in this case violated the statute. Therefore, the trial court had no jurisdiction over defendant. The charges are dismissed.
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Allen, P.J.
Defendant was charged with and convicted of criminal sexual conduct in the first degree — sexual penetration of another while aided or abetted by one or more other persons and by the use of force or coercion to accomplish the sexual penetration, MCL 750.520b(l)(d)(ii); MSA 28.788(2)(l)(d)(ii), and armed robbery, MCL 750.529; MSA 28.797. Defendant was jointly tried before a jury with his accomplice and codefendant, John Denny, who was also found guilty and whose appeal is pending in this Court. Sentenced to 50-75 years in prison on the criminal sexual conduct conviction and life imprisonment on the armed robbery conviction on July 8, 1976, defendant appeals of right.
The complaining witness and victim was picked up by defendant and his accomplice while she was hitchhiking. She was taken to a building where she was forced to participate in acts of sexual intercourse and fellatio with both defendants. In the course of her abduction and the assault upon her, the victim was struck and injured. Prior to releasing the victim the defendants took, at knife-point, what money she had. The victim also believed that at least one of her assailants was armed. At trial defendant did not deny sexual activity with the complaining witness, but claimed that she consented.
On appeal, defendant claims the trial court erred reversibly by admitting into evidence two prior similar convictions. Defendant also claims reversible error in the trial court’s failure to give requested jury instructions on nine necessarily included lesser offenses as mandated by the decision in People v Ora Jones, 395 Mich 379; 236 NW2d 461 (1975).
I. Impeachment by Prior Similar Convictions
Prior to trial, defense counsel moved that the court issue a protective order prohibiting cross-examination of defendant regarding prior convictions for first-degree criminal sexual conduct. The motion was denied for the same reason the court denied an identical motion made on behalf of codefendant Denny. Defendant took the stand and on cross-examination by the assistant prosecutor was asked whether just three months prior to trial he had pled guilty to two counts of criminal sexual conduct in the first degree. Defendant answered yes. In instructing the jury the trial court instructed that defendant’s admission of his prior convictions was to be considered only as it affected his credibility and not as evidence of guilt of the offense charged.
The trial court properly recognized it had discretion to admit or exclude the prior convictions under the standards set forth in People v Jackson, 391 Mich 323; 217 NW2d 22 (1974). The problem is that the trial court then applied the standards upside down. In other words, the court made the same error it made in People v Cash, 80 Mich App 623; 264 NW2d 78 (1978). Impeachment by evidence of convictions for similar crimes should be admitted with caution. Id. at 627. The more similar the prior conviction to the offense charges, the greater is the amount of caution required. People v Crawford, 83 Mich App 35; 268 NW2d 275 (1978). Unlike Cash, the error cannot be considered harmless in the present case. There, the defendant denied being convicted of the similar crime and consequently the jury did not know, as was admitted here, that the defendant had committed the act before.
Accordingly, we reverse defendant’s convictions and remand for a new trial. Upon retrial the court should weigh the prejudicial effect versus the probative value of the prior conviction as set forth in Jackson, supra, and as further explained in Cash and Crawford, supra. See also, MRE 609. Since upon retrial defendant may again request lesser included offense instructions, we proceed to discuss this exceedingly complex issue.
II. Attempt Instructions
The trial court instructed the jury on first-degree criminal sexual conduct, MCL 750.520b(1)(d)(ii); MSA 28.788(2)(l)(d)(ii), third-degree sexual conduct (penetration accomplished by force or coercion), MCL 750.520d(l)(b); MSA 28.788(4)(l)(b), armed robbery, MCL 750.529; MSA 28.797, unarmed robbery, MCL 750.530; MSA 28.798, and larceny from a person, MCL 750.357; MSA 28.589. Defendant’s counsel requested additional instructions on criminal sexual conduct in degrees II and IV, attempt instructions on all four degrees of criminal sexual conduct, and attempt instructions for each of the three theft offenses. The trial court refused to give the instructions on criminal sexual conduct II and IV because sexual penetration as opposed to sexual contact was admitted by the defendant and therefore, according to the court, there was no factual basis to give the instructions. The court also ruled that there was no factual basis upon which to give any of the requested attempt instructions.
Two classes of lesser included offenses are recognized in Michigan — necessarily included lesser offenses and cognate lesser offenses. People v Ora Jones, supra. The Supreme Court in Ora Jones described a necessarily included lesser offense as one which must be committed whenever the greater offense is committed. Under Ora Jones, the evidence will always support conviction of a necessarily included lesser offense if it supports conviction of the greater offense, and refusal to give a requested instruction on such an offense is error. In Ora Jones, a cognate lesser offense was described as sharing several elements with and as being of the same class or category as the greater offense, but it may contain some elements not found in the greater offense. In order to be a lesser included cognate offense, the charged offense must provide fair notice to the defendant that he will have to defend against the lesser offense. A cognate offense has a common statutory purpose and protects the same societal interests as the greater offense. If evidence is presented at trial which would support conviction of the cognate offense, then an instruction on that offense must be given if requested.
In the case at bar the trial court instructed on unarmed robbery and larceny from a person which are necessarily included lesser offenses, and such a requested instruction must be given. People v Lovett, 396 Mich 101; 238 NW2d 44 (1976). Since an attempt to commit an offense is simply a failure in the perpetration of the offense, MCL 750.92; MSA 28.287, it is readily apparent why an attempt is also necessarily included in the greater offense. All of the elements of the attempt are the same as those of the greater offense except some act which is not completed. Under the Ora Jones reasoning, the fact that all of the evidence produced at trial indicated a completed armed robbery is an insufficient reason for not instructing on necessarily included lesser offenses, since the jury is the sole judge of all of the facts and can choose, without any apparent logical basis, what to believe and what to disbelieve. People v Chamblis, 395 Mich 408, 420; 236 NW2d 473 (1975).
The same logic supporting the decision in Lovett should apply to a requested attempt instruction to unarmed robbery and larceny from a person. Hence, we conclude that the attempts to unarmed robbery and larceny from a person are necessarily included lesser offenses to their greater, completed offenses. Since the offenses of unarmed robbery and larceny from a person are necessarily included lesser offenses of armed robbery, the lesser attempt offenses of these two theft offenses are also necessarily included lesser offenses of armed robbery. It was consequently error to refuse to give the requested instruction to attempted unarmed robbery, attempted larceny from a person, and attempted armed robbery.
III. Criminal Sexual Conduct Instructions
We further find that the lower court erred in refusing to instruct on the necessarily included lesser offenses of second-degree criminal sexual conduct (CSC) and attempted first- and second-degree CSC. Defendant was charged under subsection (d) of criminal sexual conduct in the first degree, that is, an actor and aider or abettor used force or coercion to accomplish sexual penetration. MCL 750.520b(l)(d)(ii); MSA 28.788(2)(l)(d)(ii). This subsection, along with all of the other types of first-degree criminal sexual conduct, is carried through to second-degree criminal sexual conduct. The only difference between the two degrees is that sexual penetration must be accomplished for first-degree CSC, whereas only sexual contact need be engaged in for second-degree CSC. Since all of the elements of CSC II are the same as those of CSC I except for penetration, and there cannot be penetration without contact, second-degree CSC is a necessarily included lesser offense of CSC I. People v Secreto, 81 Mich App 1; 264 NW2d 99 (1978), People v Thompson, 76 Mich App 705; 257 NW2d 268 (1977).
There is no category of third- or fourth-degree criminal sexual conduct which corresponds to sub section (d) of first- and second-degree criminal sexual conduct. This is also true for several of the other types of first- and second-degree sexual conduct. For these types of CSC I and II, including subsection (d), neither CSC III nor CSC IV are lesser included offenses, necessarily included or otherwise. People v Secreto, supra. Consequently, there was no error in refusing to instruct on CSC IV and attempted CSC III or IV since these offenses are not lesser included offenses of CSC I and II subsection (d).
The CSC statute represents the results of considerable legislative debate. The Legislature did not provide a multiple assailant provision in CSC III or IV. Neither CSC III nor IV was designed to provide a penalty for this type of criminal sexual conduct. A defendant charged under the multiple assailant provisions of the CSC statute would not receive fair notice of possible prosecution under CSC III and IV. CSC III and IV do not protect the interests of society against subsection (d) type offenses. We have considered and rejected the argument that the "force or coercion” provisions of CSC III and IV automatically make them lesser included offenses of subsection (d) of CSC I and II. These provisions are better considered as the intended, lesser included offenses subsection (f) of CSC I and II, for they are basically the same offense minus the element of injury and they protect the same societal interests. This construction maintains the integrity of the legislative scheme.
Upon retrial, a CSC II instruction if requested should be given. Since there must be contact to have penetration, People v Thompson, supra, and this is the only distinguishing factor between first- and second-degree CSC, second-degree criminal sexual conduct is a necessarily lesser included offense of first-degree criminal sexual conduct. We also hold that upon retrial, attempt instructions to CSC I and II, if requested, should be given. As noted earlier, an attempt is necessarily included in the completed offense.
In summary, we reluctantly conclude that the Supreme Court’s holding in Ora Jones and Lovett requires this Court to hold that in the present case the trial court erred by refusing to give six of the nine requested instructions. Our reluctance to so hold stems from what we perceive will be the confusion resulting from requiring the jury to rule on a multitude of added charges. In the instant case the jury will be required to pass on the four charges given by the trial court plus the six additional charges required under this opinion. Since defendant was tried jointly with an accomplice the jury, if properly instructed, is asked to pass on 20 charges. In Ora Jones, only one lesser included offense was involved. Conceivably, the Supreme Court did not foresee the practical problems flowing from strict adherence to the majority opinion in Ora Jones.
Reversed and remanded for new trial.
D. R. Freeman, J., concurred.
People v Denny, 86 Mich App 40; 272 NW2d 332 (1978).
Responding to the motion of codefendant Denny, the Court stated: "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.” (Emphasis supplied.) Responding further to the motion of defendant Green the court stated: "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.” (Emphasis supplied.)
Further guidelines for the admissibility of prior convictions will be found in the recently adopted Michigan Court Rules — 1978 Evidence Rules. See Supplemental Pamphlet, Proposed Rules of Evidence with Committee Notes, West Publishing Co. (1977), pp 40-44.
"MR. SALLADE [Defendant’s Attorney]: * * * I also would indicate that we would like instructions as to the attempted commissions of all these offenses, not just the commission but the attempted as to all of them, and also all of the included offenses under the statute dealing with criminal sexual conduct.
"THE COURT: Tell me what they are, that I didn’t give?
"MR. SALLADE: The second and the fourth.
"THE COURT: So you want the second and the fourth?
"MR. SALLADE: I want them in regardless of the testimony, and also we want in attempted armed robbery, attempted unarmed robbery, attempted larceny from a person, and attempted on all four of those categories of the sexual conduct statute as well.”
The trial court did instruct on CSC III. Since this was not a charged offense or lesser included offense it was not necessary to instruct on attempted CSC III.
There may be some discussion whether the statutory scheme for criminal sexual conduct contains its own attempt provisions. See People v Denmark, 74 Mich App 402, 416; 254 NW2d 61 (1977). We believe that there may be a criminal effort to sexually penetrate or to sexually contact which falls short of the completed act of penetration or contact. Thus, we find there can be attempts to any degree of criminal sexual conduct. This would be consistent with the reasoning prior to the enactment of the CSC statutes. See People v Terry, 80 Mich App 299; 263 NW2d 352 (1977) (attempted statutory rape), People v Herbert Ross, 73 Mich App 588; 252 NW2d 526 (1977) (attempted rape). | [
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Per Curiam.
Defendant was convicted by a jury of felony murder in violation of MCL 750.316; MSA 28.548. After sentence to life imprisonment, he appeals as of right.
The felony-murder charge was based upon an allegation that defendant perpetrated or attempted to perpetrate a rape of a 14-year-old victim.
Prior to trial, defendant moved to quash the information on the grounds that the crime of rape had been abolished as of April 1, 1975. Defendant argued that the information should have charged murder in the commission or attempted commission of criminal sexual conduct in the first degree, taking the position that the criminal sexual conduct statute operated to repeal the previous rape statute and that, therefore, at the time of this alleged offense, namely, August 27, 1976, there was not any crime of rape. The trial court denied this motion, holding that rape still has a common-law meaning and that, therefore, the felony murder here charged against defendant involves the common-law definition of rape. We do not believe that in enacting the criminal sexual conduct statute the Legislature intended to repeal or modify the felony-murder statute. If the Legislature had wished to modify the felony-murder statute so as to provide that a charge should describe the offense of criminal sexual conduct rather than rape, it would have been a simple matter to so provide in the statute. For example, when the Legislature changed the legal age of majority to 18, the Legislature specifically referred to those statutes which were affected by the new legal age law. In this case, we conclude that the Legislature did not intend to change the felony-murder statute. Conse quently, we do not believe that the finding of the trial court in this regard was clearly erroneous.
In instructing the jury, the trial judge defined rape in traditional terms of common-law rape as has been customary in felony murder-rape cases. Althoúgh the victim was only 14, no reference was made to statutory rape. Defendant argues that it was reversible error to instruct regarding rape when the rape statute had been repealed. Consistent with our conclusion regarding legislative intention in enacting the criminal sexual conduct statutes, we reject this argument. The Legislature did not amend the felony-murder statute. The trial judge’s instruction regarding common-law rape was not clearly erroneous.
Defendant makes the novel argument that he had a constitutional right to make a complete statement to the police, on the theory that it would have constituted evidence favorable to him regarding alleged extensive drug involvement going to his capacity to entertain the requisite intent.
A police officer testified that when defendant said he wanted to make a statement, he looked "tired” and "irritated”. The officer then told defendant he would have a prosecutor and reporter available the next morning if he wanted to make a statement. On the following morning, defendant attempted suicide in the officer’s presence, during which he volunteered the statement, "Let me kill myself. I killed her.”
The record indicates no error. Like counsel for appellant, we are not aware of any authority supporting a view that a defendant has a constitutional right to confess or make a statement. Neither are we inclined to fault the police officer. The statements defendant did make were correctly ruled admissible, since they were spontaneous, volunteered and not the result of custodial interrogation.
Last, defendant claims the prosecutor made improper closing argument by asserting, "I think the defendant knew what he was doing at the time”. While it is improper for the prosecutor to express a personal belief in the guilt of the defendant, it is not erroneous for the prosecutor to comment on the evidence and to suggest for the jury inferences from that evidence. In this case, the statement to which defendant objects was inextricably interwoven with references to the evidence. The addition of the words "I think”, the fact there was evidence to support the prosecutor’s claim and the further fact that it was in response to defense counsel’s assertion that defendant had not known what he was doing, make it clear that defendant was not denied a fair trial.
Affirmed.
MCL 722.53; MSA 25.244(53).
People v Leffew, 58 Mich App 533, 536; 228 NW2d 449 (1975), People v Coppernol, 59 Mich App 745, 750; 229 NW2d 913 (1975).
People v Caldwell, 78 Mich App 690, 692; 261 NW2d 1 (1977).
People v Page, 63 Mich App 177, 179-180; 234 NW2d 440 (1975). | [
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Sherwood, J.
This is an action on the case to recover damages for an injury sustained while crossing a bridge over a culvert, with a traction-engine, in the public highway, in the township of Keene, in the county of Ionia, on the 2d day of October, 1882. The bridge was built in 1877, and was about fourteen feet wide and supported by four stringers, three of which were rock elm and the other beech. The bridge was examined in June preceding the accident, and the beech stringer was then put in new. This highway liad been in use thirty years, and was one of the main traveled thoroughfares in the township. The plaintiff came from the west, on a down grade, till he reached the bridge, with the engine and a tank-wagon, partly filled with water, attached. A pair of horses and steam were used in hauling the engine and tank-wagon, and the plaintiff occupied a seat by the side of the boiler, and was driving the team when the traction-engine came upon the bridge, breaking the south stringers, near the west bank, dropping that side of the bridge about thirty inches. When the plaintiff felt the bridge going down, he attempted to escape by jumping from his seat, and in doing so his left foot slipped off the foot-rest, caught in the traction-cliain and was drawn into a cog-wheel, and so-injured as to render amputation below the knee necessary. No steam was used in moving the engine when it came upon the bridge; the horses being sufficient to move and control it on the down grade.
Upon the trial the plaintiff’s claim was that the bridge was not reasonably safe and fit for travel, and that the officers whose duty it was to see that a safe bridge was provided, of sufficient strength and durability for the passage of the plaintiff’s threshing-machine and engine, and kept in repair, did not exercise ordinary care and diligence in the performance of such duty, after due notice of the defects complained of, and that he received his injuries in consequence of such official neglect and want of reasonable care. The defense was that the bridge was reasonably safe and fit for travel, and was of sufficient strength for such loads as it was designed to sustain and ordinarily passed over it; that it would not have given way but for the carelessness and negligence of the plaintiff in suddenly driving thereon close to one side with his extraordinary load propelled by steam. Upon these two theories the case was tried, resulting in a verdict of $4QOO for the plaintiff, and the defendant brings error.
There does not seem to be any serious contest as to how the injury occurred, nor as to the duty of the township in a case where its officers have in their charge and care the construction and maintenance of bridges, ñoras to the liability of the township if the proper officers carelessly or negligently omit or fail to perform such duty after having sufficient knowledge or notice of the defective condition of a bridge, if injury ensues. Neither do I think it can be seriously or successfully maintained that it' is not the duty of the township, after bridges have been built, to maintain them of sufficient strength and durability to secure the safe passage of loads as heavy as was that of the plaintiff in this casé.
The duty required of township officers in the premises, and the knowledge or notice necessary to require them to rebuild or make necessary repairs, and the character of the negligence by them, raising a liability on the part of the township, resulting from such negligence, were very forcibly discussed and clearly presented by Chief Justice Graves in Medina v. Perkins 48 Mich. 67. The case was, in many of its features, very similar to the present.
That the bridge in this case was defective, I think very clearly appears from the undisputed testimony, giving the result of the examinations made after this injury occurred. It is claimed, however, that the township officers had no sufficient knowledge or notice of the defect; that actual notice of such defect to the officers was required, and the lapse of reasonable time to make repairs, after the same was received, to create liability on the part of the township. Upon this subject Chief Justice Graves says: “ A township must know and act through its officers, and the mode and range of choice of these officers is prescribed by law, and it would be outrunning the Constitution and the course of legislation under it to expect greater qualifications than the average of township communities possess. Through its officers a township may know of the existence of a defect in a way or bridge, and where such knowledge is gained the township may become liable for negligence in not repairing. On the other hand a defect may exist and be unknown and the town still be liable on the ground that the prime fault consists in being ignorant; it being a clear principle that a want of knowledge may in given circumstances imply a want of due care. The general duty of a township is to exercise through its officers a reasonable supervision over its ways and bridges, and within fairly practicable limits to be watchful of their condition and trustworthiness, and see that they are kept in a reasonably safe condition for public travel. Its officers may not ignore the dictates of common sense and the lessons of ordinary experience and refuse'to see or refuse to heed what others see and others understand. When it is generally known that a bridge has become decrepit, or when a bridge has stood so long that there is much suspicion of it, the officers of the township may not disregard the warning conveyed by these circumstances and think to excuse their neglect to take action on the ground of having had no actual notice of a dangerous infirmity.” Medina v. Perkins 48 Mich. 71, 72.
In these views I fully concur. It is contended, however, by counsel for defendant, that the evidence of notice ox-knowledge on the part of the plaintiff was impx-operly received; that it consisted of statements made by the commissioner to third pei-sons, after the injury complained of had occurred, and not while in the discharge of his official duties. Numerous objections were made to this class of testimony, and exceptions taken to the- rulings of the Gourt in admitting it. The circuit judge, also, in his charge referred to this testimony as px-oper for the jury to take into consideration in determining the question whether the defendant did or did not have notice or knowledge of the defect in the bridge. I think the testimony was improperly received, under the objections taken, and its admission and the chai-ge of the circuit judge wex-e error. It is true, there was other evidence in the case tending to show knowledge of the defects claimed on the part of the commissioner, but we have no means of knowing that the erroneous testimony was not considered by the jury in finding sufficient notice to make the defendant liable; and it would be um-easonable to suppose they did not consider the erroneous testimony after having had. their attention especially called to it by the judge in his charge.
In this case it appears -that the accident occurred in consequence of the rotten condition of the three stringers, and nothing appears in this record showing this to be, in any of its circumstances, an exceptional case, or that the decay was any more than might have been expected from natural causes, taking into consideration all the facts. And such means should be employed by the officers from time to time, in making their examinations, as usually disclose the defects to be expected. Rapho v. Moore 68 Penn. St. 404.
It is not necessary, in order.to charge the township for the injury received, to show that the commissioner of highways, or the overseer, had previously been informed by some person of the defects in the bridge, or that they or either of them had actually seen the bridge, or had knowledge of the defects. It is made their special duty, when these defects exist, or are likely to exist, to examine and ascertain them, and immediately make the necessary repairs. It is only necessary for an injured party to show upon the subject, by proper testimony, knowledge on the part of the officers of such a state of facts as reasonably and necessarily make it their duty to examine and act, in order to protect the traveling public, and their neglect so to do. Whether or not a new bridge is necessary may depend upon different considerations, and the question is one upon which men may widely differ, and may or may not be under the control of the overseer. But when a bridge has once been built, there can be no question about the duty of the proper authorities to keep it in repair. Seasonable care only is required of the officer of the town. And that may be relied upon for the purpose. Such care requires the use of the ordinary and proper means in detecting defects, and when they are disclosed, either by such means or by other notice of their existence, diligence in making the necessary repairs.
The court charged the jury in the following language upon the subject of negligence of the plaintiff: “ Did the negligence of the plaintiff contribute to the injury ? If it did, he can not recover. That may seem to be not entirely a just rule, but it is the law, whether it be just or not.” This charge is excepted to by defendant’s counsel. In a case depending upon preponderance of evidence only, when the contest upon the facts is close, the views of the trial judge as to the justness of the law to be applied, when given as in this case, may have some influence with the jury in determining' the weight they will give to the testimony tending to establish the facts necessary to be found to make the law applicable, and for that reason, if no other, had better be omitted.
The plaintiff’s steam-engine was ordinarily propelled by steam, as well as moved by horses, when passing from one job to another. It was claimed by defendant that in descending the down grade and approaching the bridge the plaintiff went too fast; that he had the steam on, and that this contributed greatly to the downfall of the structure. When the plaintiff was on the stand, his counsel showed by him that before they got to the bridge — indeed, at the summit of the grade — he ordered his engineer to shut off. the steam, and that the engineer told him he had done so, and that the machine went down the grade and to the bridge controlled by the horses alone, which plaintiff was driving. This statement of what took place was objected to by defendant, and so much as purported to be the statements of the engineer was stricken out, and the statement of plaintiff allowed to stand. This was proper. It was part of the res gestee of of the transaction, and it being at the very time and occasion the injury, it is difficult to say why what both said was not proper for the same reason.
The defendant’s eighteenth request was refused, and an exception taken to the ruling. The request was as follows: “ If the jury find that the plaintiff had previously had a guard to prevent the foot of the driver from slipping off the foot-rest, or coming in contact with the traction-chain, and afterwards removed it before the accident, or if the plaintiff was aware that without some sort of protection there was danger upon- any sudden jolt of the engine of the foot slipping off the foot-rest and getting caught in the traction- •chain, then it was negligence in the plaintiff not to have such guard or protection, and your verdict must be for the defendant.” I think this request should have been given. There was some testimony in the case tending to show the facts included in the request,-and we cannot say what view the jury took of them. The question of negligence on the part of the plaintiff was in the case, and the defendant was entitled to have the jury pass upon his theory of every branch of it; and the request should have been given.
No other errors appear in the- rulings or charge of the court requiring further discussion; but for those mentioned
The judgment must be reversed, and a new trial granted.
The other Justices concurred in the result. | [
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Cooley, C. J.
In this cáse proceedings were begun in justice’s court in February 1883 to enforce a log lieu. Logs were attached, and service of the writ was returned as made on Simpson O. Fisher, as claiming an interest in the logs. Defense was not made in the case, and judgment was rendered for the plaintiff. In February 1884 on notice served on Shepard and Lyon, who were said to be attorneys for Alfred Mosher, who claimed the logs, and also upon another person said to be agent for Mosher, the plaintiff moved for leave to amend the return by substituting Spencer O. Fisher for Simpson O. Fisher as the name of the person upon whom service was made. The motion, though opposed, was granted. Mosher applied to this Court for a mandamus to compel this action to be set aside, but the Court ordered a certiorari instead, deeming that the remedy for which the party bad made the proper showing. The amendment was unauthorized. Nobody is standing attorney for a party to a judgment in justice’s court, and no one is agent for a party to such a judgment and entitled to receive service of notices for him without special authorization. No such authorization appears in this case, and the justice was without jurisdiction to hear the motion.
No other question is properly before us. The proceedings in making the amendment must be quashed with costs.
The other Justices concurred. | [
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Sherwood, J.
In this case the demurrer to the bill of complaint filed is both general and special, and the order appealed from overrules the demurrer, with leave to answer. We cannot consider the points made in the briefs of counsel. An appeal does not lie in such cases. It is to an order over ruling a general demurrer only that an appeal lies to this Court. See Pub. Acts 1883, p. 47.
The appeal will therefore be dismissed and the case remanded, but without costs.
The other Justices concurred. | [
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Champlin. J.
The plaintiff in this case seeks to recover possession of certain premises leased to defendant, under How. Stat. § 8295, subd. 1, which reads as follows:
“ The person entitled to any premises may recover possession thereof in the manner hereinafter provided, in the following cases: First. When any person shall hold over any lands or tenements, after the time for which they are demised •or let to him, or to the person under whom he holds, or contrary to the conditions or covenants of any executory contract for the purchase of lands or tenements, or any lease or agreement under which he holds, or where rent shall have become due on any such lease or agreement, and demand of the rent or possession of the premises is waived therein, in writing, and not included in the printed form of the lease or agreement.”
The parties requested the circuit judge, before whom the cause was tried without a jury, to file a written finding of facts, and his conclusions of law thereon, which he did, and they are embodied in the bill of exceptions, and are as follows:
“ 1. That the complainant in this cause was, at the date of the institution of the cause, the owner in fee of the certain premises described in the complaint herein, and was the •owner of the said premises at the time of the original letting ■of the same, as hereinafter stated.
2. That on or about the first day of November, 1878, the •said complainant leased the said premises to the said defendant by a verbal agreement, and that said defendant- thereupon entered the possession and has since occupied the same.
3.. That the terms of said agreement were that the said -defendant should occupy said premises from month to month.
4. That as a condition of said occupancy the sum of fifteen dollars per month, should be paid said complainant by said defendant as rent on the first day of each and every month in advance.
5. That the said defendant occupied said premises under such agreement from month to month, and that such agreement, during the continuance of such occupancy, was not, changed, altered or modified.
6. The rent for the month of July, 1883, was not paid in accordance with such agreement, and that such rent remained unpaid at the time of the commencement of this suit, to wit, on the 1,1th day of July, 1883.
7. That said complainant and defendant, both previous and subsequent to July 1st, had been negotiating for a new lease of said premises after July 1st, 1883, at an increased rent, but-that said parties could not agree as to terras, and that the proceedings herein were commenced immediately after complainant ascertained that he could not reach any agreement with said defendant.
8. That said negotiations were had in view of extensive-repairs put upon said premises in May, 1883, which largely increased the rental value of the premises, and that such negotiations commenced in May, 1883, and continued until the time of commencement of this suit.
9. And I do find as conclusions of law as follows:
1st. That said tenancy expired on the 30th day of June, A. D., 1883, and that such tenancy was not thereafter continued, renewed, recognized or kept in force.
2d. That at the time of the institution of this suit the said defendant was in possession of the lands and tenements described in the complaint in this cause, and that said defendant then held the same unlawfully and against the rights of said complainant.
3d. That said complainant is entitled to the restitution of' said premises, with costs.
And in response to the request of defendant’s counsel for special findings of facts, so far as they may be material or necessary, I do find as follows: That defendant held over said premises after July 1st, until the commencement of this suit, without any right so to do, and that complainant never assented to such holding over, and did not waive his right to-proceed or recognize any tenancy after said July 1st, 1883;. that defendant’s occupancy of the premises after July 1st was under the contract hereinbefore found, which had not been altered, waived, or modified; that the tenancy was from month to month with rent payable on the first day of th& month, strictly in advance; that no written notice was given him for the termination of the tenancy, but that the parties commenced negotiations in May for a new tenancy on a new basis, which had not been effected, and that defendant had promised or offered an increase of rent if he might be permitted to stay after July 1st, which was not accepted by complainant; that rent for June was not paid until July 3d by defendant, and through his default, but that complainant did not recognize an existing tenancy after July 1st; that there was no tenancy from year to year.”
Exceptions were taken and filed to the findings of law by the defendant’s attorneys as follows:
“ To the first finding, that said tenancy expired on the 30th day of June, A. D. 1883, and that such tenancy was not thereafter continued, renewed, recognized or kept in force; to the second finding, that at the time of the institution of the suit the said defendant was in possession of the lands and tenements described in the complaint in this cause, and that such defendant then held the same unlawfully and against the rights of said complainant; and to the third finding, that said complainant is entitled to restitution of said premises, with costs.”
The bill' of exceptions embraces exceptions taken during the trial to the reception of testimony, and the defendant’s attorneys have assigned error in this Court as follows:
“(1) In rendering a judgment for complainant on the evidence in said cause; (2) in rendering judgment for complainant on the facts found; (3) in admitting evidence of repair; (4) in admitting complain ant’s testimony that defendant before Commissioner Flowers swore he had never received Exhibit B; (5) in finding that the tenancy expired June 30, 1883, and that there was no tenancy after that date; (6) in finding that this was a tenancy from month to month; (7) in finding that the rent was payable in advance; (8) in finding that defendant was entitled to no notice to quit, and was in default when this suit was commenced, and subject to expulsion ; (9) in refusing to find the findings of law requested by defendant.”
The only question in this case is whether the defendant was entitled to notice before his lease could be terminated? The plaintiff claims that while the holding was from month to month, it was upon condition that the rent was paid each month in advance, so that such payment became a condition precedent to the vesting of any estate in the defendant for such month; and upon failure to pay such rent in advance the tenancy ipso facto ceased, and if the tenant remained in possession it was an unlawful holding over, which entitled him to obtain possession by summary proceedings under the statute. In this view of the case, it became a material question of fact whether in the contract of renting the payment in advance was made a condition precedent to the enjoyment of the estate. The learned 'judge so found in his fourth finding of facts, and we are bound to hold this finding of facts correct and conclusive, if there was any evidence in the case tending to sustain it as a whole. But as the evidence is all given in the record, if there be none to sustain this finding, or if any particular and material part of this finding be without evidence to sustain it, then the finding thus far is not binding, and must be held erroneous. Hubbardston Lumber Co. v. Bates 31 Mich. 164.
We have searched the record in vain to find any evidence tending to prove that the payment of the rent in advance was a condition precedent to the enjoyment of the estate. We quote from the record all the testimony having any possible bearing upon the point. The plaintiff was called as a witness in his own behalf, and after stating that he was the owner of the premises, and that defendant was in the occupation of them, and had been for about five years, testified as follows:
“ Question. Who made the arrangements about going in ?
Answer. I did. In the first place he spoke to Mr. Clemens about renting it, and I asked him who wanted to rent it, and he said Mr. Scheich. I says, He is all right, then I spoke to him.
Q. What was said between you and Mr. Scheich?
A. That he would have to pay fifteen dollar’s a month, monthly, in advance. He was satisfied, of course.
Q. Fifteen dollars a month, in advance ?
A. Yes, sir.
Q. And did he go in under that arrangement ?
A. Yes, sir.
Q. Do you remember anything being said at any time after that in which any allusion was made to the fact that it was payable in advance; any reference made to it 2
A. Well, he always paid it regularly; but when I was sick, my clerk, you know, I guess he couldn’t, — he got behind when I was sick.
Q. Was there any time when you remember of, when Clemens or anybody was present, in which it was referred to that it was payable in advance 2
A. I told him it was payable in advance. He has told me lie was a little hard up for money; he couldn’t pay that. Yes, Clemens was present in his own saloon. I said the rent was to be paid in advance.
Q. You repeated it over to him 2
A. He was a little hard up for money. Mr. Scheich then paid the last, and so on. Mr. Clemens and Mr. Scheich were present, as near as I can remember.
Q. That talk was to the defendant 2'
A. Yes, sir.
Q. You repeated that2 I understand that you repeated over that fact in dunning him, that he should have paid it 2
A. Yes, sir. .
Q. How long was that after he had got behind in that way that you talked to him about it 2
A. I guess it must have been two or three — I couldn’t tell you, — probably two years, or two and a half, and he commenced not paying in advance, regularly.
* # * * * «■
Q. You have already testified that you had an arrangement with Scheich to pay in advance fifteen dollars a month about the first of November, 18Y8. State to the court whether that arrangement was ever in any way modified or qualified by you; whether you have had any other arrangement with him.
A. Never was mentioned whatever in any way. Never have heard a word in any way.
Q. Some of your receipts are the latter part of the month and the first of the next month; state how that happened, when you received them yourself.
A. I was sick sometimes, three or four times, so finally my clerk collected them. He always paid me, mostly always, in advance, when I collected. He keeps the receipts at home, so he always fetched them back.
Q. Here are three or four.
A. We were always good friends together. I took the money when I could get it.
Q. Mr. Miehenfelder, being on the stand, says he had arrangement with you to rent "for fifteen dollars a month. I cannot tell exactly what he says, but sometimes he says, from month to month, and sometimes he says from year to year; what do you say about it, any way ?
A. "Well, tell you all I can ever recollect; we talked once.
Q. What was said between you ?
A. There was talk, of course. ITe says, ‘ Scheich wants, it.’ I says, 'I am .satisfied with Scheich. Let him pay the rent by the month; ’ that is all.
Q. Did you ever have any talk with Miehenfelder about renting it to him — Miehenfelder, himself ?
A. I couldn’t recollect.
Q. LIow long was Miehenfelder to have this place ?
• A. I never spoke to him about having it any length of time.
Q. No agreement made as to time ?
A. Never.
Q. What do you mean to say when you say there was no agreement as to time, because you have testified to it once; what do you mean when you say there is no agreement as to time ?
A. No; it was by the month, — from month to month.
Q. Then there was an agreement as to time ?
A. That was the understanding.
Q. No agreement, you mean, as to any particular time, except from month to month?
A. That is all.
Q. How long was he to hold it from month to month ?
A. If he liked it, he could hold it one, two or three months, it is my opinion.
Q. Was there any arrangement made how long he could hold it ? It was paid by the month ?
A. By the month, and after that from month to month ; we had an agreement to make a lease; we give him a lease; and if there is no lease made, I rent it from month to month or else the man has a lease.”
Albert Clemens was sworn for the plaintiff and testified to. a conversation with Mr. Hilsendegen, in the presence of Mr. Scheich, as follows :
“ Mr. Hilsendegen was over at Scheich’s; I was with him. We went over in the evening, I think. Mr. Hilsendegen said to me that all the rents — in Scheich’s presence — that all the rents were payable in advance, and that I should collect his rents of all the tenants; and in the presence of Mr. Scheich it was said in advance, and that was the agreement, and it always had been so, and it was so in his case, too. I quit working for Mr. Hilsendegen about four years ago. Mr. Scheich at that time was not in very long. I don’t remember Mr. Scheich saying anything about it. I suppose he understood that it was so. I don’t think he was behind at that time. It was just a reference made by Mr. Hilsendegen about how all his payments for rent were made. I afterwards collected from Scheich, among others.
Q. Will you state whether, after getting that instruction from Mr. Hilsendegen, in the presence of Mr. Scheich, whether you called on him, and, if so, what time in the month, for rents ?
A. I called frequently when the rent was due; sometimes the first, sometimes the third, sometimes later; generally the forepart of the month. Sometimes Mr. Scheich wouldn’t have it just then.
*******
“ It was about two years ago in October that I left Mr. Hilsendegen. It was quite a while before that, that conversation we had; about three or two years before that, about the beginning of the time when I commenced to collect rents. I don’t remember that Scheich said anything in reply to the remarks that Hilsendegen made to me. I quit collecting rents from Mr. Scheich on October 11, 1881.”
The foregoing is all the testimony offered on the part of the plaintiff tending to prove the terms upon which the premises were leased. The defendant’s “testimony also tended to prove that the letting was from month to month, at a rental of fifteen dollars a month, without any definite agreement as to the length of time the occupancy should extend. This testimony established the fact that there was but one agreement as to the letting, and not new and successive agreements on the first of each month for another month’s occupation ; but there is a total absence of any testimony to prove “ that as a condition of said occupancy the sum of fifteen dollars per month should be paid said complainant by said defendant as rent on the first day of each and every month in advance.” It is plain to us that the agreement to pay the .rent in advance was mere words of contract, and no more a condition than an agreement to pay the rent at the end of each month would have constituted a condition. If the agreement had been silent as to the time of payment, the rent would not have been due until the end of each month.It was competent, however, for the parties to agree that the rent should be payable in advance, and also to make such payment a condition precedent to the vesting of any estate in the tenant. And in a lease of this kind no precise form of words is necessary to make a condition, but the intention to do so must be evidenced by such language, taken in connection with the surrounding circumstances, as shows that the parties intended that it should have that effect; otherwise, it will be held to be a covenant. Langley v. Ross ante, p. 163.
Here neither the language nor the surrounding circumstances, either alone or conjointly, conduce to prove the condition claimed. There was no agreement that, in case of failure to pay at the day, the landlord should have the right to re-enter; none that if the tenant did not pay he should not occupy; while the surrounding circumstances point strongly to the conclusion that the agreement to pay in advance was intended as a personal covenant. Hilsendegen had been unfortunate in his tenants by failure to collect rents from them. He had recently lost seventy dollars by a tenant leaving without paying the rent. He desired a responsible tenant, and agreed to let the premises to Mr. Michenfelder, a brewer of the city of Detroit, and he could put in possession such tenants as lie chose. Michenfelder put Scheich in possession, and paid the rent for a couple of months, and after that, by what appears to be a mutual understanding, Scheich paid his rent directly to Hilsendegen. "With the fact that the occupancy was upon condition of paying in advance, which we find unsupported by the evidence, eliminated, the findings show that in or about November, 1878, the complainant leased the premises in dispute to defendant by verbal agreement that the defendant should occupy the premises from month to month, and pay as rent therefor fifteen dollars a month, on the first day of each month, in advance, and that the defendant occupied under such agreement, and that during the continuance of such occupancy such agreement was not changed, altered, or modified; that the rent for July was not paid in advance, and remained unpaid until July 11, 1883, when these proceedings were commenced, without giving defendant any notice to quit, or that the tenancy was terminated. What was the estate created under the above facts % How. Stat. § 5517, provides that “ Estates in lands are divided into estates of inheritance, estates for life, estates for years, and estates at will and by sufferance.” It is evident that it is neither an estate of inheritance, for life nor for years, and the inquiry remains whether it is an estate by will or by sufferance.
. It was held in Allen v. Carpenter 15 Mich. 42, that, as the statute nowhere defines tenancies at will and by sufferance, it must be presumed to adopt the common-law definition. At the common law a tenancy at will is created when a man lets land to another without limiting any certain or determinate estate. Such a tenancy exists when the estate can be determined at the pleasure of either party to the lease. The tenancy found by the learned judge to exist in this case comes strictly within the definition of a tenancy at will. The holding was from month to month, without any limitation as to the time when the estate was to determine. The result is that the defendant was entitled to notice of the determination of the estate. How. Stat. § 5774. From the findings of facts numbered 7 and 8 it appears that the parties, both previous and subsequent to July 1st, had been negotiating for a new lease of the premises after July 1, 1883, at an increased rent, but that they could not agree as to terms, and that the proceedings herein were commenced immediately after complainant ascertained that he couldnot reach any agreement with defendant, and that these negotiations were had in view of the extensive repairs put upon said premises in May, 1883, which largely increased the rental value of the premises, and that such negotiations commenced in May, 1883, and continued until tlie time of the commencement of this suit.
It is claimed by complainant’s counsel that the effect of making these repairs and these negotiations was to terminate the tenancy on the first of July, and that the parties being unable to agree upon the amount of rent which should be paid thereafter, the complainant had a right to institute these proceedings upon the theory, as evinced by the negotiations and apparent understanding of the parties, that the tenancy had terminated on the first of July; but such would not be the law in this State upon the facts found in reference to such negotiations. Anciently, at the common law, a tenant at will was not entitled to notice; the estate ceased at the pleasure of either party, and the tenant might be ejected without demand or notice. A tenant holding over pending a treaty for a renewal of the lease is a tenant at will (Wood’s Landl. & Ten. 34), and hence, under the provisions of the statute above cited, would be entitled to notice. The statute has altered the common law, and secures to a tenant at will the right to be notified of the determination of his estate. So that, in either view of the case, it follows that Che conclusions of law of the circuit court relative to the estate of the defendant and of his right to notice were erroneous, and
The judgment of the circuit court must be reversed and a judgment entered in this Court for the defendant, with costs of both courts.
The other Justices concurred. | [
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Campbell, J.
Complainant filed his bill to establish his rights in a road in front of his premises, and to prevent obstructions and interference by defendants, who own property on the same road. Defendants defended on the ground that no such rights exist.
Complainant owns eighty acres on the town line between Ovid and Kinderhook in Branch county, being the southwest quarter of the southeast quarter and the southeast quarter of the southwest quarter of section 31 in town seven south of range six west which is Ovid. Strong, owns land east of complainant in Ovid, and Clark and Jones own land in Kinderhook across the line. These defendants are shown to have asserted and exercised the alleged right to enclose- their premises up to the town line, and thus to destroy the passageway-
If tbe roadway exists, there can be no doubt that defendants have so attempted to interfere with it, as to render them liable to equitable restraint. No action of damages could give adequate redress to a party who is hemmed in so as to have no peaceable egress from his own farm. And the suggestion that he may relieve himself by taking down the fences whenever he wishes to get through, if he has a right of way, does not commend itself to our judgment as likely to secure convenience, or to subserve the public peace. The remedy sought to put an end to continued aggression and dispute is the right one under such circumstances as appear here.
Objection is made, however, both that no right of way is made out, and also that the bill is uncertain and the decree unfounded. The court below established a right of way three rods wide along the town line as its central line, to be used by complainant as a private right of way, in common with the defendants. Complainant does not appeal. Defendants on the argument objected not only to the confirmation of complainant’s right, but also to the establishing of a similar right in each of the defendants over his neighbor’s land.
If this last ground is seriously taken it is obvious that if these defendants are all of a mind they can very readily get rid of this difficulty by mutual releases. But we do not think that there was any error in the decree in establishing this as a common way if such was its real character.
Neither is the bill objectionable in setting up the right of complainant as resting both on a claim of public way and on one of a private way if the public right turns out to be imperfect. His grievance is the interruption of his passage which may exist over what is supposed to be a highway, even where the road may not be strictly of that character, by reason of> some failure to comply with all the requirements of law.
Complainant purchased his lands and went into possession in 1861. The fences set up by defendants were put there in 1882. During all that interval it is shown very conclusively that complainant had claimed and used the way in question, and that there had been such action and recognition by the adjoining owners as would now bar their denial of it. But-as defendants claim that such user was confined to a narrow wagon track, and has not always been on the same line, it becomes necessary to look further into the facts as to its-extent.
It appears distinctly that in 1853 the commissioners of Ovid and Eanderhook laid out and surveyed a town-line-road over these premises. There is proof that one, at least, of the adjoining land-owners was paid for his damages. But there is also proof that at a time not much later the lands along the line were fenced off so as to leave this strip— somewhat narrowed perhaps from the survey — of a substantially uniform width of about three rods; and that this-fencing was meant as highway fencing.
It also appears that at various times work"has been done to-a greater or less extent by the highway officers or under their sanction. There is testimony that the land did not require: much working to make it suitable for passage, and the fact that brush was allowed to grow upon so much as was not in the actual road-way could not destroy the public rights in the-highway or any part of it. It must rest largely with the authorities to what extent they will clear out the space within the highway lines, and a road not much frequented would not. warrant any great expenditure beyond what would make it passable. We' think it quite clear from this record that this-has been generally regarded by the authorities as a highway. Two of these defendants joined in a petition in 1882 to the-commissioners of highways of the two townships, signed by a considerable number of other freeholders, recognizing this as a. public highway and asking its conversion into a private way of less width. This petition, which seems to have been regular, was considered and denied by the commissioners. The-name of the other defendant Clark also appears on this petition, but he denies that he signed it, and we do not think it important to examine into that fact. Clark’s testimony itself shows the long-continued use of the wagon-way, as well as of the road-side fencing.
In our opinion, the circuit judge might very properly have based his decree upon the existence of a public road. Such, in.our view, would have been prefe-able to confining it to a private way. But, inasmuch as the pt ó’ie authorities are not parties to this suit, the decree cannot destroy any public rights, and so far as complainant is concerned he appears to be satisfied with the decree as it stands. The decree is correct in treating the way as covering the space in width described ; inasmuch as it has been so bounded continuously by the acts of those concerned.
It was claimed on- the argument that no rights could be set up out of the alleged public character of the way, because in 1853 there was no highway law in force, and reference is had to People v. Kimball 4 Mich. 95, where it was decided that the old law providing for the determination of damages by commissioners of highways was repealed by the Constitution which required such damages to be assessed in another way. But while it is stated rather broadly in that case that since the adoption of the new Constitution there had been no highway law, such was certainly not the understanding of the Court except as to that particular matter. For in the same term, in Bumpus v. Miller 4 Mich. 159, it was held this constitutional provision did not apply where land-owners acquiesced in the public dedication, and such is the commonsense deduction. There was nothing in the Constitution requiring new legislation beyond the taking of land not so acquiesced in. In the present case the land-owners acted on the idea that a road had been legally laid out, and adopted it by fencing and other unequivocal conduct. The decree does no injustice to defendants, and must be
Affirmed with costs.
The other Justices concurred. | [
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Per Curiam.
The respondent was treasurer of a Oigarznakers’ Protective Union, and as such received dues to the amount of one hundred dollars, which he failed to account for, and admitted that he had used. He offered to pay it •to the union in installments, but was prosecuted for embezzlement.
Held, that supposing the case to come within the statute, the prosecution could not be sustained unless the respondent had an intent to convert the property to his own use, and that the question of such intent was one of fact for the jury. 'The trial judge instructed the jury that if they were satisfied beyond a reasonable doubt that the respondent was treasurer •and received the money and spent it, then he was guilty under the information. This was too broad. The respond•ent might have done this, under some circumstances, with entire integrity of purpose, and might perhaps have been -expected by the union to do so, if he were a man of known responsibility; and the jury should have had all the facts ■submitted to their judgment upon this question of intent.
New trial ordered. | [
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Champlin, J.
This action was begun before a circuit court commissionei;, under How. Stat. § 8295 to obtain possession of certain premises in the city of Detroit, held by the defendant under a written lease from plaintiff, as follows:
“ It is hereby agreed between Henry Langley, of the first part, and James Eoss, for and in behalf of Emily Eoss, all of Detroit, Mich., of the second part, as follows:
The said Henry Langley, in consideration of the rents and covenants herein specified, do hereby let and lease to the said James Eoss for and in the benefit of Emily Eoss, during her natural life, all that certain piece or parcel of land known and described As follows: One-half of lot No. 13, south side Crane & "Wesson’s section of the Antoine Beaubien farm, so called, except the piece on the east end of said. lot already deeded to Mary A. Jones, with the buildings thereon, to be left as it now stands until it is either burnt or taken down, then to be rebuilt; this part of lot being the south side half.
| Sn fi'Pj) g
[Provided, that in case any rent shall be due and unpaid, or if default shall be made in any of the covenants herein contained, then it shall be lawful for the said - — --——•—, or his certain attorney, to re-enter into and repossess the said premises, and the part of the second part, and each and every other occupant, to remove and put out.]
And the said parties doth hereby hire the said premises for the term of her natural life, as above mentioned, and do covenant and promise to pay to the said Henry Langley the annual rent of one dollar, the first installment to be paid on the-first day of January each year, and to paji taxes, ordinary and extraordinary, and to keep said half of building insured for the purpose of rebuilding for the term of her natural life ;. at that time this lease ceases, and possession reverts to the party of the first' part, his heirs or assigns. And also that they will, at their own expense, during the continuance of this lease, keep the said premises, and every part thereof in good repair, and will not release or assign this lease without the written consent of the party of the first part, and at the expiration of the term yield and deliver up the same in like-condition as when taken, reasonable use and wear thereof and damages by the elements excepted. And the said parties of the second part doth hereby covenant and agree that all goods, wares and merchandise, household furniture, fixtures- and other property, which are or shall be placed in or on said premises by- shall be liable, and this lease shall hereby constitute a lien or mortgage on said property, to-secure the rent due or to grow due on this lease, and they hereby authorize and empower the said party of the first part,, in case any default is made in the payment of the rent above-specified, or any of the covenants herein contained are broken,, that the said party of the first part may enter upon said premises, or take any of said mortgaged property wherever the same may be found, and sell and dispose of the same in the same manner as in cases of chattel mortgages on default thereof, giving six days’ notice of the time and place of such sale, for the best price he can obtain for the same, and return sufficient money to pay any rent due hereon, or to grow due-hereon, together with the costs of such sale, and said party of the second part hereby waives all benefit of any exemp tion law of the State in reference to the sale of said personal property for rent. And said party of the first part doth covenant that the said party of the second part, on paying the aforesaid installments, and performing all the covenants aforesaid, shall and may peaceably and quietly have, hold and enjoy the said demised premises aforesaid.
Witness our hands and seals this first day of January, A.D. 1872.
Henry Langley, [l. s.]
James Ross,
Jas. F. Morse. (For E. Ross.) [l. s.]
$25.00. January 2, 1878.
Received twenty-five dollars for the rent of twenty-five .years, if party lives to that time. Henry Langley.”
No rent was due at the time the proceedings were instituted by plaintiff to obtain restitution of the premises. It is not denied, however, that the respondent failed and neglected to pay the insurance and taxes. The plaintiff claims that the provisions of the lease requiring the tenant to pay the insurance and taxes constituted a condition which, if broken, •operated as a forfeiture of the tenant’s rights, and entitled him tQ„r,estitution under the provisions of the statute which provides, that the landlord may institute summary proceedings to obtain possession in the following cases, namely, when uny person shall hold over any lands or tenements contrary to the conditions or covenants of any lease or agreement under which he holds; or when any rent shall have become due on any such lease or agreement, and the tenant shall have neglected or refused, for seven days after a written demand for possession, to pay the rent or surrender possession of the premises.
A condition is a qualification annexed to an estate by the grantor, whereby it may be enlarged, defeated or created upon an uncertain event; and it differs from a covenant in this: that a condition is in the words of and binding upon both parties, while a covenant is in the words of the covenantor only. Wood’s Landl. & Ten. § 279. Whether the particular words used amount to a condition or a covenant merely, is a matter of construction, depending upon the true meaning of the contract. And in construing the Instrument in question, the fact that the clause containing the proviso respecting the payment of rent and default in performingariy of the- covenants, and giving a right of re-entry, are-stricken out, is quite significant. What would have been conditions had the proviso not been erased, are left to stand as mere covenants, relieved of any condition whatever. Such-are its plain terms, and no other construction can be given to-it without doing violence to the expressed intention of the-parties, It follows that the lessee does not hold over contrary to the conditions or covenants of the lease. Hays v. Bickerstaffe 2 Mod. 35; Tallman v. Coffin 4 N. Y. 134.
It is only in cases where there are conditions or covenants-which are in the nature of limitations, by which, upon the happening of the contingency, the estate becomes ipso factoterminated, that the tenant can be said to “ hold over contrary to the conditions or covenants of his lease,” within the-meaning of the statute, and it has no application to mere covenants made by the lessee to do or perform certain things-
The statute has given a remedy to obtain possession for-non-payment of rent, independent of any conditions in the-lease. - But this case does not come within that provision. The covenant to pay taxes and insurance is not a covenant to-pay rent, any more than a covenant to pay rent is a covenant to pay taxes and insurance. Thé language of the lease will, not justify the construction that the taxes and insurance-were intended to be paid as rent. The plaintiff made no case entitling him to a verdict, and therefore it is unimportant to consider the errors assigned upon the rulings and charge of the court.
The judgment is affirmed with costs.
The other Justices concurred. | [
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Sherwood, J.
On the 9th of October, 1880, the Superior Court of Detroit made a decree in a suit for divorce in favor of complainant and against the defendant Leonard Reeg, and for alimony. On the 30th.day of August, 1881, thirty dollars was due and unpaid on the decree for alimony, and execution was issued thereon and returned by the sheriff unsatisfied for the want of property from which to make it. On the 5th day of January [1883] there was due and unpaid upon-said decree, by the terms thereof, $765.61, and on the next day complainant caused execution to be issued therefor, which was returned unsatisfied. On the 11th day of January, 1883, the judge of the Superior Court made an additional decree in said cause in favor of the complainant, and against the defendant Reeg, for the sum of four thousand dollars, to be paid forthwith by the said defendant, and that complainant might have execution therefor. On the 12th day of March, 1883, complainant caused execution to be issued against the defendant Keeg for the amounts then due upon said decrees, and placed it in the hands of the sheriff, and that said writ, for the want of property, was returned unsatisfied on the 14th day of May thereafter. The bill in this case was filed on the 12th of March, 1883, by the complainant as a judgment creditor, and for the purpose of reaching personal property of defendant Eeeg to satisfy the above-mentioned decrees, in the hands or under the control of the other defendants, but which is alleged to be equitably the property of the defendant Eeeg, the legal title thereto having been fraudulently transferred by him to his co-defendants for the purpose of defrauding the complainant out of the moneys due upon said decrees.
In addition to the facts above stated, the bill avers that at the time of making the first above-mentioned decree, and for several years previous thereto, defendant Eeeg had been engaged in mercantile business in Detroit, and continued to be thereafter until about January 1, 1883; that at the time of filing the bill he had a large amount of claims outstanding due to him, for which he held paper and other securities, and owned a large amount of goods and wares and other personal property, which belonged to him and in which he was interested, and which he might and ought to apply to the payment of her decrees; that he owned and controlled, in a store occupied by him in Detroit, a large stock of dry goods, notions and ladies’ goods, and other merchandise, more than sufficient to satisfy her decrees; and that for ten months prior to filing her bill the defendants, other than Eeeg, have been in possession of them and pretend to be the owners of them.
The bill further avers that Eeeg is the equitable owner of said property, and has been for several years, and that if he has made any transfer of the same it has only been colorable, and made with a view to protect them against the decrees of complainant, while Mr. Eeeg in fact enjoys the avails thereof, and that the other defendants had notice of these facts; that the other defendants, or some of them, have under their control other property, debts, things in action or effects in possession belonging to or held in trust for the said defendant Reeg, beyond the reach of execution, and which she asks to have applied to the payment of the latter’s indebtedness, and which ought to be so applied.
The complainant also shows and avers, in a supplemental bill, the issuing of execution and its return not satisfied, upon the last decree as above stated. The relief asked is that the property of Reeg aforesaid, may be applied to the payment of her decrees ; that an account be taken, under the statute!,' of the property received by the other defendants from defendant Reeg; that the defendants be enjoined from disposing of any of such property; and that a receiver be appointed, according to the practice of the court and for the usual purpose in sueli cases, and further prays for general relief.
The bill was taken as confessed by the defendant Reeg, he failing to appear or answer. The other defendants made their joint and several answer thereto, wherein they say they have no knowledge or information in regard to the decrees, amounts due thereon, or the efforts to collect them stated in the bill. They admit that defendant Reeg was engaged in • the mercantile business before and after the time the bill in this case was filed, and up to the last day of August, 1881, but deny that thereafter he was engaged in business on his own account, or otherwise than as an employee of another; and deny that defendant Reeg had any property, things in action or equitable interests, except what was exempt from execution, after the last-mentioned date, as charged in the bill. They admit that he kept store in Detroit, and that he had a stock of dry goods, but deny that the stock was largo or valuable, or that he owned or had any interest therein after September 1, 1881.
The defendants further admit that Corwin, or those claiming under him, was, within two months immediately preceding the filing of the bill, in possession of a certain stock of goods in the store in Detroit mentioned in the bill, but aver that the stock did not belong to defendant Reeg, and that he had no interest therein, and that Corwin, or those claiming under him, were the owners thereof. They further deny that Beeg has or had any goods in Detroit, except a few store fixtures, since about the 13th of September, 1881, or that said defendants, or either of them, have any property in their possession belonging to said Beeg, or in which he has any interest, and hold no property in trust for him.
Defendants further aver that defendants Burnham, Munger and Stoepel were copartners under the firm name of J. K. Burnham & Co., and engaged in the wholesale dry goods business in Detroit, and about the 13th of September, 1881, defendant Beeg, having less than twelve hundred dollars worth of goods, which were mortgaged, and being indebted for rent and unable to continue in business longer’, went to J. K. Burnham & Co. and offered to transfer to them, or any person they might designate, his stock of goods, provided the business could be continued, and he, defendant Beeg, be given employment in the business; and further say that J. K. Burnham & Co. yielded to his solicitation therefor, and Beeg executed a bill of sale to J. K. Burnham & Co.’s clerk, at Burnham’s suggestion, one Edward H. Dunning, who continued the business in the store where defendant Beeg had done business, and continued him in the store and in charge of the business — J. K. Burnham & Co. really being the owners and who subsequently qtaid up the back rent due and the mortgage on the goods, and furnished to said Dunning such goods as defendant Beeg from time to time selected, the latter having the charge of and operating the business, and drawing therefor enough to pay his personal expenses, and relying on the company for his compensation and such as they saw fit to give him; that in this manner Beeg continued the business until September 16, 1882, under the name of E. H. Dunning & Co.; that about that date said Dunning, in the name of E. H. Dunning & Co., at the request of J. K. Burnham & Co., executed a bill of sale of the stock, fixtures and furniture to the defendant Corwin, in consideration of his assuming the liabilities which had been contracted in the business, and thereafter the busi ness was conducted in a similar manner by defendant Reeg, under the name of Corwin & Co., until the 3d or 4th day of January, 1883.
Defendants answering further, aver that the business said Reeg did was not profitable; that the assets inventoried $6937.26, and that the indebtedness to J. K. Burnham was $6353.07, and that the goods inventoried were in fact worth not more than sixty per cent, of the inventoried price, by reason of the same being broken, and thereupon J. EL Burn-ham & Co. removed Reeg from further connection with the business ; that the stock was insufficient to pay the indebtedness ; that a short time after this Reeg claimed to own some fixtures and furniture in the store which he had not sold, and represented that he was in need of money to go west with, and the defendants not recognizing his pretended claim, but desiring to help him, and in consideration of a settlement of all matters between them, gave Reeg $290 ; that J. EL Burn-ham lost by said Reeg from one to two thousand dollars; that said Reeg has not by reason of the premises any claim, legal or equitable, against these defendants, or any interest whatever in said stock of goods.
Defendants answering further, aver that complainant, prior to filing her bill of complaint, took garnishee proceedings against the defendants upon the first decree ; that disclosure was made and issue joined therein, and that the same is still pending against said J. EL Burnham & Co. and said Corwin. Defendants also claim the benefit of a demurrer in their answer.
The case was heard before Judge Chip man in the Superior Court on pleadings and proofs. The complainant’s bills were both dismissed, and she now asks a review in this Court.
From the proofs in this case it appears that the defendant Reeg resided in Detroit, and carried on the business of a dry goods merchant for a period of about twenty-eight years immediately before the defendant obtained her decrees against him, and continued to do business there until about the 5th day of January, 1883, and to reside there until about the 12th of September thereafter; that from-the time of the rendition of the first of said decrees until the 13th of September, 1881, the defendant Beeg had on hand at his store a stock of goods worth from $1200 to $3500; that during said period execution was issued upon the first of said decrees against the property- of said defendant Beeg, but because of two mortgages made thereon tó J. B. Corliss and filed, one for the sum of $1700, dated-July 15, 1879, and the other for the sum of $2500, dated September 9, 1879, the sheriff did not levy; that these mortgages were given without consideration ; that defendant Beeg did not owe said Corliss any of the time over $120; that Corliss made a renewal affidavit in August, 1880, in which he stated that there was $1200 due on the last-named mortgage ; that on the 5th day of J my, 1881, another chattel mortgage was filed, signed by defendant- Beeg, purporting to be given for $2000 to the said Corliss to secure a note of that amount due September 13, 1881; that on the 27th of August, 1881, said Corliss filed in the clerk’s office a bill of sale of said stock, running to him, purporting to be for the sum of $2000 given by defendant Beeg the day before, although no consideration seems to have been given for either; that on the 13th of September following the said Corliss gave a bill of sale of said stock to one Dunning (called in the bill of sale Dunning & Co.), a clerk of J. K. Burnham & Co., and purporting to be for the consideration of $2300; no consideration, however, having been paid therefor other than what appears in the following instrument, which seems to have been agreed upon between the defendant Beeg and J. K. Burnham & Co., viz.:
“ Detroit, Mioh., September 13, 1881.
Bor and in consideration of the transfer to us, this day made by John B. Corliss, of Detroit, Michigan, of all the goods, wares and merchandise situated in store No. 207 Woodward avenue, Detroit, we, the undersigned, hereby agree by and with ’ the said Corliss that we will supply L. Beeg with a suitable line of goods in said store, and allow him to manage said business under our direction so long as we shall deem the same safe and beneficial; and in case said business is closed by us for any cause, we agree to turn over to said. Corliss, or his order, all there may be in the stock of goods in said store managed as aforesaid, after realizing’ full payment for our advancements of stock and disbursements during the continuance thereof, and interest on past-duo accounts ; and also we agree to transfer said stock and all accumulations thereof to said Corliss, or his order, at any time that we are fully paid for all advances made as aforesaid. Edward H. Dunning & Co.
Indorsed : I hereby transfer the within contract to Leonard Eeeg without recourse to me. Jno. B. Corliss.”
That on the 15th day of September, 1882, by the direction of J. K. Burnham & Co., consented to by defendant Eeeg, said stock of goods was transferred by bill of sale from said Dunning (under t the name of Edward H. Dunning & Co.) for the named consideration therein of $5280.94 to one George A. Corwin (under the assumed name of Corwin & Co.), another clerk of J. K. Burnham & Co.; that all these changes, including the bill of sale from Corliss, were made by arrangements with J. K. Burnham & Co. by the defendant Eeeg and for his benefit, and that neither Dunning nor Corwin had any interest therein, and were only nominal parties occupying the positions they did at the request of J. K. Burnham & Co., and consented to by Eeeg; that no consideration passed on the making of the bills of sale between the parties thereto.
The following testimony given by J. K. Burnham also appears in the case relating to the transfer of this stock of goods, viz.:
“I have, known Leonard Eeeg, of this city, eight or ten years. I have known John B. Corliss three or four years. I was aware of the fact that in Mr. Eeeg’s litigation with his wife Mr. Corliss has been acting for him as his attorney, as adviser; I did not know that he ever had any cases for him. I know the store No. 207 on Woodward avenue. I know that Mr. Eeeg did business there as a dry goods merchant. * * * Early in September, 1881, I had a talk with Mr. Eeeg. He had been trying to buy goods of us for five or six years. We never would give him any credit, never would trust him for any goods; everything we sent up C. O. D. He came to me and represented matters and wanted credit early in Sep tomber. I don’t know but Mr. Corliss came and said he had a bill of sale of the property, and said he thought there was in the neighborhood of $1200 or $1500 worth of goods there; that he could not pay expenses on that amount of goods, and he wanted some one to give him credit — put some goods in there. I declined to do anything with it, and -they came again, and said if we would sell some goods to that concern up there they would give us a bill of sale of the goods — turn them over; they should be wholly in our charge; and I agreed to put in some $1500 worth of goods, and "take those goods that were in the store and pay up their bills that they could not pay — the insurance, rent and whatever might be so agreed upon. I decided to advance that money and take a bill of sale of that stock. The bill of sale was taken in the name of Dunning & Co. Dunning is the only man concerned in the firm of Dunning & Co. The company was a mere nominal matter. Mr. Beeg has no interest in that store and its business, and none whatever in the goods that are in the store. Mr. Beeg has been in that store until within a few weeks. He managed the business there, hired the clerks, and I suppose discharged the clerks that were discharged, and paid the clerks, too. He did not have charge of the goods; he merely selected the goods for that stock.”
This testimony was given in February, 1883. It further appears from his testimony that he did not know of the indebtedness of Mr. Beeg at the time he took the bill of sale, except some back rent due Corliss, taxes and insurance, which J. K. Burnham & Co. paid, amounting to between $350 and $700, and that is what they paid Beeg for the goods •on the sale to Burnham; that no inventory was taken of the stock at the time of the sale; that Beeg, in the management of the business, bought goods of other parties than J. K. Burnham & Go. at his pleasure; was never asked to account for the proceeds of the business; that when Beeg left the business, in January, 1883, J. K. Burnham & Co. did not owe Beeg anything, but on his request gave him $290 to go west with, and took his receipt therefor, in full of all claims •on settlement.
The testimony of defendant Beeg, under an order of the ■court on the 20th day of March, 1883, was offered in evidence by complainant’s counsel, wherein he testifies in the most positive terms that the mortgages and bill of sale mentioned were all given without consideration, and for the purpose of preventing creditors from making their claims; that he did not owe Corliss anything for which the obligation was given. He further testifies that a few days after he gave the bill of sale to Corliss he went to J. K. Burnham & Co. and told Burnham “ the shape lie was inthat he owed about. $800 for merchandise and could not pay it, was hard up and had alimony to pay, and did not wish to pay that; told Burn-ham that he owed Corliss $105, and if he would let him have goods he could make money at his store and shield him from, the attacks of his creditors, and he would be safe himself, and the next day Burnham told Reeg he would do it; that they went to Corliss’ office and consulted about the way to do the business, and then it was agreed upon that Corliss should convey the stock to Dunning for Burnham & Co., who were to pay Reeg’s debt to Corliss, and the papers were all made under Corliss’ and Burnham’s direction; that at his (Reeg’s) request Exhibit 15 [the instrument dated September 13,1881, and before set forth] was made and transferred to him, so that he could go on with his business; that the bill of sale was not intended to be absolute, but only a shield for Reeg against his creditors; that the stock of goods mentioned in the bill of sale was at that time worth from $3000 to $3500 that he (Reeg) carried on the business afterwards as he usually had done, bought goods of J. K. Burnham & Co., and paid for them, and never accounted for any goods sold to any one; that no person but himself had the management and control of the business and the goods, and no one interfered with him or his business; that his place of business and his signs remained the same after as before the bills of sale were made, and that the only moneys he used from the business were what he paid for running it, for goods and for his own personal expenses; that he did not pay any of his other creditors; that the largest amount went to J. K. Burnham & Co. for goods, for which he had their statement of account both for goods received and moneys paid; that he never paid Dunning or Corwin anything, but lent the latter money, $40 of which constituted a part of the $290 received by him of J. K. Burn-ham when he left; that J. K. Burnham & Co. had nothing to do with the business except to sell him goods, and they never paid anything for him except the money to Corliss; that he held the lease of the store in his own name all the time, which did not expire till April, 1884, and never transferred it; that after the transfer from Dunning to Corwin, and about the last of December, 1881, or first of January, 1882, an inventory of the stock was taken; that Burnham’s clerks helped to take it, and it amounted to about $7000, but Burn-ham & Co. never allowed him to look it over; that he does not know that all the goods were put on the inventory— thinks they were not; they marked the goods too low, put down dress goods at a shilling which cost eighty cents per yard; that he paid all the taxes on the goods; that on the 5th of January, 1883, after the inventory was taken, Burn-ham & Go. sent Corwin up to the store and took possession ; that the stock of goods at that time was worth $9000 or more, and that his inventory in January, 1881, amounted to $4500.
Reeg further testified that he was surprised and bewildered when he found he was to be turned out, but Burnham & Go. had him in their power and he could do nothing; that he tried to get them to give back goods to the amount of his interest, and they ■ refused; that he then tried to get them to take out goods to the amount of his indebtedness to them, and let him have the rest, and this they refused; that he then tried to get them to let him have $500, and he finally got $290 and about $70 in accounts of them, as above stated; that he never made any settlement with them; that he never received any more money from any of them, and never gave any receipt on a settlement of his matter with Corwin, Burnham & Go., or Dunning.
The foregoing is the substance of the testimony of Mr. Reeg. Several witnesses (Reeg’s clerks) were sworn on the part of complainant, whose testimony was mostly corroborative of Reeg’s statement of his doing the business, and the manner of doing it; also of the statement of Reeg that the goods belonged to him, but that he was trying to defraud complainant out of her alimony, and was doing business under other names to get rid of paying the alimony.
Mr. Burnham and several of his clerks were sworn for defendants, and testified to the effect that the consideration paid for the bill of sale to Dunning was about $350, paid by Burnham & Co., and that they advanced about $700; that when the stock was transferred to Corwin there was owing to them about $4000 or $4500 ; that the inventory taken in January, 1883, showed the value of the goods $6937, but that they were worth not over $4500, and that on the 13th of September, 1881, the stock was not worth over $1500; that when Burnham & Co. entered into the arrangement with Beeg they did not intend to give him a line of credit of more than $1200, but that he did get $4500, and that they then took possession of the stock of goods, after offering to let Beeg have it for less than that amount if he would pay it.
Several other witnesses were sworn on the part of the defendants, tending to show the value of the goods, and that Beeg’s credit was bad.
The foregoing is a brief summary of the pleadings and proofs as shown by the record. The testimony is very conflicting, indefinite and unsatisfactory as to the value of the Beeg stock, both at the time the bill of sale was made to Dunning, and also at the time J. 3L Burnham & Co. took possession of the stock in January, 1883. It is, however, quite certain that Beeg must have known their amount and value, when the bill of sale was made, better than any of the other witnesses, and he puts the value at $3000 or $3500 at that time. I think their fair value, from the testimony, may be safely placed at $2500. I am not satisfied that the evidence shows Mr. Beeg’s interest in this stock was increased in value by his management between that time and the time J. X. Burnham & Co. took possession, and if they can be held at all responsible in this case to account to the receiver for the goods, the amount should not exceed the sum named.
There is no question about the indebtedness of Beeg to tlie complainant at the time of the transfer of the goods by him to Dunning, or at the time of filing the complainant’s bill, or that at the latter date it exceeded the sum of $2500, and I think the fraudulent intention of Mr. Beeg in making the pretended mortgages and sales of his stock of goods to Corliss, and procuring the same to be made to Dunning and to Corwin for J. K. Burnham & Co., is equally clear; that it was to place them beyond the reach of legal process issued upon the complainant’s decrees, and in fraud of her rights to the extent of the value of the goods so transferred. That such fraudulent intent of defendant Beeg was known to J. K. Burnham & Co., and participated in by them, is not so apparent from the evidence, but the testimony of Beeg upon this point, if believed, places it beyond doubt. I think the circumstances accompanying the transaction, and the dealings between the parties, are very strongly corroborative of Beeg’s testimony upon this question, and I cannot escape the conviction that the preponderance of the evidence on this point is that J. K. Burnham & Co. and the other defendants had knowledge, or were in possession of facts from which they must be held to have had knowledge, of the fraudulent intent of Beeg in making the transfer, and their action served as a cover of Beeg’s property, and prevented the sheriff from taking it on execution to satisfy the complainant’s decrees.
J. K. Burnham, as the evidence shows, liad known Mr. Beeg ten or twelve years; knew that his commercial honesty and his commercial credit were bad; that he had been purchasing on credit, and could no longer, except for cash; that he had been trying to purchase of J. K. Burn-ham & Co. on credit for five or six years, and had been all the time refused; that he had been in litigation with complainant. He knew the existence of Corliss’ mortgages, which stated Beeg’s indebtedness to him at over $3000, and knew that it was not true, as Burnham paid the actual indebtedness thereon, with $119.47; that the bill of sale to Corliss was a sham; that Beeg was unable longer to continue his trade in his own name and escape the complainant’s execution, and that Beeg desired him to name the person under whom ho could continue the business in which he was then engaged, and whom J. IL Burnham & Co. could control; and that Eeeg had alimony to pay and wished to avoid it.
With all these facts before him, it is impossible for me not to come to the conclusion that all the defendants must be held to have known of the fraudulent intent of Mr. Eeeg to prevent complainant from making her claim out of his property, and that the action taken by J. IL Burnham & Co. could not fail to hinder, delay and defraud Mr. Eeeg’s creditors. Certainly the facts were sufficient to lead any honest, prudent business man to that conclusion, and that is all that is required to make him liable. Bump, on Fraud. Conv. (2d ed.) 308, 309, and eases there cited.
The whole transaction and the operations of the defendants present very singular proceedings for business men engaged in an honest endeavor to meet and discharge legal liabilities to their creditors. Indeed, they did not seem to quite agree upon this point among themselves. Under the view herein taken of the case, of course the ignorance or honest intentions on the part of the defendants J. IL Burnham & Co. cannot save them from liability. They have sold and disposed of the goods to innocent parties, so far as the testimony shows, and they are beyond the reach of process upon the decrees of complainant in legal or equitable proceedings in her behalf, and J. IL Burnham & Co. have received the pay therefor. To the extent, therefore, of the amount we have heretofore mentioned, they are in equity the trustees of Mr. Eeeg, and the complainant has the right to have that amount applied to the payment of her decrees.
The remaining question is, has the complainant the right to have the application made under the proceedings she has taken? -It is urged that the claimed settlement between Messrs. Eeeg and Corwin, and the receipt given by the former, was a recognition by him of the right of Corwin to take possession of the goods j but such recognition, if it may be considered as such, is of no consequence, since whatever Corwin did in the premises was so done in the interest of Burnham & Co. and with Burnham’s knowledge, if not his direction.
It is further claimed that complainant’s bill is insufficient, under the law and rules of practice, to cover the case claimed upon her proofs, and that therefore she cannot have the relief she prays. The bill of complaint is not, perhaps, as artistically drawn, or so specific in its averments of some facts disclosed by the proofs as it might .have been, relating to the. defendants’ dealings with the property, its character and value ; but the bill was not demurred to by any of the defendants, and technical nicety or formality in statements or averments will not be looked after very closely in such •cases if the substantial rights of the complainant appear, and the grounds of equitable relief are stated in the bill. I quite agree with Mr. Justice Campbell that in this class of cases “ there are difficulties in requiring very specific averments in cases of fraudulent intent, and the rules of pleading do not contemplate that evidence shall be set out in a bill.” Tong v. Marvim 15 Mich. 60. “No universal rule can be laid down where most of the facts must necessarily be within the knowledge of defendants.” Hubbard v. McNaughton 43 Mich. 220. It is true, the defendants in their answer claim the benefit of a demurrer; but the record does not disclose that it was ever brought to a hearing, or relied on upon the argument.
Equity gives relief to the judgment creditor in two ways: First, in aid of an execution at law for the purpose of setting aside fraudulent transfers of property sought to be reached by that process; second, by bill to have the judgment paid or satisfied out of choses in action or other property of the debtor not liable to execution, or that cannot be reached by execution, and which the debtor in equity should apply to the payment of the judgment. Beck v. Burdett 1 Paige 305; Williams v. Hubbard Walk. Ch. 28. The bill may be filed in a proper case to embrace both kinds of relief provided. Williams v. Hubbard supra; Clark v. Davis Har. Ch. 227; Cuyler v. Moreland 6 Paige 274.
The bill in this case avers the judgment, issue of execu tion thereon, and return of same duly made, unsatisfied; also that there are equitable assets owned by and under the control of the defendants, and their refusal to apply the-same; and that by fraudulent means, under colorable transfers, they are kept from the reach of the officers. This is-sufficient to bring the complainant’s case under each of the-two classes of cases I have referred to. The testimony shows, that defendants have transferred the property to innocent, holders and received the pay therefor. The proceeds are not in a situation to be levied upon. Tinder these circumstances the transfers to Corliss, to Dunning, to Corwin and to the-defendants become of no importance except to show the character of the transactions, each party being in possession of the facts necessary to impute to them knowledge of the-intended fraud of Reeg when the transfers were made.
Defendant’s counsel admits the bill is sufficient to reach the equitable assets of defendant Reeg in the hands of J. K. Burnham & Co., if the conveyances can be attacked under the averments made. I think the bill is sufficient, and that the testimony offered showing the facts above stated was competent.
In this case, so far as defendants J. K. Burnham & Go. are-concerned, the complainant shows by her bill and her proofs-that she has been defrauded by the conveyance to them of the goods, and by means of which she could not make the-debt in due course of law. J. K. Burnham & Go. thus became the fraudulent grantees of the property as to complainant, and as such equity will hold them to account to her to the amount of her debt, if the property conveyed is sufficient for that purpose; and if not, then to the extent of the-property received by them. It is only necessary to obtain a lien before invoking equitable aid, when the fraudulent grantee is in possession of property which may be levied upon at the time of filing the bill; and as we have already shown,, such was not this case.
There was no laches on the part of complainant in not. instituting her equity proceedings sooner. The whole proceeding so far as J. K. Burnham & Co. are concerned, was-' kept as secretly as possible, and the facts could not be correctly ascertained — indeed were not ascertained until an examination of defendant Reeg was had under the special order of the court on motion of the complainant. Under such circumstances more than three months must elapse before laches can be successfully claimed by defendants.
Griffin c& Warner and G. A. Kent for the motion.
Fraser <& Gates against.
The effect of the garnishee proceedings of complainant was not presented in the brief of counsel for defendants, and is therefore no further noticed here.
I think the decree of the judge of the Superior Court in this case dismissing complainant’s bill should be reversed, and the cause remanded to the Superior Court of Detroit with directions to enter a decree in favor of the complainant and against the defendants for the sum of twenty-five hundred dollars and the costs of both courts, and for the proper execution thereof.
Champlin, J. concurred.
Campbell, J. I do not take the same view of the testimony as my brethren, and am in favor of affirmance.
Cooley, O. J. did not sit. | [
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Ohamplin, J.
September 17,1881, the plaintiff recovered a judgment against Andrew Blanch, the husband of defendant for damages for the alienation and seduction of plaintiff’s wife, and on October 7, 1881, plaintiff made and filed his affidavit for a writ of garnishment, setting forth the recovery of the judgment, and stating that he had good reason to believe, and did believe, that Rachel Blanch had property, moneys, goods, chattels, credits and effects in her hands and under her custody and control, belonging to the defendant Andrew Blan'ch, and that she was indebted to him. A writ of garnishment was thereupon issued and served upon defendant, October 8, 1881, returnable on the 1st day of November, 1881. On the 19th of November the garnishee filed her disclosure, in which she denied that at the time of service of the writ and at the time of the disclosure, she had any property, money, goods, chattels, credits or effects in her hands or under her control or custody, belonging to Andrew Blanch, and denied that she was in anywise indebted to him. November 28th she demanded a trial under the statute in such case made and provided, and on the 29th of November the plaintiff demanded an oral examination of the garnishee before a circuit court commissioner, which was had on the 10th of December, 1881, and was reported to the court and filed.March 28, 1882. The trial of the issue demanded by the garnishee was had J une 7, 1884, before a jury.
The examination of the garnishee, as reported by the commissioners, was read in evidence, and was the only evidence which it was claimed would warrant a recovery by plaintiff, except the testimony of a witness by the name of Wood; and as it is claimed by plaintiff that his testimony shows an admission by the defendant that she received certain notes after the rendition of the, judgment in favor of plaintiff and against Andrew Blanck and before the service of the garnishee, it will be well to examine this question first. Wood went to defendant’s house for the purpose of serving a notice of trial of this suit upon her; he says he found her alone and after reading the notice to her, he says : “ I then asked her the question, if she got those notes prior to the service of the garnishee papers, or when she got the notes. She said she got them before the service of the garnishee papers upon her. I then said to her, ‘After the judgment was entered % ’ And just as I said that, before she looked at me, and before any answer was made, Dr. Blanck came into the room. As he came in, he says ‘ What is it ? ’ And 1 raised up, and she says, ‘My husband, Dr. Blanck.’ I recognized Dr. Blanck, and I told him that I was here for the purpose of serving a notice of this trial, and the position the plaintiff’s attorney proposed to take on the trial; and then I said, ‘ The notes were obtained after judgment ? ’ Dr. Blanck says, ‘ Our attorneys are John D. Conely, of Detroit.’ ”
How this testimony can be tortured into an admission that defendant received “ the notes ” before the service of the garnishee papers, and after the rendition of the judgment, is difficult to perceive ; yet the learned judge fell into the error of submitting it to the jury as testimony tending to prove such admission. She was under no obligation to treat the inquiries of Wood otherwise than as an impertinence, calling for no reply. She was not in a position where she was required to speak, under penalty of her silence being construed into an admission that she received the notes after the rendition of the judgment. The learned judge who presided at the trial should have instructed the jury that the testimony of Wood had no tendency to prove an admission by defendant that she-received the notes after the judgment was rendered and before the service of the garnishee papers. We have carefully examined the testimony taken before the commissioner and read upon the trial, and are unable to find any admission by the garnishee that she received the notes in controversy after the rendition of the judgment and before the service of the garnishee papers upon her. Her testimony does show much confusion in ideas, in statements and occurrences, but in all and through all she adheres tenaciously to the point that she received no property or notes within the time specified which would render her liable as garnishee.
Regarding the disclosure as testimony we have no doubt but it is proper for the jury to draw all legitimate inferences and just conclusions therefrom ; but it is not a legitimate inference to draw from testimony denying the existence of a fact sought to be proved, that such denial is evidence that the fact exists. Unless the garnishee’s disclosure shows that she had or controlled personal property or effects of Andrew Blanck, or that she was indebted to him at the time of the service of the garnishee papers, it will not be sufficient to justify the finding of the jury in this case. The disclosure shows that she received the notes mentioned in the verdict of the jury after the service of the garnishee papers upon her, and there is no admission that she received them before. The jury must therefore have based their verdict, as they were at liberty to do under the charge of the court, upon the testimony of Wood. The circuit judge told them that they might consider the testimony of Wood in considering the weight they would give to defendant’s statement that she had received certain special notes within two or three weeks before her examination, and after the service on her of the garnishee papers, and they might infer from his testimony that she referred to these notes which she stated she had received at Greenville. But it appeared that she had received notes before the rendition of the judgment, and as the “notes” embraced in Wood’s question might, with greater probability refer to those, there is no inference that can be drawn that she referred to these latter notes instead of the former.
The order of the circuit court appointing a receiver must be reversed, set aside and held for naught, and the verdict must be set aside and a new trial ordered ; the defendant to recover costs.
The other Justices concurred. | [
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Campbell, J.
This, was a suit against the sole surviving surety on a guardian’s bond, the guardian being dead.
The guardian John Fleming was appointed March 11, 1867, over five children; and James W. Fleming, for whose benefit this suit ié brought, became of full age on September 21, 1878. Frederick Hall was defendant’s co-surety. On January 12, 1880, the guardian was cited to account, and on February 12, 1880, a balance was found due of $853.68. ’it is found that the guardian, through Hall, made payments in October and December, 1878, and in August, 1879. The order to sue on the bond- was made June 29, 1880, and the suit was brought March 29, 1883. Hall and Fleming have died since that time.
The only question raised is whether the action against the surety is barred by limitation. The court below held it was not, and gave judgment against him, from which he has brought error.
The statute governing the proceeding is Comp. L. § 4840 (How. Stat. § 6332), which bars actions against sureties unless-brought “ within four years from the time when the guardian shall have been discharged,” with a saving clause in favor of persons absent from the State at the time of discharge, and of persons under disability to sue.
It was suggested on the argument that as the decedent was guardian of several minors, some of whom have not become of age, the statute cannot run during their nonage. It was also suggested that the payments in 1878 and 1879 would take the case out of the statute.
There is no foundation for the claim that guardianship can be treated as exercised over minors jointly. While the same j>erson may be guardian over several children, yet his duties are several and not joint. No authority is found for any joint relation, and our statutes do not contemplate it.
Assuming, which we need not now consider, that a part payment or new promise would have taken this case out of the statute, it is sufficient to say that under our statutes a payment or a new promise by one joint debtor will not operate to keep the obligation alive as to another who was not privy to it or in any way participating in it. Rogers v Anderson 40 Mich. 290; Mainzinger v. Mohr 41 Mich. 685.
The question then arises, — what is meant by the discharge of a guardian ? It is claimed by the defense that it means the termination of his official character. For the plaintiff it is claimed that it means his discharge by final settlement.
The only sections of the statutes bearing on this question, which have been called to our attention, are Comp. L. §§ 4816 and 4-836 (How. Stat. 6308 and 6328). The former proyides that every guardian shall have the care and management of the estate and continue in office until the minor reaches majority, “ or until the guardian shall be discharged according to law.” The latter section provides for the resignation and removal of guardians, which can only be done during the minority of the ward, and while there is, therefore, a disability to sue.
It has been the uniform understanding that the office itself terminates in all cases when the ward comes of age or ceases to be incompetent, and that after that time the ward may settle with his guardian without the intervention of the probate court if he chooses, and the guardian can dó no further act as guardian, bnt becomes discharged of his office. Cheever v. Congdon 34 Mich. 297; Lyster's Appeal 54 Mich. 325. There is therefore no hindrance in the way of seeking an accounting, and a guardian is bound to be ready to account as soon as his trust comes to an end. The remedy to-compel accounting is summary, and it cannot generally consume much time. And inasmuch as a failure to account is as much a breach of duty as a failure to pay over money, the cases cannot be very numerous in which a recourse to the bond cannot be had within the statutory period.
The discharge cannot very well have more than one of two meanings. It must mean either the end of the guardianship •office, or the discharge from liability. It cannot mean the latter, because that would preclude any occasion for resort to the bond. The object of the statute was, evidently, to make a uniform rule of limitation; and it is long enough to prevent injustice in most cases, if not universally.
This construction has been adopted in Massachusetts under the same statutory provision, which seems to have given the pattern of our own law. Loring, Judge of Probate v. Alline 9 Cush. 68. In our opinion it is the purpose of this statute to require suit to be brought against the sureties within four years after the guardian ceases to be guardian from any cause (saving personal disabilities to sue,) and not four years from any other period or transaction.
The defendant is entitled to a reversal, and to judgment in his favor on the finding, with costs of both courts.
Cooley, C. J. and Sherwood, J. concurred.
Champlin, J. did not sit. | [
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Sherwood, J.
This action was brought under tbe log-lien law of this State, enacted by the Legislature in 1881. See 2 How. Stat. §§ 8412-8427. Twenty-six claimants seek to unite their claims and maintain the suit in the name of one, the present plaintiff.
Statements of lien, made by the several claimants, were filed in the clerk’s office in the county of Newaygo, on the 22d day of February, 1883, and the affidavit for attachment on the 13th day of April following. On filing the affidavit a writ of attachment was issued and served on the 17th and 19th days of April, and on the 25th day of April thereafter the defendant Cook was permitted to appear as part owner of the logs and defend the suit in pursuance of the thirteenth section of the act, and on the same day he entered a motion to quash the writ of attachment and dismiss the proceedings in the case.
The following are copies of the affidavit and ‘the writ issued thereon :
"State of Michigan, County of Newaygo — ssLewis Bab.-' cock, of said county, being duly sworn, says that David P. Kimball, -the defendant in the annexed writ, is indebted to Lewis Babcock, the plaintiff named in the said writ, in the sum of eight hundred and eighty and sixty-one one-hundredths dollars ($880.61), for the work of affiant, and also for the work of William E. Letson, Alexander Fossback, Benjamin H. Kimball, Anders Nyland, Angus McLaren, John McLaren, Abel A. David, Thomas Bennett, Leander Anderson, Hen rig Nisula, Yalentine Lentinen, Alexander Sjogren, Eric Anderson, Matts Ericson, Henry Decker, Galen Northrop, John Cheseman, Andrew Lind, Michael Matson, Jacob Jacobson, John Hoagland, Matt Matson, John Junell, Lorenzo Y. Let-son and Frank Johnson,, whose agent and attorney he is for the collection of their claims, as near as may be, over and above all legal set-offs, and the same is now due for work and labor performed by affiant, and by each and every one of the above-named parties in cutting, hauling, banking, swamping, working on railways, skidding, making roads for hauling, loading, working as chore-boy around shanties, etc., making sleighs and doing carpenter work around shanties, logging job for said Kimball, the property mentioned in the annexed writ; that the last day’s work of said labor was performed on or about the 13th day of February, 1883, and that said labor, for each and every person named in this affidavit, was done and performed by them between the first day of October, 1882, and the said 13th day of February, 1883; and that the said property described in the annexed writ, or a portion of it, is now situated in the county of Newaygo, State of Michigan, and that a statement of lien, setting forth the labor performed by each and every person above-named, required by law, was on the 22d day of February, 1883, duly filed with the clerk of the county of Newaygo, aforesaid, where said labor was performed, showing the kind of labor done, and tlie amount due and to each person named above,for said work and labor for said Kimball, on the said logs and property to which he refers.
Lewis Babcock. •
Subscribed and sworn to before me, April 13, 1883.
Kate E. Robinson, Notary Public, Newaygo Co., Mich.”
WRIT OE ATTACHMENT:
“ In the name of the People of the State of Michigan — ■ To the Sheriff of the County of Newaygo, greeting :We command you to attach the following goods and chattels, to-wit, a quantity of pine saw-logs bearing various marks, thus, to-wit, two “ 00”s on some and a cross on others, thus “ O 0 ” “ now on Cook’s or Staples & Covell’s rollways, so called, or so much thereof as may be sufficient to satisfy the sum of eight hundred and eighty and sixty-one one-hundredths dollars ($880.61), with interest, costs, disbursements, charges, and expenses of suit, in whosesoever possession the same may be found, and safely keep the same to satisfy any judgment, interest, costs, disbursements, charges and expenses that may be recovered under and by virtue of the issuing of this writ, and also summon David P. Kimball, defendant, if he be found in this State, to appear before the circuit court of Newaygo county, at the village of Newaygo, in said county of Newaygo, op the first day of May, 1883, to answer Lewis Babcock, to his damage one thousand dollars; and in case the above-named defendant is not the owner of said described logs, timber, posts, ties, poles, bark, bolts or staves, you are then also commanded to serve or cause to be served a copy of this writ, on or before the return-day above mentioned, upon the owner of said logs, timber, posts, ties, poles, bark, bolts or staves, or his proper agent or attorney, if such agent or attorney be known to you and residing in. this State.
Witness the Honorable Ceylon C. Puller, circuit judge, and the seal of the said circuit court, at the village and county of Newaygo, aforesaid, this 13th day of April, 1883.
[Seal.] Seth S. Watrous, Clerk.”
The motion of defendant’s counsel to quash and dismiss was based upon the following objections:
“First. It is not alleged in the affidavit upon which the writ of attachment in said cause was issued, that the parties named therein as claimants have united their claims.
Second. It is not alleged in said affidavit that the parties named therein as claimants have designated the plaintiff as their agent or attorney for prosecuting the lien claimed by each or any suit necessary to enforce the same.
Third. The amount claimed to be due each person named in said affidavit as claimant is not alleged therein.
Fourth. It is not alleged in said affidavit that the sums claimed to be due the several persons respectively named in said affidavit as claimants is less than one hundred dollars each.
Fifth. The pai-ticular kind of labor or work claimed to have been done by the different persons named in said affidavit as claimants is not alleged therein.
Sixth. It is not alleged in said affidavit that the logs upon which the labor of the several claimants is claimed to have been done, were not to be run down the Manistee river or the waters tributary thereto.
Seventh. It is not alleged in said affidavit whether the work claimed to have been done was done for the owner of the logs sought to be attached, or for a contractor or sub-contractor, nor for whom it was done.
Eighth. There is no allegation in said affidavit as to who is the owner of the logs upon which the work is claimed to have been done and upon which attachment is sought.
Ninth. The writ of attachment issued in this cause is void, because it directs the officer to serve copy of same upon the owner of the property to be attached, his agent or attorney, without giving the name of such owner.
Tenth. The service of the writ of attachment in this cause by the sheriff upon an officer of the boom company and upon other persons, as owners, is cumulative, contradictory, illegal and void.
Eleventh. Act number one hundred and forty-nine of the Session Laws of 1881, in pursuance of which these proceedings are attempted, is unconstitutional and void.”
The motion was overruled by the court. A trial was then had before a jury, and a verdict obtained for the plaintiff for $635.02. The defendant Cook brings error.
The first, second, fourth and eighth grounds above stated are sufficient to sustain the defendant’s motion, and it ought to have been granted. The affidavit confers jurisdiction in this class of cases if the court obtains it at all. In the particulars stated in the objections referred to it was defective. It did not show the existence of the statutory requirements to authorize the issuing of the writ, and gave the circuit court no jurisdiction to proceed in the case. This Court held, under the statute of 1873 (1 Sess. Laws 1873, p. 466), that the proceedings in cases thereunder were special, and the statute must be strictly followed, “ that a party asserting a lien under that statute must be held to a strict compliance with the legal provisions in regard to the nature of the claim, and the steps prescribed for the institution and perfection of the lien.” Woodruff v. Ives 34 Mich. 320; Haifley v. Haynes 37 Mich. 535; Clark v. Adams 33 Mich. 159.
The present statute is a substitute for that of 1873, and still more complicated in its provisions, and both justice and policy require quite as rigid cónstruction in its application as was held necessary by Mr. Justice Graves in construing the former.
I am very much inclined to think that the objections taken to the writ in this case are well founded. It names no person as defendant in this case, and while it requires service to be made upon the owner of the logs upon which it is sought to make the lien, the sheriff is left to determine who is the defendant and who is the owner of the logs. He .is allowed to determine whether the person named in the writ is the proper defendant. It is very questionable whether such judicial powers can be conferred upon the sheriff; we prefer, however, to pass that question for tire present, and others raising constitutional considerations. It is hardly proper for this Court to discuss the constitutional questions raised by counsel until a case shall have been presented to the court below in which it otherwise had jurisdiction.
The judgment must be reversed with costs.
Campbell, J. concurred.
Coolet, C. J. The statute under which this proceeding was instituted had for its object to provide a simple and certain remedy for the enforcement of liens by laborers upon logs. For this purpose an attachment of the logs is provided for, and the case proceeds in rem. Before the attachment is Served, ah affidavit, the form of which is given in the statute, is to be made and attached to it. The circuit court has jurisdiction when the claim exceeds one hundred dollars, but when two or more persons have claims in sums less than one hundred dollars each, they are permitted to unite them, and designate one of their number their agent or attorney for prosecuting the lien or any suit necessary for enforcing the same.
In this case twenty-six persons unite their claims, and sue in the name of one person who represents himself as agent and attorney for all for the collection of their claims. It is objected to the affidavit that it fails to allege that the claimants have united their claims, and have designated the plaintiff as their agent or attorney for prosecuting the lien claimed by each, or any suit necessary to enforce the same. Also, that it fails to show that each of the several claims was under one hundred dollars in amount.
These objections were made on motion to dismiss. They are somewhat technical, and do not go to the merits. The statute gives a form for an affidavit adapted to the case of a single claimant, and the form has been followed in this case with an evident purpose to adapt it to the case of several claimants, but without entire success. But instead of dismissing the suit, it would have been much more in accord with our practice in analogous cases to permit a new affidavit to be made and annexed to the writ; and this, probably, the circuit judge would have done had he deemed the one objected to insufficient. He did not take that course, and the ease proceeded to trial and judgment.
We must assume that it appeared on the trial that no single claim exceeded a hundred dollars, since if it had, the defendant, on objection based on that ground, would have had it rejected. This being so, it is impossible to see or suggest how the defendant has been injured by the technical • defects of the affidavit. The case would have proceeded in the same way and resulted in the same judgment had the affidavit been perfect. And the question now is whether the judgment shall be set aside and the proceedings quashed for defects which have resulted in no injury, and which might have.been remedied by the party if the circuit judge had believed they were defects in fact. ¥e think not.
The statute provides that judgments shall not be stayed, reversed, impaired or in any way affected by reason of a number of specified defects, or “ for any other default or negligence of any clerk or officer of the court or of the parties, or their counsellors or attorneys, by which neither party shall have been prejudiced,” and authorizes the defects to be supplied or amended by the court of original jurisdiction or by the court into which the judgment shall be removed by writ of error. How. Stat. §§ 7635, 7636. This case is clearly within the equity of the statute, and a new affidavit might be supplied even here if we deemed it necessary. But after judgment such defects as are here pointed out may be disregarded entirely.
The objection that the affidavit does not show who is owner of the logs has no force. The statute neither expressly nor by implication requires it. On the contrary it supposes there may be cases in which the owner will be unknown, apd the form given for the writ contains a command to the officer to make service upon the owner, if he is known to the sheriff and resides' in the State. This form was followed, and the command is a very proper one.
The statute is remedial and useful, and ought not to receive a narrow and technical construction. We know of no constitutional objection to it, and think the judgment should be affirmed.
Champlin, J. concurred. | [
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Champlin, J".
This suit originated in a justice’s court, where plaintiff obtained judgment. The action is trover to recover the value of a horse alleged to have been converted by defendant. The material facts are as follows : June 10, 1881, plaintiff, then being the owner of the horse, sold him to one Abram-Young for $110, and received down $36, and took Young’s note for $74, payable May 10,1882, secured by chattel mortgage on the horse. At that time Young resided in the township of Grant, in St. Clair county, and the chattel mortgage was filed in that township on the 4th day of August following, with the proper officer. The note was not paid at maturity, and on the 17th of May, 1882, plaintiff went to the township clerk’s office and took the original mortgage from the files, and placed it in the hands of one S. W. Gilbert, who was a constable, with directions to seize the property and foreclose the mortgage.
The plaintiff had no legal right to take the mortgage from the files. It had become part of the public- records, and the clerk should not have permitted it to be taken from his cus tody. A certified copy would have answered every purpose of the original in showing that the mortgage had been filed in accordance with the filing thereon endorsed.
Gilbert went to Young’s, and seized the horse on the chattel mortgage, and took it to his barn. The next day Young replevied the horse from Gilbert, who notified Warner of the fact. On the return-day, Young, Gilbert and Warner appeared before the justice, — -Young with an attorney, and Warner acted as the attorney for Gilbert. The plaintiff declared orally for the unlawful detention of the property,. and Wane', for Gilbert, pleaded the general issue, and gave notice that defendant took and held the property, at the request of Warner, by virtue of a chattel mortgage, and that “ he took the property as an authorized and qualified constable.” The plaintiff announced himself ready for trial, but Warner, for defendant, applied for an adjournment, not for the purpose of obtaining witnesses, but of obtaining the-assistance of counsel. No legal cause was shown for an adjournment, and it was the duty of the justice to proceed with the trial.
The defendant announced himself as ready, and evidently with a view to exclude further participation by Warner,, stated to the justice that he would defend the .suit himself,, and thereupon Warner withdrew and left the court-room and paid no farther attention to the matter. The justice then proceeded with the trial. The docket of the justice shows-that Abram Young, Mary J. Young, Isaac Young and the-defendant, Gilbert, were sworn as witnesses for plaintiff in that suit, and that the defendant offered no evidence. The-justice found that the defendant did unlawfully detain the horse, and assessed his damages for such detention at six cents and costs, and rendered judgment accordingly.
It appears that on the trial the defendant Gilbert produced the mortgage at the request of the justice, and he filed it in the cause, and it was left with him and never was returned to-the files in the clerk’s office. It also appears that the plaintiff Young and the justice tried both sides of the case, and not content with showing that he was the general owner of. the horse, and as such entitled to his possession, he proceeded to show that he had an offset against the note which the mortgage secured, more than sufficient to pay the same; and it was claimed by Young and held by the justice that therefore the mortgage was paid and had ceased be a lien. The fallacy of this position need only be stated to be seen.
Under the facts above narrated, the judgment rendered in the replevin suit against Gilbert for unlawfully detaining the horse is not binding upon Warner, the plaintiff in this suit, and he is not concluded thereby. After the trial of the suit of Young against Gilbert, and on the same day, Young traded the horse to defendant Comstock. There was testimony tending to prove that Comstock knew of the mortgage in question at or before he traded. . Comstock swears that he told him that “ there was no mortgage in the clerk’s office; it was in the hands of the court.”. Before bringing this suit the plaintiff caused a demand to be made on defendant for the horse, informing him of his mortgage lien thereon, and defendant refused to deliver the horse to the plaintiff to enable him to proceed with the foreclosure of his mortgage. The circuit judge on the trial, after calling the attention of the jury to the facts, proceeded as follows : “ It is my opinion that the justice having found that Young was entitled to the property under the writ of replevin, after issue had been joined by the plaintiff, acting for Gilbert, in which the chattel mortgage was set up as the justification, it being then due, that the judgment of the justice’s court cannot be inquired into collaterally, and having become final by the failure of the plaintiff to take steps to reverse it, that it is now fatal to any recovery on the part of the plaintiff in this suit, and as a consequence your verdict must be for the defendant.”
In this the court erred. The relation between Gilbert and Warner at the time of the trial before the justice, and the circumstances attending the trial, were 'not such as to make Warner the real party defendant, so as to bind him by the judgment. In taking and detaining the horse, Gilbert merely acted as the agent of Warner. Agents and principals do not by virtue of sucb relation have any successive connection to rights of property. They are not in privity with each other, and the principal is not concluded by a judgment in a suit brought against his agent. The fact that the principal acted as attorney for the agent at the trial does not change the status of the parties, or affect the rights of the principal, or extend the scope and effect of the judgment against the agent.
The judgment of the circuit court must be reversed and a new trial granted. Plaintiff will recover his costs of this Court.
The other Justices concurred. | [
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Sheewood, J.
Paul Palmer died on the 3d day of April, 1883. On the 7th of April, 1880, he made and executed a bill of sale to the defendant, reading as follows:
“ Know all men by these presents, that for and in consideration of the sum of one dollar to me in hand paid, the receipt whereof is hereby acknowledged, and also for the further consideration of the natural love and affection I have for my son, John H. Palmer, I do hereby sell, assign, transfer and set over unto the said John II. Palmer all my right, "title and interest in and to all personal property of whatever name and nature I am possessed of as owner, hereby intend ing to convey all money, notes, credits and personal property of every kind, reserving, however, to myself and to my wife, Nancy M. Palmer, if she survive me, and until the date of my death, and unto my said wife, until the date of her death, if she survive me, the full control, use and benefit of the-same during the natural life-times of myself and my said wife, for our mutual support and maintenance. Hereby meaning to convey to my said son all of said property, subject, however, to the use of the same during our life-times as-above reserved.
In witness whereunto I hereto subscribe my name this 7th ■day of April, A. I). 1880. Paul Palmee.
In presence of
Ogden Tomlinson.
M. P. Jostlyn.”
Paul Palmer, at the time this bill of sale was executed, had about $2000 worth of property. About a year before his death he purchased a mortgage of $800. Soon after the-death of Paul the maker of the mortgage paid the same, amounting to $863, sixty-three dollars of which was received by the plaintiff and $800 by the defendant, and both parties joined in a discharge." Pour hundred dollars of this eight hundred, defendant, after its receipt, loaned out on a mortgage. On the 18th day of June, 1883, the plaintiff demanded! the money sued for, of the defendant. He then made application for the appointment of an administrator on his father’s estate, and he was appointed special administrator on the 30th of June thereafter.
A general administrator was appointed on the 6th of August, 1883, and the account of the special administrator was settled and‘he discharged on the 17th oj: September following. After an administrator was appointed, and before bringing suit, plaintiff several times made demand for the $800 of defendant, but he refused to pay her, and turned over the mortgage and the balance in money to the administrator.
On the 21st of August plaintiff brought this suit, claiming that the money was the proceeds of property owned by her husband on the 7th of August, 1880, and-that as such she was entitled to the $800 under the reservation clause contained in the bill of sale from Paul to his son, above mentioned.
The ease was tried at the Kalamazoo circuit, and under the direction of the court the jury rendered their verdict for the plaintiff. The defendant brings error.
This judgment cannot be sustained. The record does not show that the property mentioned in the bill of sale was ever delivered to either of the parties before the death of Paul, but on the contrary it appears that he had the possession and control of the same until he died, the plaintiff merely having the charge thereof for the deceased. Under such circumstances, after the appointment of the administrator, no other person was entitled to the custody or control thereof; neither could any other person sue for the same until the title thereto or the possession thereof had been determined by the judge of probate.
It appears from the record that, when the dispute arose as to the ownership or possession of the property sued for, the defendant turned it over to the custody of the administrator. Such was his legal duty, and he could not be made liable for the same until the judge of probate determined by his decree to whom the property belonged, and who was rightfully entitled to the possession thereof. The other questions raised are not properly before us for discussion.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Champlin, J.
"Plaintiff insured liis house and household
furniture, clothiug and provision therein, in defendant company. The house he valued in the application at $550, insured for $400; and the personal property was valued in the policy at $400, and insured for $300. The house and a portion of its contents were destroyed by fire on the 13th or morning of the 14th of January, 1882. The officers of the company seem to have entertained the opinion that the house ■was burned by plaintiff to defraud the company, and refus. ing to pay the loss, this suit was brought upon the policy. The defendant pleaded the general issue and gave notice that? on the trial it would introduce evidence to show that the fire alleged in plaintiff’s declaration was caused by the fraudulent act of the plaintiff, with intent to injure and defraud the defendant. The trial resulted in a verdict for plaintiff, and the defendant brings the case into this Court and assigns twenty-seven errors. Six of these refer to rulings of the court in the admission of testimony, and the remainder to alleged errors of the court in charging and refusing to charge the jury as requested. We consider it unnecessary to specify with particularity the errors assigned upon the admission of testimony. It is sufficient to say that we have examined them with care, and are satisfied that none of them are well taken; and the same may be said with respect to those which are based upon the charge of the court as given.
The issue to be tried under the notice given in accordance with Circuit Court Pule 104 was brought within a narrow compass as matter of defense, after plaintiff had made his case. And we see from the record before us that the defendant introduced testimony upon the point set up in its notice. Defendant’s counsel now claims that the building was overvalued in the application and policy, as shown by the testimony of actual value produced upon the trial, and that such overvaluation- constituted a warranty, and if not correct, avoided the policy. The application states the estimated value at $5.50, and the insurance applied for, $400, and it was insured upon the latter basis. It also states that the application is to be deemed a warranty of the facts stated therein, and a part of the contract of insurance. ■ The charter and by-laws are also made a part of the contract of insurance. Section 18 of the charter reads as follows:
“ Sec. 18. This company will pay three-fourths of the actual value of the buildings at the time of burning, and also three-fourths of the cash value of. personal property insured, or of the damage done thereto, provided they are insured to that amount. But if the insurance is equal to or greater than the actual value of the insured property, the insured will not be entitled to more than the-said three-fourths of the actual value, as determined by the board of directors.”
Construing the application and this section of the charter together as part of one contract, it is not perceived how any overvaluation can become material. The charter guards against overvaluation by providing in such case the company shall only pay three-fourths of the actual value at the time of the loss, not that it shall he entirely exonerated from payment. The only clause with reference to forfeiture is at the close of section 10 of the By-Laws,.which reads: “If there be any fraud or false swearing with' fraudulent intent, the claimant shall forfeit all claims by virtue of the policy for such loss.” This refers to representations required to be made in that section after a loss has occurred, and with reference thereto. The testimony as to actual value ranged from $150 to $500, and counsel for defendant submitted a question to the jury to find the actual value at the time of the fire, and in answer they found it to have been $366.66. If the policy had contained provisions to the effect that over-insurance would render it void, it would seem like splitting hairs to say that a man’s judgment of the value of his building which differed $33.31 from that placed upon it by the verdict of a jury based upon the judgment of several witnesses, constituted a breach of warranty of value. Besides, this statement of value was made by the plaintiff in September, 1819, and there may have been, and very likely was, some depreciation in value at the time it was burned, in January, 1882.
The defendant’s counsel requested the court to instruct the jury as follows:
1. In this cause it is not necessary for the defendant to prove the plaintiff’s fraudulent act beyond reasonable doubt; there is no need of more than a preponderance of evidence.
2. In this cause the jury ought to find for the defendant •on any issue where there is a preponderance of evidence in favor of the defendant.
3. The estimated value set down in the application signed by Frederick Schmidt are his estimates, and not the estimates ■of the defendant.
4. No estimate of value set down in the application signed by the plaintiff is, by virtue of said application, any more than the plaintiff’s own estimate.
5. The plaintiff cannot recover in this action more than three-fourths of what, at the time of the fire, was the cash value, or so much of the insured property, as was burned.
6. The defendant is not estopped by any valuation of the insured property, set down in the policy or application, from showing its actual value at the time of the fire by any legal ■evidence.
I. The measure of value which must govern in this caséis the fair market value at the time of the fire.
8. The jury are to determine the value of property in this ■case according to the fair market value at the time of the fire.
9. No valuation at the date of the issuing of the policy is to govern in this case.
10. The charter and by-laws printed in the policy are a part of the contract of insurance in this ease, and the plaintiff is bound thereby.
II. This is a civil and not a criminal case, and the rule of •evidence in this case differs from the rule in a criminal case in this : that in a criminal case guilt must be proved beyond any reasonable doubt; but in this case it is sufficient to prove by a preponderance of evidence only the fraudulent act of the defendant alleged in the notice adjoined to the plea.
12. The plaintiff cannot recover unless he has proved by a preponderance of evidence that he has used due diligence to ■save all property exposed to loss at the time of the fire.
13. The plaintiff cannot recover if it appears by the preponderance of evidence that at the time of the fire, the qolaintifí did not use due diligence to save all property exposed to loss at the time of the" fire.
14. In this case mere neglect of duty to use due diligence to save all of the insured property exposed can defeat the plaintiff’s right to recover anything.
15. The defendant is a mutual company; the plaintiff was-a member of the company, and by the contract of insurance in this case was bound to comply with all that the same required of him.
16. The charter. and by-laws in this case form part of a. special contract between the parties.
17. If the jury find that the plaintiff,- in presenting his-claim to the defendant, was guilty of any fraud or false-swearing, with fraudulent intent, then the plaintiff cannot-recover anything in this suit.
18. In this case the plaintiff, by false swearing with fraudulent intent, can forfeit his claim to any recovery.
19. In this ease the plaintiff can by fraud forfeit his claim to any recovery.
■ 20. The plaintiff is estopped by his proof of loss, and cannot recover in this action for any article or articles of personal property not mentioned in his proof of loss.
21. If the house accidentally caught on fire, and the plaintiff, when he could thereafter- have had the fire put out by the exercise of ordinary diligence, fraudulently contrived or allowed the house to be destroyed by fire, and fraudulently desisted from the exercise of ordinary diligence, the plaintiff cannot recover.
22. As to the personal property burned, the plaintiff can recover for the same no more than three-quarters of the cash value thereof at the time of the fire. The cash value mentioned in the charter means the cash value in the market at-the time of the fire.
All of which were granted and given to the jury excepting-the following: “ The plaintiff is estopped by his proof of loss, and cannot recover in this action for any article or articles of personal property not mentioned in his proof of loss.” To the refusal to give this request defendant duly excepted, and has assigned error thereon. There is hardly room for the doctrine of estoppel to apply for the cause stated in the request. A person is estopped to show the existence of a fact when, by his act, declarations or conduct, it is against conscience that he should be permitted to“'show the truth. In order to preclude the party, the opposite party must have done some act or changed his situation in reliance upon the statement or conduct of the party to be estopped. But the defendant has done nothing upon the faith of the proofs of loss by which they would be prejudiced if some articles were proven on the trial to have been lost, which were not enumerated in the proofs of loss made out and forwarded to the company. The ruling of the circuit judge was correct. The jury have passed upon the testimony in the ■case under proper instructions from the court, and the judgment based upon their verdict must be
Affirmed.
The other Justices concurred. | [
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Champlin, J.
This is an application by the Attorney General for leave to file an information in the nature of a quo warranto against the Erie & Kalamazoo Railroad Company. Notice was given to the respondent, and it has been heard in opposition to the application. The Erie & Kalamazoo Railroad Company was chartered by an act of the territorial legislature of Michigan, approved April 22, 1833 (3 Terr. L. 1125). The charter was perpetual, but was amended in 1816 so as to authorize the Legislature at any time to alter, amend or repeal it.
As originally granted, the charter authorized the company to construct a railroad from Port Lawrence through or as near as practicable to the village of Adrian, and thence on the most eligible route to such point on the Kalamazoo river as they may deem most proper and useful. Important additional franchises were conferred upon the company by an amendment of its charter by an act approved March 26, 1835 (3 Terr. L. 1392). And by another amendment made in 1816, they were prohibited from constructing their road beyond the village of Adrian. The charter empowers the company to transport property and persons over their road by the force of steam or other power, and to charge and col lect tolls for the same. Under the grant of power conferred by this charter, the Erie & Kalamazoo Railroad Company located and constructed its road from Port Lawrence (now Toledo) to Adrian. As located and constructed, the road passed through the village of Palmyra, at which a regular passenger and freight depot was established. In 1849 the Erie & Kalamazoo Railroad Company leased its road and franchises to the Michigan Southern Railroad Company, in perpetuity.
The Palmyra & Jacksonburg Railroad Company was chartered by the territorial legislature when the township of Port Lawrence constituted a portion of Monroe county. After the loss of the “ disputed ground ” by the Act of Congress defining the northern boundary of the state of Ohio and admitting -the State of Michigan into the Union, and the assent of Michigan thereto, the Legislature of this State passed an act by which the State agreed to release certain securities against the Palmyra & Jacksonburg Railroad Company, in consideration that it would release so much of its road as lay between the Michigan Southern road then owned by the State, and the Erie & Kalamazoo Railroad, and it was enacted that it should not be lawful for the Palmyra & Jacksonburg Company or its assignees ever to construct its road southerly beyond the Southern Railroad so as to connect with the Erii & Kalamazoo Railroad. Sess. L. 1846, p. 288. This legislation on the part of the State was in the interest of its own enterprise in building the Michigan Southern from Monroe to New Buffalo, by preventing the traffic which would pass over the Jacksonburg road from going to Toledo over the Erie & Kalamazoo road.
In 1846 the Michigan Southern Railroad Company was incorporated, and the-State sold to this corporation the Michigan Southern Railroad, and it undertook the completion- of the project which had been commenced by the State as part of her scheme of internal improvements. By the act of incorporation the Michigan Southern Railroad Company were bound to bnild the Tecumseh branch from the village of Tecumseh by way of the village of Clinton, and of Man- Chester to the village of Jackson, along the line formerly authorized to be constructed by the Jacksonburg & Palmyra Railroad Company. The road from Tecumseh to Manchester was completed in 1855, and from there to Jackson in 1857. In 1856 the Michigan Southern & Northern Indiana Railroad Company, which was the successor of the Michigan Southern Railroad Company, constructed a road from a junction with the track of the Erie & Kalamazoo Company about 5000 feet east from the station at Palmyra village to a connection with the road of the Michigan Southern Company at Lenawee Junction, so called; said Lenawee Junction being the point at which the Jackson branch road of the Michigan Southern Company connects with its main line of road between Adrian and Monroe. The main object of constructing this piece of road was to save the necessity of transporting passengers and freight coming from the direction of Toledo, destined over the Jackson branch or over the main line, towards Monroe, or coming from the Jackson branch or from Monroe, destined towards Toledo, around by the way of Adrian, thus saving a distance of about eight miles. Another object was to avoid the heavy grades and reverse curves which existed on the line of the Erie & Kalamazoo Company’s road between Palmyra and Adrian.
There are several affidavits filed by the Attorney General in support of his application, from which it appears that the Erie & Kalamazoo Railroad Company, as early as 1835 or 1836, constructed its road between Adrian and the village of Palmyra substantially upon the line at present occupied by it, and that a general freight and passenger station was then established and has ever since until recently been maintained at Palmyra village; that this village contains about two hundred and twenty-five inhabitants, three stores, three blacksmith shops, one wagon shop, three halls, a graded schoolhouse, two churches, one steam saw-mill and one paper-mill; that it is the only village in a township containing about two thousand inhabitants; that soon after the completion of the road between Lenawee Junction and the Erie & Kalamazoo road east of Palmyra village, the company control ling and operating said Erie & Kalamazoo Kailroad commenced gradually to withdraw the business which had been previously carried on over the Erie & Kalamazoo road between Palmyra and Adrian and to transfer it to the road to Lenawee Junction; but they still maintained depot facilities at Palmyra station and afforded the people all the usual accommodations at such station until 1867, when from that date to 1873 the railroad facilities at Palmyra station were still further diminished, and from 1873 the Lake Shore & Michigan Southern Pailroad Company (who succeeded the Michigan Southern & Northern Indiana in 1869) has ceased and refused to deliver at said village freight in quantities less than car-loads; and since December 1, 1882 they have ceased to maintain any depot or station at Palmyra village, and have ceased to run freight and passenger trains over that portion of the Erie & Kalamazoo Pailroad lying between the cut-off about a mile east of Palmyra village, and the point of junction of the Erie & Kalamazoo Kailroad with the Michigan Southern Pailroad near the city of Adrian, being a piece of road five and seventy one-hundredths miles in length; that instead of using said piece of road for the transportation of freight and passengers it is used as a place for the storage of cars, some of which are stock cars which are left in a filthy condition near to the residences of farmers, and constitute by reason of the stench arising therefrom a nuisance; that they have suffered this portion of the road to become out of repair and unfit for use in transporting passengers and freight; that a bridge has become so dilapidated that it is unsafe for engines or cars to pass over the same, and that none have passed over the same since December, 1882; that since that date no freight has been brought into the village except from the eastward and in car-loads; and that the company has continually refused to receive or deliver freight in quantities less than car-loads except as a special concession in favor of a paper-mill firm; that in 1877 they sold all the station buildings, water-tanks, sheds, platforms and appurtenances previously in use by the company in the village, and the same have been removed; that in 1881 they took up and removed- all the side track except about seven rods. These several acts are alleged to be a great public wrong and to have a blighting effect upon the village, transforming this modern Palmyra, like the ancient, into a Tadmor in the desert.
Affidavits have been filed and arguments made in opposition to this application, not denying that the station at Palmyra village has been practically discontinued, and the portion of the track above described wholly abandoned for the purpose of running and operating freight and passenger cars over the same, but excusing such non-user on economic grounds. "Whether such a justification can be made to appear as will excuse the Erie & Kalamazoo Railroad Company from performing its charter obligations I do not think it proper to pass upon at this stage of the case. Upon general principles of law, the Erie & Kalamazoo Railroad Company were bound to construct their road between the termini named in their charter; and having so constructed it, to run and operate the whole and every material part thereof until relieved therefrom by the Legislature. Whether there are exceptions to this general principle, and whether the company may be able to bring itself within such exceptions, I shall not attempt here to decide. The question does not appear to me to be presented in such shape as to call for an expression of opinion upon it.
So far as the affidavits produced in support of the application set out the grievances of the residents of Palmyra in relation to being deprived of railroad facilities at Palmyra station, although of vital consequence to them, they do not appear to me to affect the general public. If to the greatest number of the patrons of the road increased facilities are afforded, time is saved and expense of transportation lessened, it would seem that the greater number interested would be benefited by the management as complained of. Admitting all that is alleged against the management, yet I fail to discover how a writ of quo warranto will afford redress to the citizens of Palmyra. If the charter should be declared forfeited, it will not restore the railroad or afford shipping facilities in place of those now withdrawn. It may cause the right of way to revert to the owners and abate the nuisance complained of; but it will not give them a railroad station at Palmyra. It seems to me that those interested in having the Erie & Kalamazoo Pailroad Company perform its duties to the citizens of Palmyra have mistaken their remedy. Their remedy lies, not in a forfeiture of the charter, but in compelling obedience to its requirements. I therefore lay out of view those portions of the affidavits showing personal or private grievances. The affidavits do show a violation of charter obligations in relation to the abandonment of a portion of the road. The Attorney General has thought such violation to be of sufficient importance to the public to call upon the company to show why its charter should not be f orfeitedj and he applies to us for leave to file an information in the nature of a quo warranto. It is obviously the intention of the statute that corporations shall fulfill the conditions and perform the duties enjoined upon them by their charters as the terms upon which they are permitted to enjoy their franchises.
No doubt the requirement that the Attorney General shall first obtain leave of the Court to file the information implies that the Court shall exercise a legal discretion in passing upon his request. Cases might, by possibility, arise where a technical breach of the charter condition would, in case of forfeiture, be followed by results disastrous to the best interests of the people. In this instance the railroad company complained of is a quasi public corporation. It subserves great public interests. It may safely be said that the State has outgrown that narrow policy which sought to compel all great lines of transportation from the west to the seaboard to pass through ports or points exclusively within her own borders. The people of this State are deeply interested and affected by every facility afforded to the great producing and manufacturing interests in finding ample facilities for transportation to the markets of the world. The Erie & Kalamazoo road forms the main line of the Lake Shore & Michigan Southern Kailroad to Toledo and the east. ’ Into this main line a number of branch roads leading from the interior of the peninsula are connected.
The effect of a forfeiture of the Erie & Kalamazoo division upon a large section of the State would, for a time, be serious. Assuming, therefore, that here is a violation of the charter of the Erie & Kalamazoo Railroad Company, which, in the strict letter of the law, would call for a judgment of forfeiture, is it for the best interests of the people of the State, who are represented by the Attorney General, that such charter should be forfeited? Would we be exercising a sound legal discretion to permit the information, under the circumstances, tobe filed? No one can be foolish enough to suppose that the link would not be restored by a new road, at whatever cost. What interest of public policy or even individual welfare, requires such unnecessary work and useless outlay of capital ? Shall it be done simply as a penalty inflicted upon the Erie & Kalamazoo Railroad Company or its lessees? I agree with my brother Campbell that the penalty is too great in proportion to the offense alleged. Still, it must be remembered that the Court is possessed of no-dispensing power. If the papers before us show to our satisfaction that the Erie & Kalamazoo Railroad Company has willfully violated its charter in matters relating to the essence of the corporate grant, thereby affecting the contract between the State and corporation, our duty is plain. No matter what the consequences may be in such case, the leave asked should be granted. It is therefore proper to consider, assuming that the fact that since 1882 the Erie & Kalamazoo Railroad Company have neglected to run cars for the transportation of freight and passengers over that portion of its road between Palmyra village and Adrian is a violation of its charter in a material point, whether such violation has been willful, since it must be not only an intentional but willful violation of its charter which will render the violator amenable to this process for the purpose of depriving it of its charter rights. In determining this question the entire history of the road, as well as of those with which it has been connected and by which it has been managed, is proper to be considered. Railroad facilities for the people of the township of Palmyra have not been lessened, except at Palmyra station, while others have been established in close proximity. A glance at the map introduced by the respondent will show; relatively the respective localities and distances. A through line of railroad from Toledo to Adrian has been maintained and operated. It is certainly questionable whether the discontinuance of a station upon a line of road at a place not named in its charter as a point through which it must pass, will constitute a ground of forfeiture of the charter, and I do not express any opinion upon it; and,[aside from this act, the change of route by the lessees of respondent, and the management and operation of the railroad leased by them, do not indicate a design to willfully violate the charter of the Erie & Kalamazoo Railroad Company. It is true, the people of Palmyra, by repeated petitions, besought both the Erie & Kalamazoo Railroad Company and its lessees to do them justice by continuing a general station at the village ; but the question of the right to the station is not so clearly of the essence of the contract between the State and the company, and undisputed, as to fasten upon the company the design to willfully violate the contract in the discontinuance thereof.
I am not satisfied, from all the facts before us, that the failure of the Erie & Kalamazoo Railroad Company to run and operate its road the whole distance from Toledo to Adrian has been willful. It evidently left its management and mode of operation entirely to its lessees; and while it has been engrafted into the system of railroads operated by its lessees, it has not become an integral part thereof, and its franchises and privileges are independent of such lessees and must be preserved by its own action; and it must be held responsible for the performance of those duties devolving upon it by the legislative grant; and now that its attention has been specially drawn to this obvious breach of duty by the Attorney General, should it persist in the course it has pursued for the past two years (unless relieved from the performance thereof by the Legislature), I shall feel it my duty upon a future application, speaking for myself, to grant leave' to file an information, in which case the whole range of inquiry will be opened to investigation on behalf of the State.'
For the reasons stated I think the present application should be denied. | [
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Sherwood, J.
The plaintiff in this case claims damages for the breach of a contract for hire for a year.
The contract reads as follows:
“This agreement, made the 29th day of October, A. D. 1880 between M. L. Tallón and Grand Portage Copper Mining Company, both of Houghton county, Michigan. The said M. L. Tallón has agreed to enter into the service of the said Grand Portage Copper Mining Company as general superintendent of said mine, both underground, and on surface and promises faithfully, honestly and diligently to devote his time to the best interests of the said Grand Portage Copper Mining Company. In consideration whereof the Grand Portage Copper Mining Company agrees to pay the said M. L. Tallón the sum of two thousand dollars per year, payable in monthly payments.”
This contract was duly signed by the parties, and under it the plaintiff, m November, 1880, entered the service of the defendant, and continued-in the same until the 21st day of March, 1883, when he was discharged and paid by the defend ant up to the first day of April following. Payments were made monthly to plaintiff for his services during the period. No other arrangement was made for plaintiff’s service or terms thereof, except as appears in the contract above given. On the 23d day of October the plaintiff had the following conversation with the president of the company, whose name was "Wertin: “I said to Mr. "Wertin — it was coming on the expiration of the second year — I asked him if he was satisfied and he said, yes.” Under this contract and statement the plaintiff claimed a hiring by the year. No special reason seems to be assigned or given for the discharge of "the plaintiff.
The defendant claims the hiring was not for the year, but from month to month. The cause was tried before a jury, and the plaintiff had judgment. It was substantially admitted upon the argument if the hiring was for the year the plaintiff was entitled to recover. This fact was left for the jury to find, under all the circumstances, and this is alleged as error.
"We think the question was properly submitted to the jury. What the parties understood and intended upon this subject must govern, and that could only be gathered from the written contract offered in evidence. The conversation between the plaintiff and the president of the company, and the manner the parties dealt with each other, and the length of time the plaintiff had already served, — these were all to be taken into consideration; which, among other things, involved the credibility of the witness, and that, of course, was for the jury.
It was claimed the written contract was not competent testimony upon the issue presented. We do not concur in this view. It was competent as tending to show the amount of wages and value of services; and in view of the testimony, which does not seem to be questioned, that the agreement for service had never been changed, really made a very important piece of evidence in determining the rights of the parties.
We find nothing in the charge or the refusals to charge, to which exception can be properly taken, and the judgment of the circuit court must be affirmed.
The other Justices concurred. | [
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Cooley, C. J.
This is an action of ejectment to recover •two forty-acre lots of land in the township of Montrose, ■Genesee county.
The two lots were purchased of the Government by Dudley Gilman in 1854. In 1866, Gilman sold and conveyed them to his son William, who two years later sold .and conveyed to the plaintiff Morse. Morse leased the land to one Cole who went into possession, but five or six years later repudiated the tenancy, and notified Morse he had purchased the land of one Cotharin. Morse took no action -at the time to enforce his rights against Cole, but in 1880 he deeded an undivided half of the lots to the other plaintiff,. Perkins, and the two afterwards united in bringing this suit.
The defendant claims title as follows: In March, 1868,. while William Gilman was owner, he mortgaged one of the two lots to Edward Clark for one hundred dollars. Clark subsequently assigned the mortgage to Cotharin. The plaintiff Morse, when he bought of William Gilman, gave back a mortgage of the two lots for $136.04, and this mortgage' also was assigned to Cotharin. Some question is made of the sufficiency of the proof of these assignments, but we think without sufficient reason.
While Cotharin held the two mortgages he undertook to-foreclose .the same under the power of sale contained therein, and for that purpose united the two in one advertisement of sale, and caused both parcels to be struck off to himself on one bid and for one gross sum. As one of the mortgages-covered but one of the parcels of land this was clearly irregular. There were other irregularities, but they need not now be mentioned, as the one specified was fatal to the foreclosure. Cotharin, however, claimed title under these proceedings, and on August 26, 1872, sold and conveyed the land to-Cole, the tenant of Morse. Cole from that time until December 1879, occupied the land to the knowledge of Morse, claiming to be owner, and then sold to defendant Byam, for the sum of fourteen hundred -dollars, of which Byam paid two hundred dollars down. The bargain was that Byam was to take the land subject to a mortgage of twelve hundred dollars to Cotharin ; and Morse being a justice of the peace,. Byam employed him to draw the papers on this sale. He did draw them, and took the acknowledgment of Colo to the conveyance, with full knowledge that Byam was purchasing and Cole was conveying the same land which he, Morse,, had formerly owned. This is testified by himself very fully and frankly, and he also testifies that he did not at the time make any claim to the land himself, or apprise Byam that Cole was not the owner.
The circuit judge in summing up the case to the jury stated the facts and his own view of the law on this part of .the case as follows:
“ It appears from the proofs that the defendant here is a bona fide purchaser of the property, and that he bought relying upon the title of Cotharin; that he paid somewhere in the neighborhood of $1400 for it,, paying down a portion of the money at the time the deed was given to him, and giving •back a mortgage for some $1200, which he afterwards paid. It further appears that during all that time the plaintiff Morse knew — -in fact knew when the defendant bought of Cole— that he was to buy the property and pay so much for it, and that no objection was made by him, and no claim of irregularity or invalidity in the proceedings was urged by him ■against the foreclosure; that he drew the deed; that he took the acknowledgment; that he was silent; that he made no •objection and no disclosure of any claim of irregularity in the proceedings. I therefore charge you, gentlemen, that the sale under the two mortgages may have been irregular, ■and perhaps may have been regarded void if proper proceedings had been taken with reasonable diligence by the plaintiff Morse to investigate the proceedings and to have them set ■aside. But if Morse was informed of Cotharin’s proceedings to foreclose the mortgages, and of Cotharin’s claim to the title of this land, and claim of right to convey the same, and of his dealings with the title as-his own; also that he had sold the same to Cole, who Morse claimed was his tenant, and if he knew the defendant was about to purchase and pay $1400 for the property, part cash and part on a mortgage, and if he ■drew the deed from Cole to the defendant knowing that Cole. had no other title than that which Cotharin had acquired by the foreclosure, and if at that time he had abandoned the land and suffered Byam to purchase it relying upon the validity of •Cotharin’s title; and if the plaintiff Morse at that time made no claim to the land, — defendant would be warranted in believing that Morse had assented to the regularity and validity ■of the foreclosure proceedings, and had waived any objections to their irregularity.- While his silence would not ■operate to make such proceedings regular, or to transfer the legal estate out of him, yet his conduct would estop him from showing an irregularity in the foreclosure proceedings as •against the defendant purchasing in good faith and for a valuable consideration. And his silence until the defendant had made full payment, and without notice to Byam, would place him in such a position that he would not be entitled to recover as against Byam. And if it was true that Cole was his tenant, and if the proceedings turned out to be invalid, the defendant coming in under Cole would be entitled to notice to quit before an action of ejectment could be maintained against him.”
Under this instruction the jury returned a verdict-for the defendant.
Whether the instruction was strictly accurate in all particulars it is not necessary for us to determine, because we think under the undisputed facts of the case the verdict should have been what it is, and the error, if there was any, was harmless. A brief recapitulation of some of the leading facts in the case will make this apparent.
Cole, when occupying the land as tenant of Morse, could not, by buying in an adverse title, relieve himself of the obligations of his tenancy; and when he purchased the rights of Cotharin and repudiated the tenancy, Morse, had he seen fit to do so, might undoubtedly have dispossessed him. Ryerson v. Eldred 18 Mich. 12; Fuller v. Sweet 30 Mich. 237; Bertram v. Cook 32 Mich. 518; Jochen v. Tibbells 50 Mich 33. But the conveyance by Cotharin to Cole would have: transferred whatever rights the former had in the land; and these, after the invalid foreclosure, were simply the rights of a moi’tgagee: Gilbert v. Cooley Walk. Ch. 494; Nims v. Sherman 43 Mich. 45; Baldwin v. Cullen 51 Mich. 33. Asmortgagee he would be entitled to proceed to a valid foreclosure in equity if occasion should require it. State Bank v. Chapelle 40 Mich. 447; Vary v. Chatterton 50 Mich. 541.
By statute in this State the mortgagee of lands is not entitled to possession until after foreclosure. Caruthers v. Humphrey 12 Mich. 270; Newton v. Sly 15 Mich. 391; Newton v. McKay 30 Mich. 380; Wagar v. Stone 36 Mich. 364; Lee v. Clary 38 Mich. 223. But this is a provision for-the benefit of mortgagors, and they are not obliged to insist upon it. If in mortgaging their lands they give a deed which in form is absolute, they thereby convey the right to-possession: Bennett v. Robinson 27 Mich. 26; Jeffery v. Hursh 42 Mich. 563; and consent to the mortgagee taking possession, wliieli would be good until revoked, might be given without any waiting whatever, and as informally as possible.
In this case it was not shown that Morse assented to the possession of Cole after the purchase from Cotharin ; but he took no steps to terminate it. And when during the continuance of that possession, he consented to be employed by defendant to draft papers on a purchase of the land by defendant from Cole, and did draft and take the acknowledgment of papers whereby Cole professed to transfer the title and did actually transfer the possession of the land for full value to defendant, — this assistance in the sale and transfer without interposing any claim to the land on his own behalf, cannot be regarded as anything short of an assent by Morse that defendant should receive the possession that Morse was assisting to transfer to him. And when defendant thus took possession, he must be deemed to hold it for the time being rightfully, and with at least the rights which Cole had, namely, those of mortgagee. Whether he could retain such possession until redemption had been made we need not consider, as it is not pretended that anything has been done to put defendant in the wrong since his possession began. Ilis possession is therefore still rightful, and this suit cannot be maintained. Reading v. Waterman 46 Mich. 107.
The judgment will be affirmed and the record remanded.
The other Justices concurred. | [
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Champlin, J.
Plaintiff brought ejectment against defendants to recover a piece of land containing about eight acres.
Previous to 1867 William Coat was the owner of one hundred and thirty acres of land which included the land in question. He died in 1858 leaving the defendant Eleanor Wells, his widow, and John Coak, Jane E. Pitt, George Coal: and Mary Ann Coak, his children and heirs at law, living at the time of his death. In 1861 the widow married the defendant Alfred Wells.
It appears that in 1867 the widow and heirs made or agreed upon a division of the inheritance setting off parcels to each. No dower had ever been assigned. By this agreement, which is very general in its terms but sufficiently definite to identify the several parcels, the eight acres in dispute were designated as the portion which the defendant Eleanor Wells was to have. A deed was introduced dated June 1, 1867, and acknowledged September 6, of the same year, by which Eleanor Wells, John W. Coak, Jane E. Pitts and George Coak, in consideration of one dollar, quitclaimed to Mai’y A. Coak eighteen acres of land, which it is conceded includes the eight acres involved in this suit. Notwithstanding this deed the defendants went into possession of the eight acres and used and cultivated the same, and have held exclusive possession thereof ever since, and have exercised acts of ownei’ship over the land, such as building a house and fencing the premises off-from the other land in accordance with the division agreed upon and a survey thereof made soon after the deed was executed.
The chain of title comes to this plaintiff through mesne conveyances from Mary A. Coak, but the proof is clear that each and all of the intermediate grantees have recognized their possession and have taken no steps to oust them until plaintiff commenced proceedings against them. On the trial defendants claimed' the land by adverse possession. The circuit jxxdge refused to sxxbmit the facts testified to, tending to prove adverse possession, to the jury, and directed a verdict for the plaintiff.
The circuit judge l’egarded the case as governed by the cases of Bloomer v. Henderson 8 Mich. 395 and Dawson v. Danbury Bank 15 Mich. 489. In this we think he erred. The facts proved brought this case within the principles enunciated in Bower v. Earl 18 Mich. 367, in which the two former cases are distinguished and it is needless to repeat what was there said. The testimony should have been submitted to the jury to determine whether the defense of title by adverse possession had been made out.
The judgment must be reversed and a new trial granted.
The otlierj Justices concurred. | [
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Champlin, J.
The plaintiff is a physician of twenty-five years’ practice, in the city of Detroit. On the first day of February, 1881, he commenced an action before a justice of the peace to recover a bill for medical advice, medicines and professional services rendered to defendant, and to a Mrs. Jackson at defendant’s request. The defendant demanded •a bill of particulars, which was furnished and showed an •account of twenty items, the first under date of December Í7, 1877, and the last, February 25, 1878. It also contained an item under date of July 1, 1878, for getting three witnesses for defendant, and at his request; and also a credit of ■six dollars cash, under date of February 28, 1878.
The defendant pleaded the general issue, and gave notice •of set-off and the Statute of Limitations.
The plaintiff testified in his own behalf, and gave evidence tending to support his bill of particulars, which, without interest, amounted to $66.50. He also testified to the payment of the item credited as cash, under date of February 25, 1878.
The defendant testified in his own behalf, and denied requesting plaintiff to attend professionally upon Mrs. Jackson, admitted that the doctor had treated him, but testified that it'was under a special agreement to the effect that the •doctor was to cure him for twenty-five dollars and “ no cure, no pay,” and that the doctor did not effect a cure. He also •denied having paid six dollars to the doctor.
The credit to be given to these witnesses, and the weight to be given to their testimony, was, by the court, very prop■erly left to the jury. He instructed them that if they believed the plaintiff’s testimony their verdict should be for him ; and ■on the other hand, if they believed the defendant’s testimony they should find for the defendant. He also charged them relative to the preponderance of testimony, and that the ■affirmative of the issues involved must be established by a preponderance of testimony.
The defendant’s counsel requested the court to charge the jury as follows:
First. That the items of plaintiff’s account prior to February 1,1878, are barred by the Statute of Limitations, unless the same were renewed by the payment of February 25,1878.
Second. That the burden of proof is with the plaintiff to .show such payments.
Thi/rd. That if the jury find that defendant was responsible, and plaintiff neglected to call on him for this account for nearly six years, they may take that fact into considera tion in determining whether plaintiff’s services were rendered tinder a special agreement, to wit, “No cure, no pay,” or not.
The third request was based upon testimony offered, but excluded by the court. Defendant’s counsel asked the defendant the following question: “ What were your pecuniary circumstances at the time of the making this account, and afterwards ?” The question was objected to and excluded as-'immaterial. The defendant offered 'it as a circumstance to-corroborate his testimony, and establish the fact that there was a special bargain of “ no cure, no pay.” The proposed testimony was entirely irrelevant to such issue, and had no-tendency to prove such bargain. Neither the great wealth nor the great poverty of the defendant would be any evidence of such special bargain. There was no error in excluding-the testimony or in refusing to charge as requested. The-second request was fully covered by the charge as given. The first request was proper, and unless covered substantially by the charge as made, the case must go back fora new trial.
The defendant gave notice that he should rely upon the-Statute of Limitations. There were nine items on plaintiff’s-account that bore date, and appear to have accrued more-than six years before the commencement of suit, commencing; on the 17th of December, 1877, and including January 28th,. 1878. The remaining charges are from February 1st to July 25th, inclusive; so that looking at the debit side of the account alone, the first nine items, amounting to thirty-seven dollars, were barred by the statute. But on the 25th of February, 1878, the plaintiff’s account shows a credit of six dollars, which, if actually paid by defendant, took the whole account out from the operation of the statute. Such payment, if made, was sufficient to render it an open and mutual account,, so as to prevent the remedy thereon being barred by the-Statute of Limitations. Payne v. Walker 26 Mich. 60; Chamberlin v. Cuyler 9 Wend. 126.
The point of contention, then, was whether this item of six dollars had actually been paid or not. The plaintiff testified that the defendant paid him the six dollars on account, and that he credited it to him at the time, and that the item of credit was correct. The defendant as positively testified that he never paid plaintiff the six dollars credited to him, or any other sum. This evidence should have been submitted ■ to the jury under instructions that if they found that this credit of six dollars had not in fact been paid, then all items of the account prior to the first day of February, 1878, were barred by the statute, and no recovery could be had therefor.
In looking into the instructions we do not find this point covered by the charge of the court. He calls the attention of the jury to the contradictions between the testimony of the parties, and gives them proper instructions with reference to the burthen of proof and weight of testimony; but he nowhere calls their attention to the facts as bearing upon the defense of the Statute of Limitations. What he said with reference to the payment of the six dollars is this: “ If you believe the defendant paid him six dollars on account, the payment of the six dollars would be evidence showing admissions by the defendant that he did owe the plaintiff something, or he would not pay him anything. The defendant denies that he paid him six dollars, and then you have the contradiction again ; the plaintiff says he' did pay him six dollars, and he credited it to him on account, so that you have the contradiction again; the one says, ' You paid me six dollars,’ and the other says, ' I did not.’ ” And, after reviewing the testimony somewhat at length, he concludes ap follows :
“ So, gentlemen, to go right back, the plaintiff sues on a professional bill. The bill is not disputed ; that is, that the services were rendered, or the amount. The defendant says, you agreed to make no charge if there was no cure, and it is not disputed that there was not any cure. The main point is, then, who you will believe. If you believe the plaintiff, you will find a verdict for the plaintiff. If you don’t believe the plaintiff, but believe the defendant, on this point of the twenty-five dollars, then your verdict will be for the defendant on that point. Then the next point is as to this woman. It is not disputed by the doctor rendering some services, but the defendant says that she paid him at the time. Doctor denies it. NextJ about this set-off. These are the three facts in this cause, and it all depends on what weight you attach to the evidence of the plaintiff and defendant on these particular questions. If you find, gentlemen, for the plaintiff, the plaintiff claims sixty-six dollars and some cents— $60.56 — with interest, $26.30, making $86.86. That is, if you believe the plaintiff’s story ; and, after all, it all depends on whom you will believe.”
It is proper to remark that the set-off referred to by the learned judge was an item testified to by defendant, under his notice of set-off, for services performed at defendant’s request in getting bail for plaintiff.
It will be seen that the learned judge excludes from the consideration of the jury the fact as to whether the six dollars had been in fact paid ; and if not paid, the items prior to six 3 years before commencement of suit would be barred. He gave them no instructions bearing upon this point.
For this error the judgment must be reversed and new trial granted.
The other Justices concurred. | [
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Cooley, C. J.
On October 31,1881, plaintiff and defendant were severally owners of undivided interests in a field of wheat on land occupied by them, and plaintiff gave defendant a bill of sale, whereby, for the expressed consideration of $275, he bargained, sold and conveyed his interest in the wheat to defendant, with warranty of title. The sum named as the consideration was duly paid. Afterwards plaintiff brought suit in assumpsit, claiming that, notwithstanding the bill of sale, he was entitled, by oral agreement made at the same time, to a portion of the wheat, in case the quantity, when harvested, exceeded 800 bushels, which it did.
On the trial plaintiff offered to show that at the time of giving the bill of sale this additional oral agreement was made. The evidence was objected to, the objection sustained and the defendant had judgment.
The plaintiff claims that this case is within decisions made by this Court, in which it has been held that a bill of sale is not supposed to embody the terms of the contract, but is given merely to evidence the transfer of title, and therefore does not stand in the way of showing by parol what the actual contract was. Picard v. McCormick 11 Mich. 68; Rowe v. Wright 12 Mich. 289; Trevidick v. Mumford 31 Mich. 467.
These cases are not in point. They are cases where„what was proposed to be shown was not inconsistent with the bill of sale. It was not attempted in this case to show a parol contract which could stand with the bill of sale, and be consistent with a transfer of title by it; but to show that that instrument, though it purported to evidence a transfer, was in fact to transfer a part of the wheat only. In other words ‘ the plaintiff proposed to contradict the bill of sale itself. But this was plainly inadmissible.
The judgment is right, and must stand affirmed.
The other Justices concurred. | [
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Campbell, J.
Defendants were sued as partners for a debt incurred by the firm for machinery furnished by plaintiff for a factory in Hastings, Minnesota. Under the charge of the court below a verdict was rendered for defendants, which depended on a denial of the existence of any partnership liability against Stevens.
On the 1st of March, 1882, the defendants entered into articles which recited the ownership by Niches of a patent for folding ladders, in which he agreed to give the others each one-third interest in Minnesota. Stevens agreed to furnish $5000 for the.purpose of putting up a factory in Hastings, and buying machinery and material, and was not to do any work in the factory unless he chose. Niches was to assist in putting up and setting in order the factory and machinery, and McCormick to attend to sales and manufacture. When the factory was completed they were all to be equal partners.
As soon as this was signed' the parties began operations, and bought machinery and property for the purpose of the manufacture, and Niches moved to Hastings from Michigan for that object. In the latter part of May or early in June Stevens went there and spent some weeks, as it is claimed, in looking after the business. ITe did not furnish the- full amount which he agreed to. The notes in suit were given for machinery purchased for the business and put up in the factory, which was nearly ready for use. There was testimony that during his visit at Hastings Stevens was introduced as a partner, said he was a partner, and acted as a partner, going twice with one of the witnesses to St. Paul to purchase property which was in Hastiixgs, as a site for the factory, and requested the same witness to keep an eye on the operations of the other partners and report to him.
In October, 1882, being written to on behalf of plaintiff for payment of this claim, he wrote back a letter treating the matter as a liability of the partnership, urging plaintiff to take back the machinery, and promising to arrange the balance satisfactorily. Evidence was also given that Stevens, on the 31st day of July, 1882, sent out various notices that he would not be liable for any future debts.
Defendant was allowed to introduce some talk after the contract was executed, to the effect that the partnership was not to commence until after the factory was finished. But it was not claimed that this was for the purpose of changing the agreement, but only to construe it; and Mrs. Stevens spoke of this as being said both before and aftex-, on the same day.
There ax’e several questions raised on the charges, but one is sufficient to decide the case. The court charged that the written contract did not make the parties partners, but only provided for a future partnership after the factory should be put in operation.
We think it’ created a partnership from the beginning. It contemplated action to be taken at once and continuously for the joint benefit. Stevens was to furnish the money in advance, and Biches was to give his time and attention to putting up the factory and machinery. These were the capital of the fixun to enable it to get into prosperous operation. It would be an anomaly.tó have capital paid in and expended, without any partnex’ship existing, and without any provision for future emergencies or failures. The pux-pose must be derived from the nature of the agreement, and not from the technical meaning of words as present or future, •standing alone. It was quite proper to use future words as to the interest to be owned in future property, but this will not do away with the necessary inference to be drawn from the immediate action of parties and expenditure of time and money in such a way as to be practically lost in case of there being no partnership carried out. We think the partnership began at once.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Campbell, J.
Under a foreclosure decree in this case, it was provided that defendant should pay the sum due by March 15,1883, and in default of payment that the premises might be thereafter sold. Instead of pursuing this decree, the circuit court commissioner advertised on the 21st of December, 1882, and sold on February 3,1S83, and an order nisi was entered February 23, 1883. No notice of any of these matters was given defendants. The commissioner reported a deficiency. On application for execution these facts appeared, and the court below refused to grant it, and complainant appeals.
The sale was premature and illegal, and defendants cannot be deemed to have waived any right, when they were not bound to suppose any sale could be had or report filed prematurely. The case is too plain to bear discussion.
The order must be affirmed with costs.
The other Justices concurred. | [
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Campbell, J.
This is’á contest over the will of Cynthia Southworth, made while she was a widow, before her marriage with appellant, and never revoked. Appellant contests it on the sole ground that her subsequent marriage to him was a revocation in law.
The will was made July 27, 1881, she being childless, and all the estate of which she was possessed at her death was owned before she married contestant. They were married February 21, 1882, and she died without children September 28, 1882.
Both the probate and circuit courts of Branch county, where she had resided, sustained the will.
Laying aside such decisions as are made under statutes, the only foundation which has -been suggested for holding a woman’s marriage to operate as an implied revocation is the common-law rule to that effect, which was based on the effect of marriage on a woman’s property and testamentary capacity. By marriage her personalty devolved on her husband, and left nothing for a will to operate on, unless, possibly, such rights in action as should not be reduced to possession during coverture. So it was further held that she could make no testamentary provision during coverture relating to her own property without her husband’s concurrence, and this would prevent a revocation, as well as any other testamentary act; and a will cannot be recognized which is not subject to revocation by the testator. These were reasons enough to maintian the common-law doctrine. And the exceptions show that these were the only reasons, for they only extended to wills under powers of appointment, and devises which were suspended during coverture and revived by the husband’s death. These doctrines are elementary, and a general reference to the authorities cited on the argument will suffice. See especially for the old doctrine, Forse & Hembling's Case 4 Coke 61 and notes to modern editions, and the reference to Plowden 343; also 4 Kent’s Comm. 523-527.
Our Constitution -has done away with all the disabilities of coverture on this head, and expr-essly authorized every married woman to make wills of her estate as if she were sole. This leaves her case to be governed by the same rule which would apply to any one else on change' of condition. Apart from some decisions based on statutory or peculiar local usages, the doctrine is quite uniform that marriage alone, without birth of issue, will not revoke a man’s will. It may be doubtful whether, under our statutes concerning children born subsequently, the birth of issue would have the same significance. That question is not before us. But there is no sound reason that we can perceive why, in the absence of statute, implied revocations should be extended, or should be differently treated as between men and women, when the property rights of married women have ceased to be hampered by marriage.
We do not think the case calls for the discussion of any ■doctrines which are not based on the rules and reasons of tho common law, and which, when we depart from these, would lead into conjectural and uncertain results.
We think the will was not revoked, and the judgments below to that effect must be affirmed, with costs against contestant.
The other Justices concurred. | [
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Sherwood, J.
The plaintiff and defendant owned adjoining lands in the township of Berry, in the county of Shiawassee, and the plaintiff brought suit against the defendant for obstructing a natural water-course, and thereby overflowing his lands and injuring his crops. The suit was discontinued on the 16th day of December, 1881, and the parties entered into an agreement to construct a covered ditch or drain for the purpose of carrying off the accumulation of water from the plaintiff’s land, the west half of which was to be constructed and maintained by the defendant, and the east half by the plaintiff. One David D. Dunning, who was interested in having the drain constructed, also joined in the contract and agreed to build the east one-third of the defendant’s half of the same. (See contract in margin. )
An effort was made by the several parties to construct the drain, but tbe water accumulated so rapidly that, until an outlet was opened of sufficient depth beyond the west end of the proposed drain to carry off the water as fast as it came down the stream, the drain could not be constructed. This outlet was on the defendant’s land, and wonld have required but a trifling outlay to have deepened and enlarged it sufficiently to have enabled all the parties to have completed the drain, and prevented a recurrence of the mischief complained of, and the proofs show that it was a work necessary to be performed before the defendant could fulfill his part of the contract, and must be precedent, to performance by the plaintiff of his part. Neither the plaintiff nor D. D. Dunning could enter upon the defendant’s land and open the outlet for the drain without becoming trespassers.
The defendant claimed he had given no right to open the outlet below the drain, and under the contract it was no'part of his duty to enlarge it. In this he was mistaken. He had agreed to construct the west half, and whatever was necessary to the fulfillment of his contract he was required to do. He failed and neglected to do this, and the plaintiff was therefore left to seek his redress upon the contract. This he has done, and now asks that he may recover his damages against the defendant for the injury stated in this suit. It was first tried in_ justice’s court, and the plaintiff recovered $50. On appeal to the circuit court, where the cause was tried by jury, the plaintiff again recovered.
We have examined the record carefully, and the charge given by Judge Newton in the case, and have failed to discover any error. Under proper instructions from the court, and upon proper testimony, the jury found that the defendant obstructed the natural course of the water in the stream in such manner as to occasion the injury complained of, by failing to perform his contract. They have also found the amount of damages sustained by the plaintiff, and we cannot disturb their verdict.
The judgment must be affirmed with costs.
The other Justices concurred.
This agreement, made and entered into this sixteenth day of December, 1881, by and between Homer B. Dunning, of the township of Perry, county of Shiawassee and State of Michigan, of the first part, and William S. Britten, of the same place, of the second part, witnesseth as follows: Whereas, the said first party is the owner in fee of the southeast quarter of section twenty-seven and the second party owns the north half of southwest quarter of section twenty-six, both in township five north, of range two east; and whereas, a suit is now ponding and undetermined between said parties for damages which said second party alleges he has sustained by reason of tbe first party filling up an artificial water-course or ditcb on his land, on said section twenty-seven, which said artificial water-course or ditch is described as follows: Commencing about sixteen (16) rods norlh of the southwest corner of the north half of the southwest quarter of section twenty-six aforesaid, thence running a southwestly course about thirty-five rods toa beaver dam. Now, therefore, it is mutually agreed, by and between said parties, their heirs, executors and administrators, to dig, erect and maintain a covered ditch from the highway between said sections twenty-six and twenty-seven, and about sixteen rods north of the southwest corner of the north half of the southwest quarter of said section twenty-six, and thence running in a southwesterly course to the beaver dam aforesaid. The box sewer is to be ten by twelve in the clear, of good white-oalc plank, except the bottom one, which may be one inch thick. The east half of said drain to be built and maintained by said second party, his heirs, executors and assigns, and who is for the purpose authorized to enter upon said land to dig, build, repair and maintain said ditch at his own cost and expense, and the other half of said ditch the first party is to dig, build and maintain at his own cost and expense, so that said ditch shall be kept open. And said parties further agree that Ezra Mason, county surveyor, is to survey said ditch, drain or water-course, and establish such a grade as he shall deem proper and expedient to carry out the purposes aforesaid. The first party is to give said drain sufficient fall to carry the water away from said box drain, so that the water shall not dam the water in said box drain. In other words: The first party is to lower the old channel from the lower or west end of the box sewer sufficient to take the water from the said box sewer, and keep the same open so as not to flood or dam the water back in the box sewer. One-half the expense of Ezra Mason in surveying, establishing and locating said ditch is to be paid by said parties equally. Said ditch to be dug on or before the 15th day of January, 1882, but the box need not be putin and the ditch all covered on or before the 25th day of May, 1882.
And I, David D. Dunning, hereby agree, for value received, to build and maintain one-third on the east end of the west half of said box ditch, and also to pay Mr. Mason, for locating said ditch, said proportion of the expenses for locating the same, and do said work within the time above specified, and as above mentioned. The grade of the ditch from the sewer or box drain to be the same as that of the sewer, and the grade of the sewer to be the same as the natural grade of the improved land of first party through which the ditch passes.
In witness whereof we have hereunto set our hands and seals the day and date first above written.
Homer B. Dunning. [Seal.]
his
William X S. Britten. [Seal.] mark.
David D. Dunning, [Seal.]
In presence of
Hugh McCurdy.
W. II. Kilpatrick. | [
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Sherwood, J\
The declaration in this case is on the common counts in assumpsit, accompanied by a bill of particulars consisting of three items. The plea is the general issne with notice of former suit and adjudication of the same matter in bar.- The case originated in justice’s court where, the plaintiff had judgment, and on appeal to the circuit the plaintiff again obtained judgment, and the proceedings therein had are before us on error for review. The cause was tried before the circuit judge without a jury, and the case comes up on special findings; the record containing also a bill of exceptions.
There was testimony supporting all the findings of fact, and from these findings it appears that another suit had previously been brought by the plaintiff against the defendant for the same cause before a justice of the peace in Mackinaw county, and a judgment rendered therein of no cause of action and for costs; that the declaration in the former suit was verbal on the common counts, and showed none of the items or particulars of the plaintiff’s claim; that the plea in the case was also verbally made, being the general issue, with notice of recoupment and set-off, with no particulars stated; that it was urged by the defendant on the former trial that the plaintiff’s suit was prematurely brought, his claim not being due when the action was commenced, and that the justice so held and did not pass upon the merits of the plaintiff’s claim, but made no entry upon his docket to that effect, other than his giving the judgment stated.
The circuit court permitted the justice and counsel in the case to testify as to what claims were made and litigated upon that trial, and the former to state that he gave judgment for the defendant upon the sole ground that the plaintiff’s claim was not due, and that he did not pass upon the merits.
Upon the testimony given the circuit judge found the above to be the facts. To the admission of this testimony and the findings of the circuit judge the defendant objected and took his exceptions.
¥e think the ruling of the court was correct, and .the judgment well supported by the findings. Nothing appears in the pleadings or record in the suit tried before the justice, showing what particular claims or items were litigated or passed upon in that court. The findings of the circuit judge show that the claim of the plaintiff was not then due. In order to bar the plaintiff’s claim it must appear that he had a legal right to bring his action therefor when his suit was brought, and that in the litigation had, the merits of his claim were passed upon by the ju'stice in giving judgment. Tucker v. Rohrback 13 Mich. 73. The evidence offered under the circumstances of this case was proper to show that the merits of the plaintiff’s claim were not litigated or passed upon in the former suit. Lyman v. Becannon 29 Mich. 466.
We find no error in the record and the judgment must be affirmed.
The other Justices concurred. | [
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Cooley, C. J.
This is an action of trespass quare clausum, begun in justice’s court. The plaintiff did not claim title by her declaration, but the defendant gave notice that title would come in 'question, and the case was certified to the circuit court.
On the trial in the circuit court the plaintiff gave evidence that she occupied the west half of a certain quarter section of land which she had purchased three years before; that the defendant Pliny Irwin occupied the east half of the same quarter section; that a line fence divided their respective possessions and each had cultivated the land up to this fence; and that in the fall of 1883 she had cut clover for seed on her side next to this fence, and the defendants had drawn it away, which was the [trespass complained of. On her cross-examination it was shown that in 1881 the county surveyor had surveyed this quarter section and by his survey the division fence was some ten rods on Irwin’s land, and since that time the parties respectively had claimed this strip between the old division fence and the dividing line indicated by the survey, and had been endeavoring to obtain and hold the possession as against each other.
The defendants then offered to prove title in Pliny Irwin to the east half of the quarter section, but the evidence offered was ruled out, and the trial judge certified that the title to land did not come in question. This ruling constitutes the error complained of.
There was no error in holding that title was not in question. It appears not to have been disputed that up to the time of the survey made by the county surveyor the' plaintiff was in possession up to the old division fence. If the survey showed that she- occupied any part of Irwin’s land, taking possession forcibly and against her will was not a proper remedy. To disturb a peaceable possession by force is a trespass irrespective- of ownership; and if the plaintiff had possession in fact, the forcible disturbance of her possession was made out beyond question. The judge was therefore right in treating the issue as one of possession merely.
The judgment is affirmed.
The other Justices concurred. | [
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Champlin, J.
This is an action in assumpsit brought to recover back money paid by the plaintiff to the township treasurer for taxes' claimed to have been illegally assessed against plaintiff for the year 1879. The declaration was upon the common counts, with a bill of particulars specify ing that the action was brought to recover $66.72, and interest at seven per cent, from January 1, 1880, received of plaintiff, claimed to be taxes assessed and collected of plaintiff for the year 1879. The defendant pleaded the general issue. The cause was tried before the court without a jury, who made a special finding of facts and law as follows, viz.:
“ This cause having been tried April 12, 1884, without a jury, and counsel having asked that the facts be found in writing by the court, I hereby find them to be as follows:
First. Plaintiff is a resident and tax-payer in the township of'Watertown, Clinton county, Michigan, having real estate to be assessed and taxed therein, and also personal estate to be assessed in said township.
Second. The supervisor of the township attempted to levy a tax upon his (plaintiff’s) real estate and personal property in said township for the year 1879 to the amount of fifty-nine dollars and ninety-six cents.
Third. The plaintiff refused to pay the tax to the township treasurer on the ground that no assessment or levy of tax had been made as required by the statute.
Fourth. The township treasurer, after the refusal to pay the tax, seized, by virtue of a tax-roll and warrant for said year, the property of the plaintiff and sold it to satisfy the tax, taking one yoke of oxen and selling them January 27, 1880, for enough to pay the taxes and expenses. The amount of the tax, fifty-nine dollars and ninety-six cents, was received by the township treasurer of said township as the proceeds of the sale after payment of expenses.
Fifth. The assessment roll for said township for the year 1879 had annexed thereto a certificate in the following words:
‘ Supervisor’s Oeeioe, May 20th, 1879.
I do hereby certify that I have set down in the above assessment roll all the real estate in the township of Watertown to be taxed according to my best information, and that I have estimated the same at what I believe to be the true cash value thereof; that the said assessment roll contains a true statement of the aggregate valuation of the taxable personal estate of each and every person named in said roll and that I have estimated the same at the true cash value as aforesaid according to my best information and belief.
George W. Kinney,
Supervisor and Assessor of the Township of Watertown.’
Sixth. The words ' and not at the price it would sell for at a forced or auction sale’ are not in the certificate to the said assessment roll' for 1879.
The different kinds of taxes and amounts making up the said fifty-nine dollars and ninety-six cents were as follows:
State tax County tax Township tax Highway tax School tax & 7 85 9 31 10 58 2 70 29 52
Making a total $59 96
Eighth. Of- this fifty-nine dollars and ninety-six cents the sum of sixteen dollars and ten cents was upon personal property.
From the foregoing facts I conclude that there was not a valid assessment of plaintiff’s r.eal estate or personal property for the year 1879 in said township, and that collection by the township treasurer of the plaintiff by the sale of his property, of the fifty-nine dollars and ninety-six cents was unauthorized and illegal, and that the plaintiff is entitled to recover the said fifty-nine dollars and ninety-six cents with interest thereon at seven per cent, from January 27, 1880, the date of said sale, which interest is seventeen dollars and sixty-one cents, making a total of seventy-seven dollars and fifty-seven cents.
Let judgment be entered for plaintiff and against defendant for seventy-seven dollars and fiftyrseven cents with costs to be taxed.
Yjgrnon H. Smith, Circuit Judge.”
The errors assigned are:
First. That the circuit judge erred in his decision that the plaintiff’s declaration and bill of particulars set forth a cause of action.
Second. That the circuit judge erred in allowing the plaintiff to introduce any testimony on the trial of said cause.
Third. That the judgment is not supported by the finding of facts.
Assumpsit is a proper form of action to recover back money paid for taxes illegally assessed and collected where-such moneys have gone into the township treasury. The officer who collected the tax being the treasurer of the town ship, no further proof is required than to show that he received the money in his official capacity, in order to fix the liability of the township to refund in case such tax is shown to have been illegal. Grand Rapids v. Blakely 40 Mich. 367; Joyner v. Third School Dist. in Egremont 3 Cush. 567; Look v. Industry 51 Me. 375. The tax in question was clearly illegal. This has been settled by the previous decisions of this Court, which so fully cover the point as to render further discussion unnecessary. Clark v. Crane 5 Mich. 151; Hogelskamp v. Weeks 37 Mich. 426; Silsbee v. Stockle 44 Mich. 561; Warren v. Grand Haven 30 Mich. 24; Grand Rapids v. Blakely 40 Mich. 367; Grand Rapids v. Leonard 40 Mich. 370; Gilchrist v. Manning 54 Mich. 210.
The judgment is affirmed.
The other Justices concurred. | [
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Cooley, O. J.
Some time in the year 1872 Warren A.. Sherwood, who had previously been a citizen of Michigan,, went to St. Louis, Mo., where he engaged in business. He was a bachelor, and took board at a hotel, and on March 27, 1876, died at the hotel intestate. He left a number of heirs at law, one of whom resided in New York, one in. Minnesota, and all the others in Michigan. He left some land in Michigan and some debts, and he was owner at the time of his death of demands to the amount of upwards of $50,000 which were secured by mortgages on lands in Michigan. Among the mortgages was one given to secure a note made October 8, 1871, by William and Mary Lusk, for $1125 and interest, payable at St. Louis, Mo., or at such other place as Sherwood, to whom it was given, should elect, in five years from date.
On the death of Sherwood Matrom D. Lewis claiming to act as public administrator for the city and county of St. Louis, took immediate possession of his personal assets, and claimed a right to administer upon them. The relatives of Sherwood were not present at the time, but the residence of those in Michigan was known, and Lewis immediately communicated with them by telegraph, and sent the body to -them in compliance with their request. The relatives at once proceeded to have letters of administration taken out in Michigan, and Albert G. Russell, a brother-in-law of the deceased, was appointed administrator by the probate court for the county of Ionia on May 29, 1876, and duly qualified as such. After his appointment and qualification Russell called upon Lewis for the property belonging to the estate, but Lewis refused to surrender it, and persisted in his claim of the right to administer himself. In June, 1878, Lewis made public sale of the securities belong ing to tlie estate, and they were sold for -the most part for merely nominal sums. The Lusk note and mortgage, which were perfectly good securities, sold better than most of the others, and were bid off by one Flanagan for eighty dollars. The purchasers were notified before sale was made that the right of Lewis to sell was disputed, and that Kussell as administrator claimed the securities. Flanagan subsequently gave an assignment of the mortgage to one Barr, and Barr executed a discharge of it on receiving six hundred dollars or about one-half the amount due.« The defendant McMullen has since become purchaser of the land, and claims to hold and own it discharged of the mortgage. Kussell, the Michigan administrator, continued to act as such until September, 1878, when he died, and complainant was appointed and qualified as his successor. The present suit was then instituted, the purpose of which is to foreclose the Lusk mortgage. The defendants rely upon the proceedings by Lewis, the sale to Flanagan, and the subsequent assignment to and discharge by Barr. Decree was rendered in the court below in favor of complainant, and defendants appeal. •
It is disputed by complainant that Sherwood at the time of his decease was domiciled in St. Louis, but on the evidence we are inclined to think that city must be deemed to have been his domicile, and we shall so assume throughout this opinion. The questions of importance in the case will then be: Fwst, whether Lewis, as public administrator, had authority of law to take upon himself administration of Sherwood’s estate; and if so, then second, whether under the circumstances he had power as such administrator to sell and assign the mortgage in suit. If either of these questions is answered in the negative, it will be fatal to the defense.
The office of public administrator is statutory in Missouri, and the statute contemplates action by him in the settlement of estates only in a few exceptional cases which are particularly specified. The statutory provision which was in force at the time of -Sherwood’s death was the following:
“ It shall be the duty of the public administrator to take into his charge and custody the estates of all deceased persons in his county in the following instances:
1. "When a stranger dies intestate in the county, without relatives, or dies leaving a will and the executor named is absent or fails to qualify.
2. When persons die intestate without any known heirs.
3. When persons unknown die or are found .dead in the county.
4. When money, property, papers or other estate are left in a situation exposed to loss or damage, and no other person administers on the same.
5. When any estate of any person who dies intestate therein, or elsewhere, is left'in the county, liable to be injured, wasted or lost, when said intestate does not leave a known husband, widow or heir in this state.
6. When from any good cause said court shall order him to take possession of any estate to prevent its being injured, wasted, purloined or lost.” Wagner’s Stat. 1868, (ed. 1872) p. 122, § 8.
Unless the case was such as to fall within one of these six classes, it is not pretended that Lewis had any right to inter-meddle as .public administrator.
That Sherwood was not a stranger in St. Louis is conceded. He was well known there, and his name appeared in the directory as a business man of the city. His case did not therefore come .within the first subdivision of the section above recited, or within the third.
Sherwood did not die without known heirs. His heirs were well known, and Lewis himself communicated with them immediately. The case was therefore not within the second subdivision above recited.
If Lewis was justified in interfering at all, it must have been under the fourth or fifth subdivisions of the section, and for the protection of the estate. But the fourth could not justify him because the relatives of Sherwood immediately offered to take charge of the estate, and would have done so but for his interference. They did in fact as soon as was practicable take out letters of administration in Michigan where they were particularly needed, and would no doubt have done the same in Missouri had it become necessary. If they had failed to do so, any creditor in Missouri whose claim was not provided for might have taken out letters on his own behalf. No showing is made in the case that for any purpose of protecting the estate it was necessary or important that the public administrator should interfere, and his seizure of the effects and papers of the . deceased and the subsequent sale of the assets for a trifling percentage of their value constituted a wholly unnecessary and reckless intermeddling with private rights which the statute of Missouri never intended to authorize, and which the enlightened tribunals of that state must have visited with condemnation had their action been invoked to authorize or sanction what was done. If the public administrator could lawfully administer in defiance of the wishes of the family, he must have had the right in any case in which he could reach the bed of death and seize the personal effects before the family could anticipate him.
We keep in mind the fact, in what we say in this connection, that Lewis was acting on his own motion and without the previous authorization of any court. Had the proper probate court of Missouri, on being applied to, granted letters of administration on the estate of a person who had died when domiciled within the jurisdiction, a collateral attack upon its proceedings could not be countenanced. But this public officer acted without letters and was his own judge of the right to do so. Those who claim under an administration which is not judicially ordered are entitled to no presumptions in support of its authority. Illinois Cent. R. R. Co. v. Cragin 71 Ill. 177. In this case the failure to show jurisdiction is complete. There could not well be a more unnecessary, wanton and in jurious interference with the rights of others than this record discloses. But we do not place our judgment in this case exclusively upon this ground, because we think if Lewis as public administrator had authority to act, he had none under the facts disclosed to make sale of the mortgage.
We concede to the fullest extent the general principle relied upon by defendants, that personal property, in contem plation of law accompanies the person of the owner, and that its disposition on his death is .to be determined by the laws of his domicile. But while the rule of distribution is thus determined, the steps to reach it may be otherwise prescribed ; and when the property is in one jurisdiction and the domicile in another, the necessity for distinct proceedings in administration may be imperative. The proceedings when taken in this class of cases are governed and regulated by certain rules of inter-state comity, which are thus stated by the court of appeals of New York: “It is an established doctrine, hot only of international law but of the municipal law of this country, that personal property has no locality. It is subject to the law which governs the person of the owner, as well in respect to the disposition of it by act inter vivos, as to its transmission by last will and testament, and by succession upon the owner dying intestate. The principle, no doubt, has its foundation in international comity; but it is equally obligatory, as a rule of decision in the courts, as a legal rule of purely domestic origin. It does not belong to the judges to recognize or to deny the rights which individuals may claim under it, at their pleasure or caprice; but, it having obtained the force of law by user and acquiescence, it belongs only to the political government of the state to change it whenever a change becomes desirable. But the right which an individual may claim to personal property in one country, under title from a person domiciled in another, can only be asserted by the legal instrumentalities which the institutions of the country where the claim is made have provided. The foreign law furnishes the rule of decision as to the validity of the title to the thing claimed; but in respect to the legal assertion'of that title it has no extra territorial force. As a result of this doctrine it is now generally held everywhere, and it is well settled in this state, that an executor or administrator appointed in another state has not, as such, any authority beyond the sovereignty by virtue of whose laws he was appointed.” Denio, J. in Parsons v. Lyman 20 N. Y. 103, 112; citing Morrell v. Dickey 1 Johns. Ch. 153; Vroom v. Van Horne 10 Paige 549.
The same general doctrine is also concisely stated in a case in the Federal Supreme Court: “ Every grant of administration is strictly confined in its authority and operation to the limits of the territory of the government which grants it; and does not, de jure, extend to other countries. It cannot confer, as a matter of right, any authority to collect assets of the deceased in any other state; and whatever operation is allowed to it beyond the original territory ef the grant is a mere matter of comity, which every nation is at liberty to yield or to with, hold, according to its own policy and pleasure, with reference to its own institutions and the interests of its own citizens.” Story, J. in Vaughan v. Northup 15 Pet. 1, 5.
Lewis, then, if legally administrator in Missouri, had no •official authority in this State except such as by comity would be recognized; and the rules of comity might be determined cither by usage, of which the judicial decisions would be evidence, or by statute. Some of these rules are general and •are well settled. There are cases, for example, where it has been held that a foreign administrator has a right to collect and take possession of personal property, and remove it for the purposes of administration: Doolittle v. Lewis 7 Johns. Ch. 45; Brown v. Brown 1 Barb. Ch. 189; Vroom v. Van Horne 10 Paige 549: s. c. 42 Am. Dec. 94; Riley v. Riley 3 Day 74: s. c. 3 Am. Dec. 262; Smith v. Guild 34 Me. 443; Rand v. Hubbard 4 Metc. 252; Marcy v. Marcy 32 Conn. 308; and where there are no domestic creditors or other claimants, there will be no occasion to question such cases. There may also be cases of payments to a foreign administrator which may be recognized, there being no conflicting administration. Williams v. Storrs 6 Johns. Ch. 353; Trecothick v. Austin 4 Mas. 16, 33; Wilkins v. Ellett 9 Wall. 740; Vroom v. Van Horne supra; Citizens’ Bank v. Sharp 53 Md. 521. And where an administrator, in the forum of his appointment, has assigned demands bona notabilia there, it may be correct to hold that his assignee may sue thereon here in his own name, as was held in Harper v. Butler 2 Pet. 239, and Peterson v. Chemical Bank 32 N. Y. 21, and cases there cited; as to which see Knapp v. Lee 42 Mich. 41.
But this case involves the validity of the assignment of a debt secured by a real-estate mortgage on lands in this State. It was decided in Cutter v. Davenport 1 Pick. 81, that the foreign administrator had no authority to make such an assignment ; and this is followed in the recent case of Dial v. Gary 14 S. C. 573 : s. c. 37 Am. Rep. 737. Whether these decisions would be followed in this State if there were no-statute bearing upon the question, we do not care to inquire, because we think if the power to assign would exist independent of statirte it does not exist under the statutes now in force.
The statutes provide for recognizing the authority of a foreign administrator when it becomes necessary to make-sale of lands in this State, and prescribes the steps to be taken for that purpose. How. Stat. §§ 6057-6061. If administration js needed in this State for other purposes, new letters must be taken out; and an administration ancillary to one in another state would proceed like any other up to the time of accounting. And for the purpose of selling lands, it seems very clear that a public administrator could not be recognized in this State at all; for. the statute contemplates the case of an administrator “appointed ” in some other state or country, who shall produce and file in the proper court'“ an authenticated copy of his appointment.” Section 6057. A public administrator having no appointment for the special case would not be within the terms of this statute.
But we may pass by without further remark any question of what Lewis might or might not have done had he undertaken to proceed in this State under its statutes. What he did in fact was to proceed without regard to the statutes and in 'contempt of authority which was being taken, in regular form at least, under them. And unless under such circumstances he had authority to sell and dispose of the mortgage in suit, it must have remained the property of the estate.
Now a mortgage of lands is in this State a conveyance within the meaning of the recording laws, and goes upon record as such. How. Stat. § 5689. It becomes necessary to record it, therefore, to prevent its being cut off by subse quent conveyances. Id. § 5683. It is not allowed to be foreclosed under the power of sale until the mortgage and any assignment thereof are duly recorded. Id. § 8498.- And no one could make a valid assignment of a mortgage which would be sufficient for.the purposes either of foreclosure or of record, unless his own authority was of record so that the title made under a foreclosure would appear by the record to be complete. It follows that a foreign administrator could make no assignment of a mortgage in this State ; and this is so well understood that it is not uncommon in this State to have ancillary letters taken out here for no other purpose than to assign mortgage securities. The case of Doolittle v. Lewis 7 Johns. Ch. 45, in so far as it recognizes the right of a foreign administrator to foreclose under the power of sale, would be inapplicable in this State by reason of- the statutory provisions referred to.
But a foreign administrator would be equally powerless to discharge a mortgage. The discharge is for the purpose of relieving the record of the apparent mortgage lien, and this would not be accomplished unless the authority of the party assuming to discharge was itself of record. The statute imposes a penalty on the mortgagee, his personal representative or assignee who, when payment of the mortgage debt has been made, neglects or refuses, after demand, to discharge the mortgage. How. Stat. § 5704. But a foreign administrator who would be powerless to give a legal discharge could not be within the provisions of this section. Lewis therefore was assuming to sell a mortgage which he was without authority either to enforce or discharge.
But a perfectly conclusive objection to the validity of the sale of the mortgage made by Lewis is seen in the fact that there was at the very time an administration in this State. There is no ground for even a suggestion that that administration was invalid. The intestate left both property and debts in this State, and the jurisdiction of the court which made the Michigan appointment was un(Questionable. Administration in Michigan indeed, if the estate was to be preserved from such ruthless destruction as Lewis undertook to visit it with, was a necessity; and if he had had any proper sense of his office and a due regard to the rights of parties concerned, he would have recognized the Michigan administration, and have sought to act in harmony with it. Conflict was for any proper legal purpose wholly unnecessary.
No case has been called to our attention in which it has been held that after letters issued in one state or country a foreign administrator can be recognized there even for the purposes of a voluntary payment; and the cases like Vaughn v. Barret 5 Vt. 333; Young v. O'Neal 3 Sneed 55 and Ferguson v. Morris 67 Ala. 389, which deny the validity of such a payment generally, if questionable when no domestic appointment exists, are perfectly sound and reasonable if there is at the time a valid administration in the state. See Noonan v. Bradley 9 Wall. 394, 405. It is the duty of citizens of the state to recognize and defer to the judicial determination of its own tribunals, as much when they concern matters of administration as in other cases : Henderson v. Clarke 4 Litt. 277; Glenn v. Smith 2 Gill. & J. 493: 20 Am. Dec. 452; and this is especially true in a case like the present where nothing existed to bring in question the judicial determination of the Michigan court, except the bare assertion of his own authority by the foreign official. By the law of this State the title to this demand for all purposes of administration was in the Michigan administrator, who might put it in suit when due or assign it of record or discharge it of record. He was therefore the only person who could be safely dealt with in respect to it. The claim by the foreign official was inconsistent with these undoubted rights and was negatived by them.
The decree must be affirmed.
Campbell, J., concurred.
Shekwood, J". On the 8th day of October defendants Mary E. Lusk and William Lusk made their note to Warren A. Sherwood for $1125, paj'able on or before flve years from date, at St. Louis, Mo., with interest at ten per cent. To secure the payment of this note the said Mary E. Lusk and ■defendant Bernard McMullen and Elizabeth A. McMullen, Jiis wife, and Julius A. Lusk executed a mortgage on 160 -acres of land lying in Gratiot county in this State.
Sherwood was an unmarried man, and lived and did business at St. Louis, Missouri, from about 1872 to the time of his death, which occurred there on March 27, 1876. He left no '.heirs in the state of Missouri and no will. Among the papers-he had with him in St. Louis at the time of his death was the note in this suit. Sherwood died at a hotel, and the next day-after his death, M. D. Lewis, the public administrator of the county of St. Louis, took possession of the personal effects of the deceased in Missouri, assumed control over them, and as such public administrator proceeded to administer the estate under the laws of Missouri, and such action was taken by him thereafter, under the direction of the probate court of St. Louis, that on the 25th day of June, 1878, he sold at public auction in St. Louis the note and mortgage in this suit, and ■transferred the same, as administrator, with other effects of the deceased, to one Erancis G. Flanagan, who paid for the mortgage on such sale eighty dollars.
The testimony shows that at the time of this sale A. G. Russell, administrator of the estate of said deceased in the •State of Michigan, was present, and caused notice to be given .that most of the Michigan debts due the estate had been paid, •and such as had not been should be paid to him. On the .22d of November, 1878, Flanagan assigned the note and mortgage to Harriet W. Barr (the consideration being about $300), who, on the léth day of December following, by her attorney in fact, discharged the mortgage of record, and ■delivered the note and discharge to defendant Bernard McMullen. Defendants Frue, Mary C. Lusk, Doane, and Moss ■became interested, either as purchasers or incumbrancers, after the discharge of the mortgage. On the 29th day of May, 1876, Albert G. Russell, brother-in-law of deceased, was appointed by the probate court of Ionia county administrator of Sherwood’s estate in Michigan. Russell died September 26, 1878, and William Reynolds, the complainant in this case, was on December 10, 1878, appointed administrator in his stead, who, after making demand of Bernard McMullen for the note and mortgage on January 22, 1882, filed the bill in this case to remove and set aside the discharge of record and foreclose the mortgage.
The cause was heard by the circuit judge upon pleadings and proofs, and a decree made in accordance with the prayer of the bill. Defendants Doane, Frue and Moss were made-parties to the bill of complaint under the general averment, against subsequent purchasers and incumbrancers, and they bring this appeal. The complainant’s counsel urges that the decree given at the circuit should be sustained for the following reasons:
“ 1st. Sherwood, at his decease, was a resident of Michigan; the debtor resided here; the land is here; hence the mortgage and note must be controlled by the Michigan administrator, and the Missouri administrator could confer no title upon the purchaser from him. ■ <
2d. Sherwood’s estate was not such an estate as, under the laws of Missouri, the public administrator could administer j hence he could confer no title upon the purchaser from him.
3d. Even if this was such an estate as Lewis, being administrator, could administer, the evidence shows the proceedings to be so irregular that no title can be based or founded upon them ; and hence the pretended payment was to one having no right to receive it, and the discharge is void.
4th, The proceedings by the administrator in Missouri are-not under the common law, but purely statutory; and in order for any one to derive title through them, it must affirmatively appear that the statute has been complied with. There can be no presumption in favor of their validity.
5th. Even if Warren A. Sherwood had his domicile in Missouri at the time of his death, the debt was at his death an asset to be administered in Michigan, and the Missouri administrator had no right to administer it, or attempt in anywise to control it, and any payment made to the assignee of the Missouri administrator, or discharge made by such assignee, is no bar to a recovery in this case.
6th. The gross inadequacy of the price paid for this note and mortgage at the sale, and the gross inadequacy of the amount received for the Michigan assets, raises a presumption of fraud; and it not being explained, a court of equity will not sustain the sale, but must hold that no title passed to the purchaser.”
By the law of Missouri the public administrator has the right to administer upon estates in the following cases, viz.:
(1) When a stranger dies intestate in the county without relations or confidential friends, or dies leaving a will, and the executor named is absent or fails to qualify; (2) when persons die intestate without any known heirs, and administration is not undertaken by some other responsible person ; (3) when persons unknown die or are found dead in the •county; (4) when money, property, papers or other estate are left in a situation exposed to loss or damage, and no other person administers on the same; (5) when any estate of any person who has died elsewhere is left in the county, liable to be injured, wasted or lost, or is not in the lawful custody of «orne responsible person; (6) when from any- other good •cause said court shall order him to take possession of any •estate to prevent its being injured, wasted, purloined or lost.” Bee Statutes of Missouri, p. 516, sec. 8.
It is presumed a party’s domicile is in the state or county where he dies, until the contrary appears. In re Olson 63 Ia. 145.
I have examined all the testimony upon the first point •carefully, and am satisfied upon- this record that Sherwood, at the time of his death, was a resident of St. Louis, Missouri, and had his domicile there; and further, that the personal ■estate sought to be administered there was such as might be properly administered in that state by the public administrator, unless it was the notes and mortgages of the deceased ■owing and secured by parties residing outside of Missouri. It appears from the record and the statutes of Missouri, which, so far as they are applicable to the case, constitute a part of the record (by stipulation of the parties), that the probate ■court of St. Louis had jurisdiction of the effects of deceased persons who die within that state, and who are inhabitants thereof. It also appears that it exercised that jurisdiction in the case of the estate of Warren A. Sherwood, and made •orders and decrees therein, and that the public administrator acted under the orders and decrees thus made, and in so-■doing made sale of the note and mortgage in question'.
It is claimed, however, that these proceedings were so-irregular that no title to the property sold could be derived through them, even though the court had jurisdiction to-direct a sale of this claim. This suit is a collateral attack upon those proceedings, and in such case, although the proceedings may be so irregular as to be voidable by the law of Missouri, they are not void. The orders and judgments of the probate court in such case are valid until reversed, and. are not subject to be reviewed collaterally. Jackson v. Robinson 4 Wend. 436; Headlee v. Cloud 51 Mo. 301. When there is a want of jurisdiction, or fraud has been committed in its exercise, and a party’s interests are injured thereby, he-may always show such facts in seeking his remedy or in making his defense against proceedings defective for either of those reasons.
The real question in the case, upon the facts appearing-upon this record, is this : Were the debts, owing by persons residing in this State to the deceased, assets to be administered by the court in Missouri, or by the court in Michigan? If such indebtedness constituted not only effects of the deceased, but assets proper to be administered in Missouri, then I do-not think the decree made by the circuit judge was right, and it ought to be reversed; but on the contrary, if they were assets to be administered in Michigan, then the decree-at the circuit ought not to be disturbed. There is no question but that the personal estate of the deceased must be distributed according to the law of his domicile at the time of his death; but this does not dispose of the question presented for our consideration.
It appears very clearly that at the time of Sherwood’s death he had quite large interests in Michigan. In fact, if the proceedings in Missouri are to be taken as any indication of the amount of his estate here, it would appear that the great bulk of his property was here. It further appears beyond question, I think, that the deceased at the time of his= death was owing over $2500 to parties in this State; that his- relatives and friends all lived in Michigan and New York ; and that it was his express desire that when he died his remains might be removed to and buried here. It appears also that deceased had the note with him in Missouri when he died, but not the mortgage, and that when the note was sold there was an administrator duly appointed, and acting as such, and taking charge of the estate and effects in Michigan, where the note was given, and where the maker resided; that the note and mortgage, when sold in Missouri by the public administrator, were not yet due, and that he knew of the administration in Michigan at the time he.made the sale and executed the transfer thereof.
The common law is in force and must prevail in this State, except so far as it is repugnant to or conflicts with our Constitution and statutes, and questions of right to property and remedies applicable thereto, contained in 'the common law, and not clearly excepted from it, must be determined by it, modified only by such circumstances as make it inapplicable to our local affairs. Const. Sched. 1: How. Stat. p. 72 ; Stout v. Keyes 2 Doug. (Mich.) 184; Lorman v. Benson 8 Mich. 18. I know of no statute changing the common law upon the subject in our State, nor of any circumstances in our local affairs rendering it necessary. By the common law, debts due by specialty are esteemed to be the goods of the deceased where the securities are at the time of his death ; but debts due by simple contract follow the person of the debtor, and are regarded as the goods of the deceased where the debtor resides at the time of the creditor’s death. 3 Bac. Abr. (Wils. ed.) 37-8; Toller’s Law of Executors, 55; 1 Wms. Saund. 274, note 3; Speed v. Kelly 2 Am. Prob. Rep. 553; Wyman v. United States 29 Alb. Law J. 194; Slocum v. Sanford 2 Conn. 534.
I am unable to see any good reason for the distinction made between debts by specialty and by simple contract, or why they should not all be deemed assets to be administered at the same place. The proceeds after payment of debts have all to be distributed’ according to the law, at the domicile of the deceased; but such is the law as we find it, and a change is for the Legislature, and cannot properly be made by this Court. There can be no question but that the note was a simple contract debt and subject to the law applicable to that kind of claims. Slocum v. Sanford supra; 2 Cooley’s Bl. Com. 510.
This Court has already decided that the debts in this State due to a person resident in another state, dying there, can only be enforced by an executor or administrator duly appointed here (Vickery v. Beir 16 Mich. 50; Thayer v. Lane Walk. Ch. 200); and such is the rule at common law. Story’s Conñ. Laws §§ 513, 514 and cases cited. The assignee of these claims, due from the debtors in this State, stands in no other or better position than did the public administrator who made the assignment to him, and could confer no rights which he did not possess (Chapman v. Fish 6 Hill 554; Thompson v. Wilson 2 N. H. 291), and payment to him is no defense to this suit. Disosway v. Carroll 4 Lans. 191; Vaughn v. Barret 5 Vt. 333; Pond v. Makepeace 2 Met. 114; Riley v. Riley 3 Day 74; Glenn v. Smith 2 Gill & J. 493; McLean v. Meek 18 How. 16. The proper place for administering such assets must necessarily be where alone payment can be enforced against the debtor. I can come to no other conclusion upon the facts appearing upon this record.
It necessarily follows that the note and mortgage were assets to be administered in this State, and that the public administrator in St. Louis acquired no right to sell or dispose of the same in that state to any person, or any right to the possession or control of the note and mortgage, further than to safely keep them and deliver the same to the administrator here when required, until after the estate in Michigan was settled and the debts there were paid. 2 Kent’s Com. 433, 434; 2 Bl. Com. 509; Bac. Abr. “Executor” E; Byron v. Byron Cro. Eliz. 472; Hilliard v. Cox Ld. Raym. 562: Salk. 37; Whart. Confl. Laws § 604.
There is no doubt but that an executor or administrator may lawfully sell the personal estate of the deceased, unless prohibited, at public or private sale without the order of the judge of probate, within the jurisdiction of the court where such property is assets in his hands for administration. lie may do so even at a discount, though the property sold be notes and mortgages (Burt v. Ricker 6 Allen 77; 3 Redf. Wills 226, 229, 236); and the purchaser will take a good title thereto, provided the property was assets within the control and jurisdiction of the court where administration was granted. He cannot make such sale, however, when he has not the right to enforce collection. Yeomans v. Bradshaw Carth. 373; Tourton v. Flower 3 P. Wms. 369; Isham v. Gibbons 1 Bradf. Sur. 69; Story on Confl. Laws §§ 512, 513, 514, 515a, 522, 523; McCarty v. Hall 13 Mo. 480; Chapman v. Fish supra; Goodwin v. Jones 3 Mass. 514; Riley v. Riley supra; Stearns v. Burnham 5 Greenl. 261; Harrison v. Sterry 5 Cranch 289; Dawes v. Head 3 Pick. 138; Harvey v. Richards 1 Mas. 423; Glenn v. Smith supra; Vaughn v. Barret supra; Lee v. Havens Brayt. 93; Thompson v. Wilson 2 N. H. 291; Judy v. Kelley 11 Ill. 211; Willard v. Hammond 21 N. H. 382; Smith v. Guild 34 Me. 443; Langdon v. Potter 11 Mass. 313; Rorer Interstate Law 248; Speed v. Kelly 59 Miss. 47; Owen v. Miller 10 Ohio St. 143; Abbott v. Coburn 28 Vt. 663; Vaughan v. Korthup 15 Pet. 1; Noonan v. Bradley 9 Wall. 394; Willitts v. Waite 25 N. Y. 577; Valle v. Fleming 19 Mo. 454.
I am awáre there is a conflict of authorities upon this subject, and several very able jurists take-a different view from that above expressed. Petersen v. Chemical Bank 32 N. Y. 40; Grace v. Hannah 6 Jones N. C. L. 94; Rand v. Hubbard 4 Met. 252. The weight of authority, however, I think, is clearly in favor of the position herein taken.
I think the decree of the circuit judge was right, and should be affirmed.
CnAMPLiN, J. did not sit in this case. | [
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Sherwood, J.
The plaintiffs, who are millers residing at Reed Oity, brought their action of assumpsit against the-defendants, who are engaged in the lumber business and reside at Grand Rapids, to recover for a quantity of flour and mill-feed, amounting to the sum of $482.92. James H. Carey had a contract with defendants whereby he was to dasawing and make shingles for them at Oareyville, in Lake-county, where the defendants had a quantity of pine timber. ^The flour and feed was purchased by Carey and used by him while doing the sawing for defendants, and when he made the purchase he told the plaintiffs that the goods were for the defendants; that he was at work for them, and that they had ordered him to get the goods for them. The plaintiffs seek to hold the defendants liable under the authority, which was verbal, thus claimed to have been given Carey to make the purchase, and a subsequent promise claimed to have been made by Hughart to pay for the goods, which however is denied by the latter. The defendants claim that by the terms of their agreement with Carey they were under no obligation to supply the goods or to make advances to Carey, and that they never authorized him to make the purchase on their account.
The questions at the circuit were mostly those of fact, and were submitted to the jury, who, under the rulings and charge of the court, rendered their verdict for the plaintiffs for the amount claimed. The defendants bring error, and the rulings and charge of the court are now before us for review.
At the close of the trial the defendants’ counsel asked the court to direct a verdict for the defendants. The request was refused.
We do not think the record presents a case for the instruction asked. Carey swears, in substance, that the defendants gave him authority to make the purchase on their credit, and the credibility of his testimony was for the jury. If he stated truly the direction.sworn to by him as coming from defendant Hughart, the jury would be warranted in finding that the defendants authorized the purchase. The promise would be by defendants and not by Carey, and therefore not within the Statute of Frauds. It would be a debt contracted upon their own promise, and not a liability for the debt of another.
It is alleged as error that the court refused to give defendants’ second, eighth and ninth requests to charge, which requests were as follows :
Second. If the jury finds from the evidence that the goods were charged, shipped and billed to Carey; that no bill was ever sent to the defendants; that the plaintiffs took an order on the defendants for the amount of the bill, and afterwards presented this order and requested its acceptance and payment, and still retain this order — such evidence is inconsistent with the claim now made by the plaintiffs, and they cannot recover in this action.
Eighth. Under the undisputed facts in this case, it appears that Carey is still liable' to the plaintiffs for the amount of the goods in question, and the plaintiffs cannot recover in this action.
Ninth. It is not sufficient for the jury to find that Ilughart authorized Carey to buy in their name and upon their credit. They must also find from the evidence that the credit was given to Osterhoutand Hughart and not to James li. Carey. And in arriving at a conclusion on this point they should consider all the acts and conduct of the plaintiffs: such as the entry in their books, the shipping of the goods, the taking of the order, their repeated • efforts to collect it, and their present possession of it.
The second and eighth requests, we think, were properly refused. The facts stated in the second request exclude the idea that the inconsistency claimed for them is susceptible of explanation, but such is not the law. The eighth request seeks to have the court state what the undisputed facts show. What they show was a question for the jury, and in this case cannot be considered disconnected with the other testimony in the ease bearing on the same point.
■ The circuit judge in his charge stated to the jury that the first proposition for the plaintiffs to establish was that Carey was authorized by defendants to purchase the goods for them; and second, that plaintiffs, when Carey made the purchase, relied entirely upon defendants, and not upon Carey, for the pay; and if they found in the affirmative of these propositions the plaintiffs would be entitled to recover ; if not, the defendants must prevail. He further told them that, in solving these propositions, they must take into consideration all the testimony in the case, including the actions of the parties. We think these charges sufficiently cover the substance of the defendants’ ninth request.
Wo have carefully examined tbe remainder of the charge excepted to by tbe defendants’ counsel and do not find any error therein. The facts were for the jury, and whether the court below or this Court would or would not have come to the conclusion reached upon the testimony is not for our consideration. We find no error in the record committed by the court, and here our duty ends.
The judgment must be affirmed.
The other Justices concurred. | [
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Campbell, J.
Plaintiffs, who are wholesale tobacconists doing business in Toledo, sued defendant, who is a retail dealer in Detroit, for the price of two lots of cigars, one being liquidated by note, and the other in open account. The defense was that the second lot was never purchased, and the first was paid for to an agent through whom the cigars had been ordered. Judgment was given for defendant.
So far as the second lot is concerned, the testimony does not show any ordering by defendant, and it shows that Hamilton, the agent, got them back from defendant, who had, as he claims, done no more than receive them from the express company through which they had been consigned to him, at Hamilton’s request. It is difficult to see what there was to go to the jury on this item. But the court, nevertheless, left the facts to the jury, and they found in his favor, as we think they could not avoid doing.
The only question open to any controversy arose out of defendant’s dealings with Hamilton, plaintiffs’ agent, who became a defaulter.
The defendant was called on by Hamilton in September, 1882, and gave him an order for five or six thousand ■cigars, which Hamilton accordingly ordered from plaintiffs, who never had any personal dealings with defendant. Hamilton was plaintiffs’ agent for making sales, and appears to have been working on commission. Defendant gave his note for the cigars received, dated October 2, 1882, for $110, payable in four months to plaintiffs’ order at the Detroit Savings Bank. This note was protested, and taken up at the bank which discounted it, by plaintiffs. The consideration is not disputed, but defendant on November 13, 1882, was called on by Hamilton, and asked to advance upon it, and paid $100 at Hamilton’s instance on a representation that he was collecting for the house, and needed it to make up $900 which he desired to deposit in bank. He gave a receipt in full.
Plaintiffs claimed that Hamilton had no authority to make ■collections for them. Defendant gave evidence of plaintiff Haughton’s personal statements and admissions, which if true, made out both authority and ratification. Haughton’s own. testimony showed that he made admissions which at least tended to corroborate the defense, but he sought to do away Avith their force by the suggestion of surprise and excitement. There are several assignments of error, but they do-not present many questions.
Such as relate to plaintiff’s cross-examination do not seem to us to require attention. It can hardly be claimed that cross-examination on any part of the merits involving a plaintiff’s own acts and statements should be rejected on the ground that defendant should make him his own witness.
If such cases can arise, they cannot do so where the questions all relate to the single subject in controversy upon which plaintiffs had been sworn, and which however separate may have been some of its circumstances, presented but one real issue of substance. The authority of Hamilton was the substantial question, and it was proper to inquire into circumstances bearing on it.
A similar principle applies to the various items of testimony concerning Haugliton’s statements and dealings with other persons as recognizing Hamilton’s authority. Such recognitions were evidence bearing on the fact, and the dealings, with Hamilton which led to the transactions of Haughton, and Avhich he is claimed to have ratified, are equally important. It would be difficult to prove agency if the acts of the agent accepted by the principal should be excluded.
We have found no evidence admitted as to-declarations of Hamilton which did not form part of transactions which he was assuming to conduct as agent. If he had authority they Avere therefore admissible as res gestae.
If the note sued on had become and remained the property of endorsees, and they had sued on it, the defense set up might have failed. But Haughton & Company could accept payment in advance, and by doing so would preclude themselves from disputing it thereafter, whatever others might do. Whether the note was transferred and bought back again, oral ways held at their risk, would not change their relations to-the maker, from whom they accepted payment on the footing of owners.
We have referred to all that seems to us material in the allegations of error.
The judgment must be affirmed.
The other Justices concurred. | [
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Champlin, J.
In 1880 Alonzo Eaton and Ellen Y. Eaton were married. At this time Mr. Eaton was in straitened circumstances, and Mrs. Eaton had in her hands something like $5000 which belonged to her daughter by a former marriage. At Mr. Eaton’s request she loaned him from time to time sums of money amounting in the aggregate to $600, and also paid a number of bills for household expenses and wearing apparel, the whole amounting at the time of the commencement of this suit, including the money loaned, to $3322.58. She took no written evidence from him of any agreement in reference to these loans and advances, but the next day after their marriage, or within ten days after the nuptials were celebrated, in the privacy of their chamber and with no one else present, he agreed and promised his wife that if she would make advancements of money to take care of the house and whatever money she should let him have, he would pay her back every dollar when he sold a certain homestead which he owned and which was encumbered by a mortgage. Mr. Eaton not having sold the homestead, and having repudiated any liability to his wife, she assigned her claims against her husband to the plaintiff, who has brought this suit. Mr. and Mrs. Eaton, at the time of the trial, were living together as husband and wife.
To prove his case the plaintiff introduced as a witness ' Mrs. Eaton, the wife of defendant. The defendant objected to her testifying. The plaintiff’s counsel proposed to prove by the witness the facts above narrated; and thereupon the counsel for defendant insisted upon his objection for the reason that the wife is not a competent witness to testify against her husband in an action brought in her own behalf, nor in an action where the subject-matter of the suit is brought by her assignee. The judge of the Superior Court of Detroit overruled the objection, and permitted the witness to testify fully as to what occurred bfetween the defendant and witness relative to the agreement as to advances and repayment, not made in the presence of other persons and while they were husband and wife. To this the defendant excepted, and it constitutes the main ground of error relied upon for a reversal of the judgment.
Whether this testimony was competent depends upon the construction to be given to How. Stat., § 7546, which reads as follows:
“A husband shall not be examined as a witness, for or against his wife, without her consent; nor a wife, for or against her husband, without his consent, except in cases where the husband or wife shall be a party to the record, in a suit, action, or proceeding where the title to the separate property of the husband or wife, so called or offered as a witness, or where the title to property derived from, through, or under the husband or wife so called or offered as a witness, shall be the subject-matter in controversy or litigation, in such suit, action, or proceeding, in opposition to the claim or interest of the other of said married persons, who is a party to the record in such suit, action or proceeding; and in all such cases, such husband or wife who makes such claim of title, or under or from whom such title is derived, shall be as competent to testify in relation to said separate property and the title thereto, without the consent of said husband or wife, who is a party to the record in such suit, action or proceeding, as though such marriage relation did not exist; nor shall either, during the marriage or afterwards, without the consent of both, be examined as to any communication made by one to the other, during the marriage; but in any action or proceeding instituted by. the husband or wife, in consequence of adultery, the husband and wife shall not be competent to testify.”
And this section of the statute must be construed in connection with § 6297, relative to the rights of married women, which reads as follows: “ Actions may be brought by and against a married woman in relation to her sole property, in the same manner as if she were unmarried.”
The first question that arises, in applying this statute to the facts of this case, is whether it comes within the exception. Is it a case where the title to the separate property of the wife is the subject-matter of controversy or litigation, in opposition to the claim or interest of the husband ? For the purpose of disposing of this question, I will treat the money loaned and advanced, as the separate property of the wife. The husband is a party to the record, and the plaintiff’s title is derived through the wife called as a witness in opposition to the claim or interest of the husband.
This is a controversy in assumpsit to recover damages for the non-performance of a contract made between the husband and wife with reference to her separate property. By this contract the relation of debtor and cx’editor was created, and this debt became and was'the separate property of the wife. She coxxld transfer it by assignment; she could dispose of it by gift, devise or sale as fully and completely as she could a like claim against a third person.
“ Title ”■ is defined by Bouvier as “ the lawful cause or ground of possessing that which is oux’s.” It is that which is the foundation of ownership of property real or personal. The title of the wife to this debt consists in thefacts which taken together created the contract relations of the parties thereto.
Now when the title to the separate property of either is in litigation between husband and wife, the statute l’emoves the common-law disability and permits either to testify to the facts which lie at the foundation of the ownership of the property as fully as if sxich maxvriage relation did not exist. The clause of the statute prohibiting either, during marriage or afterwards, without the consent of both, being examined as to any communication made by one to the other during the marriage, does not apply to cases of this kind. To hold that it did would nullify in a great measure the language which precedes it and make a limitation upon the exception where in my opinion none was intended. The communications inhibited do not relate to contracts entered into between the husband and wife in relation to the separate property of either, when the title to such separate property is in litigation and the parties to the record 'are within the excepted-cases mentioned in the statute. .
While I do not consider it necessary to indicate the nature of the communications between husband and wife about which neither is allowed to be examined, I may say generally that the statute aims to protect all those private confidences which the relation of husband and wife holds as sacred, the disclosure of which might introduce strife, malevolence and discord into the married life, and includes every communication between them other than such as involves the title to the separate property of either when it becomes necessary to resort to litigation to obtain, secure or protect the rights of either to such separate property.
No doubt society is interested in preserving the harmony of the marriage relations and anything which tends to disrupt those relations is to be discountenanced. The Constitution has secured to a married woman the right of acquisition, enjoyment and disposition of her separate properter, and the Legislature has given her the same standing in the courts with respect thereto as if she were unmarried; and there is no good reason why she should not have the means of protecting those rights as fully against her husband as against any other person. I think the Legislature has done so in the statute cited. So far as the destruction of harmony in the family circle is concerned, the injury is inflicted when the husband or wife fail to keep their agreements with each other respecting the separate property, and the strife and bickerings consequent thereon long precede the shock caused by permitting the party to' testify respecting the title to such property. There is no error in the record and
The judgment is affirmed.
The other Justices concurred. | [
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Cooley, C. J.
Plaintiff sued tbe defendant to recover damages for the killing of certain colts owned by him, by running upon them one of its trains. The breach of duty charged upon the defendant was that while operating its railroad it “did not maintain a fence of the height and strength required by law, or sufficient to prevent cattle or other animals from getting on its said railroad on the south side thereof, in the township of Ovid, aforesaid, at a place other than at a street or farm crossing or at or about station grounds, but on the contrary thereof, the said defendant, at the time and place aforesaid, negligently and unlawfully permitted the said railroad and the track thereto, along which the said defendant ran several railroad steam-engines and passenger and freight trains by night and by day, to be and remain unfenced and open to free and unobstructed ingress by horses and cattle from adjoining lands,” whereby the said colts “strayed and went upon the grounds and track of the defendant’s said railroad, at the time and place aforesaid, and were then and there run upon and against,” etc.
On the tidal it appeared that the colts went upon the track of the railroad in the night-time, passing to reach it through the premises of one Van Deusen, and through a gate immediately back of Van Deusen’s house. The gate was not at a farm crossing, and would seem from the evidence to have been much used by people in the neighborhood. Van Deusen, for the protection of his own stock, was accustomed when at home to look every night to make sure that the gate was closed, and he had done so and found it closed the evening of the night the colts were killed. How the gate came to be open afterwards was not shown. The plaintiff contended on the trial that, the defendant should not have allowed the -gate to be constructed for use where this was constructed, and that the fence, with this gate in it, could not be deemed the sufficient fence the statute requires. In submitting the case to the jury the judge said :
“The question comes, had the defendant complied with the law — made such a fence along the south side of its track as the law required when it permitted the gate to be kept there; assuming now that it was a good gate, and of sufficient strength — equal to the strength of the fence when properly shut, — did they comply with the law when they permitted the gate to be put in there and kept there, knowing its liability to be sometimes open and sometimes shut; was that meeting the requirements of the law ? If it did meet the requirements of the law, then, of course, there is no negligence at that point, and no liability because of putting in the gate.
I leave the question to you, gentlemen of the jury, to say from the evidence in the case what is in the case as to the gate being there, and its having been sometimes open and sometimes shut by the employees of the company. I leave that for you to say,, with the gate there, and being liable to be sometimes open and sometimes shut, and assuming that it was of proper strength when shut, whether in that condition there would be a fence there, as required by law, equal in strength to a division fence as required by the statute. If it was, with the gate there in that condition, its liability to be open and shut, as you have heard it spoken about in the evidence, then the company has done its duty; if not, then it has not.”
The jury returned a verdict for the plaintiff. They also" found specially in answer to questions that Yan Deusen closed the gate between eight and nine o’clock in the evening before the injury; that it was afterwards opened by some person or by some other means; that the colts passed through the gateway by reason of its being so opened; and “ that the gate in the condition testified to by the witnesses, either shut or opened, was not a sufficient fence within the meaning of the statute.”
Judgment was rendered on the verdict, and the defendant brings error.
The instruction of the judge took an erroneous view of the statute. The requirement of the statute then in force was that every railroad company should “ erect and maintain fences on the sides of their respective roads of the height and strength of a division fence required by law, with fences and cattle-guards at all highway and street crossings, sufficient to prevent cattle or other animals from getting on such railroad; also gates or bars convenient for farm crossings.” Public Acts 1875, p. 139. It seems to have been thought by the judge that the railroad company should put gates in or allow them to be put only at farm crossings; and that if they were put in elsewhere, and were more liable to be left open than a fence was to be thrown down or get out of repair, the fence, with the gate in, could not be deemed a sufficient fence. And this obviously was the view of the jury.
The statute, it will be noticed, is imposing duties on the railroad company when it requires it to erect gates or bars at farm crossings. It does not preclude gates or bars at other places; and there must be many places where they will be needed quite as much, and where the company might be justly subject to complaint if it should refuse to adjoining proprietors the convenience which gate or bars would furnish. We have no doubt whatever of its right- to permit them to be constructed, or to construct them itself if it shall deem the construction advisable.
Whether the fence elsewhere was sufficient is of no importance in this case, it appearing that the colts actually passed through the gate. Lawrence v. Milwaukee &c. Ry. Co. 42 Wis. 322. And the last special finding of the jury, being based on the erroneous instruction of the judge, and in itself immaterial, would not preclude the right of the defendant to a judgment, which on the other findings ought to have been given in its favor.
A new trial must be ordered.
The other Justices concurred.
Afterwards, at the January term, 1885, appellant’s counsel moved for a re-taxation of costs so as to include the sum which appellant had been required to pay in order to obtain a transcript of the stenographer’s minutes of the trial in the-lower court. It appeared that the board of supervisors had passed a resolution requiring parties who needed such transcripts for the use of the judge in settling exceptions to pay therefor. Submitted and denied January 6, 1885.
W. E. Bussell for the motion.
A. D. Griswold against, citing Bell v. Pate 48 Mich. 640.
Per Curiam. The cost of obtaining a transcript of the stenographer’s minutes, where such transcript is required by the circuit judge before settling a bill of exceptions, will not be allowed in the taxation of costs, even though the board of supervisors shall have declared by resolution that every litigant so requiring a transcript shall pay for it. | [
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Cooley, C. J.
The Attorney General files this information to enjoin the corporate authorities of the city of Detroit from carrying into execution a contract made by the city ■comptroller with the Brush Electric Light Company for lighting the streets and public places of the city for one year from and after June 30, 1884. The contract price was ninety-five thousanddollars. The information is filed in equity on the relation of two tax-payers of the city of Detroit, who aver that their proportion of the tax which must be levied for the fulfilment of the contract will exceed one hundred dollars.. The ground of complaint of the contract is that the provision ■of the city charter which forbids the letting of contracts where the amount to be paid shall exceed two hundred dollars, except to the lowest responsible bidder after the publication of notice ■calling for bids, was not observed before this contract was let. No fraud or intentional wrong is charged against anyone, and no equity set up except the failure to follow this provision of the charter.
It appears that the common council, by resolution adopted June 4, 1884, directed the city comptroller “to advertise one week for proposals for the annual contracts for the fiscal year 1884, beginning July 1,1884, and ending June 80, 1885.” A notice was accordingly published with specifications, among which was the following: “ For illuminating-the streets of the city, or any portion of them, with electricity, proposals for electricity to state the number of lights- and to be confined to such localities as bidders may name in their proposals. Proposals for electricity to include cleaning, lighting and extinguishing. Illuminating with electricity to be during the same hours, and under the same rules, as-those prescribed for gas. The bidders to make daily reports to the city gas inspector at his office.”
In response to this notice the Brush Electric Light Company sent in proposals for lighting the entire city for the gross sum of $114,644 for every night in the year, and also for lighting specified portions of the city for sums named.. The council examined these several proposals, and acce2)ted one of them. No other proposition for electric lighting was-sent in. Previous to this time the appropriation for street lighting had been made for the year at $95,669, and that sum. had been spread upon the tax-roll for collection.
After their proposition had been accepted, the Brush Electric Light Company sent to the council a communication,. 2^ro2>osing to so modify as to provide for lighting all the city “ except the large vacant spaces which are not yet. occupied ” at the gross sum of $95,000. The council acce23ted this 2)rop~ osition and directed the comptroller to enter into a contract with the company according to its terms; which that officer 2Droceeded to do. The date of the contract is June 14, 1S84, and it was approved and confirmed by the council, June 20,. 1884. Eive days later the present relators as tax-payers filed their bill to enjoin the execution of the contract, but on-applying for temporary injunction upon it, the writ was- refused upon the ground that the grievance, if any, was of a public nature, and could not be redressed in that suit. The present suit was then begun, the bill being filed July 15, 1881.
The first question that presents itself in the case is whether the State has any such interest as justifies the intervention of the Attorney General. In a pecuniary point of view the State is not interested at all; and the only ground of interference is that the city is abusing the corporate franchises which have been conferred upon it by the State. But that may be a very substantial ground. In Attorney General v. City of Detroit 26 Mich. 263, we said that “ every misuse of corporate authority is in a legal sense an abuse of trust; and the State as the visitor and supervisory authority and creator of the trust, is exercising no impertinent vigilance when it inquires into and seeks to check it.” But in the same case it was added: “ Where,. however, the Attorney General is to intervene in corporate affairs on behalf of the State, the abuse should be one of a substantial nature, and not of a character merely technical or unimportant. It should appear that the public has a substantial interest in the question ; the right involved should be a public right, or at least not a private right merely; the wrong done or attempted, if it consist solely in a misuse or misappropriation of funds, should be either one involving questions of public policy, or, where that is not the case, the amount involved should be something more than merely nominal; something that is not beneath the dignity of the State to take notice of and protect by such proceeding. The remedy is somewhat extraordinary, and substantial grounds ought to appear to justify a resort to it.”
What are the substantial grounds in this case? As we have seen, they are that the provisions of the city charter have not been followed preliminary to entering into the contract. An attempt was made to comply with them, but what was done is said to have been insufficient both in form and in substance. But bad faith is not charged, and if it were, there would be nothing in this record to justify the charge being made. The city authorities contend now that what was done by them meets all the requirements of the charter, and that this suit is based upon an erroneous construction of its provisions. If they are mistaken in this, the mistake is no doubt an honest one; and if it is, the State has no such reason to interfere as it might have if there was an intentional perversion of the charter by way of a gradual assumption of powers which the State had never intended to grant.
If there is any public wrong in this case, it must be, so far as we can see, because public moneys are being misappropriated by payment upon an illegal contract. But as we have seen, the contract is only alleged to be illegal by reason of informalities: it had an important and necessary public purpose in view, and that purpose must be accomplished, if not by this contract, then by some other. The city, before making this contract, had calculated the cost of accomplishing the purpose at $95,669, and made provision for raising that sum. We have no means of knowing that if this contract were set aside, the city would be gainer to the extent of a dollar: it might for aught we know be a loser. What we are asked to do, then, is to set aside the contract upon the sole ground of informalities arising from an honest misconstruction of the city charter, where there has been no intentional abuse of authority, and where we cannot know that benefit will arise to the public or even to any single individual. And we are to do this, if at all, in a suit begun after the parties had entered upon the performance of the contract.
We cannot see that the State has any interest in doing this. The dignity of the State has not been insulted by the corporate action ; its authority is not encroached upon; the franchises it has granted have not been intentionally abused; no trust fund raised under its authority is being diverted; and it is not shown that any citizen is being wrongfully or excessively burdened. Nothing appears in the case different from what might appear in any case where the city, in a matter involving two hundred dollars, has let a contract upon an informal or insufficient public notice. Is the Attorney General to interfere in every such case? If so, little will be hazarded in predicting that the evils caused by interference will be greater than any which will be redressed.
In this case the Attorney General has merely allowed the use of his name by the relators for the purposes of an adjudication upon the legal questions. But we do not think anything appears in the facts of this case rendering it necessary or useful that any such adjudication should take place. It is not best, as a rule,-that the State should make itself a party to local controversies, for they will be better settled by the people immediately concerned without its aid than with it. There are some exceptional cases, but this does not appear to bo one of them.
The information should have been dismissed at the cost of the relators, and it will be so ordered now.
The other Justices concurred. ' | [
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Champlin, J.
Plaintiff brought replevin before a justice of the peace against defendant to obtain possession of a horse. The defendant appeared and pleaded the general issue. The trial before the justice resulted in a judgment for the plaintiff, and defendant appealed to the circuit court, where the cause was tried before a jury .upon the pleadings made in the court below. To maintain its case the plaintiff produced as a witness one O. W. Seymour, who testified that until recently he had been the agent and - manager of the plaintiff at East Saginaw and vicinity, but at the time of the trial he was not in plaintiff’s employ. He was asked to state what negotiations, if any, he had on behalf of the plaintiff with McArthur relative to the horse in question. This was objected to by the defendant because the witness, being the agent of the plaintiff (who was a corporation) at the time of the negotiation referred to, was excluded from testifying by the terms of the statute (How. Stat. §7515), which provides that when any suit or proceeding is prosecuted or defended by the heirs, assigns, devisees, legatees or personal representatives of a deceased person against a corporation, no officer or agent of any such corporation shall be allowed to testify at all in relation to matters which, if true, must have been equally within the knowledge of such deceased person. At the time this objection was made there was nothing in the pleadings or record which showed that the defendant was the representative of any deceased person, or that the suit or proceeding was prosecuted or defended by a representative of a deceased person. The court excluded the testimony.
The defendant’s counsel thereupon stated that the defendant was in court simply as administrator, and offered to put defendant upon the stand and prove that fact, and that it was the only justification he made for holding the horse; and in order to show that he was special administrator at the time_ suit was commenced, offered in evid-ence the order of the judge of probate of Saginaw county, appointing him special ' administrator. The order bore date December 18, 18S3, and this suit was commenced December 21, 1883. The plaintiff objected to the introduction of such evidence as incompetent and immaterial, and because such defense could not be made under the plea of general issue without notice. The court overruled the objection and admitted the testimony.
It is proper, first, to consider whether under the pleadings the defendant could be permitted to show his official character as special administrator of the estate of Angus McArthur, and that he claimed to hold the property replevied, as such special administrator. The statute giving ■ jurisdiction to justices of the peace in actions of replevin provides that the proceedings before the justice shall, in cases not specially provided for in the Justices’ Act, be governed by the statute regulating the proceedings in actions of replevin in the circuit court; and How. Stat. § 8339 provides that the defendant may plead the general issue, which shall put in issue not only the detention of the property but also the [property of the plaintiff therein and his right to the possession thereof at the time of the commencement of the suit, and under such plea the defendant may give notice of any special matter of defense to the action. Under this plea, by authority of this statute, the defendant may show that the plaintiff had no title or had no right to the possession when suit was commenced. In Loomis v. Foster 1 Mich. 165, it was held that the statutory plea- of general issue put in issue every fact stated in the declaration necessary to sustain the plaintiff’s action. Under such plea the defendant can show in justification a judgment and execution, and that the defendant, as an officer, took the goods as the property of the judgment debtor therein named (Snook v. Davis 6 Mich. 156); that the defendant as'sheriff seized the same goods on a lawful writ from plaintiff, and continued lawfully to hold the same. Belden v. Laing 8 Mich. 503. The proof offered was a link in the chain of testimony tending to show that the title was in the defendant at the time of the commencement of suit, and that, as special administrator, he was entitled to the possession of the property. ' The testimony was admissible under the plea of the general issue, without notice.
The testimony of the witness Seymour, relative to the negotiations had between him and McArthur, was rightly excluded. The record shows that Angus McArthur was, at the time of his decease, in the employment of the corporation plaintiff, and was in possession of the horse in question at that time, and it was claimed by the defendant that McArthur had purchased the horse from the plaintiff and had paid nearly all of the purchase price. Plaintiff denied having made an absolute sale of the horse to McArthur, and the real question in the case was whether a sale had been made or not.
If Seymour was an officer or agent of plaintiff at the time to which his testimony was directed, it mattered not that he had since ceased to be such officer or agent — his testimony was inadmissible under the statute. Any other construction would render the statute nugatory.
Where the suit is not brought against the defendant in his representative character, and his defense is based upon his being an administrator, it is within the province of the trial judge, in order to enable him to rule correctly upon the admissibility of testimony under the statute, to permit proof of such character out of the regular order. This course was pursued in this case. There was no abuse of discretion, and no error in the ruling of the circuit judge in excluding Seymour’s testimony at that stage of the case.
The defendant contended that the justice had no jurisdiction, and relied upon How. Stat. § 6815, which provides that “No justice of the peace shall have cognizance of * * * actions against executors or administrators as such, except in the cases specially provided by law.” And the circuit judge took the same view and charged the jury as follows:
“Gentlemen of the Jury: This action was brought in magistrate’s court against a special administrator of an estate. The statute prohibits a justice of the peace from trying or having such an action. He has no jurisdiction in such an action, as I understand the statute, and the defendant is entitled to a judgment for a return of the property, ordinarily. But in this case defendant waives return, and asks a judgment for the value of the property. There is no testimony with regard to the value, except the testimony of Mr. Benjamin; that is, $100. If you believe him as to the value, render a verdict for that amount.”
We think the court erred. If it be assumed that the justice had no jurisdiction to entertain an action against an administrator, as snch, yet if the administrator appears in a case when he is not named as such, and' does not raise the question by plea in abatement, but interposes merely the plea of general issue, the question of jurisdiction would be closed when such parties proceeded to trial upon the merits. Henderson v. Desborough 28 Mich. 170.
But the justice was not prohibited by the statute from trying the suit, even if the defendant had been sued as special administrator. The statute contains an important exception, and the action of replevin comes within the excepted cases. How. Stat. § 5902 enacts that when commissioners are appointed, as provided in Chapter 224, for examining or allowing claims against any estate, no action shall be commenced against the executor or administrator, except actions of ejectment, or other actions to recover seizin or possession of real estate, and actions of replevin. Section 5947 enacts that “ In no other case, except such as are expressly provided for in this chapter, shall any action be commenced or prosecuted against an executor or administrator.” The manifest object of the statute is to permit suits to be brought against executors and administrators to try the title or right to possession of both real and personal property during the progress of the settlement of the estate. It is quite important that such rights should be determined before the estate can be settled and distributed among creditors or others entitled to a share on final distribution. It was also the object of the statute, when commissioners on claims are appointed, that all who have claims which are subject to be paid out of the assets shall present them to the commissioners for examination and allowance, and to protect the executor or administrator from being harassed with suits by creditors of the estate. The court should have permitted the case to go to the jury upon the testimony relating to the merits of the controversy.
The judgment is reversed with costs of both courts and a new trial ordered.
The other Justices concurred. | [
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T. M. Kavanagh, J.
Plaintiffs filed a complaint in the Barry county circuit court against defendants claiming violation of their rights as riparian owners on Gun lake and seeking a declaratory judgment to that effect. Both parties moved for summary judgment. Plaintiffs were granted the relief requested.
Defendants appealed to the Court of Appeals, which reversed the judgment of the trial court and directed that summary judgment be entered for defendants.
Leave to appeal to this Court was granted.
This case concerns certain property rights in and around Gun lake, which is situated partly in Barry county and partly in Allegan county. The parties agree that this lake has approximately 2,680 acres of surface area and approximately 30 miles of shoreline.
The defendant corporation is a contract purchaser of a riparian parcel of land having approximately 1,415 feet of frontage on said lake, and the individual defendants are the sole stockholders of the corporation.
Plaintiffs are riparian owners of other property abutting Gun lake.
The State of Michigan sought and was granted permission in the trial court to file a brief amicus curiae. The State is a riparian owner of a large parcel of land abutting the lake.
Defendants are in the process of developing and subdividing their parcel of land into from 144 to 153 lots. Of these lots, approximately 16 will abut on the natural shoreline of the lake. The remainder of the lots will front on canals. To give the back lot purchasers access to the lake the defendants’ plan calls for excavating across riparian lots Nos. 13 and 76. (See attached plat.)
The defendants purport to grant to the purchasers of those lots fronting on the canals riparian rights to the lake and rights of access through the excavation to the lake. The back lots would have frontage on the canals of approximately 11,000 feet.
The following questions are raised on appeal:
1. May a right of access to Gun lake be created by dredging an artificial canal from the lake through lots having frontage on Gun lake to hack lots having no frontage thereon, and may ownership of such lots carry with it riparian rights ?
2. Does the development by defendants' of their property which partially fronts on Gun lake by the construction of a canal connecting back lots to the lake and granting rights of access to the lake constitute an illegal invasion of the rights of the plaintiffs and an infringement of their riparian rights' in and to the surface of Gun lake and in and to the subaqueous land thereunder?
“Riparian land” is defined as a parcel of land which includes therein a part of or is hounded by a natural water course. 4 Restatement, Torts, § 843, p 326. See, also, Palmer v. Dodd, 64 Mich 474, 476 ; Stark v. Miller, 113 Mich 465; Monroe Carp Pond Co. v. River Raisin Paper Co., 240 Mich 279, 287.
A “riparian proprietor” is a person who is in possession of riparian lands or who owns an. estate therein. 4 Restatement, Torts, § 844, p 331.
“The riparian owners have a right to the enjoy-; ment of the natural flow of the stream with no burden or hindrance imposed by artificial means.” Koopman v. Blodgett, 70 Mich 610, 616; Kennedy v. Niles Water Supply Co., 173 Mich 474.
As it was stated in Harvey Realty Co. v. Borough of Wallingford, 111 Conn 352, 358 (150 A 60, 63):
“A riparian proprietor is an owner of land bounded by 9. water course or lake or through which a stream flows, and riparian rights can be claimed only by snch an owner. They are appurtenant only to lands which touch on the toater course or through which it flows and which are used as a whole for a common purpose, not to any lands physically separated from the stream and the land bordering on it, although belonging to the same owner.”. (Emphasis supplied.)
In the case of Schofield v. Dingman, 261 Mich 611, the Court was considering a situation similar to the case at bar. One Turner owned land bordering on Lake Michigan and had prepared a plat of a part of it. There was a bluff about 50 feet above the water at this point along the lake and at times the water washed the foot of the bluff. Most of the time, however, there was a sand beach between the bluff and the water. The plat was laid out along the top of the bluff. Turner planned to sell those lots for resort purposes and to promote sales attempted to convey riparian rights with the lots. Turner died, and the defendants acquired his rights to the land between the bluff and the water and claimed exclusive right to possession and control thereof. Of the granting of the riparian rights to the back lot purchasers, the Court said (p 613):
“ ‘Riparian rights,’ accorded lot owners separated from the beach by intervening lots, can be given no greater meaning than right of access to the beach and enjoyment thereof for the purposes of recreation.”
In the case of Hilt v. Weber, 252 Mich 198, the Court said (p 218):
“It is a settled law both in this State and elsewhere, so settled that no contrary authority has been cited, that the interposition of a fee title between upland and water destroys riparian rights, or rather transfers them to the interposing owner. The basis of the riparian doctrine, and, an indispensable requisite to it, is actual contact of the land with the water.” (Emphasis supplied.)
So, also, was the rule expressed in the case of Richardson v. Prentiss, 48 Mich 88, 89, 90:
“Under the conveyance to complainant of lot 5, she acquired no riparian rights whatever. This lot was conveyed according to a plat which reserved a strip of land between the lot and the waters of the hay, and a strip 2 rods wide would as effectually cut off from lot 5 all riparian rights as would a much wider strip.” (Emphasis supplied.)
Artificial water courses are waterways that owe their origin to acts of man, such as canals, drainage and irrigation ditches, aqueducts, flumes, and the like. 4 Restatement, Torts, § 841, subd h, p 321.
Land abutting on an artificial water course has no riparian rights. As is stated in the ease of Harrell v. F. H. Vahlsing, Inc. (Texas), 248 SW2d 762, 769, 770:
“In Kirk v. Hoge, 123 Va 519, 532 (97 SE 116, 120), it was said that:
“ ‘The natural corporeal right in question is possessed by riparian owners of land on natural channels of water courses only. Such right does not exist in the water flowing in an artificial channel. The right of those owning land bordering upon or through which artificial channels pass, to the use of the water flowing therein, is not a natural right, nor a corporeal right, hut an incorporeal right, which can be acquired only by grant, express or implied, or by prescription. Angell on Water Courses (7th ed), § 90, p 91; 3 Farnham on Waters and Water Rights, § 820.
“ ‘There are some expressions in some of the authorities cited and relied on by appellees (40 Cyc, p 608[f]; 28 Am & Eng Ency Law [1st ed], p 982), and in other authorities on the subject, to the effect that rights may be acquired by landowners on artificial channels of water courses of which they cannot be deprived; but upon close consideration of such, authorities it will be found that the rights which can be so acquired must be by prescription, or by grant, express or implied, and can be acquired in no other way. We venture to say that no well-considered authority can be found which holds that such rights are natural rights, such as are possessed by a riparian landowner upon the natural course of a flowing stream, or that they can be acquired otherwise than as aforesaid.’
“Likewise, in Fox River Flour & Paper Company v. Kelley, 70 Wis 287, 300 (35 NW 744, 749), the supreme court of Wisconsin said:
“ ‘The courts hold that the right to the water of a fiver flowing in a natural channel through a man’s land','and the right to water flowing to it through an artificial water course constructed on his neighbor’s land, do not stand upon the same ground. (Citing authorities.) In the former case, each riparian proprietor prima facie is entitled to the unimpeded.flow of the water in its natural channel, while ih the latter case any right to the flow must rest on some grant or arrangement, either proven or presumed, from or with the owner of the land from which the water is artificially brought, or on some other legal origin.’
“Also, in Drainage District No. 1 v. Suburban Irrigation District., 139 Neb 333, 343 (297 NW 645, 651), the supreme court of Nebraska said:
“ ‘Nor do the claims of riparian rights aid the defendant and the interveners. We have held that land, to be riparian, must have a stream flowing over it or along its borders; and such proprietors have the right to the ordinary or natural flow of such stream. Crawford Company v. Hathaway, 67 Neb 325 (93 NW 781; 60 LRA 889, 108 Am St Rep 647).
“ ‘In the instant case, the drainage ditches here inVolved'are strictly artificial creation's.' Neither in source nor channel do they partake of the elements' of a natural stream.
“ ‘ “There is a well defined distinction between artificial streams and natural streams in artificial channels. Thus, riparian rights do not ordinarily attach to artificial streams in artificial channels.” 27 RCL, p 1204. See Sampson v. Hoddinott, 1 CBNS 590, 26 LJ (Common Pleas) NS 148; Fox River Flour & Paper Company v. Kelley, 70 Wis 287 (35 NW 744).’
“Other authorities supporting the rule stated' in the opinions above quoted from are: Green v. Carotta, 72 Cal 267 (13 P 685); Annotations, 50 LRA 839; 67 Corpus Juris 903, Waters, § 333; 56 Am Jur 624, Waters, § 155; 2 Farnham, Waters and Water Eights, p 1570; Id, Vol 3, p 2428; 1 Kinney on Irrigation and Water Eights ’(2d ed) 803, § 473.” (Emphasis supplied.).
See, also, Gould on Waters (3d ed), § 225, p 444.
So, too, is the law in'Michigan. See the case of Ruggles v. Dandison, 284 Mich 338, where a small, lake of approximately 15 or 20 acres was situate! on the land of the defendants. On the line dividing the plaintiffs’ and defendants’ property, the defendants had erected a wire fence which cut off plaintiffs! access to the lake. Plaintiffs filed -.a bill to enjoin defendants from maintaining the fence on the theory that the plaintiffs had riparian rights in the. Jake.. A witness for the defendants testified he had seen two members of the plaintiffs’ family making a channel from their property into the lake so' that' they could pull a boat up onto solid ground. Plaintiffs’ tenant testified that at times-' during the year the land between the lake and the 'fence' was miry and boggy. As to whether the plaintiffs’ land 'possessed riparian rights, the Court said (pp 340, 341):
“Whether this lake' can be said to extenj to plaintiff s’'-property is a question of fact; 'If the''water- of the lake touches plaintiffs’ property, because of an artificial channel which was dug by plaintiffs from their property, through the bog land to the lake, they can acquire no riparian rights by virtue of this fact; and if water from the lake at times flows aronnd boggy places on plaintiffs’ marsh land, because of the fact that such soft marsh muck has been trampled down by cattle pastured there during many years, in the past, plaintiffs can claim no riparian rights, because of this situation, as this would not be the natural condition of the boggy land adjacent to the lake.” (Emphasis supplied.)
We, therefore, conclude that parcels of land to be subdivided from the main tract of land bordering on Gun lake have no riparian rights as: (1) they neither include therein a part of nor are they bounded by Gun lake, and (2) the canal itself would be an artificial water course giving rise to no riparian rights.
The remaining question for decision is whether or not riparian rights may be conveyed to a grantee or reserved by the grantor in a conveyance which divides a tract of land with riparian rights into more than one parcel, of which parcels only one would remain bounded by the water course.
In the case of Harvey Realty Co. v. Borough of Wallingford, supra, Justice Hinman, writing for the Court, stated (111 Conn 352, 358, 359):
“It is clear that the grantees or contractees, from the plaintiff, of lots separated from and not bordering on Pine lake can have, of their own right, no riparian privileges in its waters. And any attempted transfer of the right made by a riparian to a non-riparian proprietor is invalid.” (Citing text and cases.) (Emphasis supplied.)
The Court of Appeals in its opinion and the defenjants in their brief rely heavily on certain cases from Minnesota and California. As to the Minnesota case — St. Anthony Falls Water-Power Company v. City of Minneapolis (1889), 41 Minn 270, 273, 274 (43 NW 56, 57) — it is clear that riparian rights were not conveyed, but rather an easement of necessity arose. Justice Mitchell points this out in his opinion, stating:
“It is contended that, as the city owns no land abutting on the river, it is not a riparian owner, and hence has no riparian rights. This is a mere question of names or definitions, which is of no legal significance whatever in the case. * * * The only question, therefore, is, what rights were in fact granted by this deed?” (Emphasis supplied.)
Justice Mitchell then proceeded to discuss easements of necessity in conveyances of certain property.
It is apparent from further reading of Minnesota eases that Minnesota does not follow the rule of transferability of riparian rights. In the case of Johnson v. Seifert (1960), 257 Minn 159, 165 (100 NW2d 689, 695), the Court was considering certain rights between riparian owners of a lake shore. The Court quoted from another Minnesota case — Petraborg v. Zontelli, 217 Minn 536, 547 (15 NW2d 174, 180):
“ ‘As to a public lake, a mutual right of enjoyment exists between and is shared by riparian owners and the public generally. Insofar as such recreational benefits as boating, hunting, and fishing therein, the riparian proprietor has no exclusive privileges. Sanborn v. People’s Ice Company, 82 Minn 43, 50 (84 NW 641, 642, 51 LRA 829, 83 Am St Rep 401), where we said, however, with reference to the vested interests of the shore owners:
“ * * There are certain interests and rights vested in the shore owner which grow out of his special connection with such waters as an owner. These rights are common to all riparian owners on the same body of water, and they rest entirely upon the fact of title in the fee to the shore land.”
“ ‘To say that a shore owner does not have additional private rights and interests distinct from the public is to ignore completely those rights which attach by reason of his shore ownership.’ (Italics supplied.)”
Note in these statements the emphasis on the vested interests of the shore owner and that these rights arise from shore ownership.
The California cases relied on are not decisive here. In two of the California cases cited in the Court of Appeals’ opinion and in the defendants’ brief, the Court recognized the “well-known scarcity of water” in that State. Anaheim Union Water Company v. Fuller (1907), 150 Cal 327, 335 (88 P 978, 982, 11 LRA NS 1062), and Frazee v. Railroad Commission of California (1921), 185 Cal 690, 698-(201 P 921, 924). This “scarcity of water” has given rise to various rules of law that differ immensely from those in our State. For example, it is stated in 1A Thompson on Real Property (1964 ed), § 273, pp 435, 436:
“There have developed in the United States three theories as to public policy in water rights: (a) The common-law riparian doctrine of the eastern states; (b) The ‘Colorado’ doctrine of prior appropriation (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, and Wyoming); and (c) The ‘California’ or dual doctrine of riparian rights and prior appropriation, modified as to each (California, Kansas, Nebraska, North Dakota, Oklahoma, Oregon, South Dakota, Texas, and Washington).”
See, also, 6A American Law of Property, §§ 28.55, 28.58, pp 156, 170; 5 Powell on Real Property, § 733, p 439, et seq. Note, as to policy, et cetera, the California Constitution, art 14, § 3, and West’s Annotated Codes of California, Water, §§ 100, 106. For an extensive discussion of California law on riparian rights, see United States v. Fallbrook Public Utility District (1958, SD Cal), 165 F Supp 806, 823, et seq.
Defendants direct attention to the statement of Justice Fead in the case of Bauman v. Barendregt, 251 Mich 67, 69:
“It is a settled rule in this State that, where there is no reservation of them, riparian rights attach to lots bounded by natural water courses.” (Citing cases.) (Emphasis supplied.)
We hold that what is meant by this “reservation” of riparian rights is merely the reservation of a right-of-way for access to the water course. In Richardson v. Prentiss, 48 Mich 88, upon which Justice Fead relied in making this statement concerning .reservation of rights, it is clear that the Court while speaking of the reservation meant a reservation, not of riparian rights, hut rather of a right-of-way (p 91). This, however, cannot and does not give rise to riparian rights. Schofield v. Dingman, 261 Mich 611.
It is appropriate to reiterate the statement made by Chief Justice McGrath, writing for the Court, in the ease of The Grand, Rapids Ice & Coal Company v. The South Grand Rapids Ice & Coal Company, 102 Mich 227, 236:
“The shore proprietor takes by virtue of shore ownership. Ilis interest in the bed of the Stream he acquires as appurtenant to the grant, and the extent of that interest depends upon his frontage,, and the form, length, and breadth of the body of water upon which he abuts.” (Emphasis supplied.)
We hold that riparian rights are not alienable, severable, divisible, or assignable apart from the land which includes therein, or is bounded, by a natural water course.
While riparian rights may not be conveyed or reserved — nor do they exist by virtue of being bounded by an artificial water course — easements, licenses and the like for a right-of-way for access to a water course do exist and ofttimes are granted to nonriparian owners.
We will, therefore, treat the proposal here as though easements for rights-of-way for access are given to the back lot purchasers. We must then consider what right, if any, the owners of the back lots have to use these rights-of-way. In so doing, attention must be given to the use of riparian rights by the defendants and the remaining proprietors on Gun lake.
Riparian uses are divided generally into two classes. The first of these is for natural purposes. These uses encompass all those absolutely necessary for the existence of the riparian proprietor and his family, such as to quench thirst and for household purposes. Without these uses both man and beast would perish. Users for natural purposes enjoy a preferred nonproratable position with respect to all other users rather than a correlative one.
The second of these is a use for artificial purposes. Artificial uses are those which merely increase one’s comfort and prosperity and do not rank as essential to his existence, such as commercial profit and recreation. Users for artificial purposes occupy a correlative status with the other riparians in exercise of their riparian rights for artificial purposes. Use for an artificial purpose must be (a) only for the benefit of the riparian land and (b) reasonable in light of the correlative rights of the other proprietors. Evans v. Merriweather, 4 Ill (3 Scam) 492 (38 Am Dec 106). It is clear in the case before us that the use made of the property by the defendants is for a strictly artificial purpose and must meet the test of reasonableness.
In the case of Hoover v. Crane, 362 Mich 36, Justice Edwards stated (pp 40, 41):
“Michigan has adopted the reasonable-use rule in determining the conflicting rights of riparian owners to the use of lake water.
“In 1874, Justice Cooley said:
“ ‘ It is therefore not a diminution in the quantity of the water alone, or an alteration in its flow, or either or both of these circumstances combined with injury, that will give a right of action, if in view of all the circumstances, and having regard to equality of right in others, that which has been done and which causes the injury is not unreasonable. In other words, the injury that is incidental to a reasonable enjoyment of the common right can demand no redress.’ Dumont v. Kellogg, 29 Mich 420, 425 (18 Am Rep 102).
“And in People v. Hulbert, 131 Mich 156 (64 LRA 265, 100 Am St Rep 588), the Court, quoting from Gehlen Bros. v. Knorr, 101 Iowa 700 (70 NW 757, 36 LRA 697, 63 Am St Rep 416), said (p 170):
“ ‘No statement can be made as to what is such reasonable use which will, without variation or qualification, apply to the facts of every case. But in determining whether a use is reasonable we must consider what the use is for; its extent, duration, necessity, and its application; the nature and size of the stream, and the several uses to which it is put; the extent of the injury to the one proprietor, and of the benefit to the other; and all other facts which may bear upon the reasonableness of the use. Red River Roller Mills v. Wright, 30 Minn. 249 (15 NW 167, 44 Am Rep 194), and cases cited.’
“See, also, Merkel v. Consumers Power Co., 220 Mich 128.”
The trial court made no finding of fact as to the reasonableness of the use. This record is insufficient for us to make a determination as to reasonableness. Therefore, we remand to the trial court for such determination. The trial court should keep in mind the following factors in determining whether the use would be reasonable:
First, attention should be given to the water course and its attributes, including its size, character and natural state. In determining the reasonableness of the use in the case at bar, it should be considered that Gun lake is not a large lake, that it is used primarily for recreational purposes, and that the defendants are changing its natural state by expanding the lake frontage of their property from an actual 1,415 feet to a total, inclusive of the canals, of 12,415 feet, being an increase in frontage of approximately 800 per cent.
Second, the trial court should examine the use itself as to its type, extent, necessity, effect on the quantity, quality, and level of the water, and the purposes of the users. Factors in this particular case that should be considered include: (a) that this use would permanently add approximately one family without riparian rights to each 18 acres of surface area (or 137 families); (b) the possibility that the level of the lake may be reduced by withdrawing trust waters into over 2 miles of the proposed canals, as is alleged by the attorney general in his motion to intervene; (c) the possibility that pollution may result; (d) that there is nothing in the record showing any necessity for this use; and (e) the fact that it appears that the purpose of the defendants herein is merely commercial exploitation.
Third, it is necessary to examine the proposed artificial use in relation to the consequential effects, including the benefits obtained and the detriment suffered, on the correlative rights and interests of other riparian proprietors and also on the interests of the State, including fishing, navigation, and conservation. An additional fact to be considered by the trial court in this litigation is whether the benefit to the defendant subdividers would amount merely to a rich financial harvest, while the remaining proprietors — who now possess a tranquil retreat from everyday living — would be forced to endure the annoyances which would come from an enormous increase in lake users.
Undoubtedly, at the new hearing, the attorney general of the State of Michigan will intervene under his statutory general powers of intervention for the purpose of protecting the rights of the public.
If, after considering all of these factors and any additional testimony the parties may desire to present, the trial court (as chancellor) concludes the use is unreasonable, that court should retain jurisdiction of the matter for the purpose of granting such further necessary or proper relief as may be necessary to protect the rights and interests of plaintiffs, the public, and riparian owners of property abutting this lake. Such further or proper relief shall be proposed only after reasonable notice and hearing, as is provided under G-CB. 1963, 521.6.
The judgment of the Court of Appeals is reversed and the case is remanded to the circuit court for a determination, pursuant to this opinion, of the reasonableness of the proposed use.
Plaintiffs shall have costs.
Black, Souris, and Adams, JJ., concurred with T. M. Kavanagh, J.
Reported, 2 Mich App 404 — Reporter.
The oilier California cases are: Strong v. Baldwin (1908), 154 Cal 150 (97 P 178, 129 Am St Rep 149); Miller & Lux, Inc., v. J. G. James Company (1919), 179 Cal 689 (178 P 716). | [
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Adams, J.
John C. Jordan, husband of plaintiff, was killed'on September 28, 1960, while attempting to repair a crane owned by C. A. Roberts Company. In proceedings before the workmen’s compensation department in February, 1961, Thelma Jordan represented that she was the widow and sole dependent of John C. Jordan, deceased, and she and C. A. Roberts Company represented that “John C. Jordan was an employee of C. A. Roberts Company and on or about September 28, 1960, he received an injury arising out of and in the course of his emr ployment.” On February 24, 1961, a redemption order was entered by a hearing referee. Liability was redeemed for $6,774.
On June 25, 1963, Thelma Leola Jordan, administratrix of the estate of John C. Jordan, deceased, commenced this suit for wrongful death, alleging that John C. Jordan was killed as a result of the negligence of the defendants and that he left surviving him a wife, a son and a daughter who sustained damages as a result of defendant’s negligence. The trial judge held:
“In making the claim and receiving workmen’s compensation, the plaintiff administratrix had to establish to the satisfaction of workmen’s compensation commission that her husband was an employee of the C. A. Roberts Company. Having made that determination and then having had a redemption order entered, the plaintiff is bound by such determination. No appeal was taken from the compensation proceedings, and its finding* having become final and unappealed from, is res judicata. It may not now be attacked by the plaintiff herself who has received benefits through the workmen’s compensation proceeding.”
Motion for accelerated judgment in favor of defendant C. A. Roberts Company prior to trial was granted. From affirmance thereof by the Court of Appeals, appeal has been taken to this Court by-leave granted.
The Court of Appeals stated the issue as follows:
“Does a workmen’s compensation redemption order, followed by acceptance and payment thereunder, from which no appeal has ever been taken estop the beneficiary, or others, from collateral attack on findings necessary to validity' of said order?” 2 Mich App 113, 114.
While we agree with the conclusion of the trial judge and of the Court of Appeals, we predicate our decision upon the nature of the remedy under the workmen’s compensation statute rather than upon an estoppel or a holding that the decision of the workmen’s compensation department was res judicata. .
I.
Some of the confusion in this case arises from the fact that Thelma Jordan, widow and sole dependent of John C. Jordan, deceased, was a party to the proceedings before the workmen’s compensation department and Thelma Leola Jordan, administratrix of the estate of John C. Jordan, deceased, is the plaintiff in this present action. Thelma Jordan, party to the workmen’s compensation proceedings, acted in her own individual right by virtue of the provisions of the compensation act. CL 1948 and CLS 1961, § 411.1 et seq. (Stat Ann 1960 Rev and Stat Ann 1963 Cum Supp §17.141 et seq.). Thelma Leola Jordan, administratrix of the estate of John C. Jordan, deceased, is the legally appointed representative of John C. Jordan, deceased, suing in her representative capacity for wrongful death by virtue of the provisions of the wrongful death statute. CLS 1961, § 600.2922 (Stat Ann 1962 Rev § 27A.2922). She brings such an action-for the benefit of those persons who are entitled to share in a recovery — in this case, it is claimed, John C. Jordan’s wife, two children and his creditors. Legally there is no identity whatsoever between the above parties. They are complete strangers.
There being no identity of the parties,, the doctrine of res judicata is inapplicable. 170 ALR 1181; Tucker v. Rohrback (1864), 13 Mich 73; Bankers Trust Company of Muskegon v. Forsyth (1934), 266 Mich 517; Reid v. Gooden (1937), 282 Mich 495; Gumienny v. Hess (1938), 285 Mich 411; Sovereign v. Sovereign (1958), 354 Mich 150, 154; Giegling v. Helmbold (1959), 357 Mich 462, 465.
II.
Since in the eyes of the law Thelma Jordan, widow of John C. Jordan, deceased, and Thelma Leola Jordan, administratrix of the estate of John C. Jordan, deceased, have a separate existence, there cannot have been an election of remedies. An election involves a decision by one and the same person or entity.
III.
The workmen’s compensation act gives certain statutory benefits to employees and their dependents. The wrongful death act supplies a cause of action for damages in cases of wrongful death.
In Moran v. Nafi Corporation (1963), 370 Mich 536, 545, 546, this Court construed the provisions of the workmen’s compensation act to provide an exclusive remedy:
“Permitting the maintenance of actions for damages in instances where the injured employee is entitled to, and has received, compensation under the statute would clearly he at variance with the express language as enacted hy the legislature. Such an interpretation would mean that a dependent or other person claiming injury because of disability sustained by the employee might maintain suit to recover. No issue of such character was involved in Mackin v. Detroit-Timkin Axle Co., 187 Mich 8, as was pointed out by the Court in somewhat ambiguous language. The question was, however, squarely presented in Wall v. Studebaker Corporation, 219 Mich 434, in which the parent of a minor employee who received compensation for injuries sustained in his employment brought suit for loss of the son’s wages to which the parent claimed he was entitled. The Court quoted with approval part 1, § 4, of the statute as it then read, and stated (p 436):
“ ‘We think that the plain language of this statute clearly indicates that it was the intention of the legislature to abrogate the parent’s right of action for loss of services of his minor child while employed under the compensation act.’ ”
For a recent discussion by this Court of the nature of the remedy, see, also, Husted v. Consumers Power Company (1965), 376 Mich 41, 52-56. Once there has been an adjudication of the rights of parties under' the workmen’s compensation act, that remedy becomes the exclusive one.
Plaintiff contends that the exclusive nature of the remedy under the act applies only when there has been a contested adjudication of rights. Such a holding would be contrary to the provisions of the act:
“Where the conditions of liability under this act exist, the right to the recovery of compensation benefits, as herein provided, shall be the exclusive remedy against the employer.” CL 1948, § 411.4 (Stat Ann 1960 Rev § 17.144).
“If the employee, or his dependents, in case of his death, of any employer subject-to the'provisions of this act files any claim with, or accepts any payment from such employer, or any insurance' company carrying such risks, or from the commissioner of insurance on account of personal injury, or makes any agreement, or submits any question to arbitration under this act, such action shall constitute a release to such employer of all claims or- demands at law, if any, arising from such injury.” CL 1948, §416.1 (Stat Ann 1960 Rev §17.212).
The above provisions of the act were construed by the United States court of appeals, 6th Circuit, in Pfeifer v. GMG Truck & Coach Division (CA 6, 1958), 255 F2d 40. In that case the mother of the decedent received a compensation award as a dependent. The court of appeals held that the district court correctly dismissed an action against the employer by decedent’s administrator for wrongful death. For the same holding, see, also, Gray v. Brown & Sehler Co. (1918), 200 Mich 177.
Care should be taken to note that not all so-called proceedings under the workmen’s compensation act are such as to make the act the -exclusive remedy. Payment of voluntary weekly compensation benefits does not constitute a determination of employee status under the act so as to bar an action for negligence. Chaffee v. Steng.er (1960), 361 Mich 57. Acceptance of benefits voluntarily paid and a subsequent attempt to obtain an award of compensation were held not to bar a suit,for négligence by a person in fact having the relation of an independent contractor. Holcomb v. Bullock (1958), 353 Mich 514. Where a minor is illegally employed, so as not to come within the provisions of the workmen’s compensation act, it does not apply'so, as id bar a suit for negligence even after a purported settlement which was approved by the industrial accident board. . Grand Rapids Trust Co. v. Petersen Beverage Co. (1922), 219 Mich 208. See, also, Brabon v. Gladwin Light & Power Co. (1918), 201 Mich 697.
In Viaene v. Mikel (1957), 349 Mich 533, where an injured employee mistakenly brought an action for damages, he was held not to be precluded from making.claim for workmen’s compensation.
The determination of the proper forum must initially he made by one or more of the interested parties. If proceedings are had under the workmen’s compensation act resulting in a determination of jurisdiction from which no appeal is taken, by the adverse party, such action may be raised by the employer in bar where a suit is subsequently begun against him under the death act. It is in the nature of an affirmative defense and, if raised, is not subject to collateral attack as to proceedings before the' workmen’s compensation department.
In the present case, the unappealed order of the hearing referee constitutes a final and conclusive determination of the liability of the defendant arising out of the death of John C. Jordan. The decision of the Court of Appeals, for the reasons herein stated, is affirmed. Costs to the appellee.
Dethmers, C. J., and Kelly and O’Hara, JJ., concurred with Adams, J.
See GCR 1963, 116. — Reporter.
It may be noted that the treatment of similar eases in terms of election of remedies occurred when there was an identity of parties. See Smith v. Port Huron Gas & Electric Co. (1922), 217 Mich 519 (21 NCCA 401), decided before the amendment to section 15 of part 3 of PA 1912 (1st Ex Sess), No 10, by PA 1952, No 155 (CLS 1961, § 413.15 [Stat Ann 1960 Rev § 17.189]).
For statutory provisions relative to transfer of powers of the industrial accident board, here referred to, see CLS 1961, § 408.9, as amended by PA 1965, No 139 (Stat Ann 1965 Cum Supp '§ 17.6 [15]), CLS 1961, § 408.10 (Stat Ann 1960 Rev §17.6[16]); and PA 1965, No -380, § 378 (CL 1948, § 16.478- (Stat Ann 1965 Cum Supp § 3.29[378]). — Reporter. | [
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Sherwood, J.
The townships of "Wexford, Hanover, Springville and Antioch, in the county of Wexford, were laid off and organized as originally surveyed, containing thirty-six sections each. These townships all corner with each other. The information in this case shows that some time previous to the 28th day of May, 1879, the board of super visors of said county assumed to-create a new township, consisting of a section taken from each of the townships above named, all cornering with each other. The new township was called Sherman. The Legislature passed an act which was approved on the 28th day of May, 1879, discontinuing the township of Sherman, and attaching the sections composing the same to the several townships from which they were taken. On the 21st of August, 1879, seven days before the act above mentioned took effect, the board of supervisors Assumed to organize another township in said county, and took action by which they constituted the east two sections ■of the town of Sherman, as created by them, and the next two sections lying east of those, a township under the name of the township of Concord, and by resolution an election was ordered to be held on the 8th of September following, at which township officers were chosen; and their successors, who are the respondents in this case, claim to exercise the functions of the several offices in said township.
The information further avers that the board of supervisors of said county, since the pretended organization of the said township of Concord, have never recognized its organization, or permitted the person elected as its supervisor to take a seat in their board or participate in its proceedings; that the organization of said township is illegal and void; that the meeting of the board of supervisors at which the pretended organization of said township took place was not properly or lawfully called ; that no lawful petition or application was ever made to said board asking for the organization of said township, and that no legal notice of the pendency of any such petition before the board -was ever given, posted or published ; and that the organization of said township was for a fraudulent purpose, in violation of the act of the Legislature above referred to, and without any lawful authority whatever.
The respondents filed their plea, and deny the usurpation charged in the information; claim the organization of the township of Concord to be regular and legal; that the refusal of the board of supervisors to admit the supervisor of Con cord to a seat in their body, and participation in their proceedings, was illegal; that the board of county canvassers recognized the legal existence of said township by canvassing-the votes given in the same for State officers in 1880 and 1882, and that by such acts, and long acquiescence, the public-are estopped from questioning the legality of the organization of the township; that the township has about three hundred residents, and that they are satisfied with the organization ; that the same was necessary to protect and subserve the interests of the inhabitants of the township, which will be best promoted by retaining the organization; and that the object was not to defeat the action of the Legislature.
Accompanying the plea is a copy of the proceedings of the board of supervisors taken in organizing the township. To the plea filed a general demurrer was interposed, and upon the issue thus made the proceeding is before "us for final disposition. The allegations in the information and the statement of facts in the plea do not materially differ, except in the conclusions of the parties resulting from the facts stated. The proceedings in this case, while purporting to be only to ascertain by what authority the respondents hold the several offices whose franchises they assume to exercise, is really to-ascertain and determine the legal existence of the said township of Concord. The proceedings therefore involve questions, of public importance, requiring careful consideration lest the interests of the public as well as those of the respondents be jeoparded.
Two points are chiefly relied upon by the Attorney General upon the issue made in the case, to sustain the information : first, that the action of the board of supervisors in organizing the township of Concord was in conflict with art Act of the Legislature, being No. 394 of the Local Acts of 18^9 ; second, that the application for and other proceedings liad to organize said township on the part of said board were so irregular as to be illegal and void.
The political divisions of the State are counties, townships, cities and villages. Section 2 of article 10 of the Constitution provides that “No organized county shall ever be reduced by the organization of new counties to less than sixteen townships, as surveyed by the United States, unless in pursuance of law a majority of electors residing in each county to be affected thereby shall so decide. The Legislature may organize any city into a separate county when it has attained a population of twenty thousand inhabitants, without reference to geographical extent, when a majority of the electors of a county in which such city may be situated, voting thereon, shall be in favor of a separate organization.” Section 6 of the same article is as follows: “ A board of supervisors, consisting of one from each organized township, shalí be established in each county, with such powers as shall be prescribed by law.” Section 11 of said article also provides that “ The board of supervisors of each organized county may provide for laying out highways, constructing bridges and organizing townships, under such restrictions and limitations as shall be prescribed by law.” From these sections, we think, it clearly appears (1st) that the territorial extent of townships to be organized into counties should correspond with the original government survey thereof, unless the Legislature otherwise provides ;• and in case such provision is made, the electors residing in each county to be affected thereby are to determine the question; (2nd) that the board of supervisors have such powers only as the Legislature may confer upon it, except that it may organize a township under such restrictions and regulations as the Legislature'shall prescribe.
The Legislature in 1867 prescribed certain restrictions and regulations applicable in such cases, and they are contained in Flow. Stat. §§ 486, 487. Perhaps, however, there may be some question whether the Legislature can confer upon the board of supervisors the power' to change the territorial limits of a township. Under these restrictions and regulations undoubtedly the power is conferred by the Constitution upon the board of supervisors to make the organization of a township, provided the provisions of the. statute are strictly complied with in so doing and the Legislature has passed no subsequent statute contravening the law under which the board is required to proceed. This brings us directly to the con sideration of the first point relied upon by the Attorney General: Was the action of the board in this case (presuming such action was regular) in conflict with the Act of the Legislature, No. 394, heretofore referred to? There can be no question but that the Legislature.possesses the power to make such political divisions of the territory embraced within the State as it may choose, and in organizing a township it may or may not authorize the board of supervisors to act as it may deem best; but in conferring such authority upon the board, it does not thereby deprive itself of its original sovereign power or the right to exercise it in organizing townships whenever the best interests of the people may require such action. The absolute, uncontrolled sovereign power of legislation, except as limited by the Constitution of the United States and of this State, rests in the Legislature.
By the Constitution the Legislature may confer upon the board of supervisors powers of local legislative character, (art. iv, sec., 38), and when such power has been conferred, or the board has been authorized to exercise such powers under art. x, sec. 11, of the Constitution, such power and such authority may be suspended or entirely revoked in any particular instance, at any time the Legislature may see fit; and this may be done by any such action of the Legislature as must be deemed wholly inconsistent with the action of the .board, as well as by direct' legislation. Such seems to be just what was done in this case. The local act of the Legislature could hot be carried into effect if the action of the board of supervisors was valid. The one must necessarily suspersede the other, and when there is such a conflict the act of the sovereign power is superior and must prevail. School-dist. No. 13 v. Dean 17 Mich. 223. This disposes of the first point.
It is hardly necessary to discuss the question further. Still we think it not difficult to sustain the second point from the record, were it important. It is claimed by the respondents that the long acquiescence in the action of the board estops the State from taking this proceeding. This cannot be, so long as the board possessed no power to organize a township in the territory mentioned at the time it attempted so to do. Regular proceedings in such a case would not give the township a legal existence; therefore the action of the board furnished no foundation for the estoppel claimed. We think that the supposed township of Concord has no legal existence, and that the defendants are guilty of the usurpation charged in the information.
Judgment of ouster will therefore be entered against said •defendants, and the Attorney General will be allowed to> recover costs.
Campbell and Champlin, JJ. concurred.
Cooley, C. J. concurred in the result. | [
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Champlin, J.
The defendant is a corporation formed by a consolidation of the Toledo & Ann Arbor Railroad Company with the Toledo, Ann Arbor & Northeastern Railway Company. Herman G. Viets was killed while in the employ of the Toledo & Ann Arbor Railroad Company as a brakeman, previous to the consolidation. The claim made by the plaintiff, as presented to this Court, is as follows : “ That the plaintiff’s intestate was a boy 18-£ years old, without experience in coupling cars, entirely unacquainted with the danger attending .such work, large of his age, clumsy and slow in his perceptive faculties; and that on or about the 7th of December, 1878, the Toledo & Ann Arbor Railway Company {which has since been consolidated with another railway, making the defendant), through its conductor, John Garland, hired the plaintiff’s intestate, and put him onto one of its freight trains going north through Dundee towards Ann Arbor, and sent him to using the brakes and coupling ears on the freight train, the most hazardous work known to railway employees; that they did this without his parents’ knowledge and without instructing him how to perform his duties and to avoid dangers, or in any manner pointing out to him the danger attending the work he was sent to perform, and by reason of this neglect on the part of the company he was killed. It is claimed by the plaintiff that he went upon the train at Garland’s request on the morning of the 7th of December, at Dundee crossing, without doing any coupling. The train ran to Azalia, the first station north of Dundee, on defendant’s road, where the conductor sent young Yiets to make the rear coupling, while himself, the engineer and the other brakeman proceeded to ‘ kick ’ back cars for young Yiets to couple, and that while doing this work, in some inexplicable manner he got between the cars and was crushed to death.”
This is the burden of the first count in the declaration, the second count having been abandoned. The third count charges that the plaintiff’s intestate was injured, from which death resulted, by the negligence and incompetency of one Harris McDaniels, the engineer in charge of the engine at the time; and that the company was negligent in keeping him in their employ after it knew, or ought to have known, by the exercise of reasonable diligence, that he was careless and incompetent.
At the conclusion of the testimony the court charged the jury that the plaintiff had failed to prove such negligence as warranted them to render a verdict for the plaintiff, and directed a verdict for defendant; and the only question to be considered here is whether this instruction is correct.
The bill of exceptions embraces the whole testimony given on the trial. From this testimony it appears that the deceased was between eighteen and nineteen years of age at tlie time of his death; that he had worked on the railroad in different capacities, such as wiping engines, spiking and doing work in constructing the road, and had, with his father, worked on.a gravel train as shoveler. He had also worked for two or three weeks as a fireman on an engine. The plaintiff, who is the father of the deceased, testified that he never applied for a position for him upon the road, but that he made no objection to his firing or working on the gravel train; that he was five feet four inches in height, and weighed about 135 or 140 pounds ; that he was good to mind, but slow to learn and understand — slow to comprehend complicated matters; that so far as he knew, he had the use of liis arms and legs and body as perfectly and freely as any young man ; and that there was no bodily infirmity that he knew of. It appears from the testimony that the deceased had, while employed by the railroad company previous to the hiring as brakeman, performed the duty of braking and coupling cars. The conductor says that he had been on and off with him on the freight train two or three weeks; had ridden up and down the road with him, helped to unload freight, coupled cars on the side track or on the main track whenever he wanted to. He wanted a position as brakeman, and was there practicing; one of the brakemen was away and Yiets took his place.
Yiets was hired as a brakeman on the morning of the accident, which occurred at a station called Azalia while in the-performance of his duty as brakeman in coupling cars. No-person saw the accident, and the only evidence of the manner in which it happened is the testimony of Carland, the conductor, who states that “ Yiets said he put the link in the draw-bar and dropped the pin, and reached down to get it, and as he was straightening up it caught him between the draw-bars.” Carland also testifies that when he was' told that Yiets was hurt he went around the train to where he was and found him lying on his right side, and his face towards the track to the east, and his feet diagonally across, and said to him : “ Herman, are you hurt much ?” He said: “ Oh, Jack, I am killed!” and lie said: “ There is no one to blame but myself.” The station agent also heard him make the same remark.
There is no evidence in the case tending to prove any carelessness or negligence on the part of the engineer or conductor which caused the accident. It is in evidence that the car which Yiets was attempting to couple at the time he was killed was found to be about four feet from the car of the train to which the coupling was to be made, and that the distance was caused by the rebound of the car after it had struck Yiets, and evidence was introduced to show that to cause sucli rebound the engine must have been moving at the rate of ten to fifteen miles an hour. Plaintiff’s own testimony, however, was positive and direct upon the point that the speed of the engine at the time of the accident was about two or three miles an hour, and was the speed used in coupling cars. Having shown this fact, the testimony of experts, based upon the rebound of four feet, is entitled to no weight as tending to prove the speed of the engine to be ten to fifteen miles an hour. It is evident that there must be numerous causes besides the speed of the car which might produce such rebound; such as the grade at that point, the weight of the impinging cars, and the strength and elasticity of the springs behind the draw-bars, none of which facts were placed before the experts to enable them to form a correct Opinion.
¥e are satisfied, from the evidence disclosed in this record, that the deceased was a youth of ordinary intelligence, and that he was fully aware of the dangerous business of coupling cars, and not entirely inexperienced, and that his death was not caused by any negligence or carelessness of defendant’s employees in charge of the train.
The record discloses no error and the judgment is affirmed.
The other Justices concurred. | [
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Campbell, J.
Plaintiff sued, defendant as maker of a promissory note for $130, claimed to have been made by defendant to the order of one George D. Johnson, and endorsed with that name, and purchased by plaintiff from a person supposed to be the payee.
The defense was a denial that defendant ever executed and delivered any such instrument. The facts as shown by defendant to the satisfaction of the jury were that at the date of the pretended note a man calling himself George D. Johnson came to defendant’s farm and proposed to insure his new barn on favorable terms, including insurance against damage from cyclones, which had recently visited that neighborhood. After considerable talk they agreed that defendant should pay $12.50 for a policy of $1000 for a term of years, and he gave his note at ninety days for this amount. Johnson prepared what he said was an application to be sent to the company and signed by defendant. Defendant undertook to read it, but from poor sight was unable to do so, and his daughter was also unable. Johnson thereupon read the paper to defendant. It was of foolscap size and as read was such an application, and contained no language in any way resembling a promissory note or undertaking to pay money.
The note bears date August 13, 1883, and as presented on trial is in the usual form and size of a promissory note in common use, with subjoined waiver of protest and exemptions and agreement for interest after maturity and payment of attorney fees. This note was purchased by plaintiff, September 7, 1883, of a person who called himself George D. Johnson. There is no testimony which identifies him with the person with whom defendant dealt, either by personal description, or in any other legal way, with any accu racy. He was not identified to the'bank officers except by his own statements, and he was not produced on the trial.
■If defendant’s story is true, and the jury believed it, the note was either an entire forgery, or procured by the substitution of one paper for another, either by actual change, or by misreading.
The charge of the court having been very strong in favor of plaintiff upon all issues of negligence and having treated plaintiff as a bona fide purchaser, it is admitted by counsel that the judgment cannot be disturbed unless, as against a bona fide purchaser, the law itself requires a more careful scrutiny than was made here, and imposed upon defendant an absolute duty to inform himself correctly of the contents of the paper which he signed. It is conceded that the case comes within our former decisions, unless it can be distinguished on this ground.
We do not think this case differs at all in principle from Gibbs v. Linabury 22 Mich. 479 and Anderson v. Walter 34 Mich. 113. The defense if made out is that the note is not defendant’s note at all, and was never executed by him. Sign ing a paper which a person has no reason to suppose is a note, and where he is in no fault for his ignorance, is no execution. The document thus palmed off on him is a forgery and not a genuine instrument. As intimated in those cases, nothing but real negligence or fault can make a person liable for a wrong use of his signature. It is a matter of every-day practice for persons to trust to the reading by others of documents which they sign, and this practice is necessary for the convenient transaction of business. It would do more harm than good to compel all persons who sign papers to trust to their own reading, which in many cases would be impracticable. While the negotiability of commercial paper should not be unduly hampered, it is not desirable to encourage dealing with entire strangers and irresponsible persons on the faith that every genuine signature is binding on its maker in spite of fraud and forgery. It cannot be said that the equities of purchasers are any greater than those of innocent persons who have done nothing negligently or unfairly to mislead them. We see no reason to change the views on which this Court has hitherto acted, and we cannot see any new feature in this case. We shall - not therefore discuss the questions presented at large or consider, what is certainly a very serious question here, how far the relation of bona fide purchaser existed.
No other point in the case appears to us material.
The judgment must be affirmed.
The other Justices concurred. | [
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Sherwood, J.
This is an action upon a policy of insurance issued by the defendant to Mark Lyon, March 3, 1883, insuring him for one year against bodily injuries received through external and accidental violence, and made payable, in case of accidental death, to' his mother, the plaintiff. The policy was based upon a written application, and an order upon the Detroit, Grand Haven & Milwaukee Railroad Company, both executed by the insured and bearing even date with the policy. These three instruments taken together, constitute the policy of insurance upon which the rights and obligations of the parties depend.
Mark Lyon, at the time the policy was issued, and thereafter until the time of his death, except when sick, from May 17th to August 20th, was in the employ of the above-mentioned railway company. The premium upon said policy was $27 for the year, and its payment was provided for by Lyon in the following order :
“ Paymaster’s Order for $27. No. 92,746.
To the Detroit, Grand Haven <& Mihoauhee Railroad Company: Please pay to the Travelers’ Insurance Company, of Hartford, Conn., or its authorized agent, the sum of twenty-seven dollars, by installments, as follows :
First installment, 6.75 dollars to be paid and deducted ¡from my wages for the month of March, 1883.
Second installment, 6.75 dollars to be paid and deducted from my wages for the month of April, 1883.
Third installment, 6.75 dollars to be paid and deducted from my wages for the month of May, 1883.
Fourth installment, 6.75 dollars to be paid and deducted from my wages for the month of June, 1883.
The first installment being the premium for two months, the first insurance period under a policy of insurance issued to me by said company, and bearing even date and number herewith; the second installment being the premium for two months, the second insurance period under said policy; the third installment being the premium for three months, the third insurance period under said policy; and the fourth installment being the premium for five months, the fourth insurance period under said policy, — all in accordance with the provisions and conditions of said policy, and my application for the same.
Occupation, brakeman mixed train.”
It was also stipulated by the policy that there should “be no liability under this policy for any claim by reason of personal injuries, as aforesaid, occurring in either of the said insurance periods for which the respective installments of premium shall not have been actually paid.”
The defendant, after receiving the order, and soon after its date, deposited the same with the railway company, in accordance with a custom existing in such cases between them, and it was the practice of the defendant, early in each month, to send to the railway company a statement of the amount due from the employees of such company by reason of insurance, which the said railway company stopped against the pay of such employees about the middle of the month and paid it over to the defendant.
Mark Lyon had money due him from the railway company for wages in each of the months of March, April and May, in excess of the amount falling due on said order. The defendant rendered its statement of the amount due on the order to the Railway Company on the first of April, May, June, July and August, and the first two payments were made by the Railway Company to the defendant, being from the March and April wages of Mark Lyon. These sums paid for insurance to July 3d, at noon. The Railway Company did not pay the third installment from the May wages, though it had money in its hands, subject to said order, to the amount of $23.42.
Mark Lyon was accidentally killed September 26th, seven days before the expiration of the third insurance period, while at work for the Railway Company on a freight and logging train as a brakeman. He had no wages due him for June, and was paid his May wages by the station agent at St. Johns, July 6th, according to his time kept by the Railway Company, three days after the commencement of the third insurance period. The defendant did not notify Mark Lyon of the non-payment of the third installment; did not cancel the policy nor return the order to him; but rendered statement of back premiums to the Railway Company in July and August, and at the time of his death the Railway Company owed Lyon for wages $40.
One of the clauses of the contract contained in the application is to the effect that, “for any injury received by exposure to accidents, risks or occupation classified as more hazardous than the occupation or hazards against which the insurance is taken, the insured shall be entitled to recover only such amount as the premium paid by the insured would purchase, at the rates fixed by the company for such increased hazard.”
So far as the finding or record shows, the first information the plaintiff received after the death of the insured, that the insurance company claimed that they were not liable under the policy, was on the 6th day of October, when she wrote Mr. Thompson, the State agent at Detroit, asking what- proofs of death would be required, and was informed by letter that the policy was not in force at the time of the death of the insured, because of the non-payment of the premium.
The foregoing is the substance of the facts as they are found by the court and appear in the record.
The main defense at the trial was that at the time Lyon received his injuries the contract of insurance, by its own terms, had expired and become null and void by reason of the non-payment of the premium. The plaintiff insisted that the premium for the third insurance period had been paid ; that the defendant waived payment and forfeiture of the policy by its July and August calls upon the Railway Company ; that the defendant retained the order and did not notify Mark Lyon of its non-payment, and did not disclose a forfeiture of the policy.
The circuit judge held as matter of law, from the facts as found, that the premium was not paid for the third period mentioned in the policy, commencing July 3d and ending October 3d, and by reason thereof the contract of insurance was rendered of no effect, and that the defendant had not waived its right to make claim of non-liability, and rendered judgment for defendant.
Upon the facts disclosed by the record in this case, I fail to come to the conclusions arrived at by the circuit judge. I think the facts in the case show clearly a transfer of the premium for the third period to the Insurance Company, and Mark Lyon received the consideration therefor in the policy issued to him. The assignment is in writing, and independent of the order given on the Railway Company for the amount. The order is but a notice to the Railway Company of the transfer, and voucher for it when paid. The assignment is complete without it, and the Insurance Company could, when the installment became due in May, have brought suit for it against the Railway Company. The assignment, though made at the time the policy issued, did not take effect until the money for the premium for the particular period was earned by the insured. The May installment was earned and in the hands of the Railway Company, in accord anee with its rules and customs in dealing with the defendant in such cases, and its practice in this particular case, when the same became due. Hall v. Steel 68 Ill. 231; Mandeville v. Welch 5 Wheat. 286; 23 Am. Law Reg. (note to Merchants’ Nat. Bank v. Coates) 189. It is true, non-payment of the premium for any one of the periods suspends the enforcement of the policy; but the insured, in a case like this, when he has provided for the payment when due, and the premium made is in the possession of the defendant or under its control, payment will be deemed tp have been made, until the insured is notified by the defendant to the contrary. A failure of the Bailway Company to make payment when the amount assigned became due will not be presumed.
It is claimed by plaintiff’s counsel, and I think with much force, that under the facts and findings in the case the defendant waived the legal effect of non-payment of the preminm by the terms of the contract, by the course it pursued v ith the order and claim transferred to it by the insured for payment. Baker v. Union Life Ins. Co. 6 Abb. Pr. (N. S.) 144; 1 Big. L. & A. Ins. Cas. 595. A forfeiture for nonpayment of premium is inserted in the contract for the benefit of the insurer. It may be waived by the company. A forfeiture is not favored either at law or in equity, and a provision for it in a contract will be strictly construdd, and courts will find a waiver upon slight evidence, when the equity of the claim made, as in this case, is, under the contract, in favor of the insured. Young v. Life Ins. Co. 4 Big. L. & A. Ins. Cas. 1; Miller v. Brooklyn Ins Co. 2 Big. L. & A. Ins. Cas. 35; Bouton v. Amer. M. L. Ins. Co. 25 Conn. 542; Phœnix Ins. Co. v. Lansing 15 Neb. 494; Crane v. Dwyer 9 Mich. 350; White v. Port Huron & Milwaukee Ry. Co. 13 Mich. 356; Westchester F. Ins. Co. v. Earle 33 Mich. 143; Pulford v. Fire Dept. of Detroit 31 Mich. 458.
While I think the plaintiff’s case might be safely rested upon the ground of waiver I prefer placing it upon the ground first stated, viz.: That payment of the premium will be presumed and deemed to have been made out of the fund provided and assigned to the company for that purpose, until notice of non-payment is given to the insured.
It is also claimed by plaintiff’s' counsel that defendant, in making its defense in this case, should have been confined to the ground on which it first placed its right to immunity— the State agent’s letter to the plaintiff, and therefore the ■company could not claim the benefit given in the policy of reducing the claim of plaintiff to the sum allowed in case of death of the insured while he occupied a place in the Railway Company’s employment, of increased hazard over the one he occupied, mentioned in the policy, when he was insured.
I regard this position, however, as untenable. There would be some force in the suggestion if the plaintiff, in her letter advising the State agent of the death of the insured, had stated that when killed, he occupied the place of increased risk. This she did not do, and of course the reply of the agent had reference only to the statement made in plaintiff’s communication. The plaintiff in her right to recover will therefore be confined to the class of risk the position of the insured placed him in when killed in the Railway Company’s service.
The judgment must be reversed, and a judgment entered in this Court in favor of the plaintiff and against the defendant for the sum of $270, less $13.50, being the premium remaining unpaid, with costs of both courts.
The other Justices concurred. | [
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Sherwood, J.
This is an action of assumpsit, brought by the holder and owner of a promissory note against the maker and indorser. The declaration is special against the indorser, and also contains the common counts. Defendant Noble alone appears and defends. Under the general issue he gave notice that he would show on the trial that the note was given to secure the antecedent debt of Frost alone, and upon no other consideration ; that he had not indorsed the note when it was given by Frost to the plaintiff, nor had he been requested to, and had no knowledge of the making or delivery of the note; that some time after the same had been delivered to the plaintiff, at his request, he, defendant, indorsed the note without consideration from any one, and that the note and indorsement were without consideration other than the pre-existing indebtedness of Frost to plaintiff; that there was no agreement with either of the parties that he, Noble, would indorse the note ; and that his admission of liability on the note, contained in the indorsement by him and Frost, was obtained at the request of the plaintiff and without any consideration to defendant Noble.
The cause was tried at the "Wayne circuit before a jury, and a verdict for plaintiff directed by the circuit judge.
The note and indorsements are as follows :
“$2000. Detroit, Mich., June 15, 1870.
Sixty days after date, I promise to pay to the order of Charles W. Noble two thousand dollars, at the First National Bank of Detroit.
Yalue received, with interest at the rate of ten per cent.
Geo. S. Frost.
(Indorsed) Charles W. Noble.”
Also indorsed on the back of the note is the following:
“ For value received, we admit our liability upon the within note, and hereby promise to pay the amount due thereon, principal and interest, on demand, less any payment which should be applied thereon.
Geo. S. Frost.
Charles W. Noble.
Dated August 11, 1816.”
It appears from the testimony undisputed that the defendants are brothers-in-law, and were partners in business when the note and indorsement and undertaking therein appearing were made; that on that day the plaintiff held the defendant Frost’s note, indorsed by the defendant Noble, due one day after date, and that said note was taken up, and the note sued on was given in its stead. The defendant Noble further says that he would not have indorsed the second note unless the plaintiff had canceled the other; that he and Frost signed their indorsement of liability and the undertaking therein contained at the request of plaintiff’s agent, to prevent the Statute of Limitations running against the note. This is the defendants’ testimony, and if it shows a consideration for Noble’s indorsement, then the verdict must stand; if not, the case should have been submitted to the jury.
When the plaintiff had introduced the note and indorsements in evidence, a prima facie case was made for recovery.
Did the evidence subsequently offered by the defendant ■defeat the plaintiff’s prima facie case ? We think it did not. The note was within a few days of being outlawed when the indorsements asked for by plaintiff’s agent were made. The plaintiff himself had previously complained to Noble of Frost’s neglect to pay, and the agent stood in the presence of Noble asking him to do that which was necessary to prevent suit. He proposed to defer payment or suit till plaintiff might return from Europe. The defendant then gave his indorsement, and it would be doing violence to reasonable intendment to say'that he did not do so upon the conditions and terms proposed, and the forbearance must be held a sufficient consideration for the indorsement.
There are other grounds upon which, perhaps, the liability of Noble might be safely rested, had the case gone to the jury, but we are not at liberty to consider them upon this record. The plaintiff can only rely upon the undisputed testimony. There seems to be no question but that Frost desired that Noble should sign the indorsement, and in making it Noble not only expressly admitted'his liability but promised to pay the note. He cannot now be heard to say he never made such promise.
The judgment must be affirmed.
The other Justices concurred. | [
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Campbell, J.
This action is brought to recover against defendants the damages which plaintiff claims to have suffered by reason of being induced by false pretenses to purchase certain notes against one Jonathan Crapser, which are-asserted to be worthless. He recovered below, and defendants bring error. The record is made voluminous by the introduction of a great deal of testimony concerning the-dealings of third persons who are not parties to this suit, or-referred to in the pleadings, as well as concerning the alteration of the notes, which if made fraudulently might have of itself furnished a distinct and sufficient ground of recovery,, but which is not set up in the declaration.
As many of the assignments of error relate to the insufficiency of the declaration to warrant a large portion of the testimony, it will be necessary to consider it. It was objected on the argument that this consideration would not be warranted without a demurrer. But if no sufficient cause of action is set up, the declaration must necessarily be fatally defective. And in any case it is permissible to object to testimony which is not within the averments even of a good pleading.
The cause of action being the successful use of false pretenses to get plaintiff to pay for the notes passed off on him, the declaration must, in order to support such a judgment as was rendered, show — -first, what pretenses were made; second, that they were made by the defendants in person or by authority and design; third, that they were material ; fourth, that they were false and fraudulent and deceived complainant; and fifth, what defendants obtained by them. All of these are necessary conditions of recovery. It is equally clear that nothing outside of these requisites can form any part of the issue, whatever may be its bearing as circumstantial evidence.'
The declaration contains first, a statement that defendants owned three past-due notes against Crapser for $2193.73, and Crapser gave the defendants Armstrong, at their request, small notes in their stead, and at the time informed them that he could not, if pressed, pay twenty-five cents on the dollar of his debts; that the Armstrongs knew from his statements and other information, that he could not pay the notes, and that they were worthless, and they had the notes made in small amounts for the purpose of more easily disposing of them, and defrauding persons to whom they might be able to sell them, and afterwards did fraudulently dispose of a large number of them to persons in Genesee county, acting in the disposal through defendant Luman Case and other agents.
Stopping at this point, it is evident from the course of the trial that this turning of large notes into small was allowed considerable weight during the trial. But it is not .competent to rely on any lawful action as a basis of recovery, and there is a fallacious course of reasoning relied on to support its use in this case. It was entirely lawful for the Armstrongs to have their large notes converted into small ones, and it concerned no one else why they did it, unless the conversion itself was a means of fraud, which it certainly could not be. The sale of each note, large or small, must depend entirely on its own circumstances, and the sale to one man, honest or fraudulent, could not affect any other sale which had no connection with it and was not induced by it. Mr. Parker, when he bought the notes which he purchased, could not hold defendants responsible for any fraud which did not ■operate on his own mind and govern his action, and the size ■of the notes or their origin if valid, as they confessedly were valid, could not be considered as important. The admission ■of evidence of the several sales of notes to other persons, and in some instances at second-hand and by strangers to the pleadings, went much beyond any possible warrant. As the notes were genuine and good against Crapser, it is not plain what room there was for the doctrine of proof of scienter by such dealings. The fraud, if committed, was not in selling genuine notes, but in deceiving Parker by representations made to him alone. He had no concern in any other.
Proceeding with the declaration, we find it averred that Case, acting in concert with and with knowledge and consent ■of the Armstrongs, by means of the fraudulent premises before stated, and by means of certain false and fraudulent representations then and there made on October 19, 1883, to wit, by telling Parker that Crapser was responsible, and that the said “Armstrong” said he was worth from $25,000 to ■$30,000, and “by means of other false and fraudulent actions ■and representations ” induced Parker to purchase one of the notes of $75; and that on November 6th “ by means of the fraudulent premises hereinbefore stated, and by means of ■certain other false and fraudulent representations then and there made, and by means of the false and fraudulent statements” made on the 19th of October, induced plaintiff on the 6th of November, to buy another note of $100, and on the 7th of November, a further one of $200.
. This constitutes all the substance of the declaration. The ¡second count is not quite so specific as the first.
This declaration is fatally defective — -first, in not containing averments denying the truth of the representations specifically set out; and second, in not showing that the fraud was caused by these representations. It is not averred anywhere that these alone would have induced the purchase, and the testimony very clearly shows that they did not. It will not do in a declaration to aver fraudulent representations ■and not aver what they were. The defendant is entitled to know what is relied on, and the plaintiff cannot make vague charges and wait till the trial to inform defendants of them for the first time. It is also defective in giving no means of identifying the notes purchased.
It appears from the testimony that these defects were not. unimportant in fact. It is very questionable whether Parker’s testimony concerning the October purchase shows that he bought in reliance on Case’s statements wholly, if at all; and the proof does not come up to the averments so far as made. It shows affirmatively that some of the statements averred to have been made in October were not then made. And not only is there a difference between saying what a man is worth, and what he is rated at in another place (which was the representation sworn to, and which was true in fact, and not false), but in the November dealing some very important, statements of Case are given, which, if true, would have had much more effect on any one’s mind than what are set out in the declaration.
We do not think it necessary to go further. The record contains a great deal of testimony which, in our view, has no legitimate bearing on the issues made, and the effect of which must have been prejudicial. There is no reason why a person claiming to be defrauded cannot tell how it was done, and what he relied on. The danger in all such cases is that a defendant may be called on to meet what he is not charged withr and may be convicted on testimony which does not establish the charge which he comes prepared to meet. While there should be fair treatment of the plaintiff’s case, yet it is he that makes it and he should use some care to make it justly.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Sherwood, J.
In the month of August, 1883, the commissioner of highways of the township of Thompson, in the county of Schoolcraft, laid out and established a highway on the quarter line running east and west through section 31 in said township, and as such commissioner, at the instance and request of the defendant, and for certain compensation, employed him to make a survey of, locate and properly designate the said quarter line, it being the center line of the highway, to enable the plaintiff to open and improve the same. The defendant entered upon the business of making the survey, and so negligently and unskillfully performed the work that he failed to ascertain or designate said quarter line by his survey, thus rendering it necessary to make a new survey, and abandon a large amount of rdad constructed at large expense on the line designated by the defendant before his mistake had been ascertained, to the great damage of the plaintiff, to recover which he brought this action on the case.
The defendant interposed a demurrer to the plaintiff’s declaration, which was overruled by the circuit judge, and the defendant brings the case into this Court, alleging error upon that ruling.
The «demurrer was special, and the causes relied on were as follows: “ (3) The said declaration, and the cause of - action alleged therein, are double and not single ; (4) the said action is brought against said defendant as county surveyor, and yet said declaration alleges a cause of action against said defendant individually; (5) the said declaration alleges no sufficient cause of action ; (6) it does not appear in and by said declaration, that the plaintiff was authorized by law to lay out and establish the highway described therein; (7) it does not appear in and by said declaration, that said plaintiff was authorized by law to let any contract for the construction of said highway.”
We do not think the demurrer is well taken. There is no question made but that the plaintiff has the right to maintain the suit. The declaration avers the laying out and establishing the highway in accordance with the statute upon the quarter line; the employment of the defendant to survey, ascertain and designate the line pursuant to the statutory requirement; that under the employment it was the defendant’s duty to perform the work properly, skillfully and correctly, and that he failed and neglected so to do, and in consequence of the neglect the plaintiff was damaged, and states the items of damage; this was sufficient, and if these averments were properly sustained by proofs would entitle the plaintiff to recover. The plaintiff was not required to state the proofs in his declaration. The mention of the defendant as county surveyor was of no significance. The duty averred was that arising from the employment of the defendant, and not from the office he held ; but under either he would be required to do the work undertaken properly and correctly.
We think the declaration clearly apprises the defendant of the nature and extent of the claim made against him. Whether he was a professional or official surveyor, or represented himself as such, his undertaking was that he should bring to the work the necessary knowledge and skill to perform the same properly and correctly; and if he failed so to do, and the employer sustained damage in consequence, of such failure, the plaintiff will be entitled to recover.
The judgment must be reversed, and the demurrer overruled with leave to defendant to plead to the declaration.
The other Justices concurred. | [
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Campbell, J.
McBrian brought replevin in March, 1883, for a quantity of logs, and of staves made from logs wrong fully cut on his land by defendant in the month previous. The sheriff returned the writ without seizure of property. On the trial there was evidence tending to show that defendant had staves in possession which plaintiff and the sheriff could not identify as to their origin. It also appeared, that defendant offered to let the sheriff take a lot of logs which were at his mill, and which defendant said were from the-land in question, but plaintiff did not regard them, where they were, as worth removing.
On the trial the plaintiff made out a clear case of the-wrongful appropriation of his timber, and to this extent the. court sustained his claim. But the jury were told — -first? that the action must fail as to all staves and property not in defendant’s own possession when the writ issued; and second, that plaintiff could not recover for the logs which were not levied on when pointed out as before mentioned and the court refused to give various charges asked by plaintiff.
The sheriff’s return was simply that he could not find property. There was no denial that the defendant had before-the writ issued been in wrongful possession of the whole of it.
By Comp. L. § 6738 (How. Stat. § 8327), it is provided that if the property specified “ shall not be found, or shall not be delivered to the plaintiff,” he may proceed to recover the same or its value. And by a previous section (6736). it is provided that if plaintiff does not give bond the property shall, if taken, be returned to the person from whom it was taken.
So far as the logs in question are concerned we can see no» reason why it can make any substantial difference whether the plaintiff declines to take the property before or after the sheriff serves the writ. He is not bound to bond it. unless he chooses, and his failure to do so does not arrest his-action. There may be very good reasons why inability to-get all the property demanded may render it onerous and rmprofitable to take a part of it. The statute imposes no» such condition as a measure of right. It may have been true that the small parcel of logs pointed out by defendant were hot really the logs which he ■ took from plaintiff, and it may also be true that where they then were it would not be profitable to remove them. It is certain that plaintiff need not have accepted and bonded them, and that defendant’s position was not prejudiced by the sheriff’s omission to take them, any more than it would have been by a seizure and return. ■ We think there was error in preventing a recovery for these logs.
Upon the question whether recovery could be had for staves which may not then have been in defendant’s hands, resort must be had to the character of the action itself under our statute. ' There is no doubt of its being chiefly valuable as a possessory action, although, as' already seen, the plaintiff is not bound to make it so in all cases. There is nothing in the language of the statute itself which confines recovery to property actually held by defendant at the date of the writ. If such is the rule, it must come from inference, and belong to the nature of the action.
By section 1 of the chapter of the Compiled Laws on Replevin, it is declared : “ Whenever any goods or chattels shall have been unlawfully taken or unlawfully detained, an action of replevin may be brought for the recovery of the damages sustained by such unlawful taking or detention, except in the cases hereinafter excepted.” [How. Stat. § 8315.]
This language, taken alone, is very broad, and would cover any possession once obtained by tortiotis taking or by tortious detention. The. question is whether a defendant is exonerated from liability for such wrongful possession by turning it over to some one else. In most cases a cause of action cannot be destroyed by the act of the wrong-doer alone. And if a right to bring replevin can be destroyed by the defendant, without the fault or even the knowledge of the plaintiff, the case would certainly be exceptional. It would not be a difficult matter, by a series of concealed transfers, to cut him off entirely from this action.
At common law a return that the property had been removed from the jurisdiction was no answer to the plaintiff; but he had a right to a writ to take in withernam by way of reprisal other property of the defendant to secure himself. In New York, whore no part of the property was found, the statutes gave a capias to seize the body of the defendant, instead of a writ m withernam. 2 N. Y. Rev. Stat. p. 439, § 64. In case of partial seizure, judgment for damages was recoverable for what is not found, whether in defendant’s possession or not. It is explained in Show v. Roy 22 Wend. 602, that under that statute plaintiff, if he could not find the whole, was not bound to accept a part, and might have his capias for the entirety. There is nothing to indicate that it made any difference whether the removal of the goods was by transfer to third persons or by the defendant himself. His responsibility arose whenever he had once been in wrongful control and made any wrongful disposal whatever of the property. It is said in Eitzherbert N. B. 69 H. that where the lord has wrongfully distrained cattle, even their returning back to the tenant will not deprive him of' his right to bring replevin to recover damages for the distress.
In reporting their work to the legislature the New York revisers declared it was their purpose to so extend the action as to make it a substitute for detinue, and concurrent with both trespass and trover. Our own statute is' as broad in terms as the New York statute, and while not in all respects the same, does not seem to differ in substance in this respect. The action of detinue was not prevented by defendant’s quitting possession before action. Com. Dig. “ Detinue B.” In Nichols v. Michael 23 N. Y. 264, it was held that the code substitute for replevin lies in spite of any wrongful. transfer by defendant. And reference is there had to English cases which fully sustain the same view, as well as to some earlier New York cases. And Selden, J., following the reasoning of the English cases, shows that one who has by his own wrong placed property where it is detained from plaintiff may justly be held to have contributed to that detention. And it might be further suggested that it cannot always be possible for the plaintiff to know whether defendant has parted with possession, and he might be subjected to costs and delays in redress which, he is in no way in fault for thus incurring.
The defendant can never be any worse off by reason of ■being held for damages in this form of action than in trespass or trover. There is therefore no occasion to lean against the construction which plaintiff- claims, and which he is supported in claiming by good authority. He can only make ■out his cáse by such proofs as. would be available in any other form of action, and he gets no larger or better judgment, so far as damages are Concerned, in the one case than in the -other.
"We think the court erred in both of the particulars referred to. The judgment must be
Reversed and a new trial granted.
The other Justices concurred. | [
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Ohamplin, J.
This was a bill to foreclose a mortgage given by the defendants Warren W. and Laura A. Cadwell, who are husband and wife, to complainant, to secure the payment of a money obligation (bond) executed by defendants Warren W. and Marvin S. Cadwell, who are brothers. Mary Cadwell, wife of Marvin S. Cadwell, was brought in as a defendant in possession of a part of the mortgaged premises, and is the only defendant who answered. In brief, her answer claims a homestead in lot one, block seventy-three, Lansing, a part of the mortgaged premises; that she had never parted with her interest therein ; and asks that the bill as to that parcel and as to herself be dismissed.
No proofs were taken, but a stipulation was filed in the cause as follows:
“ It is hereby stipulated and agreed by and between the parties hereto, by their respective solicitors:
First. That the facts as set forth in the bill and answer filed in this cause are true.
Second. That the complainant, at the time the loan was made, had no actual knowledge of the special matter of defense set forth in defendant’s answer.
Third. That the State land-office has never required the signature of the wife to the assignment of school-land certificates, and has never inquired whether or not school lands transfen-ed by such assignments have been used as homesteads, but patents have issued upon the sole assignment of the party holding the certificate of purchase.
The admitted facts show an actual occupancy of the premises in question by Marvin S. and Mary Cadwell and their family for a period of thirteen years previous to the giving of the mortgage to complainant. It is now more than eighteen years that it has been their home. The premises were held under a school-land certificate, part-paid. In 1879, without the knowledge of the wife, the husband, Marvin S. Cadwell, at Lansing, to procure money with which to carry on a lawsuit in Clinton county to which himself and his bro ther Warren W. were parties, assigned his certificate to the brother, furnished him money to pay the balance due the State, and upon payment a patent for the lot in question and other lands conveyed by the mortgagee, was issued to Warren W. Cadwell. It was directly after this that the bond and mortgage were made to complainant, at Detroit. Nothing of this was known to defendant Mary Cadwell, who on the day the mortgage was given, was occupying the premises as she had been doing for years.
After this, the defendant Marvin S. Cadwell deserted his wife, went to Chicago, and filed there a bill for divorce against his wife. This was answered by the wife. It was after hearing that her husband was out of the State, that Mrs. Cadwell began making inquiries as to the property, — when interest would become due to the State, etc.; she then first learned of the assignment and mortgage. The parcel claimed as a homestead is one lot, according to the plat of Lansing, worth with the dwelling-house less than fifteen hundred dollars.
■ The circuit judge was of opinion that defendants Mary and Marvin Cadwell had a homestead interest in the property in dispute, and that as to lot 1, block '73, complainant had acquired no lien by her mortgage. Decree was entered accordingly, and complainant appeals.
Since the case of McKee v. Wilcox 11 Mich. 358, it has been the settled law in this State that a homestead may be claimed inland of which a party is in possession under a contract of purchase. There is no reason why the principles of that case should not apply to a contract of purchase from the State,as well as from an individual. Under these contracts with the State, many advantages are secured which do not pertain to ordinary contracts of purchase from individuals. So long as the interest and taxes are paid, the balance of the principal, due on the purchase, is payable at the holder’s option. It may be levied upon and sold under an execution. Kerchevol v. Wood 3 Mich. 509. It may be mortgaged, and the purchaser at the execution or mortgage sale is deemed the assignee of the contract. How. Stat. §§ 5266, 5269, 5335. The certificate entitles the purchaser to possession, and is sufficient evidence of title to enable the purchaser to maintain trespass or ejectment, and it may be recorded in the same manner as deeds. How. Stat. §§ 5279, 7532. Under the admitted facts, the defendant Mary Cadwell was possessed of a homestead interest in lot 1, block 73, at the time of the transfer of the certificate from Marvin S. to Warren W. Cadwell, and at the time of the execution of the mortgage to complainant. The complainant’s counsel contends that the patent should be sustained because it was issued in accordance with the regular practice of the State land-office. The statute authorizes the surrender of old certificates of purchase where' they cover more than one description, and new ones to be issued for the different parcels when the commissioner of the State land-office is satisfied that no injury to the particular trust fund may be effected thereby. It is no part of his official duty to inquire whether private parties, interested in the lands, will be injured or not by his action. He determines no rights of such parties by his acts. The interests he seeks to protect are those of the State; and when satisfied upon that point, he is authorized to “divide” the certificate. The patent which the Governor is authorized to issue is evidence of title. It cannot cut off private rights, but it conveys the legal title from the State to the patentee. Whoever has a better equitable right may show it in equity. Romain v. Lewis 39 Mich. 233. The patent issued in this case vested the legal title in the land in Warren W. Cadwell, and a bona fide purchaser for value or incumbrancer from him will be protected.
The controversy in this case turns upon the question whether complainant stands in the position of a bona fide incumbrancer. The admitted facts are that she had no actual knowledge of the special matter of defense set forth in defendant’s answer. At the same time it is admitted that at the time she made the loan defendant Mary Cadwell was in the actual possession and occupancy of the lot in dispute as the homestead of herself and husband. In Woodward v. Clark 15 Mich. 104, it was held that a purchaser from a vendor who had sold the land by contract was chargeable with notice of the equities of such contract purchaser, by the fact that he was in possession of the land, which the court said was of itself notice. In Hommel v. Devinney 39 Mich. 522, the defendant claimed to be a bona fide purchaser, and therefore entitled to protection. The court said: “ Complainant was in the actual possession of the premises at the time defendant purchased, and although the deed to complainant -was not then on record, yet defendant could not but have known that the complainant claimed to have some interest in the premises. He should, therefore, have called upon her and ascertained the extent of the interest which she claimed therein, and from what source she derived her title; failing so to do, he is chargeable the same as though he had called upon her and ascertained fully all the facts.” See also Russell v. Sweezey 22 Mich. 235.
The law is too well settled to need any extended citations of authorities, that actual jmssession 0f real estate is notice to purchasers or incumbrancers, of the claim of those in possession. 2 Smith’s Lead. Cas. 180, and authorities cited; 1 Jones on Mortg. §§ 255, 591, 592.
The complainant is chargeable with notice of the homestead rights of defendant Mary Cadwell, and cannot be held to be a bona fide purchaser. Where parties other than the vendor are in the actual possession of premises conveyed, his deed or patent affords no information of the rights of those in possession, and a vendee or mortgagee has no right to presume, from the fact that their vendor or mortgager has the legal title, either that there are no parties in possession claiming adversely, or, if in possession, their rights are cut off by sale or mortgage from the holder of such legal title. The complainant’s duty was to inquire of the defendant in possession what her rights were ; and neglecting this duty, she is chargeable with all the information she would have obtained if inquiry had been made. Slie occupies no better position than her mortgager, Warren W. Cadwell, and as between him and Mary Cadwell, in equity the patent was void, because the defendant Mary Cadwell did not join with her husband in assigning the certificate of purchase to him.
The decree of the circuit court is correct, and must be
Affirmed with costs.
Cooley, O. J. and Sherwood, J. concurred.
Campbell, J. In the court below the mortgage in suit was held void, as against defendant Mary Cadwell, on the ground that at its date she ,was in possession of lot 1 as a homestead, as wife of Marvin Cadwell, and did not join with him in his transfer of the State land-office [certificate] to Warren Cadwell, to whom the patent was issued.
It appears that complainant lent her money in good faith, on the strength of the State patent, and there is no claim that she had actual notice of any right or claim of Mrs. Cadwell, or actual knowledge of her possession. The only ground of defense is that the possession is notice of her claim, and that the claim was valid.
I do not doubt that as to persons having actual knowledge of a homestead claim, it may exist in lands before patent, subject to the balance due the State. But I do not feel so clear that where husband and wife have no family of children living with them, the wife can insist that her domicile is the family home, when her husband, who is head of the family, sees fit to change it. I do not place my action in this case on that ground, but I think it open to serious question.
In my view the complainant cannot be affected by any supposed equities which were actually unknown to her, and which originated before the patent issued. The law has been uniformly laid down in this State, as it has been by the courts of the United States, that the patent conveys the legal title, and that if there are any equitable claims against the land they can only be worked out by holding the persons claiming interests under the patent as trustees.
I have found no authority for holding that any one is bound to look behind the patent to see whether it was issued to the right person, or on proper papers or assignments. If any one gets out a patent, with knowledge cf the adverse rights of others, it is plain enough that he should take sub ject to their rights. But the fact that the patent has issued to the wrong person, or on improper proofs, in no way affects subsequent purchasers or incumbrancers, who have a right to assume that the patent was lawfully granted. If this patent was not properly issued to Warren Cadwell, it was only because the transfer from Marvin Cadwell required his wife’s signature. But it has been twice held by this Court that the issue of a patent to a person who has no legal transfer whatever from the holder of the certificate does not affect an honest incumbrancer or grantee who does not have knowledge of that fact. In Damouth v. Klock 29 Mich. 289, a patent was issued to the widow of the purchaser without any authority whatever to represent the estate, and in direct wrong of the heirs. But it was held, nevertheless, that this fact, which would necessarily appear if search was made in the Land-Office, did not affect a subsequent mortgagee. So in Austin v. Dean 40 Mich. 386, it was expressly held, as it has been held in other cases in this State, that no one could be protected as a bona fide purchaser under a forgery. But it was further held that when that forgery was prior to the patent, the purchasers from the patentee were not affected by it, and would hold if they had no actual notice of it.
All of the cases which have been decided by us heretofore, holding persons having the patent title as trustees for those who have been defrauded, have involved actual notice of the rights set up. Such was the case in Boyce v. Danz 29 Mich. 146, decided at the same term with Damouth v. Klock. Davis v. Filer 40 Mich. 310 was also such a case. And in both Damouth v. Klock and Austin v. Dean, trusts were supported against all but the bona fide purchasers or incumbrancers.
It is very certain that Mrs. Cadwell’s claim is no better than that of the heirs in the other cases. Nothing had been done in either of those cases which bound any one; while here the land-officers had before them an assignment from the purchaser which was good on its face, and was genuine, however it may have lacked the concurrence of the wife.
The distinction between patents and other conveyances is a material one. The land in question is such that all title must originate with the State authorities. The patent is the beginning of the legal title, and unless — which has never been held —the purchaser is in all cases bound by knowledge of what lies behind it, then Warren Cad well, and such rights as Warren Cadwell has created since its issue, are all that need be regarded.
The doctrine of constructive notice has been carried so far as to work fraud nearly as often as it prevents it. The fact of possession can only be known to those who see the property they purchase, and the policy of our laws, which make registry presumably correct, and the almost universal practice of purchasing from the registry, is not very consistent with the extreme application of the other rule. To make possession constructive notice to a person who is ignorant of it, concerning claims which can only be known by inquiry, is adding construction on construction, and makes it unsafe for anyone at a distance to deal in lands at all. I am not prepared to say that we have not gone far enough to do this, where the possessory rights arise under a legal title. But to hold that notice of such claims can be held by mere construction, when the legal title originates subsequently, is, I think, unwarranted by either principle or recognized authority.
I think the court below erred in holding Mrs. Cadwell’s claim superior to complainant’s, and that it should not have been maintained, and should to that extent be reversed. | [
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Sherwood, J.
. The Prentiss Lumber Company was ■organized March 22, 1882, and continued to do a lumbering business in the city of Alpena until January, 1884, having-its office in said city. The defendant is, and has been for many years, a resident of Detroit, and loaned money. ' On the 25th day of August, 1883, the defendant had loaned to the Prentiss Lumber Company moneys to the amount of $14,000, and had become liable by way of endorsements and acceptances for the company to the amount of about $12,000 more. On that day, to secure the payment of the money thus borrowed and the defendant against liability upon his said endorsements and acceptances, and which he subsequently paid, the company made and executed to him a chattel mortgage covering about $200,000 of its personal property. At this time the defendant was informed and understood that the company had assets of the value of $350,000, and was owing about $200,000. On the 3d day of September, 1883, the defendant had not yet put his chattel mortgage on file, but understanding that under a recent enactment of the Legislature, in order to preserve his rights secured by the mortgage against all creditors, it should be properly filed, he notified the president of the company that unless prompt payment of the company’s indebtedness to him, and of its-indebtedness for which he -was liable, was made, or real estate security given, or the property mortgaged placed in his possession, or sufficient sold to him to pay his claims and cover his liability, he should file his mortgage.
On the 5th of September the president of the company wrote the defendant he could turn him out lumber to pay all his claims; and on the same day defendant telegraphed the president to file the mortgage, or sell and deliver to his agent 200,000 feet of lumber, upon receipt of which the company delivered to defendant’s agent the lumber, and immediately notified defendant of the fact. On the 7th of September- the company sent to defendant an account of the sale and transfer of the lumber, accompanied by a receipt for the same, given by his agent. On the 11th of. September, 1883, the defendant went to Alpena, ratified i the sale and transfer of the lumber to him, and settled with the company, and received from it the full amount of his account and claims, including his liabilities for the company, and assumed payment of the latter, all amounting to $26,641-.72, taking his pay therefor in the lumber he had received to that amount, it being contained in eighty-nine piles, which were marked and set aside as defendant’s property.
The defendant returned to Detroit, and delivered to the company’s attorney there, as agreed by the parties, the notes and other papers he held, evidencing the indebtedness to him. The following endorsement is written across the face of the large note accompanying the chattel mortgage and signed by defendant: “ Canceled by settlement of notes and obligations for which this note and chattel mortgage of the same date was given as collateral security.” Endorsed upon the mortgage'was the following: “Paid on the within, September 7, 1883, by sale and delivery to my agent, Mr. Walker, subject to my order (J. D. Standish), eighty-nine piles lumber, on docks of the said Prentiss Lumber Company, guaranteed to contain 2,089,000 feet, for the sum of $26,641.72, free of storage, and insurance paid until shipped:”
It further appears from the record, which contains all the testimony in the case, that the defendant had sold all the lumber but a few thousand feet, which had been taken from him upon a writ of attachment, at the time- proceedings in this case were instituted, and that the lumber was not worth the amount of the defendant’s claim. The plaintiffs were creditors of the Prentiss Lumber Company, and became such between the 1st and 15th of September, 1883, and on the 5th of March, 1884, commenced suit against the company for the sum of $3750.84, and on the same day instituted the garnishee proceeding against the defendant in this suit, claiming that he had lumber belonging to the Prentiss Lumber Company in his possession and under his control, or the proceeds of lumber sold, which he had taken upon a fraudulent and void mortgage made to him by said company, in amount sufficient to satisfy the plaintiff’s claim.
Judgment was takenñn the original suit on the 10th day of June, 1S84. The defendant filed his disclosure, and also his answer to interrogatories prepared and submitted under the statute, in both of which he denied that he had any property of any kind belonging to the Prentiss Lumber Company, or that he took a fraudulent mortgage, or ever received any money,, the proceeds of property taken under such mortgage, which belonged to the company when the garnishee process was served upon him. The plaintiffs then filed their demand for a trial in the case. The cause was tried at the Alpena circuit before a jury, and the plaintiffs obtained a judgment for $3879.99 ; and the defendant brings error. The disclosure of the garnishee is full and explicit,- and makes a complete defense for him, unless in some way disproved.
The indebtedness of the lumber company to defendant, at the time he took his chattel mortgage to the amount the defendant claimed, and for which he receipted (as he and the president of the company both testify), was not disputed by the plaintiffs. Neither is -it claimed by plaintiffs’ counsel that the company might not have lawfully paid its indebtedness to defendant by letting him have lumber for the amount, as it is claimed was done in this case. It was the theory of the plaintiff, however, upon the trial, that the defendant did not receive the lumber in payment of his claim, but that he received and took possession of it under and by virtue of his mortgage, which^not having been filed, was void as to the plaintiff, and no title to the lumber passed as against the plaintiffs’ claim. The fact whether the lumber was so received or not upon the mortgage was submitted to the jury by the court, and they were told that, if they found the plaintiffs’ theory correct, they would be entitled to recover. Defendant’s counsel insisted there was no testimony in the case to support such theory, and that the charge of the court submitting the question to the jury was unwarranted.
"We have examined the record in vain to find any testimony in the case tending to show that the lumber was turned out upon the chattel mortgage, or that the defend ant received or took possession of the same under or by virtue of his mortgage. Ve think the exception of defendant’s counsel was well taken, and his first request to charge should have been given. It is true it was claimed that the mortgage was void for other reasons; but inasmuch as there.was no showing that defendant took the lumber by virtue of the mortgage, it became of no consequence in the case. The defendant did not have the property taken of the Prentiss Lumber -Company in his possession when the writ of garnishment was served upon him. In such cases the court cannot follow it in the hands of third persons, or its proceeds in defendant’s hands, in this proceeding, if the title of the lumber is to be litigated in order to show plaintiffs’ interest. Fearey v. Cummings 41 Mich. 384.
Courts are not allowed to make contracts for parties. Neither will they raise presumptions in favor of plaintiffs in garnishee proceedings, nor enforce -claims not necessarily within the provisions of the statute. The defendant, in this class of cases, is brought into court upon no common-law liability, but under circumstances purely statutory, and to protect himself against the liability the situation creates when his defense is perfect, not unfrequently subjects him to great inconvenience and expense without any adequate provisions for recompense or reimbursement. This statute cannot be regarded with special favor by the courts, and must 'be strictly construed. Such, certainly, must be the case when it is sought through the application of its provisions "to reach results more properly to be attained under the carefully guarded rules of a court of equity.' What we have said ■disposes of the case, and it would not be profitable to pursue -the many exceptions taken further.
The judgment must be reversed and a new. trial granted.
The other Justices concurred.
The charge requested was that “Under the testimony in this case the verdict must be for the defendant.” | [
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Cooley, C. J.
This is a suit in equity for the foreclosure of a mortgage given by Franklin Muzzy to Frederick A. ."White in June, 1873, to secure notes to the amount of eleven Iran dred dollars. The land mortgaged was the undivided half of the east half of the southwest quarter of section thirty-three, in township three south, of range eighteen west. Muzzy was dead before the suit was instituted, and the only question in the case was whether the mortgage, under the circumstances disclosed in the evidence, was a lien on the land described in it, and, if so, to what extent.
Muzzy, it appears, was, in May, 1858, the owner of the whole quarter section, and as such he entered into a contract with the defendant Wisner whereby the latter was to enter into possession for the benefit of both, and on certain specified terms was to have a conveyance of an undivided half. This conveyance was made October 31, 1862, and thereby Muzzy and Wisner became tenants-in-common, with equal interests. Two years later Muzzy entered into a written contract with Wisner to sell to him the other undivided half for the price of five thousand dollars, and on April 11,1873, the undivided half of the east half of the quarter section was actually conveyed by Muzzy to Wisner. This left Muzzy owner of the legal title to the undivided half of the west half of the quarter section, but subject to his contract to convey to Wisner when the purchase price should be paid. And this was the state of the title when Muzzy mortgaged to White.
Wisner claims that before the date of the White mortgage he had fully paid Muzzy for the land; that he was in possession, claiming under his deeds and contract; that his possession was constructive notice of his rights, and consequently the mortgage was not a lien upon the land for any amount whatever. The circuit judge appears to have assented to this view of the legal questions in the case, but was not satisfied by the evidence that Muzzy had been fully paid; and he held that, to the extent that Muzzy still had a claim upon the land under his contract, the mortgage was a lien. And being of opinion that the sum of seven hundred dollars, including interest, was still owing on the contract, he gave decree of foreclosure for that amount.
Complainant appeals from this decree, claiming that the possession of Wisner was no notice to third parties that he claimed any interest in the land further than was shown by the two deeds from Muzzy, both of which were recorded. The deeds, it is said, made Wisner tenant-in-common with Muzzy, and as the possession of one tenant-in-common is presumptively the possession of both, and not hostile to the other, White, when he took his mortgage, had a right to understand that Wisner was holding in the right of himself and Muzzy jointly, and was not constructively notified by the possession of anything different. This is the ground of the appeal. It is further claimed, however, that a larger sum than was decreed was owing from Wisner to Muzzy.
The case of Adams v. Bradley 12 Mich. 346, is cited for complainant. In that case it was sought to be shown that where persons were tenants-in-common of lands, which had been acquired by them without reference to any partnership, and not bought with partnership funds, it was not competent to show, for the purpose of defeating a mortgage given by one of the owners, that there was a partnership between all the owners, and that, as between themselves, the land, by reason of certain equities, ought to be considered partnership property. The mortgagee, it was said, had a right to suppose that the common possession of the three was under and in pursuance of the record title, and not under some other and parol arrangement. This case was followed in Reynolds v. Ruckman 35 Mich. 80, and Van Slyck v. Skinner 41 Mich. 186.
The cases are not pa'rallel to this. In none of them was anything more than a verbal understanding set up, upon which equities might arise in the settlement of partnership dealings, and in none were the legal rights of the parties, which would have been learned on inquiry, different from those shown by the conveyances. But in this case it is different. Wisner, in addition to the deeds which made him legal owner of an undivided three-fourths, had a contract, which was perfectly legal and binding, and under which he was to become entitled, when he made certain payments, to a deed of the other fourth. And this contract under the statute might have been recorded as a conveyance. How. Stat. § 5689. Third persons were therefore chargeable with notice of it under circumstances which would charge them with notice of a deed.
If Wisner had held a deed of the remaining interest in the land which then appeared to stand in Muzzy, we see no reason why his possession should not have been constructive notice of it. It is true, as complainant says, that the possession was not apparently inconsistent with the record title; but this may be said in any case. It is possible that any possession may be that of a licensee or otherwise subordinate to the record title; and if that were sufficient reason for holding that the possession is no notice of actual rights, the principle on which decisions have been made, giving protection to occupants, would have very limited' application.
If- Wisner had held no deed of an interest in the land, but had been in possession under a contract of purchase, the possession would indisputably have been notice of his rights. Why it should be any less so when his title has been in part completed by conveyances, is not apparent. The conveyances, one would think, ought to fortify and strengthen his equities, instead of weakening and putting them, in- danger. It seems to be unquestionable that Wisner occupied, exclusively, and White would have learned this faict on inquiry.. No reason is apparent why he should not have been held bound to inquire, as much in this case as in any other. See Hardy v. Summers 10 Grill & J. 316: s. c. 32 Am. Dec. 167, in which, upon similar facts, the possession was held to give notice.
Upon the question of fact as to how much was owing to Muzzy from Wisner, we think the complainant has no reason for finding fault with the conclusion of the circuit judge.
The decree must be affirmed.
The other Justices concurred. | [
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Campbell, J.
In this case plaintiff sued defendant for services in running and assorting logs in Sturgeon river, which is a stream in the Upper Peninsula emptying into Portage lake. The proofs showed that defendant’s logs were run down the river to the upper boom of plaintiff in the same run with a large amount of other logs; that the boom was kept closed so long as was thought necessary to prevent the injury which might be expected from high water in floating the logs out of tlie river, where there was risk of their being scattered in the lake or stranded on land; that as soon as was thought safe the logs were let down in such quantities as seemed best, and after reaching plaintiff’s lower boom, which was about three-quarters of a mile above the mouth, were separated so as to allow defendant’s logs to be run down alone, as they were by his men. At the lower boom is an artificial cut from the river into Portage lake, which plaintiff made to avoid the alleged difficulty arising from shoals and other causes, in floating logs conveniently and safely through the mouth of the river, where there are several channels separated by shoals and bars, and more or less sand-bars outside. This cut was and is used to take logs by a short passage into Pike’s bay, which is a part of the lake, where they are put into the various pockets or storages of the several log-owners.
There is no question in fact that the plaintiff ran and assorted the logs. The controversy turned chiefly on an alleged want of right to do so, and partly on the amount of charges. But as the circuit judge took the case entirely away from the jury, and no reasons appear why he did so, we are compelled to confine our attention to such matters as are most obvious.
We have found so little in this case to distinguish it from Hall v. Tittabawassee Boom Co. 51 Mich. 377, that we do not propose to discuss the general subject. That case recognized some of the difficulties which surround the whole subject, but held that, in the absence of any practicable State supervision, the companies have nevertheless a right to be properly paid for their services, and a right to a reasonable discretion in the management of their business. We do not think it desirable to open any part of the subject that was there settled.
Since the controversy arose in that case the legislative authority has passed some statutory provisions which have a bearing on a part of the controversy. By the amendatory statute of 1883, pp. 72, 73, it is provided that for all work lawfully done by them, whether by contract or otherwise, such corporations shall have aright to collect “such uniform and reasonable sum as is hereinafter provided,” and that such sum should be estimated so as to cover their actual business expenses of various kinds, and all other necessary and proper costs and expenses, and a reasonable salary for the officers, and a profit of not less than 12 per cent, on capital stock. These rates were to be fixed by the directors annually, and in ease they turn out, when the year’s business is closed, to be excessive, the excess is to be refunded ratably.
It was further provided that if any owner shall have logs in their part of the stream without making adequate provision for handling them, they shall be regarded as delivered to the company.
It cannot be disputed that uniform rates to all parties for the same services are always to be desired, nor [claimed] that the Legislature has included in the means of estimate any unlawful basis. And so far as any case involves the inquiry of fact as to whether anything is set up which does not justify its being regarded as entering into the fund for computation, we can see no reason why it should not be laid before the jury for their consideration. None, of the items relied upon, as set out in the record, could in our opinion be shut out from such consideration. If it should be made to appear that any of them did not in fact belong to the proper and legitimate outlay, we cannot anticipate the testimony in a future case, or decide questions of fact in the present. We cannot say, as matter of law, that the charges made were unreasonable, or if so, to what extent.
There was testimony distinctly tending to show that defendant’s logs could not pass down by the upper boom , without requiring attention, and there was testimony that the interference of the company was proper. Any dispute, therefore, if there was room for one, was for the jury, and should have been left to them.
There was also testimony which, if true, showed that a detention at the upper boom was necessary to prevent probable loss and disaster to the logs in the river. If so, it cannot be said to have been improper. There was also testimony tending to prove the utility of the cut-off in clearing the rivér and in making the safe delivery of logs more secure. This was property before the jury.
Without going further, we think it very clear that the case should not have been taken from the jury, but that the plaintiff’s claim should have been laid before them for their verdict. The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Cooley, C. J.
This is an action of ejectment. The plaintiff claims the land under a sale made for delinquent taxes for the year 1819. In the circuit court the assessment for that year was held void for the reason that the supervisor’s certificate to the assessment roll was not in compliance with the statute.
The statute gave a form for this certificate which is as follows :
“ 1 do hereby certify that I have set down in the above assessment roll, all the real estate in the township of , liable to be taxed, according to my best information, and that I have estimated the same at whát I believe to be the true cash value thereof, and not at the price it would sell for at a forced or auction sale; that the said assessment roll contains a true statement of the aggregate valuation of the taxable personal estate of each and every person named in said roll, and that I have estimated the same at the true cash value, as aforesaid, according to my best information and belief.” How. Stat. § 1025.
The certificate actually attached in this case was as follows :
“ I do hereby certify that I have set down in the above assessment roll all the real estate in the township of Berrien liable to be taxed, according to my best information, and that I have estimated the same at what I believe to be the true cash value thereof and not at a forced or auction sale; that said assessment roll contains a true statement of the aggregate valuation of the taxable personal estate of each and every person therein named, and that I have estimated the same ac the true cash value thereof according to the best of my knowledge and belief.”
The discrepancies between this certificate and the form given are very manifest. Iiow they came to occur we do not know, and it is not material. Unless we can hold that this-.certificate is in substance the same with that prescribed, 4t must be considered fatally defective. We do not think we can so hold.’ The omission of the words “ at the price it .would sell for,” would of itself be fatal. The purpose in prescribing the form was principally that the supervisor' might be compelled to assess by the standard of cash value, and should not be at liberty to take the price obtainable at a forced auction sale as the standard; and the purpose might be defeated if the words here omitted could be left out with impunity. The cases of Silsbee v. Stockle 44 Mich. 561; Dickison v. Reynolds 48 Mich. 158; and Hurd v. Raymond 50 Mich. 369, sufficiently explain our views on this subject, and. must be regarded as conclusive.
The judgment must be affirmed.
The other Justices concurred. | [
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Sherwood, J.
This is an action of ejectment to recover the interest of William Beamer in about one hundred and sixty acres of land, which is claimed by plaintiff to be the use of an equal undivided one-half part thereof for and during the natural life of said Beamer. Maria Beamer, wife of William, previous to the 24th day of March, 1876, owned the entire property in question, and on that day sold and deeded to her son Sobieski, taking from him, as the consideration therefor, a life-estate therein for herself and husband, and the survivor of either of them. There were two houses upon the farm. One was the house of Mr. and Mrs. Beamer, and the other of their son Sobieski and his wife, and had been for several years. On the 10th of November, 1881, the plaintiff became the judgthent creditor of defendant William Beamer, and upon an execution, levy and sale thereunder became the purchaser of the interest in the premises he now claims, and after redemption expired under his deed received upon said sale, he claims the right to maintain this suit and recover, and was permitted to at the circuit as against William Beamer, but not as to Sobieski Beamer, and defendant William brings error.
No fraud is claimed in the case. The main question argued by counsel, and the only one needful to be considered by us, is, was the interest of William Beamer in the premises described such as could be lawfully levied upon and sold under the plaintiff’s execution? We are of opinion it was not. It is not claimed it could be done at common law. Under the Constitution and laws of our State William and his wife were certainly entitled to their homestead rights in the premises exempt from levy and sale. The statutes permitting levies upon the interest of the debtor in real estate are as follows:
All the real estate of any debtor, including legal and equitable interests in lands acquired by the parties to contracts for the sale and purchase of lands, whether in possession, reversion or remainder, including lands fraudulently conveyed, with intent to defeat, delay or defraud his creditors, and the equities and rights of redemption hereinafter mentioned, shall be subject to the payment of his debts, liabilities and obligations, and may be levied upon and sold on execution as hereinafter provided. * * * How. Stat. § 6108.
That leasehold interests in lands levied upon by execution shall be sold by public vendue, between the hours of nine-o’clock in the morning and the setting of the sun, at the court house or place of holding the circuit court in the county in which such lands are situated. Such levy shall be made in the manner provided by law for levying on real estate. * * * How. Stat. § 6166.
This case does not come within either of the provisions of the statute. The interest William Beamer took with his wife was a peculiar one. It was an entirety. Fisher v. Provin25 Mich. 317. They both took the same estate, the same-interest, and it could not be separated. The right of the-one was the right of the other. Neither could by a separate transfer affect the rights of the other or his own. What would d.efeat the interest of one would also defeat that of the other. Manwaring v. Powell 10 Mich. 375. In a portion of these premises the interest of William Beamer was more than that of a joint tenant. He had in addition a homestead interest upon .which the plaintiff could not levy his execution, even though it had been against both joint tenants. Lozo v. Sutherland 38 Mich. 168. William Beamer had no such distinctive estate in the premises as was here attempted to be sold upon the execution, and which the plaintiff seeks to recover in his ejectment, and the court in this ejectment suit cannot invest him with it. Etna Ins. Co. v. Resh 40 Mich. 241.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Champlin, J.
The plaintiff sued the defendant in an action of tort. The declaration sets forth that plaintiff, on the 13th day of July, 1882, at about half-past ten o’clock p. m., while passing over the bridge of the defendant, fell through the open draw ;• that the plaintiff was in the exercise of due care and diligence. The grounds of negligence are that the defendant “ negligently, carelessly and recklessly left said draw open, without any protection against the opening thus left;” that it “ carelessly, negligently, and recklessly neglected to give any signal, notice or warning to said plaintiff that said draw was open;” that it “ negligently, carelessly and recklessly placed on the east side of said bridge, and directly opposite its toll-house, what is known as a bull’s-head-light, which reflected a bright light directly into the toll-house on said bridge; that said light did not shine into or show said opening, but concealed the same from the plain tiff; that the light from, said lamp so dazzled plaintiff’s eyes that he could not see said opening (said light rendering it impossible to see the opening as he approached the same); and that the employee of the defendant, who was placed in •charge of the bridge and draw, was incompetent to perform the duties incident thereto, and unfit to be employed in and about said business, which incompetency and unfitness were known to the defendant at and prior to that time.” The declaration further alleges that the injuries plaintiff sustained by said fall were caused by these acts of carelessness, negligence and recklessness.
The plea was the general issue. The cause was tried before a jury, who rendered a verdict in favor of the plaintiff for $500. The bridge of the defendant is built across Portage Lake, between the villages of Houghton and Hancock, the distance between said villages being from three-quarters of mile to a mile, the length of the bridge being about 1300 feet. From the Houghton side of the lake to the draw it is 558 feet. The length of the turn-table or draw is 180 feet. The width of passage-way for boats through the draw is about 70 feet. A sidewalk extends across the bridge on its westerly side. Near the sidewalk and the south end of the draw is a small building used as a toll-house. The toll window is six feet six inches and the north edge of the house four feet six inches, south of the edge of the draw. Nine feet eight inches south of the edge, on a line with the railing and on the east side of the bridge, was a head-light with a reflector so placed a,s to throw light upon the front of the toll-house and upon the planking north of it.
Whether this head-light was so located as to throw the rays of light upon the draw of the bridge when closed or not was a question upon which the testimony differed. The plaintiff’s testimony tended to prove that, on the night of the accident, the rays of light from this source did not fall so as to disclose any chasm or opening in the bridge. It appears that the other lamp-lights were placed on posts near the end of the draw and about seven feet above the floor of the bridge, but were so dim as to give but little light upon the bridge; the / & one on the west side of the bridge being behind the toll-house, so it could not be seen by a passenger approaching from the Houghton side. There were two lights placed, one on each side of the draw, so as to show up and down the lake when the draw was open. These lights, the bridge-tender himself testified, were of but little, if any, use to travelers over the bridge. The company commenced to do business in 1876, and this bull’s head-light was placed there in the spring of 1882.
At about ten o’clock p. m., July 13,1882, plaintiff in company with Judge Williams, of Marquette, left Houghton to go to Hancock to take a steamer, and attempted to pass over this bridge. They were walking abreast upon the sidewalk, the judge on plaintiff’s left, and next the outside rail. Plaintiff had a valise in his hand. The night was dark. As they came to the toll-house they did not stop, but the judge fell a step behind and placed.some bridge tickets on the toll-house counter. As the judge turned away from the counter he saw a man standing near the westerly rail of the bridge and the edge of the draw. Plaintiff was then a step ahead of Judge Williams, who heard the man say, “Take care!” Instantly the judge said, “ Look out!” Plaintiff then swung a little to his right, and went over the edge of the draw. He struck on some timbers a few feet down, and sprained his ankle and lost his valise. When he stepped off plaintiff was walking about three miles an hour. The draw was open to allow some vessels to pass through. It appears that the duty of toll-gatherer and of bridge-tender were performed by the same person, and that no one was in the toll-house at the time the checks were laid upon the counter.
The negligence of the defendant is alleged as consisting of
1. In leaving the draw open without any protection against the opening thus left.
2. In neglecting to give any signal, notice or warning that the draw was open.
3. In placing a head-light so that it did not show the opening.
4. In placing it so that it dazzled the eyes of travelers and prevented them from seeing the opening.
5. In employing knowingly an incompetent bridge-tender.
The appellant claims that the judgment is erroneous because.
1. No relevant evidence.was introduced as to the first, second, fourth and fifth grounds of negligence counted on.
2. The plaintiff was negligent.
3. Irrelevant evidence was introduced as to the permanence of plaintiff’s injury.
4. Relevant evidence offered by defendant was excluded.
The first and second grounds o.f error relied on we do not think are sustained by the record. The evidence introduced in the case was relevant, and tended to prove the negligence alleged in the declaration, and that the plaintiff was in the exercise of due care and caution. The weight of this evidence was for the jury, and .was submitted to them under proper instructions from the court. It is only when there is an entire want of evidence upon some material point in the case that the court is warranted in taking the case from the jury. We do not perceive that such was the case here, and the court committed no error in refusing to charge the request made by defendant that the plaintiff has made out no case, and directing them to find a verdict for defendant. We have examined the charge to the jury as given by the court, and the principles of law applicable to the facts of the case appear to have been correctly stated and properly submitted to the jury, and we are also of opinion that the refusals of the court to charge as requested by the defendant’s counsel, considered in connection with the charge given, constituted no error to the injury of defendant.
The defendant was incorporated 'under the laws of the State of Michigan. By the act of incorporation valuable franchises are conferred upon it. It has erected a bridge across the navigable waters of the State, and charges and receives toll from all persons passing over it. With reference to the management of the bridge and the opening of the draw, and all precautionary measures in relation thereto, the defendant had exclusive control and direction. In its use the defendant was required, by its relation to the public and those traveling over its bridge, to exercise due .regard and caution for their safety, and to use reasonable safeguards for their protection, and for omitting to discharge its duty in this respect the defendant may be held responsible for any injury occasioned thereby. In this, as in all actions for negligence, the plaintiff must show that he was in the exercise of ordinary care and prudence on his part, and if he fails to do so he cannot hold the defendant liable. This being shown, the defendant was bound to use reasonable care in reference to the safety of travelers passing over and upon the bridge while the draw was open, and for any negligence in this respect it would be liable to any person injiired solely through such negligence. Manley v. St. Helen's Canal Co. 2 H. & N. 840; Nowell v. Wright 3 Allen 166.
There was no error in permitting the witnesses to testify with reference to the nature of the injury to plaintiff’s limb —whether the injury was permanent or temporary: the real nature thereof could be shown under the issue. The plaintiff was asked: “ How many were in charge of the bridge at that time ?” He was permitted to answer, against defendant’s objection, and the defendant now assigns error upon the ruling. The question was proper. The plaintiff was entitled to show the situation and the surrounding circumstances at the time of the accident, and for this reason it was proper also to show that during the month of July, 1882, there was no bar or gate or anything put up there by the bridge company when the draw was open. It was also admissible as bearing upon the question of negligence. The declaration alleges the defendant “,negligently, carelessly and recklessly* left said draw open without any protection against the opening thus left.” This averment is sufficiently certain to admit the testimony objected to being given in evidence.
The declaration averred that the defendant employed an incompetent person, and placed him in charge of the bridge and draw; and on the trial evidence was introduced which tended to show that a short time previously this employee liad been temporarily insane, and that the officer or agent of •defendant who employed him knew such fact. It is claimed that, whether, or not it would have been proper to show that Sheldon, who was the person who employed the bridge-tender early in .1882, knew [from conversations had with ■other persons] that in the winter of 1881-82 the person he ■employed had been temporarily deranged on religious subjects, what was said, to him had no tendency to show that in ■July, 1882, he was unfit to be bridge-tender, or that Sheldon had notice that in July he was incompetent. The object of showing these conversations with Sheldon was to prove that lie knew before he employed this person to attend the bridge that he had been deranged. The fact that he had been deranged so that he was not reliable was made to appear by ■other witnesses. The declaration put the unfitness of the bridge-tender in issue, and the testimony introduced was relevant upon that issue.
The testimony of the witness Robinson as to the effect of the bull’s head-light shining upon the bridge, and the inability of a person to perceive when the draw was open from the light in that position, we think was proper. The witness also testified that the position of the light, in order to disclose the chasm, should have been below, so that the reflection would be against the coamings of the bridge where the chasm commences, and would show the opening. We do not think this expert testimony was admissible. We do not see, however, that its reception could in any way prejudice the defendant before the jury. The witness had testified that the light, as placed, did not disclose the opening when the bridge was drawn, which was a proper and material point to be ■shown, and speculation, how it might have been placed to produce a better effect, while immaterial, was harmless. The verdict of the jury, under the instructions of the court, could not at all have been influenced by this testimony. No error appearing in thte record,
The judgment is affirmed.
The other Justices concurred. | [
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Campbell, J.
Complainant filed a bill in the .nature of an interpleader to determine whether certain notes made by him should be paid to the State Land-office, or to the defendants Bewick and Comstocks. The controversy is therefore between the defendants, and arose in thiswise.
In the beginning of 18Y8, Minor, the complainant, bought a considerable amount of logs from one James McElroy. It was claimed by Glen. Partridge, who was then Land Commissioner, that a large part of these logs had -been cut on State lands. A settlement was made between the Commissioner and McElroy, whereby $2100 was to be paid in short paper, and a further sum of money in addition, amounting to $122. By arrangement Minor gave his personal notes, being two of $1050 each, payable to the order of B. E. Partridge, Commissioner, in four months at the American National Bank, Detroit, and these were accepted in settlement.- These notes were to mature on the 18th of September, 1878. A few days before their maturity McElroy filed a bill to restrain the Land Commissioner from collecting them, setting up as a reason that the amount of timber which he really cut from the State lands had been overestimated, and that he had been thereby led to pay more than twice what he should have done, estimating the logs at two dollars a thousand, which he claimed to have been the price agreed on upon the settlement. During the pendency of this suit the notes remained in the hands of the State, and were not presented for payment.
In August, 1881, McElroyis • bill was dismissed, and he appealed to this Court, but the appeal has not thus far been pressed for hearing. Minor then, being about to leave the State for a journey, and to be away for some time, made arrangements with his bankers to have the notes paid on presentation, and deposited money for that purpose.
Mr. YanBiper, who entered on the duties of Attorney General in January, 1881, ascertained a few months thereafter the condition of the litigation, and that James D. Turnbull was counsel for McElroy, and expressed to him a desire to get the matter closed up as soon as it could be. Turnbull had an interview with him in the fall, and proposed to leave it to him, after he should examine into the facts, to determine what would be fair and just. This Mr. Yan Biper would not undertake, but desired an interview at some convenient time to talk it over. They had a casual meeting at Lansing in January, 1882, and it was understood they would meet, and they did meet in Februax'y. At this meeting a conference was had with Mr. Neasmith the Commissioner, and the result was an agreeriaent that the notes should be given up to Mr. Turnbull on payment of $1100; and this agreement was carried out, and the money paid over.
The controversy turns on this agreement chiefly, and the purposes for which it was made, and the understanding which led to it. Turnbull claims that he appeared in the matter for the purpose of compromising and settling the McElroy suit, and that the notes belonged to himself by assignment from McElroy, and he was entitled to collect them from Minor for his own benefit. There seems to be no doubt that' he-was entitled to any interest owned by McElroy.
The State authorities testify unequivocally that in this arrangement of February 1882-, Mr. Turnbull was acting ostensibly on behalf of Minor and of no one else, and that they were only induced to compromise by his representation that the trespass was overrated, and that Minor ought not to pay as much as $1100, but would pay that but no more, as he was anxious to close it up; that their action was based on Minor’s departure, and the likelihood that he would pay no more, and that no one else was supposed to be interested in the agreement of settlement. And they are positive that no conditions were made in any other interest.
Prior to this time these officers had heard reports that Minor had deposited money to pay these notes, but they testify that Turnbull’s assertions led them to infer that this was not so, and that he would not pay beyond the amount of $1100.
On the 9th of May, Mr. Yaii Piper having discovered that Minor had made provision for paying the whole amount of the notes, and that Turnbull had claimed that he owned them on his own account, called on Mr. Turnbull to have the settlement canceled and the notes returned, and an agreement was made that it should be rescinded and the notes returned. Turnbull admits this last agreement, but claims that it was with the understanding that the Attorney General was to execute a paper to the effect that the settlement was the result of honest mistake and misunderstanding, and that no wrong had been done by Turnbull. Yery shortly thereafter, before any steps had been taken to complete this new arrangement, Mr. Turnbull refused to go further, on the alleged ground that he had been attacked in the public newspapers for fraud imputed to him in his dealings with the State in procuring the settlement, and that the attacks were instigated or inspired by the Attorney General. The proofs do not bring these attacks home to the Attorney General, but Mr. Turnbull claims to have acted on that belief, and to have been so informed-
Meanwhile Mr. Minor had made arrangements with Mr. Maltz, a banker in Alpena, to pay the notes, on presentation, but denied his liability for interest because the notes drew none on their face and payment had never been demanded, and he had always been ready to pay them. Turnbull had knowledge of the fact that Maltz had been authorized to pay them, before he made the compromise, but did not convey this information to the State officers. After he got the notes they were presented for payment to Maltz, with demand of interest, but he refused to pay more than their face.
Sometime in April it is claimed that Turnbull sold the notes to Bewick, Comstock & Co., the defendants, for $2000, and they claim to have become bona fide purchasers. The notes were already in their possession as Turnbull’s banking agents, and this $2000 was put to his credit on deposit account, among his other deposits, on which he was from time to time drawing cheeks. Before they had collected them the State authorities had given Minor notice not to pay. They sxied Minor, and this bill was the result, as he desired to be protected in paying to the true owner.
A preliminary question of some importance is made on behalf of Bewick, Comstock & Co., who claim that as they had no knowledge of any circumstance vitiating the transaction whereby Turnbull got these notes from the State, they must in any event be protected as bona fide holders of negotiable paper. But in our opinion, they do not occupy this position. This paper was payable to the order of Gen. Partridge, Land Commissioner, and by him endorsed without recourse to Michigan State Treasurer or order, and by the Treasurer to the American National Bank or order. This last endorsement seems to have been made for the account of the State and the State could cancel it. But when these notes were handed to Turnbull they were not endorsed to him, and the only way in which Bewick, Comstock & Co. made apparent- title was by changing Partridge’s special and qualified •endorsement into a blank endorsement. We do not see how title could be made in that. way. Partridge had made a special endorsement, and the legal title had thereby become vested in the State Treasurer, who might no doubt recall any endorsement made by himself, but who could not change the form of his own title, and who does not appear to have attempted to do so. Whether the notes were, as claimed by the Land Commissioner, delivered up to the maker, or whether as claimed by Turnbull, they were delivered over in some other way, there was no transfer by endorsement, and the title of the State appeared still to exist, and if transferred at all was only by delivery as an equitable assignment. Our statutes do not provide that mere assignees of negotiable paper can sue in their own names where not holders by negotiable transfer. If Turnbull had title at all it was merely as such assignee, and such an assignment could not stand, like a negotiable transfer, discharged of equities. The State appeared to be the owner, or if not the State the American National Bank, and Turnbull could not confer by delivery any better title .than he owned. But beyond this these notes were long overdue, and had ceased to be negotiable at all, so far as would discharge prior equities. While there is no reason to suppose' Bewick, Comstock & Co. had any improper design, they are uot in a position to claim as bona fide holders, by endorsement, and it may be questioned whether they had not actual notice •enough to affect them. But this does not become important.
Upon the merits we have no doubt that the State officers ¡supposed they were dealing with -Minor, and never designed to sell or transfer the notes to a new holder. The minds of the parties never met on a sale, and there is no reason to believe that Mr. Yan Piper or the Commissioner would have been willing to make any arrangement except with their debtor. Minor was the only person on whom the State had ■any claim.
The subsequent dealings with Turnbull, when the Attorney General had no notice of any transfer of the notes-to Bewiclc, Comstock & Co., and when he knew there-had been no such endorsement as could transfer a legal title-were a distinct recognition and understanding that the compromise was abandoned, and we think the facts were sufficient to authorize its rescission. Whether the parties would have executed the formal certification which Mr. Turnbull expected we cannot of course determine, because he undertook to repudiate the revocation before the authorities at-Lansing had a chance to complete their share of the restoration of consideration. The recognition by Mr. Turnbull of the right to rescind, made in an entirely amicable interview, could not lose its force as evidence of the understanding of the parties by any personal offense well or ill founded, taken thereafter, and we are not called on to consider the personal issues concerning the authorship of the articles which have very properly been left out of evidence. We think there was no such arrangement understandingly made on the part of the State, as was meant to keep these notes alive in the hands of any new holder, and that the State officers did not suppose they were contracting with any one but Minor. This being so, no other person was brought into contract relations with the State.
It results from this that the State continued to own the notes, and was as between itself and Minor entitled to collect them. If there are equities to have the money refunded, in favor of McElroy or his assigns, they cannot be disposed of in this suit.
The decree must reversed, so far as it is in favor of Bewick and the Comstocks, and the fund must be paid over to the Land Commissioner, who will recover costs of both courts-against Bewick and the Comstocks.
The other Justices concurred. | [
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Campbell, J.
This suit in equity was brought by complainant as receiver under an insolvent assignment made January 29, 1883, by the firm of Leopold & Co. (consisting of Asa F. Leopold and Albert Austrian), to Robert Hart, who resigned the office of assignee. Its object is to set aside a chattel mortgage purporting to have been made on the 19th of the same month by Leopold & Co. to defendant, as fraudulent against creditors. The court below gave a decree in favor of complainant, setting aside the mortgage. From this decree defendant appealed.
It was claimed on the argument that the assignee could not attack the conveyances or other transfers of his assignors for fraud, and that the receiver stands in the same disability. However this may have been under the old system of voluntary assignments, our present statutes (How. Stat. ch. 303) have intervened to regulate the whole subject, and by sec- lion 3 [§ 8711] it is declared that the assignee may recover any property or equity which could be reached by creditors. This removes any difficulty, and authorizes such a suit as this.
Upon the case as presented by the record there is not much involved except a conflict of testimony. Upon the material questions the two partners are the chief witnesses, and contradict each other upon many facts. Upon others, which are quite important, they do not differ. The witness Leopold made out a plain case which, if true, would leave no doubt ■of the fraudulent character of the chattel mortgage in a legal point of view. Austrian’s testimony does not give the same •account of the later transactions. The circuit judge, who heard the testimony and saw the witnesses, was persuaded of the wrongful character of the dealings. We should feel disposed, in a conflict of testimony, to hesitate before disregarding his conclusions. Upon a careful examination of the record we feel satisfied with his determination. It will not be necessary to discuss the facts at length, beyond indicating in •a general way the character of the controversy.
The firm of Leopold & Co. was formed in the spring of 1882, and was at first composed of Leopold and one Kunkle, who were equal partners, and each put in $5000. Leopold borrowed his funds of his father, Aaron F. Leopold. In July, 1882, Kunkle sold his share to Albert Austrian for $5339.78. No inventory was made, but it seems to have been thought a good bargain for Austrian. The latter borrowed of Emil Hart, the dé'fendant, $6000 a part of which he paid Kunkle to make up the entire price left after applying some other funds, of about $1900 already turned over, and the balance it is claimed he put into the firm. This loan of $6000 was in two notes — one on demand, and one indorsed by Austrian’s brother, which matured a week or two before the mortgage in controversy.
On the 19th day of January, 1883, Leopold & Co. gave their firm chattel mortgage to defendant for this entire sum of $6000, with interest at ten per cent., payable the next May. This mortgage was recorded on the 23d of January. Some questions arose concerning the date of delivery, but in the view we take they are of minor importance. At the same time they executed a mortgage to Aaron F. Leopold for the $5000 which his son borrowed of him. Aaron Leopold does not appear to have asked or desired this, and has not claimed it, but has given it up.
A few days after these mortgages were given, Albert Austrian went to Chicago for the express purpose of trying to get extensions from creditors there, in which he did not succeed. He thereupon returned and the assignment was at once made. There is a conflict of testimony as to how far this assignment had been contemplated previously, in ease no extension should be granted, and also as to the supposed pecuniary condition of the firm. Austrian claims they were neither insolvent nor supposed to be, and that all of their difficulty grew out of failures to collect claims which were not supposed to be in peril when he went to Chicago. Leopold contradicts this very fully.
There was an inventory taken hy Hubert Hart, afterwards the assignee, in January, 1883, which at the full prices at which he then valued the assets, made them amount to $44,-844.39. This included debts due the firm of $17,890, which consisted chiefly of a large number of small accounts. The cash on hand was $2136.93, and the goods in stock were put at $19,407.06. The remaining assets, $5408.02, consisted of store, warehouse and barn, horses, store fixtures and the contents of the barn. The liabilities were summed up at $32,-844.39. This left an apparent balance of $12,003.32. The partners, as between themselves and the firm, seem to have stood on nearly the same footing, so as to he about equally interested, Leopold having about $520 more than Austrian. After the assignment the same Hobert Hart made an inventory in which he reduced the value of the same articles largely, appraising the goods at a reduction of about $3400, and the accounts, of nearly $8000. The whole amount of assigned assets which came into his hands was by his estimate about $23,000.
It will be seen from this that at the highest valuation, and making no discounts from the accounts, the firm, in January, 1883, was worth just about $12,000, which would give each of them $6000 if their accounts were even, but which left Austrian, by the books, worth a few hundred dollars less. Any shrinkage in values would of course reduce this balance of assets over liabilities.
Under these circumstances, on the 19th of January, 1883, if that is the true date, these partners gave to defendant a firm liability and chattel mortgage for $6000 to secure an individual debt of Austrian. Assuming as true the contradicted statement that it had been all along understood that the firm would be willing to do this, it is quite clear that up to this time it had not been done, and equally clear that there was no consideration moving to the firm to support it. It covered all and more than all of Austrian’s interest in the firm, at the .largest estimate made without shrinkage. At the same time a $5000 mortgage was made to Aaron Leopold for the debt due him by the other partner. The effect of this was to reduce the firm property to within a small amount of the nominal excess of assets over debts, and to put the available assets in the store out of reach of creditors, if the mortgages were to stand.
It was under these circumstances that Austrian went to Chicago to get an extension, and says that he had no idea of insolvency, although making the assignment a few days subsequently.
In our judgment his story is not probable, and if it were it would not remove some very serious facts. No man in his senses could imagine that there could be no risk of shrinkage in so large a body of scattered accounts, and no one could safely trust to meeting over $30,000 of debts out of a mortgaged stock and the real estate, horses and barn stock in the inventory. The direct effect of these mortgages was to withdraw nearly $12,000 from the partnership funds to which créditos had a right to look, for the personal benefit of the partners. That all this was done, and the stock tied up by mortgages under which it could be at once taken into the possession of the mortgagees, with no suspicion of insolvency, and no purpose of depriving creditors of their security, does not seem to us credible. The facts in their best aspect were such as to put it in the power of the mortgagees to wind up- and destroy the business at any time. If we consider what most business men would have thought of the available character and value of such assets thus incumbered, the result, would be unmistakable insolvency.
We have not thought it necessary to enlarge upon the details of testimony. The leading facts are so significant that, they seem inconsistent with any theory that would support, the transaction complained of.
We think the decree should be affirmed.
Cooley, C. J. concurred.
Champlin, J. There are but two questions of fact in this-case, namely : 1. Was the mortgage to Emil Hart given to-secure the individual debt of one of the members of the firm of Leopold & Co. at a time when the firm was insolvent? 2. Was the mortgage given to secure to Emil Hart a preference-over the other creditors of Leopold & Co., contrary to the-statute forbidding preferences in common-law assignments ?'
The facts to be determined under the first question are,, was the mortgage given for the individual debt of Albert Austrian ? and if so, was the firm solvent at the time ? In looking at the testimony I am strongly impressed that there-must be some mistake about Albert’s borrowing from defendant two sums of three thousand dollars each. Albert testifies that he borrowed $6000 from defendant for the express purpose of purchasing E-unkle’s interest in the firm of Leopold & Eunkle, which was agreed upon at $5339.781 He says also that he had about $2000 of his own means which he used in the purchase, and gave his notes to Runkle; one-for $1000 payable July 15, and one for $2339.78 payable September 1,1882. Now it will be seen that he needed only to borrow $3000 to pay Runkle aside from his own means, and that was the sum he asked for and obtained from defendant for that purpose. This amount was not obtained from defendant until September, at which time the amount going; to Runkle matured, and Runkle swears it was paid according to agreement. Why then should Albert Austrian borrow from defendant in October another $3000 to pay Runkle ?
Both defendant and Albert swear that at the time he gave the note on demand in September, Albert agreed that defendant should have security therefor whenever he desired. If the note given in October, instead of being for a new loan, was made with the brother of Albert as indorser and delivered as security for the first note, I can then understand why in all the subsequent transactions down to January 12 the request was always made for security by the firm of this indorsed note both by defendant and the indorser, but never a request by defendant that the unsecured note should be secured. Moreover defendant, when asked where the first note was, replied that it might be among his papers somewhere ; he did not know exactly where.
Austrian claims that he used the $6000 in paying Runkle, and that the balance he put into the firm ; but an examination of his private account and his stock account fails to disclose any such fact. He swears the books show the amounts he put into the firm. The books do not show that he put in three thousand dollars in money over the amount paid for Runkle’s interest. It rests therefore upon his own assertion, unsupported by other testimony.
He is equally at fault with his explanation of his stock account and the manner in which he paid Runkle. He is credited under date of July 11, 1882, with $813.98 “ by Geo. Runkle’s stock.” He is asked what this credit represents. He replies: “It was George Runkle’s stock account, and taking his private account; that is what I paid George Runkle for; that is a part of the $5300.” And he further says that the balance of Runkle’s interest was estimated at $1500 and represented his profits in the business and merchandise, “and on the inventory entered January 6th brings in where I paid him $1500.” His counsel then asks: “ It is a little less than $1500, is it?” Answer. “Yes; that is where I made a mistake by not taking the stock.” The fact is that this item under date of January 6th is not a cash item at all, and has no relation to the money paid to Bunkle, but is entered as an item of profit, $4462.70, and the same amount is credited to Leopold under the same date.
I have no doubt however but that three thousand dollars of the six is a bona fide indebtedness, and that it was assumed by the firm as early as January 12, 1883, when the entry was made upon the books of the indebtedness of six thousand dollars; and conceding this and also that five thousand debars of the individual debt of Leopold was at the same time assumed by the firm, the inquiry remains as to the solvency of the firm on the 19th of January, 1883.
In examining this question I shall take the definition of insolvency laid down by Lindley on Partnership to the effect that an insolvent firm is one in which the joint assets are less than the joint liabilities, and in consequence thereof it is unable to pay. Volume 2, p. 736, note. But in considering the liabilities, the amount of the assumed debts must be included ; for if these with the other liabilities absorb all the assets and render the firm practically insolvent, it is plain to see that such act would be a fraud upon the creditors of the firm. We must look not only at the act itself, but at the effect of the act upon the rights of the creditors of the firm, and if its necessary results are to wreck the partnership, it is plain to be seen that it injuriously affects the firm creditors. To illustrate : Suppose a firm has assets valued at terr thousand dollars, and liabilities of eight thousand 'dollars. According to the test laid down by Lindley on Partnership the firm would be solvent. Would they have the right to assume an individual debt of one of the partners for five thousand dollars, and by this act render the firm insolvent % Could not the firm creditors contest the right of the creditor of the individual partner to share in the firm assets?
In this case Austrian testifies to the assets and liabilities on the 9th of January, 1883, and states them as follows:
ASSETS.
Cash on hand $ 2.136 93
Accounts 38
Merchandise 19,409 06
■Store fixtures . . . . $ 723 02
New store..... 3,150 89
Barn ace. .....964 00
Barn building .... 205 33
Warehouse..... 364 78
Total assets . . . $44,844 39
LIABILITIES.
Bills payable.....$29,791 07
A. F. Leopold .... 3,050 00
$32,841 07
Add to this the indebtedness assumed
January 12, ’83, viz.:
Emil Hart.....$ 6,000 00
A. F. Leopold..... 5,000 00
Total liabilities . . $43,841 07
This statement shows that by assuming the individual debts of the partners the entire resources of the firm were exhausted into about one thousand dollars.
The result reached above agrees also with the testimony of the receiver, who prepared and put in evidence a statement of resources and liabilities as shown by the books of the firm on the 29th day of January, 1883, by which it appears that the assets and liabilities on that day exactly equaled each other, amounting in the aggregate to $39,724.91.
But all parties interested in having the firm assume these debts knew at the time that the assets of the firm were not worth their inventoried value. A large amount of the assets consisted of debts due from men laboring in the mines. When the mining companies paid promptly, they paid promptly; but several of the companies were in arrear for three months, and the effect on the business of the firm had been of the most depressing nature. They found they should be unable to meet their engagements. They were unable to collect the indebtedness due them from the miners, even by resorting, as Austrian swears, to attaching the trunks and even the bibles of some of these debtors.
When the assignment was made on the 29 th of January, 1883, an inventory of the assets was annexed, verified by the oath of Austrian, showing the original cost and the value at the time of making the assignment, in which he places the aggregate value of the assets, at original cost, at $34,740.13, and the real value at $22,970.55. It would be absurd to claim that this depreciation, all occurred in ten days preceding the assignment. More than half of the assets consisted of outstanding accounts, of the face value of $17,973.88, and which he states to be of the real value of $10,000. The men’s furnishing goods, boots and shoes, 'and dry goods he states were worth twenty-five per cent, less, and clothing fifty per cent, less than the original cost.
Can it be said, in view of these facts, that the parties acted in good faith and believed themselves solvent when they assumed individual indebtedness of $11,000, when the real value of the firm assets was $22,970.55 and their liabilities $32,841.07 % They must be held bound to know the true financial condition of the firm, and while they profess to deceive themselves by inventories at cost prices, they cannot bo permitted to deceive the public or creditors by any display of fictitious values. It is claimed by Austrian that they made during the short time they were in business a gross profit of $17,028.05, and a net profit of $8925.40, and that their inventory showed such to be the fact. Accordingly, we find entered to the credit of each partner, January 6, 1883, $4462.70. Austrian’s testimony shows that no such profits were made. He purchased Runkle’s interest July 1st, which included his share of the profits to that time, for $5339.78, which represents one-half of the net assets at that time. The whole, therefore, would be $10,679.56.
The total assets January 9th, as per inventory, were .... $44,844 39
Total liabilities .... 32,841 07
Net assets, January 9, 1883 . $12,003 32
Deduct net assets, July 6, 1882 . 10,679 56
Leaves net gain . $ 1,323 76
This is what the inventory shows, instead of $8925.40.
The equity arising in favor of partnership creditors to have the partnership property first applied in satisfaction of their debts, is to be wrought out through the partners. They have no direct lien on the partnership assets which equity can enforce, except such as is based upon the rights of either partner to compel their application to the payment of the firm debts. The firm may, by mutual assent of the partners, assume the individual debt of one partner, and when this is done it becomes a debt against the firm, and the creditor acquires all the equities of a partnership creditor, if the transaction is bona fide, and not done for the purpose of defrauding other creditors of the firm. To effect this substitution in favor of the creditor, however, the debt against the individual partner must be discharged, and the firm substituted in his place as debtor. The transfer must be based upon a good consideration. If it be by way of security only it will not admit such creditor to an equal footing with the other creditors of the firm, because there has been no substitution from a creditor of the individual to the creditor of the firm.
Aside, then, from the consideration of the bona fides of the assumption of this debt by the firm, arises the question whether the debt was absolutely assumed, or whether it was only as a security for the debt of the one partner to the defendant. The testimony shows beyond all question that it was assumed only by way of security.
Defendant testifies that it was the understanding, when he loaned the money to Austrian, that at any time he wanted security from the firm he could have it, and that afterwards, when the note matured, Austrian told him he would see that the firm would give him another note or secure it in some way. And he says that the indorser was also urging his brother to give defendant other security in place of his indorsement. After the firm note was given, the defendant still retained in his possession the individual notes of Albert Austrian, and so far as appears, he is still the holder of them. This being so, I think the firm creditors have an equity superior to defendant’s in the application of the assets to the payment of their debts.
I am also of the opinion that the chattel mortgage given to the defendant should be held void as giving to defendant a preference contrary to the statute. It was made so near in point of time, it was so evidently a part of the purpose contemplated by partners and by defendant, that it must be considered as part of one and the same transaction.
Defendant testifies that he knew what the inventory of January, 1883, showed ; he knew of the depression in trade; he must have known, as a business man, that the large amount of the assets standing in open accounts against laborers in the mines was subject to great depreciation. He must have regarded them no better than such accounts of merchants generally. He was himself a merchant. His great anxiety to obtain security as early as January of a note already secured by indorsement, in which he was seconded by the indorser, who was a brother of one of the firm, and himself closely related, shows conclusively his distrust of their financial soundness and ability to continue business.
The fact that one of the firm swears that at the time they gave the security they contemplated an assignment, and the other that they were compelled to assign unless they obtained an extension, which is readily seen could not be obtained if the creditors knew of the mortgages, all conduce to prove that the mortgage and the assignment were part of the same scheme, and that by taking such mortgage defendant knew, or must under the evidence .be held to have known that the very act of taking his chattel mortgage would force his creditors to make the assignment and secure to him a preference over other creditors of the firm.
Had the mortgage been taken by the defendant as security for a firm debt, without knowledge or notice of the insolvency of the partners and of their intent to make an assignment, it would have been valid in his hands. But a person cannot be permitted to evade the provisions of the law-forbidding preferences by taking security from his debtor who is insolvent, while he is cognizant of his debtor’s financial con dition and of his contemplated assignment, although a few days may intervene before its consummation.
I am forced to the conclusion, from all the evidence before us, that the defendant occupies the latter position, and that the decree appealed from should be
Affirmed with costs.
Cooley, C. J. concurred.
Sherwood, J. The complainant in this case seeks by his bill to set aside, as fraudulent and against the statute, a certain chattel mortgage made by Asa F. Leopold and Albert Austrian, a company whose firm name was Leopold & Co., to the defendant, upon a stock of dry goods, notions, provisions, crockery and glassware, given on the 19th day of January, 1883, to secure the payment of $6000 on the first day of May following. The mortgage was duly filed on the 23d day of January, 1883. Emil Hart was the brother-in-law of Albert Austrian at the time of giving this mortgage. The firm also made another mortgage at the same time to Aaron F. Leopold, father of Asa, for the sum of $5000. This mortgage was also payable on the first day of May following, and both mortgages were given upon the partnership property.
On the 29th day of January, 1883, Leopold & Co. made a general assignment of all their property, for the benefit of their creditors to Eohert Hart, brother of the defendant, under the statute of 18J9. Hart went into possession of the goods and property transferred under the assignment and thereafter resigned his trust on the 20th day of February, 1883. Complainant was appointed receiver, and on the 16th of April following took possession of the assigned property and has since continued to discharge that trust, and as such receiver brings this suit.
The complainant avers in his bill.
1st. That the mortgage to Emil Hart was not given to secure a debt of the firm, but the private debt of Austrian to Hart, and that the partnership received no consideration therefor.
2d. That the firm was insolvent when the mortgage was made; that they knew such to be the fact, and made the assignment in contemplation of such insolvency.
3d. That the giving of the mortgage and making the assign, ment was virtually one transaction, and in violation of thé statute prohibiting preferences.
4th. That it appropriates the funds of an insolvent partnership to the payment of individual debts.
Complainant claims that for these four reasons said mortgage is invalid.
The defendant in his answer denies the facts stated in each of these four averments, and in regard to the first says the firm assumed the payment of the $6000 to him before the mortgage was made; that it was so done by an agreement with the members of the firm and himself.
In regard to the second averment he says the assignment was not contemplated, nor did the firm know that they were insolvent at the time the mortgage was made, nor were they in fact insolvent.
As to the third averment the defendant says that the giving of the mortgage and the making of the assignment were not one transaction; that when the firm made the mortgage they had no thought of making the assignment.
And as to the fourth averment he says that the mortgage was not given to secure the payment of the individual debt of Austrian, or that defendant ever admitted such to be the fact, but that on the contrary it was the debt of the firm.
Thus it will be seen that the material facts charged being all denied by the defendant, the complainant must rely upon the preponderance of his evidence to maintain the decree which was in his favor at the circuit.
The proofs show that in March, 1882, Asa F. Leopold and George F. Kunkle were engaged as copartners in the business . of general merchandising at Crystal Falls in the county of Marquette. They were to share equally the loss and profits in the business. Leopold put into the business $5000 which he borrowed of his father, Aaron F. Leopold.
In July following Runkle sold out his interest in the co-partnership and its business to Albert Austrian, who was received by Leopold as partner upon the same terms as Runlde, and their business was continued under the firm name of Leopold & Oo. Austrian paid Runkle for his interest $5339.78, which was less than it was worth. Runkle left Leopold and their business because he was dissatisfied with Leopold.
When Austrian purchased he paid Runkle $1500 in money and $450 in iron company stock, and gave his notes for the balance, to pay which he hired $6000 of the defendant and used the remainder, about $2000, in the business of the firm.
There was no inventory taken of the stock, which was new when he purchased. The firm was and had been doing a prosperous business. Austrian examined the stock and the accounts and books showing the situation of the business, and bought upon such inspection and the information he had obtained.
When the $6000 was obtained from the defendant it was with the understanding with the defendant that it was for the purchase of the Runkle interest and to be used in the business, and that he could have the firm responsibility for its payment if not paid when due.
The firm took an inventory which was completed about the 7th or 8th of January, 1883, showing the assets to be $44,844.39 and the liabilities $32,841.07, with cash on hand to the amount of $2136.93. The inventory showed a gross profit of $17,028.05 and a net profit of $8925.40. This showing was made from ten months’ business.
It further appears from the testimony that a half interest in the stock and business was at that time worth $7000, and could have been sold for that sum. Indeed it appears that the defendant, after having made a careful examination of the stock, stood ready to pay that amount for it.
On the 9th day of January Austrian’s note to Hart became due, and Austrian not having the means to meet it the indebtedness was assumed by the firm, as was also the debt Leopold owed his father for means with which he started in business, and the proper entries of these amounts as indebtedness of the firm were made accordingly. On the 19th day of January thereafter a firm note was given to the defendant for the $6000 thus assumed, and two chattel mortgages were given by the firm to secure the amounts going severally to the defendant and Leopold’s father. On account of the death of the township clerk the filing of the mortgages was delayed until the 23d of January, when they appear to have been filed.
The record also shows that subsequently and on the 21st day of January the firm gave a chattel mortgage to the Manitou Iron Mining Company for $700.
During the interim between the time of taking the inventory and the time of making and filing the defendant’s chattel mortgage several of the largest debtors to the firm stopped payment, and collections came in slowly; in consequence of which, and in anticipation of further delays Austrian went to Chicago to obtain an extension of time on their indebtedness, but could succeed with only a part of the creditors and returned, having failed to accomplish the object of his visit. On his return he met his partner Leopold on the road, and after canvassing the prospect of making collections and having doubts about their ability to meet their indebtedness promptly, decided to make an assignment and accordingly did so on the 29th day of January following.
It further appears that at the time these mortgages were made the partners believed themselves to be solvent, as did the defendant; that they were so in fact; that they did not make these mortgages to cheat or defraud any of their creditors, or in contemplation of insolvency; that the firm actually received the money for which the mortgages were given; and that they were given in good faith to secure the payment of such indebtedness. It is true there is testimony in the case given by the partner Leopold contradicting several of the important facts testified to by Austrian and necessary to sustain the foregoing conclusions; but there is a recklessness and want of candor both in the manner and statements of Leopold upon the stand, which very much depreciate the weight to be given to his testimony; and the other testimony I think, by a clear preponderance, confirms the statements made by Austrian.
Besides the partners, the defendant Bunkle, the assignee Iiart and the plaintiff were sworn. None of the witnesses depreciate the value of the stock more than is usual in such cases, and some of them not so much. It is safe to say that in a majority of cases when the assigned goods are new, the depreciation is fifty per cent, and over; and I think it is apparent from the evidence that the value of a large portion of the assets depended upon the prosperity of the mining business; and the sudden panic in the iron trade in the month of January, 1883, and after the mortgage was given, greatly reduced the value of the assets.
I have been unable in the examination of this case to discover any fraud, actual or legal, on the part of Leopold & Co., or on the part of the defendant, which should be held to invalidate the defendant’s mortgage. The surrender by Aaron F. Leopold of his personal securities to the receiver is a fact immaterial to the issue and has no bearing one way or the other. He was not sworn and does not tell us why he surrendered them; but the fact appears I think that his son Asa is inimical towards Austrian and the defendant, and seems quite willing that complainant should be successful in defeating the defendant’s mortgage. The fact that Aaron’s claim was mostly secured by mortgage upon real estate may throw some light upon the subject; and in this connection it will be observed by inspection of the record that no reason is given why the validity of the Manitou Iron Company’s mortgage was not attacked, but so far as appears it was paid by the receiver without question though made several days after defendant’s mortgages.
I do not think the complainant has shown by a preponderance of the evidence that the mortgage in question was given to secure Austrian’s private debt; the money was all used by Austrian in the purchase of goods or in the business of the firm and for its benefit. Neither was it executed in contemplation of insolvency, but it was believed at that time that they had sufficient assets to collect to pay their debts.
The firm, at the time the mortgage was made, had assets considerably in excess of its indebtedness, including the mortgage of defendant and cash on hand, and it does not appear that they were pressed for payment when they did not pay. Up to the time of making the assignment they paid $1800 indebtedness after making the mortgage and before the time the assignment was made. No material change is shown in the financial condition of the firm after the January inventory was made, which was conceded by both parties to be correct, and shows them solvent. I do not think, under such circumstances, they could be regarded as insolvent. An insolvent firm is one in which the joint assets are less than the joint liabilities, and in consequence thereof, it is unable to pay. 2 Lindl. Partn. T36, note b. Neither of these things had occurred when the defendant’s mortgage was made.
Tins relieves the case of any legal fraud, and no actual fraud is charged in the bill. This view substantially disposes of the case. A partnership, unless otherwise provided by statute, is liable to third persons, whether creditors ox-otherwise, in the same manner and to the same extent as individuals; and while the firm is solvent the creditors have no more a lien upon the debtox-’s goods in the case of a partnership than in the case of an individual; and while the firm is solvent it may assume the payment of any debt it chooses, as between it and the Creditors, and I see nothing in the statute referred to by counsel changing the common law upon this subject.
It is the x-ight of each partner to have the partixex-ship funds, when necessary, applied to the payment of the partnership debts; but this is a question between them, and with which the creditors óf a solvent firm have nothing to do. Under the statute, it is only when a lien is created equally in favor of all the creditors by the firm’s insolvency that-a creditor is ¡xrohibited from securing his claim in full, and it is only when a mortgage obtained by such creditors constitutes a part of the assignment of the insolvent firm that it is obnoxioxxs to the statute; but such is not this case. Nor does the case show any superior equities in the other creditors whom, it is claimed, the receiver represents. In this case, as I have said, no fraud is shown ; the indebtedness upon the mortgage was bona fide; the amount was originally the indebtedness of the partners for the fund which constituted his share of the stock upon which the business was conducted, and subsequently a part of it was for moneys actually used by the firm ; and when the loan was made, it was with the assurance of Austrian, and which, he says, was consented to by Leopold, that the firm should secure it when Hart desired; and when the assumption of the debt actually occurred, which was several months before the mortgage was made, there is no pretense but that the firm was solvent; no creditor could, by trusting the firm for goods subsequently sold, acquire a superior equity to the individual who, under such circumstances, furnished the capital to one of the partners to carry on the business transactions of the firm. Reeves v. Ayers 38 Ill. 418.
There is nothing in the case raising any presumption of law that the conveyance to the defendant was invalid, but, on the contrary, the presumptions are in its favor. There is 'nothing to prohibit one creditor from obtaining security for his honest debt when the firm is solvent, no matter what may be the subsequent effect as to other creditors; nor is there anything in the statute applicable to this case forbidding his doing so.
The receiver is intrusted in this ease with the execution of the assignment. The point is made by counsel that he has no legal right to maintain this action, because he cannot attack tlio validity of the mortgages. It is claimed, however, upon the other side, that the statute confers upon him the authority. Independently of the statute he could not do it: Wakeman v. Barrows 41 Mich. 363; Millar v. Babcock 25 Mich. 137; Voorhies v. Frisbie 25 Mich. 476 ; and I do not think it was the intention of the statute to confer such authority. How. Stat. § 8739. It is not claimed that there was any fraud in the assignment. Section 8744, therefore, does not apply.
The decree should be reversed with costs of both courts and the bill dismissed. | [
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Cooley, C. J.
This suit originated in justice’s court, where the plaintiff declared orally, and as the justice returns, “stated the particulars of his claim under the common counts for the sawing of 66,339 feet of lumber at $2.50 per M.; for board of one man four weeks $13.56, and one M. feet cull lumber, $3.” The defendants pleaded the general issue, and ■claimed damages of the plaintiff for failure to saw the lumber in accordance with the contract.
After trial and judgment in the justice’s court the case was appealed, and the plaintiff was permitted to prove an item for eight weeks’ board, amounting to $25.25. This was objected to by the defendants, and was erroneous. The plaintiff should have been restricted in the circuit court to the particulars of his claim as they stood of record.
The principal controversy arose upon the contract for sawing and its performance. The contract was in writing, and bore date December 2, 1882. By its terms plaintiff was to saw “all the pine logs put on his skid ways at his millón section 22, Nelson township, Kent Oo., Michigan,” by certain named parties for defendants, “ and to saw and manufacture said logs in a workmanlike manner into lumber, and into such widths and thicknesses as said logs are best suited for,” by a time named, and for the agreed price of two dollars fifty cents per thousand feet. The plaintiff claimed performance of the contract, and gave evidence that the lumber was sawed in a workmanlike manner. He also showed that the mill was a portable mill, not capable of doing the best work, but that defendant Russell & Rudes, who was. agent for defendants, knew all about the mill when the contract was made and while the work was being done, and saw the lumber that was sawed, and took away from time to time what was cut and paid for the cutting without objection. It was then claimed that the terms of the contract must be understood as contemplating the cutting of the lumber by this particular mill, and that if it was cut as well as such a mill was capable of cutting it, it was sufficient. Also that in so-far as the defendants had removed the lumber and paid for the cutting, they were precluded from making objections.
The defendant Russell testified that when the contract was made he had very little knowledge of the plaintiff’s mill: he only knew it was a new mill, but he had no knowledge of the machinery. Also that he complained of some of the sawing because the boards were too thin, and plaintiff promised to remedy the defect. Also that the lumber was taken away by defendants without much examination, and that Rudes was not the general agent of defendants.
In submitting the case to the jury the judge said to them that “both parties knowing all the circumstances of the sawmill, the contract was made with reference to the cutting of the logs at that particular* mill. It is however to be presumed that it is a good ordinary mill of its kind, and it was the duty of the plaintiff to make .merchantable lumber; to saw the lumber in workmanlike manner, as well as could be with the materials at his disposal in said mill. The kind of a mill or kind of logs is not material so long, as the court has before stated, it was presumed by both parties — the defendants had a right to presume — that it was a saw-mill which could do reasonably good work: and as was said before, it was the duty of the plaintiff to make use of all the appliances which he had at hand, bearing in mind that it was a reasonably good mill of the kind. It was his duty to make as good lumber as he could with the mill and its appliances, using all reasonable care himself and his men that he had in his employ to run the mill in the proper manner, and make as good lumber as he could with due and ordinary care.”
This instruction was erroneous in its assumption that both parties “ knew all the circumstances of the saw-mill,” andi must therefore be understood to have contracted with reference to any existing deficiencies. Whether the defendants, had knowledge of any deficiencies was disputed ; and it was. for the jury to determine the fact.
It was also erroneous- in giving the jury to understand that, the- contract was sufficiently complied with if the plaintiff made as good lumber as he could with the mill and its-appliances. This error follows from the other, and assumes the fact to be proved.
The mill at which the lumber was to be sawed was a portable mill; and if that kind 5f a mill is incapable of doing the best work, the best could not have been expected by the defendants. But this is as far as the court could properly have gone in instructing the jury to make allowances for the character of the work done. There was no admission by defendants that they knew the mill to, be defective or incapable of manufacturing lumber in a workmanlike manner. The jiidge says the defendants had a right to presume the mill could do “ reasonably good work;” but in connection with other remarks this must mean such reasonably good work as the particular mill with the circumstances of which the defendants were acquainted, could do; and it might or might not be work done in the workmanlike manner the defendants had a right to insist upon.
The instruction given in respect to the effect of payments was in substance correct. The jury were told that if defendants accepted lumber and paid for it from time to time with the intention of having the several payments cancel the indebtedness up to the times of making them, the defendants would be bound by the acceptance, and estopped from raising the question of damages afterwards. The acceptance would not in strictness be an estoppel under such circum stances, but the jury' ought to regard it as conclusive, and probably would do so.
For the errors mentioned there must be a new trial.
The other Justices concurred. | [
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Per Curiam.
Suit on the bond of a residuary legatee, which was conditioned to pay the debts of the testator. The plaintiff by his declaration alleged as a breach the failure to pay a claim which had been allowed in his favor by the probate judge. Afterwards, against the objection of the defendants, he was allowed to add to his declaration a count alleging as the breach the failure to pay a note held by him, and which constituted the claim which had been allowed in his favor. The note was more than six years overdue when the amendment was allowed. The defendants now apply for mandamus to compel the vacating of the ordel permitting amendment.
Held, that as the plaintiff had not been allowed to bring in by his amendment any new cause of action, the motion should be denied. | [
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Sherwood, J.
This action was brought in justice’s court for false imprisonment, appealed to the circuit court, and upon the trial in both courts the plaintiff had judgment. The-defendant brings error.
It is claimed' by the plaintiff that the defendant wrongfully caused and directed his arrest in two cases — one a civil and the other a criminal suit; the defendant being plaintiff in the one and complaining witness in the other; but it is. not claimed that he acted maliciously in either. The record contains all the evidence bearing upon the' questions raised,, and from which it appears, by that offered by the plaintiff', that the arrests were made by a constable upon a warrant, issued by a justice of the peace and delivered to him by the defendant, but we cannot say that the defendant asked or directed him to make the arrests, or was present when the arrests were made. Neither the complaints nor warrants-were put in evidence on the trial.
It does not appear that the officer arrested the plaintiff by-reason of anything the defendant said'to him,'but by virtue-of his warrant which he subsequently returned to the court. In the absence of testimony upon the subject we cannot, under the circumstances, presume the court acted illegally in taking the complaints or in issuing the warrants, the evidence-of which was given by the plaintiff; but on the contrary,, the rule that.“regular official action” will be presumed applies to a magistrate’s court, and must be observed in this-case.
No question having been raised as -to the subject-matter being within the jurisdiction of the justice, and the defendant having acted in good faith, we think he was entitled to have his several requests given to the jury as asked, and the failure of the court to comply was error. The cases cited by defendant’s counsel fully sustain these views. '
The judgment must be reversed and new trial granted.
The other Justices concurred.
The defendant’s counsel requested the court to charge the jury as fob lows: First. That if you find that the defendant gave the officer a warrant, and the plaintiff was arrested on that warrant, that the presumption in such a case would be in favor of that warrant being a legal warrant. Second. If the jury find from the plaintiff’s own proof that defendant gave an officer a warrant, and the arrest was un'der such warrant, the presumption is in favor of the warrant being a legal one. Third. And if you find, that plaintiff was legally arrested, no damages can be recovered by the plaintiff. | [
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Champlin, J.
This is an application for a writ of mandamus to compel the circuit judge to hear a cause and proceed to judgment in a suit where the relator is plaintiff and John C. Davis is defendant. The facts are that John C. Davis is a non-resident of this State, but resides at Madison in the state of Indiana. On the 12th day of December, A. D. 1883, relator sued out of the circuit court for the county of Wayne a writ of summons against the said John G. Davis, in an action of assumpsit to recover the aihount claimed to be due on an open account, which summons was returnable January 1, 1884-, and was on the 2d day of January duly returned “ not found ” as to said defendant. On December 12,1883, the relator made and caused to be filed in said court four several affidavits in garnishment, in compliance with How. Stat. § 8087 (a copy of which section is given in the margin ), and also on the same day caused to be issued four several writs of garnishment against the persons alleged in the affidavits to be indebted to Davis. Disclosures were filed by the garnishees, two of whom demanded trial of the garnishees’ liability, and the issues so framed stand for hearing. The disclosures show that if any liability exists it is on account of the garnishees’ being indebted to Davis, and not on account of any money or property in their hands belonging to him. On January 16, 1881, relator caused to be delivered and personally served on the principal defendant, John C. Davis, at Madison in the state of Indiana, a true copy of the summons, affidavits and writs of garnishment, with return of service thereon, and with a written notice attached, signed by the plaintiff’s attor■ney, and stating that said John C. Davis is notified to appear and defend said suit within thirty days after service of a true copy of said papers as thereto attached, or his default would be entered and judgment taken. Due.proof of this service was filed on the 24th of January. Within twenty days after the return-day of the summons the declaration was filed; and Davis not having caused his appearance to be entered within thirty days after service on him of the papers, the plaintiff entered his default for want of an appearance, plea or demurrer, and afterwards he entered a second default and order, making the same absolute, and referring it to the court to assess his damages. He afterwards applied for and obtained: a commission, and took a deposition of a witness in the city of Cincinnati, which was returned and filed on the 6th day of May, 1884. The relator made application to the respondent, then sitting as circuit judge, to proceed to hear said-cause, and offered to put in evidence the deposition and files and record in the garnishee causes, and requested said circuit judge to render a judgment in said principal case. The circuit judge declined to direct judgment to be entered against the principal defendant, for want of jurisdiction in the court for the reason that no service of process had been made on said defendant within the State, nor had his property been attached, as provided by law, in such manner as authorized judgment to be entered against such defendant. -
Under the statute regulating the practice in garnishee cases,. the plaintiff can proceed no farther against the garnishees until he has obtained judgment against the principal defendant. In case of non-resident defendants, § 8087 provides that, upon filing an affidavit of such service, further proceedings to judgment may be had as in ordinary personal actions; and by § 8106 it is provided that, in all cases when the principal defendant does not appear-in the cause within the time fixed by the statute and rules of court for such appearance, the plaintiff shall proceed and perfect his judgment against such principal defendant as soon as he shall be entitled thereto' under the rules and practice of the court.
The question raised is whether-the courts of this State can acquire jurisdiction to render a personal judgment against a defendant where he is a non-resident and is not served with process within its jurisdiction, but is served out of the jurisdiction with notice of suit having been commenced against him, and of garnishee proceedings against his debtors residing within the jurisdiction. So far as such power can be given by statute to the court to proceed to judgment, there can be no question but that it is conferred in this case.
It is a well-recognized principle that every state possesses exclusive jurisdiction and sovereignty over persons and property within its territory, and it may make laws to subject property situated within its limits, owned by non-residents, to the payment of claims due to its own citizens from them. Such legislation is based upon the necessity of the case and the injustice which would result from permitting non-resident debtors to withdraw their property or assets from the jurisdiction of the State, and is a legitimate exercise'of its authority to hold and appropriate the property of such debtors to satisfy the claims of its own citizens. 1 Smith’s Lead. Oas. (7th ed.) 1121 et seq. In the absence of personal service upon the non-resident defendant within the jurisdiction of the court or his voluntary appearance in the suit, the jurisdiction can extend no farther than an inquiry as to the amount of the obligation of the non-resident to its own citizens for the purpose of showing the extent necessary to control the disposition of the property. Picquet v. Swan 5 Mas. 35; Boswell's Lessee v. Otis 9 How. 336; Cooper v. Reynolds 10 Wall. 308; Pennoyer v. Neff 95 U. S. 714; Freeman on Judgments § 573; Whart. Confl. Laws §§ 649, 715; Amer. Lead. Cases (5th ed.) 625 et seq. Jurisdiction in such cases is upheld mainly upon the ground that , the object of the proceedings is to subject certain specified property to the payment of the demand, and are substantially proceedings in rem against the property, and are justified by principles underlying such proceedings. Whart. Confl. Laws § 717; Waples on Proceedings in Bern, ch. 55, and cases cited above.
One of the essential requirements to sustain proceedings in rem is that notice shall be given, either general to all the world, or special to the parties interested. The statute under consideration provides for such notice, and that it shall be served upon the party interested, and proof thereof filed before judgment can be entered. The defendant was apprised that proceedings were instituted for the purpose of reaching credits belonging to him in Michigan, and an opportunity was afforded of appearing and opposing any adjudication either against him or against his credits in possession of his debtors. He. did not appear, and the statute authorized the plaintiff to proceed to judgment as a part of the mode of proceeding to subject the defendant’s credits in the hands of the garnishee to the payment of plaintiff’s demand. For that purpose and to that extent the judgment rendered pursuant to the statute will protect the garnishee against liability over to the principal defendant for the amount of any judgment rendered against him in the garnishee proceedings.
The question does not arise upon this record, and we do not feel called upon to discuss the validity of such judgment if called in question in courts outside of the State of Michigan. Within the State the court has ample power to control its process and confine the proceedings under it to the property reached by garnishment.
The learned circuit judge informs us in his answer that his refusal to render judgment was based upon the cases of McCloskey v. Judge of Wayne Circuit Court 26 Mich. 100 and American Express Co. v. Judge of Wayne Circuit Court, not reported, in which cases motions for writs of prohibition were made. In the McCloskey case it was held that the Wayne circuit court failed to acquire jurisdiction because no service was made upon the defendant, and no person was garnished in that county. It was said: “To give jurisdiction for the purpose of supporting the garnishee proceedings, it is necessary that some sort of service as to the principal defendant should be made within the county, either upon the person or upon property or credits. Merely taking out a summons which is never served, is not enough. The statute which authorizes the service of notice out of the State presupposes that some sort of service has been made in the county, giving the court jurisdiction ; and the notice is required for the purpose of fairness and to preclude secret and collusive proceedings.” In the case under consideration service was had upon the garnishees in Wayne county, thus giving to the court jurisdiction, and obviating the objection raised in the case cited.
American Express Co. v. Judge of Wayne Circuit Court, above referred to, was this: The American Express Company was a joint-stock association, created and existing under the laws of the state of New York. It did business in the State of Michigan, as well as in other states. The Eagle Mowing & Neaping Machine Company was also a corporation organized and existing under the laws of the state of New York. On the 18th da}' of January, 1879, Charles B. Lothrop filed in the Wayne circuit court, as commencement of suit, a declaration, with rule to plead, entered as provided by law. On the same day an affidavit of the attorney was filed in the cause, setting forth that the American Express Company had money, goods, chattels, credits and effects in its hands or under its control, belonging to the defendant, The Eagle Mowing & Neaping Machine Company, and that said company was indebted to plaintiff. This affidavit was in proper form, and contained the necessary averments required by § 8087 above set forth; and thereupon a writ of garnishment was issued out of said court, returnable on the 4th day ■of February, 1879, and was served upon J. Sherwood Hubbard, the attorney in fact of the American Express Company, which was the only service of garnishee process made in said cause. He was appointed by the express company, under Comp. L. (1871) § 1624, to receive service of process, and the extent of his authority for that purpose is prescribed by the section named. He assumed to and did file a disclosure, in which he set forth that the company had no money, property, goods, chattels or effects in its hands, or under its control, belonging to said Eagle Mowing & Neaping Machine Company, other than a package that was delivered to said express company at Albany, New York, by said Eágle Mowing & Neaping Machine Company, marked as containing papers addressed to Frank Stewart, care of American Express Company, Jackson, Michigan, and that such package was then in the possession and under the control of the American Express Company; that such package was sealed and contents unknown ; that said express company was informed that the same was the property of the Eagle Mowing & Neaping Machine Company, but it had no knowledge as to the ownership of said contents and did not admit that the same belongs to the said Eagle Mowing & Reaping Machine Company.
No exceptions to said disclosure or special interrogatories were filed. There was no personal service of process upon the principal defendant in the State, but the notice and copies-of papers required by § 8087 were served upon the president, of the company at Albany in the state of New York, and the corporation not appearing, its default was entered, made-absolute, and judgment rendered for $6307.87and costs against, it. The package above referred to contained promissory notes made by various persons, and belonged to the principal defendant and was at Jackson when the writ of garnishment was served on said Iiubbard. The petition in this Court set. forth the above facts and also that the plaintiff threatened tO' apply for a receiver to take possession of and sell said property, and claimed that the Wayne circuit court was without, jurisdiction to proceed and prayed for a writ of prohibition, which was granted. No opinion was filed stating the reasons upon which the order was made; but it is apparent from the foregoing recital that no jurisdiction was obtained, for the reasons stated in the case of McCloskey, 26 Mich. 100. There was no service upon either party in Wayne county. The service upon Hubbard was ineffectual, for the reason that the statute did not authorize service of garnishee process upon him. The statute (Comp. L. § 1624) required the foreign express company to appoint an attorney in fact on whom process might be served “ for the purpose of commencing actions upon any liability or indebtedness incurred or contracted while such company, etc., transacted business in this State.” Garnishee process is not an action commenced upon any liability or indebtedness incurred or contracted by the express company ; and for reasons stated in Hebel v. Amazon Ins. Co. 33 Mich. 400, the service of the writ upon ELubbard was not a service upon the express company.
The service of the garnishee process in the case under consideration was duly and properly made in the county of Wayne, and such service gave to the court jurisdiction, under the statute, to proceed to judgment in the principal case, so as to place the plaintiff in position to proceed in the garnishee suits.
The writ of mandamus must issue as prayed.
Cooley, C. J. and Sherwood, J. concurred.
Campbell, J. The principal question here is whether, where a garnishee debtor of an absent defendant has been served with process, and no property attached belonging to the absentee, there is jurisdiction to render judgment against the absentee, so as to bind him by the appropriation of the debt to the garnishee creditor.
A further question also is whether, where the garnishee sets up information that his non-resident creditor has assigned the claim to another non-resident, who is in no way charged to be indebted to the garnishee creditor, there is any jurisdiction gained over the claim.
In my opinion there is no room under our own decisions, or under those of the United States Supreme Court, for maintaining either proposition.
It has been decided too often to be open to discussion anywhere, that the process of one State cannot be lawfully served in another, and that no one can be compelled to litigate in any court which has not jurisdiction over him by voluntary appearance or lawful service of process.
The only exception to this is that, where property is found within the jurisdiction, it may be bound specifically, so as to base a judgment which may be valid to the extent of the property but no further. This doctrine cannot apply to the present ease, unless it is held that a debt follows, the person of the debtor instead of the person of the creditor. This doctrine has no support in any respectable adjudication or authority that has been discovered.
I think that the case of McCloskey v. Judge of Wayne Circuit Court 26 Mich. 100 is so precisely in point under this very statute that we cannot disregard it without making our own precedents useless. The subsequent case of Ameri can Express Co. v. Judge of Wayne, where a motion for a prohibition, made October 7, 1879, and held over until October 15th, was granted on a state of facts parallel with those here, is also, in my opinion, decisive. Both of these cases are relied on by the circuit judge in his return to the order to show cause.
While personal property, properly so called, has for some purposes been treated as following the domicile of its owner, it only does so in a very qualified sense, and is subject to the law of any state where it happens to be at the time, not only for subjection to the owner’s debts, but for taxation and other jurisdictional purposes, where justice requires that the situs should govern. In Green v. Van Buskirk 7 Wall. 139, where an attachment on the personalty of a non-resident was in question, the whole doctrine of constructive possession was carefully discussed, and the attachment maintained, as it has been generally in other courts.
But when the courts or legislatures of one state have undertaken to reach foreign creditors by laying hold of debts due them, it has been just as well settled that the debt follows the creditor’s person, and that he cannot be compelled to go into another jurisdiction to protect it.
In the case of Railroad Co. v. Pennsylvania 15 Wall. 300, the right of a state to tax debts due to non-residents was absolutely denied, and denied on the express ground that debts could “have no locality separate from the parties to whom they are due.” And the court, after laying down this as a principle, proceed to say: “ This principle might be stated in many different ways, and supported by citations from numerous adjudications, but no number of authorities, and no forms of expression could add anything to its obvious truth, which is recognized upon its simple statement.” p. 320.
The same rule had already been laid down in several cases arising under state insolvent laws, where it had been sought to affect non-resident creditors on debts due from debtors residing at the place of discharge. In Ogden v. Saunders 12 Wheat. 213, the opinion of Judge Johnson, which was very full and elaborate, denied the.power of a state to affect non-resident creditors, on the express ground that it could not reach them by its process, or compel them to litigate with their debtors in the debtor’s residence, unless they chose to come in. The inefficacy of any process or notice served outside of the jurisdiction was treated as clear. But the fact that some of the judges dissented on some other points seems to have raised doubts in the profession how far this was the opinion of the court, and the subsequent explanation in Boyle v. Zacharie 6 Pet. 635, that this was the view of the court, appears to have failed to attract full attention. In Brighton Market Bank v. Merick 11 Mich. 405, this Court was equally divided on the question. But during the same year the United States Supreme Court, in two decisions, re-asserted the views of Judge Johnson in Ogden v. Saunders, and placed their decision on the same grounds. These were the cases of Baldwin v. Hale 1 Wall. 223, and Baldwin v. Bank of Newbury 1 Wall. 234. In both of these cases it was attempted to uphold the discharge on the ground that the contracts in question were Massachusetts contracts, made and payable in Boston. But the court held that there was no jurisdiction in Massachusetts to cite a non-resident before the Massachusetts courts, and that the law of the place of the contract or of the debtor’s domicile, could give no such power. In Gilman v. Lockwood 4 Wall. 409, the same ruling was made, and the former eases were held decisive.
These eases are in point here. The creditor is only sought to be reached by bringing him into the forum of the debtor’s residence, which this State has no power to do, and which we have held in the cases before referred to, is beyond the legal operation of this statute now relied on. The whole purpose of reaching him is to enable the court below to adjudicate between him and his debtor and discharge his debtor from any liability to the creditor thus sought to be reached. I think this is not within the power of the circuit court, and that the circuit judge was right in refusing to do it, and that the mandamus should be denied.
§ 8087. If the plaintiff, in addition to the allegations hereinbefore required to he contained in the affidavit for the writ of garnishment, shall set forth in such affidavit that the principal defendant is a non-resident, •or a foreign corporation created in any jurisdiction (naming it), the principal writ (or declaration), and affidavit may be filed of the day of issue, and the writ of garnishment may be served as in ordinary cases; and within sixty days after such service, the plaintiff shall cause to be delivered to such non-resident defendant, or to the president, secretary, cashier or treasurer of such foreign corporation, residing-out of this State, or upon any officer, clerk or agent, residing or to be found within this State, a true copy of the principal writ (or declaration), affidavit and writ of garnishment, with return of service thereon, and with a written or printed notice attached, signed by the plaintiff, or his attorney, and stating that said non-resident defendant or foreign corporation is notified to appear and defend within thirty days after such service, or default will_ he entered, and judgment taken; and upon filing an affidavit of such service, further proceedings to judgment may be had, as in ordinary personal ■actions. | [
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Campbell, J.
The bill in this case was filed to remove a. cloud upon complainant’s title arising out of the supposed confusion or change of one of the lines from which distances-were reckoned in ascertaining the location of her land. Erom the testimony it appeared that the difficulty arose from another source, and the bill was amended so as to meet the. real facts, and obtain a correction of the deed to complainant, as well as a release from defendant. Such a decree was-given below; and defendants appeal.
The controversy arose in this wise : •
In May, 1866, defendant Peak owned a parcel of land-lying on the south side of section 36, in town 9 north of range 11 west, in Kent county, extending from the west bank -of Rogue river to the southwest corner of the east half of the southwest quarter, 13 chains and 59 links in depth northward, and 15 chains 25 links wide on the south, and 13 chains •50 links wide on the north side upon an east and west road. There was also a north and south road along the river.
In August, 1869, Peak sold to Mrs. Harriet M. Bates a parcel eight rods wide and ten rods deep north and south, lying -one hundred rods east of the southwest corner of section •36, and twenty rods east of the quarter section corner before-mentioned, or thereabouts. This, if the distances are 'correct, would leave Mrs. Bates’ line about thirty-nine rods west of the river on the southerly side.
On May 19, 1871, Peak sold to Lafayette McConnell a parcel of land four rods and five feet wide by ten rods north and south, which was intended to be described as joining Mrs. Bates and just east of her, but which was, in fact, so described as to cover a parcel lying between four and five rods east of it. McConnell, however, was put in possession ■of the lot adjoining Mrs. Bates, and the mistake in the description was not discovered.
It does not appear distinctly how the mistake arose, but it appears that there is a jog in the surveys, so that the west line of the town just south is about ten rods east of the west line of the town where the land in question lies, and it is probable that the corners were thus confounded. McConnell paid in full for the lot, and improved it by building a dwelling which he occupied with his family.
In November, 1875, McConnell sold, by the same erroneous description, to George M. Wheeloek. Wheelock sold to Theodore I. Phelps, January 3,1876, and Phelps, on January '31, 1876, conveyed to Marcia E. Travis, the name being in the deed called Maria E. Travis. It is suggested that in this -description, which otherwise is, as is the description in all the preceding deeds, identical with that in the grant to McConnell, the word “ rods ” is left out in describing the starting point, which is thus rendered indefinite. A careful examination, however, will show that the deed itself supplies the supposed defect, which is only apparent. If found anywhere but in a deed the omission would be readily understood as meant to avoid tautology. The practice of conveyancersis to be more specific, but a description cannot be made bad - by any such defect, if otherwise good. It was subject, however, to the same objection as the former deeds, — that it located the land too far east. The property, however, was given into the grantee’s possession as occupied by McConnell, and her tenant was placed upon it.
On the 15th day of December, 1876, Mrs. Travis gave a-, mortgage on the property to complainant. This mortgage-was afterwards foreclosed in equity and the property bid in, and complainant was put in possession by the sheriff: on a writ, of assistance.
After this mortgage, on May 19, 1877, Mrs. Travis conveyed to Henry K. Crissman the lot in controversy, by a correct description. At this time she had no title except that derived from Phelps. ’ Crissman did not record his deed,, which was first produced during this controversy.
March 18, 1878, Crissman conveyed to Anna Conant by a-correct description, but her deed was not on record when complainant filed her foreclosure bill. Anna Conant mortgaged to defendant, who foreclosed her mortgage by advertisement,, and became vested with the title by deed from the purchaser, who was her agent. During all this time Peak had never-conveyed to any one by true description, and there was nothing-of record to connect Mrs. Conant with either Peak or Mrs. Travis.
Complainant made Crissman and wife, Phidelia Conant and Peter W. Crissman, defendants, as well as Mrs. Travis and her husband; mentioning them in the usual way applicable to claimants of subsequent interests. None of them appeared or set up any rights.
' In June, 1879, Alonzo R. Shattuck, husband of defendant Nellie B. Shattuck, procured an agent to apply to Peak for a quitclaim deed of the premises. Peak informed the agent that he had sold the land to McConnell. On learning that there was something wrong about the description, and being; assured it would harm no one, Peak made a quitclaim conveyance, without any consideration, to Mr. Shattuck, who afterwards conveyed to his wife. An action of ejectment in her interest brought the fact of a mistake in the description to notice, and led to this litigation.
Although there is a good deal of testimony in this record, there is nothing which in any way impairs the right of complainant to the relief given her. It appears fully that she has obtained a proper sale and title of the land in question by the description under which it was sold and occupied. It also appears that defendant Nellie Shattuck never got any title by any better description or from any superior source until defendant Peak conveyed to her husband under the supposition that he was doing nothing to interfere with the title he had meant to grant, of which Shattuck’s agent was fully informed. Obtaining the deed under such circumstances was such a fraud on complainant as entitles her to have the deed enure to her benefit.
In foreclosing her mortgage complainant made all persons' parties who are shown by the testimony to have been then entitled to be brought in, and her notice of lis pendens referred to the mortgage by its record, so that even if the description of the lands did not contain (as we think it did), enough to identify it with the paper title, this reference identified it. And as it is entirely clear that when Peak conveyed to Shattuck every one understood what the difficulty with the title was, and as Crissman, under whom Mrs. Shattuck claims, never had any title that did not come from the chain made under the old description, the whole defense is illusory. Whoever devised the procurement of Peak’s- quitclaim did so for a purpose which no court can sanction.
We can see no reason why Crissman should be made a party here. lie was a party to the foreclosure suit, and bound by that, and knew what complainant’s title was. He has now no interest in the land, and under such circumstances the possibility of liability under a covenant of warranty is not such as to require him to be brought in.
We think the decree below was warranted by the facts, and should be affirmed. But we agree with defendant’s counsel that inasmuch as the bill, as originally filed, was not the one relied on at the final hearing, and as the testimony was substantially taken under the early issue, the defendant Mrs. Shattuck should have recovered costs below. The affirmance therefore will be with costs of this Court to complainant, and costs of the court below to defendant Shattuck, which may be set off against each other on the taxation, leaving the proper party to recover the balance.
The other Justices concurred. | [
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Cooley, C. J.
Plaintiff brought suit in trespass, and recovered against the defendants jointly a judgment of six hundred dollars.
The principal facts in the case are the, following : On the-afternoon of November 22, 1882, plaintiff, who was driving a single carriage from Dowagiac in the direction of Lagrange, overtook the defendants, each of whom was driving a two-horse farm wagon in the same direction. These two teams belonged to Lilly; and Engle, who had been but was not then in his employ, was driving the forward team for him. Lilly’s teams were on the main track of the highway, and were going at a moderate gait, one being two or three rods in advance of the other. Where plaintiff overtook them there was another track west of the main track, and plaintiff took this to pass them. He was driving much faster than they were; but as he overtook Engle the team the latter was driving started into a gait as rapid or more so than that of plaintiff’s horse, and the wagon soon collided with plaintiff’s carriage, throwing him out and causing considerable injury. The plaintiff claimed, and gave evidence tending to show, that as he came up with Lilly the latter shouted to Engle, “Run him,” or something of that sort, and made a motion with his hand indicating that he was not to allow the plaintiff to go by; that Engle then started the team into a rapid gait; and that he purposely caused the collision by turning a little out of the main track towards the plaintiff as the latter came up. Lilly on the other hand claimed, and gave evidence tending to show, that what he called to Engle was “ Look out! ” or something of the sort, and was intended to put him on his guard against any running; and Engle testified that he saw no motion by Lilly indicating a wish that he should run plaintiff, and that what he heard called out to him was, “ Sile, look out,” or “ take care,” or something of that sort.
When Lilly was on the stand as a witness on his own behalf, he was asked on cross-examination, whether he had ever been arrested charged with crime? He answered that he had been, twice. Plaintiff’s counsel was allowed to follow up this question and show that he was once charged with murder, convicted, the case removed to the Supreme Court, and the verdict set aside, then tried again and acquitted. [38 Mich. 270.] He was again tried on a charge of assault with intent to kill, and convicted, and the verdict set aside in the Supreme Court. [43 Mich. 521.] Here the inquiry into these matters was stopped. The defendant’s counsel moved to strike out the evidence, but the court denied the motion.
In general a trial court must be allowed liberal discretion in determining how far the antecedents of witnesses may be inquired into on cross-examination; but the discretion ought not to be unlimited, and when that which is drawn out is of a nature which ought not injuriously to affect the credit, the court ought to strike it out without .hesitation. What appeared in this case was that the witness had twice been accused of crimes of violence; but the result of the cases was a legal determination that the accusations were wrongful. Had the facts been proved merely for their bearing upon his credibility, there would be no ground for a suggestion that they probably tended to lead the jury to believe that he was an untruthful man. But the witness was a party to this suit, and the charge against him was of participation in a violent trespass. This cross-examination is justified on the ground of showing the jury what sort of a man this defendant is; and this can mean nothing less than this: that the jury may draw the conclusion that he is a man addicted to violence, and from his antecedents likely to have encouraged the violent trespass of Engle in this case. In that way the defendant might be convicted of trespass upon proof that he had been repeatedly accused of being a man of violence. It is easy to see that, in a case of this sort, where the plaintiff relied for recovery upon proof that defendant encouraged the trespass, and defendant denied it, such evidence, if allowed to stand and be commented upon to the jury, might be the evidence upon which the case would turn. Without therefore saying that the judgment ought to be reversed because this evidence was not stricken out, we still think the motion to that effect should have been granted. The strong probability was that the defendant Lilly would be wrongfully and injuriously affected by it, and the court would have difficulty in preventing this, if the evidence was allowed to stand.
But we think there were some errors committed in the charge of the court.
Among other things the jury were instructed that, “in determining whether Lilly directed, advised or encouraged the trespass, the jury should consider all the circumstances shown by the testimony; whether he approved of and defended the act of Engle after the collision; the relation of the two ■defendants before and since the collision; all the conduct and conversation of the parties ; and all the testimony in the case. That is, you take the whole testimony. Jurors should not form verdicts from one particular act or fact, but take the whole testimony together.” Now, we look in vain in the record for any-evidence that Lilly “ approved of or defended ” any trespass by Engle upon the plaintiff. Both he and Engle denied that any such trespass occurred; and whether they were correct in this or not, there was no room for any assumption that Lilly approved a trespass because he denied its commission. He certainly could not, by denying it, ratify and make it his own.
Again, there was evidence that Engle had before run the horses in the highway, and also that when at Dowagiac he had drank some gin, though it does not appear to have been claimed that he was intoxicated. Commenting upon the evidence the judge said : “ Now if he [Lilly] didn’t have confidence in Engle to manage the horses himself, and had to give him directions, and in giving him directions he frightened the horses, and in consequence of that the horses ran, and by that means run into Pigott, then, gentlemen, his act there assisted in procuring the trespass. You recollect what Engle says about his hallooing to him, and his turning around, and the horses, starting as he turned round; it is for you to say whether that started the horses; if the horses started in consequence of the hallooing of Lilly to Engle, then his act contributed to the running of the horses; and if it did, then if Engle is liable Lilly is liable also.”
The case which the plaintiff had attempted to make out against Engle, and which he now claims that he did make out, was that he intentionally drove against the carriage of the plaintiff and caused the injury complained of. The effect of this instruction is — to state it shortly- — -that if Lilly made an effort to prevent this trespass, but in so doing unintentionally contributed to the starting of the horses, he is jointly liable for the trespass with the party intentionally committing it. This .is equivalent to making an effort to prevent a trespass an adoption of the act of committing it; and would be equally erroneous with the instruction already noticed.
If, on the other hand, the plaintiff were to plant his claim to recovery upon the ground of negligence in both Engle and Lilly, the charge would still be erroneous. It has not been claimed in the case that Engle was a man incompetent to manage and drive horses; nor is there ground for claiming that he was at the time intoxicated. What is claimed is that he had previously shown an inclination to race with horses on the highway, and that Lilly knew the fact and should not have trusted him with one of his teams, especially as he had taken a dram of gin, which might have increased the dispo-' sition to race. But having trusted him with a team, if he deemedo it necessary afterwards to interfere to prevent mischief, and in doing so the horses were started and did mischief, Lilly is chargeable upon the facts as for personal negligence.
Presenting the case in this aspect, it becomes necessary to see what the act is on the part of Lilly, which can be treated as an act of negligence. Certainly the mere act of trusting the team to a competent man could not be deemed negligent, even though he was a man who sometimes took a dram or sometimes ran horses on the street. He had a right to suppose that the man would conduct himself properly in his service, especially when he was driving in his own company. There must be something besides this to constitute legal fault on the part of Lilly. But now, as they are driving along the highway, the plaintiff comes up, driving rapidly, and proposes to pass both Lilly and Engle, and Lilly, as he claims, fearing that Engle may yield to the temptation to run, calls out to him a warning against it. Now, it is said, the call may have startled the horses, and therefore Lilly should be held liable. This makes the call of warning, given for the very purpose of preventing the mischief which actually resulted, an act of negligence, and proposes to charge Lilly as a wrong-doer for trying to prevent a trespass. No legal principle has been called to our attention which would sustain such a proposition. If to call out in a loud voice would naturally and commonly have the effect to frighten horses, there might be ground for some such claim as is now-made ; but it is not claimed that this is a natural and ordinary consequence; and it would lead to strange results if it were to be held that every man who halloos loudly in the vicinity of horses is negligent in doing so. It is not claimed in this case that there was, in the tone or manner of the call, anything unusual, or which would be specially calculated to cause fright to horses; and therefore there was nothing to distinguish this case, in respect to its legal aspects, from any other case of a loud call without improper motive. In this case it is claimed by Lilly that the call was for the purpose of preventing mischief; and if so, and he had no reason to suppose that horses would be startled thereby, it was a very proper act, and cannot become a negligent act by the mere fact that something unexpected resulted from it. The charge therefore was erroneous, in any view that can be taken of the case.
The jndgment must be reversed and a new trial ordered.
The other Justiees concurred. | [
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Campbell, J.
Complainant files his .bill for the specific performance of a land contract. The paper in-question was an agreement dated October 4, 1882, whereby, in consideration of $10, defendant gave complainant the refusal of the property until February 1, 1883, for $1000 in cash, or such other terms as should at that time be agreed on. The defendant lived in Canada, and her residence there was set out. In case defendant had another offer at the same price complainant was bound to determine whether he would take it within ten days, and pay cash within ten days more or lose it.
He made no cash tender on or before February 1, but on the 29th of January sent a letter to defendant’s agent at Charlevoix in which he told the agent he was ready to pay over the money as he had talked, as soon as he should get the deed from Mrs. Morgan. This letter did not mention the sum of money although it referred to the contract. The agent swears that the talk they had previously had was an attempt by complainant to induce the agent to persuade defendant to sell the land for a much smaller sum. He had offered the agent a buffalo-robe to procure this intervention, and in this letter he proposes to give him one at wholesale price. Mr. Eaton, the agent, received this letter on the first of February, but did not regard it as an offer to carry out the contract, and on the 5th of February wrote back to him saying so, and informing him that Mrs. Morgan would not take less than the full price of $1000 cash, and that another man stood ready to take it on those terms. On the next day he was offered $1000 in cash by William Addis and accepted it, and the land was sold to him and at once paid for. The deed to Addis was finally delivered the day after this bill was filed, but complainant knew of the sale soon after it was made.
On the 30th of January Eaton had sent a postal to complainant telling him defendant would not take less than $1000 cash, which complainant answered by a letter dated February 2, which refers to the previous letter, and although somewhat .ambiguous may perhaps be regarded as indicating a purpose to accept. «
Inasmuch as specific performance is not a matter of absolute right in all cases, the complainant is bound' to make out a complete equity. The agreement being one which did not bind complainant to accept the land unless he chose, shows very clearly that the refusal given him was not to be enlarged. It bound him if he wanted the land to be ready with his money on the very day fixed. It made no provision for making tender to any one but defendant at her home in Canada; but he could have got the land, and would have got it, if he had given the agent Mr. Eaton unequivocal proof of his honest design to purchase and pay for it. JBut his course in trying to tamper with the agent and induce him to persuade defendant into sacrificing her property not only deprives him of any right to ask favor, but the agent could hardly have failed to understand the letter of January 29, 1883, as referring to a wish to get the land at a reduced rate. It is a letter which does not plainly offer to do anything definite, while drawn up with some skill as apparently referring to the contract. An offer by letter which could not be answered by February 1, and which did not contemplate payment until subsequent action, is not within the terms of the contract, which provides for no such method of communication. And it is impossible to read the testimony without being satisfied that complainant was all the time endeavoring to take his chances for better terms. There was nothing to indicate that Mrs. Morgan desired to recede from her bargain, and she sold to Addis for the same price which complainant had bargained for.
In our opinion the circuit court very properly declined to relieve complainant by specific performance, for want of equities. But as Addis is not a defendant, and as complainant knew of the sale to him, the failure to bring him in would be a fatal objection, inasmuch as defendant can make no title. .
The decree must be affirmed.
The other Justices concurred. | [
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Coolev, C. J.
On December 24, 1880, the defendant leased to the plaintiff a farm in the county of Kalamazoo ■“ for the term of two years with the privilege of three years if both parties are suiteddefendant “ to furnish half the. seed that may be needed on said farm for the time above stated,” and the plaintiff to work the farm in a good, workmanlike-manner, and deliver to the defendant half the crops-—grain in' the half bushel and hay in the stack or barn. There were no other special provisions in the lease.
On August 26, 1881, defendant took proceedings before a. circuit court commissioner to recover possession of the farm. His complaint was general, and merely alleged that plaintiff held possession wrongfully, and against his right. On September 8, 1881, judgment was given for complainant in that proceeding, and possession was surrendered to him. At the time of so obtaining possession there were upon the land crops of hay, clover seed, corn and potatoes which had been raised by the plaintiff, a part of which was ready for harvest, and some of which was actually harvested. Defendant claimed that plaintiff had lost by the judgment all right in the crops, and refused to permit him to take away any part of them. Plaintiff brought this suit to recover the value of the share he was to have under the lease, but the circuit court sustained the position taken by defendant, and directed a verdict in his favor.
The circuit judge appears to have been of opinion that the judgment which defendant obtained for possession of the farm conclusively determined that plaintiff had forfeited all rights under the lease, not only to possession of the land but to any crops which had been raised. We do not understand how this can be. The judgment of the commissioner determined that at the time of the commencement of the proceedings the defendant in this suit was entitled to the possession of the farm, and that plaintiff held wrongfully as against him; but upon what ground the judgment was given we are not informed, and we- cannot assume that it was on the ground of forfeiture. It may, for anything we know, have been based upon some contract or understanding of the parties entered into subsequent to the lease, and it could not well have been for any forfeiture of the lease, for no clause of forfeiture is contained in it.
. TJpon all the facts appearing in this case, the plaintiff was entitled at least to his share of the crops, so far as they had been harvested. Whether he was entitled to more, we could not now undertake to say, because the case has not been so tried as to bring out all the facts.
The judgment must be reversed and a new trial ordered.
The other Justices concurred. | [
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Cooley, C. J.
The information in this case is filed by the Attorney General on the relation of John A. Ter Tree and ■three others, claiming to be deacons and ex-officio trustees of the First Dutch Reformed Church of Holland in this .State against the four respondents who are alleged to be intruders into the said office. The information is somewhat long, and ■contains much that could be important only as evidence. The material allegations are as follows:
“That on the first day of January, 1851, the said First Dutch Reformed Church of Holland was duly incorporated under and in accordance with the provisions of section 23 of chapter 52 of the Revised Statutes of the State of Michigan of 1846, under the corporate name of ‘ The Consistory of the First Dutch Reformed Church of Holland,’ and thereby the minister, elders and deacons thereof, and their successors in office, became and ever since have been and still are a body corporate under the name aforesaid.
And that Hendrik Geerlings, Bastiaan Steketee, Jan W. Bosman and Kominer Schaddelee, all of the said county of Ottawa, State aforesaid, for the space of five months, now last past, have unlawfully held, used and exercised, and still do unlawfully hold, use and exercise, without any legal elec tion, appointment, warrant or authority whatsoever, the office of members of said corporation, claiming to be deacons and ex-officio trustees of said church and society, to wit: at the city of Holland in the county of Ottawa, aforesaid; and that each of them hath used and exercised, and still doth use and. exercise the said office of a member of said corporation, claiming to be a deacon aiid ex-officio trustee of said church •and society, the First Dutch Reformed Church of Holland, to wit: at the place and in the county aforesaid.
And that said Hendrik Geerlings, Bastiaan Steketee, Jan W. Bosman and Kommer Schaddelee for and during all this time last above -mentioned,, without any legal warrant or authority, election or appointment whatsoever, at the city of Holland, and in the county of Ottawa, have claimed, and still do claim to be members of said corporation, and deacons and ex-officio trustees of said church and society, the First Dutch Reformed Church of Holland; and each of them hath claimed, and still doth claim to be a member of said corporation, and a deacon and ex-officio trustee of said church and society, and to have, use and enjoy all the liberties, privileges and franchises to the office of a member of said corporation, and a deacon and trustee of said church and society belonging and appertaining.
And the said Attorney General further gives the Court here to understand 'and be informed, that at an election by said church and society, the First Dutch Reformed Church of Holland, for deacons, held on the 30th day of March, A. D. 1882, at the city of Holland, aforesaid, John A. Ter Tree, Ame Yennema and Abram M. Kanters were duly chosen and elected, and on the 16th day of April, A. D. 18S2, were duly ordained and installed deacons of said church and society, and thereby became members of said corporation and trustees of said church and society.
And that, at a like meeting and election by said church and society, for deacons, held on the 29th day of November, A. D. 1883, at said city of Holland, Gerritt J. Huizinga was duly chosen and elected, and on the 16th day of December, A. D. 1883, was duly ordained and installed a deacon of said church and society, and thereby became a member of said corporation, and a trustee of said church and society. And that said John A. Ter Yree, Ame Yennema, Abram M. Kanters, and Gerritt J. Huizinga have, ever since their said several ordinations and installations, been, and still are, rightfully entitled to hold, use and exercise the said office of members of said corporation, and deacons and trustees of said church and society, The First Dutch Reformed Church of Holland, which said office of members of said corporation, the Consistory of the First Dutch Reformed Church of Holland, and deacons and ex-officio trustees of said church and society, the said Hendrik Geerlings, Bastiaan Steketee, Jan W. Bosnian and Kommer Schaddelee, during all the time aforesaid, have usurped, intruded into, and unlawfully held and exercised, and still do usurp, intrude into, and unlawfully hold and exercise,” etc.
And the information calls upon the respondents to show by what authority they claim to use, hold and enjoy the said offices, etc.
The respondents demurred generally to the information, imd they also assigned three special causes of demurrer, which may be summarized as- follows:
1. That the offices of deacons and ex-officio trustees of said ohurchand society are not offices created by the statute under which the' said church and society are incorporated, but by the constitution, rules and usages of said reformed church, An ecclesiastical body having no concern with the government, and nothing of a public nature about it.
2. That the said corporation is a private corporation, havingnothing about it of a public nature.
3. That the said offices of deacon and ex-officio trustees are not “ offices ” within the purview of the statute upon which the information is based.
It is upon these special causes of demurrer that the case has been argued in this Court.
The statute under which the information is filed, provides that “An information in the nature of a quo warranto, may be filed in the Supreme Court, either in term time or vacation, by the Attorney General, against individuals, upon his own relation, or upon the relation of any private party, and without applying to such Court for leave, in either of the following cases: 1. When any person shall usurp, intrude into, or unlawfully hold -or exercise any public office, civil or military, or any franchise within this State; or any office in any corporation created by the authority of this State.” How. Stat. § 8635. The other cases specified in the statute need not be here enumerated. The section of the statute to which the relators refer as the one under which they are organized, is as follows:
Whenever by the constitution, rules and usages of any particular church or religious denomination, the minister or ministers, elders and deacons, or other officers, elected by any church or congregation, according to such constitution, rules or usages, are thereby constituted the trustees of such church or congregation, it shall be lawful for such minister or ministers, elders and deacons, or other officers, to assemble together, and execute under their hands and seals a certificate, stating therein the name by which they and their successors in office shall forever thereafter be called and known, which certificates shall be acknowledged or proved and recorded as hereinbefore directed; whereupon such persons and their successors in office shall be a body corporate by the name expressed in such certificate, with all the rights, powers and privileges of other religious corporations, constituted according to the provisions of this chapter. Kev. Stat. 1846, oh. 52, § 23?
It will be seen that the society whose offices are in question in this proceeding has no charter of incorporation from the State,.but that it is organized by the voluntary action of a pre-existing church, under a statute which permits the members to assume corporate powers. It will also be seen that the statute does not create the corporate offices, but permits-the officers of the church to be corporate trustees ex officio^
The question principally discussed by counsel in the caséis that of the jurisdiction of the court. The question has two-branches : First, whether in the case óf a corporate office like the one now in question, the Supreme Court has original jurisdiction to inquire into usurpations of office; and second, whether the office in question is one which is properly the subject of this proceeding. Upon the first branch of this question we say nothing at this time; only remarking that passing it without further remark is not to be understood as the intimation of an opinion one way or the other.
Upon the second branch of the question we 'ai’e- agreed against the jurisdiction. This case brings in question the right to a purely ecclesiastical office, namely, the office of.deapon in the church. This is an office not created or expressly authorized by State law, but is one created by an unincorporated ecclesiastical body, and filled by election by a body which possesses no corporate powers or functions. Over the office and over the election to it the courts of the State have no authority whatever; they are controlled exclusively by.an unincorporated membership in an organization whose unincorporated tribunals decide for themselves, and decide finally upon the elections.
The ground assigned as supporting the right to inquire into the rightfulness of the elections in this case, is that the deacons in the unincorporated society become ex-officio trustees in the corporation. But that fact cannot put the religious body and its elections under the control of the temporal courts. If property rights become involved and trusts come in question, the courts will have no difficulty in dealing with them; but nothing of the sort is in question on this information.
The demurrer must be sustained.
The other Justices concurred. | [
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Cooley, C. J.
This is an action of ejectment for a lot in the city of Detroit. All the parties claim through Ira Beagle, who was owner in fee on December 21, 1847: On that- day lie executed and delivered a trust deed conveying in fee-simple this and another lot to David V. Chamberlain as trustee, the trust being declared as follows :
“ This deed and conveyance is made upon the following trust, and for the following purpose: That said party of the second part shall pay over the rents and profits of said premises to Elizabeth Beagle, her assigns and appointees, during' her natural life, and permit said Elizabeth Beagle, who is the wife of said Beagle, her assigns and appointees, if she and they shall so elect, to occupy and peaceably enjoy and possess said premises during the natural life of said 'Elizabeth.
Secondly. One of said lots hereby conveyed may be sold by said party of the second part, or mortgaged by him, his heirs and assigns, the proceeds of such sale or mortgage to be applied in repairs and improvements on the other of said lots by said party of the second part, his heirs and assigns; said proceeds to be appropriated to no other purposes.
Third. On the death of said Elizabeth Beagle the rents and profits of said premises are to be paid over to the children of said Elizabeth Beagle, their heirs and assigns, by said party of the second part, his heirs and assigns, until said children of said Elizabeth shall all arrive at the age of twenty-one years ; and when said children of said Elizabeth shall thus all arrive at the age of twenty-one years, said party of the second part is to convey said bargained premises, by good and sufficient deeds of conveyance, to said children of said Elizabeth Beagle; and if said party of the second part, his heirs and assigns, shall become liable to pay'any sum, and shall actually Siy the same, on account of any breaches on the part of said lizabeth .of the articles of separation of said Ira and Elizabeth Beagle, this day entered into, then said party of the second part shall be entitled to indemnify himself out of the profits and rents of said premises for such payments.”
Ira Beagle died in 1862 or thereabouts, leaving Elizabeth Beagle and several children surviving him. Elizabeth Beagle died October 28, 1880, having survived all her children and all the descendants of her children except the plaintiff, Sarah J. Byan and Mary A. Yinton, her sister, who are children of Mary J. Parish, a daughter of said Ira and Elizabeth. Mrs. Byan and Mrs. Yinton, after the death of their grandmother, claimed the lot as heirs at law of Ira Beagle, and Mrs. Yin-ton conveyed such right as she may have had to the plaintiff Parker. Defendant claims the lot through warranty deeds given by Elizabeth Beagle and Mary J. Parish in 1860, and quitclaim deeds given near the same time by the other children of said Ira and Elizabeth. This statement will sufficiently show the foundation of fact upon which the parties base their respective claims.
It is contended on the part of the defense that under the trust deed Elizabeth Beagle took a legal estate in the land at least for her life, with power to convey one of the lots in fee; and that therefore her conveyance was effectual. This contention is based upon the supposition that the trust which the deed to Chamberlain undertook to create was a mere naked trust, and that consequently it vested a legal estate in the beneficiary by force of the statute. How. Stat. § 5565. But this is an error. The deed contemplated an active trust, to continue during the life of Elizabeth Beagle and the minority of the children ; the trustee having the control and management of the trust property and the receipt of the rents and profits except in the event of Mrs. Beagle herself electing to go into possession. But her taking possession would not affect the trust; it would merely relieve the trustee for the time being of an active duty in management; but the duty would return again in case of her surrendering possession, as it would also in the event of her death, leaving any of the children surviving. There was no ground, therefore, for the suggestion that the legal estate was vested elsewhere by the trust deed than in the trustee; and the deed of Elizabeth Beagle, if it could be effectual to convey her equitable life-interest, — which is a question not now before us, — would be inoperative for any further purpose.
It is further contended that Mary J. Parish would have been estopped by her warranty deed, given in 1860, from claiming title to the lot in controversy as against any one deriving rights under her deed; and this being so, that plaintiffs, who claim through her and stand in privity, are estopped also. This contention is based upon a familiar principle, and must prevail if the facts are such as to make the principle applicable. But to make it applicable it is essential that the title should have passed to Mrs. Parish, and be claimed by the plaintiffs by virtue of the fact that she had become owner. This the defendant contends was the case; that the land on the death of Ira Beagle passed immediately to his heirs, subject to the trust, and was therefore subject to contract and conveyance by them, as it would have been in his life-time by Beagle himself. How. Stat. § 5579.
It is to be observed, however, that Beagle conveyed the title absolutely, and reserved to himself no power of revocation. The trust contemplated a conveyance by the trustee to the beneficiaries, when the children should come of age; and apparently Beagle did not contemplate the possibility that the trust would come to an' end by the death of Mrs. Beagle after surviving all her children. That very improbable contingency, however, actually occurred; and when it did occur the beneficial interest in the land undoubtedly was in the heirs of Ira Beagle. But that it had passed to them subject to the trust immediately on the death of Ira Beagle we cannot agree. The trust deed did not contemplate that the children should take the land by descent, and its terms were' such as to preclude the possibility; if they survived their mother and became of age, they would take under the deed ; and no one who failed to survive the mother would take at all. This seems to be the necessary effect of the deed.
The title, having been conveyed to the trustee upon active trusts, would remain in him while the trust remained unexecuted ; and it did remain unexecuted, as we have seen, until the death of Mrs. Beagle, which was after the death of all the children. The children therefore never succeeded to the title or to any inheritable interest. If we assume that the trust terminated when Mrs. Beagle died, the beneficial interest in the land, with the right to demand conveyance, must then have passed to the heirs-at-law of Ira JBeagle; but it would be to such persons as were then heirs, and not such as at some prior time may have been heirs. The persons who were then heirs were Mrs. Ryan and Mrs. Minton, the only surviving descendants; and they would take directly from Ira Beagle by virtue of their relationship to him; and not through their mother, who never inherited the land. The fact that they traced relationship through the mother is of no importance; they are not in privity with her in respect to this land, unless they claim title to it through her; and this, we have seen, is not the case. Moore v. Littel 40 Barb. 488, 498: s. c. on appeal 41 N. Y. 66; House v. McCormick 57 N. Y. 310, 321.
There is therefore no room for the operation of the doctrine of estoppel which has been invoked in the case. Whether the active trust continued for any purpose after the death of Mrs. Beagle we need not inquire, since it appears that the plaintiffs have received a conveyance from the trustee. The judgment, which was in their favor, must therefore be
Affirmed, and the record remanded for further proceedings.
The other Justices concurred. | [
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Cooley, C. J.
This action is brought upon a promissory note, dated March 14, 1876, payable one year from date to-Jacob Held or bearer, and signed by John Duane and the-defendant. . Duane was principal in giving the note and defendant was his surety, though the fact did not appear on the face of the instrument. The suit was begun November 27, 1882, and Duane had died previous to that date. On the-trial the plaintiff put the note in evidence and rested his case. The defendant called the payee of the note as a witness, who-testified that the note remained in his possession until after it fell due; and he then left it at McPherson’s bank in Howell for collection. His instructions to McPherson were to collect the note if he could; all he wanted out of it was his-money, — nothing else. The note was collected by McPherson and the money paid over to witness by McPherson himself, not a great while after it was left. Witness came to-town one day and McPherson called him in and told him the note was paid. Neither at the time of leaving the note nor-at any time afterwards did the witness authorize McPherson to sell the note or transfer it to any one. Witness first learned in the fall of 1882 that plaintiff claimed to own the note-The judge then asked the witness: “ Have you taken any steps to rescind the sale, or pay back the money since you learned that plaintiff claimed to have bought the note ? ” The-answer was in the negative. The defendant also gave evidence as follows: “ 1 had a conversation with the plaintiff' about two years after John Duane claimed to have paid the-note. Plaintiff said, ‘I have got a little paper with your name to it.’ I said, ‘ I guess not.’ He said, ‘ I have.’ I said,. ‘ I don’t know anything of the kind ont against me now.- Then plaintiff said he had a note I signed with John Duane, describing the note in evidence. I said, ‘John Duane told me he paid that note and took it up.’ Plaintiff said, ‘He did, but I let him have the money to do it with.’ This conversation must have been close to two years after the note became due.” Plaintiff testified on his own behalf that he purchased the note of McPherson, paying for it the full amount; that within a few weeks afterwards he saw defendant and Duane together about it, and they, after a private consultation, told him he need not worry about the note; it was perfectly good and should be paid. He denied that he ever told defendant that he let Duane have the money to pay the note. On cross-examination he said: “ When I came to Howell and paid the money into the bank for this note, I came in my buggy and John Duane came with me. When we got here I think we went right to McPherson’s bank. I can not say whether Duane went with me into the bank or not; he was right there, though, close by, if he did not go in with me. I think he did not go in with me until I went in and introduced the matter. I did not state to McPherson that X came for the purpose of paying a note he held against Duane and Bennett. I first acquired knowledge that this note was at the McPherson bank for collection against the defendant and Duane, about the time I got the note. I think John Duane told me. ITe said there was a certain note signed by himself and Bennett — a joint note — in McPherson’s bank, and he wanted I should go and buy the note.” Further on he said that he did not know the note was in the bank for collection, and that his purpose in going to the bank was not to ¡Day- the note, but to buy it.
No evidence was given that it was any part of the customary business of the bank to sell notes for others. When the evidence was concluded the defendant requested the judge to instruct the jury that if Held, the owner of the note, gave McPherson no authority to sell it, but only authority to collect, and the note was past due when obtained by the plaintiff, then the plaintiff acquired no title to the note, and cannot recover. This was refused, and the jury were told that if tbe plaintiff went to tbe bank and with his own money purchased .the note in suit, without any knowledge or information that McPherson had no authority to sell, then tbe plaintiff would be entitled to collect the amount from defendant. The question of fact whether the plaintiff did in' fact buy the note instead of paying it, was submitted to the jury. The veVdict was for the plaintiff, and the defendant brings error. The instruction to the jury can only be supported on the assumption that one who has possession of negotiable paper for the purposes of collection has authority by implication of law to sell it. It is not claimed that express authority from Held to McPherson to make sale of the note was proved, and no custom of the bank to deal in securities for others was shown. Unless, therefore, authority to sell is included in authority to collect, or is to be implied from it, plaintiff never obtained title to the note. That the one is not included- in the other was held in Russell v. Drummond 6 Ind. 216, and we do not find in the plaintiff’s brief in this case any serious contention for a different rule.
The plaintiff contends, however, that, as McPherson assumed to make a sale, Held, if it was unauthorized, is put to his election, and must either rescind the sale and return the money McPherson paid him, or failing to do so, the sale will stand ratified, and the want of authority'to make it originally will become of no moment. This is upon the principle that one cannot be allowed to take the benefit of a transaction and at the same time repudiate it. But the difficulties in the way of accepting this proposition are insurmountable: First. It appears Held does not admit any sale was made. He 'left his note for collection ; was told it was collected; received his money on that understanding, and is ready to abide by the transaction now as he understands it; and if in fact no sale was made, he can be under no obligation, legal or honorary, to give the transaction the form of a sale because it will suit the interest of another that he should do so. Second. Held is no party to this litigation, and is concerned in it only as a witness. This controversy is between plaintiff, as purchaser of the note, and defendant, as maker; and plaintiff is entitled to recover if lie can show a purchase ; otherwise, not. If his purchase was ineffectual for want of authority from Held to make it, the court has no power and no means of requiring and compelling Held to elect between affirming the sale and rescinding it. He has received the amount of his note, and he stands indifferent in the present controversy. But thi/rd, if Held were a party to this suit, he could not now be required to elect between affirming a sale and rescinding it and restoring the money received by him, for the very obvious reason that the circumstances have so changed that it would be grossly inequitable to compel it. It appears by his evidence that he never heard that plaintiff claimed to have purchased the note until after the death of Duane, and more than five years after he had received his money upon it. It cannot be plausibly contended that an election could be forced upon him under such circumstances, — when it would be impossible to restore him to his former position in respect to the note and the makers.
The truth seems to be that plaintiff took the note from the bank for the accommodation of Duane; and if McPherson had authority only to receive payment, the transaction must, so far as Bennett is concerned, have been ineffectual to transfer a title upon which suit could be brought. If Duane consented to the note being kept-alive as to himself, he would remain liable upon it; but he could not agree to that effect for the defendant. The latter claims that the note is paid; and Held, who was owner, appears to agree with him. If the plaintiff has been misled into any different understanding, he may possibly have a remedy against McPherson; but \vhether he has or not is unimportant in this controversy.
The judgment must be reversed and a new trial ordered.
The other Justices concurred. | [
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Cooley, O. J.
The plaintiff is a resident of St. Mary’s in the province of Ontario. The defendants and one Alexander Watson were, during the year 1881, partners in the business of buying and selling seeds in the city of Detroit under the name of the Michigan Seed Company. In the year named plaintiff sent to Detroit, directed to the Michigan Seed Company, certain potatoes and apples, and they were received by Alexander Watson and sold by him. The plaintiff has not been paid for them. lie claims that they were received by the Michigan Seed Company with certain other articles which defendants admit were purchased by the firm, and he brings this suit for the price. The defendants on the other hand claim that the potatoes were received by Alexander Watson to sell for the plaintiff as an individual transaction; that the other members of the firm knew nothing about the matter at the time nor until after the dissolution of the ^partnership. The partnership was dissolved in June, 1883, when the other partners purchased the interest of Alexander Watson, in the concern, agreeing to pay the debts. Watson had been manager of the company and he prepared a statement showing the condition of the business, and the others made their purchase upon that as a basis. In that statement the transaction with plaintiff in respect to the apples and potatoes was not brought in...
Such were the claims of the parties respectively. On the trial the defendant Masterton being on the stand as a witness was asked whether the plaintiffs account on the books of the firm showed a credit to him of the amount he now claimed. This was objected to and the objection sustained. We think this was error. The evidence would evidently have some bearing upon the question whether - the transaction was or was not a partnership transaction, and it is easy to see that it might have been very forcible evidence. If what was done by Alexander Watson was beyond the scope of the partnership business, it might nevertheless have been accepted by the partnership as done in its behalf; and proof that it was entered on the books of the firm would be a step towards proving such acceptance. Whether an inference would arise from the entry that the other partners knew of and assented to it, might depend upon the circumstances; but these would be for the consideration of the jury, and the court would not be warranted in passing upon them on objection to the evidence. The plaintiff also called for the books of the partnership for evidence as regards the plaintiff’s account; and we think he was entitled to them.
The judgment must be reversed, and a new trial ordered.
The other Justices concurred. | [
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Champlin, J.
This is a case made after judgment. On the 26th day of May, 1882, Michael S. Garvin commenced suit against William H. Moote before Cornelius Bennett, a justice of the peace, by summons returnable on the 3d day of June, 1882. The summons was returned personally served. Garvin also commenced proceedings in garnishment against Dennis J. Kennedy before the same justice. In obedience to the summons Kennedy appeared before the justice and made disclosure on the 3d day of June. This disclosure the justice entered upon his docket as follows:
“Defendant disclosed under oath as follows : That there is one hundred and twenty-four dollars and fifty-five cents in his hands, belonging to the defendant Wm. H. Moote, and three promissory notes — one made by William Tobin, for five dollars and seventy-five cents; one made by Daniel Kennedy for twelve dollars and fifty cents; one made by Joseph H. Bradley, for $6.25 — the property of Wm. IL Moote.”
Trial was had and judgment rendered in the principal suit on June 3, for two hundred and twenty-eight dollars damages, and costs taxed at four dollars and ninety cents.
It also appears that on June 3, 1882, William H. Moote made a written assignment to the plaintiffs in this suit as follows:
“For a valuable consideration to me in hand paid by J. N. Yancise and M. F. Fasquelle, the receipt whereof is hereby confessed and acknowledged, I do hereby sell, assign and transfer to them all moneys, notes, accounts and orders belonging to me and now held by Dennis Kennedy of Mt. Pleasant, Michigan, and I do hereby authorize said Kennedy to deliver to said Yancise and Fasquelle all such moneys, notes, accounts and orders, they being in the aggregate about •one hundred and seventy-five dollars of the same.
¥m. H. Moote.
Dated June 3d, 1882.”
On July 3d, 1882, at the request of Garvin’s attorney the justice issued a second summons against the garnishee, requiring him to appear July 12, 1882, at nine o’clock a. m., and •show cause why judgment should not be rendered against him as garnishee of the principal defendant, Moote. He ■appeared at the time and place, and admitted in open court that he had no defense to make against judgment being rendered against him as garnishee, and judgment was rendered against him for the money and property mentioned in his disclosure.
The official term of Bennett expired July 4th, 1882, and he was succeeded by Free Estee, who received his docket and papers and proceeded to hear and determine the garnishee suit. This suit was entitled as follows on the justice’s docket:
■“ State of Michigan, ) Isabella County, j " Michael S. Garvin, Plaintiff, ' vs.
William H. Moote, Defendant, Dennis J. Kennedy, Garnishee Defendant.
Peter F. Dodds, Pltff’s Atty. Proceedings in Garnishment.
- H. H. Graves, Principal Deft Atty. Brown & Leaton, Attys. for Garnishee.”
The circuit judge found, as matter of law, that the record of the garnishee suit thus entitled was invalid and insufficient “ and is not in any way a compliance with the statute, which says that it shall be a separate suit, and entered as such.” In this the court erred. The statute referred to provides that “ such suit may be entered on the docket as suits in other cases.” How. Stat. § 8035. This language is not mandatory but permissive. The record before us discloses that the garnishee proceedings were entered separate from the principal suit, and a complete record made in the cause as above entitled. The record and judgment in the garnishee cause appear to be sufficient, and constitute^ a complete defense to the action.
The judgment of the circuit court is reversed, and a final judgment must be entered here for the defendant, with costs of both courts.
The other Justices concurred. | [
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Cooley, C. J.
The facts in this case are the following:
On May 15, 1883, Eugene Angelí was doing business as a private banker in Lansing, Michigan. His New York correspondent was the Chase National Bank. On the day named Grammel, the petitioner in this case, purchased of Angelí two small drafts on the Chase National Bank, amounting together to $174.50, and paid for them. They were ordinary bankers’ drafts, payable at sight. Angelí at this time was insolvent, though it was not publicly known, and two days thereafter he made a general assignment of his property for the benefit of all his creditors. Arthur N. Hart was named assignee. Two days subsequent to the assignment the drafts of petitioner were presented to the Chase National Bank for payment, and payment refused upon the ground that the assignee had notified the bank to pay no drafts. The bank had moneys belonging to Angelí at the date of the drafts more than sufficient for their payment, and continued to have until the time of presentation. Hart, the assignee, failed to give bond as such, and finder the statute the respondent Carmer was appointed receiver to execute the trust in his stead. The Chase National Bank then paid over to the receiver the balance which was due to Angelí when he assigned.
On this state of facts the petitioner claimed tobe entitled to payment of his drafts in full from the amount paid over to the receiver by the Chase National Bank, and he petitioned the circuit court for an order directing such payment to be made. The receiver contested his right, insisting that he must receive proportionate payment with other creditors; but the circuit court made the order prayed for. The receiver appeals.
It is contended on the part of petitioner that a banker’s sight-draft is in legal effect a check, and that if there are in-the hands of the drawee funds for its payment, the payee is absolutely entitled to payment from such funds, and cannot be deprived of this right by any action of the drawer, or of the assignee or receiver of the drawer who would stand in his shoes. It is further contended that the holder of the draft may bring suit against the drawee for the amount if the latter refuses to make payment, and that in effect he has a lien upon the fund and may follow it into the receiver’s hands if it is paid over to him. And several cases are cited in support of these positions.
The doctrine that a banker’s draft, drawn and payable within the -country, is in legal effect a check, is held by a divided court in Roberts v. Corbin 26 Ia. 315, in which case it was also held that the holder of a bank check drawn against funds sufficient for its payment may maintain suit for the amount against the bank if payment is refused. The case of Munn v. Burch 25 Ill. 35, is relied upon as authority. An examination of the facts in that case will show very clearly that the question supposed to have been decided by it did not arise at all, for the check which was in question had actually been received by the bank on which it was drawn and actually-charged up to him on his pass-book. The court went beyond the case and expressed an unnecessary opinion, which in Chicago &c. Co. v. Stanford 28 Ill. 168, and Union Bank v. Oceana Bank 80 Ill. 212, has been followed as aiithoritative. See also Fogarties v. State Bank 12 Rich. 518; Lester v. Given 8 Bush 357. But the great weight of judicial authority is unquestionably to the contrary of this. In Bank of Republic v. Millard 10 Wall. 152, 156, Davis, J., speaking for the court says: “ It is no longer an open question in this court since the decision in the cases of the Marine Bank v. Fulton Bank 2 Wall. 252, and of Thompson v. Riggs 5 Wall. 663, that the relation of banker and customer in their pecuniary dealings is that of debtor and creditor.” He adds that on principle there can be no foundation for an action on the part of the holder of a check against the bank unless there is privity of contract between him and the bank. “ How-can there be such a privit_y when the bank owes no duty and is under no obligation to the holder ? The holder takes the check on the credit of the drawer, in the belief that he has funds to meet it; but in no sense can the bank be said to be connected with the transaction.” See also First Nat. Bank v. Whitman 94 U. S. 343. Many cases might be cited to the same effect if it were needful, but we think the case of Perley v. County of Muskegon 32 Mich. 132, recognizes the same principle.
This case, however, is not the case of a check, but of bills of exchange. The bills were drawn by banker upon banker, it is true, and against deposits made to meet them; and it might be difficult to say why any distinction should be taken between checks and such drafts as to the rules which should govern the rights of the parties. We have no occasion in this case to consider whether a distinction exists, because we think it dear that if it could be held, as some courts do hold, that the payee of a check drawn against actual deposits may sue the banker who refuses to pay it, it would be impossible to so hold in the case of a draft without disregarding long-settled rules.
The cases of Williams v. Everett 14 East 582, 597; Yates v. Bell 3 B. & Ald. 643; Hopkinson v. Forster L. R. 19 Eq. 74; and Citizens’ Bank v. First Nat. Bank L. R. 6 H. L. 352: s. c. 7 Moak 56, are sufficient to show that the law in England is that the drawee of a bill of exchange is liable on it only after he has become acceptor. The same rule is recognized in Mandeville v. Welch 5 Wheat. 277, 283, and Bank of Republic v. Millard, already cited. In Gibson v. Cooke 20 Pick. 15 it appeared that a party had drawn a bill which was dishonored for want of funds. Afterwards the- drawer remitted funds expressly to meet that and another small bill which had previously been drawn. The drawee paid the small bill, but refused to pay the other. It was held that the payee could not maintain an action against the drawee for the amountj there being no privity of contract between them. If any case could be conceived whose facts would support such an action, this must be such a ease, for here the funds were remitted for the express purpose of paying the bill sued upon. To the same effect are Bullard v. Randall 1 Gray 605; Hopkins v. Beebe 26 Penn. St. 85; Jermyn v. Moffitt 75 Penn. St. 399; Gibson v. Finley 4 Md. Ch. 75; Poydras v. Delamare 13 La. 98; Harris v. Clark 3 N. Y. 118; Cowperthwaite v. Sheffield 3 N. Y. 243; Winter v. Drury 5 N. Y. 525; Noe v. Christie 51 N. Y. 273; Duncan v. Berlin 60 N. Y. 151; Tyler v. Gould 48 N. Y. 682; Risley v. Phenix Bank 83 N. Y. 318; Bank of Commerce v. Russell 2 Dill. 215; Bank of Commerce v. Bogy 44 Mo. 13; Weinstock v. Bellwood 12 Bush 139; Caldwell v. Merchants’ Bank U. C. 26 C. P. 294.
The reason for these decisions is found in the fundamental rules governing this class of paper. The drawer, by drawing and delivering the paper to the payee, agrees that if duly presented it shall be accepted and paid by the drawee, and that in default thereof he will, if duly notified of the dishonor, pay it himself. The drawee enters into no contract relations with the payee in respect to it until it is presented to him, nor then unless he does so by acceptance. If he accepts, he undertakes to pay according to the terms of the bill or of the acceptance; but up to the time of that act the payee looks exclusively to the drawer for his protection. If the drawee refuses to accept when he has funds-for the purpose, he becomes liable to the drawer for the wrong done to his credit. Marzetti v. Williams 1 B. & Ad. 415; Rolin v. Steward 14 C. B. 595. But the payee can maintain no such action for the plain reason that until acceptance the drawee owes to the payee no legal duty whatever. An action at law must be grounded on some failure in the performance of legal duty.
It is said a draft should be considered an assignment of so much money in the drawee’s hands. If this were so, then drafts would operate as assignments in the order in which they were given, and should be paid in that order. But to so hold would be to introduce a new and vicious rule into the law of commercial paper. The well-understood rule— and, we may add, the convenient rule — now is that the drawee, when a draft is presented, should pay it if he has funds, and is not concerned with the question whether drafts of prior issue do not remain unpaid. But if a draft operates as an assignment, then either he would pay at his peril, or the payee receiving payment would be liable over to the holder of a prior unpaid draft for money received to his use. This rule would greatly and injuriously affect the value of this class of paper for commercial purposes.
Something has been said in the case about this being an equitable proceeding, as if that should make a difference in the rules that should be applied to it. But in no proper sense is this an equitable proceeding at all. The receiver is appointed by an order made on the chancery side of the court; but this merely puts him in the place of the assignee who failed to give bond, and in order that creditors may enforce through him their legal rights. When Angelí failed, this petitioner had certain legal rights in respect to this paper, and these rights qualified the rights of all other .creditors. The failure of Angelí and the appointment of this assignee could not increase this petitioner’s rights at the expense of other creditors: it leaves them as they were, to be enforced by such remedies as shall be appropriate. The statute which prescribes this particular remedy has no purpose to modify rights in any manner.
But if this were strictly an equitable proceeding it would make no difference. Courts of equity have no different rules in respect to the rights and obligations of parties to negotiable paper to those which are recognized in courts of law, but they recognize and enforce the same rules, and there would be gross injustice in their doing otherwise. Some of the cases above cited in support of these views were cases in equity.
The order of the circuit court is erroneous and should be set aside.
Campbell and Champlin, JJ. concurred. | [
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Cooley, C. J.
The plaintiff sues as assignee of a policy of insurance issued by the defendant to Emma Norton, and insuring her. against loss or damage by fire or by lightning to the amount of four hundred dollars on her frame dwelling-house in Ludington, described in the policy as occupied by a tenant. One of the conditions of the policy was that “ this policy shall become void unless consent in writing is indorsed hereon by or on behalf of the society if any building hereby insured be or become vacant or unoccupied for the purpose indicated in this contract, or become occupied in whole or in part for other and more hazardous purposes than those indicated in this contract.” Upon this condition the present controversy arises.
The policy bore date May 7, 1883, .and was for one year. The insured testified on the trial that her tenant left the house June 19, 1883. She was glad of this, because she wanted to occupy the house herself. She immediately moved her things into it; her furniture and all the goods she had. She was there in the house, occupied it, and expected to make it her home. She was getting ready, cleaning up, and doing all she could; her husband was sick, and she could only clean a little at a time, as she could not leave her husband long. On June 20th she started to take her husband to the dispensary at Chicago, and was gone not to exceed three days. She then stayed at home five or six days, leaving her things in the house all the while, but not staying there nights. Her father lived about forty rods away, and she stayed nights and took meals at his residence. The witness also had work done in the garden attached to the house. Some five or six days after her return from Chicago witness went away to canvass for certain goods which she sold, and which were principally hair-work. She went for this purpose into northeastern Michigan, and the house was burned July J, 1883, before her return. On going away she put the premises in charge of Mr. Shackelton, who had an interest in them.
Upon this evidence and some other not material to be here mentioned, the trial judge instructed the jury that
“ If a man insures his dwelling-house and lives therein at the time, and contracts not to let the building become vacant and unoccupied, he cannot as a matter of fact vacate it absolutely, leave it in that condition and recover on a policy in case of loss.
“ But if he goes off temporarily on business or matters for his own benefit or otherwise — temporarily merely, with the intention of coming back to his place and there living, and with no intention of abandoning the place — the contract will not be vitiated by that kind of a transaction; and had the tenant in this case gone away on temporary business before he surrendered up the premises to this Mrs. Norton, and had the fire occurred while the tenant occupied it, there would be ho question but that the company would be responsible for the loss if the going away was merely temporary with the intention of coming back and making it the home of the tenant.
“ I think in this case, gentlemen, if you are satisfied by a fair preponderance of the evidence in this case, or are clearly convinced that Mrs. Norton put her things into that building with the intention of making it her home and her residence as a matter of fact, — didn’t live in it in person before the fire, but after placing those things in she went away on mere temporary business with the intention in her mind to come back and live there — that the premises would not be unoccupied and vacant within the meaning of this policy, and that the company would be responsible for the loss. She must of ■course have placed her goods in that building with the intention in her mind to make it her residence — to make it her .home; and must have gone away on business — temporarily gone away, simply for a temporary purpose; not permanently, — not with the idea of abandoning the place; if she went away temporarily to be gone a few weeks or a few days on business of her own, with the intention of coming back and living there, I do not think the policy is vitiated; and I think the plaintiff in this cause who' sues as assignee of the policy -can recover in the case if you so find.”
The jury, upon this instruction, returned a verdict for the plaintiff and the defendant assigns error. The only question is whether the instruction of the judge can be supported.
Ve have concluded, after some hesitation, that the instruction should be sustained. There is no doubt that if the insured had actually begun living in the house before her departure on business, the temporary absence would not have affected the policy: in contemplation of law, her occupation of the house would have been continuous. Stupetski v. Transatlantic Fire Ins. Co. 43 Mich. 373; Cummins v. Agricultural Ins. Co. 67 N.Y. 260; Herrman v. Merchants Ins. Co. 81 N. Y. 184; Phœnix Ins. Co. v. Tucker 92 Ill. 64; Dennison v. Phœnix Ins. Co. 52 Iowa 457. The only question, then, is whether the fact that for the few days she remained at homo before starting on the business trip, she did not sleep in the house or take her meals there, should make any difference. Under the circumstances we think not.
The insured had taken possession of the house, as the jury must have found, for the purposes of permanent occupancy. She had moved in her household furniture and other goods, and was cleaning and doing other work preliminary to living there in person. Nothing, apparently, was wanting to complete personal possession, except that she lodged and took her meals at her father’s, a few rods off. Those facts were not conclusive against her occupancy. It could not be justly claimed, we think, that if a family, for the purposes of cleaning and interior decoration, were thus ‡0 sleep and take meals at a neighbor’s, while busy in the house in working hours, they would in doing so vacate the house. But the case of such a family would be analogous to that of the party insured in this case.
Cases are cited and relied upon on the part of the defense which we think are distinguishable on their facts. Wustum v. City Fire Ins. Co. 15 Wis. 138, was the case of a policy of insurance which, by its terms, required unoccupied property to be insured as such. The building insured was not occupied, but was not insured as unoccupied, and the policy was held inoperative for that reason. In Ashworth v. Builders' &c. Ins. Co. 112 Mass. 422, it was decided that merely using a house for the purpose of taking meals in it was not occupancy within the meaning of an insurance policy. “ Occupancy,” it was said, “ implies an actual use of ■the house as a dwelling-place.” “ The insurer has a right,, by the terms of the policy, to the care and supervision which ■is involved in such an occupancy.” This, we think, is true; but, as we have seen, it does not follow that the presence of the occupant in the building should be continuous and uninterrupted. The necessity for temporary absences on business, or for family convenience or pleasure, is recognized,, and the insured is understood to contemplate an assent to them. In Corrigan v. Connecticut Fire Ins. Co. 122 Mass. 298, the question was whether a tenant who had occupied a house but had moved with his family out of it and was taking his meals elsewhere, could be said to be occupying it merely because some of his furniture remained in it, and lie-had not surrendered the key. It was very properly held he-could not. Herrman v. Adriatic Fire Ins. Co. 85 N. Y. 162, was still more unlike the present case, and calls for no-comment.
It is suggested on the part of the defense, that the vacating of the house by the tenant, of itself put an end to the policy; but there is no force to the suggestion. The policy -did not require a continuance of possession by the person then •occupying; and Mrs. Norton’s possession began when the •other terminated, and was for the same purpose, namely, for ■a dwelling.
The judgment must be affirmed.
The other Justices concurred. | [
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Ciiamplin, J.
George Jones was run over by defendants-engine and killed, while in the employment of defendant, April 15, 1882. He was an ordinary laborer, engaged under a section boss at repairing the track, changing iron, shoveling dirt and gravel, raising low joints, etc. It was the duty of' the section men to unload gravel trains, or do anything that the road-master told them to do. If an employee lost his-tools, or they were carried off through his negligence, they were charged up to him and he was obliged to pay for them. On the day the deceased was killed, he, with a number of' other section men, were taken in the caboose of the gravel train from Hamilton station to a distance of about two miles, to unload the gravel train. The gravel was unloaded by means of a plow operated by a cable connected with the-engine. After it was removed by the plow the men were-required to clear the gravel from the track between the cars. It appears that before this was fairly accomplished the train started, and there was considerable haste for the men to get-upon the cars. Jones threw his shovel upon one of the flatcars and climbed upon the engine. The train was backing-west. When it arrived at the switch the train-men cut off all the cars but the car with the gravel plow, from the engine^ and they were “ kicked ” down the main track. They then put the car with the gravel plow in upon the spur switch,, and the engine and tender then passed upon a long switch, in order to pass to the west of the flat cars. In the meantime-the deceased had left the engine and ran down the main track, with the intention of recovering his shovel. He followed down between the switch and the main track a short, distance, until he came to a “ washout,” when he passed upon the switch track, still running and calling to some men near the cars to get his shovel. He had proceeded but a. short distance when the engine, backing at the speed of ten or twelve miles an hour, without warning ran him down and over him, killing him instantly.
The declaration contained different counts charging the death of Jones to the negligent act of the company ; but the negligence upon which the case was submitted by the court to the jury was that complained of in the declaration, wherein it stated that the engineer in charge of the engine was at the time intoxicated, by reason of which, and through his care^ lessness and negligence in the running of the engine, Jones was killed, and that the habits of the engineer for intoxication were so notorious that defendant was guilty of such negligence in not ascertaining such fact as .to charge it with the negligence of the engineer. The inquiry before the jury, therefore, as submitted by the learned judge, was confined to these three questions of fact:
First. Did the deceased himself, by any negligence of his own, contribute to the injury complained of?
Second. Was the injury to Jones caused by the negligent act of the engineer, which was due to his intoxicated condition ?
Third. Was the habit of intoxication of the engineer sufficiently notorious so that the company can be fairly held by implication to have known it, or be guilty of negligence in not knowing it ?
The question of contributory negligence was submitted to the jury under proper instructions; and the second and third subjects of inquiry were submitted under the following instructions:
“Now, I have told you that the injury must be caused by the negligent act of the parties controlling the engine; That is necessary. ■ That must be shown by a jfreponderance of evidence on the part of the plaintiff in order to entitle him to a verdict. In this case the question whether or no the defendant is liable, it seems to me, turns upon this question, and that I submit to you to say as jurors whether it be true or not; whether or no the faults or vices, or whatever you call them, or the habits of this man, if they existed — whether or no they were sufficiently notorious .so that the company can be fairly held by implication to have known it, or guilty of negligence in not knowing it.
. Now, a railroad company, in law, is required to exercise ordinary care in knowing as to the habits of the individuals to whom they intrust their business, and with whom the public deal, and they cannot sit quietly down and make no inquiry when the facts become so notorious that, by the exercise of ordinary care, as ordinarily prudent, careful men, they should know it; and if the company continues in its employment an incompetent servant after his incompetency is known to its officers — of that there is no evidence — or is so manifest that its officei’s, by the use of due care, would have known it, such a continuance in its employment is as much a breach of duty and ground of liability as the original employment of an incompetent person.
Now, then, had his habits become so notorious — was he so negligent of his duty — that you can say, as fair, candid men, that the company was negligent in not knowing of his habits ? If the evidence is equally balanced upon that point, then the verdict must be for the defendant. It devolves upon the plaintiff to establish that proposition by a preponderance of evidence. If the jury find that the driver of the engine that ran over Jones was incompetent, then it was the duty of the defendant to discharge him as soon as they knew it, and if, by the use of due diligence to inform themselves of the competency of their employees, they ought to be informed of his incompetency, then they are chargeable with the consequences of his negligent acts. They were bound to exercise reasonable care in knowing as to the competency of their engineers. If the jury believe, from the evidence, that deceased came to his death through the engineer’s negligence, caused by his intoxication, this will not justify them in finding for the plaintiff, unless they further find from the evidence that his habit in the use of intoxicating liquors was such, and of so long standing, that they ought to have known it. The evidence in the case will not justify the jury in finding that when deceased was killed he was engaged in work not within the terms of his contract, and therefore the jury cannot find a verdict for the plaintiff on this ground. There is no evidence in the case that will justify the jury in finding that the engineer used intoxicating liquors to excess when he entered the service of defendant, or that he was not then a competent and safe man to have charge of running an engine. There is no evidence in the cause that will justify the jury in finding that any superior officer of the engineer, in defendant’s service, knew, or ever heard, prior to the accident, that the engineer drank intoxicating liquors. The defendant owed no duty to the deceased to sound the bell or whistle at or east of the highway crossing, or to sound the whistle in the station-yard, unless he appeared to those in •charge of the engine to be in danger of being injured by it.
Deceased was a fellow-servant of the engineer, and therefore, if the jury believe from the evidence that the negligence of the engineer caused his death, this alone will not justify them in rendering'their verdict for the plaintiff.
Now, gentlemen, that doctrine may not seem just, that where the death of a party is caused by the negligent act of a fellow-laborer or fellow-servant that the company is not bound to respond, but such is the law, that, if it results from the negligent act of a fellow-servant, the company is not bound to respond because of his negligent act. There must be something further in order to make them liable. The officers of the company who employ the men must be negligent either in employing him, or in retaining him after knowing his vices, or by their negligence in failing to learn as to his condition. Upon the last ground is the theory and the only theory upon which this case is submitted to you.”
At the request of counsel-for defendant the eourt submitted to the jury the following special questions:
1. "Was the engineer of the engine intoxicated at the time of the accident ?
2. Had the engineer been in the habit before the accident of drinking intoxicating liquors to excess %
3. Had the engineer, before the accident, ever been intoxicated or under the influence of liquor when running his engine, and if so, how many times as'shown by the evidence, and when ?”
The jury returned, with their general 'verdict for the plaintiff, answers to the foregoing questions as follows : To the first question they answer, “Yes.” To the second question they answer, “Yes.” To the third question they answer as follows: “Yes, three times; when loading train near Bancroft; when at Mrs. Dunham’s, at Durand; when at hotel at Durand.”
The only exception taken to the charge of the court as given was to the following portion, namely: “ But there is another ground which I submit to you, as jurors, to say whether or not the defendant is liable, and that is- whether or not the engineer had been guilty of such acts, showing his intemperance, that the company was negligent in not knowing his bad habits.” The errors assigned are as follows :
1. There is no evidence in the ease that will justify the-jury in finding that the engineer, at the time of the accident in question, was in any degree intoxicated.
2. There is no evidence in the case that will justify the jury in finding that the engineer, at any time prior to the accident, used intoxicating liquors to excess, or was intoxicated in any degree when in the discharge of his duties as-engineer.
3. Under the pleadings and proofs in this cause, the defendant is entitled to the verdict of the jury; and
4. In instructing the jury as follows, to-wit: “ There is another ground which I submit to you, as jurors, to say whether or not defendant is liable, and that is whether or no-the engineer had been guilty of such acts, showing his intemperance, that the company was negligent in not knowing his bad habits.”
The fourth assignment contains no error. The instruction was based upon .the well-settled principle of law that it is.a duty which masters owe to servants employed by them, that the master will exercise due care in the employment of servants to select those who are competent; and that failure to do so is negligence in the master, which will render him liable for-injury caused by the negligent act of the servant, if occasioned by such ineompetency. And this principle extends-to the act of the master in retaining an incompetent servant in his employment after knowledge comes to him of the unfitness of the servant for the service in which he is-engaged, or of whose unfitness he might have known by the exercise of due diligence or ordinary care.
The other three assignments of error may be treated together, as they are based upon the want of any evidence to-support the verdict. The point to which the proofs were directed were brought into a very narrow compass. The-court charged the jury that there was no evidence in the case that would justify them in finding that the engineer used intoxicating liquors to excess when he entered the ser vice of defendant, or that he was not then a competent and safe man to have charge of running an engine; and that there was no evidence that any superior officer of the engineer, in defendant’s service, knew, or ever heard, prior to the accident, that the engineer drank intoxicating liquors. This left the only question to be determined by the jury whether the defendant was negligent in failing to learn as to habits of intoxication of the engineer. And defendant insists that there was no testimony introduced in the ease tending to prove such negligence on the part of the .defendant. Whether defendant was negligent in the particular instance under consideration depended upon the degree of care required of it in the employment and oversight of a servant in the position of engineer of a locomotive engine. If the engineer was addicted to the habitual use of intoxicating liquors to such excess that his intoxicated condition was observed and known by the employees and others coming in contact with him for a period covering several months of time, and if by inquiry or observation the officers of the company, during that time, would have discovered his unfitness for the position of engineer by reason of his habits of becoming intoxicated, the omission to make inquiry or to observe his condition is negligence fully as culpable as if they had employed a notoriously incompetent engineer without inquiry.
The record does not disclose when the engineer went into the employment of defendants. The testimony of the witness Bradley shows that he was running an engine of a gravel train as early as July preceding the accident to Jones, which occurred the middle of the month of April, 1882, and at the time testified to by Bradley the engineer was then drunk. Other witnesses testified to his drinking intoxicating liquors, and of being under the influence of liquor in the months of February, March and April preceding the accident, while he was still acting in the capacity of engineer of the gravel train. The jury found, in answer to the special questions submitted by the defendant’s counsel, that the engineer was intoxicated at the time of the accident, and that Le liad been in tbe habit of drinking intoxicating liquors to excess; also that before the accident he had been intoxicated or under the influence of liquor, when running his engine, three times. The first time mentioned by the jury was the same referred to by the witness Bradley, which was nine months previous to the accident. The others were during the months of February, March and April, as appears from the testimony of the witnesses Dunham and Church. The defendant introduced no testimony whatever.
We cannot say, in view of the testimony, that there was no evidence whatever upon which the jury could base a finding that the defendant was negligent in not ascertaining the habits of the engineer with respect to drinking intoxicating liquors to excess, and in retaining him in its employment after it knew or should have known, his unfitness for the position. No definite rule can be laid down as to what length of time must elapse, where actual notice is not shown, to charge the company with negligence in failing or neglecting to ascertain the habits of its employees with reference to drinking intoxicating liquors to excess. If they exercise due care and diligence in seeing that their employees are competent, careful and sober, and fail to discover any vicious habits, they cannot be held liable for negligently retaining incompetent men. The presumption, is that they discharge their duty in this respect, and the burden of proof is upon those who assert negligence in the discharge of such duty. When however, as in this case, it is shown that the accident occurred through the negligent act of the servant, who was in an intoxicated condition, and when it is shown further that he was in the habit of drinking intoxicating liquors to excess, and such habit had extended over a period of nine months while in defendant’s employ, and no actual knowledge or notice ever reached any superior officer of the engineer, we think the jury may be justified in concluding from such evidence that the defendant was negligent in failing to learn such habit and in retaining the engineer in its employment.
The testimony was suchas to fairly overcome the presumption that defendant had discharged its duty, and to call upon defendant to rebut the proof made showing its negligence. The evidence shows that the habits of the engineer could readily have been ascertained upon inquiry ; and the length of time in which the engineer is shown to have indulged in this habit is quite convincing that the negligence consisted in not making proper inquiry. The defendant was required to exercise reasonable care in its supervision of the conduct of its servants, with a view to ascertain whether they were fit or competent persons to be retained in its employment; but this duty must be performed with reference to the nature of the employment, and the dangers likely to be caused by the employment of unfit or incompetent persons. It was required to exercise a closer supervision over the habits and conduct of an engineer than over a brakeman or a common laborer-Indeed it is one of the most responsible positions connected with railroad service, and calls upon the employer not only to use reasonable care in the selection of competent men for the position, but reasonablé diligence in seeing that they remain trustworthy in the discharge of their duties. What is reasonable care and reasonable diligence in that respect is a question of fact for the jury.
In this case it was submitted to them under proper instructions, and their finding is conclusive upon the fact.
The judgment is affirmed.
The other Justices concurred. | [
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•Champlin, J.
Plaintiff brought ejectment for a strip of land occupied by defendant as a right of way in the city of Ann Arbor, claiming title in fee. The plea was the general ‘issue. In 1880 plaintiff was the owner in fee of the land in •question. At that time the Toledo, Ann Arbor & North eastern Railroad Company was engaged in constructing a railroad, and desired to build it on and over the land in quéstion, and applied to plaintiff, who was secretary of the company, for permission to do so. Plaintiff and said company had been negotiating with reference to this right of way. Plaintiff offered to let them have the right of way on condition that they -would build and maintain a side track from a point on the right of way to some ice-houses, owned by plaintiff, situated near the bank of the Huron river, for the-accommodation of plaintiff and the public. This was accepted by the company, and at the same time plaintiff sold to tliecompany a bank of ground for $500, with which to fill a. portion of the road-bed over this fight of way, and the company went into immediate possession thereof, and constructed their road over the right of way aforesaid. '
Afterwards, and prior to the 17th day of March, 1S81, the-said railroad company consolidated with another company,, and the new company so formed assumed the name of the-Toledo, Ann Arbor & Grand Trunk Railwty Company, the defendant in this suit. On the 17th day of March, 1881, plaintiff and his wife executed and acknowledged' a deed to-the defendant by its corporate name, of the right of way, describing the same with particularity, and stating the consideration thereof to be as follows:
“For and in consideration of the company’s building within eight months from the date hereof, and maintaining, so long,as said company’s railway shall be operated, a side track upon the land and right of way hereinafter described, so far as the same can be done, for the use of the parties of the first part, in connection with the public ; said side track to be located on the northerly side of said company’s main line, and to-extend from where the said main line crosses the westerly line of block number two (2), Brown & Fuller’s addition to-the village (now city) of» Ann Arbor, south westerly along said’ company’s main line to the ice-houses of. the parties of the first part, on the Huron river.”
After the habendum clause the deed contains the following: “Provided, further, if the side track above mentioned is not built within the time specified, this grant shall be null and void.” This deed the plaintiff delivered to the defendant on the 27th day of April, 1881, and the same was recorded in the office of the register of deeds of Washtenaw county on the 7th day of June, 1881. Afterwards, and before the expiration of the eight months, plaintiff applied to defendant and notified its officers that he should insist upon the terms of the deed, but nothing was done towards constructing the side track. ' In February, 1882, defendant commenced to widen the road-bed over the right of way described in the deed, and plaintiff mailed to Mr. Woodford, the general manager of the road who held his office at Jackson, a notice forbidding defendants to go-npon the right of way, to run trains thereon or over, or to deposit any material thereon — stating that the conditional deed had lapsed and the land reverted to plaintiff, and pointing out several acts which he claimed to be trespasses. This letter bears date March 27, 1882. On the 24th of June, 1882, plaintiff served on the superintendent of defendant a formal notice declaring the deed null and void by reason of the'failure to comply with or perform the conditions thereof, and notifying it to surrender and deliver to him the possession of the land, describing it.
The plaintiff’s counsel requested the court to charge the jury as follows:
1. The defendant having received, recorded, retained and acted upon the deed from the plaintiff to it of the right of way in question, is now estopped from saying it is not such a deed as the plaintiff should have given.
2. If *the defendant wholly failed to construct the side track mentioned in the deed within the time therein expressed, and the plaintiff, as soon as practicable after said failure, notified the defendant or its president, or other officers in. charge of the construction of the road, that he should insist upon his right of forfeiture under the deed on account, of such failure, the deed, as a transfer or conveyance of title, would thereby become void and the plaintiff would be entitled to your verdict in his favor.
3. The circumstance that the defendant was suffered to commence its work of the construction of its road upon or across the land in question under or in consequence of a verbal agreement to put in a side track, and in pursuance of which the deed was made, becomes unimportant in view of the terms of the deed accepted by the defendant.
4. If the deed was in accordance with the preceding oral agreement relating to the right of way, then such oral agreement is unimportant in this case. Which several requests were refused.
The court charged the jury as follows:
“ Gentlemen of the Jwry: In this case, all of the witnesses and both parties agreeing or swearing and agreeing that the railroad company entered into these premises by the consent or license of the plaintiff, and had constructed its road under the license and were running the railroad at the time this action was commenced, I charge you that the conditions of this deed, or the execution of the deed, are entirely immaterial in this action. That after A. has consented that the railway company may enter upon his lands and build a railroad, and under that license the railroad company built a mill or anything of that kind, after it is done the license has become an irrevocable license, and no action of ejectment can be maintained against the party who has spent his money under such a license, and your verdict must be for the defendant.”
Under the evidence, as it appears in the record before us, the plaintiff was entitled to have his first, third and fourth requests given to the jury. The second request to charge would have been proper, if the facts in the case had been sufficient to justify it. The plaintiff seeks to enforce a forfeiture of his grant because of the non-performance of a condition subsequent. He must therefore stand upon his strict legal rights, and must be prepared to show that his grantee is in fault. If there be any ambiguity in the deed, or any want of testimony to establish clearly his right to insist upon the forfeiture, it will be taken most strongly against him. Now by referring to the deed, it will be seen that it grants not only a right of way for defendant’s line of road, but also the right of way for constructing the side track, in the following language: “ And also the right to lay a side track from the company’s main line to the ice-houses of the parties of the first part on the Huron river, in some convenient place to be selected by the said Henry C. Waldron.”
We fail to find in the record before us any evidence of the fact that plaintiff has ever selected the route of the side track and notified defendant thereof, and until that is done it is difficult to see how the defendant can be in default for not building the side track. The several parts of the instrument must all be construed together, and effect given to every clause thereof, if possible, and the intent to be gathered from the whole instrument is that the eight months’ time does not commence to run until the place upon which the side track is to be built is selected by Mr. Waldron. As the record stands there was no error in refusing the second request. The charge.made by the learned circuit judge was erroneous. The parol agreement became merged in the written deed. If the possession is to be regarded as taken under the parol agreement afterwards reduced to writing, then, inasmuch as no such agreement can rest partly in writing and partly in parol, the writing will supersede, everything else, and becomes the criterion by which to determine the rights of the parties. Druse v. Wheeler 22 Mich. 439. It is unnecessary under this record to inquire or to decide what the rights of the parties would have been if they depended entirely upon the parol license under which possession was taken.
The judgment must be reversed and a new trial granted.
The other Justices concurred. | [
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Sherwood, J.
Peters filed the original bill in this case to quiet title to a portion of lot one in sec. 7, town 21 N., range 16 W., in Manistee county, described as follows: “ Commencing at low-water mark on the margin of Lake Manistee on section line between sections 6 and 7; thence ■east 132 feet on said sec. line; thence south 66 feet to a «take; thence west to low-water mark on Manistee lake.”
Louis Sands was the owner of lot one, and on the 8th day ■of February, 1869, sold and conveyed by warranty deed the above-mentioned parcel to C. P. List. List died in December, 1879, and the title passed to his widow and his children, Christ, Bertha, John and Thomas, who afterwards conveyed ■said parcel to Peter Hansen, complainant in the cross-bill and •defendant in the original bill. .
On the 18th day of May, 1880,, said Sands and wife conveyed to said Peters lot one, excepting therefrom the land first above described, and the deed was recorded June 17, 1880. Peters in his bill avers that it was expressly understood between said Sands and C. P. List that by the conveyance between them the latter was to acquire no rights beyond a straight line drawn from the point of beginning to the point •of ending mentioned in the description contained in said •conveyance; that List on his purchase immediately entered into possession of the parcel first- above described, and that Sands and his grantees have ever since remained in possession, of the remainder of said lot one; that Sands when he made the sale to List was building a dock south of the section line between sections six and seven, and in front of the land sold, and that it was well understood at the time of the sale that the land upon which the dock was built was not included in List’s deed, and as long as List lived Sands continued to construct, occupy and use said dock. And Peters claims that, he is the owner of all that portion of said lot one lying in front of a line drawn from the point of beginning to the point of ending in the description of the above first-mentioned parcel in List’s deed, and avers that Hansen claims to own what-lies west of said line including the said dock, and threatens and intends to interfere with the complainant’s possession, and by force and violence oust him of his possession, and prays that he may be decreed to be the owner of the disputed parcel,, and Hansen enjoined from interfering with his possession-thereof until final decree in the premises.
The bill avers that the Railroad Company obtained the-title to its right of way which crosses the disputed premises-of the List heirs. The conveyance thereof was previous to-Hansen’s deed.
Hansen answers the bill, and admits the several conveyances stated in the bill; denies the understanding claimed and averred between Sands and List as to the extent of the premises- conveyed in List’s deed; denies the possession of said' Sands to any part of the premises deeded to List for the purpose of building said dock or otherwise; and avers that if Sands occupied the land for dockage it was by permission of' List and under him, and that he never relinquished his title to Sands, and that during List’s life-time Sands never made any such claim or any other claim inconsistent with List’s-ownership under his conveyance, but on the contrary Sands admitted List’s riparian rights appertaining to the lot purchased by List, and that List occupied and controlled the-same while he lived. Hansen admits the death of List and the transfer of List’s purchase by his heirs to defendant, and the recording of the deed ; denies that Sands ever claimed any interest in the disputed premises adversely to defendants * and claims that complainant has failed, by the statements in his bill, to show himself entitled to any relief in a court of' equity.
The cross-bill, after setting up the substance of the answer». claims that the railroad company obtained their pretended in terest, which consists of a right of way to the lake, under a quitclaim deed from the List heirs, and if the legal construction of the deed claimed by the company is the correct one, then the same was obtained by fraud, and if the same shall be so found asks for a decree for reconveyance; and further if the conveyance shall be found to have conveyed any of the water front, then there was a mistake made, and the cross-bill, in such case, asks for a decree of reformation.
The several answers of the defendants to the cross-bill were made and filed, which need not be further referred to.
Proofs were taken, and the case was heard upon pleadings and proofs at the Manistee circuit, where both bills were dismissed, with costs. The cross-bill was dismissed upon the sole ground that' the complainant therein had no right to complain of the fraud charged.
The complainant in the original bill alone appeals. The relief which he seeks by his appeal is from the decree which dismisses the original bill absolutely. He substantially admits that the bill was properly dismissed, but claims that the decree of dismissal should have been without prejudice.
The complainant claims in his bill to be the owner of the premises in dispute, and to have been in the possession of the same since receiving his deed of Sands. His complaint is that Hansen claims to be owner and threatens to disturb his possession, and he believes Hansen intends so to do. This will not furnish ground for equitable relief.
Nothing in the decree in this case will prejudice the complainant from asserting by suit or otherwise any legal right or any equitable right in and to the property described in the pleadings, or to the possession thereof, except in so far as by the record it appears that the same has been properly put in issue and adjudicated in the case. Neither does the bill show such a claim of title as equity will relieve against. The complainant’s remedy, in case of the commission of the acts threatened, is at law.
Such being our conclusion, it is difficult to see how any ■ rights of the parties, either legal or equitable, can be prejudiced by the decree made.
We, see no ground for our interference with the action of the circuit judge in the case, and the decree will therefore be affirmed.
The other Justices concurred. | [
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Campbell, J.
This action was brought under the statute to recover damages for the death of Thomas James, claimed to have been caused by the negligence of his employers. He was a laborer, and not a miner, and was employed on work of various kinds about their mine and premises. His death was caused by caving in of the surface over the mine, where he was at the time engaged in removing pumping apparatus and pipes from the mine, where work was, or was about to be, abandoned. Upon the surface over the vein, which ran east and west, there were a shaft-house over the shaft nearest to the place of the accident, a boiler-house about a hundred feet west of the shaft, and an engine house west of that. The surface gave way from the shaft to this engine-house, taking down the boiler-house into the mine, making a hole about sixty feet wide by a hundred long at the surface, and about sixty long by twenty-five feet wide at the top of the rock below the sand and gravel that covered it for a depth of about twenty-five feet. This mass of surface matter, with more or less rock and ore, filled up a considerable space in the mine, and the bodies of the persons carried down with it were not found. One person only was found alive in the upper part of the mine.
The plaintiffs theory, which prevailed with the jury, was that the mine caved in because not adequately supported. And the immediate cause is said to have been the removal of the under part of a pillar of ore, and the insufficient manner in which the pillar thus undermined was propped up.‘ There had been a partial caving away of this pillar in the year 1882. This surface caving in happened on Monday, April 10, 1883. On the 7th day of the same month (the Friday before) this pillar gave way, and from that time until the accident there were, as is claimed by the plaintiff’s witnesses, a series of fallings of ore and other material, and appearances indicating danger of some kind, which made it improper to set men at work over this part of the mine. There is less conflict on the actual appearances in the mine than upon some other questions, but there is some conflict of testimony upon several points. The errors assigned cover many specified objections, but are chiefly aimed at what are claimed to be misrulings on the case as it stood on the close of the proofs. Some, however, relate to other matters, which may properly be considered in the beginning.
The declaration was demurred to, originally, on the single ground that it did not aver that the dangerous condition of the premises was unknown to plaintiff’s intestate in season to have avoided the danger. The declaration, however, avers expressly that he was without fault, and this would cover want of knowledge, provided want of knowledge would be decisive. On the trial of such a case proof of knowledge, under such circumstances as to place the intestate in fault by reason of it, might be a complete defense. But it is not necessary here to decide whether a man having some knowledge of danger may not, nevertheless, be blameless when incurring it in the course of employment at which he is set, or must always be deemed negligent when doing so; because an allegation of entire want of fault is as broad as it could well be made.
There is, however, a further assignment of error, which claims the declaration to be insufficient because of the invalidity of the statute giving a cause of action in such cases. We are unable to see any force in this suggestion, and it is not rested on authority. The maxim of the common law, that a personal action dies with the person, is not a constitu tional maxim. The death of the injured person does not destroy the fault of the wrong-doer. There was a period in early English history when death by wrong always involved pecuniary redress. And although for a long time that policy was generally changed, its change was never, so far as we know, based on any idea of want of power in the Legislature ■to restore it. As the party injured has become incapable of receiving redress in person, it must, if granted, go to some one who represents him; and if the Legislature see fit to allow the personal representative to sue, and collect damages for the benefit of those relatives and connections who take the personalty when distributed, we cannot see why this is improper. This statute, although in some respects modified, was in force when our present Constitution -was adopted. Its general policy has been adopted in England as well as in America, and is not entirely confined to these countries. It is for the Legislature, and not for the courts, to devise safeguards, if further ones are needed. We think the law is valid.
In order to see the bearing of other assignments, some reference will be proper to the general outline of the case. The defendant company owned an iron mine in Menominee county, with a vein running east and west, and inclining somewhat from north to south in its general course. It had been opened westward from the shaft before referred to about 170 feet on the adit or upper level, and downward to third level below it, and the ore had been removed through this territory to a considerable extent. The vein, if it can be so called, was nearly perpendicular in this part of the property on the southerly side, the south wall sloping slightly outward towards the south for about half way down, and then turning a little the other way from the perpendicular so as to overhang slightly as far down as the lower level, — where the vein practically ran out. The ore vein, which was narrow .■at the top, being about 18 feet wide where it reached the earth above, did not widen very much until it reached the lower edge of a hanging wall of rock and ore mixed, which from the scale on the diagrams seems to have reached down about 125 feet from the top of the rock, and not far from 150 feet from the surface of the ground. This deep, wedge-shaped-hanging rock, called in mining language a horse, penetrated into the ore vein throughout its course, the vein pinching together about 170 feet west of the shaft. A considerable-part of it went down when the mine caved in. Below this-wedge the vein widened so as to be at the first level below it, according to defendant’s witnesses and diagrams, about 65-feet wide, running up also behind the horse to the junction of that with the north wall or what is known as the hanging wall, and sloping and narrowing downward from its widest point to the lowest level, about 130 feet. These distances-are not material, but are variously given. In mining out the-ore there were parts of the ore vein left substantially un-' touched from wall to wall at intervals, the parts so left being of uniform thickness and the one in question being 18 feet thick, and filling the entire width of the vein. These cross-sections of ore were called pillars, and their object was to-keep the walls from crushing together, and thus supporting the mine. The witnesses do not in terms agree how far such support existed, but plaintiff’s witnesses testified to its importance in keeping the whole upper part of the mine from depression. The pillar in question here was about twenty feet west of the shaft, and the ore had been worked out on both sides of it, leaving open spaces east and west. The pillar itself did not reach the extreme top of the mine, and above the level called the first level, the ore had been taken out, but just how much is perhaps doubtful. The only openings from east to west through this pillar were the usual passage-ways and drifts. The hanging wall was hard jasper, and the foot-wall soap-stone of apparently not very tough quality. The ore itself was according to most of the testimony a not very compact or tenacious soft iron ore, which, however, required to be blasted.
Having removed the ore on either side of this pillar and the mine having become to a large degree worked out at this part of it, the managers were proceeding to remove what was-left in the pillars, or so much as they could safely remove,— the process being called scramming, or robbing the mine, by several of the witnesses. To do this they began at the bottom of the pillar and worked upward towards the surface, taking away the ore by blasting, and putting in timber-work in its place. At the time when this trouble arose, this work was being done near the second level below the adit or uppermost level, or about 200 feet down from the surface of the ground where the vein was about 40 feet wide.
In mining out the ore, where the vein was narrow, the stopes or workings were roofed over by logs laid angling from wall to wall, with their lower ends notched into the foot rock. Where the vein widened out below the horse, this was impracticable and insufficient, and the spaces between the pillars from side to side were filled with a series of timber-work consisting of thick logs about 20 feet long, set upon legs of heavy timber about 8 feet high, the ends of which were mortised into the timbers at the top and bottom. These were arranged in parallel rows with substantial cross-timbers running the other way so as to fill up the entire open space from side to side. They were also wedged and filled in, both against the pillars and against the vein-walls, with logs of such size as were meant to keep them firm. These timber rooms or frames were designed to give lateral support to the ore-pillars as well as to keep the whole mine firm. The witnesses do not all agree concerning the functions and importance of this timbering. But it was testified and seems probable that it was important to keep it so firmly fixed as to prevent swaying or yielding.
In removing the bottom of the pillar this same plan was pursued, except that it is claimed the timbering was more solid, and was arranged so as to be less likely to yield. The details are not important for the present discussion.
It appeared that this method of timbering mines was not in common use on Lake Superior, but there was testimony that it had been used elsewhere, but whether with mineral veins and walls of similar contents and consistency the record does not very distinctly show.
As the principal controversy turned on whether the defendants were negligent in not making adequate provision for the safety of the mine, the propriety and adequacy of this timbering became an important subject of inquiry, which embraced, moreover, the purposes it was designed to accomplish. And in this connection it was insisted by defendants that the issue presented by the declaration was too narrow to admit the claims made on the trial.
The declaration sets out at length a description of the mine and the manner of its working and timbering, and the importance of the pillars and supports to hold up the surface and prevent the caving in of the mine. It then describes the scramming or‘robbing process by taking out the remaining ore and replacing it with timbers insufficient in size, and so carelessly put in as to be inadequate to take the place of the ore and hold up the weight of the surface above. It then describes the giving way of the timbers and fall of the pillar and the subsequent events, and alleges the cause of the intestate’s death to be the negligent removal of the rock and ore supports without proper substitution of other sufficient means, and the improper direction of decedent to work on the surface after the giving way of the pillar and timbers.
It is now claimed by defendant that under this declaration it must be confined to a ease where the supports that gave way were in contact with the upper rock and directly held it from yielding, and that it yielded on their removal or at least that they were meant to hold up the weight of the pillar itself; and that, as the pillar did not reach to the upper roof of the mine and was partly held up itself by the pressure of the walls, there can be no recovery.
This does' not appear to us a reasonable construction. The plaintiff was bound to show that the accident in question was a consequence of the removal of support, and this was the case sought to be made out, and which the jury found was made out. But the declaration does not rest on the narrow ground that the roof exercised an immediate vertical pressure on the pillar and dropped on its withdrawal, or that the timbers were merely to bear up weight. The testimony, which it was for the jury to weigh and apply, tended to show that the pillars were designed to keep the walls apart, and this is neither more nor less than to support that part of the mine which was liable to fall down or fall over. Nothing situated as this mine was falls in any direction but downward or inward. The plaintiff’s witnesses were explicit in saying the purpose was to support the ground under which the mine was worked, and that the weight above was such as to require such or equivalent support. This was the opinion of witnesses whose opinion, if otherwise competent, the jury had a right to consider. And if they were satisfied that the actual caving in of the mine came from its having lost this support, we think there was testimony which tended to prove it.
All of the testimony for plaintiff, and most .if not all of that for defendant, certainly is open to the construction that the whole combined work of pillars and timbering was designed to keep the mine firm. There was testimony indicating that it was deemed important to the stability of these pillars of soft ore that they should be in close contact with the timbering. And it is, from the testimony, a not unreasonable assumption, as there is some very direct testimony that it was important that the timbering should be kept firmly in place. Every-day experience shows that a frame which is turned from the perpendicular loses much of its firmness and strength against pressure. And it also is apparent that any such structure as is put up in a mine to stay the walls, and keep the mine from danger on that score, must be adapted to the incidents of mining, involving the falling of ore and rock, and the shock of explosions. It is also matter of common knowledge that the sudden removal of a support or frame-work may cause what is above or about it to give way at once or gradually, when a slower or more cautious removal might have left it standing alone and unshaken.
We think the defendant was fairly notified, and the course of the trial shows that it was not in any way surprised by the claim, that the issue covered the adequacy of the timbering at the place and under the circumstances, and involved a full inquiry into all of them. And we think also, that if the mine gave way at the surface of the ground, and swallowed up the earth aud buildings on it, and if this was the result of removal of the pillar, there can be no propriety in saying the pillar was not a means of supporting that which gave way.
It is claimed, however, that there is no testimony to support the theory that the timber under the pillar did give way, and it is insisted that some of the witnesses could not possibly have seen what they swear they saw. It is enough to say that the witnesses are positive as to what they saw, and the jury had a right to believe them. The testimony of the crumbling of the pillar is in the record, as well as that of the crashing of the timbers, and while no one could very well inspect the bottom of the mine for purposes of the trial, the facts and coincidences are so presented that the court could not have taken them from the jury.
Complaint is also made that the testimony admitted to show the inadequacy of the timbering was insufficient. But upon this there were witnesses on both sides of the case, and their qualifications as experts were of the same character. The-witnesses for the plaintiff testified to familiarity with such mining, and that a knowledge of the proper methods of timbering was a necessary part of their mining knowledge and experience. There was no such uniformity of testimony in favor of this particular method as made the defendant’s witnesses entitled to credit on that ground above the rest. The ease shows that this method was not universal, or even general in that region. It may or may not have been an.improvement or a proper method. But this, to a jury of ordinary men, was a question on which they needed instruction from experienced mining men, and having heard both sides, they had a right to form their own conclusions. It is not for a court to overrule it, in such a conflict. We do not think it can be said that the witnesses usurped the functions of the jury.
It is also claimed that there was nothing to authorize a supposition that there was danger of caving in from the surface. There was some evidence that this subject was discussed with Captain Wicks, and that he said he thought the apparent cracking would not go beyond the jasper. There was further evidence which tended to show that on Monday ■morning a crack was visible, and noticed by him as well as others, which appeared to them to be in the jasper, and to be ■dangerous. There was testimony showing very fully that it was deemed dangerous to go down in the mine on Monday, ■and that the mining captain, "Wicks,, proposed and determined to abandon some of the tubing and gave orders to have nothing said about it.
Of course it is not for us to draw conclusions. But we do not see any reason why it was not competent for the jury to find that the# subsidence of the pillar, and the subsequent dropping of ore and rock, and the conduct of all the parties including the mining captain, indicated both danger and reason for suspecting it.
The suggestion that the negligence was that of fellow-servants is not applicable. In this respect the ease is within ■several of our previous decisions cited on the argument, which hold the employer responsible for the reasonably safe condition of the premises where he sets men to work. Deceased was not a miner, nor bound to know the condition or fully understand the exigencies of the underground works, so far as he was not in contact with them, with means of passing judgment upon them. And it would be going very far to hold that such an accident as this was one of the natural perils of his employment. The question does not appear to us, in the light of our past decisions, to require enlarged discussion.
Some objection was also made to the introduction of the ¡acts and statements of the mining officers during the interval between the accident on Friday and the fatal one on Monday. But these transactions were continous parts of the res .gestee, and were important not only to show knowledge of the condition of affairs, but also to show how far they exhibited care and prudence in matters involving the safety •of persons employed.
Upon the question chiefly argued, which was the right of defendant to have the case taken from the jury for want of ■evidence, we think, for reasons before given, there were facts on which they were rightly allowed to pass. The same reasons will apply to most of the particular requests, which were either involved in the charges given, or otherwise such that the court could not be required to give them in the shape presented.
It was entirely immaterial whether the mine was in proper order in other respects, if the particular things alleged and relied on were improper and led to the injury complained of. And as already suggested, the jury had their attention called throughout to the particular mischief.
¥e need not discuss at large the charges ^asked, which requested the court in substance to take from the jury an inquiry how far James had such knowledge as would put the risk on himself. The charge was carefully framed on this matter, and was in full accordance with our previous rulings. We do not think the jury could have been properly debarred from determining how far he had knowledge, and how far he relied on the action and presumed knowledge of the'mining officers. We can find nothing to indicate that the court exceeded its duty in making this reference.
Neither do we think there was anything out of the way in what was said concerning the duty of defendant to employ skilled and experienced agents. It may be true that there may be no negligence in employing a person who is supposed to be competent and is not. But there were no recent changes in the management, and there was nothing to call for any very technical qualifications of the general rule of duty. We think the decedent had a right to act on the assumption that it was safe to do what he was employed to-do, unless he had knowledge which should have warned him it was unsafe to do so. This was properly charged.
We do not think that in this suit against persons in no way interested in the estate, there was any need of going beyond the letters of administration to establish plaintiffs right to sue. They were granted by the proper court, and as against strangers, must be presumed properly granted. Woods v. Monroe 17 Mich. 238; Cook v. Stevenson 30 Mich. 242.
Neither do we think the court erred in rejecting the ques tion, put to plaintiff on cross-examination, whether James was not, when he married her, married to another woman from whom he had not been- divorced. That question — if the inquiry is open — may perhaps be important in the distribution of the estate. But it has been decided by the probate court that plaintiff is entitled to administration, and it is not competent on this issue to inquire into matters which no one could fairly anticipate and which would be no bar to the action. It may also be suggested that there can be no presumption that the witness could answer with knowledge such inquiries. But this case is not the proper occasion for trying the validity of marriage or divorce collaterally. Waldo v. Waldo 52 Mich. 94.
While we have not taken up the errors assigned one by one, we have considered all that seem to us material, as presented on the argument. We think no error has been established, and
The judgment must be affirmed.
The other Justices concurred. | [
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Cooley, C. J.
Defendant in January, 1883, issued to plaintiff a policy whereby he was insured to the amount of two thousand dollars on his household goods, furniture, clothing, etc., “ all contained in his two-story frame dwelling house and additions, occupied as a residence” in Saginaw city, and to the further amount of three hundred dollars on his horse, buggies, hay, etc., and barn tools. A fire occurred November 13, 1883, which so far injured the house as to render it uninhabitable. At the time of this fire much of the household goods covered by the policy was removed to the barn and stored there. The parties adjusted the loss by this fire, and no question now arises upon it. December 6, 1883, the barn was burned, and with it the household goods stored in it. Defendant adjusted and paid the loss by this fire so. far as concerned the property commonly kept in a barn, but refused to pay any loss on household goods. For that loss this suit is instituted. The circuit judge held there could be no recovery, and defendant had judgment.
It is claimed for the plaintiff that the barn in this case may be considered a part of the dwelling house; it being within the curtilage. But there is no ground for this claim. This is a case of contract; and the question is what contract the parties have made. For some purposes the law regards .•a barn within the curtilage as part of the dwelling house; bnt it is not popularly so regarded, and it must be very rare indeed that in a contract it is treated as such. It certainly was not so treated in this case. There were two classes of insured property; and the class to which the goods in question belonged was insured as situated in a described building, which the policy designates as the dwelling house ; and the description makes it very clear that no other building was understood to be included. The parties certainly did not understand that in insuring the household goods, etc., in the dwelling house, and also horse, buggies, etc., and barn tools, that the horse, buggies and barn tools were in the dwelling house.
But one of the conditions of the policy would make the meaning very plain if it could otherwise have been considered in doubt. The assured is required to “ state on oath in his proofs of loss that all the merchandise and personal property for which claim is made was at the time of the fire contained in the building or premises described in said policy.’” It was plainly impossible for this plaintiff to state in his proofs of loss that the property for the burning of which he now claims was in “ his two-story frame dwelling-house and additions occupied as a residence,” for it was in a very different building.
A further claim is, that defendant, knowing that these goods were stored in the barn, and not making any objection thereto, or canceling the policy on that account, has waived the right to take the objection when a loss has occurred. But this is not a case of objection, and not a question of waiver. The question is, for what loss this defendant has undertaken to be responsible. Now we find the contract to be that defendant will be responsible for the loss by fire of these goods while they remain in the dwelling-house, but not when out of it. But the defendant could not insist that the goods should remain in the dwelling-house; plaintiff might remove them at will, and for any reason that might incline him to do so. And this being his undoubted right, there would be nothing for defendant to waive in respect to it. "Waiver implies a right to object to what is being done; but there was no such right .here. The defendant merely undertook for a certain responsibility while the goods were in the house; and it was at the plaintiff’s option to have them there or elsewhere as he pleased. If they were lost by fire when elsewhere, the loss was not one against which the defendant had undertaken to insure him. Nor was defendant called upon to cancel the policy by reason of the goods being removed from the building where they were insured. If the dwelling-house had been repaired and the goods restored to it, the policy would again have covered them; and this, for anything that appears to the contrary, may have been what both parties desired. At any rate it does not appear that the plaintiff desired the policy canceled; and if he had desired it, the cancelment would have been optional with defendant.
The cases of Hartford Ins. Co. v. Farrish 73 Ill. 166; Annapolis etc. R. R. Co. v. Baltimore Fire Ins. Co. 32 Md. 37: s. c. 3 Am. Rep. 112; and Bryce v. Lorillard Ins. Co. 55 N.Y. 210, support the views here expressed, and are decisive.
The judgment must be affirmed.
The other Justices concurred. | [
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