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Wiest, J.
The principal defendant in three garnishment suits moved the circuit court to dismiss the writs for noncompliance with a statutory requirement and, upon denial of the motion, reviews by appeal in the nature of certiorari.
Affidavits for the writs averred that the principal defendant' was indebted to plaintiffs in sums not exceeding stated amounts. The statute," 3- Comp. Laws.; 1929,. § 14857, requires the affidavit.", for writ of garnishment to state that the principal defendant is indebted to plaintiff “in a given amount.”
The point is made that the affidavits did not state given amounts. Subsequent provisions of the statute (3 Comp. Laws 1929, § 14900) provide for release of the writ upon giving a bond by the principal' defendant “in a penal sum equal to double the amount of the claim of the plaintiff, as sworn to in the affidavit filed for the writ of garnishment.”
The statute being in derogation of the common law, must be strictly construed and, as it outlines the averments required in order to warrant issuance of the writ, its requirements must be exactly followed. It may be that the averments of indebtedness, as not exceeding a stated amount, did not, in the instances at bar, exceed possible future judgments, inclusive of accruing interest and costs, but, if the practice is sanctioned in this instance, it will stand as an amendment to the statute and permit uncertainty in place of the certainty required by the statute.
It was said in United Collieries, Inc., v. Martin, 248 Ky. 808 (60 S. W. [2d] 125, 89 A. L. R. 971):
“The proceeding in garnishment is special and statutory, affording a harsh remedy, and one pursuing it must bring himself within the statute and follow its mandates. The steps are outlined for vesting the court with jurisdiction over the person of the garnishee and the property in his hands belonging to the principal defendant. It is generally held that these provisions are jurisdictional and unless they have been strictly complied with the court has no authority to proceed;” citing, among other authority, Peoples Wayne County Bank v. Stott, 246 Mich. 540 (64 A. L. R. 427).
It is manifest that the affidavits did not state given amounts but only much or little within stated sums. It is no hardship to require a plaintiff to state the amount of his claim and thereby afford employment of the statutory method of release from the writ.
The affidavit is the foundation upon which arises jurisdiction to issue the writ of garnishment, and the statute requires that the exact amount claimed be given. Given amounts were not stated in the affidavits for the writs and the court acquired no jurisdiction.
The writs are dismissed, with costs to the principal defendant.
Nelson Sharpe, O. J., and Potter, North, Fead, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred. | [
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Black, J.
July 16, 1941, plaintiff Bernstein as-lessor, and defendant Shifman as lessee, executed a written lease of certain business and living-apartment premises located on Hastings street in Detroit.. The term of the lease was 15 years, ending July 31,. 1956. It is agreed that the respective undertakings of the parties were duly performed save only as; brought to issue in the case before us. The controversy turns upon construction and effect of the following covenant appearing in the lease:
“5. Tenant, as a further consideration for this-lease, agrees to make improvements on said premises-to cost not less than $10,000 during the term of this-lease, and shall present to landlord proof of such expenditures. All and any improvements, alterations- and additions shall be performed in a good, sufficient, substantial and workmanlike manner, to the reasonable satisfaction of the landlord. Any and all of said alterations, improvements and additions shall he in accordance with plans and specifications filed with and approved by the department of building and safety engineering of the city of Detroit, or such other department or bureau which may have jurisdiction in relation to such alterations, improvements and additions. The tenant shall pay all costs, expenses and liabilities arising out of or in any way connected with the said improvements, alterations and additions and shall keep the demised premises and structures thereon free and clear from any and all liens of mechanics, or materialmen, and all liens of a similar character arising out of or growing out of the improvements, alterations, additions, repairs and maintenance of the buildings on the demised premises. All and any of said improvements, alterations and additions shall, at the expiration of this lease, be and remain in the said premises and belong to the landlord as a further consideration for this lease and no compensation shall be allowed or paid therefor to the tenant.”
At conclusion of the demised term the plaintiff lessor brought suit against the defendant lessee, counting upon the quoted covenant and alleging that the lessee had failed to make the stipulated improvements. She claims the right to judgment against the defendant in the sum of $10,000 and, having recovered but $1,996.68 by judgment below, appeals to this Court for reversal.
The lessee concedes that he did not perform the covenant “to make improvements * * * to cost not less than $10,000 * * * during the term of this lease.” He insists that the covenant is “too vague and indefinite to be enforceable,” and that it is not actionable for want of testified proof of “damages in the amount of $10,000.” Finally, he asserts that ¡plaintiff waived “compliance with the promise to (make improvements” and is “estopped to insist upon its performance.”
We accept defendant’s connterstatement of the question to be decided on appeal. It follows:
“Does a promise ‘to make improvements on said premises to cost not less than $10,000 during the term of this lease’ constitute a binding and enforceable contract?”
Our answer, applying the question to the presented facts, is affirmative.
The quoted covenant, unlike any similar one scrutinized in the conflicting authorities cited to us, plainly calls for the expenditure by the lessee of the sum of $10,000 toward permanent improvement of the demised premises. The covenant stipulates no time for performance beyond requirement that the improvements be made “during the term of this lease,” thus allowing the lessee the entire term within which to perform (32 Am Jur, Landlord and Tenant, § 785, p 670). It was, we must presume, inserted in the lease for a purpose. Unless waived by subsequent agreement, or unless estoppel to assert breach did intervene, the covenant entitled the lessor to surrender of the demised premises, at end of term, with $10,000 worth of improvements incorporated therein “to the reasonable satisfaction of the landlord.” In so many words, the lessee was under obligation to expend $10,000 on the premises in such manner as would leave the lessor in as good position as if she had expended that amount on the premises herself. Thus we look upon the covenant and its breach as authorizing the lessor to recover the amount defendant did not expend in order that she, herself, might improve the premises to make good the covenant.
While its inclusion was unnecessary to the determination we have reached, the final sentence of the covenant lends significance to conclusion that the parties intended a duly performed result measured by the agreed dollar amount. That sentence fully justifies the lessor’s interpretive inference that the total of rentals called for by this 15-year lease ($34,050) was reduced by agreement in proportion to the covenant of the lessee to incorporate improvements costing not less than such dollar amount.
In no view of this case do we find a troublesome question of law, or difficulty of choice between the divergent lines of authority cited to us by counsel under the alternative text of 51 CJS, Landlord and Tenant, § 393, p 1132. The parties themselves have settled plaintiff’s right to recover the demanded sum of $10,000, subject, of course, to possible validity of special defenses as pleaded, and apparently did so on account of the difficulty, years ahead of time, of making more certain the detail of that which the covenant intendedly calls for in general terms.
This case was not fully tried in the court below. It concluded with determination of the trial judge that plaintiff could recover nothing beyond an apparently stipulated sum owing for “repairs to the premises” and another sum “allowed for taxes paid.” The defendant’s special defenses, having to do with claimed “waiver and modification of the terms and provisions of the said lease” and estoppel on the part of plaintiff to assert breach of the quoted covenant, were not considered. In these circumstances we reverse and remand for new trial. Costs to plaintiff.
Dethmbrs, C. J., and Carr, Kelly, Smith, Edwards, Voelker, and Kavanagh, JJ., concurred.
The covenant, in essence, is a so-ealled “satisfaction” -undertaking and belongs to the second class considered in Wood Heaping Mowing Machine Co. v. Smith, 50 Mich 565, 570, 571 (45 Am Rep 57). See application of the Wood Case in Schmand v. Jandorf, 175 Mich 88, 93-95 (44 LRA NS 680, Ann Cas 1915A, 746).
The cited text reads:
“The general rule is that, on a lessee’s breach of a covenant to make improvements, a lessor may recover what it would eost to make them, and the difference in the rental value of the land until they could be made after the expiration of the term; but it has also been held that the measure of damages is the difference between the value of the premises with and without the improvements.” | [
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Fead, J.
Plaintiff filed bill and had decree restraining enforcement of an assessment against it for drain taxes.
Petition for the drain was filed in 1925. At that time a village could not be assessed as a unit for drain benefits.
Plaintiff village commissioners and officers individually signed petitions for laying out the district and locating the drain at bar; by resolutions in January and June, 1927, the village commission formally urged construction of the drain; on July 8th the village released right of way in a street for it. By Act No. 331, Pub. Acts 1927 (see 1 Comp. Laws 1929, §4862 et seq.), effective September 5th, a village could be assessed at large for drain benefits. On September 15th the drain commissioner entered notice of letting contracts and of review of apportionment of benefits; notices of the review were published but made no reference to the village; and no notice was served on the village- president as required by the act. On September 15th, also, the drain commissioner entered in his office the statutory order as to the number of instalments and the issue of bonds. It shows the apportionment of benefits to plaintiff at 10 per cent, of the cost. The bond form was approved by the treasurer and probate judge.
The village manager of plaintiff and a commissioner attended the hearing on apportionment, learned that the village had been charged with 10 per cent, of the cost, reported the fact to the village commission, and the manager solicited the drain commissioner to reduce the apportionment. He knew how to make application for review but did not do so as the village wanted the drain constructed because it would save it a large sum of money in the disposal of sewage.
Afterwards a determination of costs was made and the contract for construction let. A village engineer did preliminary work and the drain commissioner paid the village for it. The engineer who designed the drain worked under the orders of the official village engineer. No objection to the project was made by the village and it paid to the township, February, 1929, $5,019 to reimburse it for amounts it had paid on the assessment. Plaintiff claims the apportionment and assessment against it are void for want of notice and irregularities in not naming it in all the proceedings and because the proceeding had been commenced before it could be assessed for benefits.
Plaintiff, having had actual notice of all the apportionment proceedings against it, should promptly have pursued the remedy of certiorari for the matters now claimed (Strack v. Miller, 134 Mich. 311; Township of Clarence v. Dickinson, 151 Mich. 270; Auditor General v. Union Lake Land Co., 239 Mich. 437), and, having stood by and seen the drain constructed and the expense incurred without pursuing such remedy, it is estopped from complaining of them (Moore v. McIntyre, 110 Mich. 237; Hall v. Slaybaugh, 69 Mich. 484; Township of Walker v. Thomas, 123 Mich. 290; Wilson v. Woolman, 133 Mich. 350). It may be said that the facts present a particularly strong case of estoppel because the village was a moving and insistent party in furthering the project, part of the drain was constructed to care for its particular needs, the drain saves the village over twice the amount of the assessment against it and its complaint of statutory irregularities is purely technical in the light of its actual knowledge.
Assuming it is open, the serious question is whether the whole proceeding was void for lack of jurisdiction on the ground that the project is a sewer and not a drain. .It runs along the easterly "boundary of the village about 2,000 feet and then 7,000 feet to a natural watercourse, which had been improved and is called the Red Run Drain. It is constructed of reinforced concrete,, has a diameter of 7.6 feet at the outlet, 3 feet a,t the upper end, is covered, and its greatest ..depth is 17.5 feet. It has manholes, catch basins, junctions, chambers and basins. It can take care of surface water. It is so constructed that it can carry raw sewage. Stubs for house connections in the village were installed about 20 feet apart. Connections have been made in the village but the sewage must first pass through septic tanks. The village surface water had been satisfactorily cared for by open ditches. The principal concern of the village in the drain was in disposal of its sewage. Obviously the thing has many of the characteristics of a sewer, as indicated in Clinton v. Spencer, 250 Mich. 135; Township of Lake v. Millar, 257 Mich. 135; Kinner v. Spencer, 257 Mich. 142, and of a drain, Hankinson v. Deake, 265 Mich. 1.
If the drain had been built merely to serve the purpose of tbe village, probably the facts would preponderate in designating it as a sewer. But, as measured by the cost, 90 per cent, of it, or, as measured by length, nearly fourth-fifths of it serves other territory, including two townships. Except that there are some eighty houses in the district outside of plaintiff village, we are not told of the conditions in such territory. The evidence was confined almost wholly to the village. The fact that the village is not permitted to run raw sewage into the drain, that it leads to a natural watercourse, and that most of it serves open country, would raise strong inferences that the major purpose of the project is drainage. The fact that a small part of it has joint drainage and sewage functions would not establish the character of the whole project as a sewer.
It is a presumption that public officers act in accordance with the law. The proceedings designated the project as a drain and were conducted by the proper drain officers under the drain law. It must be assumed, then, until the contrary is shown, that the project is a drain. Want of jurisdiction must be affirmatively proved. We do not think plaintiff has sustained the burden of proof.
Decree reversed and bill dismissed.
Nelson Sharpe, C. J., and Potter, North, Btjtzel, Btjshnell, and Edward M. Sharpe, JJ., concurred with Fead, J. | [
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Black, J.
This is an automotive negligence case. The jury returned a verdict in favor of defendant, on which judgment was entered. Plaintiff’s appeal presents but one question, stated by his counsel with rule-required comment as follows:
“Should the trial judge have questioned prospective jurors to determine whether they were fellow members of defendant in a reciprocal inter-insurance exchange and automobile club?
“The trial judge said ‘No.’
“Plaintiff and appellant say such questions should have been asked.”
By a pleading entitled “Request for Interrogation of Jurors Upon Yoir Dire” plaintiff asserted that defendant was, at the time of suable events, a member of the Automobile Club of Michigan and an insured of the Detroit Automobile Inter-Insurance Exchange; that the Exchange was and is a reciprocal or mutual organization; that the insurance carried by defendant with the Exchange protected him against liability as alleged by plaintiff; that counsel for defendant are employees of the Exchange and that their representation of the defendant “is solely by reason of the defendant’s insurance;” that the Exchange “is one of the largest automobile insurers in this State and has many thousands of members and persons insured within the county of Wayne and the area from which the jurors herein are selected;” that each of the members of the Exchange “has a direct financial interest in and a pro rata ownership of the assets and reserves” of the Exchange; that each member of the Exchange has “a direct financial interest in the outcome of this action” and, in general, that prospective jurors should be examined in open court “concerning their connection with or membership in said Club or Exchange.”
By such request for interrogation plaintiff moved that the trial judge “ask of each person drawn as a juror” questions as follows:
“1. Do you carry a policy of automobile insurance?
“2. Is your automobile insured with a mutual company or in a reciprocal inter-insurance exchange?
“3. In what mutual insurance company or through what reciprocal inter-insurance exchange are you insured ?
“4. Are you a member of the Automobile Club of Michigan commonly known as the Triple A?
“5. Are you or is any member of your family employed by any insurance organization or engaged In investigating or adjusting claims arising out of automobile accidents ?”
Tbe trial judge ruled:
“Tbe court is of the opinion that the language of the statute is mandatory, and bars any reference whatever during the trial to an insurance company, and for that reason the court is going to deny the request made here on behalf of Mr. Darr by Mr. Maride.”
It is not shown that plaintiff’s counsel, since the jury was discharged, has sought information from the Exchange or defense counsel for the purpose of obtaining answers to the above interrogatory questions or, for that matter, that counsel has interested himself in the obtaining of information tending to establish, as a basis for new trial, relevant interest or bia,s of members of the jury as sworn. It is evident, by and large, that counsel was and now is intent on an open court injection into the case, by means of voir dire examination, of the fact or impression that an invisible defendant stands back of the visible defendant in a financial way.
Actually, the stated question was brought here for the salient purpose of testing Judge Gilmore’s right to apply the statutory provision to which he referred. In so many words, that provision since 1929 has attemptedly banned all reference to insurance and the “carrying of such insurance” during the trial of a case such as this plaintiff has declared upon (see the italicized portion of section 33, subd fi, chapter 2, part 3, of the former insurance code [CL 1948, §522.33 (Stat Ann 1943 Rev §24.296)] and section 3030 of “The Insurance Code of 1956” [PA 1956, No 218 (CLS 1956, § 500.3030, Stat Ann 1957 Rev § 24.13030)]). In such connection counsel points to Harker v. Bushouse, 254 Mich 187 and Fedorinchik v. Stewart, 289 Mich 436, and contends for constitutional reasons given in Harlcer that such provision is void insofar “as it attempts to control judicial power.” This brings us to tbe summit of the presented question.
We suggest that the Court was right as to premise but wrong of conclusion in Harlcer. It is true that the legislature cannot dictate or control the procedures of our circuit courts. Authority of such nature is reserved by the Constitution to this Court. As Mr. Justice Wiest observed in Stepanian v. Moskovits, 232 Mich 630, 639, “the legislature does not occupy the judicial saddle.” Nevertheless, and for a’ that — here we think our membership overlooked something when Harlcer was decided in 1931, —this Court by original and present section 3 of Court Rule No 1 (effective January 1, 1931) has firmly adopted the questioned statutory rule of practice, same in no sense being inconsistent with any former or present rule of court. That makes the statute good.
The fact that such adoption has been overlooked as interim decisions have been handed down is no reason for continued disregard of the provision, at least in the absence of compelling circumstances showing that a given plaintiff has been or will be injured, prejudicially, by a denial of voir dire examination in form as requested here. Considering said section 3 of Court Rule No 1 (1945), the provision is as much an effective rule of practice as if written into our rule book (Love v. Wilson, 346 Mich 327). So, and as long as statute and court rules pertinently remain unamended, we should as a matter of enforcement of our own rules uphold circuit judges when they apply the statute and suppress voir dire jury examination in violation thereof.
Aside from the above considerations it would appear that our decisions, extending from Church v. Stoldt, 215 Mich 469, through Spelker v. Knobloch, 354 Mich 403, might well he scanned for the purpose-of venturing suggested practice when a jury case-of present nature is being readied for trial. Starting with the accepted proposition that the latitude-of voir dire interrogation is largely a matter of judicial discretion, and recognizing that a rare case may come to issue in which either party may rightfully become entitled to reliable knowledge respecting possible juror-interest in the litigatory prospects of a hidden defender, we think there is a way to provide such information and yet avoid the usual sad effect of insurance-suggestion when that is done during the course of voir dire.
In the first place, modern pretrial practice and related discretion considered, there is no reason why the questing plaintiff may not secure, on oath prior to trial, such information as will fairly disclose-whether any prospective juror is interested, along with an insurer, in the result of the case at hand. Or, in a related direction, the ex parte practice rejected in Campbell v. Osterland, 283 Mich 175, 178, might be utilized and extended to the point of examination and cross-examination, by and before the trial judge-at chambers, of the deposing person whose affidavit is proffered in lieu of voir dire examination. Few insurers would risk a probable fraud action stemming from the giving of false information during the course of such examination and cross-examination, and the disclosed facts would provide the fact-seeking party and the trial judge with such knowledge as doubtless would lead to agreed removal, from the black box, of the name of a possibly interested venireman. Sure, there is a way. Is there a will on the part of counsel — for both parties — to follow it?
We find no reversible error. Judgment affirmed. ■Costs to defendant.
Dethmers, C. J., and Carr, Kelly, Smith Edwards, Voelker, and Kavanagh, JJ., concurred.
See Const 1908, art 7, § § 5,10. — Reporter. | [
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] |
Butzel, J.
On July 12, Í920, the electors of the city of Pontiac, Michigan, adopted a home rule charter in conformity with the provisions of article 8, §§ 20, 21, of the Constitution of the State of Michigan, and Act No. 279, Pub. Acts 1909, as amended (1 Comp. Laws 1929, § 2228-2274). On November 28, 1933, the city manager submitted' to the city commission, which governs the city, a proposed budget for the fiscal year beginning January 1, 1934. In accordance with the provisions of Act No. 273, Pub. Acts 1925, 1 Comp. Laws, 1929, § 2694, as amended by Act No. 142, Pub. Acts 1931, he included the sum of $562,966.41 for payments of the principal and interest on the general bonded obligations that would become due for the 12 months’ period from August 1, 1934. This sum included general city and water obligations but no special assessment obligations. It is expected that $68,306.39 will be realized during the year from the revenues from the water department, and on application of this amount toward payment of interest on the water bonds, the additional sum of $494,660.02 would be required to pay principal and interest on the city obligations exclusive of the special assessment debts during the.year. Notwithstanding this action of the city manager, the city commission on or about January 31, 1934, enacted an annual appropriation ordinance that only included $75,204.86 for debt service in a budget in the amount of $861,-112.74, which was to cover the expenditures of the city for the year. The sum thus included for debt-service is $419,455.16 short of the $494,660.02 required for principal and interest on the city’s obligations exclusive of special assessment debts maturing during the 12 months’ period. The total assessed valuation on real and personal property for the year 1933 was $53,168,555. It was estimated that the assessed valuation for the year 1934 will be a similar amount, and if a tax of two per cent, were levied, it would, if paid, bring in the sum of $1,063,-371. The commission, however, by its ordinance intends to levy a tax on the assessed valuation so as to only realize the sum of $861,112.74, the amount of the budget as set forth in the ordinance. This sum is wholly inadequate to take care of the debt service and the other expenses of the city for the year. If the city undertook to raise a sufficient amount so as to include the debt service for the year, it would be necessary to levy a tax of 2.40 per cent, provided the assessed valuation for 1934 is neither larger nor smaller than that for the year 1933.
Plaintiffs are the members of a bondholders’ protective committee for the city of Pontiac by virtue of an express trust contained in a written instrument vesting in them the legal title, with all rights and powers of ownership, in the bonds deposited thereunder. In this capacity they hold over 60 per cent, of the aggregate amount of the bonds and interest maturing during the year beginning August 1, 1934. On February 8, 1934, they sent a written communication to the mayor and the commissioners of the city of Pontiac, demanding that they levy upon the 1934 tax roll a sufficient sum so as to pay the full amount of principal and interest payments maturing during the year for debt obligations, and further that the ordinance previously adopted by the commission for the budget be amended so as to comply with this demand. .After futile efforts to agree upon a mutually satisfactory refunding plan, plaintiffs brought the present mandamus proceedings in this court, to compel the commission of the city of Pontiac to convene and amend its budget covering the items for bond principal and interest maturing during the 12-months’ period beginning August 1, 1934, so as to provide the sum of $152,045 for the payment of principal and interest maturing during said period upon its water bonds, the sum of $246,250 for the payment of principal maturing during said period upon its other general obligation bonds, and the sum of $160,362.41 for the payment of interest maturing during said period upon its other general obligation bonds, and that said commission meet and amend its annual appropriation ordinance for 1934 so as to provide for a tax levy upon the 1934 city tax roll of the sum of $83,747.61 for the payment of principal and interest maturing during the 12-months’ period beginning August 1, 1934, upon its water bonds, the sum of $246,250 for the payment of principal maturing during said period upon its other general obligation bonds, and the sum of $.160,362.41 for the payment of interest maturing during said period upon its other general obligation bonds, and that said annual appropriation ordinance be otherwise amended to conform with the foregoing, and that the city commission cause said taxes to be certified to the board of assessors of said city; that said writ of mandamus further require William R. Ransom and Leo J. Heenan, who constitute the board of assessors of said city, to spread said taxes upon the 1934 city tax roll; and that said writ of mandamus further require the performance by the officials of the city of Pontiac of all duties required by law for the levy and. collection of taxes. The case is presented on duly verified petition, answer, reply to answer and answer to reply.
Defendants in their answer claim that plaintiffs are not actually the owners of the bonds, and therefore not the proper parties in interest, and have no right to bring the proceedings. The bondholders’ protective committee agreement dated October 27, 1932, and attached to the plaintiffs’ petition vests in plaintiffs title to the bonds with full power of ownership. They can give full acquittances and surrender the bonds and coupons on payment which they also have the right to enforce. The fact that they are named as trustees in the instrument does not preclude them from suing in their individual names. See Barak v. Detroit Apartments Corp., 232 Mich. 59; Curry v. Raich, 245 Mich. 146; also 3 Comp. Laws 1929, § 14010. Mandamus is the proper method of enforcing.plaintiffs’ rights. Burke v. City of River Rouge, 240 Mich. 12; Chemical Bank & Trust Co. v. County of Oakland, 264 Mich. 673.
Defendants claim that the constitutional provision and legislative enactments herein set forth limit the rights of taxation for city purposes to a maxi mum of two per cent, for any fiscal year. They refer to the following provisions of the Constitution:
“Article 8, Sec. 20. The legislature shall provide by a general law for the incorporation of cities, and by a general law for the incorporation of villages; such general laws shall limit their rate of taxation for municipal purposes, and restrict their powers of borrowing money and contracting debts.
“Sec. 21. Under such general laws, the electors of each city and village shall have power and authority to frame, adopt and amend its charter and to amend an existing charter of the city or village heretofore granted or passed by the legislature for the government of the city or village, and, through its regularly constituted authority, to pass all laws and ordinances relating to its municipal concerns, subject to the Constitution and general la%us of this State.”
Defendants also refer to the following two sections of the home rule act, Act No. 279, Pub. Acts 1909, found in 1 Comp. Laws 1929, §§ 2230, 2241:
“Sec. 3 * * * (f) That the subjects of taxation for municipal purposes shall be the same as for State, county and school purposes under the general law;
“(g) For annually laying and collecting taxes in a sum not to exceed two per centum of the assessed value -of all real and personal property in the city.
“Sec. 5. No city shall have power:
“(a) To increase the rate of taxation now fixed by law, unless the authority to do so shall be given by a majority of the electors of said city voting at the election at which said proposition shall be submitted, but the increase in any case shall not be such as to cause such rate to exceed two per centum of the assessed value of the real and personal property in such city.”
Charter of city of Pontiac, chap. 9, § 13.
“The aggregate amount which the commission may raise by a general tax upon the taxable real and personal property of the city, for the purpose of defraying the general expenses and liabilities of the corporation, shall not exceed in any one year, two per cent, of the assessed value of all real and personal property in the city, as fixed by the assessment roll of the year preceding the year in which-the tax is levied.”
Plaintiffs, however, claim that the entire question is ruled by Act No. 273, Pub. Acts 1925, § 5, as amended (1 Comp. Laws 1929, § 2694, as amended by Act No. 142, Pub. Acts 1931), which in part provides as follows:
“Sec. 5. Whenever any money shall be borrowed by any municipality it shall be the duty of every officer or official body charged with any duty in connection with the determination of the amount of taxes to be raised or with the levying of such taxes, to include in the amount of taxes levied each year an amount sufficient to pay the annual interest on all such loans, any instalments of the principal thereof falling due before the time of the following tax collection and all payments required to be made to sinking funds. In any municipality having any debt novr outstanding and unpaid, a tax shall in like manner be levied each year, sufficient to pay the interest on such debt falling due before the time of the following tax collection, to pay any principal instalment of serial bonds due before the time of the following tax collection and to deposit into a sinking fund annually an amount which with the increment thereof will be sufficient to pay the principal of such debt at maturity or within the term of any refunding bonds hereby authorized to be issued. * * * Any officer who wilfully fails to perform the duties required of him by this section shall be personally liable to the municipality or to any bond holder for any los.s or damage arising from such failure. No limitation in any statute or charter shall prevent the levy and collection of the full amount of taxes required by this section for the payment of debts, but nothing herein shall authorize the levy of a tax for any other purpose exceeding the existing tax limitation.”
They also claim that chapter 10, § 4, of the charter of the city of Pontiac imposes the duty on the city to raise the taxes for debt service in addition to all other amounts required for the operation of city government irrespective of whether the total tax is in excess of two per cent, or not. The section is as follows:
“Whenever bonds shall be issued, it shall be the duty of the commission annually, at the time and in the manner that other taxes are levied, to levy a tax in addition to all other taxes authorized by this charter, sufficient in amount to pay the principal and interest of such bonds as they respectively become due.’.’
In the address to the people adopted by the constitutional convention at the time it voted to submit the present Constitution, it was stated that while each city was left to frame, adopt and amend its charter provisions, which had reference to its local concerns, the legislature had the power to enact into law such broad, general principles relative to organization and administration as are or may be common to all cities 'and villages, and it was necessary to impose certain powers and prohibitions designed to secure conservative action on the part of those to become responsible for the future conduct of such affairs. For this reason, the power to limit the rate of taxation and restrict debts was left to the legislature, where it would be subject to such changes as might be necessary by changing conditions. 2 Debates, Constitutional Convention, p. 1432.
Article 8, § 21, of the Constitution, hereinbefore quoted, expressly states that the charter that might be adopted by a city was subject to the Constitution and general laws of the State. The legislature in the exercise of this power thus reserved, adopted Act No. 273, Pub. Acts 1925 (1 Comp. Laws 1929, § 2694, as amended by Act No. 142, Pub. Acts 1931, hereinbefore quoted), which specifically stated that no limitation in any statute or charter shall prevent the levy and collection of the full amount of taxes required solely for the payment of debts, and made it necessary for the city to include in the amount of the taxes levied each year a sum sufficient to pay the annual interest and the instalments of principal oh its obligations falling due before the time of the following tax collection. It specifically referred to all debts then outstanding and unpaid. Defendants claim that this act, if it does apply, is unconstitutional in that the title of the act does not show that it is a modification of the home rule act. The title is as follows:
“An act to regulate the issue of bonds, or other obligations, by municipalities in this State, to provide the method of payment of such bonds, or other obligations, and to prescribe the duties of municipal officers and of the State treasurer in connection therewith. ’ ’
It further provides in the body of the act that all inconsistent acts and parts of acts are repealed (1 Comp. Laws 1929, § 2702). The title to the act is full and complete. The act was passed in conformity with the provisions of article 8, § 21, of the Constitution, which provided for the incorporation of the cities subject to the general laws of this State. In Harsha v. City of Detroit, 261 Mich. 586 (90 A. L. R. 853), we held that the legislature might modify the charters of municipal corporations at will and that the State still retained authority to amend charters and enlarge and diminish their powers. City of Kalamazoo v. Titus, 208 Mich. 252; Clements v. McCabe, 210 Mich. 207; Attorney General, ex rel. Lennane, v. City of Detroit, 225 Mich. 631. In Doyle v. Election Commission of City of Detroit, 261 Mich. 546, we again held that the general law passed by the 1931 session of the legislature did not infringe upon the right of municipal home rule and was not unconstitutional; that it being a general law, the home rule charter of the city of Detroit was subject thereto and not infringed thereby. Neither does the 15-mill amendment, article 10, § 21, of the Constitution include home rule cities within its scope. School District of City of Pontiac v. City of Pontiac, 262 Mich. 338. While the case of Hammond v. Place, 116 Mich. 628 (72 Am. St. Rep. 543), was decided before the present Constitution and the legislative acts hereinbefore referred to, nevertheless the general principles therein stated still apply. In that case, the plaintiffs obtained a. writ of mandamus to compel the assessor to levy upon the tax roll the amount of plaintiff’s judgment, which represented the amount due on matured bonds. The defendant contended that such a levy would cause the tax rate to exceed the three per cent, provided in the charter of the city. It stressed the fact that owing to the change in conditions and the moving away of large industries, the city was in very great financial distress and unable to meet its obligations. The court said:
“The contention means this: That the municipality may avoid its legal obligations by the reduction of its valuation, and making its running expenses equal to the limit of taxation. This is practical repudiation. Whether the valuation of the property of this city at $33,000 was reached by the same methods as were severally condemned by this court, speaking through Justice Cooley, in Wattles v. City of Lapeer, 40 Mich. 624, we do not know, since there is no explanation in the record. Whether, however, this singular result would follow from a strict construction of the limitation clause in its charter, we need not determine. Possibly in contemplation of such results, a special statute was enacted, providing for the assessment of judgments rendered against municipalities. 3 How. Stat. § 8218. This statute provides that judgments rendered against municipalities shall be assessed by the assessing officers upon its taxable property, and the amount thereof added to the other municipal taxes. It was enforced in Shippy v. Mason, 90 Mich. 45. It clearly provides for the payment of judgments, exclusive of the limitations to taxation established by municipal charters.”
It also stated in answer to the claim that the city was in financial straits, that:
“Poverty, however, is no more defense against just debts in municipal corporations than in any other corporation or an individual.”
As the city was bound to take care of its debt service for the year by the provisions of Act No. 273, Pub. Acts 1925, we need not discuss plaintiffs’ further contention that chapter 10, § 4 (Pontiac charter), also imposed this duty upon the city. 50,000 at the present time; that the assessed valuation of the real and personal property gradually declined from $104,038,274 in 1930 to $53,168,555 in 1933; that the total bonded indebtedness of the city together with past-due interest, and also including special assessment obligations, amounts to $7,767,-989.31, of which $166,739.31 is past due, and that on July 31, 1934, there will be $1,853,024.22 past due; that the territory of the Pontiac union schools is almost co-extensive with the city of Pontiac, so that the property in the city must bear the tax burden to support not only the city of Pontiac and its debt service, but also to maintain the Pontiac union schools and pay the latter’s obligations which amount to $3,960,973.98. They further show that the equalized valuation of the city of Pontiac is approximately one-third of that of the entire county of Oakland; that the county has $8,440,514.71 of outstanding Covert bonds, $6,388,012.77 of drain bonds, $1,194,115 of general obligation bonds or a total of $16,022,642.48; that the city of Pontiac has 15 major industries, including two power and electric light plants, and over 34 per cent, of the assessed valuation of the city is on property of industry, which furnishes over one-third of the total tax income; that the city is exercising rigid economy and has cut down its budget over one-half since 1930; that it has delinquent taxes for the years 1930 to and including 1933, amounting to $1,729,607.51,- an amount almost sufficient to pay past due obligations of the city up to July 31, 1934; that, based on the experience of the past three years, the city faces a tax delinquency of approximately 50 per cent.; that the resolution fixing the budget at $861,112.74 for the fiscal year expressly contained a provision that nothing therein contained should be construed as any action on the part of the commission to repudiate or impair any obligations theretofore incurred by the city of Pontiac.
Defendants further present a dire picture of the financial condition of the city of Pontiac, which is largely dependent upon the automotive industry. They show that owing to the depression and the unemployment that followed, the population of the city decreased from 64,928 inhabitants in 1930 to about
Plaintiffs, on the other hand, claim that defendants have exaggerated the impoverished condition of the city, when, as a matter of fact, it is emerging from its difficulties, and they call attention to the fact that the condition of the automotive industry is much improved; that during the year the number of men unemployed has very much decreased, that the general financial condition of the city is far better than it was a year ago when all the banks in the city had but shortly before closed down and business had come to a standstill. They further show, in answer to defendants’ claim that it might be obliged to spend $600,000, or thereabouts, for welfare during the coming year, that such relief has almost entirely come from the State and Federal governments, and that defendants recognized this fact by only appropriating $100,000 in the budget for such purposes; that proper provision has been made to partly relieve county roads from Covert road taxes, and to refund the school district debt, and that, as a matter of fact, the city at the present time has upwards of $400,000 in its treasury, though defendants claim that when necessary expenditures are made and this fund is allocated, this amount will be reduced one-half; that many other claims of defendants are based on erroneous calculations. Plaintiffs further show that, while the assessed valuation, as determined by the State board of tax commissioners was $53,168,555 for the year 1933, the board of supervisors placed it for equalization purposes for State and county taxes at $66,874,793; that the city has refused to pay any debts or interest for a considerable period, ancl that other court proceed ings are now pending to force the city to devote moneys collected for debt service to such purpose.
Defendants show that industry has paid a very large part of the taxes that heretofore have been collected, and that placing the tax rate at too high a rate defeats its own purpose, for if taxes are so high as to become confiscatory, industry may move away. They further claim that raising the rate of taxation to too high a figure operates very much like the law of diminishing returns, and will result in a very much larger delinquency and the raising of less money than if the tax were kept at a lower rate. They show that a very large amount of property has not paid any taxes whatever for a number of years, and that such delinquency will continue. They further contend that if the city is called upon to meet its obligations it may result in so depleting its funds that it will not be able to function properly and untoward results may follow.
A further review of the contentions of the parties is unnecessary. We are impressed with the fact that the city of Pontiac has suffered from the economic depression and the deflation of values more than many other cities. It, however, has even neglected to make provision for the interest on the city’s obligations for the year. Defendants simply state that bondholders should wait for the payment of the interest and principal maturing from year to year until the financial clouds disappear, and that in the meantime the city should not be called upon to pay its admitted debts.
We believe that the city has shown that a refunding plan may be necessary, a situation that should appeal most strongly to plaintiffs, and that if they are too harsh in their demands the bondholders will eventually suffer. On the other hand, we cannot overlook plaintiffs’ claim that- while the city may not have purposely avoided its obligations, it has not done all it might have to meet its obligations and it has not the right to insist that the bondholders carry the entire burden. We are asked in effect to declare a moratorium of the city of Pontiac’s debts, and if we cannot do this, to refuse a writ of mandamus on account of the emergency that exists according to defendants’ claims. A writ of mandamus is one of grace. In Thompson v. Auditor General, 261 Mich. 624, where a temporary but very great emergency arose, and other legislation was contemplated to meet the crisis, we declined to issue a writ of mandamus in considering an emergency measure passed by the legislature under the police power. This was at a time when the banks were closed and it was deemed a useless waste of money to advertise the sale of property for delinquent taxes that could not be paid on account of unusual circumstances.' The present condition is in no sense comparable with the one that existed at that time. We are firmly convinced that a fair and proper refunding plan should be agreed upon. The obligation of the city is manifest. The right of the plaintiffs is clear in point of law. We have not the legal right under the conditions as presented to withhold a writ of mandamus. Unless the city commission within the next 10 days reconvenes and amends its annual appropriation ordinance so as to include a sum sufficient to pay the principal payments and interest that mature for the 12-months’ period beginning August 1,1934, and within a reasonable time thereafter taxes are levied accordingly, mandamus will issue as prayed for. No costs will be allowed.
Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Bushnell, and Edward M. Sharpe, J j., concurred. | [
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Butzel, J.
Marguerite M. Gignac, widow of Arthur L. Gignac, and Joseph A. Payne, administrator of the estate of Arthur L. Gignac, deceased, both made claim to the proceeds of a life insurance policy issued to Mr. Gignac in 1921 by the Columbian National Life Insurance Company. The amount due on the policy, $3,117.41, has been paid into court by the insurance company. The case was submitted to the court below on the pleadings without any testimony being taken. The facts are not in dispute.
When the policy was issued the insured was married to Amelia M. Gignac, who was named therein as beneficiary. She died in 1931, and shortly thereafter the insured named his three children, Arthur L. Jr., Marion, and James, as beneficiaries. Subsequently the insured married Marguerite M. Gignac, and, on June 3, 1932, he revoked the nomination of his three children as beneficiaries and substituted Marguerite M. Gignac as beneficiary in their place. Right to revoke the designation of beneficiary was reserved. On October 30, 1937, he again executed a change of beneficiary rider whereunder he revoked “the nomination of the present beneficiary” and designated as new beneficiary “Amelia M. Gignac, wife.” At the time this instrument was executed, Amelia M. Gignac had been dead over six years. The contract of insurance contains a provision to the effect that if there be no beneficiary surviving at the death of the insured, the proceeds of the policy shall be payable to the executors, administrators or assigns of the insured.
The court below held that the rider of October 30, 1937, effectively revoked the designation of Mar guerite M. Gignac as beneficiary and that, inasmuch as the person named as beneficiary did not survive the insured, the proceeds of the policy should be paid to the administrator by virtue of the provision referred to above. Mrs. Gignac appealed.
Appellant contends that the insured intended to accomplish only one thing by executing the change of beneficiary rider, i.e., to change the beneficiary, and that inasmuch as it is impossible to give effect to this intent because no new beneficiary capable of receiving the proceeds of the policy was designated, the attempted change must be held to be wholly ineffectual and inoperative and that it in no way changes her rights as the beneficiary.
No exactly similar case has ever arisen in this State, nor, so far as we can find after lengthy search, in other jurisdictions. The cases cited by appellant are easily distinguishable. Thus, in Grand Lodge Ancient Order of United Workmen v. Frank, 133 Mich. 232, we held that where the attempt to change the beneficiary fails because of want of mental capacity on the part of the insured to make such a change, the original designation of beneficiary remains in force. Ladies’ Auxiliary Ancient Order of Hibernians v. Flanigan, 190 Mich. 675, and Ester v. Prudential Insurance Co. of America, 298 Mich. 330, were cases in which the insured intended to make a change in beneficiary but did nothing to carry out such intent. We held that the mere unexecuted intention to change the beneficiary is not sufficient to effectuate such a change. And in Dogariu v. Dogariu, 306 Mich. 392, we held that a valid change of beneficiary was not made where the insured failed to substantially comply with the method of changing the beneficiary provided for and prescribed by the insurance contract.
A somewhat analogous situation to that in the instant case has arisen in other jurisdictions in cases where the insured’s right to designate a beneficiary was limited in the respect that only persons of a certain class were eligible to be beneficiaries, and the insured designated a person not of that class as beneficiary in a change of beneficiary form. Miller v. Prelle, 122 Ill. App. 380; Royal League v. Shields, 251 Ill. 250 (96 N. E. 45, 36 L. R. A. [N. S.] 208); Sturges v. Sturges, 126 Ky. 80 (102 S. W. 884, 12 L. R. A. [N. S.] 1014); Pettus v. Hendricks, 113 Va. 326 (74 S. E. 191); McGough v. Hogan, 175 Wis. 607 (185 N. W. 174, 24 A. L. R. 746); Elliott v. United States, 271 Fed. 1001. In the cited cases it was held that an attempt to name an ineligible person as beneficiary is ineffective and does not have the effect of revoking the previous designation of beneficiary. But see, also, Logan v. Modern Woodmen of America, 137 Minn. 221 (163 N. W. 292, 2 A. L. R. 1676); Bamberry v. Ancient Order of United Workmen, 197 Minn. 592 (268 N. W. 200); and Modern Woodmen of America v. Krogstad, 203 Minn. 508 (282 N. W. 133), wherein it was held that such an attempt to change the beneficiary was at least effective as a revocation of the previous designation. Although all these cases may be distinguishable from the instant one because of the peculiar provisions of the insurance contracts involved, nevertheless the rule set forth in the Minnesota cases reaches a more just result and should be applied in the instant case.
Just what the insured had in mind in the instant case is a matter of conjecture, except that it seems patent that he intended to revoke the designation of appellant as beneficiary. It is possible that he desired to leave part of his insurance to his children and reasoned that by naming a deceased person as beneficiary, who could not possibly survive him, the proceeds of the policy would go to his children, who were his heirs, or to his estate under the terms of the policy and in that way his children and appellant would share therein. This is, however, conjecture.
We do hold that the change of beneficiary rider was effective as a revocation of the designation of appellant as beneficiary. The decree of the trial court is affirmed, but without costs.
Bushnell, C. J., and Sharpe, Boyles, Reid, North, Dethmers, and Carr, JJ., concurred. | [
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Btjtzel, J.
Mary Grylls, vendor under an executory land contract, served notice of forfeiture upon Alice Hergiton, vendee, and instituted summary proceedings against her before a circuit court commissioner to recover possession of the premises. The commissioner rendered a judgment of restitution in favor of plaintiff. On appeal to the circuit court, the trial judge held that plaintiff was entitled to possession of the premises, and found that payments aggregating $375 were past due. However, he stated that the judgment was without prejudice to any rights the parties might have in equity. Defendant has appealed from the judgment of restitution.
The contract was entered into on August 2, 1927, for the purchase of property in the city of Detroit. It recited a down payment of $7,000 and provided for the payment by defendant of an additional sum of $8,000, with interest, in instalments of not less than $75 per month. Defendant was given the right to possession of the property while not in default. Plaintiff, the vendor, was permitted to place a mortgage upon the property at any time for an amount not in excess of 50 per cent, of the purchase price of the property, and not exceeding the balance still due on the land contract at the time of the mortgage. Such mortgage was to take priority over the rights of the vendee. In the event of the vendor’s default on the mortgage payments, the vendee had the right to make the payments and credit them upon the purchase price. On August 30, 1927, plaintiff executed a mortgage on the premises to the Guardian National Bank of Commerce to secure the payment of $5,000, payable three years after date. Plaintiff also borrowed other sums from the bank, using the land contract as collateral, and at plaintiff’s direction, defendant made her contract payments to the bank, which applied them on plaintiff’s other indebtedness. The mortgage fell due on August 13, 1930, and remained unpaid. However, plaintiff continued to make her interest payments thereon, and there is no showing that the bank ever threatened to foreclose. A dispute arose between the parties in regard to a paving tax which, according to a preliminary agreement preceding the land contract, defendant was not bound to pay. The contract itself provided that the defendant should pay all taxes, but plaintiff, in a letter written at a later date, assured defendant that she would assume the obligation. However, the tax was never paid. Defendant, vendee, continued to make her payments of $75 a month regularly on the land contract until August 6, 1931, after which date she refused to make any further payments. The balance due on the contract had then been reduced to $6,106.56.
On February 11, 1932, plaintiff brought suit against defendant in the common pleas court to recover the unpaid instalments on the land contract which had accrued since August, 1931; defendant pleaded the general issue. Some question arose in regard to the nonpayment of the paving tax, and in rendering judgment against defendant for $457, the judge stated informally and off the record that plain tiff was bound to pay the tax when the judgment was satisfied. The larger part of this judgment still remains unpaid. Plaintiff subsequently brought another suit in the common pleas court to recover further payments in default, recovering a second judgment for $382. This judgment also remains unpaid. The pleadings in the second case in the common pleas court show that there was no claim of set-off or recoupment. These proceedings were followed by the present action, here appealed from, in which plaintiff secured a judgment of restitution. In finding the amount of $375 due on the last action, the circuit judge did not include the amount of the unpaid judgments rendered by the common pleas court.
In defense of the plaintiff’s summary proceeding to recover possession of the property, defendant claimed, both before the circuit court commissioner and on appeal before the circuit court, that she was not bound to make any further payments on the contract while plaintiff was herself in default in payment of the paving tax and the mortgage placed on the premises. It appears that plaintiff has paid interest on the mortgage up to September 1, 1931, subsequent to the time when defendant ceased making payments on the contract. There now remains an unpaid balance of $4,375 on the mortgage. There is no showing that foreclosure proceedings have been begun or even threatened.
No question is raised as to the sufficiency of the notice, of forfeiture. Defendant seeks to defend on equitable grounds, but she did not attempt to rescind the contract, or seek the aid of a court of equity. An equitable defense of this nature, even if properly founded, may not be considered by a circuit court commissioner where- the plaintiff has pro ceeded in accordance with the terms of her contract and there is no claim that she has parted with title to either the property or the contract. The defenses before a circuit court commissioner in a suit for restitution following forfeiture are few and narrow. Puziol v. Kastle, 231 Mich. 100; German Bundesheim Society v. Schmidt, 242 Mich. 139; Rosenthal v. American Construction & Realty Co., 262 Mich. 91.
The judgment of the trial court is affirmed, with costs to plaintiff.
Nelson Sharpe, C. J., and Potter, North, Fead, Wiest, Btjshnell, and Edward M. Sharpe, JJ., concurred. | [
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Fead, J.
With, explanations, I conenr in Mr. Justice Potter’s opinion except as to the result.
I agree that the auditor general has no power to “audit” the hooks in the sense of authority to accept and reject items and thereby establish legal right or liability of the commission or its members. But it should be made plain that he has the power and duty to examine the books, as well as invoices, vouchers and other records, and to take such physical inventories as he finds necessary, to determine whether the report of the commission to the State treasurer represents the correct amount of money due the State. In certifying to the report he may, and should, report all items which in his judgment are not proper but having in mind that the statute commits to the discretion of the commission certain policies and the methods of working them out.
At all times, including the final briefs, so far as the commission has disclosed its position to the auditor general or to this court, it has contended that the auditor general has no power to do more than add, subtract, multiply and divide the figures on the report of the commission. Formal demand by the auditor general for opportunity to make an audit, made months ago, was not granted. The public business ought no longer to be delayed.
If the commission now shall offer its affairs to audit by the auditor general, there will be no necessity for issuance of a writ. But the writ will issue, if necessary, on request of the auditor general, without costs.
Nelson Sharpe, C. J., and North, Wiest, Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred with Fead, J. | [
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Yoelker, J.
This is an action by Mina Kieffer, plaintiff-appellant, against W. Harold Yan Leenwen, individually and as executor of the estate of Anna Gelock Leusenkamp, deceased, and Robert J. Yan Leenwen and Julia Keller for specific performance •of an alleged oral contract between appellant and her deceased sister, Anna G. Leusenkamp. Plaintiff Mina claims that she and her sister Anna, both elderly persons, agreed that if plaintiff went to live with and care for sickly Anna for the rest of her life that when Anna died Mina would get all her property, including her home at 707 Fuller avenue, S.E., in the city of Grand Rapids. Her bill of complaint set np this claim in appropriate legal language.
The case, although in chan,eery, was upon plaintiff’s motion tried before a jury in accordance with the statutory provision therefor. (CL 1948, § 618.21 [Stat Ann § 27.1001].) The lawyers for all parties concerned agreed to submit to the jury the following question, which it answered in the affirmative:
“Did the deceased make an offer to the plaintiff that if plaintiff would come and live with her that she in turn would provide that the property at 707 Fuller become the property of the plaintiff as claimed by the plaintiff, and did the plaintiff accept the offer, and has she fulfilled the agreement that .■she made with her sister ?”
At the conclusion of the hearing the chancellor ■only partially accepted the jury’s answer to the above question, and instead directed that a decree be prepared providing that while the plaintiff should ¡receive all of the decedent’s personal property absollutely, that she be granted but a life estate in the ;real estate. This decree, as prepared, further provided that an injunction the court had granted upon the filing of plaintiff’s bill (which enjoined defend ant executor from proceeding with the administration of the estate) be set aside.
Plaintiff objected to the proposed decree and submitted one of her own by which she would have received absolute ownership of all of her sister’s property, including a fee interest in the real estate, the injunction would have been continued, and she would have been granted costs. "Upon rejection by the court of her proposed decree and entry of the other, plaintiff moved that a rehearing be granted. Prom the order denying her motion for rehearing and the entry of the decree, prepared in accordance with the court’s opinion, plaintiff has appealed.
The first question to be determined is: was there a contract? On that point the court agreed with the jury finding that there was a contract, saying in its opinion: .
“The court agrees with the finding of the jury to the extent that the deceased agreed to make provision for the plaintiff in relation to the property in question.”
Defendants-appellees admit a contract in their brief, saying:
“It has been established, both by the verdict of the jury and by the findings of fact and judgment of the court, that a contract was entered into which required that decedent, in some manner, transfer certain real estate to plaintiff-appellant. Defendants-appellees have not raised the question of the correctness of the verdict and judgment by cross appeal.”
The main dispute below and here is what the terms of that contract were. At the hearing below plaintiff called 3 witnesses who testified as follows:
Witness Edith Larr said:
“And she [decedent] said, ‘Well, if she would only give up her work and come and live with me, my house and lot and all that I have, I prom — ’ she says, ‘I have promised that I will give her my house and lot, and what I have when I die will be hers.’ * * *
“And she said she promised to give Mina the house and lot if she would come and live with her, and I said, ‘Do you have that in writing?’ and she says, ‘I don’t but I will have it.’ ”
Witness Howard Hollowell said:
“She [decedent] said, ‘My sister is here with me.’ She said, ‘I am in such poor physical condition for it to be ldnda dangerous for me.’ I had spoken to her several times, shouldn’t she have somebody with her. She said, ‘She had less than any of the rest of them to give up, and so she disposed of what she had, and she is going to live here with me, and in case of the worst come, well, the place will be hers.’ ”
Witness William Gelock said:
“A. She [decedent] told me in the .ease of her death all her property, her house and lot and all her belongings went to Mina.
“Q. Did she tell you that on different occasions? . ■ “A. Yes.
“Q. Did she tell you that more than once?
“A. Two or 3 times, I think.”
In. the absence of persuasive evidence to the contrary we think the foregoing was sufficient to establish both the existence of a contract and the terms thereof as alleged in the bill of complaint. That the words employed here are sufficient to create a fee interest, see Betterly v. Granger, 350 Mich 651, where Mr. Justice Smith wrote to the effect that a fee was created by an oral agreement to give “everything” that the decedent owned.
We now turn to the “evidence to the contrary” presented by the defendants. The only evidence in the record that might conflict with plaintiff’s proofs are 2 wills allegedly executed by the decedent, one made before the contract and the other made after, shortly before Anna’s death, both indicating other disposition of her property. The court admitted these wills into evidence over plaintiff’s objection and seems to have relied quite heavily on one or both in its opinion and in reaching the result it reached. Thus we must decide whether the wills were properly admitted into evidence. Plaintiff claims that the wills are hearsay and thus inadmissible and cites us to Colgrove v. Goodyear, 325 Mich 127, 133 (10 ALR2d 1029), where we said:
“The issue submitted for determination was not what testamentary disposition Philip Colgrove desired or sought to make of his estate. Instead the controlling issue was: Did testator and his wife enter into the alleged agreement? As to that issue the recitals above noted [portions of decedent’s will] were clearly hearsay and defendant was afforded no opportunity of cross-examination concerning them.”
A similar situation is presented by the instant case. The only questions before the chancellor here were: Was there a contract? If so, what were its terms? As to those issues any will, even if proven to have been properly executed — and the wills here involved were not so proven — would at best be self-serving hearsay.
Further quotation from the Colgrove Case would serve only to lengthen this opinion unnecessarily. Suffice it to say that the Colgrove opinion written by Justice North contains a complete and careful explanation of why a will is considered hearsay in a situation similar to the one here presented.
The wills thus being inadmissible because of the rule against hearsay, it follows that the trial court erred in relying thereon to determine the terms of the admitted contract between plaintiff and her deceased sister. To allow the wills to control or affect the outcome of this case was to allow the estate to-do that which the decedent herself could not have done, that is, avoid a binding contract by prior or subsequent unilateral self-serving action by a party to that contract.
The court below relied upon the following quotation from Paris v. Scott, 267 Mich 400, 404, to explain its action:
“Where the alleged contracting parties cannot testify, their acts loom large as compared with what witnesses say they said.”
The judge on his own explained further:
“In determining just what that contract was, resort must be had to the acts of the parties.”
The learned court was quite correct in its general statement of the law, but in applying it to the case at hand we are afraid it momentarily overlooked that the court as well as the jury may look at and rely upon only those acts which are properly admissible in evidence. It seems apparent that the learned chancellor was trying to do equity by reaching what he thought was a fair compromise between the 2 conflicting claims. The very nature of equity requires that the chancellor’s powers in that regard be broad and sweeping. For that reason, among others, a jury in chancery is merely advisory and the chancellor may accept or reject its findings as he sees fit. See White v. Burhhardt, 338 Mich 235. However broad, the chancellor’s powers are not without limits in his proper efforts to reach a fair result. See McLean v. Wortman, 353 Mich 458.
In a suit for specific performance, once the chancellor finds that a contract exists and decides to enforce it, he must do so according to the terms thereof. As the chancellor correctly stated in his opinion:
“The court may not make a new contract for the parties, but must enforce the contract according to its terms if at all. Henry v. Rouse, 345 Mich 86.”
If the chancellor properly found from the proofs that the plaintiff was not entitled to the fee of the real estate, then we are at loss to understand how she became entitled to the “fee” of the personal property. Conversely, if he was correct in awarding' plaintiff all of the personal property, then we are again at loss to understand why she would not be entitled to the fee of the real estate. In situations of this kind, perhaps regrettably, there is no room for compromise, however “fair” it may appear. Plaintiff here was entitled to all or nothing, there was no middle ground. We think the undisputed proofs show that she was entitled to all.
The decree of the superior court is accordingly vacated and set aside and the cause remanded to that court so that it may enter an appropriate decree not inconsistent with this opinion. Costs to appellant.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Edwards, and Kavanagh, JJ., concurred. | [
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Edwards, J.
The city of Muskegon passed an ordinance in 1948 making it unlawful to leave the ignition key in an automobile parked upon a public street. In this case plaintiff claims tbat defendants’ violation of that ordinance resulted in defendants’ automobile doing considerable damage to plaintiff’s grape arbor, while it was being driven by a thief seeking to escape a police chase.
The detailed facts are set out thus in plaintiff’s declaration which the circuit judge dismissed on motion, thus presenting to us on plaintiff’s appeal a question which has not heretofore been decided in this State:
“That plaintiff is informed and believes and alleges the truth to be that on the evening of August 21, 1957, the defendants left their said automobile parked in the 1600 block on Elwood street, a public street, in the city of Muskegon, and did neglect to remove the ignition key therefrom, contrary to the provision of section 54 of the ordinances of the city of Muskegon then and there in force, which read as follows:
“ ‘Unattended Motor Vehicles. No person having control or charge of a motor vehicle shall allow such vehicle to stand on any roadway unattended without first effectively setting the brakes thereon and stopping the motor of said vehicle, and when standing upon any grade without turning the front wheels of such vehicle to the curb or side of the roadway.
“ ‘Every person parking a motor vehicle in any public street or alley in the city of Muskegon shall remove and take with him the key or keys to the ignition thereof and it shall be unlawful for any person to so fail to remove such key or keys. (As amended April 13, 1948.)
“ ‘In connection with the above, it shall be presumed that the owner of the motor vehicle was the operator thereof unless and until said owner shall, by competent evidence, establish that some other person was on said occasion, operating said motor vehicle. (As amended April 13, 1948.)’
“That the thing the aforesaid ordinance was designed to prevent occurred. During the evening of August 21, 1957, or the early hours of the morning of August 22,1957, a juvenile by the name of Donald Fowler was tempted to and did unlawfully take and. drive the said automobile away by turning the ignition key-which defendants had negligently left therein, starting the engine and driving away; that the said Donald Fowler was a reckless and dangerous driver who had previously been charged and convicted of a number of traffic offenses; that some time after the said Donald Fowler had taken the car, he attracted the attention of the police who attempted to stop him; that in an effort to elude the police, the said Donald Fowler drove the car in a reckless and negligent manner in a westerly direction on Marquette avenue at speeds upwards of 80 miles per hour.
“That as the said Donald Fowler approached the intersection of Marquette avenue and Agnes street in the city of Muskegon, he lost control of the vehicle, veered first to the right and then across Marquette to the left, where the vehicle crashed through plaintiff’s fence and into plaintiff’s grape arbor, uprooting a large number of plaintiff’s grape vines and causing the damage complained of herein.”
At oral argument before this Court counsel for both parties agreed that a proper construction of the declaration would hold that the accident and damage did not occur in the act of theft or in immediate pursuit thereafter. It should also be added that the parties stipulated for purposes of the motion to dismiss that the person alleged to have stolen the automobile was a complete stranger to defendants, and that the sole person responsible for leaving the keys in the automobile was defendant Dolly Wittkopp, the wife of the owner.
The trial judge’s opinion indicates that plaintiff conceded that the case should be dismissed as to Albert Wittkopp. He then discussed whether or not the declaration stated a case of actionable negligence against the remaining defendant, finally concluding that the damage which resulted from the thief’s driving was not a foreseeable result of defendant’s violation of the ordinance, and granted the motion to dismiss.
Although we have no Michigan precedent upon the specific question submitted by this case, there have been many decisions in other jurisdictions construing similar ordinances or statutes in the light of somewhat similar fact situations. Many of these are gathered in a 1957 ALR annotation, 51 ALR2d 633, Automobile — Started by Stranger, Thieves, § 17, p 662.
In the absence of statute or ordinance, it is generally held that a driver has no duty to protect others from the actions of thieves who steal his car with the use of the driver’s own keys. Kiste v. Red Cab, Inc., 122 Ind App 587 (106 NE2d 395); Richards v. Stanley, 43 Cal2d 60 (271 P2d 23); Saracco v. Lyttle, 11 NJ Super 254 (78 A2d 288); Castay v. Katz & Besthoff (La App), 148 So 76. Contra: Schaff v. R. W. Claxton, Inc., 79 App DC 207 (144 E2d 532).
Even wliere there was a statute or ordinance prohibiting leaving the key in the ignition, most State ■courts have held that theft of an automobile left with key in ignition by the driver severed, as a matter ■of law, any possible causal relation between the violation of the ordinance or statute and the ultimate •damage occasioned by the thief. Anderson v. Theisen, 231 Minn 369 (43 NW2d 272); Slater v. T. C. Baker Co., 261 Mass 424 (158 NE 778); Gower v. Lamb (Mo App), 282 SW2d 867; Lotito v. Kyriacus, 272 App Div 635 (74 NYS2d 599), appeal dismissed, 297 NY 1027 (80 NE2d 542).
Some cases have, however, held that where the injury or damage occurred in the actual act of theft or immediate pursuit thereafter, a duty to protect •against such injury or damage was imposed by the statute or ordinance, and that there were questions ■of fact for the judge or jury as to whether the surrounding circumstances indicated the driver should reasonably have foreseen the danger to plaintiff and whether or not his violation was a proximate cause of the injury and damage. Ostergard v. Frisch, 333 Ill App 359 (77 NE2d 537); Ney v. Yellow Cab Co., 2 Ill2d 74 (117 NE2d 74, 51 ALR2d 624); Garbo v. Walker, 57 Ohio Op 363 (129 NE2d 537). Under a similar fact situation, one court has held the driver who admitted leaving his keys responsible as a matter of law. Ross v. Hartman, 78 App DC 217 (139 E2d 14, 158 ALR 1370), certiorari denied, 321 US 790 (64 S Ct 790, 88 L ed 1080).
The questions of duty and proximate cause posed by such cases are interesting from the point of view of legal theory. 2 Harper & James, The Law of Torts, 1139 n 20; 14 Mo L Rev 128 (1949); 34 Iowa L Rev 376 (1949); 1951 Wis L Rev 740. See, also, Palsgraf v. Long Island R. Co., 248 NY 339 (162 NE 99, 59 ALR 1253).
We do not, however, need to explore them exhaustively or decide them in this case. As we have noted, the declaration filed herein indicated that the damage did not result from the act of theft or immediate pursuit thereafter.
We believe the liability sought to be imposed by this suit is clearly beyond the scope of duty imposed by this ordinance.
“Under the [prevailing] view inquiry is made into why the particular act or omission complained of was negligent. This will be because the offending conduct foreseeably involved unreasonably great risk of harm to the interests of someone other than the actor. This view would limit the scope of the duty accordingly: the obligation to refrain from that particular conduct is owed only to those who are foreseeably endangered by the conduct and only with respect to those risks or hazards whose likelihood made the conduct unreasonably dangerous. Duty, in other words, is measured by the scope of the risk which negligent conduct foreseeably entails. * * * It means that in each case plaintiff must bring himself within the class of persons threatened by defendant’s conduct. ‘Proof of negligence in the air, so to speak, will not do.’ ” 2 Harper & James, The Law of' Torts, § 18.2, pp 1018, 1019.
Those cases which have allowed recovery (Ostergard, Ney, Garbo, Ross, supra) have apparently interpreted similar statutes and ordinances as designed to promote public safety by preventing car thefts, and, hence, the statutes or ordinances have been interpreted as imposing on drivers a duty to-remove keys running to the benefit of those whose injury in the act of theft of the car might reasonably be foreseen.
To our knowledge, no court has yet held such a statute or ordinance to impose upon a driver a duty to remove his keys running to the benefit of any person whom a thief or his successor in possession might meet and injure hours, days or weeks after the theft.
We cannot hold on the facts in this case that plaintiff was within the class of persons which this -ordinance was designed to protect.
Affirmed. Costs to appellees.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Yoelker, and Kavanagh, JJ., concurred.
For more recent diseussion of the same general problems, see Farley v. Sley System Garages, Inc., 187 Pa Super 243 (144 A2d 600); Torrado v. Corpamerica, Inc., 51 Del — (144 A2d 703). | [
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Kavanagh, J.
Plaintiffs are the owners of a vacant 30-acre parcel of land on Alpine avenue (M-37) located in section 25, Alpine township, Kent county, Michigan, approximately 5 miles north of the city of Grand Rapids.
One of the plaintiffs, De Yries, became interested in purchasing the property, but learned that it was zoned “B” residential. This classification did not permit the operation of trailer parks, which use he proposed for the property. After he had discussed the matter with the township supervisor, who expressed approval of the proposed use, he completed ;his deal with Mr. Kremers in March of 1955. Mr. Kremers retained 542 feet frontage on Alpine avenue to a depth of 505 feet. He conveyed the remainder to De Yries, together with an easement across the parcel retained. Shortly thereafter a petition to the zoning board of Alpine township was made by plaintiff De Vries asking for a zoning change. It was denied by the board because 75% of the neighbors within 500 feet did not consent to the proposed use. Plans and specifications were completed for the trailer camp and filed with the State health commissioner. De Vries understood that a license would be granted as soon as he satisfied local zoning requirements. Belying on the supervisor’s statement De Vries built a roadway from Alpine avenue to his property. Subsequently another petition was filed for a zoning change to permit commercial use of the De Vries parcel and the parcel retained by Kremers. This was denied, as was a petition for a zoning variance made by the plaintiffs herein to the board of appeals because 75% of the neighbors within 500 feet did not consent to the proposed use. Plaintiffs then became partners, transferred title so that they became owners in common of the entire parcel, and brought a suit in equity to enjoin defendant officials from taking any action to classify plaintiffs’ property in a class less liberal than “C-2” commercial and to permit plaintiffs to establish a trailer park on part of the property.
Plaintiffs’ property is located in section 25, Alpine township, at about the east-west one-quarter line. At the time plaintiffs were attempting to obtain a zoning change, each separately owned parcel in section 25 along Alpine avenue was zoned parcel by parcel as follows: Bekins’ parcel, being a 40-acre piece, was zoned Industrial 5. This is the least restrictive classification contained in the Alpine township zoning ordinance, and permits any use not constituting a nuisance to adjoining property owners. The parcel immediately to the north of the one just mentioned is zoned “C-2” commercial. The next parcel to the north is zoned “B” residential, which permits multiple dwellings, motels, private clubs, boarding houses, schools, churches, greenhouses, public garages, et cetera. The next parcel to the north is zoned “C-2.” The next parcel to the north is owned by plaintiffs and is zoned “B” residential. The next parcel to the north is owned by Howard Campbell and is zoned “C-3.” This zone permits, in addition to the uses permitted in “C-2” zones, gravel pits, sawmills, fox farms, body and bumper shops, and industrial uses where not more than 10 persons are employed. The next parcel to the north is zoned residential “B.” The next parcel to the north is zoned “C-2.” The next parcel to the north is zoned residential “B.” The next parcel to the north is zoned “C-2.” Altogether there are 10 parcels fronting on Alpine avenue, 4 are zoned “B” residential, 4 are zoned “C-2,” 1 is zoned “C-3,” and 1 is zoned Industrial 5. On 6 of the 10 parcels trailer parks are permitted. The parcels immediately to the north and south of plaintiffs’ property are in zones permitting trailer parks.
At the time of the original adoption of the present zoning ordinance, on July 24, 1950, this entire section was zoned “B” residential, with the exception of the Campbell 2-acre parcel immediately to the north of plaintiffs’ property which was zoned “C-3.” Of the 5 parcels which have been rezoned, the rezoning of each one followed property lines. Property in Alpine township is automatically rezoned on petition of an owner when 75% of the property owners within 500 feet of the property sought to be rezoned consent to the rezoning.
The case was heard by Judge Yerdier in the Kent county circuit court, and at the conclusion he rendered an opinion upholding the ordinance as to its constitutionality, and its power of licensing trailer parks. This opinion was dated and filed May 15, 1957. On December 12, 1957, plaintiffs having filed a petition for rehearing claiming that the court erred in its decision of May 15,1957, the court filed another opinion saying: “After a more careful review of the authorities cited in the opinion filed, the court is satisfied that the court did err in its decision.” He pointed out that since the adoption of the zoning ordinance preferential treatment as to commercial zoning had been granted to 5 of the 9 parcels along Alpine avenue which had been restricted to residential “B” under the zoning ordinance. The court held that such rezoning is purely arbitrary, and determined not by public welfare but by the whim and caprice of the town board. Such indiscriminate rezoning as is here present violates the requirement for uniformity and is so infected by preferential treatment as to nullify the ordinance so that plaintiffs are no longer bound by its provisions. He authorized entry of a new decree granting the relief prayed for in the bill.
Appellants present only one question to this Court, that is: “Where a municipality, after the adoption of a zoning ordinance, permits one retail food store, one restaurant, and one retail bait business in an area 15,931.7 feet long containing 69 dwelling houses, shall the municipality be compelled to permit additional commercial uses in the areas zoned ‘residential’?”
Appellees raise 4 questions:
(1) In view of State licensing, inspection and regulation of trailer parks, may a township, by virtue of a licensing provision contained in its zoning ordinance, exclude trailer parks from the township?
(2) Where in a 5-year period the zoning fronting on Alpine avenue, the entire area of which had been previously zoned “B” residential, except for a small 2-acre parcel zoned “C-3,” was changed so that the majority of property owners had obtained rezoning, thereby permitting 6 of 10 property owners to use their property for trailer park purposes, but deny ing plaintiffs such use, is this result discriminatory and destructive of any plan designed to promote the public health, safety, morals and welfare?
(3) Where plaintiffs’ property is bounded on the north by property zoned “C-3” and “C-2” and on the south by property zoned “C-2,” while plaintiffs’ property is restricted to residential “B” purposes, do the more stringent restrictions on plaintiffs’ property than on their neighbors’ promote the public health, safety, morals and general welfare sufficiently so as to justify such restricted zoning of plaintiffs’ property ?
(4) Where the evidence establishes that a 30-acre parcel, because of its particular location and physical characteristics, cannot reasonably be used for residential purposes, do zoning restrictions restricting it to residential uses constitute a taking of property without due process of law and, hence, render such zoning ordinance as applied to the parcel unconstitutional, invalid and unenforceable?
The authorities cited for appellants’ position with reference to spot rezoning, which hold that permitting some persons to violate a zoning regulation does not preclude enforcement against others, are all ordinances where there are isolated or at least a few cases of spot zoning, and, therefore, are not applicable to the facts in the instant case. Appellants content themselves, in lieu of a legal argument, with the threat that in the event the circuit court is upheld chaos will result and will bring unlimited amounts of confusion and litigation. We cannot recognize such an argument.
The zoning ordinance of Alpine township, by virtue of a rezoning provision contained therein, purports to give the board of appeals power to exclude trailer parks from the township. Such a provision in a township or municipal ordinance which is in conflict with the trailer coach park act (CL 1948 and CLS 1954, § 125.751 et seq. [Stat Ann 1955 Cum Supp § 5.278(1) et seq.)) is invalid. National Amusement Co. v. Johnson, 270 Mich 613; Richards v. City of Pontiac, 305 Mich 666; Gust v. Township of Canton, 337 Mich 137.
The township rural zoning act, being CL 1948 and CLS 1954, § 125.271 et seq. (Stat Ann 1958 Rev § 5.2963[1] et seq.), requires in section 3 as follows:
“The provisions of the zoning ordinance shall be based upon a plan designed to promote the public health, safety, morals and general welfare.” (CL 1948, § 125.273 [Stat Ann 1958 Rev § 5.2963(3)].)
The granting of rezoning petitions until every alternate parcel of property is now zoned as commercial demonstrates very clearly that the original uniform plan for the development of this section, which may once have existed, is destroyed. The complexion of the area having so changed as to destroy the plan, it can no longer be said that to restrict plaintiffs’ property to residential uses is designed to promote the public health, safety, morals and general welfare as is required by the township rural zoning act.
We note that this is an unusual case and is distinguishable from the ordinary spot-zoning case in that the unusually large number of permissions to rezone has destroyed the plan, and to grant rezoning to one and to deny it to another amounts to rank discrimination. We think the trial court was correct in so holding. We think to qualify this property for “B” residential purposes, in view of the changes previously made, would work too great a hardship on the plaintiffs and would serve no useful purpose for the general welfare of the community. Pere Marquette R. Co. v. Muskegon Township Roardy 298 Mich 31; Janesick v. City of Detroit, 337 Mich 549.
In view of the uses permitted neighbors to the north and to the south, and the complete destruction of the zoning plan for the area, we think the court was correct in holding the ordinance nullified so that plaintiffs are no longer bound by its provisions.
The decree of the lower court will be affirmed. Costs of this Court in favor of plaintiffs.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Edwards, and Voelker, JJ., concurred. | [
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On Reconsideration oe Denial oe Application eor Rehearing.
Black, J.
That our equally divisive opinions, handed down October 13, 1958 (Cohn v. County of Oakland, 354 Mich 180, 190), have left this proposed multimillion dollar sewage-disposal project in a state ■of legal uncertainty, is quite evident. By application for reconsideration, defendants’ counsel request that a majority of our membership attest validity of the contract (considered in such former opinions) regardless of the negative answer 4 of us have given to decisive question 2 (see quotation, 354 Mich at page 190) and regardless of omission by our remaining membership of answer to question 2.
The undersigned hold again, and so repeat such negative answer, that the defendant townships may not (without elective approval) levy property taxes in excess of the limitation established by article 10, § 21, Const 1908, as amended. It follows that such townships may not validly contract as in section 12 of the act (PA 1957, No 185) provided. Without specifying any limit as to the rate or amount of the levy, section 12 requires each contracting township to pledge its full faith and credit for the payment of the obligations it has assumed under the contract and to levy, each year, property taxes in such amount as “will be sufficient for the prompt payment of that part of the contract obligations as shall fall due before the following year’s tax collection.” The contract in turn, by paragraph 7 thereof, requires each such township to so pledge and tax.
Without appropriate limitation comporting with said section 21 the legislature cannot authorize townships to levy, annually, property taxes in amounts “sufficient” for the payment of contract obligations undertaken by authority of said Act No 185. The reason is that the amount of such annual levy is left, by said section 12, without limit excepting as the contracting units may agree. These townships, hence, are in position where they have contracted to do that which (if other usable funds and revenues are short •of upcoming payment schedules) of necessity will ■violate the constitutional limitation.
Section 12 of the statute is unconstitutional in its .application to townships. Paragraph 7 of the eon-tract is, so far as it purports to obligate these townships, invalid.
Denial of rehearing affirmed.
Smith, Voelker, and Kavanagh, JJ., concurred with Black, J.
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North, J.
In determining whether in a given case there has been novation of parties, all the facts and circumstances of that case are to be considered. Fender v. Feighner, 265 Mich. 536. There may not be a single act or transaction which in and of itself would disclose or establish novation; but from all the acts of the parties concerned it may appear that in fact and in law there has been a novation. In each case determination of this question should be based upon «the particular facts therein disclosed. As bearing upon novation in the instant case the following facts are important and I think controlling.
.In April, 1925, plaintiff’s predecessor in title sold defendant Nutten on contract a vacant lot in the village of Royal Oak. The purchase price was $6,000, $600 down payment, balance in monthly payments of $54 each. The contract payments were regularly met by Nutten until December, 1927, when he assigned his vendee’s interest to the Highland Corporation. This corporation in turn assigned to defendant Bertram Haskins. Nutten promptly advised the plaintiff herein that he had transferred his vendee’s interest to the Highland Corporation and that the vendee should look to the assignee for further payments. Later Nutten received two or three receipts for monthly payments which Haskins had evidently made to plaintiff. Thereupon Nutten again advised plaintiff of the transfer of his interest and requested plaintiff to send future receipts to Haskins. Plaintiff asked Nutten something about the assignment, indicating that plaintiff did not have the assignment. In this particular Nutten testified:
££I made some statement about getting the assignment and doing anything I could to get the matter in shape for them and to satisfy them.”
Thereafter (July 26, 1928) plaintiff wrote defendant Nutten as follows:
“Before Mr. Haskins can be recognised as a purchaser, it will be necessary for us to have an assignment of the land contract together with the customary assignment fee of $5. Will you kindly furnish us with the same or advise us from whom it can be obtained. ’ ’
Nutten then took the matter up with Haskins who stated that he would get together with the company £ £ and meet the requirements. ’ ’ Thereafter for three and.a half years nothing further was said to Nutten by plaintiff or its collecting agency, the James S. Holden Company, in regard to this contract. Nutten’s assignee and the subsequent assignee assumed and agreed to pay the contract. After Nutten’s receipt of the letter from plaintiff setting forth the conditions upon which Haskins could “be recognized as purchaser” the parties got together and entered into a written agreement whereby plaintiff for a valid consideration consented to the assignments of the vendee’s interest. The agreement contains the following :
“And the said Bertram B. Haskins in consideration of the premises, hereby assumes and agrees to carry out all parts of said contract. * * * And the said Chicago Boulevard Land Company, party of the first part in and to the above-described contract, in consideration of the undertakings above entered into by the assignee, hereby consents to the foregoing assignment.”
Execution of this instrument gave plaintiff the right to proceed either at law or in equity to enforce the contract against Haskins. Sloman v. Cutler, 258 Mich. 372. This circumstance in connection with other facts disclosed herein is strongly indicative of plaintiff’s acceptance of Nutten’s assertion that he was no longer in the transaction; and there having been compliance with the conditions specified in plaintiff’s letter of July 26, 1928, above quoted, that henceforth Haskins was to be “recognized as purchaser” under the assigned contract. It is somewhat significant that throughout the original contract itself Nutten is referred to as “purchaser.” Plaintiff received the assignment fee of $5 and also the benefit of Haskins’ assuming and agreeing to pay the contract. It seems of importance that plaintiff herein for a “consideration” subscribed -and became a party to the assignment and thereupon struck Nutten’s name from its ledger account pertaining to this contract and substituted therefor the name of Nutten’s assignee. For many months contract payments were made by the assignee and received by the plaintiff; but notwithstanding contract payments were continually in default after May, 1930, plaintiff gave no notice to Nutten or made any claim against him until December, 1931. At this time past-due payments on principal and interest approximated $700 in addition to unpaid taxes in excess of $100.
“Consent of all the parties to novation is necessary but need not be expressed in writing. It is sufficient if it appears from the facts and circumstances attending the transaction. ’ ’ Keppen v. Rice, 257 Mich. 299.
In Smitter v. Geurkink, 261 Mich. 697, it was held:
“Consideration for the novation was furnished by the arrangement itself.”
We quote and approve the following from the opinion of the trial judge:
“The proofs show clearly that defendant Nutten considered himself released from any obligations to pay and so advised plaintiff. The important question is, as to whether or not plaintiff also considered Nutten released from any liability? As bearing upon that question we have the contract (of assignment) itself together with the fact that after the execution of the assignment and the consent thereto by plaintiff no notice was ever served upon defendant Nutten of any demand made against him for payment until after the lapse of many months. It is true as a matter of law plaintiff would be under no obligation to notify him, but it would be very strange that if plaintiff still considered him liable in the face of repeated defaults by Haskins, it made no attempt to collect from Nutten. There is also the further fact of the change of name in the ledger account together with other facts and circumstances appearing in the testimony which leads to the reasonable conclusion that the plaintiff accepted defendant Haskins and the Highland Corporation as the purchasers under the contract and did not for a long period of time consider Nutten liable. * * *
“I am satisfied from the proofs in the case that there was a novation consented to by all parties and the defendant Nutten was entirely released by plaintiff from any liability. ’ ’
While the trial judge did not plant decision upon that ground, it might also be noted that defendant Nutten sets forth in his answer that in consequence of plaintiff allowing Haskins to become badly in default without any notice thereof to Nutten “this defendant is released from any obligation under the terms of said contract.” While not very specific evidently this injected into the case an element of estoppel which defendant Nutten asserted as a bar to defendant’s right to equitable relief. In this connection defendant Nutten testified:
“If they had notified me, I could have protected myself in time and I think they ought to have done it under the circumstances in view of the letter they wrote me and the impressions they had given me. I could have protected myself because Mr. Haskins was at that time, at the time of that default, he was in good financial condition and he lost his money, as I understand it, later. ’ ’
Without holding that the testimony just quoted is sufficient to have established an estoppel, it clearly has a material bearing upon Nutten’s claim of novation ; and we think affords another equitable reason for sustaining the determination of the circuit judge.
Under all the circumstances disclosed by this record we find the trial judge was fully justified in holding that there had been a novation of parties and his decree to that effect is affirmed. Costs of this court to appellee.
Nelson Sharpe, C. J., and Butzel, Bushnell, and Edward M. Sharpe, JJ., concurred with North, J.. | [
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Kavanagh, J.
This is a cause of action under the civil damage act (CLS 1956, § 436.22 [Stat Arm 1957 Rev § 18.993]), based upon the alleged statutory liability of defendant, owner and operator of a liquor bar on M-13, south of the city of Saginaw.
Plaintiff claims damages for injuries suffered on January 1, 1955, when she was a passenger in an automobile owned and driven by Edwin Reppuhn. She was one of a group who drove in Reppuhn’s automobile to defendant’s tavern near Saginaw, arriving there shortly before 12 o’clock on New Year’s Eve.
Plaintiff and her escort did not enter the tavern, he being refused admission because he was not 21 years of age. They remained outside in the automobile while Reppuhn, his wife and another couple entered the tavern and remained there until approximately 2:30 a.m.
Plaintiff claims that Reppuhn was sold intoxicating liquor by the defendant, owner of the tavern, and his agents while Reppuhn was in an intoxicated condition, in violation of the statute; that as a result of this violation of the statute, Reppuhn, while driving at about 3 a.m. on the main street in Birch Run, taking Nancy Pent, one of the party, to her home, struck a railroad signal-light post which was located in the center of the paved street. The injury to the plaintiff resulted.
The burden of proof was on plaintiff to show that Reppuhn was an intoxicated person to whom intoxicating liquor was sold by the defendant or his agents; that as a result of this sale Reppuhn was, and continued, intoxicated until the time of the accident; and that such intoxication was the cause or contributing cause of the injury.
The case was tried to a jury. At the close of plaintiff’s proofs defendant moved for a directed verdict. After some discussion between counsel and the trial judge, plaintiff made a motion for a directed verdict as follows:
“May it please the court, the plaintiff has rested in this case, as has the defendant. The defendant, without reservation, made a motion for a directed verdict. At this time the plaintiff, without reservation, makes a motion for a directed verdict on the part of the plaintiff.”
The court filed a written opinion granting defendant’s motion of no cause of action and an order was accordingly entered. New trial was requested. A written opinion denying the motion for new trial was followed by an order of denial. Plaintiff appeals to this Court.
"We do not have the usual case of a motion by defendant for a directed verdict or a motion non obstante veredicto, but a situation where both parties unconditionally asked for a directed verdict in their favor. Both parties having asked for a directed verdict, counsel cannot now complain that there was an issue of fact for the jury. The court properly dismissed the jury and considered both the issues of fact and law. Plaintiff, the loser in this case, cannot renege. St. Mary’s Power Co. v. Chandler-Dunbar Water-Power Co., 133 Mich 470; Culligan v. Alpern, 160 Mich 241; Germain v. Loud, 189 Mich 38; Kyselka v. Northern Assurance Co., 194 Mich 430; City National Bank v. Price’s Estate, 225 Mich 200; West v. Newton, 229 Mich 68; Mills v. Anderson, 238 Mich 643.
In the case of City National Bank v. Price’s Estate, 225 Mich 200, 212, Justice Steere, writing for the Court, said:
“While there may be room for conflicting inferences from this testimony, both parties without reservation requested a directed verdict and put it up to the court to pass upon whatever the record presented. There was, therefore, no error in the court’s assuming to do so. Culligan v. Alpern, 160 Mich 241; Germain v. Loud, 189 Mich 38; Kyselka v. Northern Assurance Co., 194 Mich 430.”
In Kyselka v. Northern Assurance Co., 194 Mich 430, 439, 440, Justice Brooke, writing for the Court, said:
“In the light of the dialogue which occurred between the court and counsel for both parties at the conclusion of the case, we are of opinion that counsel cannot now complain even if in the determination by the court a question of fact was involved. Culligan v. Alpern, 160 Mich 241; Germain v. Loud, 189 Mich 38.”
A similar situation to the instant case is reported in Germain v. Loud, 189 Mich 38, where Justice Ostrander said (p 44) :
“While, perhaps, different minds might be differently affected by the testimony which is substantially undisputed — different minds might draw different inferences — counsel for both parties requested the court to decide the controlling question, and it was not error for the court to do so. Culligan v. Alpern, 160 Mich 241.”
We find the lower court in this instance, in view of the motions of both counsel, acting at the conclusion of proofs in the same capacity he would have acted had the case been tried before him without a jury.
In our review on this appeal we find ourselves in the position of determining whether or not there was evidence from which the trial judge could find for the defendant.
There appears to he complete agreement of all witnesses with reference to material facts up until the time the party arrived at the New Apple Orchard' tavern shortly before midnight.
Reppuhn and Martin Engelhardt worked together on December 31, 1954, and at about 5 p.m. on that day Reppuhn had 2 shots of whiskey. Shortly thereafter the two of them went to South Saginaw, picked up some clothes and went to a tavern where they each had 2 glasses of beer. Leaving this tavern, they went to Martin Engelhardt’s house where Reppuhn had a bottle of beer. Between 8:30 and 9:30 p.m. Reppuhn drove to Birch Run to pick up Nancy Fent. He then returned to his own house. After eating a sandwich and changing clothes he, his wife, Nancy Fent and Martin Engelhardt proceeded to plaintiff’s house in Reppuhn’s car. While at plaintiff’s house Reppuhn drank another bottle of beer. Between 11 and 11:30 in the evening plaintiff and her escort, Richard Christian, joined the other four in Reppuhn’s car and drove to the New Apple Orchard where they were to celebrate the New Year.
All testified that while at the New Apple Orchard Reppuhn drank several bottles of beer. Reppuhn testified that he drank about 8 or 9 bottles. Martin Engelhardt testified that he drank 7 or 8 bottles of beer during the time that he was present in the tavern ; that he observed Edwin Reppuhn after Edwin had had some drinks at the New Apple Orchard, and at about 1:30 or a quarter to 2 he noticed a change in Edwin Reppuhn — he was louder, talked different. He jabbered. He didn’t bring out his words as plain as he usually did, and he “kind of staggered.” On cross-examination, however, he testified that where he saw Edwin Reppuhn stagger was on the dance floor; that the dance floor was crowded and people were pushing each other; and that it was difficult to get through to the floor.
Nancy Fent indicated that the only change she noticed in Edwin Reppuhn during the course of the evening at the New Apple Orchard was: “He just talked more, maybe, toward the end.”
Plaintiff, Peggy Long, testified that in traveling from her house to the New Apple Orchard Mr. Reppuhn was driving the car, and at that time, in her opinion, he was not under the influence of intoxicating liquor.
It is further agreed by all of the witnesses that, upon leaving the tavern around 2:30 a.m., Edwin Reppuhn drove the car the approximately 10 miles distance from the New Apple Orchard tavern to Birch Run where the accident took place. It was testified that soon after he left the tavern Nancy Pent believed he was driving too fast and asked Martin Engelhardt to tell him to slow down. When Engelhardt asked him to do so he immediately obeyed. On one occasion Martin Engelhardt became ill. Reppuhn stopped the car for Engelhardt to get out and waited about 5 minutes for him. He then drove the rest of the distance to Birch Run.
Nancy Pent testified that she was familiar with this road, that it is a narrow, winding road with about 6 or 7 curves between the New Apple Orchard and the place of the accident, one curve leading to a narrow bridge. She testified that Edwin did not have any trouble in driving, excepting as shown by his excessive speed.
Exhibits were introduced at the trial showing the narrowness of the road and, particularly, the long, narrow bridge over which Edwin Reppuhn was required to drive.
Plaintiff testified that after she left the tavern the only time she heard anybody complain about Reppuhn’s driving was when he was asked to slow down.
Edwin Reppuhn testified that this road is quite winding, having about 8 or 9 separate turns; that the road is only about 18 feet wide; that the bridge is only about 14 feet wide; that as he approached the.signal light in the center of the main street in Birch Run, at the railroad track, there was ice and snow on the road; that there was ice on the narrow road on which he had been driving, bnt it was not as bad as in Birch Run. He further testified that just before the accident he skidded on the ice while going about 35 miles per hour.
Reppuhn was asked how many hours he had been up. He testified he had been up over 20 hours and he was sleepy. He further testified:
“Q. Could you tell the court and jury, Mr. Reppuhn, what caused the accident? * * *
“A. I would say that I had too much to drink.”
On cross-examination Reppuhn was asked the following questions and gave the following answers:
“Q. You have some interest in this lawsuit, don’t you?
“A. Yes, sir.
“Q. What is that interest ?
“A. I don’t get what you mean by that.
“Q. You want Peggy Long to win this lawsuit, don’t you? You have some interest in it, don’t you?
“A. Yes.
“Q. As a matter of fact, your wife has got a lawsuit against Mr. Dudewicz?
“A. Yes, sir.
“Q. And Martin Engelhardt has a lawsuit against Mr. Dudewicz ?
“A. I don’t know about that.”
The lower court found that there was no manifestation by the actions of Edwin Reppuhn that he was intoxicated while at the defendant’s place of business, or that he was sold intoxicating beverages by the defendant or his agents while he was intoxicated. The only evidence of Mr. Reppuhn’s intoxication is given by Martin Engelhardt, and he concedes that he was under the influence of liquor. The only evidence that he saw of any intoxication of Mr. Reppuhn was that as the evening progressed he talked louder than he had previously and that he staggered. Under cross-examination, he admitted that after midnight everyone became more noisy, celebrating New Tear’s Eve, than they had previously been. He testified that, inasmuch as the dance floor and the premises were very crowded, the staggering could have been caused because Mr. Reppuhn was bumped or pushed by someone else during the festivities.
Appellant contends that she sustained the burden of proof and that the law applied to the undisputed facts does not support the judgment of the trial court. She alleges that the court erred in finding that there was no unlawful sale of intoxicating liquor.
Appellant cites the case of Cook v. City of Otsego, 282 Mich 248, for authority that, as a matter of law, the driver of the car was negligent in running into the signal post.
This action is not brought upon the theory of negligence, nor upon the statutory duty of the driver of an automobile to drive in such a manner as to be able to stop within the assured clear distance ahead, but, rather, brought under CLS 1956, § 436.22 (Stat Ann 1957 Rev § 18.993), which places a duty upon a retailer of alcoholic liquor not to directly or indirectly sell, furnish, give or deliver any alcoholic liquor to an adult person who is at the time intoxicated. Therefore, Cook v. City of Otsego, supra, is not applicable to the instant case.
Appellant contends that under the authority of Higdon v. Kelley, 339 Mich 209, it was not necessary for plaintiff to prove that Edwin Reppuhn was “dead drunk” or “hopelessly drunk.” In addition to showing consumption of 10 or 12 glasses of beer in the Higdon v. Kelley Case, there was further testimony which showed that Robinson was mumbling and was using foul and abusive language prior to the attack.; The doctor at the hospital stated that he showed! signs of intoxication when he was brought there. Justice Butzel, writing for the Court, said (pp 214, 215):
“We believe that there was sufficient evidence to show that Robinson became intoxicated, that he was served with beer while in that condition, and that his wrongful conduct caused the death of plaintiff’s decedent.”
He concluded on this subject (p 215):
“While there may be a close question of fact in the case, nevertheless we cannot say that the verdicts were against the great weight of the testimony.”
Justice Carr, in writing in Wyatt v. Chosay, 330 Mich 661, 670, said:
“The primary question at issue in the case at bar is whether there was competent testimony on which the jury might base a conclusion that the accident was caused by negligent conduct on the part of Wackerle, resulting wholly or in part from intoxication brought about by defendant Chosay’s acts in selling- and furnishing liquor to Wackerle. The fact that the liquor was consumed is not sufficient to establish intoxication at the time of, or immediately prior to, the accident. Such conclusion does not follow from the fact that an accident happened. Nylund v. Gemo, 295 Mich 75; People v. Weaver, 188 App Div.395 (177 NYS 71).”
We cannot say that the trial court erred in holding that there was no showing of intoxication or selling to an intoxicated person which would be a force and influence out of which fault might arise. No causal relationship has been proven between the sale of intoxicating liquors and the cause of the accident. The acts of Edwin Reppuhn from the time he left the New Apple Orchard tavern do not appear to have been those of an intoxicated person. After leaving the tavern Reppuhn drove 10 miles over a narrow, winding road, on which there was ice, an extremely narrow bridge only 14 feet wide, and, also, where there was some evidence that there was some fog in spots. Nowhere is there any evidence that Edwin Reppuhn had any difficulty in driving this road, with the one exception when he started out from the tavern. At th-is time he was cautioned about going too fast. He was requested to slow down, which he did without any argument. "When Martin Engelhardt became ill Edwin Reppuhn stopped his automobile without arguing. After having waited several minutes he continued on until the point of the accident. During that time Nancy Fent carried on an intelligent conversation with Edwin Reppuhn. She testified that he was apparently normal.
The lower court observed the witnesses, observed their conduct on the witness stand, and listened to their testimony. He was the person selected by the plaintiff in making the motion for a directed verdict to be the judge of the facts and law. It was the lower court’s duty to pass on the credibility of the witnesses, to make inferences from the established facts, to believe or disbelieve the witnesses, and to otherwise determine the true facts. There was a jury present and plaintiff could have allowed this jury to make the determination of facts, but plaintiff did not elect so to do.
Certainly there were facts from which the trial judge could believe that, despite the large consumption of liquor over the preceding several hours, there was no intoxication which had a causal relationship to the accident. It is possible the trial judge believed the story of Edwin Reppuhn that immediately before the accident he hit a patch of ice and skidded on the ice causing the accident. There was ample evidence for the trial judge to reach the conclusion, he did.
Tbe judgment is affirmed, with costs to appellee.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Edwards, and Voelker, JJ., concurred. | [
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Dethmers, C. J.
This is an appeal from a decree for specific performance of a land contract. Plaintiffs have paid the purchase price in full. Defendants refuse to convey and have served notice of intention to forfeit the contract on the ground that plaintiffs have violated its restriction reading as follows:
“The above land shall be used for residential and/ or agricultural purposes only. The above land shall not be used as a storage or sales place for used autos, auto parts, trucks, junk, tin cans, paper, or garbage.”
The alleged violation consists of plaintiffs’ use of the parcel of land involved as a roadway for access from a highway to other residential property.
Defendants had owned other parcels adjacent or near to the one in question, but had sold them before entering into the contract with plaintiffs. The record does not disclose that defendants owned or had any interest in other property in that vicinity either at the time of trial, commencement of suit, or sale to plaintiffs, and it affirmatively appears to the contrary.
Nothing can be claimed for defendants’ position here on the theory of reciprocal negative easement inasmuch as it is not alleged or shown that defendants or any other prior common owner of this and adjacent parcels had imposed restrictions during the period of such common ownership upon this or the •other parcels.
“If the owner of 2 or more lots, so situated as to bear the relation, sells 1 with restrictions of benefit to the land retained, the servitude becomes mutual, and, during the period of restraint, the owner of the lot or lots retained can do nothing forbidden to the •owner of the lot sold. * * * It must start with a common owner. Reciprocal negative easements are never retroactive; the very nature of their •origin forbids. They arise, if at all, out of a benefit accorded land retained, by restrictions upon neighboring land sold by a common owner.” Sanborn v. McLean, 233 Mich 227, 229, 230 (60 ALR 1212).
See, also, Eveleth v. Best, 322 Mich 637.
As far as an express restriction in a land contract :1s concerned, the vendor’s interest in the property .generally will support the restriction while the contract remains executory .and the vendor has an interest in preserving his security. Sloman v. Cutler, 258 Mich 372. That vendor’s interest of the defend ants ended, however, when plaintiffs paid the purchase price in full and became, except for the question of violation of the restriction, entitled to conveyance. Support for the restriction on that basis ceased at that time.
“Restrictions are not favored in law.” Putnam v. Ernst, 232 Mich 682, 688; Johnson v. Fred L. Kircher Company, 327 Mich 377, 382.
“Where a restriction is confined within reasonable bounds, and the party in whose favor it is made has an interest in the subject matter of the restriction, or others in privity with him have such interest, it will be sustained.” 7 Thompson on Real Property (Perm ed), § 3571, citing Grigg v. Landis, 21 NJ Eq 494; and Los Angeles Terminal Land Co. v. Muir, 136 Cal 36 (68 P 308). Defendants here are not shown to have an interest in the subject matter of the restriction or privity with others who have one, inasmuch as they own no other property, and did not at the time of sale to plaintiffs, which the restriction might benefit, and they retain no interest in the parcel in question. Such equity will not aid to enforce restrictions on the free use of real estate not favored in law.
Defendants’ position is not helped by the fact of their ownership of neighboring parcels prior to the sale to plaintiffs on any theory of an interest in defendants in benefiting their previous grantees. As said in Godley v. Weisman, 133 Minn 1, 4 (157 NW 711, LRA1917A, 333):
“It may be conceded that where the owner of a lot subject to no building restrictions conveys it, and in the deed inserts restrictive covenants, those covenants cannot, in the absence of some general building scheme or plan, be regarded as inuring to the benefit of contiguous property previously conveyed by him, and prior grantees cannot enforce such covenants. De Gray v. Monmouth Beach Club Blouse Co., 50 NJ Eq 329 (24 A 388); Mulligan v. Jordan, 50 NJ Eq 363 (24 A 543); Summers v. Beeler, 90 Md 474 ( 45 A 19, 48 LRA 54, 78 Am St Rep 446); Doerr v. Cobbs, 146 Mo App 342 (123 SW 547).”
Disposition of tbe case on tbe above grounds leaves it unnecessary to determine the question raised by defendants whether other persons are necessary parties to this action. Challenge to the propriety of including Murray Davis as a party defendant comes too late, when raised for the first time on appeal.
Decree affirmed, with costs to plaintiffs.
Carr, Kelly, Smith, Black, Edwards, Voelker, and Kavanagh, JJ., concurred. | [
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Butzel, J.
Greorge W. Boman, for many years prior to his death, was the owner of fractional lots 7 and 8, section 11, town 16 north, range 1 west, Midland county, Michigan. On April 30, 1924, for a consideration of $250, Boman, together with his wife, plaintiff herein, gave to defendant Wolverine Power Company a warranty deed conveying:
“The meandered and riparian rights to the river frontage of fractional lots 7 and 8 of section 11, town 16 north of range 1 west, in Midland county, State of Michigan, that is to say, the right to raise the low water level of the Tittabawassee River in front of said fractional lots 7 and 8, town and county aforesaid, to a height that will not injure said lands for farming purposes, except at freshet time. Reserving to ourselves and to our heirs, successors and assigns, forever, the right of access to the river at all times for the purpose of watering stock, boating, or any other privilege that we are now possessed of. The intention of this deed being to sell only the right to raise the water level as above mentioned, together with all and singular the hereditaments and appurtenances belonging to or in any wise appertaining.”
Defendant secured the deed because it intended to erect a dam at the village of Sanford, in Midland county, which would raise the water in the Tittabawassee river alongside the Boman farm. The testimony shows that after the construction of the dam, the water evidently overflowed the Boman farm, beyond the limitations expressed in the deed. Subsequently, on February 1,1927, by a deed not signed or acknowledged by plaintiff, Boman conveyed to defendant for a consideration of $150 the right of flowage or riparian rights over the lands, including the right to perpetually overflow or saturate such lands by the construction and maintenance of an artificial dam, as had already been constructed across the Tittabawassee river. Boman and plaintiff, his wife, continued to occupy the farm until the former’s death on or about April 27, 1929. Mrs. Boman was appointed administratrix of the estate, and also elected, in a proper proceeding, to take as her homestead the 40 acres bordering on the Tittabawassee river. The house and outbuildings were located on the property so selected. The entire farm consisted of lot 8, containing 53.80 acres, and lot 7 with 27.40 acres, or a total slightly over 80 acres. The farm itself was somewhat in the form of a triangle, and the part selected by Mrs. Boman was in similar form, bordering on a section road on the north. The 40 acres not selected by her also fronted a section road on the north, and in addition, one on the west. Had she so elected, she could have selected 40 acres, including the buildings, so that very little, if any of it, would have adjoined the river. However, Mrs. Boman’s selection of the 40 acres adjoining the river gave her land which, according to the testimony, was far more desirable on account of its arability than the remaining property, which was of a light soil not as suitable for agricultural purposes.
Both as administratrix of her husband’s estate, and in her own right as owner of the land selected by her for her homestead land, Mrs. Boman subsequently brought suit against defendant, and its receiver, for damages caused by the overflow of water resulting from the construction of the dam. She recovered a judgment for $755, entered on a jury’s verdict.
We limit our discussion to the questions raised on appeal. Defendants claim that plaintiff is not entitled to any damages whatsoever; that the second instrument, signed solely by George W. Boman, settled all controversy as to the extent of defendants’ right to an easement in the property in question, and that the consideration paid by the company in connection with the conveyances was accepted in full payment and satisfaction of all damages. The question is also raised whether, under the circumstances, plaintiff should not have • selected 40' acres in a different part of the farm, and thus avoided the litiga tion. While we are not unimpressed with defendants ’ claims, nevertheless, the right to select a homestead is absolute, guaranteed by the Constitution of the State, and the right of a wife to such property may not be lessened or impaired by a deed of conveyance in which she does not join. Ring v. Burt, 17 Mich. 465 (97 Am. Dec. 200); Gadsby v. Monroe, 115 Mich. 282; Sammon v. Wood, 107 Mich. 506; Allen v. Crane, 152 Mich. 380 (16 L. R. A. [N. S.] 947). The owner is entitled to take for a homestead the property upon which the home is situated, and any' adjoining land, not to exceéd 40 acres. In Riggs v. Sterling, 60 Mich. 643 (1 Am. St. Rep. 554), the court said:
“The homestead exemption, as established by the Constitution and laws of this State, is not alone for the husband, and his protection, but for the benefit of the wife and children as well. Const, art. 16, §§ 2, 3, 4 (1850); How. Stat. chap. 267; People v. Plumsted, 2 Mich. 465, 471; Beecher v. Baldy, 7 Mich. 488; Dye v. Mann, 10 Mich. 291, 297; King v. Moore, 10 Mich. 538; Snyder v. People, 26 Mich. 106, 110 (12 Am. Rep. 302); Comstock v. Comstock, 27 Mich. 97; Showers v. Robinson, 43 Mich. 502; Sherrid v. Southwick, 43 Mich. 515; Penniman v. Perce, 9 Mich. 509; Dyson v. Sheley, 11 Mich. 527.
“The homestead exemption, as it now exists, is not only a privilege conferred (Chamberlain v. Lyell, 3 Mich. 448, 458), but, under the Constitution, it is an absolute right. £It was intended to secure against creditors a home, and, to a certain extent, the means of support, to every family in the State.’ Dye v. Mann, supra, 297; McKee v. Wilcox, 11 Mich. 358 (83 Am. Dec. 743). *
“When such homestead, in amount within the constitutional limit, is once established by such election, selection, and occupancy, the Constitution is a positive prohibition against levy and sale by the own er’s creditors, unless it exceed $1,500 in value: Beecher v. Baldy, supra; Drake v. Kinsell, 38 Mich. 232. * * *
“No waiver of the homestead right by the husband can affect a wife’s interest therein: Beecher v. Baldy, supra, 506; Williams v. Starr, 5 Wis. 534; Ring v. Burt, 17 Mich. 465 (97 Am. Dec. 200); First National Bank of Constantine v. Jacobs, 50 Mich. 340; neither can the abandonment or waiver of the homestead right or homestead by one entitled to enjoy the same affect the interest of any other equally entitled thereto: Showers v. Robinson, supra, 513; Griffin v. Johnson, 37 Mich. 87, 92; Allen v. Shields, 72 N. C. 504.”
The language employed in the first deed expressly limited the easement granted to defendant power company. Plaintiff did not join in the second instrument, by which her husband attempted to convey an unrestricted easement'to the company in perpetuity, and she was therefore not bound by that deed. Notwithstanding defendants’ contention that it is unjust to ask them to pay again for something they claim to have once bargained and paid for, we have no right to depart from an absolute rule of law. When a purchaser seeks to acquire title to land which, may be claimed as a homestead, he acts at his peril if he fails to secure the signature of both husband and wife. The rights in the homestead are not lost to the survivor of husband and wife, who did not sign the instrument of conveyance. We do not believe that any estoppel has been shown, or such acquiescence as to bar plaintiff from asserting her rights. ,
There is some question as to the propriety of plaintiff’s bringing suit as administratrix as well as in her own right. However, there was no plea of misjoinder and the proofs were all directed to show ing the loss and damage to plaintiff in her individual capacity as owner of the homestead lands selected by her subsequent to her husband’s death.
The judge charged the jury as follows:
“After Mr. Boman’s death, which occurred in April, 1929, Mrs. Boman, the plaintiff in this case, had her homestead assigned to her, which was the east 40 acres of fractional lots 7 and 8, and bordered upon the river. This instrument would not affect her homestead rights after he died. That is, after the death of George Boman, and if, after a fair and careful consideration of all the evidence in the case you find that the land has really been damaged and was injured by water in question, except, as I have told you, the lowest five acres of the Boman flats as stated in the request, you will render the plaintiff such damages as you think she is entitled to, taking into consideration all the elements that have been allowed to go -to you, and taking into consideration your own view of the premises, which you have seen at the request of the attorneys involved in the case and using your judgment, based upon the evidence entirely, if any damages have been proven. * * *
“But, if you find that it has actually damaged the crops and depreciated the value of the land since his, Mr. Boman’s death, you may allow her such amount as from all the evidence in the case, you can determine is reasonable and proper, taking into consideration the value of the crops she has been deprived of, if any, for farming purposes, caused by the water raised by the dam of the Wolverine Power Company — that is the value of the land for farming-purposes, caused by the raising- of the water of the defendant company and since the water was raised.”
We believe that this correctly defined the issue, and that the description of plaintiff as administratrix of her husband’s estate in no way affected the result. The charge limited the damages to those occurring after the death of plaintiff’s husband. Had defendants objected to plaintiff’s suing both as administratrix of her husband’s estate and in her own right, the correction could have been made in accordance with 3 Comp. Laws 1929, § 14021.
Error is also claimed on the ground that the trial judge gave plaintiff the right to file a proper reply after attention had been called to her failure to specifically deny the allegations in defendants’ answer setting forth the instrument of February 1, 1927, in accordance with Court Rule No. 24 (1931). The defendants were not prejudiced thereby, for the deed showing the consideration was introduced in evidence, and defendants were not precluded from submitting further testimony, nor was the result affected in any manner. Defendants failed to secure the signature of the grantor’s wife to the deed, and must suffer the consequence.
Further objections are made to short excerpts from the charge, but when it is read in its entirety, the issues appear to be properly limited, and the verdict is substantiated by the testimony.
Judgment is affirmed, with costs to plaintiff.
Nelson Sharpe, C. J., and Potter, North, 'Fead, Wiest, Bitshnell, and Edward M. Sharpe, JJ., concurred. | [
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Sharpe, J.
The defendant, Henry DeHaven, was tried and convicted of having committed the crime of rape upon Marilyn Kahre his 13-year-old stepdaughter.
Defendant married Ethel DeHaven, mother of the complaining witness, in December, 1941; At that time Marilyn was living with her grandparents in Indiana. Shortly after his marriage, defendant, his wife and Marilyn moved to Indiana where they lived until November, 1945, when they moved to a farm in Allegan county, Michigan. At the trial, the complaining witness testified that she had sexual relations with defendant in Indiana and from 4 to 10 times while they lived on the farm in Allegan county. She testified that on the afternoon of December 1, 1946, she and defendant climbed a ladder to an open room under the roof of the barn, remained there about 15 or 20 minutes and had sexual intercourse.
The cause was submitted to a jury who returned a verdict of guilty. Defendant made a motion for a new trial and among the reasons given are the following :
“Because the juror, William Haverdink, failed to disclose when examined by the court that a member of his family had been sentenced to life imprisonment for a similar offense.
“Because the juror, John Bouws, failed to disclose in response to the question by the court that a member of his family had been sentenced for life for a similar offense.”
The trial court denied the motion for a new trial and defendant appeals alleging as reasons therefor the errors .as claimed in the motion for a new trial.
When the cause came on for trial, the court read the information to the jury and explained the meaning of the crime of statutory rape. He then questioned the jurors as a group as to whether any of them had any experience with any criminal case and as to whether any of their relatives had been involved in a similar case or any case involving the crime of rape. All 12 jurors answered in the negative. One of the jurors in the jury box at that time was John Bouws. A juror was excused and a juror by the name of William Haverdink was sworn and took his place. The court then asked the following questions and received the following answers:
“The Court: Mr. Haverdink, you heard my questions ?
“Mr. Haverdink: I did.
“The Court: And you know anything about the case?
“Mr. Haverdink: I do not.
“The Court: Know any of the parties?
“Mr. Haverdink: No.
“The Court: Have any business with any of the attorneys ?
“Mr. Haverdink: No, I didn’t.
“The Court: Do you know of anything that might interfere with your fair and impartial trial of this kind of case?
“Mr. Haverdink: I don’t.
“The Court: There is nothing about anything that has happened to any members of your family that would make you feel different about this case than others?
“Mr. Haverdink: No.
“The Court: You feel in this case you could sit in this case fairly and impartial?
“Mr. Haverdink: I can.
“The Court: There is no other case you heard about or know about would influence your verdict in any way?
“Mr. Haverdink: No.
“The Court: Do you have a daughter, do you?
“Mr. Haverdink: I have daughters, but they are all married. /
“The Court: Well, you think that would make any difference in this case?
“Mr. Haverdink: It wouldn’t.
“The Court: Do you know any of these parties I have nhmed here as witnesses?
“Mr. Haverdink: No, I don’t.
“The Court: Have you any challenge now?
“Mr. Ray: No.”
The jury, including the jurors Haverdink and Bouws, was then sworn and the trial proceeded. It appears that the juror Haverdink is a cousin and the juror Bouws is a brother-in-law to a man named William Haverdink who was sentenced for statutory rape by the circuit court of Ottawa county in 1939. The record in that case discloses that William Haverdink committed rape upon his 13-year-old daughter as well as four other daughters.
The trial court in denying the motion for a new trial stated in regard to the failure of juror William Haverdink to disclose that a member of his family had been sentenced to life imprisonment for a similar offense:
“He was not asked this question; he was under no obligation to disclose such fact; he stated he had no prejudice in this kind of a case; there is nothing to indicate he did have; certainly, if he did have, it would be likely to benefit respondent.”
The trial court gave a similar answer to the failure of John Bouws to make such disclosure.
In 39 Am. Jur. pp. 65, 66, § 45, under the subject of “New Trial” we find the following:
“It seems generally . agreed that when matters which might establish prejudice or work a disqualification of a juror are actually gone into upon the voir dire examination and false answers are given or deception is otherwise practiced, as the result of which a juror, although disqualified in fact, is accepted, the party misled or deceived thereby, upon discovering- the fact of the juror’s incompetency or disqualification after trial, may assert that fact as ground for and obtain a new trial, upon a proper showing of such facts, even though, it has been held, the bias or prejudice is not shown to have caused an unjust verdict; it is sufficient that a party, through no fault of his own, has been deprived of his constitutional statutory guaranty of a trial of his case before a fair and impartial jury.”
In 31 Am. Jur. pp. 638, 639, § 109, under the subject of “Testimony of Juror as to Own Competency” we find the following:
“Examination into the competency of a juror, when he is challenged, is essentially a taking of such prospective juror’s testimony to determine whether he has the statutory qualifications of a juror and is free from prejudice or interest, and to ascertain, whether it is wise and expedient to exercise the right of peremptory challenge given to parties by the law. * * * He is not, however, the judge of his own competency, impartiality, and freedom from prejudice, in the sense that his testimony is to be accepted as final and conclusive of the issue, and no statute can clothe him with such judicial discretion and power. His competency is left to the determination of the court or of triors, who are not bound by his testimony but may rely on other evidence.”
In Durham v. State, 182 Tenn. 577 (188 S. W. [2d] 555, 160 A. L. R. 746), defendant Durham was convicted of rape. On motion for a new trial the fitness of two jurors was challenged. It appears that upon the examination of the jurors, juror Meador failed to disclose that he was the prosecuting witness in a prosecution for assault with intent to rape and at one time had been convicted and served a term in prison. In reversing the conviction, the court quoted from 35 C. J. p. 333, as follows:
“ ‘Independently of statute a juror is incompetent on the ground of bias if he is a party to, or interested in, another suit of the same character or involving the same controversy.’ ”
In People v. Troy, 96 Mich. 530, defendant was convicted of the crime of assault with intent to do great bodily harm less than the crime of murder. It appears that on the night in question one Flanders and Ottobein were engaged in a street fight, when a police officer appeared and arrested Flanders. While the officer was arresting Flanders, defendant Troy threw a stone and struck the officer. Defendant Troy was arrested, tried, and convicted. At the same term that defendant was brought to trial, seven of the jurors who sat in Flanders’ case were permitted, under objection, to sit in the case against Troy. In reversing the conviction, the Supreme Court said:
“We think, however, that the court erred in permitting the jurors who sat in the Flanders case to sit in the present. The facts are nearly identical, and must necessarilv have all been called forth in the Flanders trial. The jury in that case must have considered them, and reached some opinion as to the merits of the controversy in the present case. • The respondent was entitled to a fair and impartial trial bv an impartial jury, who had no preconceived opinions of his guilt or innocence. We are aware that some English and American authorities hold that jurors who have sat in one case are not disqualified from sitting in a ease against another joint respondent, who has taken a separate trial, and involving the same state of facts. We are not inclined to follow that doctrine. Where the issue is the same in both cases, it is but fair to the respondent that he have another panel of jurors to try his cause.”
The right to be tried by an impartial jury is a constitutional guaranty. We find ourselves in harmony with the meaning of that term as quoted from 20 Words and Phrases (Perm. Ed.), p. 191, in Durham v. State, supra:
“ ‘The “impartial jury” guaranteed by constitutional provisions is one which is of impartial frame of mind at the beginning of trial, is influenced only by legal and competent evidence produced during trial, and bases its verdict upon evidence connecting defendant with the commission of the crime charged’ and further, ‘consists of twelve impartial men.’ ”
See, also, Lane v. State, 168 Ark. 528 (270 S. W. 974); and Stephens v. People, 38 Mich. 739.
In the case at bar the jurors stated on voir dire examination that they could fairly and impartially sit as jurors in the case; and that there was no other case that they had heard about which would influence their verdict. At the time jurors Bouws and Haverdink were making these statements, they must have known that a relative of theirs had pleaded guilty to the crime of rape on his 13-year-old daughter. It can readily be seen why they did not want to acknowledge relationship to a confessed rapist, but their obligation and duty as jurors transcends in importance their hesitancy in admitting such relationship. The normal person revolts at the thought of a father or stepfather raping a 13-year-old girl. We are of the opinion that the relationship of these two jurors to one who had committed a similar crime was such that it deprived them of the capacity to act impartially. Defendant has the right to a trial by an impartial jury. We cannot say that he had such a trial.
Other claimed errors have been advanced why a new trial should be granted, but we do not deem it necessary to discuss them.
For the reasons stated, the judgment is reversed and the cause remanded for a new t'riál.
Bushnell, C. J., and Boyles, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred.
See Act No. 328, § 520, Pub. Acts 1931 (Comp. Laws Supp. 1940, § 17115-520, Stat. Ann. § 28.788).—Reporter.
See Const. 1908, art. 2, § 19.—Reporter. | [
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On Rehearing.
Sharpe, J.
A rehearing was granted in this case, limiting the question to the constitutionality of the ordinance involved.
The facts in this case are set forth in 320 Mich. 182 and need not be again recited. It does appear, however, that in the court below plaintiffs challenged the validity of the ordinance. The trial court found that the zoning ordinance was constitutional, valid and reasonable'. In our former opinion we said:
“In coming to our conclusions in this controversy we have in mind that plaintiffs did not file a cross appeal, hence the constitutionality of the zoning ordinance is not an issue in this cause.”
We confess error in this statement as an appellee who has taken no cross appeal may urge in support of the judgment in his favor reasons rejected by the trial court. See Township of Pontiac v. Featherstone, 319 Mich. 382, and Morris v. Ford Motor Company, 320 Mich. 372.
The city of, Highland Park enacted a zoning ordinance, effective October 1, 1942, known as ordinance No. 592, the pertinent parts of which, as amended, read as follows:
“An Ordinance to establish districts in the city of Highland Park; to regulate the use of land and structures therein; to regulate and limit the height, the area, the bulk and location of buildings; to regulate and restrict the location of trades and industries and the location of buildings designed for specified uses; to regulate and determine the area of yards, courts and other open spaces; to regulate the density of population; to provide for the administration and enforcement of this ordinance; to provide for a board of zoning appeals; and its powers and duties; and to provide a penalty for the violation of the terms thereof.
“The City op Highland Park, by virtue of authority conferred by Public Act No. 207 of the Public Acts of 1921 of the State of Michigan, and acts amendatory thereto, for the purpose of preserving and promoting public peace, health, safety, and the general welfare of its inhabitants by providing for proper housing and favorable environment; by making suitable provisions for public services; by providing for orderly and regulated municipal development so as to prevent undue concentration of population; and by providing a uniformly just land-use pattern and tax assessment basis and stabilization of property values, ordains: * * *
“Sec. 4. Districts
“For the purposes of this ordinance the city of Highland Park is hereby divided into the following districts:
“R1 Two and a half story — one family dwellings
“R2 Two and a half story — two family dwellings
“RM Multiple dwellings
“B2 Thirty-five (35) foot height — business
“BU One hundred (100) foot height — business
“C Eighty (80) foot height — commercial
“ML Eighty (80) foot height — light manufacturing
“MH Heavy manufacturing * * *
“Sec. 8 B2 Districts
“The following regulations shall apply in all B2 districts:
“Sec. 8.1 Uses Permitted
“Except as herein otherwise provided, no building, structure or part thereof, shall be erected, altered, or used, or premises used, in whole or in part, for other than one or more of the following specified uses:
“1. Uses permitted in RM districts.
“2. Generally recognized retail stores. * * *
■ “17. Uses accessory to any of the above permitted uses. * * *
“Sec. 10 C Districts
“The following regulations shall apply in all 0 ill Q'f'Y’l pf'Q •
“Sec. 10.1/Uses Permitted
“No building, or structure, or part thereof, shall be erected, altered, or used, or premises used, in whole or in part, for other than one or more of the following specified uses:
“1. Uses .permitted in BU districts. * * ' *
“5. Facilities for the handling and sale of poultry or game, including storage and killing of same, for sale on the premises exclusively at retail, such use to be subject to the approval of the board.
“6. Uses accessory to any of the above permitted uses.”
Plaintiffs’ poultry market consists of a one-story cement block store located in a B2 district where they kill, defeather and dress poultry. The ordinance provides that in a B2 district there may be “generally recognized retail stores” and “uses accessory” to the same, while uses permitted in a 0 district are killing, handling and sale of poultry.
Plaintiffs urge that the zoning ordinance as construed by city officials is arbitrary and unreasonable as applied to their particular property. A city in the exercise of its police power has authority to enact a zoning ordinance reasonably necessary for the preservation of public health, morals or safety, but it may not exercise that power in an arbitrary and unreasonable manner. In City of North Muskegon v. Miller, 249 Mich. 52, we held that a zoning ordinance must be reasonable and its reasonableness becomes the test of its legality.
In Pere Marquette R. Co. v. Muskegon Township Board, 298 Mich. 31, we said:
“Each zoning case, as a rule, stands by itself and its reasonableness must be judged by the circumstances in each particular case.”
The generally accepted rule is that a presumption prevails in favor of the reasonableness and validity of a municipal ordinance unless the contrary is shown by competent evidence, or appears on the face of the enactment. See Harrigan & Reid Co. v. Burton, 224 Mich. 564 (33 A.L.R. 142).
In Austin v. Older, 283 Mich. 667, 674, we said:
“It is elementary that every intendment is in favor of the constitutionality of an ordinance and plaintiff has the burden of showing that it has no real or substantial relation to public health, morals, safety or general welfare.”
There can be little doubt that the killing, dressing and sale of live poultry is a subject upon which a legislative body has authority to legislate. It is not unreasonable or arbitrary to confine this activity to. a certain zone within the corporate limits of a city. Such an ordinance has a distinct relation to public health and in our opinion is valid and enforceable.
Plaintiffs also urge that the killing and defeathering of poultry is an integral part of the operation of a small retail live poultry market and, therefore, a permitted use in a B2 district.
It should be noted that the killing, defeathering and dressing of poultry is permitted in a “C” or commercial district. It clearly appears that it was the purpose and intent of the framers of the ordinance to confine such activity to a district other than where plaintiffs’ poultry market is now located. It appears that between May 1, 1946, and May 1, 1947, there were 104 places in the city of Highland Park licensed to sell meat all of which sold meat and dressed poultry that was killed in another place. Under the record in this case it cannot be said the killing of poultry and sale of same in the same shop or market is the usual method of conducting a poultry market. To allow such a practice would run contrary to the intent and purpose of the ordinance. In our opinion the ordinance was designed to prevent such a practice. We, therefore, hold the ordinance constitutional. We also hold that the killing and defeathering is not an incidental and integral part of the operation of a poultry market, especially where the ordinance provides that this activity should be confined to another zone.
The decree of the trial court holding the ordinance valid is affirmed, but the decree holding that the killing, defeathering and dressing of poultry is incidental to and an integral part of plaintiffs’ retail poultry business is reversed. No costs are allowed as the constitutionality of an ordinance is involved.
Bushnell, C. J., and Boyles, Reid, North, Dethmers, Butzel, and Carr, JJ., concurred. | [
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Voelker, J.
This sad case is still another chapter in a prolonged dispute over the custody- of 3 minor children originally awarded the plaintiff mother and present appellant by decree in her ultimately uncontested divorce action against the defendant father .and present appellee. By inference it appears that the children are now at least 15, 10 and 9 years of age. The original decree was entered during March, 1955, by the present chancellor. The father was there given certain weekly visitation privileges. Thereafter in October of that year he filed a petition to modify the original decree by seeking sole custody in himself, alleging in substance that the mother had wrongfully refused to abide by the visitation privileges provided in the decree and, moreover, that since the decree she had become mentally ill and was therefore an improper person to continue to have ■custody.
A hearing on this petition to modify filed by the father was had before the same chancellor who granted the original divorce decree awarding custody to the mother. Thereafter during February,
1956, the court entered an order granting the prayer ■of the father’s petition to modify, thereby changing the original decree so as to award exclusive custody ■of the children to the petitioning father. No right ■of visitation was there accorded the mother. The mother thereupon appealed to this Court where the ■order changing custody to the father was vacated and the cause remanded to the trial level for further proceedings, all of which appears in detail in our ■decision in Bowler v. Bowler, 351 Mich 398.
It should further be noted that the above appeal was decided by us on March 5,1958, and that pending the perfection of her appeal in that case the mother on February 1, 1957, filed a petition for visitation privileges in the lower court, of which more presently. We further note that the father has had con tinuous physical custody of the children since the modifying order of February, 1956 (vacated in Bowler), and that the mother has not visited or seen them from that time up to the time of submission to us of this present appeal.
We said and held in the Bowler Case, supra, that the testimony bearing on the mother’s claimed unfitness should have been heard by the chancellor himself instead of being based so largely on a hearing before a referee and various absentee reports and conflicting letters of certain psychiatrists not heard or taken before the chancellor, and that therefore the evidentiary record before him and us was inadequate to support his action in thus changing custody to the father. As just noted, we there vacated the order amending the decree (staying its effectiveness for 30 days) and remanded the proceedings on the husband’s petition to modify “for further proceedings * * * in accordance with this opinion.” (Bowler v. Bowler, supra, p 408.)
Following such remand the same chancellor, with the agreement and participation of counsel, promptly proceeded to conduct in open court a full-dress rehearing of the father’s original petition to modify, all as suggested in our opinion. At the outset of the rehearing the chancellor announced from the bench that he would at the same time also hear the mother’s pending and still unheard and undisposed of petition for visitation, above noted. Following extensive hearing before him the chancellor once again modified the original decree so as to grant custody to the father, then and there reserving action on requested visitation by the mother. This further appeal by the mother has resulted.
On rehearing, the big issue before the chancellor, as it is before us, was whether there had been a sufficient change in circumstances since the original decree to warrant his granting the father’s petition praying for a change of custody. This in turn resolves itself, in this case, to a question of whether the mother was mentally fit to continue to have the children. On this issue the chancellor heard in open court the testimony of numerous witnesses, including that of 4 expert medical witnesses trained in psychiatry. All 4 appear to he experienced practitioners of impressive training and background, one, a woman doctor, called by the mother and 3 by the father. All were examined and cross-examined extensively. The medical witness called on behalf of the mother may fairly be said to have testified to the end that in her opinion the mother should retain custody, although on cross-examination she testified that the appellant mother showed “traces” of paranoid complexes.
The other 3 doctors testified without equivocation that from their examination of Mrs. Bowler they found she was suffering from a grave mental illness which they more or less uniformly diagnosed, as one of them put it, as “schizophrenia, paranoid type, chronic, active.” At least 2 of them felt that she should be in a mental institution. One of the doctors told the court of the “devastating” effect that exposure of growing children to such an afflicted parent could have on them, not only in the present but in the unpredictable future; another testified that “It is never to the best interests of anyone to be in the custody of somebody who is mentally ill;” and one medical witness, who appears to have seen the mother most recently, flatly recommended against granting the mother visitation, for her sake as well as the children’s. In addition an investigator from the office of the friend of the court recounted a conversation with Mrs. Bowler during which the latter informed the investigator with apparent seriousness that she (Mrs. Bowler) was an electronic genius and that all the radio and television stores knew her because they saw and talked to her every time she turned on her set. "We gather that that is an almost classic sympton of the precise mental disease found by the 3 doctors.
The father testified, in substance, that the mother had previously had intermittent mental spells, going back to 1952, but each time had recovered, and that at the time of the divorce she appeared to him entirely normal, hence his withdrawal of contest; and that his subsequent petition to modify had been precipitated by a telephone call from the mother’s maid concerning certain recent peculiar actions of the mother and the maid’s consequent apprehension and concern over the children. On this last point the former maid testified below to the same effect.
The chancellor’s careful opinion recounts most of the foregoing and points out that he had no inkling of any history or hint of mental illness when, almost as a matter of course, he granted custody to the mother in the original decree. He also noted, and this is supported by the record, that during the last hearing, here appealed from, he talked to each of the 3 children in chambers (the conversation was recorded) and all had said they were happy where they were and wanted to remain with their father.
The record also discloses certain accompanying economic realities in this situation, namely, that following the divorce the mother had sold the home then awarded her, along with the furnishings, and had since spent most of the money she received therefor in desultory and aimless travel in the West, and, at the time of the last hearing, was unemployed and living in a furnished flat with 2 widows.
Appellant raises 3 questions on appeal. The first is that the chancellor erred in changing custody based upon the father’s petition to modify “based solely on the refusal of the wife to let the husband see the children.” This question grossly misstates the facts; the petition to modify which was remanded in Bowler and reheard below plainly stated in addition that the petitioner (who was barred by her from seeing- the children) was fearful that the mother “has had another mental breakdown and is in urgent need of hospitalization and psychiatric treatment and that she is therefore in no condition to have the care, custody and control of the 3 minor children, and that the said 3 minor children should be placed under his care, custody and control.”
As we observed in the earlier Bowler Case (pp 405, 406), counsel is correct in asserting that failure of the mother to permit visitation would not in itself necessarily warrant a change in custody, but in the context of the present situation we nevertheless think it is of some importance as possibly showing-changed circumstances, that is, a changed mental state, and, equally important, as perhaps demonstrating the unwisdom of committing these children to a gravely sick mother who, in open contempt of the original decree, refused flatly to let the only other person who cared (and fortunately there is such a person in this case) to occasionally come and see the children and check up on the situation. The proofs amply sustain the allegations of the petition. This ground is, therefore, without merit.
The second ground, as we follow it, is that the court erred in granting custody to the father where there was disputed medical testimony. To thus baldly state the question is to answer it. We are aware of no rule of law, nor are we cited one, that ties the hands of a chancellor because of a dispute in medical testimony. If we did know of any such rule we would promptly write to overrule it. Opposed testimony of friends and former neighbors (appar ently also depended upon by appellant) as to their past observations of the kindliness and maternal attributes and good character of Mrs. Bowler, however important in the usual case, were of but passing moment in the particular circumstances of this case; these attributes were not disputed nor in issue and, if anything, only tend to make this case more pitiable. The raising of young children is a 24-hour proposition, 7 days a week, year in and year out, and in these situations the passing observations of lay witnesses made during the subject’s lucid intervals (apparently one of the strange phenomena of this grave mental sickness) may not challenge the clear, careful, and detached testimony of 3 reputable psychiatrists. The chancellor below, himself, made it plain that if it were not for the mother’s mental state he would gladly and without hesitation have restored her to actual as well as legal custody of the children. This second ground is aiso without merit.
The third and perhaps most disturbing ground of claimed error is the court’s refusal to grant visitation rights to the mother at the time of or following his latest order (here appealed from) granting the father’s petition to modify the original decree as to custody. This result was doubtless a harsh blow to the distracted mother and probably gave nobody much joy, least of all the chancellor. Yet if Mrs. Bowler was as gravely mentally ill as the medical witnesses below testified, we think it was a commendable act of charity and mercy on the part of the chancellor not to expose either her or the children to the mutually shattering distress and scalding of emotions that would inevitably follow if the children were obliged periodically to confront their mother (and she them) while thus afflicted. An already sad situation is never improved by making it sadder.
In the case of Gardner v. Gardner, 239 Mich 306, we held that a mother who was committed to a men tal institution could properly be denied custody. In a later appeal in another phase of the same case, in Gardner v. Gardner, 249 Mich 498, we affirmed a subsequent modification of the decree denying her continued visitation as well. That this present appellant is not in such an institution (despite the noted recommendation made in some of the medical testimony given below) cannot change the picture. In fact professionally unregulated visitation in these circumstances, or lack of someone qualified to warn the children or their father against a projected visit during an inopportune time, could well be even more painful for all concerned.
While we do not consider that the question of visitation is technically properly before us (since visition has apparently never been formally denied), so that there may be no misunderstanding on the subject we hold that to the extent the court’s action below constituted a denial of visitation (as urged by appellant) rather than a reservation of decision on the mother’s petition for visitation (as we see it), it is hereby affirmed.
These contested child-custody cases are never easy, and this case is no exception. From the nature of such disputes, involving as they do one of the basic instincts and great primal urges of human existence, whichever way judges rule is bound to leave a trail of heartache and pain. But decide them we must, for it is our job; and in our considered judgment the earnest chancellor in this melancholy case did the only safe and sensible thing he possibly could have done on the testimony before him. Indeed we might well have felt disposed to question his decision had he done anything else. However painful it may be to separate a good mother from her children in these harrowing circumstances, judges have no right to sentimentalize or flinch in these situations, much less experiment or take risks with the children involved. Even were there any real doubt as to the best course to follow (and here we think there was none), that doubt must be resolved in favor of the safest course for the good of the children, to the extent that it is given to frail mankind, including judges, to discern that course.
Perhaps we can relieve somewhat the undeniable harshness of this result by pointing out that if in the happy event the mother should measurably improve, or recover entirely, we discern nothing to prevent her from later calling up or renewing her petition for visitation, or indeed filing an appropriate petition for the return of custody. On the record presently before ns we feel obliged, however painfully, to affirm the result reached below. No costs.
Dethmers, C. J., and Carr, Kelly, Smith, Black, Edwards, and Kavanagh, JJ., concurred.
The record unfortunately does not disclose the exact birthdays ■■of the children, a lapse we recommend be corrected in all future cases ■of this nature.
Counsel in Ms brief at several places states that 3 doctors so felt, but chose not to cite us to the pages in the appendices to support this assertion, as required by our rules, and we finally wearied of continuing to do his work for him. | [
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Kelly, J.
Appellee, State labor mediation board, found certain of appellant’s employees to “constitute an appropriate unit for the purpose of collective bargaining” and ordered that an election by secret ballot be conducted among those employees to determine “whether they desire to be represented for collective bargaining purposes by Local 547, International Union of Operating Engineers, AFL-CIO; the American Federation of State, County & Municipal Employees, AFL-CIO, or neither.”
Appellant board of trustees of Michigan State University, which is a constitutional corporation and a public employer, moved in the Court of Appeals for review of the order, stay of proceedings, and leave to appeal.
The attorney general, for appellee, moved in the Court of Appeals for affirmation of the order.
The Court of Appeals denied all motions for the reason that that “Court lacks jurisdiction of this cause.” Rehearing was likewise denied.
On application by appellant trustees and intervenor'American Federation of State, County & Municipal Employees, AFL-CIO, we granted leave to appeal (379 Mich 754) to consider the issues of the jurisdiction of the Court of Appeals and the substantive ■ merits of this case.
Const 1963, art 6, § 28, provides:
“All final decisions, findings, rulings and orders of any administrative officer or agency existing under the constitution or by law, which are judicial or quasi-judicial and affect private rights or licenses, shall be subject to direct review by the courts as provided by law. This review shall include, as a minimum, the determination whether such final decisions, ■findings, ridings and orders are authorized by law; and, in cases in which a hearing is required, whether the same are supported by competent, material and substantial evidence on the whole record.”
Appellant calls attention to the fact that the only exception to this provision of the Constitution relates to worionen’s compensation proceedings and the administration of property tax laws. Appellant ex plains application of the provision to the Court of Appeals as follows:-
“It is the claim of the appellant that the specific language of the Constitution was designed to insure that a party claiming to be aggrieved by the action of an administrative board or commission, or other agency, shall be granted leave to appeal. In seeking to obtain review of the order of defendant by the Michigan Court of Appeals, appellant relied on the constitutional provision quoted and also on GfCIi 1963, 806 as adopted by this Court and made effective as of January 1, 1965. Said rule in specific terms empowered the Court of Appeals to grant leave to appeal from orders of administrative agencies, as are appealable to either said Court or to the Supreme Court. However, the Court of Appeals declined to consider the matter, stating in its order that it was without jurisdiction. No explanation was given as to the claim of want of authority in the premises.”
Appellee expressing agreement with appellant, but only on the question of jurisdiction, states:
“The Court of Appeals has jurisdiction in an application for leave to appeal from a State labor mediation board determination of a collective bargaining unit for public employees and an order of said board directing that an election be held to determine which of two unions, or neither, shall represent the unit for collective bargaining purposes.”
We agree with appellant and appellee and remand to the Court of Appeals to determine the substantive merits of this case. No costs, a public question being involved.
Dethmers, C. J., and T. M. Kavanagh, Souris, O’Hara, Adams, and T. E. Brennan, JJ., concurred with Kelly, J.
Black, J., concurred in result.
See PA 1947, No 336, § 16, subd (e), as added by PA 1965, No 379, and amended by PA 1965, No 397 (MCLA § 423.216, Stat Ann 1968 Cum Supp § 17.455[16]).—Reporter.
See 373 Mich xx, xxxviii.—Reporter.
GCR 1963, 806.2 provides:
“The Court of Appeals may grant leave to appeal from:
“(2) Final or interlocutory judgments or orders of administrative agencies or tribunals which by law are appealable to the Court of Appeals or the Supreme Court,” | [
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Per Curiam.
This is an appeal, on leave granted, by defendants, Secretary of State and Board of State Canvassers, from a Court of Appeals order, in proceedings originating in that Court, for issuance of a writ of mandamus against them and others charged with enforcement of the election laws, directing them to certify forthwith plaintiff, Robert L. Richardson, as a duly qualified candidate for the office of circuit judge in the 10th judicial circuit, in the primary election to be held on August 6,1968.
The question is whether plaintiff is barred from such candidacy by Michigan Constitution of 1963, art 4, § 9, which reads:
“No person elected to the legislature shall receive any civil appointment within this state from the governor, except notaries public, from the legislature, or from any other state authority, during the term for which he is elected.”
Similar provisions of the Michigan Constitutions of 1850 and 1908 are as follows:
Constitution of 1850, art 4, § 18:
“No person elected a member of the legislature shall receive any civil appointment within this state, or to the senate of the United States, from the governor, the governor and senate, from the legislature, or any other state authority, during the term for which he is elected. All such appointments and all votes given for any person so elected for any such office or appointment shall be void.”
Constitution of 1908, art 5, § 7:
“No person elected a member of the legislature shall receive any civil appointment within this state or to the senate of the United States from the governor, except notaries public, or from the governor and senate, from the legislature, or any other state authority, during the term for which he is elected. All such appointments and all votes given for any person so elected for any such office or appointment shall be void.”
In 1968 the legislature enacted Act No 152, which provides, inter alia:
“The term ‘election’ is not synonymous with the term ‘civil appointment’ as such term appears in section '9 of article 4 of the state constitution.”
The -undisputed facts are that plaintiff was elected at the general November election of 1966 to the office of State senator for a four-year term commencing on January 1, 1967, and ending oh January 1, 1971. He qualified for that office, was seated and is serving as a member of the senate for that term. Under PA 1968, No 127, an additional circuit judge is to be elected in the 10th judicial circuit at the 1968 general November election, to take office January 1, 1969. Plaintiff timely filed with .the secretary of State nominating petitions for himself as a candidate for such judgeship together with an affidavit of his qualifications. The board of canvassers determined that the petitions and affidavit were in order but declined.to certify plaintiff as a candidate for the August 6, 1968, primary election on the ground that he was barred therefrom by Constitution of 1963, art 4, § 9, above quoted. Plaintiff then filed com plaint in the the Court of Appeals seeking an order of superintending control in the nature of mandamus and secured the order of that Court for writ of mandamus from which this appeal is taken by defendants.
On June 25, 1968, Governor George Eomney filed with this Court a request, under Constitution of 1963, art 3, § 8, for an advisory opinion as to the constitutionality of PA 1968, No 152. While that request was under consideration the application for leave to take this appeal was filed, calling not only for determination of the question of constitutionality of the act, but, also, the meaning of the prohibition contained in Const 1963, art 4, § 9. Accordingly, the governor’s request was not granted, it appearing that the entire related problem could better be resolved by decision of this case.
' Michigan Constitution of 1963, art 3, § 2, divides the powers of the State’s government into three branches. It forbids exercise of the powers of one branch by another. Const 1963, art 6, § 1,' vests the judicial power of the State exclusively in one court of justice. Interpretation of the State Constitution is the exclusive function of the judicial branch. Construction of the Constitution is the province of the courts and this Court’s construction of a-State constitutional provision is binding on all departments of government, including the legislature. See 16 Am Jur 2d, Constitutional Law, § 58, p 230. As said in Bank of Hamilton v. Dudley’s Lessee (1829), 27 US (2 Pet) 492, 524 (7 L Ed 496):
“The judicial department of every government is the rightful expositor of its laws; and emphatically of its supreme law.” ..
In this connection plaintiff cites Smith v. Auditor General (1911), 165 Mich 140, which held that in construing statutory provisions the practical construction which the legislature has during a long period of time adopted with reference to their meaning is entitled to weight; and Thayer v. Department of Agriculture (1949), 323 Mich 403, which reiterated the oft-stated presumption of constitutionality of an act of the legislature; and Sullivan v. Michigan State Board of Dentistry (1934), 268 Mich 427, which held that where a statute may be construed in either of two ways, one of which is consistent with constitutionality while the other is not, the former will be presumed to be the legislative intent. These lend no support for the proposition that it is competent for the legislature to take a term or language in the Constitution, interpret it and make that legislative interpretation the law. Equally inapt is plaintiff’s citation of People v. Blodgett (1865), 13 Mich 127, for the claimed proposition that an act of the legislature not prohibited by express words of the Constitution or by necessary implication cannot be declared unconstitutional by the Court; and also Bowerman v. Sheehan (1928), 242 Mich 95 (61 ALR 859) to the effect that under a State Constitution the legislature has all powers not thereby denied to it. The point is that what the legislature attempted to accomplish by the Act No 152 interpretation of the Constitution is expressly prohibited by the art 3, § 2, separation of powers, and the art 6, § 1, vesting of judicial powers exclusively in the Court.
Act No 152, here considered, endeavors to place an interpretation having the effect of law upon the words “civil appointment” as used in Const 1963, art 4, § 9. As above noted, the act is, in that respect, beyond the power of the legislature to enact and is, hence, unconstitutional. It follows that if, as construed by this Court, the constitutional language of article 4, § 9, prohibits plaintiff’s candidacy for circuit judge, the provisions of said Act No 152 avail him nothing to escape that constitutional barrier.
This leads us now to interpretation of the language of Const 1963, art 4, § 9, without benefit of legislative construction.
In Fyfe v. Kent County Clerk (1907), 149 Mich 349, this Court held that election by the electors of plaintiff to the office of delegate to a constitutional convention would be a “civil appointment” from a “State authority” within the meaning of these terms as used in the above quoted Const 1850, art 4, § 18, that, therefore, plaintiff, being a member of the legislature, was ineligible to be a delegate because that section prohibited him from seeking the office and, accordingly, a writ of mandamus to compel the defendant county clerk to place plaintiff’s name on the ballot for primary election as such delegate candidate would not lie. This Court, in passing, said that the terms “appointment” and “election” are synonymous terms.
In Attorney General, ex rel. Cook, v. Burhans (1942), 304 Mich 108, this Court cited and relied on its holding in Fyfe, and held that the words “civil appointment” from a “State authority” applied to election by the people of a candidate for the office of regent of the University of Michigan. In its opinion in that case this Court said that the then controlling language in Const 1908, art 5, § 7, similar to that quoted from the Constitution of 1850, barred plaintiff, a State senator, from holding the office of regent and rendered him ineligible for that office.
“Where a constitutional provision has received a settled judicial construction, and is afterward incorporated into a new or revised constitution, or amendment, it will be presumed to have been retained with a knowledge of the previous construction, and courts will feel bound to adhere to it.” 16 CJS, Constitutional Law, § 35, pp 114, 115,
It is our opinion that the prohibition in Constitution of 1963, art 4, § 9, against a person elected to the legislature receiving “any civil appointment * * * from any other state authority, during the term for which he is elected” comes within the meaning of the decisions in Fyfe and Burhans. In the governing provisions of all three Constitutions, 1963, 1908 and 1850, the language expressly providing that “no person elected to the legislature” (1963) or “no person elected a member of the legislature” (1908 and 1850) “shall receive any civil appointment within this State * * * from * * * any other State authority” is identical, and what we held these words to mean in Fyfe and in Burhans, we hold them also to mean in this case of Richardson. The Fyfe and Burhans Cases considered, decision here is planted squarely upon the rule of constitutional interpretation which this Court laid down in Council of the City of Saginaw v. Saginaw Policemen and Firemen Retirement System Trustees, 321 Mich 641, 647 (repeated in Bacon v. Kent-Ottawa Authority, 354 Mich 159, 170, 171):
“In City of Detroit v. Chapin, 108 Mich 136 (37 LRA 391), we quoted with approval from People, ex rel. Hughes, v. May, 3 Mich 598, 610, the following;
“ ‘ “ ‘The framers of a Constitution are presumed to have a knowledge of existing laws, * * * and to act in reference to that knowledge.’ ” ’
“And in School District of City of Pontiac v. City of Pontiac, 262 Mich 338, 348, we said:
“ ‘In drafting the amendment, as well as in its adoption, the people were mindful of existing conditions and sought to so frame the amendment as to be in accord with such existing conditions.’-
“In 11 Am Jur, Constitutional Law, § 63, pp 676, 677, appears the following:
“ ‘A constitutional provision must be presumed to have been framed and adopted in the light and ■understanding of prior and existing law and with reference to them.’ ”
"We note that in an effort to avoid application here of the decisions in Fyfe and Burhans, it is stressed on behalf of plaintiff that a change has been made in Constitution of 1963, art 4, § 9, from the language of its predecessor provisions in the Constitutions of 1850 and 1908.' The changes pointed out are deletion of the prohibition of appointment of a legislator to the United States senate and the further deletion of the language which provided that “all such appointments and all votes given for any person so elected for any such office or appointment shall be void”. In this connection, Mr. Hoxie, chairman of the committee on legislative powers of thé constitutional convention, was quoted as having said, in offering this section for his committee to the convention, the following:
“The. committee recommends that the provision preventing the civil appointment of a legislator be retained with one change. The prohibition against appointment to thé United States Senate is deleted. It is the opinion of the cottimittee that if a vacancy occnrs, ’there is no reason why a legislator, who is qualified, may not be chosen to fill it.
’“The deletion of the sentence that makes appointment and votes for legislators void is recommended. .The language is surplusage since the first part of .the section provides there shall be no such appointments.” 2 Constitutional Convention 1961, Official Record, p 2415.
"We are of the opinion, as Mr. Hoxie seems to have been at the constitutional convention, that after Constitution of 1963, art 4, § 9, expressly prohibited a legislator from receiving any civil appointment within this State from any State authority, the matter was conclusively disposed of and a further provision that votes given for him for such office shall be void was utterly unnecessary and needless surplusage since the first part of the section provides that there shall be no such appointments.
Plaintiff suggests, however, that Mr. IToxie’s comment concerning deletion of the prohibition against appointment of- a legislator to the United States senate, coupled with deletion of the language declaring certain votes to be void, revealed a committee concern with allowing legislators to seek other offices during their terms and not a mere desire to clean up an obsolete provision which appears, so says plaintiff, to have been based on the former requirement that United States senators be appointed by State legislatures. Thus, it is urged, the committee disclosed that it saw no harm in legislators being appointed to the United States senate by the governor when vacancies occur and, accordingly, must not have seen any harm in permitting a legislator to seek the position of United States senator at the hands of the people. The answer to this, however, is that the prohibition against appointment to the United States senate was surplusage and of no effect, because the United States Constitution, art 1, §§ 2, 3, exclusively sets forth the qualifications of the members of congress. Further, article 1, § 5, provides that each house of the congress shall be the judge of the qualifications of its own members to sit, and, thus, any impediment imposed by the State Constitution, statute, or decision is meaningless. See McLeod v. State Board of Canvassers, 304 Mich 120.
It has been suggested that as herein interpreted, Constitution of 1963, art 4, § 9, could be viewed as prohibiting a legislator from being re-elected to his legislative seat. The defect in such reasoning is that the constitutional inhibition is not against running for election during term, but against running for election to an office the term of which commences during the legislator’s term as such. He may not receive the appointment or take the new office during the term for which he was elected a legislator. A legislator runs for re-election to a term commencing at the expiration of his current term. In the instant case, a plaintiff seeks a judgeship the term of which commences during the term for which he was elected senator.
Plaintiff informed the board of State canvassers that it was his intention to resign as senator if elected judge. This is offered, apparently, to discount any suggestion that plaintiff would seek to hold two incompatible positions, and with the thought, evidently, that such situation is all that the constitutional prohibition could have been intended to prevent. The answer is that the prohibition against receiving any civil appointment or elective office extends not merely to the period while he serves as senator, but, in the language of the Constitution itself, “during the term for which he is elected.” In Ellis v. Lennon (1891), 86 Mich 468, it was held that resignation, in such circumstances, will not operate to create eligibility and counteract the prohibition.
Order of the Court of Appeals is reversed and mandamus denied. Plaintiff’s name shall not be submitted to the electors at the August 6, 1968, primary election in the 10th judicial circuit as a candidate for circuit judge.
Dethmers, C. J., and Kelly, T. M. Kavanagh, Adams, and T. E. Brennan, JJ., concurred.
Black, J., concurred in result.
PA 1968, No 152, amended PA 1954, No 116, § 2 (CUS 1961, § 168.2, Stat Ann 1956 Bev § 6.1002).—Beporter.
PA 1968, No 127, amended PA 1961, No 236. § 511 (CLS 1961, § 600.511, Stat Ann 1962 Bev § 27A.511).—Beporter. | [
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Adams, J.
(dissenting).
I. The Facts and Proceedings.
On February 23, 1961, plaintiff fractured his left hip while in the employ of defendant. Compensation was paid from date of injury until April 30, 1962. It was stopped on defendant’s allegation that plaintiff was able to return to work. About May 1, 1962, plaintiff was released to work by the treating physician but when he attempted to regain employe ment from the defendant, he was told that work was slow and he was not re-employed.
On September 17, 1965, the workmen’s compensation department received a letter from plaintiff. The referee considered the letter to be an application for further compensation. He granted compensation benefits beginning September 17, 1964, but denied plaintiff’s claim for benefits from August 1, 1962 to September 17,1964. Without any finding of facts to support his decision, the opinion of the referee merely states:
“It is further ordered that no compensation is payable prior to September 17, 1964 because of the prohibition of section 14 of part 3 of the workmen’s compensation act.”
The case was appealed to the workmen’s compensation appeal board. That board, after stating the proceedings and plaintiff’s testimony, went on in its opinion as follows:
“The question on appeal is limited to plaintiff’s entitlement to weekly compensation for the period August 1, 1962 to November 11, 1964. To support the relative positions, counsel argues, in short, as follows:
“Plaintiff — Claimant’s physical development as of 8-1-62 of aseptic necrosis is a subsequent or further development amounting to a new disability, ergo, the one-year rule does not apply as plaintiff’s application is for compensation other than ‘further compensation.’
“Defendant — Plaintiff’s condition as of 8-1-62 is nothing more than a normal process of the original injury, plaintiff failed to file timely and therefore the one-year-back rule applies.
“Obviously the referee below looked to the only medical testimony in the record to resolve this argument. Such testimony comes to us via Dr. Lipton, and pertinent parts thereof are set out as follows: # * *
“ ‘Based on the examination and the X-rays I made a diagnosis of healed fracture left hip with residual traumatic arthritis, aseptic necrosis, limitation of motion, some muscular atrophy and symptoms of pain. * * *
“ ‘Q. In this case what caused the aseptic necrosis in your opinion ?
“ ‘A. The aseptic necrosis arose as the result of the fracture with damage to the blood supply to the head of the bone. The blood supply of the head of the bone is peculiar in that most of it comes from the lateral side, that is, from the main part of the bone coming up through the neck of the bone. And in the fractures the blood supply is torn off and sometimes does not reestablish itself. * * *
“ ‘A. Aseptic necrosis never manifests itself at the time of the fracture. It is a condition which develops over a period of time afterwards. * * *
“ ‘A. It can also develop as the result of scarring which occurs at the fracture point with stricture of the blood supply. But it is most commonly due to actual tearing of the blood vessels at the time. * * #
“ ‘Q. Now these are conditions that progress from the trauma itself ?
“ ‘A. Well, basically it is the result of the original trauma, yes, sir.
“ ‘Q. And the process does not come on spontaneously, does it, it’s a developmental type thing as opposed to a spontaneous type thing, is it not?
“ ‘A. It is extremely unusual for it to be spontaneous. There have been cases but very unusual.
“ ‘Q. Was there anything unusual about Mr. Ad-cox when you examined him to lead you to believe that this would have been spontaneous?
“ ‘A. No, I don’t believe so. Tbe man had a fracture and he developed his trouble which is the— which would be what one could expect if the man had complications.’
“In view of the above set-out medical testimony of Dr. Lipton, it is my opinion that the referee was correct in this matter in ultimately concluding that plaintiff had not borne his burden of proving a new or further development which would in effect amount to a new disability. An order should enter affirming the award of the referee below.”
Upon appeal to the Court of Appeals, the workmen’s compensation appeal board' was affirmed. 11 Mich App 13 (1968). In an opinion by Judge J. H. Gtllis, joined in by Chief Judge T. John Lesinski, the following independent finding of fact appears (p 16):
“On or about August 1, 1962, plaintiff began experiencing increasingly severe pains in his left hip, which extended the length of his leg. The symptoms were caused by aseptic necrosis of the head of the left femur at the point of insertion in the hip socket.”
While the workmen’s compensation appeal board stated that plaintiff had testified to this effect, the board looked solely to the medical testimony in making its decision and no fact finding was made by the board. The time when plaintiff suffered disablement due to aseptic necrosis was disputed by defendant. It is the crucial question in this case.
II. The Law.
Section 14, part 3 of the Michigan workmen’s compensation act (CL 1948, § 413.14 [Stat Ann 1960 Rev § 17.188]) provides:
“If payment of compensation is made (other than medical expenses) and an application for further compensation is later filed with the commission, no compensation shall be awarded by the commission for any period which is more than 1 year prior to the date of the filing of such application.”
Plaintiff contends that the one-year rule under the above statute does not apply in this case because plaintiff’s claim is not for a disability that continuously existed from the date of injury but for a “further or subsequent development.”
In Morgan v. Lloyds Builders Inc. (1955), 344 Mich 524, plaintiff suffered an injury to his right eye on January 14, 1948. Compensation for lost time was paid immediately thereafter. May 9,1951, plaintiff suffered total loss of vision in the eye as a result of the same injury. Application for hearing and adjustment of claim was filed July 28, 1953. This Court followed the holding in Palchak v. Murray Corporation of America (1947), 318 Mich 482, a somewhat similar case. In PalchaJc the plaintiff first lost the industrial use of an eye and later the eye underwent degenerative changes resulting in the formation of cysts. The opinion in Morgan quotes from Palchak as follows:
“ ‘The statute in question did not impose on the plaintiff the duty of giving notice of such further development nor did it require plaintiff’s claim for further compensation based thereon to be presented within a prescribed period, as contended by defendant.’” (p 528.)
Morgan and Palchak differ from Lynch v. Briggs Manufacturing Co. (1950), 329 Mich 168. In that case, plaintiff became totally disabled as a steam fitter on March 26,1946. The disability in his skilled employment continued from that time onward. However, plaintiff was able to work in favored employment, Later, due to injuries not related to his employment, plaintiff was unable to perform the favored work. Plaintiff thereupon filed an application for benefits. They were granted subject to the one-year-back rule of the statute. This Court held that the rule applied because the disability was continuous from the date of injury. There had been no subsequent development.
In Loucks v. Bauman (1959), 356 Mich 514, plaintiff suffered the loss of his left leg on June 20, 1947, and was paid compensation for a specific loss until April 20, 1951. On November 12, 1954, plaintiff filed an application for compensation benefits for disability to his right leg, claiming injury to that leg in the same accident. The appeal board, in awarding further compensation, did not apply the one-year limitation. Upon appeal to this Court, a majority of the participating Justices modified and affirmed. Chief Justice Dethmers, joined by Justices Carr and Kelly, wrote in part as follows (pp 516, 517):
“In the instant case, plaintiff speaks of a further development, after loss of the left leg, in that the ‘increased weight-bearing due to the loss of Louck’s left leg directly contributed to and aggravated the unstable condition of his right leg.’ The appeal board made no such finding of fact that the disability of the right leg was a further development, and there is no testimony to support such theory in the appendix. On the contrary, the appeal board expressly found that plaintiff’s total disability resulted from both the amputation of the left leg and the unstable condition of the right leg which had existed since the date of his accidental injury on June 20, 1947.”
In Justice Edward’s concurring opinion, he said (pp 531, 532):
“I agree with the Chief Justice that the findings of fact of the appeal board indicate that this was a claim for further compensation dne to another injury which occurred at the same time as the original accident, rather than a subsequent development from the original injury (cf., Morgan v. Lloyds Builders Inc. [1955], 344 Mich 524) or a change in physical condition after the original adjudication (cf., White v. Michigan Consolidated Gas Co. [1958], 352 Mich 201).”
Palchalc held that where a workman suffers one injury but with two distinct results, the workman need comply with the notice requirement of the statute only once and that when the second compensable disablement developed the one-year-back rule was not applicable. Palchalc grafted an exception onto the statutory language which exception is not without difficulty of application to a particular fact situation as this case illustrates.
In this case, Judge T. (J. Kavanagh, dissenting in the Court of Appeals (11 Mich App 13,19), stated the test this way:
“It is the date that the condition becomes disabling, rather than when the pathological development begins, that determines eligibility for compensation. The 1-year rule is a limitation on further compensation for a disability for which some compensation was paid.”
To this we would add that the injury or condition which causes the further disablement must have been suffered in the same accident as the first compensable injury, but its manifestation is so undeveloped or concealed as to be undiscernible until a subsequent time.
This case is remanded to the workmen’s compensation appeal board for finding of. the facts by that board. See Kelley v. National Coal & Coke Co. (1968), 381 Mich 131. While the facts in this case seem reasonably clear, it is not the province of this Court or of the Court of Appeals to make findings of fact. White v. Michigan Consolidated Gas Co. (1958), 352 Mich 201, 209. If upon remand, the appeal board finds that plaintiff’s original compensable disablement, due to the fractured hip, came to an end and that thereafter plaintiff suffered a new compensable disablement due to the aseptic necrosis, the one-year-back rule should not be applied. If the appeal board finds there was a single compensable disablement, the aseptic necrosis manifesting itself in the progression of such single disablement, the one-year-back rule should be applied. Finally, upon the present record or upon the taking of such further proofs as the parties may wish to submit, if the appeal board is unable to make either finding, it should affirm the award of the referee due to the failure of plaintiff to bear his burden of proving a further development.
The award should be reversed and the cause remanded. Costs to abide the final result.
T. M. Kavanagh, J., concurred with Adams, J.
Black, J.
The requisite whole of the appeal board’s opinion on review appears in Justice Adams’ opinion, ante at pages 603-605. Quoted'in that opinion on review is a substantial portion of the testimony of Dr. Lipton. The doctor was the only medical witness sworn. He examined plaintiff on request of the latter’s counsel and was called as a witness for the plaintiff. The appeal board relied exclusively upon his testimony in reaching its mixed law and fact finding:
“In view of the above set-out medical testimony of Dr. Lipton, it is my opinion that the Referee was correct in this matter in ultimately concluding that plaintiff has not borne his burden of proving a new or further development which would in effect amount to a new disability. An order should enter affirming the award of the referee below.”
The doctor’s quoted testimony reads fairly if not persuasively that plaintiff’s 1962 pain and subsequent disability was due to aseptic necrosis; that such necrosis is a not-unusual result of a hip fracture such as was sustained the previous year by plaintiff; that it “arose as the result of the fracture with damage to the blood supply to the head of the bone,” and that “basically it is the result of the original trauma.” It supports the quoted finding as well as the final conclusion reached by Division 1 of Court of Appeals and calls for a determination here that plaintiff failed to prove that he has suffered a “further development” within meaning and purpose of the cases which Justices Dethmers and Edwards considered in their concurring opinions of Loucks v. Bauman (1959), 356 Mich 514, 529.
If this appellate Court is willing to accept the doctor’s quoted testimony, and I suggest it should since the administrative triers of facts did so unequivocally in reaching their decision, the statutory bar against payment of compensation — “for any period which is more than 1 year prior to the date of the filing of such application” — expressly applies.
I would affirm.
T. E. Brennan, C. J., and Dethmers and Kelly, JJ., concurred with Black, J.
T. Gf. Kavanagh, J.,
took no part in the decision of this case.
See CL 1948, § 413.12 (Stat Ann 1988 Rev § 17.186)Repobter.
“In our opinion, this testimony supports the finding that plaintiff did not sustain the burden of proving a ‘further and subsequent development,’ that is, one injury with 2 distinct results. See Palchak v. Murray Corporation of America (1947), 318 Mich 482, 493.” (Adcox v. Northville Laboratories, Inc. [1968], 11 Mich App 13, | [
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Kelly, J.
This is an appeal from decisions of the Kent county circuit court in separate actions, here consolidated, and involves the interpretation of section 1 of PA 1953, No 189, as amended by PA 1962, No 226 (MCLA § 211.181 [Stat Ann 1968 Cum Supp §7.7(5)]). In pertinent part, the statute here involved reads:
“When any real property which for any reason is exempt from taxation is leased, loaned or otherwise made available to and used by a private individual, association or corporation in connection with a business conducted for profit, except where the use is by way of a concession in or relative to the use of a public airport, * * * or similar property which is available to the use of the general public, the lessees or users thereof shall be subject to taxation in the same amount and to the same extent as though the lessee or user were the owner of such property.” (Emphasis ours.)
Plaintiff county of Kent filed its complaint on September 30, 1965, stating that on August 30, 1963, it had, through the Kent county aeronautics board, entered into a 20-year lease agreement with Fred Harvey, whereby certain property of the Kent county airport was leased to said Fred Harvey for purposes of a motel and restaurant business on said premises; that defendant city of Grand Rapids levied its 1965 taxes on the premises so used as a motel and restaurant; that plaintiff paid said taxes under protest, and now seeks judgment for the amount so paid, claiming to be exempt from taxation by virtue of the above statute.
On March 8, 1966, plaintiffs Northern Air Service, Inc. (hereinafter called Northern), and the county of Kent filed their complaint against the township of Cascade, Kent county, Michigan, stating that said Northern Air Service had in October, 1962, leased from the Kent county aeronautics hoard, acting for and on behalf of the county of Kent, certain facilities, including hangars, offices and related buildings, and that defendant had assessed for real property taxes the lands and buildings owned by Kent county airport and leased to Northern and had levied 1965 taxes thereon; that plaintiff Northern paid said taxes under protest; that county of Kent is the real party in interest because it has agreed with Northern that in the event a real property tax or tax in lieu thereof is assessed against Northern based upon the value of the capital improvements provided and owned by Kent county airport, the rental to be paid by Northern to the Kent county airport should be reduced by the amount of such tax; that Northern is also a real party in interest in that under the terms of its agreement with plaintiff county of Kent, in the event such tax is assessed, Northern will pay additional rentals based upon gross sales.
On December 28, 1966, Hon. Fred N. Searl, circuit judge, entered judgment in each of the cases in favor of plaintiffs.
Leave to appeal prior to decision of the Court of Appeals was granted by the Supreme Court.
The Kent county department of aeronautics and board of supervisors determined that the proper operation of the terminal required that there be situated at the airport suitable restaurant facilities and a motel for use by the patrons or users of the airport and such members of the public as desired to use these facilities. The department further determined that there should be a “fixed base operator” at the airport to furnish certain services in connection with planes using the airport.
Pursuant to such recommendations, the county entered into a 20-year written lease with Fred Harvey, a nationally known corporation, to operate the restaurant facilities, and a 30-year lease with Northern to perform the functions of the “fixed base operator.”
The record sustains and appellants do not challenge the following findings of fact by the trial court:
“Under this lease Fred Harvey operates three restaurants, one a coffee shop, the second a full meal restaurant on the first floor of the terminal, and the third another full meal restaurant on the second floor of the terminal. Fred Harvey has a Michigan liquor license and has a bar and cocktail lounge in connection with each of the two full meal restaurants.
“Fred Harvey also furnishes some meals to the airlines to be served to passengers in flight.
“The motel is owned by the county and situated on airport property, and there are available 35 rooms for guests. Advance reservations account for from 80 to 90 per cent of its business, and lessee estimates from such information as it has been able to obtain that more than 90 per cent of its patrons have some dealings with the airport in one way or another — airline employees, passengers, persons meeting or taking passengers to the airport. The motel is open to the public and gets some of its business from patrons who have no dealings with the airport.
“Plaintiff introduced proofs which were not disputed to the effect that restaurant facilities are necessary to operating a modern airport, and that to make the operation of a good restaurant economically successful and to meet the requirements of the patrons, the serving of cocktails and other liquors is a practical necessity. Proof was further made that motel or hotel facilities are increasingly being made a part of the terminals of the large airports throughout the United States.”
Said lease requires Fred Harvey to perform in accordance with the following:
“4. Lessee shall at all times provide personnel sufficient to operate the leased facilities on a standard equal to that maintained by comparable restaurant, concession and motel operations at comparable locations. Lessee will not maintain in its employ any personnel whose conduct lessor finds to be detrimental to the proper operation of the airport. All employees shall be neat and clean in their appearance at all times. All restaurant employees shall wear uniforms.
“5. Lessee agrees that it will adopt and use decorating schemes and motifs in harmony with the design and architectural treatment of the terminal building and will submit the same, including any proposed changes therein, to the department of aeronautics for its approval prior to installation.
“6. Lessee agrees to keep the coffee shop, the merchandise concession and newsstand, dining room and bar and cocktail lounge open for business during such hours as may be required to meet the reasonable demands for said services. Lessee shall provide breakfast, lunch and dinner service 7 days a week at least from 7:00 a.m. to 9:00 p.m. and shall provide a minimum food service during the entire 24 hours of each day. Such minimum service may consist of offering food only through vending machines. Lessee agrees to keep the motel open for 24 hours during each day.
“7. Lessee agrees that it will maintain the motel site in good condition and appearance and will keep the drives, walks and motel parking lot free and clear of snow and in good and safe condition. Lessee agrees that the motel parking lot shall be used only by registered guests of the motel, or their visitors, immediate prospective guests, persons employed at the motel, and suppliers doing business at the motel.
“8. Lessee agrees that it will not directly or through a subsidiary or enterprise affiliated with lessee operate competitive restaurant or motel facilities within 8 miles of the airport terminal building without the prior approval of lessor.
“9. Lessee agrees that the prices charged for all food, beverages and other merchandise sold on the demised premises shall be competitive with the established prices charged by similar restaurants, gift shops and other businesses selling like quality and quantities of similar food, beverages and merchandise and providing similar services.”
The portion of the airport property leased to Northern consists of hangars and hangar space utilized by Northern for purposes of conducting its business of subleasing space for aircraft storage, maintenance, and the operation of a private flying school. The uses of subject property were characterized by witnesses for the plaintiffs as a “fixed base operator.”
The lease between the Kent county aeronautics board, acting for and on behalf of the county of Kent, and Northern Air Service, Inc., provided that lessee will agree to observe and obey lessor’s rules and regulations with respect to the use of the airport, protecting the safety of those using the airport; that lessee will furnish any services to be provided by it on a fair, equal and not unjustly discriminatory basis to all users thereof, and that it will charge fair, and not unjustly discriminatory prices for each unit of service; that lessee will under date of the commencement of the term of this lease file with the lessor a schedule of the rates and charges covering hangar rental fees, charges for tie-downs and charges for fuel. The lease provided further that any charges, revisions or additions to the original schedule so filed should immediately be filed with the lessor; also that in the event lessor should determine such rates or charges are unreasonable, and no agreement in relation thereto is reached between lessor and lessee, either party could by notice in writing to the other, submit the controversy or claim to arbitration.
The State of Michigan since the enactment of the aeronautics code of the State of Michigan has encouraged and helped political subdivisions in the establishing of airports and has granted the right “to confer the privileges of concessions of supplying upon its airports goods, commodities, things, services and facilities: Provided, That in each case in so doing the public is not deprived of its rightful, equal and uniform use thereof.” (CL 1948, § 259-.133 [Stat Ann 1953 Cum Supp § 10.233].)
And the amendment to this provision (PA 1959, No 181 [CLS 1961, § 259.133; Stat Ann 1968 Rev § 10.233]) provided the right
“to confer the privileges of concessions of supplying upon its airports goods, commodities, things, services and facilities; and to enter into leases, contracts, agreements or grants of privileges of concessions with any person or persons. * * * Such terms, charges, rentals and fees shall be equal and uniform for the same type of facilities provided, services rendered or privileges granted with no discrimination between users of the same class for like facilities provided, services rendered or privileges granted: Provided, That in each case in so doing the public is not deprived of its rightful, equal and uniform use thereof.”
PA 1945, No 329 as amended and PA 1951, No 206 created the “Michigan aviation matching fund” and the “Michigan aviation supplemental matching fund,” respectively, for the purpose of assisting political subdivisions in the construction and improvement of public owned airports. The State contributed $800,000 toward the Kent county airport project.
The Fred Harvey and Northern Air Service facilities were constructed under bond issues authorized by the Kent county board of supervisors and approved by the Michigan municipal finance commission.
Complaining about the trial court’s finding, appellants state:
“The trial court appears to treat the relationship as pursuant to a lease but holds that it makes no difference under the exemption provision of Act 189.
“The appellants contend that the relationship created is that of a landlord and that such relationship causes the interest to be taxable under Act 189.”
The trial court answers appellants’ complaint, as follows:
“The use by the two lessees comes squarely within the generally accepted definition of a ‘concession,’ and I can find no authority for the position that a concession cannot be granted by lease as well as by other forms of written instruments. * * *
“The question here is, of course, what did the legislature intend? Usually it is presumed to intend the ordinary meaning of the words used. The ordinary meaning of the word ‘concession,’ as evidenced by the dictionary definitions, embraces the uses made by Fred Harvey and Northern Air Service. The ordinary meaning of the words used are entirely consistent with the intention of the legislature as evidenced in an earlier statute, the 1945 aeronautics act wherein the legislature authorized a political subdivision establishing an airport ‘to confer the privilege of concessions.’ * * *
“From the language of the section, as amended, counsel infer that there is a distinction between ‘leases’ and ‘grants of privileges of concessions.’ And further infer that the legislature intended that the grant of the privilege of concession cannot be made by lease,
“If the legislature so intended, it chose a very complicated method of indicating its intention, that is, requiring the making of an inference upon another inference, when it could have made its intention clear and unequivocal in a few words. I can find no reason for drawing such an inference. * m *
“There is nothing in this language that indicates any intention to require the concession to be granted by some form of grant other than a lease. To the contrary, there is indicated the intention to except concessions granted by lease, loan or otherwise.”
Subsequent to our September 1968 decision of City of Detroit v. Tygard, 381 Mich 271, this Court granted the request that the parties to this litigation be allowed to submit additional briefs as to what extent, if any, that decision should control this decision.
Defendants Tygard were granted possession of certain T-hangars under a written agreement with the Detroit aviation commission, an agency of the city of Detroit, to hold and use the property on a month-to-month basis, terminable with or without cause by the city.
The same taxation statute that is under consideration in this present appeal, was considered and construed as this Court affirmed the trial court’s order granting summary judgment to plaintiff city of Detroit in its action against defendants to collect unpaid taxes.
In deciding that defendants should pay the taxes, this Court commented on the fact that the question was one of first impression, that the act did not define the meaning of “concession” as that term was used by the legislature, and approved a dictionary definition of concession as (p 275):
“ ‘A privilege or space granted or leased for a particular use within specified premises.’ ” (Emphasis ours.)
Emphasizing that the factual situation created by the agreement there under consideration was all-important and that the opinion was confined to the City of Detroit-Tygard agreement, this Court stated (p 277) :
“By our holding here we express no opinion upon the merits of any case now pending under the same statute, nor upon any factual situation created by agreements different from those which are in force between appellants and the Detroit aviation commission, acting for the city of Detroit.”
The factual situation created by the City of Detroit-Tygard agreement is not similar to the situation in the present appeal, and our decision in that case does not control our decision in this appeal.
Both the 20-year Harvey lease and the 30-year Northern lease contain provisions that fully met the requirements of the aeronautics code of the State of Michigan, which provided that:
“Such terms, charges, rentals and fees shall be equal and uniform for the same type of facilities provided, services rendered or privileges granted with no discrimination between users of the same class for like facilities provided, services rendered or privileges granted.”
The City of Detroit-Tygard decision established that the agreement there considered failed to meet those requirements.
The privileges granted under the leases to Fred Harvey and Northern Air Service are concessions and “are entirely consistent with the intention of the legislature as evidenced in an earlier statute, the 1945 aeronautics act wherein the legislature authorized a political subdivision establishing an airport To confer the privilege of concessions.’ ”
We agree with the trial court and affirm its opinion holding that the uses of the property leased by Fred Harvey and Northern Air Service are concessions and that by PA 1953, No 189 as amended, the property here involved is exempt from taxation.
Affirmed. No costs, a public question being involved.
T. E. Brennan, C. J., and Dethmers, Black, and T. M. Kavanagh, JJ., concurred with Kelly, J.
PA 1945, No 327, being CL 1948, § 259.1 et seq., as amended (Stat Ann 1960 Rev and Stat Ann 1965 Cum Supp § 10.101 et seq.).
CL 1948, §§ 259.504, 259.506, 259.508, and CLS 1961, § 259.501 et seq.
CLS 1961, § 259.511 et seq. | [
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O’Hara, J.
This is a case of statutory construction. The statute involved is PA 1953, No 189, as amended by PA 1962, No 226 (MCLA § 211.181, Stat Ann 1968 Cum Supp § 7.7 [5]). It is a taxation statute. Both in the Public Acts and the Compiled Laws Annotated, the editorially supplied caption is:
“Taxation of lessees and users of tax-exempt [real] property; exceptions.”
The nature of the tax was judicially construed by this Court in United States v. City of Detroit (1956), 345 Mich 601. The decision was affirmed by the Supreme Court of the United States (1958), 355 US 466 (78 S Ct 474, 2 L Ed 2d 424). We said (p 612):
“Holding, as we do, that the tax imposed is not ad valorem on the property nor on the leasehold, but a specific tax on the privilege of using the property.”
So we deal with a specific tax which, however, is imposed in the same amount as the ad valorem general property tax on similar realty. The remedy for nonpayment of the tax is an action in personam against the users. There is no provision in the act for an action in rem and lien against the property. The city of Detroit, plaintiff-appellee, proceeded under the statute against defendants-appellants in one action for taxes assessed and unpaid. Plaintiff Tygard, and numerous others identically situated, sought declaratory relief against the city. The cases were consolidated below and consolidated here.
There are no fact issues. The facts have been stipulated. Appellants Tygard are copartners doing business as Trim-A-Plane Service. They have possession of certain designated T-hangars under written agreements with the Detroit Aviation Commission, an agency of the city of Detroit, The busi ness consists of giving flying lessons, ground school courses, instrument flying, and renting, leasing, storing and servicing small aircraft for the public generally. The realty upon which they conduct these operations is owned by the city of Detroit. So owned, it is not taxable. The agreement under which they hold and use the property is on a month-to-month basis terminable with or without cause by the city. The city sued in assumpsit, as provided by the act, and recovered judgment for the unpaid taxes. The declaratory relief was denied. We granted bypass leave prior to decision by the Court of Appeals. The city raises certain questions as to the propriety of the challenge of the taxes and the users of the property contend they have been denied an administrative remedy for the recovery of taxes illegally assessed. We do not consider either question decisionally relevant.
The basic question is the effect of a tax exemption provision in the act. As pertinent it reads:
“When any real property which for any reason is exempt from taxation is leased, loaned or otherwise made available to and used by a private individual, association or corporation in connection with a business conducted for profit, except where the use is by way of a concession in or relative to the use of a public airport, # * * [it] shall be subject to taxation * * * to the same extent as though the lessee or user were the owner of such property.”
The nub of the question, as was observed by the learned trial judge, is the meaning of a “concession” as that term was used by the legislature. It was not defined in the act. It has not been heretofore judicially defined by this Court. The question is one of first impression.
Perforce we say as we have said ■uniformly before in determining legislative intent we accord words their ordinary meaning:
“The words of a statute are to be taken in their ordinary signification and import.” Green v. Graves (1844), 1 Doug (Mich) 351, 354.
We think there is a difference between a “concession” and a leasehold or rental agreement of whatever term. Had the legislature intended to include every lease or rental agreement in the exemption heretofore mentioned, we do not believe they would have added the language “where the use is by way of a concession.”
We look first to a dictionary definition of “concession” :
“A privilege or space granted or leased for a particular use within specified premises.”
The example used in the definition is “the soft drink concession at the ballpark.” We regard the use of the definite article “the” as significant. It imports to the term “concession” the concept of exclusivity. We do not rest our decision on this concept alone. However, if the privilege granted is exclusive, we think it distinguishes it from the more general type of permissive use. We note that in the suit for a declaration of rights there are numerous other parties privileged as are plaintiffs-appellants.
Next, we believe the concept of specific obligations on the part of the privileged party to maintain particular services at specified times is an incident of a concession. We find no such obligations imposed by the agreement here under consideration. No minimum hours during which the services of fered must be made available to tbe public are required. No standards of service are mandated. Of course, tbe services offered must bear a reasonable relationship to tbe purposes of a public airport. That element in part is present here, particularly tbe storage and servicing of aircraft. We are not furnished any figures as to what percentage of appellants’ business is concerned with tbe storage and servicing of transient aircraft, certainly one of tbe most important uses of a public airport. We would not be understood to mean that we negate as a proper use of a public airport tbe storage of locally based aircraft.
We think that a further indication of legislative intent can be found in tbe related aeronautics code which specifically empowers political subdivisions with tbe right to “confer concessions * * # upon its airports”, bespeaks an intention to assure that tbe services customarily and needfully required at airports will be assured. It follows that in return for tbe privilege granted, a corresponding obligation necessarily arises. That is tbe nature of a concession as we believe tbe legislature used tbe term.
Applying all of tbe foregoing incidents of a concession to tbe relationship between tbe aviation commission and appellants, and those identically situated as established by tbe rental agreement, we cannot but conclude that tbe city of Detroit did not grant one or any of them a “concession” within tbe meaning of tbe statute.
We distinguish Rockwell Spring & Axle Company v. Romulus Township (1962), 365 Mich 632, as did tbe trial judge, as not involving tbe specific issue of tbe meaning of “concession.” We quote with approval from bis well-reasoned opinion:
“In the opinion of the court the lease agreements herein in issue do not contain any language or terms conferring upon the lessees a grant of privileges of concessions.”
By our holding here we express no opinion upon the merits of any case now pending under the same statute, nor upon any factual situation created by agreements different from those which are in force between appellants and the Detroit Aviation Commission, acting for the city of Detroit. As a convenience to the bench and bar, we append hereto the 1963 agreement between appellants Tygard and appellee city. We note in this connection that the unnumbered paragraph at the end of the instrument did not appear in the 1962 version of the agreement. Save this, they are identical.
The order granting summary judgment to plaintiff city of Detroit in its action against defendants-appellants is affirmed. The order dismissing the complaint of plaintiffs-appellants Tygard and others against the city of Detroit is likewise affirmed. No costs, construction of a statute.
Dethmers, C. J., and Kelly, Black, T. M. Kavanagh, Adams, and T. E. Brennan, JJ., concurred.
Appendix — July 1963 Agreement
“City ok Detroit Municipal Airport
11201 Conner Ave., Zone 13 Detroit, Michigan
Phone LA 6-5875
Operated by Detroit Aviation Commission
“Agreement kor Storage ok Aircrakt
T-hangar No. 2, 69, 76, 77, 78 & 80
“Agreement made this 15 day of July, 1963, between the Detroit City Airport, a governmental agency of the city of Detroit, Michigan, hereinafter called the airport, and Trim-A-Plane Service hereinafter called the lessee.
“Witnesseth:
“In consideration of the payment of $......per month, payable on the first day of each month, the airport agrees to let, on a month to month basis, the above designated T-hangar or field storage lot, subject to the conditions and covenants herein contained, and to be used for the following purpose(s):
Plight School — Yes, Business Use — Trim Work Plane No. N2347N, N7496A, N8376B, N51062, N1327P, Make — Cessnas & One Piper, Twin Engines — One, Single Engine — 5
Registered owner — -John L. Tygard, address 5067 Somerset, Detroit 24, Michigan
Home phone — YE 9-6500, business phone — ’Same Type of pilot’s license — Commercial, License No. 95259, Plying hours — 13,000
Name and address of bank in which you have your account — Bank of the Commonwealth
Name of one local charge account — Ueneral Aircraft Supply
Place of employment — Self
Aircraft insurance company — Airway Underwriters Address — Ann Arbor and Detroit, Phone — NO 3-0572
Type of insurance carried — Crash P.D. & P.L., 20,000/40,000
“Lessee covenants with airport as follows, to-wit:
“1. To notify airport, in writing, within 10 days, of any change in the information furnished herein.
“2; To abide by all rules and regulations of the Federal aviation agency, State of Michigan and city of Detroit, and of any other duly constituted public authority having jurisdiction.
“3. Lessee shall not sublet or furnish to any other person any office space, hangar, T-hangar, storage space, field storage privilege, or any other right or privilege in or on any airport property without the written consent of the airport manager.
“4. The lessee agrees to accept all facilities on the leased premises on an ‘as is basis’; further, the airport hereby disclaims, and owner accepts such disclaimer, of any warranty, either express or implied, of the condition, use, or fitness-of the tie down rings, ropes or chains used to secure the airplanes, and owner assumes full responsibility to furnish any equipment necessary to properly secure his aircraft.
“5. Lessee accepts and recognizes that he (it) or his (its) agents are responsible for setting parking brakes, placing chocks, and tying,down and checking of their own aircraft.
“6. Lessee further covenants and agrees that he will not hold the city of Detroit or any of its agents, employees, or airport commission members, responsible for any loss occasioned by fire, theft, rain, windstorm, hail, or from any other cause whatsoever, whether said cause be the direct, indirect or merely a contributing factor in producing the loss to any airplane, automobile, personal property, parts or surplus that may be located or stored in the hangars, T-hangars, offices, aprons, field, or any other location at the airport; and lessee -agrees that the plane(s), and its contents are -to be stored whether on the field or in the hangars at lessee’s risk:
“7. Lessee agrees to indemnify, defend, and save airport, its agents, officers, representatives, and employees, harmless from and against any and all liability or loss resulting from claims or court action arising directly or indirectly out of the acts of lessee, his (its) agents, servants, guests, or business visitors under this agreement or by reason of any act or omission of such person.
“8. Lessee agrees to accept airport employees .as his (its) agent(s) and to absolve the airport from any liability whatsoever arising while his (its) plane is in the hands of said employees.
“9. That in the event of any misrepresentation or default of the aforementioned representations 'by lessee, the airport shall have the right to ground all airplanes and to padlock all offices, shops, bays, and T-hangars of lessee.
“10. The lessee hereby gives and grants to airport a lien upon, and hereby hypothecates to airport, all fixtures, chattels and personal property of every kind and description now or hereafter to be placed, installed or stored by lessee, at the airport; and agrees that in the event of any failure on the part of the lessee to comply with each and every one of the covenants and obligations hereof, or in the event of any default continuing for 60 days of any specified rent, airport may take possession of and sell the same in any manner provided by law and may credit the net proceeds upon any indebtedness due, or damage sustained by airport, without prejudice to further claims thereafter to arise under the terms hereof.
“11. The airport shall have the right to terminate this agreement at any time with or without cause on delivery of written notice to the lessee at his last known address and upon refunding to lessee a pro rata amount of the storage charges heretofore provided for the unexpired portion of the month following the date of such termination; and upon such termination the lessee shall immediately remove said airplane (s) from the Detroit city airport.
“12. The airport shall have the right to enter said premises at any time for inspection or to make repairs, additions or alterations as may be necessary for the safety, improvement, or preservation of the leased premises.
“13. As a condition precedent to their being-granted the right to operate at the city of Detroit municipal airport, all flight operators and flying clubs do hereby covenant and agree to carry a minimum of $20,000/$40,000 public liability, $20,000 passenger liability, and $25,000 property damage liability insurance. This policy shall name the city of Detroit as a named insured and shall contain a 30-day notice of cancellation clause. Said insurance shall he carried with an insurance company duly authorized to do business in Michigan and a certificate showing that said insurance, as provided above, is in force shall be furnished to the city of Detroit.
“14. Flying club lessees do further agree to provide the airport with an up-to-date list, of the names of all members of said club, on the 1st day of January and July of each year in which they operate at the city of Detroit airport.
“15. Lessee hereby acknowledges receipt of a copy of this agreement and a copy of the rules and regulations of the Detroit city airport, said rules and regulations being specifically incorporated by reference as though fully set forth herein, and agrees that he (it) shall be bound thereby.
7-15-63 John L. Tygard
(Date) (Signature of Applicant)
7-15-63 W. D. Ray
(Date) (For the Airport)
“Lessee agrees to pay in addition to the rent provided for herein all taxes assessed under Act 189 Public Acts of Michigan for 1953, as amended, and any other taxes which lessee may be required by law to pay.” (Emphasis supplied.)
We use the term “city,” “airport” anti “commission” interchangeably. There is no legal distinction for purposes of this ease.
World Book Encyclopedia Dictionary, p 412.
OLS 1961, § 259.133 (Stat Ann 1960 Rev § 10.233). | [
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T. M. Kavanagh, J.
Plaintiff-appellant filed a petition for hearing dated November 26, 1965, which was received by the workmen’s compensation department on November 29, 1965. The petition alleged that on or about September 28,1963, the plaintiff sustained a personal injury or disablement from occupational disease, which was caused by driving-under hazardous and fatiguing- conditions and resulted in disability to his head, back, upper extremities, and aggravation of a diabetic condition.
The petition for hearing, in the space provided for designation of insurance carrier, has the handwritten notation “No Record AP.” However, the file contains photostatic copies of letters and notices of issuance of policies from an agent of the insurance carriers. The letter and notice of issuance of policy, which pertain to the Highway Insurance Company’s policy, are dated September 17, 1956, and indicate no date of receipt. The letter and notice of issuance of policy, which pertain to the Citizens Casualty Company’s policy, are dated March 13, 1963, and are stamped as being received by the workmen’s compensation department on March 14, 1963. The letter from Siegel Agency indicating the expiration date of the Citizens Casualty policy is dated February 26, 1965, and is stamped as being received by the workmen’s compensation department on March 1, 1965.
The department’s records show three notices of hearings were filed on January 19, February 18, and April 21,1966, indicating, respectively: first, setting the application for hearing and adjustment of the claim and pretrial conference on February 18; second, postponing the hearing until April 20; third, postponing the hearing until May 19.
The file does not disclose any proof of service on the employer, National Coal & Coke Company, or service on the insurance carriers, Citizens Casualty Company and Highway Insurance Company, by the department or by plaintiff. The notices in the file do not bear a stamp indicating a mailing date as is customary under practices in effect for many years in the workmen’s compensation department. The employer failed to answer or appear in response to any of the notices.
Plaintiff and his attorney appeared for the hearing on May 19, 1966. Proofs were taken and at the conclusion of the proofs plaintiff’s attorney moved’ to amend the application in conformity with the proofs to include an injury resulting in loss of vision in the left eye in July, 1957. There being no objection, the referee allowed the amendment.
On June 1,1966, the referee entered two decisions awarding compensation for the loss of an eye and for total disability. These decisions bear stamps indicating that they were filed with the department on June 13 and were mailed on June 20, 1966, but no proof of service appears in the file.
Under date of September 8, 1966, defendant employer filed a petition for delayed appeal, which was received in the office of the appeal board of the workmen’s compensation department on September 9, 1966.
The file discloses a < letter, stamped as -being received September 14, 1966, by the workmen’s compensation appeal board from the attorney of the insurance carriers, Citizens Casualty Company and Highway Insurance Company, affirming the existence of insurers for the defendant covering the dates of the alleged injury and denying any knowledge -or receipt of any notice of the proceedings until after the decisions of the referee were entered.
After answer by plaintiff, the appeal -board denied the petition for delayed appeal on October 26, 1966, without stating its reasons or making any additional findings. The order has affixed to it a stamp indicating that copies were mailed October 26, 1966, by the appeal board of the workmen’s compensation department.
Defendant filed an application for leave to appeal to the Court of Appeals. The Court of Appeals entered an order dated February 20, 1967, granting the application for leave to appeal. In‘addition, the prder remanded the cause to the workmen’s compensation department for hearing on plaintiff’s petition and amended petition. No reasons were given in the order for granting leave or remanding the cause.
Plaintiff filed an application for leave to appeal to this Court. Leave was graxxted June 8, 1967, 379 Mich 765, the order reading:
“On order of the Court, the application for leave to appeal is considered, and the same is hereby granted, limiting the same as to the question of whether notice of the eye injury was- timely given or whether the employer had actual notice or knowledge thereof. Dethmers, ,C. J., and Brennan, J., dissenting.”
However, the real question necessary to decision is much broader than, the limited issue granted upon leave to appeal. The issue confronting this Court is whether the defendant employer received the proper notice of the proceedings as required by the applicable rules of the administrative code governing workmen’s compensation department procecl/UlI^GS
Rule 4, 1964-1965 AACS, § R 408.34, effective September 13, 1965, states in part:
“The department shall thereupon serve the adverse party with a copy of the application, and the adverse party shall file his answer thereto with the department within 15 days after service, and serve a copy of the answer on the party making the application. The department will thereupon notify the parties of the time and place of hearing. * * *
“Service of all papers under this rule upon employers whose liability tmder the act is not insured according to the records of the department, or who have-not been granted the privilege of self-insurance, shall be by certified mail with a return receipt requested. Filing of the said rehirn receipt shall be prima facie proof of service.” (Emphasis added.)
Rule 6, 1959 AACS, § R 408.36, states:
“Service of all papers, unless otherwise directed by law, may be made by mail and proof of such mailing will be prima facie evidence of such service. A copy of all petitions and motions, except applications referred to in Rule 4 [1964-1965 AACS, § R 408.34] shall be served by the moving party upon the adverse party. Proof of such service shall be filed with the department.” (Emphasis added.)
These rules were in effect at the time plaintiff filed his petition in November 1965.
Although the referee stated at the hearing that “the department record shows no record of insur anee”, the record as certified by the appeal board clearly discloses that the employer was in fact insured. Further, the appeal board, by receipt of the letter dated September 13, 1966, from the attorney of the insurance carriers, was put on notice that, contrary to the referee’s statement, there were insurance carriers for the defendant.
The existence or nonexistence of an insurance carrier clearly affects the notice procedure to be followed under the applicable rules. If the referee’s statement was accurate, he was required, pursuant to Buie 4, to serve “all papers under this rule upon employers * * * by certified mail with a return receipt requested.” If the referee’s statement was erroneous, he could, pursuant to Buie 6, serve all papers upon the employer by ordinary mail, and this would constitute sufficient notice.
The discrepancy between the referee’s statement and his actions gives rise to the question of whether the employer did, in fact, receive proper notice of the proceedings. The appeal board should have determined this question of fact when petitioned by the defendant for delayed appeal. The affidavit in support of the petition for delayed appeal by defendant’s attorney attests to the fact that the defendant received “no notice whatsoever relative to the ultimate trial date” or with respect “to this new alleged personal injury”. In view of this discrepancy, the appeal board should not have dismissed this affiant’s claim of procedural defect but should have proceeded to determine the facts.
"We are cognizant of the fact that the department’s records show an insurance carrier and could infer that Buie 6 should apply. However, in the case before us we have the same kind of inconclusive and unsatisfactory record as we had in Pitts v. Admiral Plumbing & Heating Company (1962), 368 Mich. 37, where we held (p 44):
“The record justifies a finding by this Court that the case be remanded to the appeal board for a hearing to determine by competent proof whether notices of hearings were actually given to defendant.
“If, on such proof, it is determined defendant had proper notice, then the appeal board will affirm the present award, since the failure of defendant to present its defenses after proper notice would bar its presentation at this time.
“On determining that no proper notice was given defendant, a new hearing, after proper notice, shall be conducted by the appeal board.”
We remand this cause to the workmen’s compensation appeal board for a proper determination of the notice question. The appeal board must affirm the award if the proofs indicate that defendant had received proper notice; or grant a new hearing, after proper notice, if the proofs indicate that defendant had not received proper notice.
Costs shall abide the final result.
Dethmers, C. J., and Black, O’Hara, Adams, and T. E. Brennan, JJ., concurred.
Kelly, J., took no part in the decision of this case. | [
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T. E. Brennan, J.
1. The Facts.
This lawsuit arises by reason of a legislative oversight.
By PA 1960, No 44, effective April 19, 1960, water companies were added to the list of public utilities coming under the jurisdiction of the Michigan public service commission. Automatically, therefore, on April 19, 1960, every water company in Michigan was obligated to file its rates with the commission and obtain commission approval thereof. CL 1948, § 460.57 (Stat Ann § 22.7).
Under a literal reading of the statutes, every water company in the State was out of business on April 19, 1960, but, naturally, they did not actually close their doors. They continued to do business just as they had always done. Some water companies, anticipating the need, and complying with the statute, did file rate schedules with the commission. One such company was the Northern Michigan Water Company, a corporation supplying water to customers in Houghton and Keweenaw counties. It filed a rate schedule with the commission on January 6,1961.
The record is not clear on the corporate history of Northern Michigan Water Company. The record does tell us that there was a Northern Michigan Water Company which is now known as Superior Water Company. It also tells us that there is a Northern Michigan Water Company which was formerly known as Peninsular Water Company. The record further tells us that the former was predecessor to the latter. Therefore we shall designate the two Northerns as Northern-Superior and Northern-Peninsular.
The company which filed its rate schedule with the commission on January 6, 1961, was Northern-Superior. Northern-Superior did not then, or ever, own the water system known as the Mohawk Location, the rates of which are involved in this litigation. The rate schedule it filed on January 6, 1961, did not, therefore, apply to the Mohawk Location. There is nothing in the record to show that the commission approved or disapproved the rates filed by Northern-Superior on January 6, 1961. It is assumed that Northern-Superior proceeded to charge the rates shown in its filed schedule, even though they had not been approved as required by CL 1948, § 460.57 (Stat Ann § 22.7).
In the meantime, there was a water system in existence at Mohawk Location in Keweenaw county. This system apparently had been established in 1933 by a trust deed between the Mohawk Mining Company and certain named trustees. While it is claimed in the appellees’ brief, there is nothing in the record to show that the trustees of the Mohawk system ever filed a rate schedule with the commission.
On February 2, 1961, the commission issued its general order IT-489 requiring all water companies in Michigan to file with the commission schedules of rates they were charging as of April 19, 1960, the effective date of Act No 44. These filings were ordered to be made on or before April 1, 1961. G-eneral order U-489 did not contain any blanket approval by the commission of the April 19, 1960, water rates which it directed to be filed. It provided as follows:
“It is further ordered that the filings herein ordered shall be accepted for filing by the staff of this commission, subject to review and refiling if such filings are in conflict with the standards of service rules and regulations of this commission, when such standard of service rules and regulations are subsequently adopted by this commission.” (Emphasis supplied.)
Acceptance for filing by the commission staff is not tantamount to approval by the commission. Therefore, even compliance with general order IT-489 did not legitimatize the rates being charged by Michigan’s water companies. As a matter of fact, it is apparent that the commission specifically intended not to give its blanket approval to existing water rates. It intended to approve water rates on a piecemeal basis, leaving Michigan’s water companies in their hiatus of illegality, with no approved rates to charge.
Meanwhile, back at the Mohawk Location, Northern-Peninsular came upon the scene, and acquired the Mohawk system from its trustees on April 1, 1961. Upon acquisition, Northern-Peninsular established a new schedule of rates for customers of the Mohawk system. This new rate was the same rate being charged by Northern-Superior to its customers.
. At this point, the trustees of Mohawk were out of the picture. By the commission’s view, they had operated illegally from April 19, 1960, to April 1, 1961, having filed no rates, nor obtained commission approval of any rates. Still, they had avoided noncompliance with the commission’s general order TJ-489 by disposing of the system prior to the April 1st deadline.
Northern-Peninsular had the balance of the day within which to comply with general order U-489. Of course, Northern-Peninsular had not been operating Mohawk on April 19, 1960. Therefore, it was impossible for Northern-Peninsular to file with the commission “Three copies of each rate schedule effective on or before April 19, 1960.” Since the mere filing of a rate schedule without commission approval would not have made any schedule of rates legally operative, the failure of Northern-Peninsular to file its rates on April 1, 1961, did not make any difference.
In due course, on June 30, 1961, Northern-Peninsular purchased the water properties of Northern-Superior, and adopted as its rate of water charges the rates which Northern-Superior had been charging and had filed with the commission. These were the same rates which Northern-Peninsular had been charging at Mohawk since its acquisition thereof on April 1, 1961. At this point we can drop the distinction between Northern-Peninsular and Northern-Superior. All of the water properties and all of the filings and nonfilings are merged into the one company, Northern Michigan Water Company. We can call it “Northern.”
On December 29, 1961, Northern filed with the commission an application for approval of its April 1, 1961, Mohawk rates. On its face, the application appears to have been filed as a hedge against feared illegality. It disclaims commission jurisdiction in the setting of water rates, but prays that if the commission assumes jurisdiction, it approve m futuro the rates established at Mohawk.
After due notice and hearing, the commission on August 30,1962, made the following findings:
“A. Northern acquired the water distribution system at Mohawk Location, Keweenaw county, Michigan, on April 1,1961, and said system has been operated as, and is, part of Northern’s integrated water system.
“B. The water rates in effect at Mohawk Location prior to the acquisition of this system by Northern were lower than Northern’s standard water rates applicable to its integrated system.
“C. Charging customers at Mohawk Location a lower rate than that charged other customers for like service on other parts of Northern’s integrated water system would result in illegal discrimination,
“D. Northern’s application for authorization to apply it standard rate schedules applicable to its integrated system for service rendered to customers at the Mohawk Location should be approved as of the date of this order.
“E. Northern increased the rates for water service at Mohawk Location upon acquisition of that system on April 1,1961, without prior approval of this commission.
“F. Bates changed without prior commission approval are illegal rates and Northern should refund the difference between the amounts collected from customers at Mohawk Location, since its acquisition by Northern, and the amounts' properly computed on the rates in effect prior to the acquisition of this system by Northern.” (Emphasis supplied.)
and entered the following order:
“Therefore, it is ordered that:
“1. Northern Michigan Water Company shall apply its standard water rate schedules applicable to its integrated service area for service rendered to customers at Mohawk Location, Keweenaw county, Michigan, on and after the date of this order.
“2. Northern Michigan Water Company shall refund to its past and present customers at Mohawk Location, Keweenaw county, Michigan, the difference between (1) the charges actually collected for water service during the period April 1, 1961, to the date of this order, and (2) the proper charges for water service computed by applying the water rates in effect at Mohawk Location prior to Northern Michigan Water Company’s acquisition of the water distribution system at this location.
“3. The refund as ordered above shall be made either by check or by credit to the customer’s account on or before November 1,1962.
“4. On or before December 1, 1962, Northern Michigan Water Company shall file a statement, certified to by an officer of said company, to the effect that the refund as ordered above has been made.
“The commission specifically reserves jurisdiction of the matters herein contained and the authority to issue such further order or orders as the facts and circumstances may require.” (Emphasis supplied. )
Northern filed for a rehearing, which was denied. Undaunted, Northern filed its complaint in Ingham county circuit court on November 5, 1962, asking that court to set aside the commission’s order. The court granted Northern’s prayer on December 18, 1964. Equally undaunted, the commission claimed an appeal to the Court of Appeals on January 6, 1965. Division 2 of that Court reversed the circuit court, and reinstated the order of the commission by an opinion rendered January 24, 1967, and reported in 5 Mich App 635. Intrigued by it all, we granted leave to appeal on May 4, 1967. 379 Mich 761. Not to be outdone, our legislative brethren enacted PA 1967, No 19, given immediate effect on June 2,1967.
It provides among other things:
“Sec. 4. All water companies shall furnish reasonably adequate service and facilities. All rates and charges by water companies shall be just and reasonable, and every unjust or unreasonable rate or charge is prohibited and declared to be unlawful. The commission shall have power to make, alter, amend or abolish any rate or charge for any service, and may regulate by rules or orders any service or facility.
“Sec. 5. Within 60 days after the effective date of this act, all water companies which have not heretofore filed with the commission a schedule of rates and charges and rules relating to the rendering of water service shall file a schedule of rates and charges and rules, which shall be the rates and charges and rules in effect on the effective date of this act. Thereafter, no rates, charges or rules shall be changed by any water company without application to the commission, notice thereof to the municipalities affected by the change and approval of the commission. * * *
“Sec. 7. It shall be unlawful for any water company to make or give any preference or advantage to any person, copartnership, corporation or locality, or subject any person, copartnership, corporation or locality, to any prejudice or disadvantage in any respect whatever.
“See. 8. It shall be unlawful for any water company to directly or indirectly charge, demand, collect or receive a greater or less compensation for any service rendered, furnished or performed than that prescribed by and contained in its schedules on file with and approved by the commission.”
It further provides:
“Sec. 18. All rules and regulations and orders of the commission heretofore adopted or issued, relating to water companies or the business thereof, are ratified and confirmed.”
2. The Issues.
All parties now concede that the commission has the power to regulate water companies. The dispute here relates entirely to the refund which was ordered by the commission.
We do not address ourselves to the question of whether the commission has the power to order a refund in a proper case. Neither do we address ourselves to the effect of PA 1967, No 19, § 18, on these proceedings. If the rates involved were legal when charged, the act would be unconstitutional. If the rates involved were illegal at the time, section 18 would be unnecessary.
The only question in this lawsuit is whether the rates charged by the plaintiff at its Mohawk Location were legal or illegal during the period of April 1,1961, to August 30,1962.
3. The Precedents.
This case involves the question of the legality of rates charged by a company declared to be a public utility, where the statute declaring such company to be a public utility makes no provision for initial rates to be charged and provides no machinery for the approval of rates except prospectively.
Considering the issue in those terms, none of the cases cited by counsel are directly in point.
Michigan Bell Telephone Co. v. Public Service Commission (1946), 315 Mich 533, involves an at tempt to require refund of charges which were admittedly approved by the commission when made.
Jackson v. Consumers Power Company (1945), 312 Mich 437, involved a question of whether the utility could promulgate rates after its franchise-fixed rate obligations had expired.
Huron Cement Co. v. Public Service Commission (1958), 351 Mich 255, had to do with the commission’s authority to order a utility to serve a new area.
Gas company cases and railroad cases cited are not directly on the point. Munn v. Illinois (1877), 94 US 113 (24 L Ed 77), and other Federal cases cited in the briefs establish the general proposition, as claimed by the commission, that “The universal test as to the lawfulness of utility rates is that such rates he ‘just and reasonable.’ That is the common-law standard, and also the constitutional standard under the due process clauses of the Fifth and Fourteenth Amendments to the United States Constitution.” As noted before, this is the same standard contained in PA 1967, No 19.
4. The Reasoning.
The commission argues that where a public utility fails to file its rates, as required by law, the lawful rate is the rate in effect on the day that the obligation to file arose. No authorities are cited which sustain that broad conclusion in the context of the facts in the case at bar.
Here, water companies were declared to he public utilities on April 19, 1960. As of that date the obligation to file rate schedules arose. But that obligation could not have been complied with in the terms of the statute.
CL 1948, §460.57 (Stat Ann §22.7), provides:
“Schedules of rates in such form and in such detail as the commission may direct shall be filed.”
Admittedly, as of April 19, 1960, the commission had not directed the form and the detail of the filing it would require. It did not direct the form and detail of the required filing until it promulgated general order U-4-89 on February 2,1961.
Further, and more importantly, CL 1948, § 460.57 (Stat Arm § 22.7) does not say that rates charged but not filed with and approved by the commission are unlawful. It says,
“No such schedule shall be operative unless and until it has been approved by the commission.”
Clearly, every water company in the State which does not have in hand an order of the commission approving its schedule of rates does not have a schedule which is legally operative, but it does not follow that rates charged from a nonopferative schedule are illegal. The test of legality is still reasonableness. A schedule filed and made operative by commission approval is conclusive as to the reasonableness of the rates established therein, until changed prospectively after due proceedings taken; but rates charged where no schedule has ever been operative are legal if they are reasonable. PA 1960, No 44, did not declare, as did PA 1967, No 19, that rates in force on the date of the act were to be filed and charged until changed with commission approval.
There may have been many water companies which were charging unreasonable rates on April 19, 1960. Indeed the very fact that the act was passed would seem to indicate that such was the case. It is not to be presumed, indeed it would be a frustration of the statute to presume, that the legislature intended to clothe all April 19, 1960, water rates with the conclusive presumption of reasonableness and lawfulness which would follow upon fixing existing rates by law.
The legislature left the water companies free to fix their own rates at their peril, at least until such time as schedules were filed and rates were approved by the commission.
Here, the commission approved the plaintiff’s Mohawk rate as reasonable and lawful. That being the case, there was no basis upon which it could order a refund. As a matter of fact, the commission found that any other rate applied to Mohawk would be discriminatory and unlawful. By its own findings, the commission ordered an unlawful, discriminatory rebate.
But it is argued that unless prior filing and approval be required for legality, the utility which increases its rates without commission approval is in a better position than the utility which dutifully requests approval of an interim rate and files a bond conditioned on a refund in case the rate is not allowed.
The argument does not follow. Where existing rates have been filed and approved, they are conclusively reasonable, and any ex parte increase is conclusively unreasonable, unlawful, and refundable. But where existing rates have never been filed and approved, as in the case of a new industry added to the list of public utilities, then there is no presumption that existing rates are reasonable or unreasonable, and any such rates charged prior to commission approval are collected at the utilities’ peril, as they may later be found to have been unreasonable, unlawful, and subject to refund.
5. Conclusion.
For the edification of the water industry, we summarize as follows:
1. All private water companies became public utilities on April 19,1960.
2. Water rates, from and after April 19,1960, were required to be just and reasonable.
3. Any water rates charged after April 19, 1960, without prior filing and approval by the commission, if also unreasonable in amount, may, upon due notice and hearing, be found to have been unlawful, and overcharges ordered refunded by the commission.
4. Water charges, made pursuant to schedules filed with and approved by the commission, are conclusively presumed reasonable and lawful, may only be changed as provided by law, and are not refundable.
5. Water companies with less than 175 customers ceased to be public utilities on June 2,1967.
The judgment of the Court of Appeals is reversed. No costs, a public question being involved.
Dethmers, C. J., and Black and O’Hara, JJ., concurred with T. E. Brennan, J.
Kelly, T. M. Kavanagh, and Adams, JJ., concurred in result.
Amending CL 1948, § 460.6 (Stat Ann 1965 Cum Supp § 22.13 [6])-
MOLA §§ 486.551-486,571 CStat Ann 1968 Cum Supp §§ 22.1730 [1]-23,1730[21]). | [
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T. M. Kavanagh, J.
(for reversal). This case is here on appeal from a judgment of the Court of Appeals, which reversed the judgment of the trial court in favor of plaintiff. 6 Mich App 204.
Plaintiff filed a complaint in the circuit court of Genesee county seeking to recover for personal injuries suffered by its ward, Mary Ann Blaisdell, a slightly retarded 6-year-old child, while on defendants’ premises.
Defendants Payne agreed to care for Mary Ann and the other Blaisdell children while their mother and father visited another child in the hospital. De fendants drove the Blaisdell children to the Payne residence and the children of both families played together in and about the Payne house and yard. Mary Ann severed her Achilles’ tendon on some object in the yard. The next day a large, sharp piece of glass (the top of a fruit jar) was discovered iit the vicinity in which the injury occurred.
Trial of the matter was before the court without a jury and resulted in a $2,500 judgment in favor of plaintiff. The trial court’s opinion read in part as follows:
“The court will find the minor child has sustained personal injuries on October 18, 1963, and on the premises of the defendant at 2226 Lodge road. The court will also find that the plaintiff was invited upon the defendant’s premises by the defendant. The court should also find that the defendants owed a duty to this infant plaintiff to maintain the premises in a reasonably safe condition, and to prevent the existence of any situation which the defendants knew or should have known might result in injury.
“The court will also find that it is reasonably foreseeable that broken glass or a number of other objects in the area where the children play can be a hazardous condition.
“Prom the testimony and also from exhibits 3 and 4 the court will find the defendants were negligent in that they allowed a number of articles to remain in the area where the infant was playing, and the court should find for the record that the defendants’ negligence was the proximate cause of the injury involved.
“The plaintiff may have a judgment in the amount of $2,500, and may tax costs.” (Emphasis added.)
Defendants appealed to the Court of Appeals, making two assignments of error. The first assignment was that at the trial the plaintiff introduced discovery depositions of both defendants over an objection properly made. Defendants assert that these depositions should not have been admitted, since the defendants were present in court.
The second question raised can best be stated in two parts:
(Í) What duty did the defendants owe the plaintiffs ward?
(2) Does the record contain evidence which would support the finding that this duty was breached?
The Court of Appeals found the use of the depositions was proper. It found there was no evidence which would support a finding that a duty was breached since the record fails to show what caused the injury. The Court of Appeals reasoned that fact-finders may not indulge in conjecture and that the fact that an accident occurred did not establish negligence, and concluded that the record contained nothing that did establish negligence. That court then reversed the judgment of the trial court. Plaintiff is here on leave granted June 8, 1967. 379 Mich 766.
In Baith v. Knapp-Stiles, Inc. (1968), 380 Mich 119, 125, 126, this Court stated:
“We have repeatedly held in law cases tried without a jury, that the trial judge may give such weight to the testimony as in his opinion he feels it should receive. In McCarty v. Mercury Metalcraft Company (1964), 372 Mich 567, 577, we said:
“ ‘This Court, in reviewing controverted issues of fact in a law case tried without a jury, does not consider the case de novo as if it were in equity. Schneider v. Pomerville, 348 Mich 49.’
“In such cases we do not reverse unless the judgment is against the clear preponderance of the evidence. Allen v. Kroger Grocery & Baking Co. (1944), 310 Mich 134; Marquette Lumber Co. v. Burke (1944), 308 Mich 698; Stevenson v. Brotherhoods Mutual Benefit (1945), 312 Mich 81; George Wagschal Associates, Inc., v. West (1961), 362 Mich 676; Liberty Mutual Insurance Company v. City of Bay City (1962), 367 Mich 8; Siller v. Laitila (1963), 370 Mich 373; Lud v. Sams (1963), 371 Mich 680; Insurance Company of North America v. Schuneman (1964), 373 Mich 394.
“These rules apply equally to the Court of Appeals.”
Therefore, the first question before this Court is whether a judgment in favor of the guardian of a 6-year-old child, who severed her Achilles’ tendon while on defendants’ premises, is against the clear preponderance of the evidence as a matter of law. The record discloses that the area of defendants’ premises where the plaintiff’s ward received her injury contained: a glass bottle top with other pieces missing, a broken lamp, cinder blocks, swings, a roller coaster track, old torn-out metal steps, a storm window, bicycles, tin tubs, watering hose, a dilapidated doghouse.
The record further discloses that defendant Carroll Payne took the 6-year-old child to the hospital, and that the hospital “emergency case record” stated the infant “cut left heel on glass” at the home of a friend. The location of the glass, as testified to by defendant Margaret Payne, and the place where the child was playing when injured, as testified to by defendant Carroll Payne, were in the same area. The record shows the 6-year-old child was slightly mentally retarded, and that defendants had complete control and supervision of her at the time of the accident. The child testified, “They came over to our house and took us there, and then I got cut. I went out doors and got cut.” The trial court observed the scar on the injured child’s leg. Plaintiff’s exhibits 1 through 4, showing the condition of the premises, disclose “the jungle” in which the child was permitted to play. Exhibit 3 is reproduced here, See Kroll v. Katz (1964), 374 Mich. 364, involving a somewhat similar nse of a picture.
(The arrow was added by the Court and designates the place where the child was injured.)
We must, hold, as did Justice Black in Barnes v. Beck (1957), 348 Mich 286, 292, that this record discloses arguable testimony and inference supporting and opposing the trial judge’s findings as outlined. We are consequently obligated to rule that the judgment entered on such findings passes muster against challenge.
The weight given to and inferences to be drawn from the exhibits and the testimony are for the judge in a law case tried without a jury. We do not reverse unless we find the trial court’s decision is against the preponderance of the evidence. Neither can the Court of Appeals.
In the instant case we cannot say the judgment of the trial court was against the clear preponder anee of the evidence. The Court of Appeals invaded the function of the trial court as a fact-finder. In so doing, it committed error.
The question dealing with the admission of the depositions of the defendants, even though they were present in court, was correctly decided by both the trial court and the Court of Appeals. Ruhala, v. Roby (1967), 379 Mich 102.
We do not pass upon the liability of the defendant Margaret Payne by reason of the tenancy by the entireties ownership of the property, since the issue was not raised in either the Court of Appeals or this Court.
The order of the Court of Appeals should be reversed and the case should be remanded to the trial court for re-entry of its judgment. Costs to plaintiff.
Black, J.
(for reversal). I think this case is governed by Restatement’s view of the duty owing by the possessor of land to “young” children, no matter the status of the latter as invitees, licensees, or trespassers. For the case of a youngster of tender years, even though he is a technical trespasser (which all agree is not the case here), Restatement declares (Restatement, Torts, Negligence, § 339, p 920):
“A possessor of land is subject to liability for bodily harm to young children trespassing thereon caused by a structure or other artificial condition which he maintains upon the land, if
“(a) the place where the condition is maintained is one upon which the possessor knows or should know that such children are likely to trespass, and
“(b) the condition is one of which the possessor knows or should know and which he realizes or should realize as involving an unreasonable risk of death or serious bodily harm to such children, and
“(c) the children because of their youth do not discover the condition or realize the risk involved in intermeddling in it or in coming within the area made dangerous by it, and
“(d) the utility to the possessor of maintaining the condition is slight as compared to the risk to young children involved therein.”
The fact is that the legal status of this infant plaintiff, said by the trial judge (and tacitly echoed by Division 2, 6 Mich App 204, 208, 209) to be that of an invitee, is neither controlling nor relevant. Whether one or the other, defendants owed the child that common-law duty, demonstrated well by quoted section 339, which was commensurate with all of the circumstances shown in evidence including the nature of the cause of her injury and the little girl’s presumptive inability to fully comprehend and hence protect herself from what actually happened. She was both of tender years and “slightly mentally retarded” (quotation taken from hospital record), and it is permissibly inferable that defendants knew all about this prior to the date of injury. She, with her parents and brothers and sisters, had visited several times at the home of defendants. The latter, for the time being on the date of injury, had undertaken whatever responsibility the common law exacted for her well being, if in fact there was any such exaction.
Since original section 339 was adopted and promulgated by the American Law Institute that section has been broadened beyond “young” children. 2 Restatement Torts (Second), Appendix (1966), advises under § 339 at p 129:
“This section has been changed from the first Restatement in the following respects:
“1. By eliminating the limitation to ‘young’ children. There seems now to be general agreement that the age of the child is important only as it bears on whether he does, and can be expected to, realize the risk. There are now a considerable number of decisions in which the rule stated has been applied to children over the age of 13 years(Here follow some 4 pages of recent citations).
We need not, of course, go that far for the purposes of this Blaisdell Case. Here we have a 6-year-old child, retarded to some extent and known to be so by defendants. That knowledge increased the degree of care defendants owed to the plaintiff youngster and that degree was measurable only by the fact-finder, not law-finders.
Even as to a trespassing child, this point was made precise in the annotated case of Doren v. Northwestern Baptist Hospital Association, 240 Minn 181, 190 (60 NW2d 361, 42 ALR2d 921, 929):
“5. Defendants contend that the trial court erred in failing to instruct the jury that Joel Doren ‘when he came within the fenced in portion of defendants’ property on said date, was a trespasser on the property of the defendant, but inasmuch as Joel Doren was a minor of tender years, the defendant owed to Joel Doren the duty of exercising ordinary care * * # j
“Under the conditions set forth in Restatement, Torts, § 339, upon which liability attaches in cases of this kind, it is immaterial that the child involved was a trespasser. As stated in Gimmestad v. Rose Brothers Co., Inc., 194 Minn 531, 537 (261 NW 194, 196). * * *
“ ‘They [the children] are trespassers, but, because of their tender years and the consequent lack of perception and responsibility, liability results notwithstanding the trespass.’ ”
Not long after Doren was written this Court ascertained the rights of a 7-year-old boy whose sight of an eye was lost by a driven golf ball (Lyshak v. City of Detroit, 351 Mich 230). There I endorsed one of the three opinions which upheld a verdict for the child. The conclusion of that opinion, wherein 3 of us assumed, without deciding, that the child was a technical trespasser, would apply without question to 6-year-old Mary Ann Blaisdell while she was on the premises of the defendants and in direct nearby view of one of them. The conclusion (Lyshah at 251):
“Upon these facts, infant plaintiff, even if a trespasser, was a known trespasser. It was not merely to be anticipated that he might be there, along with other children. He was there, he was seen, his presence was actually known to the golf professional assigned to the course, Dalrymple, and what Dalrymple knew as to golf course activities, both of his joint principals knew. Under these circumstances the rule of Herrick v. Wixom, 121 Mich 384, 388 (6 Am Neg Rep 576), is applicable :
“ ‘Where a trespasser is discovered upon the premises by the owner or occupant, he is not beyond the pale of the law, and any negligence resulting in injury will render the person guilty of negligence liable to respond in damages.’ ”
So here. Mary Ann, not a trespasser, was legally on the premises of the defendants. She was there temporarily in the care of the defendants. Whether they maintained the photographed portion of the sideyard of their home in such condition as reasonable prudence might dictate, with a 6-year-old not used to the area and its condition turned out to play there, was an obvious question for the trier of facts if, as we have been taught for a long time now (Detroit & Milwaukee R. Co. v. Van Steinburg, 17 Mich 99, 118):
“As a general rule, it cannot be doubted that the question of negligence is a question of fact and not of law [citing numerous cases].”
The Missouri case of Wells v. Henry W. Kuhs Realty Co., 269 SW2d 761 was annotated, 47 ALR2d 1048, under the heading “Liability of landowner for injury or death of child caused by cut or puncture from broken glass or other sharp object.” There the plaintiffs’ complaint was dismissed for failure to state a claim upon which relief could be granted. The decedent, 11 years old, was fatally injured by falling on broken glass in defendant’s “hard-by” refuse dump. On appeal counsel for the plaintiffs, admitting that the decedent was not an invitee, insisted successfully that “there are several exceptions to the general rule of nonliability of an owner of land to a trespasser or licensee.” The Missouri supreme court, reversing for trial, concluded as follows (p 768):
“In our case, accepting the averments of the petition as true, defendant was maintaining a dump on which it permitted the placing of glass bottles, jars and jugs, ‘broken and otherwise.’ Aside from the ordinance such refuse could be reasonably considered as dangerous. The dump was in close proximity to a public alley passing through defendant’s tract in a thickly populated urban area. Children of the neighborhood habitually resorted to the public alley and to other lanes on defendant’s tract of land, and to the western unimproved portion of defendant’s land, for play. Of this defendant had knowledge. There was no sign signaling the presence of the dump containing the broken glass with which plaintiffs’ son came in contact and upon which his body was impaled. And the margin or demarcation between the alley and the adjacent ‘island’ was obscured by dirt and debris washed down by the elements and pulled down by defendant from time to time in previous removals of trash and debris from its dump which, as alleged, was close to the public alley across defendant’s land; and the margin was further obscured by weeds which defendant had permitted to grow, uncut. Here plaintiffs’ son while engaged in play inadvertently strayed a few steps onto the ‘island’ and was caused to slip and fall, his body coming into contact with broken glass on defendant’s dump.”
If this reasoning was right for Wells, it is doubly so for Mary Ann’s case. She was 5 years younger than the Wells boy and was left for the while to defendants’ care, on their premises. As for the annotation proper, the annotator advises under “§ 2. Liability of private landowner” (pp 1049, 1050):
“The number of cases involving the liability of a landowner for injury or death of a child who was cut or punctured by broken glass or some other sharp object is low, so that all the cases dealing with the liability of a private landowner have been treated together in this section, without any attempt to separate them on the basis of factual or legal distinctions. All the cases involve actions based on negligence, with its concomitant aspects of duty of care, proximate cause and contributory negligence. The main factual variation among the cases is in regard to the location of the broken glass or other sharp object, that is, whether it was lying on a vacant lot or a dump, or on the floor of a building, which was the situation in one case.
“Under such varying circumstances, the courts in some cases have reached decisions supporting the liability of the landowner.”
To summarise: It appears to this writer that the distinctive facts of Mary Ann’s case render wholly' inane this hypertechnical argument that she was and she wasn’t an invitee of the defendants. See the thoughtful examination Harper and James, and Prosser, have made of this subject of duty on the part of owners and occupiers of land to invitees, licensees and trespassers, particularly young children. 2 Harper & James, Torts, ch 27; Prosser, Torts (2d ed), ch 15, § 76, p 440. To Mary Ann the common-law duty of ordinary care under all of the circumstances known to defendants, and shown in evidence, was owing. The identity and ascertainment of that duty, and the question whether it was actionably breached by the defendants, were for the fact-trier, not for one of our matter-of-law pigeonholes labeled “invitee” or “licensee.” This is the case of an infant, not that of an adult or a presumptively knowledgeable teen-ager.
I would reverse for reinstatement of the judgment of the circuit court, awarding plaintiff costs of both appellate courts.
Souris and Adams, JJ., concurred with Black, J.
Kelly, J.
(for affirmance). Concurring in affirmance of the Court of Appeals’ decision, I quote therefrom as follows:
“The record fails to show what caused the injury. Prom the evidence that glass was found in the area where she had played after the child was cut, it is tempting to conjecture that the glass caused the cut. But fact-finders, be they jury or court, may not indulge in conjecture. See Kaminski v. Grand Trunk W. R. Co. (1956), 347 Mich 417. They are constrained to draw reasonable inferences from established facts. Reasoning ‘post hoc ergo propter hoc’ does not meet this test.
“Also we are shown no evidence that the defendants failed to do something they should have done. What they should have done is settled. They should have used ordinary care to make the premises reasonably safe for their visitor. Wherein did they fail? The fact of the injury does not establish negligence. Kroll v. Katz [(1965), 374 Mich 364], The record contains nothing that does.” Genesee Merchants Bank & Trust Company v. Payne, 6 Mich App 204, 209, 210.
Dethmers, C. J., and O’Hara, and T. E. Brennan, JJ., concurred with Kelly, J.
The causative fact of injury was established sufficiently by the emergency record made at the hospital. It reads that the child “cut left heel on glass” at defendants’ home. Since defendant Carroll Payne took Mary Ann to the hospital for emergency treatment, it is fairly inferable that the foregoing record was made upon his report.
Numerous authorities were cited, in Serriolc, which amply support this proposition. | [
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Souris, J.
(for reversal and remand). We granted leave to appeal for the limited purpose of determining whether the trial court erred in denying plaintiff’s motion for new trial based upon allegations that a juror improperly associated with defendant and his counsel immediately after verdict favorable to defendant and that the same juror falsely answered his personal history questionnaire required by GCR 1963, 510. 379 Mich 765. The Court of Appeals affirmed the trial court. 6 Mich App 153.
At an evidentiary hearing on plaintiff’s motion for new trial, witnesses testified that within about an hour after return of the jury’s verdict, the defendant tavern owner and one of the jurors entered the defendant’s tavern, where they were joined soon thereafter by defendant’s trial counsel and several members of counsel’s law firm. At least some of the group, including the juror] were served beverages. None of the witnesses heard any of the conversation of the group of which the juror was a part.
The juror, the defendant, and the defendant’s lawyers were not called by plaintiff to testify at the hearing on his motion, nor did they testify voluntarily. No other proofs were offered from which it could be found that the juror was known by the defendant or his attorneys before the trial or that, they had com lmmicated about the caso privately before or during the trial. In short, this record is barren of any evidence that the plaintiff was prejudiced by the conduct of defendant, his attorneys, and the juror. The question becomes whether, absent a showing of prejudice, a new trial should have been granted because defendant and his attorneys fraternized with a juror immediately after a verdict was rendered favorable to defendant.
Just recently, in People v. Schram (1966), 378 Mich 145, where the assistant prosecutor, during the trial of a criminal case, conversed with two jurors, a majority of this Court refused relief to the defendant absent a showing of prejudice to him. Other criminal cases were cited by our majority in Schram in support of its conclusion. If prejudice must be shown affirmatively, even in a criminal case and even when the alleged misconduct occurred during trial, no less is required in a civil case in which the alleged misconduct occurred after verdict. Indeed, in Hoskin-Morainville Paper Co. v. Bates Valve Bag Corp. (1934), 268 Mich 443, this Court, unanimously, said so. A majority of this Court is not prepared to overrule Hosldn and Schram, and the other criminal cases cited in Schram. Accordingly, plaintiff’s appeal on this ground must fail.
At the hearing on the plaintiff’s motion for new trial, evidence was introduced to support plaintiff’s claim that the same juror answered the juror personal history questionnaire, required by GrCR 1963, 510, untruthfully in several respects. For example, he wrote on the questionnaire that he never had been convicted of a crime or misdemeanor other than for a nonmoving traffic violation. However, plaintiff’s evidence showed that the juror had been convicted for moving traffic violations at least nine times from 1953 through 1963. Again, with reference to this aspect of the inquiry before the trial court, the juror was not called to testify by either party. On this record, therefore, and for the purpose of this decision only, we must conclude that the juror perjured himself in answering as he did his juror’s questionnaire.
We have held that a party is entitled to truthful answers from a prospective juror during his voir dire examination. Wood v. Henley (1941), 296 Mich 491, 497, and In re Petition of City of Detroit to Condemn Lands for Sewage Disposal Plant (1937), 280 Mich 708, 716. In Wood, supra, a juror failed to disclose an indebtedness to the plaintiffs. When plaintiffs discovered this fact, during trial, their motion for mistrial based thereon was denied on the ground that plaintiffs had every opportunity to know the facts before trial commenced and, in any event, mere indebtedness to a party, it was said, does not disqualify a juror. Wood, however, does acknowledge the general proposition that litigants are entitled to truthful answers on voir dire. No reason has been suggested to us for reaching a contrary conclusion with reference to the juror’s questionnaire required by our court rules only since January 1, 1963.
In this case, unlike Wood, supra, the juror’s false answer was not such that either litigant could have known the facts except fortuitously. Furthermore, had the question been answered truthfully, it is much more likely than not that further inquiry would have been made by either counsel or by both at the voir dire examination. As has been said before, a litigant’s right to trial before an impartial jury (Const 1963, art 1, § 14) requires that he be given an opportunity to obtain the information necessary to challenge prospective jurors for cause or peremptorily. Bunda v. Hardwick (1965), 376 Mich 640 (dissenting opinion).
A false answer on a juror’s questionnaire, such as was given here, diverts counsel’s inquiry on voir dire and thereby precludes his effective exercise of his client’s right to challenge the juror. If we are to insist upon counsel’s use of the questionnaire to facilitate and expedite voir dire examinations (see Fosness v. Panagos [1966], 376 Mich 485), we must be prepared to assure counsel that the questionnaires are reliable in every material respect and, if they are not, we should be prepared to order a new trial as well as to cite the errant juror for contempt of court. The trial court, as far as this record shows, did neither in this case.
I would reverse and remand for new trial. Plaintiff should be allowed to tax his costs.
Black, T. M. Kavanagh, and O’Hara, JJ., concurred with Souris, J.
Kelly, J.
(for affirmance). I do not agree with Justice Souris’ reversal and remand for new trial. I vote to affirm.
Juror Ruff us Thomas’ answers on the form entitled “Juror Personal History Questionnaire” disclosed that he had been a resident of Saginaw county for 18 years; that he was 43 years old, married, and lived at home with his 7 children between the ages of II and 4; that he was employed at the Saginaw Malleable Iron Works as a “chiper”; that he had previously been employed as a barber; that he only had a seventh-grade education; that he owned a car in surecl with “Penis Insurance Co.”; that he had been in an accident and that his wife had also been in an accident; that he had never served as a juror before filling out the questionnaire.
During the course of the trial, juror Ruffus Thomas asked the court to be excused from jury duty because of his sister’s death and his father’s involvement in a serious automobile accident. A conference with the attorneys was held in the judge’s chambers, and the court suggested that juror Thomas be released from further duty and the case be allowed to proceed to a verdict by 10 of 11 jurors. Defendant’s counsel agreed, but plaintiff’s counsel would not, and insisted that Thomas remain on the jury. The court thereupon adjourned the trial to allow juror Thomas to make a trip to Tennessee.
This was an action against Charles B. Peters, doing business as Peter’s Bar, under the civil damages provision of the so-called “dramshop act.” The sole question for jury determination was whether or not the defendant, Charles B. Peters, or his agents, servants, or employees, served alcoholic beverages to one Harvey Krause so as to cause or contribute to his intoxication.
The July 13, 1965, entry in the “Docket Entries” in this case is as follows:
“Verdict of jury (4:10 p.m.). No cause for action. Jury was polled, 11 jurors affirming and 1 juror dissenting. Jury excused from further deliberations in this cause. Motion by plaintiff for 20-day stay of execution granted by the court.”
No proof has been submitted to this Court as to how juror Ruffus Thomas voted. Conceding that he voted against plaintiff’s claim, the record shows that there still would be 10 jurors voting “No cause of action,” in addition to Thomas. And 10 jurors agreeing upon a verdict is sufficient to sustain the verdict.
We quote from the decision of the Court of Appeals affirming the judgment, 6 Mich App 153, 161, 162:
“Plaintiff does not argue that he would have challenged the juror in question had the erroneous responses been revealed prior to trial.
“It is interesting to note that the juror was limited to a seventh grade education and that he was not called to explain the discrepancies in the questionnaire. In answering the questionnaire he stated that he had insurance and listed the company as ‘Fénix Insurance Company.’ The problem remains: Did the juror misspell the company name or, as plaintiff implies, was he uninsured? Plaintiff has neglected to inform us and evidently has not attempted to ascertain this information. The juror admitted he had been involved in an automobile accident and that his wife had been involved in an accident. Surely these are pertinent answers calling for additional exploration by counsel. However, counsel did not pursue this leading information. It can also he observed that the juror originally answered question 43 on the questionnaire, which was: ‘Have you ever been convicted of a crime or misdemeanor (other than for a nonmoving traffic violation) ?’ with a ‘Yes’ answer. This was erased and answered, ‘No.’
“There may be an explanation for these discrepancies, but evidently counsel was not interested in an explanation but only in creating error. Plaintiff has not convinced this Court that he was unduly preju diced by juror Thomas’ answers to the jury questionnaire.”
Nothing in this record even suggests that juror Ruffus Thomas’ answers to the questionnaire influenced the members of the jury in rendering a verdict, and there is a total absence of proof that those faulty answers resulted in a miscarriage of justice.
We have never in the past and should not now hold that proof that one juror gave inaccurate or untrue answers on the questionnaire nullifies a jury verdict and calls for a new trial.
Affirmed. Costs to appellee.
Dethmers, C. J., and T. E. Brennan, J., concurred with Kelly, J.
Adams, J.
(for affirmance). I agree with Justice Souris that the courts should see to it that the questionnaires answered by jurors are reliable and truthful in every material respect. A juror who has given untruthful answers should he cited for contempt and duly punished if found guilty. On the other hand, the parties to a lawsuit ought not to he subjected to a new trial unless the false answers are shown to he such that counsel was misled and that the result might have been affected. In this case I agree with Justice Kelly that there is “a total absence of proof that those faulty answers resulted in a miscarriage of justice.” I, therefore, vote to affirm the Court of Appeals, with costs to appellee.
T. E. Brennan, J., concurred with Adams, J.
People v. Kangas (1962), 366 Mich 201; People v. Nick (1960), 360 Mich 219; People v. Pizzino (1945), 313 Mich 97, and People v. Whittemore (1925), 230 Mich 435.
Other evidence tends to support plaintiff’s claims that the juror answered other questions falsely, but we need not advert to these other claims, considering that they are cumulative and that the evidence supporting them is not as certain as is the evidence of the juror’s moving traffic convictions.
CLS 1963, § 436.22 (Stat Ann 3968 Cum Supp § 18.993).
Const 1963, art 1, § 14: “The right of trial by jury shall remain, but shall be waived in all civil cases unless demanded by one of the parties in the manner prescribed by law. In all civil eases tried by 12 jurors a verdiet shall be received when 10 jurors agree.”
PA 1963 (2d Ex Sess), No 17, added section 1238 to the revised judicature act, as follows: “In all civil eases tried after January 1, 1964 by 12 jurors, a verdict shall be received when 10 jurors agree.” (MOLA § 600.1238 [Stat Ann 1968 Cum Supp §27A,1238]). | [
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Dethmers, J.
On August 5, 1963, plaintiff was arrested and arraigned on a warrant charging him with murder in the first degree. From that date to July 18, 1964, a period of 11 months and 13 days, he was held in county jail without bail awaiting final disposition of his case. On the latter date he was sentenced in the Recorder’s Court to serve a term of 10 to 15 years in state prison, after having entered a plea of guilty, just 15 days earlier, to a charge of second-degree murder. The record does not disclose whether the time spent in the county jail prior to sentence was taken into consideration in determining the length of sentence imposed.
One year and eight months after sentence, to wit, on March 31,1966, PA 1965, No 73 (MCLA § 769.11b [Stat Ann 1970 Cum Supp § 28.1083(2)]), went into effect. It provides as follows:
“Whenever any person is hereafter convicted of any crime within this state and has served any time in jail prior to sentencing because of being denied or unable to furnish bond for the offense of which he is convicted, the trial court in imposing-sentence shall specifically grant credit against the sentence for such time served in jail prior to sentencing.”
By its language, the act is specifically made prospective only.
On March 27,1968, a judge of the Recorder’s Court acknowledged a recent motion by plaintiff to credit on his sentence and subtract from it the 11 months and 13 days spent in county jail, and denied it for the stated reason that the act did not go into effect until long after the date of sentence and was, therefore, inapplicable to this case.
Plaintiff filed a complaint with the Court of Appeals for superintending control to require the Recorder’s Court to comply with his request for presentenee time credit. The Court of Appeals denied the complaint and petition. The case is now here on leave granted to appeal from the denial.
Acknowledging that the statute in question reads prospectively only and went into effect after imposition of sentence upon him, plaintiff contends that denial of his petition for presentence time credit under such interpretation of the statute renders it violative of the equal protection of the laws guarantees of the state and Federal Constitutions.
Plaintiff admits that he has found only two decisions in this nation on the precise question raised hy him and that they both hold adverse to his position. The cases are: State v. Sedillo (1968), 79 NM 255 (442 P2d 213), and State v. Thomas (1968), 79 NM 346 (443 P2d 516). See, also, State v. Dalrymple (1968), 79 NM 670 (448 P2d 182), and cases therein cited. In substance, the New Mexico court held, on this subject, that since the decisions of the United States Supreme Court have denied retroactive application to such basic constitutional rights as those enunciated in Escobedo v. Illinois (1964), 378 US 478 (84 S Ct 1758, 12 L Ed 2d 977), Miranda v. Arizona (1966), 384 US 436 (86 S Ct 1602, 16 L Ed 2d 694, 10 ALR3d 974), and Johnson v. New Jersey (1966), 384 US 719 (86 S Ct 1772, 16 L Ed 2d 882), there can be no merit to a claim that the denial of retroactive application to a newly created statutory right is a denial of equal protection of the laws. We agree.
When sentence was imposed upon plaintiff on July 18, 1964, it was a perfectly legal sentence in keeping with the statutory limits for the crime of which plaintiff was convicted. Had the legislature later seen fit to amend the statute to fix the punishment for second-degree murder to be a term of not less than 5 nor more than 10 years in prison, would that have operated then to render plaintiffs previous sentence of 10 to 15 years invalid and entitled him to a new term in keeping with the limits of the amendment? By no means. Neither can the subsequent enactment here alter the earlier sentence.
Court of Appeals and Recorder’s Court affirmed.
T. E. Brennan, C. J., and Kelly and Black, JJ. concurred with Dethmers, J.
Const 1963, art 1, § 2; US Const, Am 14.
CL 1948, § 750.317 (Stat Ann 1954 Rev § 28.549): “Life, or any term of years.” | [
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Dethmers, C. J.
This is an appeal, on leave granted, from Court of Appeals’ denial of mandamus to compel defendant circuit judge to grant plaintiff a trial de novo in circuit court on the charge of which she was convicted in the recorder’s court of the city of Detroit, traffic and ordinance division, of violating a city of Detroit ordinance prohibiting maintenance of a public nuisance.
After the recorder’s court conviction plaintiff sought to appeal to the circuit court by tendering to the recorder’s court clerk an appeal fee and attempting to file an appeal bond and claim of appeal. These were refused by the clerk. Plaintiff petitioned for a writ of superintending control in the nature of mandamus in the Wayne county circuit court against the convicting recorder’s court judge to compel him to accept the claim of appeal and certify the files and records to the circuit court for a trial de novo. Defendant circuit judge denied the writ. As above stated, on plaintiff’s application to the Court of Appeals for mandamus to compel defendant circuit judge to grant plaintiff a trial de novo of her conviction, the Court of Appeals denied the writ.
The circuit court and Court of Appeals denied plaintiff the relief sought on the ground that the appeal was not properly brought in the circuit court for trial de novo, hut could be taken only as a general appeal, on the record, in the Court of Appeals. We think those decisions correct.
Plaintiff claims that Michigan Const 1963, art 1, § 20, guaranteeing, in every criminal prosecution, an appeal as a matter of right, applies to this conviction of city ordinance violation. Defendant concedes it. Although opinions of this Court in previous appeals from ordinance violation convictions may he thought to differ as to whether or not such violations are crimes, we do not deem it necessary, as plaintiff urges, to enter into an extended discussion of the question here. We are satisfied that the article 1, § 20, guarantee of an appeal as of right extends to and includes a conviction of city ordinance violation as here involved.
What is the nature of such appeal as of right and to which court may or shall it be taken? Both parties cite City of Detroit v. Wayne Circuit Judge (1925), 233 Mich 356. There it was held that:
“The legislature has the constitutional right to create any court and to vest it with whatever jurisdiction it pleases, provided only that it shall be inferior to the Supreme Court.”
Further, the following :
“In creating the recorder’s court for the city of Detroit * * * in. cases involving the violation of city ordinances it has not been given jurisdiction of equal character to that of the circuit court, and is therefore an inferior court, whose proceedings the circuit court may review by the writ of certiorari.”
Implementing Michigan Const 1963, art 6, § 8, providing for a Court of Appeals, and section 10, providing that its jurisdiction shall be provided by law, PA 1961, No 236, § 308, as added by PA 1964, No 281, § 308 (MCLA § 600.308, Stat Ann 1968 Cum Supp § 27A.308), provides that the Court of Appeals has jurisdiction over appeals from “All final judgments from the recorder’s court.”
There is no statute which provides that appeals from recorder’s court traffic and ordinance division convictions for ordinance violations shall be (1) to circuit court or (2) conducted as a trial de novo. Having held in City of Detroit v. Wayne Circuit Judge, supra, that the legislature may create a court and fix its jurisdiction and the legislature having done so in terms above quoted, it follows that the appeal is properly to the Court of Appeals. In that same case, while holding that the appeals from recorder’s court convictions for ordinance violations should be to circuit court, as was the case before creation of the Court of Appeals, it was also held that that review should be by certiorari. No comfort is to be found in that case for plaintiff’s contention for right to a trial de novo.
Plaintiff argues, however, that by the Constitution of 1963 the writ of certiorari is abolished and replaced by discretionary writ of superintending control; that because the new Constitution grants appeal as of right and the mentioned writ is dis cretionary with, the court, therefore, the constitutionally intended appeal as of right could not have been of the character of that discretionary writ but is absolute and, therefore, the constitutional language must be read to mean that the appeal of right is a right of trial de novo in circuit court. With that we do not agree.
The appeal to the Court of Appeals, granted by statute, is, as that court held in this case, an appeal as of right and thus meets all the requirements of the Constitution in that respect. The provisions of GrCR 1963, 701.10, that review in circuit court shall, unless otherwise provided by law, be by trial de novo, is of no avail to plaintiff here inasmuch as it is, as previously noted, otherwise provided by law.
Plaintiff points to the fact that persons convicted of ordinance violations in Wayne county but outside of the city of Detroit, in a justice of the peace or municipal court, may take an appeal to circuit court for a hearing de novo. If that is denied to persons violating an ordinance in the city of Detroit and convicted thereof in that city’s recorder’s court, then such persons, says plaintiff, are denied the equal protection of the laws guaranteed by Michigan Constitution of 1963, art 1, § 2, and Federal Constitution, Am 14, § 1. We consider as authority to the contrary Sullivan v. Haug (1890), 82 Mich 548; Missouri v. Lewis (1879), 101 US 22 (25 L Ed 989); and Bailey v. United States (1938), 69 US App DC 25 (98 F2d 306). While the Michigan Constitution in effect when Sullivan was decided (1890) did not contain an equal protection of the laws clause as does the Michigan Constitution of 1963, the 14th Amendment to the Federal Constitution was then in effect and it was its equal protection clause that this Court there considered. Plaintiff says that the Lewis and Bailey Gases are not in point because both are civil, not criminal, cases. As for the Bailey Case, plaintiff is wrong. It was a criminal case. If Lewis be considered civil, let it he said we know of no reason for applying a different rule, in this connection, to criminal than to civil cases. Nor is there any reason why the mentioned holdings with respect to the equal protection clause of the 14th Amendment are not equally applicable to that clause in the Michigan Constitution of 1963.
Court of Appeals affirmed.
Kelly, O’Hara, Adams, and T. E. Brennan, JJ., concurred with Dethmers, C. J.
Black and T. M. Kavanagh, JJ., concurred in result.
See Detroit Ordinances 39-1-40. 39-1-42.—Reporter. | [
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T. E. Brennan, J.
In this automobile negligence case, plaintiffs recovered a verdict in the amount of $12,500, and defendant Cab Company sought judgment notwithstanding the verdict or a new trial, both of which were denied. On appeal, the Court of Appeals- reversed and remanded for a new trial on the ground that the trial judge had improperly restricted defendant’s cross-examination of plaintiff. The pertinent portion of the trial transcript is as follows:
“Q. Now, when you entered the hospital, you were asked a number of questions by the personnel of the hospital, were you not?
“A. Yes, yes.
“Q. And in answer to the questions, did you explain to the hospital attendants that you had suf fered from chronic hack pains ever since yon were a child, and that this pain radiated np and down your spine?
“Mr. Abram: All right. Okay, yonr Honor. I am going to ask that the jury he excused. I’m sorry.
“The Court: Ladies and gentlemen, I think it’s about time for a recess anyhow. Remember, don’t talk about the case amongst yourselves or anyone. We haven’t heard all the evidence yet. So take a short recess, please.
“ (Whereupon the jury retired to its quarters, and the following proceedings were held outside its presence and hearing.)
“Mr. Abram: Your Honor, at this time, and despite the efforts and time that we have spent on this case, I’m going to move for a mistrial. I’m going to move for a mistrial for this reason: Mr. Fisher has a record there that he’s been trying to get into the evidence, and improperly, during this whole trial. Dr. Gfutow was on the stand and he asked Dr. Gfutow if he made an entry — if he ever entered that. He said no. He could have shown it to him and then he could have explained it. He didn’t do it. Now Mr. Fisher picks that record up and is reading from it like it was in evidence in front of the jury. I think that is improper evidence. The jury thinks it’s part of the evidence.
“The Court: No, they don’t, Mr. Abram. I can understand, and I do.
“And, Mr. Fisher, I am really surprised at you. Throughout this whole trial you have been pulling some grandstand plays. You have been in every way attempting to put in things where I have repeatedly told you not to.
“However, this is the fourth day of the trial, and I’m going to take your motion under advisement.
“Mr Abram: Thank you.
“The Court: I think this is a terrible, terrible waste of the jury’s time, of the lawyer’s time and of this Court’s to not permit this to go to the jury.
“But, Mr. Fisher, this is the last time, and the last time that I intend to permit you to do what you have been doing.
“Mr. Fisher: If the Court please, I submit that this is cross-examination and I contend it’s proper. I have asked a question—
“The Court: She doesn’t know who wrote that or what they put down.
“Let me just ask you one question, Mrs. Henson. Was that paper ever shown to you by the person who took it down—
“The Witness: No.
“The Court: All right. —so that you could make any corrections or additions'?
“The Witness: No.
“The Court: All right.
“Mr. Fisher: Well, if the Court please, naturally this paper couldn’t be shown to her. This was—
“The Court: All right, Mr. Fisher, you get the person who took that down in here as a witness so that they can be properly cross-examined. Then you might be able to start cross-examining Mrs. Henson on it. Now, that’s the proper way of doing it. You get the person who actually wrote that down there so that it gives your opposition an opportunity to cross-examine that particular person. And then, when you have laid that foundation, then and only then can you then question Mrs. Henson on it.
“We will take a short recess.
“(Short recess.)
“(Whereupon the following proceedings were resumed within the presence and hearing of the jury.)
“The Court: May I just inquire. You have one more witness, Mr. Henson; is that right, or how many?
“Mr. Abram: Two more witnesses, your Honor.
“The Court: Oh, two more.
“Mr. Fisher: No other questions.
“The Court: You may proceed, Mr. —
“Mr. Fisher: No other questions, your Honor.
“Mrs. McKenna: I want to question.
“The Court: You may.
“Mrs. McKenna: Thank you.
“The Court: You are through cross-examining, Mr. Fisherf
“Mr. Fisher: Yes.
“The Court: All right.” (Emphasis added.)
Plaintiffs-appellants urge in this Court that the action of the trial judge in preventing defendant’s counsel from cross-examining plaintiff in the manner attempted, if error, was not prejudicial, and that defendant had the obligation to seek and to make a separate record of the matter sought to be proven by the excluded cross-examination. Defendant points to GCE 1963, 604, which provides as follows:
“If an objection to a question propounded to a witness is sustained by the court, the examining attorney may make a specific offer of what he expects to prove by the answer of the witness, or by leave of court, may examine the witness in relation thereto. The court may require the offer to be made or the testimony taken out of the hearing of the jury. The court may add such other or further statement as clearly shows the character of the evidence, the form in which it was offered, the objection made and the ruling thereon.”
Defendant-appellee contends that Eule 604 does not apply to cross-examination, pointing out that the cross-examiner often does not know what the answer to his question will be, and it is, therefore, unreasonable to expect a cross-examiner to make a specific offer of what he expects to prove by the answer of the witness.
At common law, the party complaining of any ruling of the court on a matter of law or procedure during the process of the trial must take an excep tion thereto in order to secure the right to have the propriety of such ruling reviewed on appeal or writ of error. 3 Am Jur, Appeal and Error, § 272, pp 47, 48. In Michigan, the need for formal exception to a court ruling was abolished by statute, CL 1948, § 618.60 (Stat Ann § 27.1040), which read as follows:
“Sec. 60. It shall not be necessary in the trial of any action or proceeding in any court of record, to except to any ruling or action of the court, if an objection thereto was duly made, but an exception shall be deemed to follow as a matter of course, and it shall not be necessary to except in any case to the charge of the court to the jury, or to the refusal of the court to charge as requested; but any party considering himself aggrieved by any such ruling, action, charge or refusal to charge, may assign errors the same as if exception had been made according to the practice heretofore in use.”
This statutory provision was repealed at the time of the adoption of the Revised Judicature Act in 1963. In its place, this Court adopted GCR 1963, 507.5, providing as follows:
“.5 Exceptions Unnecessary. Formal exceptions to rulings or orders of the court are unnecessary. It is sufficient that a party, at the time of [sic] the ruling or order of the court is made or sought, makes known to the court the action which he desires the court to take or his objection to the action of the court and his grounds therefor; and, if a party has no opportunity to object to a ruling or order at the time it is made, the absence of the objection does not thereafter prejudice him.”
Also bearing on the question is GCR 1963, 529.1. It provides:
“.1 Harmless Error. No error in either the admission or the exclusion of evidence and no error or defect in any ruling or order or in anything done or omitted by the court or by any of the parties is ground for granting a new trial or for setting aside a verdict or for vacating, modifying, or otherwise disturbing a judgment or order, unless refusal to take such action appears to the court inconsistent with substantial justice. The court at every stage of the proceeding shall construe these rules to secure the just, speedy, and inexpensive determination of every action so as to avoid the consequences of any error or defect in the proceeding which does not affect the substantial rights of the parties.”
Reading these three rules together, we conclude that a party seeking reversal of the trial court’s order denying a new trial has the burden in the appellate court of showing (1) that the ruling was erroneous, (2) that he opposed the ruling and contended for a proper ruling, and (3) that the erroneous ruling was prejudicial, so that the denial of his request for a new trial would be inconsistent with substantial justice.
In the discharge of this responsibility, counsel are aided by the permissive provisions of Rule 604. Whether on direct or cross-examination, an offer of proof or a request to make a separate record will serve to show that counsel opposed the court’s ruling and contended for a proper ruling. Where the record does not show that the error was prejudicial, the reviewing court will not presume prejudice. The burden is on the appellant to show prejudice.
The principles thus stated are not so easily applied to the case at hand. The question which defendant’s attorney asked and which he claims he was not permitted to pursue was as follows:
“Q. [By Mr. Fisher] And in answer to the questions, did you explain to the hospital attendants that you had suffered from chronic hack pains ever since you were a child, and that this pain radiated up and down your spine?”
Plaintiff had alleged as damages that she suffered an injury to her back. The nature and extent of her pre-existing back problems, if any, were certainly in issue, and there could be no question of counsel’s right to inquire into her prior history or back pain. Moreover, there would be no doubt of counsel’s right to inquire whether on a previous occasion the plaintiff had made an extrajudicial admission on the subject of her back condition.
If we were dealing with a simple objection to the question propounded, and a ruling of the trial court sustaining that objection, it may well be argued that, the question being proper and relevant, prejudice in its exclusion is apparent on the record.
The Court of Appeals treated the matter in precisely that way.
But this is not such a case. Plaintiffs’ counsel did not object to the question. Rather, he asked that the jury be excused, and in their absence moved for a mistrial.
Plaintiffs’ counsel claimed that defendant’s counsel was — while asking the cited question — reading from a hospital record. That hospital record had been admitted in evidence at a pre-trial conference, but not in its entirety. Excluded from the jury’s consideration, were those portions of the hospital record which were inadmissible as not being within the purview of the business entries exception to the hearsay rule. Valenti v. Mayer (1942), 301 Mich 551, Case v. Vearrindy (1954), 339 Mich 579, and other Michigan decisions hold this to be the proper procedure when hospital records are admitted in evidence under MCLA § 600.2146 (Stat Ann 1962 Rev § 27A.2146).
The substance of plaintiffs’ request for a mistrial was therefore, that irrespective of the propriety of defendant’s question, the manner in which he asked the question was calculated to convey to the jury the impression that the hospital record contained evidence that Mrs. Henson had in fact made the statement contained in counsel’s leading question.
As a general rule, a witness may not be cross-examined as to the contents of a written document which is not produced, or which, although marked for identification, has not been offered in evidence. 58 Am Jur, Witnesses, § 643, p 356.
Certainly, the rule would apply with greater force where the subject of the cross-examination is a specially excluded portion of a documentary exhibit.
The trial judge denied plaintiffs’ motion for mistrial. In doing so, she made clear to the defendant’s attorney that further effort to cross-examine Mrs. Henson upon the excluded portions of the hospital record, would not be permitted.
When the jury reconvened, defendant’s counsel might well have laid the offending exhibit aside and restated his last question to Mrs. Henson. That question was never objected to, and it cannot be supposed that the trial court would have prevented counsel from pursuing proper cross-examination in the absence of improper display of the hospital record.
The decision of the Court of Appeals is reversed and the order of the trial court, denying defendant’s motion for a new trial, is affirmed. Costs to plaintiffs-appellants.
T. M. Kavanagh, C. J., and Adams, Swainson and Williams, JJ., concurred with T. E. Brennan, J.
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Per Curiam.
The Judicial Tenure Commission (hereinafter the Commission) has recommended that this Court remove from judicial office the Honorable James Del Rio, Detroit Recorder’s Court Judge, and permanently enjoin him from holding any judicial office in the future. Pursuant to GCR 1963, 932.24, the respondent petitioned this Court to reject or modify the Commission’s recommendation. We have reviewed the record de novo. We deny the Commission’s recommendation that Judge Del Rio be permanently removed from office, but we conclude that he should be suspended from office for a period of five years without salary. This order shall apply regardless of respondent’s possible intervening re-election to office or election to any other state court.
Issues
I. Was the respondent denied due process and thus irreparably injured by the Judicial Tenure Commission’s public announcement, pursuant to GCR 1963, 932.22, that the respondent was under investigation even though no formal complaint had been filed?
II. Was the respondent denied liberty and property without due process of law when this Court ordered, pursuant to GCR 1963, 932.20, his interim suspension with salary pending the outcome of the Judicial Tenure Commission’s investigation of him?
III. Were the respondent’s due process rights violated because he was substantially denied precomplaint, prehearing and hearing discovery?
IV. Do the combined investigative, adjudicative and disciplinary roles of the Judicial Tenure Commission violate the respondent’s constitutional right to due process?
V. Does a de novo review of the record support the Judicial Tenure Commission’s recommendation that the respondent be disciplined for "misconduct in office” or "conduct clearly prejudicial to the administration of justice”?
History
The respondent, Judge James Del Rio, was elected to the office of Judge of the Detroit Recorder’s Court in November, 1972, and took office on January 1, 1973. His term of office expires on January 1, 1979.
On February 25, 1976, the Judicial Tenure Commission sent Judge Del Rio a "15-day letter”, as required by GCR 1963, 932.7(b), outlining numerous allegations of judicial misconduct. The Commission requested that Judge Del Rio respond within 15 days.
On March 10, 1976, Judge Del Rio’s attorney wrote to the Commission requesting an extension of time to April 12, 1976, within which to reply to the Commission’s letter of February 25, 1976.
On March 10, 1976, the Commission extended the time for Judge Del Rio’s response until the close of business on April 5, 1976.
On March 30, 1976, a letter signed by three attorneys representing Judge Del Rio requested an additional but unspecified extension of time for response.
On April 1, 1976, the Commission extended the time for Judge Del Rio’s response until 12 o’clock noon on April 12, 1976, per the respondent’s original request.
On April 9, 1976, Judge Del Rio filed a "John Doe” complaint in this Court for an order of superintending control seeking, inter alia, a more specific statement of the allegations of judicial misconduct, an extension of time to present his response and suppression of the file.
On April 16, 1976, the Commission filed its response in this Court to the "John Doe” complaint filed by Judge Del Rio. On the same day respondent also filed a supplemental brief in support of his complaint for superintending control.
Meanwhile, on April 15, 1976, this Court issued an order granting immediate consideration of respondent’s motion for superintending control and denied it for lack of merit. A motion to suppress the file was also considered and granted as to the Exhibits A-G.
Later the same day the foregoing order was vacated by this Court. Instead, on April 20, 1976, this Court issued another order. That order granted the motion for immediate consideration; extended respondent’s time for filing a response under GCR 1963, 932.7(b), until 4:30 p.m., July 1, 1976; ordered the Commission to state with more specificity the charges contained in paragraphs 15, 16 and 17 of the 15-day letter of February 25, 1976; and ordered the Commission to make available to respondent any Recorder’s Court transcript already prepared and within the Commission’s possession.
Pursuant to the Supreme Court’s order of April 20, 1976, the Commission, on April 30, 1976, sent a letter to respondent which more specifically set forth the nature of the allegations in paragraphs 15, 16 and 17 of the original 15-day letter. That résponse included numerous exhibits consisting of letters, transcripts, affidavits, testimonials and other materials.
Thereafter, on July 30, 1976, the Commission filed its Formal Complaint No. 18 against respondent incorporating, with few exceptions, the charges set forth in its letter of February 25, 1976.
On August 2, 1976, the Commission petitioned this Court for the interim suspension of Judge Del Rio pursuant to GCR 1963, 932.20.
On August 10, 1976, respondent’s attorneys filed his response in this Court to the Commission’s petition for interim suspension. That response included a 30-page brief addressing the substance of Formal Complaint No. 18 as well as the question of whether due process would be denied by interim suspension.
Also on August 10, 1976, respondent filed an "omnibus motion” in the Supreme Court seeking a preliminary hearing, an evidentiary hearing or a dismissal as well as certain other relief.
On August 17, 1976, respondent filed an answer, affirmative and special defenses with the Commission.
On August 20, 1976, the Commission petitioned this Court for the appointment of a Master to conduct hearings in the matter of Formal Complaint No. 18 pursuant to GCR 1963, 932.100)).
On the same date the Commission also filed its response to Judge Del Rio’s omnibus motion.
On August 30, 1976, this Court acted on the Commission’s request for the appointment of a Master by designating Timothy C. Quinn, Judge of the Court of Appeals, as Master to consider Formal Complaint No. 18.
On September 7, 1976, a prehearing conference was held in Lansing. That meeting was attended by the Master, the Executive Director and General Counsel of the Judicial Tenure Commission, the Commission’s Special Examiner, and the attorneys representing Judge Del Rio.
Following this prehearing conference, Judge Quinn issued an order stating that all motions should be made before September 14, 1976, and responses thereto should be made before September 17, 1976. A hearing on all motions was scheduled for September 21, 1976, and the hearing on Formal Complaint No. 18 was scheduled to begin on September 28, 1976.
On September 7, 1976, this Court also ordered Judge Del Rio to refrain from acting as a judge pending final adjudication of Formal Complaint No. 18. This Court further denied the "omnibus motion” and denied the motion to dismiss without prejudice to the raising of appropriate prehearing motions before the Master.
On September 14, 1976, Judge Del Rio filed a motion with the Master for an omnibus prehearing conference and also filed an omnibus motion for a preliminary hearing and certain other relief identical to that requested in this Court on August 10, 1976.
Also, on September 14, 1976, respondent filed a motion to correct omissions and supplement the record to include as a part of the answer to Formal Complaint No. 18 materials which had theretofore been filed in response to the "15-day letter” of February 25, 1976.
On September 14, 1976, one of Judge Del Rio’s attorneys requested an adjournment of the Formal Complaint hearing scheduled to begin on September 28, 1976, on the grounds that he expected to be in trial on that date.
On September 14, 1976, the Commission filed its response in opposition to the motion to adjourn the hearing.
On September 17, 1976, the Commission filed its response to Judge Del Rio’s omnibus motion.
On September 20, 1976, Judge Del Rio’s attorneys filed a motion in this Court for rehearing on the interim suspension together with a brief in support thereof.
On September 21, 1976, a hearing was held before Judge Quinn to consider all pending motions in the matter of Formal Complaint No. 18. Subsequently an order was entered by Judge Quinn denying all motions theretofore filed.
On September 24, 1976, the Commission filed its response in this Court to Judge Del Rio’s motion for rehearing of the interim suspension.
On September 27, 1976, Judge Del Rio once again filed a complaint for superintending control and a motion for immediate consideration in this Court with particular reference to Judge Quinn’s order denying respondent’s motion for adjournment. The Commission responded to this complaint on October 1, 1976.
On September 28, 1976, the hearing on the matter of Formal Complaint No. 18 commenced before Judge Quinn. On that date, Judge Del Rio did not appear because he was "suffering from a cardiac deficiency in part and some gastric problem * * * ”.
The Master then proceeded to take a portion of the direct examination of the Commission’s first witnesses but shortly thereafter adjourned the matter until the following day for the presentation of medical evidence concerning Judge Del Rio’s condition.
On September 29, 1976, the Master heard testimony from medical witnesses for the respondent and for the Commission concerning the urological complaint of the respondent. At the close of this testimony, the Master concluded that the presence of Judge Del Rio would not be so seriously injurious to his health as to justify adjournment. Thereafter, however, the Master did grant an adjournment until Tuesday, October 5, 1976; respondent’s attorneys promised that respondent would be present at that time.
Meanwhile, on October 1, 1976, this Court issued its order denying the respondent’s motion for superintending control in the matter of the Master’s denial of respondent’s motion for adjournment.
The hearing before the Master resumed on October 5, 1976, and, at that time, both respondent and his attorney were present. The hearing on the Formal Complaint took 14 days. Seventy-three witnesses testified (66 for the Commission and 7 for the respondent) and 128 exhibits were offered (95 by the Commission and 33 by the respondent). Two thousand, four hundred pages of transcript were taken.
On October 6, 1976, the Master issued an order allowing an amendment of Formal Complaint No. 18 by the Commission to include certain allega tions concerning return of bond forfeitures and providing, further, that no testimony should be offered relative to the amendment until October 20, 1976, in order to give respondent a reasonable opportunity to answer the amendment and prepare his defense.
On October 20, 1976, respondent filed his answer to the amendment to Formal Complaint No. 18.
At the conclusion of the hearing on November 10, 1976, both sides agreed to present written closing arguments for the consideration of the Master. The Commission submitted its argument on December 3, 1976, while the respondent’s argument was submitted on December 31, 1976.
In the meantime, this Court issued another order on January 6, 1977, denying respondent’s motion for reconsideration of his interim suspension.
On January 18, 1977, the Master submitted his report to the Commission containing his findings of fact and conclusions of law.
Also on January 18, 1977, the Commission ordered a hearing to be held on February 9, 1977, to consider objections by the examiner and by the respondent to the report of the Master pursuant to GCR 1963, 932.16 and 932.17.
On February 28, 1977, the Commission affirmed the Master’s findings and, in a 29-page opinion, submitted its recommendation to this Court that Judge Del Rio be removed from office, that further payment of his judicial salary be suspended and that he be enjoined from holding judicial office in the future.
On March 2 and 3, 1977, the Commission certified the record of proceedings in the matter of Formal Complaint No. 18 to this Court and filed its opinion and recommendation in the matter as well as a motion for termination of judicial compensation.
On March 28, 1977, respondent filed a motion for extension of time in which to submit his brief to the Supreme Court and on that same date this Court issued an order granting the respondent until May 12, 1977, to file his brief.
On May 9, 1977, the Supreme Court denied the Commission’s motion for termination of respondent’s judicial salary.
On May 13, respondent Del Rio’s objections to the Commission’s recommendation were filed with this Court.
This Court heard oral arguments in this matter on June 9, 1977.
I
The respondent initially claims that he was denied due process and thus irreparably injured by the Judicial Tenure Commission’s public announcement, pursuant to GCR 1963, 932.22(a), that he was under investigation even though no formal complaint had been filed.
On Thursday, June 12, 1975, the Judicial Tenure Commission publicly announced that there was an investigation pending as to Detroit Recorder’s Court Judge James Del Rio. This announcement occurred six months before the Commission gave written notice to the respondent regarding the nature of the charges. The respondent claims that he was irreparably injured by this disclosure. He asserts it served as an open invitation for the filing of complaints and created an aura of guilt through media reports and commentary. We decline to find that such statement irreparably in jured respondent’s case before the Master, the Commission or this Court.
The provisions of GCR 1963, 932.22(a) grant to the Commission the power to make such announcement. It states:
"Prior to the filing of a complaint, no member of the commission or its staff shall disclose the existence or contents of the investigation nor any testimony taken nor papers filed therein; provided, however, that the commission may at any time make public statements as to matters pending before it, only upon its determination by a majority vote that it is in the public interest to do so, limited to the following: (1) that there is an investigation pending, or (2) that the investigation is complete and that there is insufficient evidence for filing a complaint by the commission.”
No evidence has been presented to this Court which leads us to any other conclusion than that the action of the Commission in this case strictly complied with the rule. The public statement went no further than announcing an investigation was pending.
Before such announcement could have been made a majority of the members of the Commission must have determined that it was in the public interest to do so. A weighing of equities was required.
It is recognized that some disadvantage could inure to the respondent by such action if no formal complaint were ever issued. On the other hand, the statement provided prior notice to the respondent that he was under investigation. Thus it afforded him the opportunity to clarify misconceptions and to rectify his conduct. Also, it clarified unwarranted rumors and assuaged public speculation.
In a matter such as this, where publicized conduct of a questionable nature by a member of the judiciary causes public and media rumor to reach a substantial level, we conclude it is appropriate for the Commission to determine in good faith and after careful consideration that the public interest requires issuance of a limited statement as provided by the rule.
In the final analysis, this seven-person Court has the duty to render a de novo review on matters of record only. It is our clear responsibility to be unswayed by public clamor. Respondent’s contention has no merit.
II
Respondent maintains that, under both the Federal and state Constitutions, he was denied liberty and property without due process of law when this Court ordered, pursuant to GCR 1963, 932.20, his interim suspension with salary pending the outcome of the Commission’s investigation of him. We do not agree for three reasons.
First (1), it is a well established rule of law that the United States Constitution does not guarantee the respondent either the right or privilege to run for or retain state elective judicial office. See, inter alia, Gruenburg v Kavanagh, 413 F Supp 1132 (ED Mich, 1976); Snowden v Hughes, 321 US 1; 64 S Ct 397; 88 L Ed 497 (1944); Peterson v Knutson, 367 F Supp 515 (D Minn, 1973), and the cases cited therein.
Respondent’s right to hold state elective judicial office derives from state constitutional and statutory provisions. See MCLA 600.223; MSA 27A.223. The state, which creates the judicial office, can set appropriate standards of conduct for the judge who holds that office. There is no Federal constitutional stricture that this Court is aware of which mandates that a state must permit a judge to hold judicial office unhampered by appropriate standards of judicial conduct. See, Gruenburg, supra, 1135.
Second (2), we cannot agree that this Court’s decision, upon the Commission’s recommendation, to order an interim suspension deprived the respondent of "liberty” or "property” contrary to state constitutional guarantees of due process. Nor do we agree that our court rules deny due process of law to persons holding judicial office.
"[D]ue process, unlike some legal rules, is not a technical conception with a fixed content unrelated to time, place and circumstances.” Joint Anti-Fascist Refugee Committee v McGrath, 341 US 123, 162; 71 S Ct 624; 95 L Ed 817 (1951) (Frankfurter, J., concurring). "[D]ue process is flexible and calls for such procedural protections as the particular situation demands.” Morrissey v Brewer, 408 US 471, 481; 92 S Ct 2593; 33 L Ed 2d 484 (1972).
GCR 1963, 932, provides a full panoply of procedural guarantees for adjudicating allegations of judicial misconduct. In respondent’s case, the order for interim suspension was not entered until the respondent was given adequate notice and a reasonable opportunity to respond to both the complaint and the petition for interim suspension.
Respondent was afforded full opportunity to be represented by counsel, to examine and cross-examine witnesses, to present evidence, to submit briefs and to argue his case before a master (in this case, a well-respected Court of Appeals Judge). That Master was further required to file findings of fact and conclusions of law with the Commission and those findings were then certified to this Court.
The respondent’s interim suspension with full salary from his duties did not constitute removal from elective office. Permanent removal occurs, if at all, only after the respondent has been afforded a full and complete hearing. Furthermore, since the respondent’s constitutional right to hold judicial office is subject to Const 1963, art 6, § 30, and GCR 1963, 932, relieving him temporarily from his duties and subsequently affording him a full opportunity to be heard does not offend the due process clause of our Constitution. Const 1963, art 1, § 17. Also see, Attorney General, ex rel Rich v Jochim, 99 Mich 358; 58 NW 611 (1894); Detroit v Division 26 of the Amalgamated Ass’n of Street, Electric Railway & Motor Coach Employees of America, 332 Mich 237; 51 NW2d 228 (1952).
It should not be forgotten that the eradication of corrupt practices in the state judiciary is such an important responsibility that the suspension of a judge prior to a hearing can be justified as consonant with due process. In a case such as this, the state interest in utilizing suspension to preserve the integrity of the judiciary surely outweighs any individual interest in a pre-suspension hearing. Fair v Kirk, 317 F Supp 12, 17 (ND Fla, 1970), aff'd 401 US 928; 91 S Ct 935; 28 L Ed 2d 210 (1971), reh den, 403 US 941 (1971).
Respondent also contends that the interim suspension without a hearing irreparably damaged his good name, reputation and opportunity to be re-elected. Respondent posits that this also constitutes a denial of liberty and property without due process of law.
The Federal court (ED Mich) recently was confronted with this very same issue in Gruenburg, supra, 1136-1137. That court very succinctly dismissed the issue and we agree with that court’s analysis:
"Plaintiff also contends that the interim suspension without a hearing irreparably damaged his good name, reputation and opportunity to be re-elected. One’s good name and reputation alone, apart from some more tangible interest such as employment, however, do not implicate any 'liberty’ or 'property’ interests 'sufficient to invoke the procedural protection of the Due Process Clause.’ Paul v Davis, 424 US 693; 96 S Ct 1155, 1161; 47 L Ed 2d 405, 414 (1976). Although plaintiff’s employment is arguably involved here, he will not be divested of that employment, if at all, until there has been a full hearing. Similarly, plaintiff’s contention that his opportunity to be re-elected has been irreparably damaged is much too intangible an interest to invoke the protection of due process. * * * In any event, Mich Gen Ct Rule 932.20 was enacted before plaintiff was first elected and he holds office subject to the rule. Sarisohn v Appellate Div, Second Dep’t, Supreme Court of New York, 265 F Supp 455, 459 (ED NY, 1967).” Also see In re Huff, 352 Mich 402; 91 NW2d 613 (1958).
Finally (3), we reject as moot respondent’s contention that his interim suspension violated state constitutional guarantees of due process.
This Court has twice considered and rejected respondent’s contention that his interim suspension should be vacated. See History, supra. At this juncture, our Court, as required by GCR 1963, 932.25, is undertaking a de novo review of the record submitted by the Commission. Therefore, respondent is assured that his interim suspension will be terminated upon the issuance of this opinion.
Hence, any further review of the interim suspension would be futile because the issue has become moot by reason of (a) a lapse of time resulting in a change of circumstances; and (b) the pragmatic consideration that effective relief could not be granted. Cf. McCarthy v Wayne Circuit Judge, 294 Mich 368, 373; 293 NW 683 (1940), and the cases cited therein.
Ill
Respondent claims his right to due process of law was violated because he was denied pre-complaint, prehearing and hearing discovery. However, the record of the proceedings in this case does not support those allegations.
Initially, it must be remembered that technically GCR 1963, 932.13, does not allow for either pre-complaint or prehearing discovery in judicial fitness proceedings:
"Prior to filing of a complaint, the commission may take evidence before it or any individual member of the commission or its staff for purposes of its preliminary inquiry. No discovery proceedings shall be had at the request of respondent, either before or after the filing of a complaint.”
In In the Matter of Mikesell, 396 Mich 517, 534; 243 NW2d 86 (1976), this Court addressed the policy reasons for limiting disclosure and discovery in judicial fitness proceedings:
"[T]he confidentiality provisions * * * protect witnesses and citizen complainants. If the respondent and others similarly situated were allowed to discover the name of every complainant, including those who will not appear and those whose complaints have been dismissed, the free flow of information to the Commission would be curtailed. The Commission carefully investigates all complaints and this Court would not want to discourage citizen complainants from voicing their ideas.”
Therefore, the Commission and the Master theoretically had the authority to deny all pre-complaint and prehearing discovery. Those requests which were denied were denied justifiably under the rule. However, the record demonstrates that limited pre-complaint and prehearing discovery was afforded the respondent. See, History, supra.
The Commission’s "15-day” letter of February 25, 1976, substantially set forth all the allegations which were later contained in the Commission’s Formal Complaint No. 18, filed on July 30, 1976. The 15-day letter listed the charges and enumerated cases, dates and a list of prospective witnesses. Furthermore, on April 20, 1976, this Court (a) granted the respondent an extension of time until July 1, 1976, to answer the 15-day letter; (b) ordered the Commission to "state with more specificity the charges contained in paragraphs 15, 16 and 17” of the 15-day letter and (c) ordered the Commission to make available to the respondent "transcripts of Recorder’s Court proceedings already prepared, within the defendant’s [Commission’s] possession, and upon which the allegations of the written notice may have been based”.
It is clear, therefore, that while pre-complaint discovery could have been denied for confidentiality reasons, this Court and the Commission did grant the respondent’s request for limited pre-complaint discovery. It should not be overlooked that an unprecedented four-month time extension was also granted respondent to investigate and prepare his response to the 15-day letter.
The record also does not support respondent’s allegation that he was denied prehearing discovery. On September 7, 1976, the Master ordered that all prehearing motions were to be filed ■ by September 14, 1976. Respondent’s motions were denied on September 21, 1976, only after his attorneys declined to present any argument in support of them.
Finally, the record does not support respondent’s charge that he was denied hearing discovery. The record clearly indicates for instance that the Master granted the respondent’s request to be informed as to which witnesses would be appearing on each successive day of the hearing. The Master also complied when the respondent infrequently asked that Jencks material as to a specific witness be provided in advance. Jencks v United States, 353 US 657; 77 S Ct 1007; 1 L Ed 2d 1103 (1957). Timely adjournments were also granted to allow study of the material. Our reading of the record indicates that respondent’s attorneys were given every reasonable opportunity to review pertinent files and subpoena any additional information which they needed during the hearing. The hearing discovery demands of both parties were treated similarly and evenhandedly by the Master. We can only conclude that it was by choice that respondent sparingly utilized some of the discovery opportunities granted by the Master and this Court.
The additional arguments advanced by the respondent with respect to deprivation of alleged discovery rights are of no merit.
IV
Respondent next contends that the combined investigative, adjudicative and disciplinary roles of the Judicial Tenure Commission "make it a tribunal of inherent and incurable bias” and, as such, the Commission is incapable of rendering due process.
Initially, we must make it clear that the respondent is operating under a gross misconception if he believes that the Commission exercises any disciplinary function. Pursuant to GCR 1963, 932.25, this Court, and this Court alone, decides what, if any, disciplinary action shall be taken against any elected member of the state judiciary:
"The Supreme Court shall review the record of the proceedings on the law and facts and shall file a written opinion judgment directing censure, removal, retirement, suspension, or other disciplinary action as it finds just and proper, or reject or modify, in whole or in part, the recommendations of the commission.”
The Commission’s role is specifically limited to submitting its "recommendations” to this Court. This Court exercises the disciplinary function. Our decision not to follow the Commission’s recommendation as to the respondent in the instant case is illustrative of this very fact. Also see, In the Matter of Mikesell, 396 Mich 517; 243 NW2d 86 (1976).
We are in limited agreement with respondent’s contention that the investigative and adjudicative roles are combined in the Commission. (By "limited” agreement, we mean that it should not be forgotten that we review de novo the Commission’s adjudication of the matter before we take disciplinary action.)
However, the authority is legion in support of the proposition that combining the investigative and adjudicative roles in a single agency does not necessarily violate due process in administrative adjudications such as judicial fitness hearings. See, inter alia, Halleck v Berliner, 427 F Supp 1225, 1243-1244 (DC, 1977); Roy v Jones, 349 F Supp 315, 322 (WD Pa, 1972), aff'd on other grounds, 484 F2d 96 (CA 3, 1973); Keiser v Bell, 332 F Supp 608, 617-619 (ED Pa, 1971); In re Rome, 218 Kan 198, 204-205; 542 P2d 676, 683-684 (1975); In re Hanson, 532 P2d 303, 306 (Alas, 1975); In re Diener, 268 Md 659, 677-679; 304 A2d 587 (1973), cert den, sub nom Broccolino v Maryland Comm on Judicial Disabilities, 415 US 989; 94 S Ct 1586; 39 L Ed 2d 885 (1974). In re Kelly, 238 So 2d 565 (Fla, 1970), cert den 401 US 962 (1971), reh den 403 US 940 (1971). See generally, 2 Davis, Administrative Law Treatise, §§ 13.01-13.11, pp 171-249.
In Withrow v Larkin, 421 US 35, 47; 95 S Ct 1456; 43 L Ed 2d 712 (1975), the United States Supreme Court stated, and we agree, that the burden is on the respondent to prove bias in such situations:
"The contention that the combination of investigative and adjudicative functions necessarily creates an unconstitutional risk of bias in administrative adjudication has a much more difficult burden of persuasion to carry. It must overcome a presumption of honesty and integrity in those serving as adjudicators; and it must convince that, under a realistic appraisal of psychological tendencies and human weakness, conferring investigative and adjudicative powers on the same individuals poses such a risk of actual bias or prejudgment that the practice must be forbidden if the guarantee of due process is to be adequately implemented.”
In the case at bar, the respondent fails to document the charge that the combination of the investigative and adjudicative roles in the Commission creates any risks of actual bias or prejudgment. Respondent simply asserts that the bias is "inherent” in the process.
This Court has made a conscious effort to segregate within the Commission the investigative and adjudicative functions. We specifically require under GCR 1963, 932.10, that an independent master be appointed by this Court to preside over the adjudicative process once the Commission files a formal complaint. It is this master who also makes the findings of fact and conclusions of law upon which the Commission makes its recommendation and this Court ultimately bases its decision. Therefore, this Court, like the United States Supreme Court in Withrow, supra, 58, does not believe that the combination of the investigative and adjudicative roles in the Judicial Tenure Commission creates even a risk that due process guarantees could be violated.
"The initial charge or determination of probable cause and the ultimate adjudication have different bases and purposes. The fact that the same agency makes them in tandem and that they relate to the same issues does not result in a procedural due process violation. Clearly, if the initial view of the facts based on the evidence derived from nonadversarial processes as a practical or legal matter foreclosed fair and effective consideration at a subsequent adversary hearing leading to ultimate decision, a substantial due process question would be raised. But in our view, that is not this case.”
V
Does a de novo review of the record support the Judicial Tenure Commission’s recommendation that the respondent be disciplined for "misconduct in office” or "conduct clearly prejudicial to the administration of justice”?
Pursuant to Const 1963, art 6, § 30(2), this Court adopted OCR 1963, 932.4, which provides:
".4 Standards of Judicial Conduct.
"(a) A judge shall be personally responsible for his own behavior and for the proper conduct and administration of the court or tribunal in which he presides.
"(b) A judge shall be deemed guilty of misconduct in office if:
"(iv) His conduct is clearly prejudicial to the administration of justice.
"(d) Conduct in violation of the code of judicial conduct or code of professional responsibility and canons, whether the conduct complained of occurred before or after the respondent became a judge or was or was not connected with his judicial office, may constitute misconduct in office or conduct that is clearly prejudicial to the administration of justice or other cause delineated in Const 1963, art 6, § 30. The question in every case is whether the conduct complained of constitutes misconduct in office or conduct that is clearly prejudicial to the administration of justice or there is other cause delineated in Const 1963, art 6, § 30, not whether a particular canon or disciplinary rule has been violated. All the circumstances are to be considered in deciding whether action by the commission is warranted.”
The Honorable Timothy C. Quinn, Master in this cause, determined that respondent, Judge James Del Rio, was guilty of misconduct as to nearly all the allegations charged in the Formal Complaint No. 18. He concluded:
"On this record, I conclude that Judge Del Rio:
"1. Uses his office to benefit friends and acquaintances.
"2. Sentences defendants in violation of MCLA 771.14; MSA 28.1144 and Recorder’s Court Rule 29.
"3. In order to accomplish his desire to place a defendant on probation, grants a new trial following a conviction for a non-probationable offense in order to permit a defendant to plead guilty to a probationable offense.
"4. Is not impartial in conducting trials.
"5. Exercises and attempts to exercise personal judicial control over selected cases.
"6. Uses threats of imprisonment or promises of probation to induce pleas of guilty.
"7. Is discourteous and abusive to counsel, litigants, witnesses, court personnel, spectators and news reporters.
"8. Abuses the power of contempt.
"9. Brags of his sexual prowess openly.
"10. Is continually guilty of judicial misconduct that is not only prejudicial to the administration of justice but destroys respect for the office he holds.”
The Commission affirmed and adopted the findings of the Master as follows:
"We adopt as fully supported by the record herein, the final conclusion of the Master when he said:
" 'In summary, Judge Del Rio has demonstrated by his conduct that he is .legally, temperamentally and morally unfit to hold any judicial position.’
"By reason of the foregoing, it is our recommendation to the Supreme Court that Judge Del Rio be removed from the office he holds as Recorder’s Court Judge of the City of Detroit and further, that he be permanently enjoined from holding any judicial office.”
Although he now suggests that "he has a valid defense to each and every charge brought against him”, the respondent in his brief does not challenge or urge a different conclusion from the facts shown, but merely states:
"Respondent’s objections to the recommendation of the Judicial Tenure Commission will not address in an adversary manner, the so-called findings of fact and conclusions of law filed herein by the master.”
Moreover, the Master observed:
"There is little dispute on the facts adduced by the Commission in support of the judicial misconduct charge against Judge Del Rio. The dispute is over what those facts establish.”
We have reviewed the record de novo. We perceive the question before this Court to be "whether the conduct complained of constitutes misconduct in office or conduct that is clearly prejudicial to the administration of justice.” "All the circumstances are to be considered * * * .”
In order to deal with the numerous allegations of substantive misconduct, we have divided our analysis into four general categories. Pertinent examples will be reviewed relating to each category of alleged misconduct. Some occurrences will overlap categories. We make no attempt here to enumerate and discuss in this opinion every example of misconduct or any incident that offers no basis for disciplinary action. Our conclusion, however, is based on the whole record independently reviewed. As reflected herein, we find proofs sufficient to sustain disciplinary action arising from paragraphs 4 through 6, 8 through 11, 13 through 16, 18 through 23 and the allegations of the amended complaint. The assertions of misconduct in 3, 7, 12, 17 and 24 offer insufficient foundation for discipline.
The four general categories of misconduct are:
1. Disregarding statutes, court rules and canons in the administration of justice.
2. Improper use of a judicial office to benefit friends.
3. Conduct giving rise to the appearance and substance of impropriety and partiality.
4. Gross lack of judicial temperament.
1. Disregarding Statutes, Court Rules and Canons in the Administration of Justice
The first example of respondent Del Rio’s wilful disregard for the law and obligations imposed on him by virtue of his office appears in People v Glen Bright, Recorder’s Court Case No. 75-02082, dated May 20, 1975. The Commission stated (referring to Judge Del Rio as "respondent”):
"Paragraph 5 of the complaint alleges that respondent disregarded the requirements of the statute and court rule requiring a presentence report before a judge passes sentence on a criminal defendant. In the case of Glen Bright, the initial charge was receiving and concealing stolen property over $100. The plea of guilty was to unlawfully taking away and driving an automo bile. When respondent accepted the plea at the pretrial, he told * * * counsel for the defendant, in an off-the-record, side-bar conference that he should acknowledge in open court that a presentence report had been reviewed by the judge and that a blank sheet of paper which the judge would hold in his hand was that presentence report which he had read. [Counsel] went back to the podium and together he and respondent put this lie into the record. Bright was sentenced to three years probation, with the first six months to be served in the House of Correction, to run concurrently with another sentence then being served.
" * * * In imposing sentence without a presentence report, respondent not only wilfully violated the statute and court rule, but caused the entry of a false judicial record which could well be deemed a subornation of perjury.”
The record supports the Commission’s finding. A presentence report is required upon conviction of a felony where an indeterminate sentence is to be imposed. MCLA 771.14; MSA 28.1144. In view of the importance of these reports to the defendant, society and the administration of justice, obtaining and reviewing such reports may not be waived. People v Brown, 393 Mich 174; 224 NW2d 38 (1974).
Also, Recorder’s Court Rule 29 provides:
"Except in emergencies, remand before sentence for probation and psychiatric reports shall be for at least two (2) weeks, and each such report shall be in the hands of the sentencing judge at least twenty-four (24) hours prior to the time of sentence.”
Accordingly, the statute and court rule were blatantly disregarded.
As a sequel, the following day, in the case of People v James Alter, Case No. 75-03099, after the defendant was found guilty by a jury before Judge Del Rio, the Judge again suggested the same scenario and showed the same lawyer a piece of paper that appeared to be a "labor grievance form” and suggested that counsel state for the record that he had read the presentence report. However, before concluding, an actual presentence report involving a different case with this same defendant was obtained and reviewed. But the procedure was again irregular.
In People v Norrell Johnson, Case No. 74-02683, April 25, 1974, in affirming the Master’s finding regarding this incident, the Commission found:
"Paragraph 22 of the complaint alleges that respondent was guilty of misconduct in the matter of People v Norrell Johnson. The charge in that case was assault with intent to do great bodily harm less than murder. The prosecutor was ready for trial. All thirteen witnesses for the people were present and ready to testify. A jury had been waived and respondent conducted a bench trial.
"During the testimony of the first witness, who was not the complaining witness, respondent, sua sponte, suggested to defense counsel the applicability of self-defense. At the close of this witness’s testimony, and without hearing any of the other twelve prosecution witnesses testify, respondent told defense counsel that he would entertain a motion for a directed verdict of acquittal as he was convinced the first witness had started the incident and that the defendant was acting in self-defense. The motion was granted.
"The action of respondent showed clearly that he was not willing to try the case on its merits. Apparently he had decided before he came to the courtroom that he would acquit the defendant. The proofs were of no consequence to him. He lacked the sense of judicial decorum to even countenance a trial to arrive at his prearranged result.”
During a bench trial, the "judge shall proceed to hear, try and determine such cause in accordance with the rules and in like manner as if such cause were being tried before a jury.” MCLA 763.4; MSA 28.857. The court is duty-bound just as any juror not to form or express an opinion on the merits of the case until the case is submitted for determination. People v Petrill, 292 Mich 139, 144; 290 NW 358 (1940). GCR 1963, 515.1 provides for a motion for directed verdict only at the "close of the evidence offered by an opponent.” The finding of the Commission is fully supported by the record. Judge Del Rio clearly disregarded duties imposed by statute and court rule.
Another example of respondent’s improperly eschewing statutory responsibility is found in the case of People v Holmes, Case No. 74-04957, September 3, 1974. With respect to this case, the Commission found:
"As alleged in paragraph 6 of the complaint, a waiver trial was held before respondent in the case of People v Jerry Lee Holmes on September 3, 1974. The defendant was found guilty of robbery armed and unlawfully driving away an automobile. On September 10, 1974, the defendant was sentenced to concurrent terms of five years probation on each count. Assistant Prosecutor Ronald Schigur immediately informed respondent that the sentence was, illegal. See People v Davis, 392 Mich 221 [220 NW2d 452] (1974), which holds probation as a sentence for armed robbery a void act beyond the jurisdictional power of the court.
"The next day, the sentencing was set aside. That day, a motion for a new trial was filed. The motion was based upon a supposed alibi defense, but it was unaccompanied by any affidavit of the putative witnesses, and, in fact, even failed to name them. On September 13, 1974, an order granting a new trial was signed. Immediately after the motion for a new trial was granted, and over the objection of the prosecutor, respondent accepted a guilty plea to a lesser-included and probationable offense, assault with intent to rob being armed. The sentence of probation was the same one respondent had unsuccessfully tried to impose before.
"Respondent had apparently decided that he would grant probation despite any statutory prohibition. He circumvented the law by imposing his own personal brand of justice. The granting of the motion for new trial was more a ruse rather than an exercise of judicial discretion. By wilfully violating the law, he denigrated the judicial function.”
A review of the record substantiates this determination. The finding by Judge Del Rio that the defendant was guilty of armed robbery legally obligated him to sentence the defendant to imprisonment for a term of years or for life. The court cannot impose probation upon conviction of such charge. MCLA 771.1; MSA 28.1131. The Commission’s conclusion is fully justified.
Explicit examples of this Judge’s disregard for legal obligations are also found in his handling of guilty pleas as alleged in paragraph 14 of the complaint. The blatant use of the threat of imprisonment, unless defendants pled guilty, permeated testimony in numerous cases. Recognizing this breach of judicial responsibility, the Commission correctly found:
"On January 27, 1975, Attorney Michael Sapala appeared at a pretrial conference before respondent in the case of People v Dwight Williams. The charge was possession of heroin. The defendant had been offered a possible plea to unlawful use and addiction. At a conference at side-bar, the Judge advised Sapala, 'You take him out in the hall and you talk to him because I’m sure he’ll take a plea once you talk to him.’ When Mr. Sapala returned to the courtroom, he informed the court that Mr. Williams did not wish to plead guilty. Mr. Williams informed the court he was innocent and wanted a trial. Respondent informed the defendant that he was street wise, he knew where Williams was coming from and that defendant had better plead guilty. He sent Sapala and the defendant out into the hall again. Upon their return, they were beckoned to the bench for a third time. Respondent said: 'Look, you better take this plea or your mother-fuckin’ ass is dead.’ Respondent promised the defendant he would put him on probation. A plea of nolo contendere was entered since defendant insisted he would not admit his guilt. That day, the defendant was put on probation without awaiting a presentence report.”
Another episode was also set forth by the Commission:
"In People v Jerry Tippett, at the pretrial hearing, respondent promised probation in return for a guilty plea to a lesser included offense. Respondent promised jail if the defendant insisted on a trial [on February 14, 1974, at a bench conference just before trial]. When defendant Tippett continued to maintain his innocence and insisted on a trial,' respondent said: 'Fine, you know, if I take a plea of the six-month misdemeanor, I’m going to put you on probation, but if you go to trial and you get convicted you’ll have to get some time.’ Tippett was convicted.
"Although Tippett’s personal circumstances produced a recommendation of probation in the presentence report, respondent sentenced him to one and one-half to four years in the state penitentiary, and denied the defendant an appeal bond.
"Mr. Fishman, attorney for Tippett, filed a motion for resentencing setting forth the' remarks by respondent at the side-bar conference during the pretrial hearing. When Mr. Fishman appeared on that motion on March 19, 1974, respondent had already prepared an opinion and order which devoted five paragraphs to statements that Mr. Fishman was incompetent. In sum, the opinion was basically nothing more than an unwarranted scurrilous personal attack on the defense counsel, accusing him of 'second-guessing’ the court, being on an 'ego-trip’ and making promises of probation to the defendant and his family. That respondent would have personal knowledge of conversations between defense counsel, the defendant, and the defendant’s family is improbable, but more importantly, the allegation was simply untrue. It was a vindictive fabrication for respondent’s own purposes. At the hearing on March 19, respondent showed the proposed opinion and order to Mr. Fishman in an effort to coerce him into withdrawing his motion, and went so far as to promise to 'help’ him for cooperation or to 'ruin’ him for recalcitrance. Mr. Fishman refused to foresake his duty to his client.”
Aside from the unwarranted threat of imprisonment for demanding trial, coupled with a promise of leniency if the defendant would "cop a plea”, the Tippett episode reveals a heavy-handed attempt by a judicial officer to intimidate a lawyer into surrendering a motion upon which his appellate right rested. This is intolerable.
In yet another case, the Commission properly summarized the facts:
"Attorney James Howarth testified as to the events of March 11, 1975, in the case of People v Andrew and McHenry Smith. The charge was breaking and entering an automobile, and the prosecuting attorney said there would be no reduced plea. The defendants informed defense counsel and respondent of their emphatic desire to go to trial. Respondent requested the defendants and defense counsel to approach the bench. An ex parte communication ensued, the prosecutor not being present. During the 'negotiations’ about taking a plea, respondent expressed the opinion he 'was quite certain they would be found guilty’. Respondent then sought to interpose himself between the defendants and their attorney, saying:
" 'I’m street [wise], just like both of you are, and your attorney obviously does not have his shit together, and I think you should be paying no attention to him and you should be entering a plea in this case.’
"The brothers still wanted a trial. Notwithstanding that one of the brothers was in custody, respondent insisted that Mr. Howarth take his clients out into the hall and explain 'things’ to them. When Mr. Howarth returned and informed respondent that the defendants would not plead guilty, respondent berated defense counsel and threatened him with contempt. Respondent again invited the defendants and their attorney to the bench and urged them to plead guilty. Despite extensive criminal convictions, including felonies, respondent promised leniency ('I won’t hurt you.’) and promised a personal bond if they pled guilty. On the record, however, respondent had defendants acknowledge that no promises were made to them, and their pleas of guilty were thereupon accepted. A personal bond was given the brother in custody pending sentencing. On March 19, 1975, the defendants were each sentenced to three years probation.”
GCR 1963, 785.7, requires detailed questioning by the court to establish that a defendant entering a pida fully knows and understands his right to trial' before a judge or a jury, and freely and voluntarily waives this right before pleading guilty. Any agreements are to be affirmatively stated on the record. The court is required to ascertain thé existence of any coercion. Contrary to all these safeguards, Judge Del Rio himself improperly coerced pleas!
Furthermore, in the overall handling of guilty pleas, which take up a substantial portion of Recorder’s Court activities, Judge Del Rio usurped the function of the prosecution by taking pleas over their objections; interjected extraneous matters into the trial process; appeared to grant probation solely because the defendant took a plea, irrespective of any other consideration; and often interfered with the attorney-client relationship. These and other incidents, to say the least, display improper handling of guilty pleas.
Aside from cases involving the handling of guilty pleas, the record made before the Judicial Tenure Commission reflects additional episodes where Judge Del Rio disregarded his judicial responsibilities under the law, rules and canons.
2. Use of Office To Benefft Friends
There are several examples in the record of where the respondent improperly invoked the prestige and power of his judicial office in order to secure favors for friends or associates.
In the case of People v Robert Smart, Case No. 74-03327, as alleged in paragraph 4 of the complaint, Judge Del Rio demonstrated an undue and improper interest in the prosecution of the defendant. Complainant Delores Williams, a/k/a Delores Smart, sought to prosecute Robert Smart for aggravated assault. The Judge was on a first name basis with the complainant. Judge Del Rio contacted Lieutenant James Stack, the officer in charge of the First Precinct desk, at approximately 4:25 p.m., April 26, 1974, advised him he had complainant Delores Williams in his courtroom, and requested that arrangements be made for her transportation by scout car to the Thirteenth Precinct to make the preliminary complainant report and to have a warrant request prepared.
Then the Judge arranged to have an assistant prosecutor stay after hours in order that a warrant could be issued. The assistant prosecutor, in order to comply with this unprecedented request, made arrangements to have the complainant transported by police vehicle to the prosecutor’s office for the issuance of the warrant. Judge Del Rio was present at the prosecutor’s office and attempted to apply pressure to assure the issuance of the warrant. Thereafter, the warrant was appropriately issued. Then the Judge arranged for the police to call him at his home as soon as the defendant was arrested.
Following the arrest, at 1:30 a.m., on April 27, the Judge called the police and directed them to deliver the prisoner to the First Precinct. A proceeding termed by the Judge as an "arraignment” on the charge of aggravated assault, commenced at 2 a.m. No reporter was present. The Judge repeatedly asked Smart for a plea; Smart consistently replied "not guilty”. Surety bond was set at $2,500 and Smart was remanded to policy custody. Early the next morning in Judge Del Rio’s courtroom, with no reporter present, Smart was again asked how he pled and once again he refused to plead guilty. Thereupon Judge Del Rio said: "If your ass had [pled] guilty, you [would] be on your way to Jackson now.” Bail was subsequently reduced to $300. Judge Del Rio then pursued his personal interest in this case by appearing during the trial in the back of the trial judge’s courtroom and standing with his hands on his hips, staring at Mr. Smart.
The foregoing reflects an extraordinary effort on behalf of Judge Del Rio to assist the female complainant who was a personal friend. His conduct reflected clear prejudice against the defendant and open disregard for the rule of judicial impartiality. It was also violative of Canons 4 and 5, and especially Canon 13 of the Canons of Judicial Ethics.
Another example where personal treatment occurred through the use of respondent’s judicial office and its prestige, as alleged in paragraph 18 of the complaint, involved a traffic ticket that was issued to a friend of the Judge on January 15, 1975. Ms. Julia Marie Garwood was driving the Judge’s car and the Judge was a passenger. She made an alleged prohibited left turn from eastbound Grand River on to northbound Woodward Avenue in Detroit. Upon being stopped, Judge Del Rio exited the car abruptly, announced who he was in an arrogant manner and attempted to explain why a traffic citation should not be issued. The Judge informed the police officers he had been in an accident and was on his way to a hospital. In direct contradiction, driver Garwood advised one of the officers in a separate conversation that she was lost because she was unfamiliar with the downtown area and was just driving around. She gave no indication that an accident had occurred or that she was proceeding to a hospital. A citation was issued.
Promptly thereafter, Judge Del Rio contacted the Commander of the First Precinct, Charles H. Jackson, and requested that he report to his chambers. The Judge explained to the Commander that someone else had been driving his car because he was in pain and was en route to the hospital. Judge Del Rio also mentioned another parking ticket involving his car and asserted that it was inappropriately issued. According to Commander Jackson, Judge Del Rio "indicated that he didn’t think that he should have to go to court on them and that if he and I wouldn’t resolve the matter, that he would deal with them in his own way”. Commander Jackson testified he felt that the Judge’s anger was directed toward the Police Department generally.
In order to resolve a conflict between the Department and the Judge, the Commander had the moving violation ticket cancelled. Commander Jackson, a police officer for 21 years, testified he never had such a request from any other judge. This sequence of events constituted "ticket-fixing” in clear violation of Canons 1 and 2 of the Code of Judicial Conduct.
The machinations involving the assignment of the case People v Irwin L Goldfarb, Case No. 75-52692, as alleged in paragraph 11 of the complaint, further exhibits improper use of his office by the Judge to benefit friends.
Mr. Goldfarb is a licensed bail bondsman and is associated with a bonding firm with offices one block from Recorder’s Court. He was charged in a complaint with assault and battery. On April 22, 1975, he was arraigned and demanded a jury trial before Judge Kadela, a visiting Recorder’s Court judge. The trial date was set for June 23, 1975. Recorder’s Court Rule 7, § 4, required this judge to retain the case for disposition on the scheduled date. Commencing Monday, May 12th, Judge Kadela, however, was absent from Recorder’s Court for approximately three weeks. On Friday morning, May 9th, Judge Del Rio was on his way to work when he saw the assistant prosecuting attorney assigned to Judge Kadela’s court and advised him on a street corner that the Goldfarb case would be tried Monday, May 12th and that he should have his witnesses present and ready to testify.
Norman Zemke, the attorney for Goldfarb, first received notification by telephone on May 9th that he should be in court the next Monday and ready to proceed with the Goldfarb case. Zemke later testified he had no knowledge of how the trial date for the case had been accelerated. On Monday, Judge Del Rio took the misdemeanor call for the absent Judge Kadela. Counsel Zemke, having just received notice the previous Friday of the change in scheduling, requested an adjournment. The adjournment was denied following this exchange:
"The Clerk: All parties step up in the Irwin Goldfarb case, 75-52692, charge assault and battery.
"Mr. Vickers: Miss Westbrooks.
"Mr. Zemke: May it please the court. I’d like to ask the court to adjourn this matter. It’s been scheduled for the * * * over to the 24th of June and I’m not able to have my witnesses here this morning.
"The Court (Judge Del Rio): All the people are here this morning, I don’t see what the problem is.
"Mr. Zemke: Pardon, your Honor?
"The Court: I don’t see what the problem is. I think I can weed through this one with or without some more witnesses.
"Mr. Zemke: All right.
"The Court: Most of them have accumulative [sic] testimony anyhow.”
Although Zemke had originally requested a jury trial, it was then waived and a bench trial was conducted. The prosecutor presented the complaining witness as well as another witness. Mr. Goldfarb took the stand and denied the allegation.
Judge Del Rio withheld his determination, but later prepared a written opinion finding Mr. Goldfarb not guilty. Mr. Vickers, an assistant prosecuting attorney who had handled thousands of misdemeanor cases, later testified he recalled but one other written opinion involving a misdemeanor case.
Judge Del Rio’s actions regarding this case clearly create an appearance of the use of his office for the benefit of acquaintances. Although he was not the regularly assigned trial judge he was obviously cognizant of the matter; contacted counsel before he would temporarily replace Judge Kadela for one day; with little notice to either counsel and at the request of neither advanced the trial date to the first day of Judge Kadela’s absence (when Judge Del Rio would conveniently be presiding); proceeded with the trial over the objection of the defense counsel and then dismissed the charge. By using his office to benefit friends, Judge Del Rio violated Canons 1 and 2 of the Code of Judicial Conduct.
3. Conduct Giving Rise To The Appearance And Substance Of Impropriety And Partiality
The attempt to secure the transfer of the case of People v Ronald Garrett, on May 28, 1975, and subsequent events, as alleged in paragraphs 9 and 10 of the complaint, clearly reflect a serious lack of judicial propriety and the presence of partiality. Ronald Garrett was charged with possession of heroin with the intent to deliver and possession of heroin. His case was assigned to Judge Geraldine Bledsoe Ford and was set for trial. On May 28, 1975, Attorney Milton Henry requested that Judge Del Rio assist him in having the case transferred from the docket of Judge Ford to his own docket. Judge Del Rio agreed. His clerk supplied Henry with a transfer order form. This transfer form required the signatures of both the judge to whom the case was assigned as well as the signature of the judge to whom the case was to be transferred. Judge Del Rio’s signature appeared on the proposed stipulation.
Mr. Henry took the order to Judge Ford’s courtroom to obtain her signature. After considering the request, Judge Ford declined to sign the transfer order and rejected the request. Later on the same day, Wednesday, May 28, 1975, at the monthly judges’ meeting, Judge Del Rio personally presented the same order to Judge Ford and requested that she sign it so that the case could be transferred to him. In making his request, Judge Del Rio urged Judge Ford to reconsider, stating, "other judges transfer their cases to me”. Judge Ford again refused. She later testified at no other time had she ever been approached by another judge to have a specific case transferred from her docket to another judge’s docket.
The partiality and impropriety of this transfer attempt is brought into clear focus by what transpired that same evening (May 28, 1975). During that evening, Judge Del Rio, at the request of counsel Henry, personally accompanied Henry to the First Precinct of the Detroit Police Department to secure the release of the same Ronald Garrett, who had been arrested earlier that evening on the separate charge of resisting and obstructing a police officer. Upon securing Garrett’s release, Mr. Garrett, Mr. Henry and Judge Del Rio together, in the process of leaving the headquarters, alighted from an elevator when defendant Garrett sighted Sergeant Robert Michalek standing at the station desk. Garrett shouted an obscenity and pointed to Sergeant Michalek as the officer who took his "license off the wall”. Garrett, Henry and Judge Del Rio approached Michalek and entered into an acrimonious confrontation with him. Judge Del Rio grabbed Sergeant Michalek’s shoul der, spun him around and poked him in the chest. According to Sergeant Michalek, as corroborated by Officer Lionel Dickens, the following conversation transpired between Judge Del Rio and Michalek:
"I’ll touch you or push you around any time I want to. As a matter of fact, court is now in session. You’re in my courtroom, and if you open up your mouth I’m going to hold you in contempt of court.
"And he said, 'Did you take anything from this man’s property?’
"I said, 'Not today.’
"And I said, T took a license.’
"And he said, 'Well, I order you to return the man’s license.’
"And I said, 'I’ll have to contact somebody from the Legal Department.’
"He said, 'I’m ordering you to return that man’s license, and keep your mouth shut or else I told you I’m going to hold you in contempt of court.’ ”
Thereafter, the three left the precinct station together. The impropriety and partiality of these events are obvious. Judge Del Rio was in clear violation of Canons 1, 2 and 3A(3) of the Code of Judicial Conduct. He also clearly abused his contempt power.
In another episode, as alleged in paragraph 20 of the complaint, Judge Del Rio gave the appearance of judicial impropriety by his harassment of a police officer. In its recommendation to the Court, the Commission found:
"Respondent had presided over a narcotics case in which one of the original three codefendants was Gloria Jean Bobo. The charges against Miss Bobo were dis missed at a preliminary examination before another judge.
"Judge Del Rio was talking to Lt. Richard Reese and officer Geoffrey Taft, of the Police Department’s Internal Affairs Section, with regard to another matter. In the course of the conversation, respondent got into a discussion about Scott and Coleman who had been codefendants in Miss Bobo’s case. Respondent in a fit of boastfulness recalled he had met Miss Bobo in a bar and thereafter spent the night with her. He went on to say that 'she was a foxy little bitch * * * and she was a good piece of ass’.
"Lt. Reese was quite surprised and chagrined tó hear a judge boasting of his sexual participation with a former criminal defendant. As a result, he prepared a memorandum about the incident which he forwarded to his superiors.
"Respondent learned of this memorandum and exhibited his vindictiveness by improper and heavy-handed efforts to impair Reese’s credibility and impede his police career. Reese, nevertheless, had the fortitude to reaffirm by testimony before the Master what he had placed in his memorandum on the date the incident occurred * * * .”
Once again, Judge Del Rio’s conduct gives rise to the appearance of judicial impropriety in clear violation of Canons 1 and 2 of the Code of Judicial Conduct.
The record is replete with other examples of misconduct by Judge Del Rio which give rise to both the appearance and substance of impropriety and partiality. These transactions involve:
(1) ex parte communications with a complaining witness just before a bench trial;
(2) improper involvement in the case assignment process in order to transfer a specific case in which the Judge had some interest;
(3) and oral statements expressing his opinion that a particular defendant was guilty before the bench trial even occurred.
The litany of such improper transactions deeply shocks this Court’s sense of judicial decorum.
The actions of Judge Del Rio concerning the remission of forfeited bail bonds, as alleged in the amended complaint, also reflect impropriety and partiality.
Between May 4, 1974, and September 11, 1974, a total of 44 ex parte orders were approved by Judge Del Rio remitting approximately $40,000 to Charles B. and Irwin L. Goldfarb, professional bondsmen. Several key factors permeate these transactions:
1. Each of the bail bonds had been originally forfeited under a judgment of forfeiture entered by a judge of the Recorder’s Court other than Judge Del Rio. None of the cases was transferred by written order from the original judge to Judge Del Rio as required by Recorder’s Court Rule 16, § 11. No one could explain how all the files found their way to Judge Del Rio’s courtroom. By such action, Judge Del Rio usurped the jurisdiction of the original judge and entered orders setting aside bond forfeitures that the original judge had explicitly ordered. This violated MCLA 726.2; MSA 27.3552, which provides: " * * * n0 judge of said court shall review or revise any order, judgment, sentence or act of any other judge of said court, involving the personal discretion, judgment or opinion of such other judge”. In an effort to ascer tain the circumstances under which the remission orders were entered, the bondsmen, Charles Goldfarb, and his attorney were subpoenaed. Both refused to answer pertinent questions; rather, they invoked their Fifth Amendment right or their lawyer-client privilege.
2. Every order setting aside a bond forfeiture and remitting the bail previously transferred to the general fund of the Wayne County Treasurer was effectuated on an ex parte basis. No notice was given to the prosecuting attorney as required by GCR 1963, 772.4. Nor was appropriate notice given to the corporation counsel. The requirement that a praecipe be filed pursuant to Recorder’s Court Rule 18, § 3, was also ignored. Accordingly, approximately $40,000 of county funds were ordered remitted without either notice to the county or consultation with the county.
3. Furthermore, the proceedings in which nearly all of these orders were approved were conducted on weekends on a wholesale basis when court was not normally in session. On Saturday, May 4, 1974, six orders were approved; on Saturday, June 15, 1974, 23 orders were signed; and on Sunday, September 8, 1974, 10 orders were approved, involving a total refund of nearly $37,000. The regular motion day for Recorder’s Court is Tuesday. Recorder’s Court Rule 18, § 2. The entry of such orders on weekends precluded the possible presence, even inadvertently, of a representative from the prosecutor’s office or a member of the public.
4. Approximately 40 of the 44 original orders of forfeiture were entered in 1969 or before. No reasons were given for the substantial delay in filing most of these petitions. Nor was any application made before the appropriate judge.
5. In four of the cases, specific petitions to set aside the bond forfeiture and remit the bond penalty had been denied previously by the very judge who had approved the forfeiture initially. In one case, a return of funds was ordered even though neither Charles nor Irwin Goldfarb had posted the bond in the first instance. Obviously, this reflects haste, pre-arrangement and lack of impartial attention. It is no surprise that not one of 44 petitions to set aside bond forfeitures and remit the penalty submitted by the Goldfarbs or their agents was denied by Judge Del Rio.
Irrespective of the possible merits of the individual petitions, the unlawful manner and clandestine method in which these motions were handled by Judge Del Rio, in consort with Charles Goldfarb, is clearly partial and improper.
Impartiality, although a difficult goal to achieve with perfection, must be relentlessly pursued in order to insure the rendering of fair, just determinations and to enhance public confidence in the judiciary.
In the Matter of Spitalnick, 63 NJ 429, 431; 308 A2d 1 (1973), the Supreme Court of New Jersey found that a judge had attempted to "fix” a traffic ticket for a former client. The Court’s opinion stated:
"Significantly, he acted without regard for the plain requirements of the law which he was sworn to uphold. His conduct did violence to the fundamental principle of disinterested justice which is the bulwark of our judicial system.”
In another recent case, In re Diener, 268 Md 659, 671; 304 A2d 587 (1973), cert den, 415 US 989 (1974), the Maryland Supreme Court addressed itself to the situation of a judge having failed to scrupulously adhere to the principles of impartiality:
"We have not the smallest doubt, however, that the disposition of cases for reasons other than an honest appraisal of the facts and the law, as disclosed by the evidence presented, will amount to conduct prejudicial to the proper administration of justice whenever and however it may be defined or whoever does the defining.”
The high standards of impartiality required and expected of judicial officers in this state will not countenance favoritism. As was stated In re Bolte, 97 App Div 551, 574; 90 NYS 499 (1904):
"Favoritism in the performance of judicial duties constitutes corruption as disastrous in its consequence as if the judicial officer received and was moved by a bribe.”
4. Gross Lack of Judicial Temperament
The Code of Judicial Conduct now in effect states:
"A judge should be patient, dignified, and courteous to litigants, jurors, witnesses, lawyers, and others with whom he deals in his official capacity, and should require similar conduct of lawyers, and of his staff, court officials, and others subject to his direction and control.” Canon 3A(3).
"A judge should respect and observe the law and should conduct himself at all times in a manner that promotes public confidence in the integrity and impartiality of the judiciary.” Canon 2B.
The Canons of Judicial Ethics, effective until October 1, 1974, stated:
"Essential Conduct.
"A judge should be temperate, attentive, patient, impartial, and since he is to administer the law and apply it to the facts, he should be studious of the principles of the law and diligent in endeavoring to ascertain the facts.” Canon 5.
"Consideration for Jurors and Others.
"A judge should be considerate of jurors, witnesses and others in attendance upon the court.” Canon 9.
"Courtesy and Civility.
"A judge should be courteous to counsel, especially to those who are young and inexperienced, and also to all others appearing or concerned in the administration of justice in the court.
"He should also require, and, so far as his power extends, enforce on the part of clerks, court officers and counsel civility and courtesy to the court and to the jurors, witnesses, litigants and others having business in the court.” Canon 10.
Proper judicial temperament is an essential ingredient in the dispensation and administration of justice. It is displayed when a judge discharges his duties in a professional manner with patience, courtesy and dignity.
Among other allegations, Judge Del Rio was charged with having repeatedly and persistently (1) "subjected counsel, spectators, litigants and witnesses appearing before him to discourtesy, harassment, unjust criticism and abuse”; (2) "abused the power of contempt inherent in his office”; (3) "been intemperate, discourteous and injudicious” toward members of the general public.
Upon a total review of these assertions, although some isolated incidents are without merit, Judge Del Rio’s activities when evaluated in toto create a pattern of conduct and temperament totally unbecoming a member of the judiciary.
The following incidents involving respondent serve to illustrate his gross lack of judicial temperament, as alleged in paragraph 15 of the complaint.
In June, 1974, Robert Horn, an assistant prosecuting attorney, was trying a rape case in front of Judge Del Rio without a jury. The Judge persisted in talking on the telephone while on the bench during critical testimony from the complainant and the second witness. Mr. Horn respectfully requested the Judge to devote his full attention to the testimony. Judge Del Rio became enraged. He ordered Mr. Horn into his chambers and then proceeded to inflict upon the prosecutor an unwarranted and insulting tongue-lashing, while threatening him with contempt. Thereafter, he announced on the record in open court that he was going to seek to remove counsel from the case. Although he allowed the prosecutor to complete his case, Judge Del Rio addressed numerous critical and humiliating remarks toward counsel. At the close of the case, he ordered Mr. Horn never to, return to his court.
Shortly after leaving the courtroom, upon the request of the complainant, Mr. Horn returned to obtain police protection for her. But before he could make such a request and explain his reason, he was arrested and placed in the prisoners’ box upon Judge Del Rio’s demand; he remained there for over 30 minutes before his superiors procured his release.
On another occasion, Terrance Boyle, an assistant prosecuting attorney, was directed by Judge Del Rio to deliver a vulgar and belligerent message to the Wayne County Prosecutor. Judge Del Rio also threatened Mr. Boyle and his wife, who was then also an assistant prosecuting attorney, with political pressure if they should ever decide to seek public office. He declared he would "do everything to defeat you and I’ve never lost on a matter like that”.
In yet another episode, Mr. Michael Sapala, a defense attorney, attempted to serve a notice of appeal on Judge Del Rio as a favor to another lawyer. The Judge first ordered counsel to remain in the courtroom and later had him brought back into chambers. He berated the lawyer for approximately one-half hour and then told him to keep out of his court. Subsequently, the Judge referred to this lawyer sarcastically in public and warned him that if he testified at the judicial tenure hearing, the Judge’s lawyer "would take care of him”.
Another defense attorney, Elizabeth Jacobs, was in Judge Del Rio’s chambers on one occasion when he boasted about his sex life. Later, on another occasion, Ms. Jacobs was called for a bench conference while court was in session, whereupon Judge Del Rio asked her for a date. She declined the offer. Thereafter, whenever she appeared before the Judge, she was often treated with disdain.
A final example of respondent’s intemperate attitude toward counsel was appropriately set forth by the Commission:
"Patricia Boyle, previously an assistant prosecuting attorney in charge of appeals, is currently a Recorder’s Court judge. She, like her husband, Terry Boyle, assistant prosecuting attorney, was caustically abused by the respondent.
"Judge Del Rio apparently viewed any appeal of his decisions by the prosecutor’s office as personal attacks on his character. He many times threatened and attempted to intimidate Mrs. Boyle in the pursuit of her assigned tasks. At one point, Judge Del Rio told her superior, T want you to explain to this honkie bitch who I am, and I want her to understand that I’ll not put up with any bullshit ego trips of somebody in the prosecutor’s office.’
"Judge Del Rio frequently attempted to use his judicial position to circumvent and obstruct Mrs. Boyle in the discharge of her official duties. He even stated that irrespective of what the Court of Appeals did with a particular case, when it returned to his court, he would see that it would turn out the way he wanted it to. At one point he said to Mrs. Boyle: 'I know a lot about you, and I know a lot about your husband, and I’ve got a lot on both of you, and I want you to understand that if you keep this up, you’re going to regret it because I see a lot and I know a lot and you’ll be sorry for what you are doing.’ ”
The foregoing incident stands unrebutted.
One of Judge Del Rio’s favorite tactics is to brandish, threaten and invoke unnecessarily the awesome power of contempt. The failure to use this ultimate power with restraint in order to maintain decorum reflects conduct unbecoming a judicial officer. We have already noted his abuse of the contempt power in a police station as well as various other episodes within the confines of the courtroom.
Additional proofs were adduced which support the allegations set forth in paragraph 16 of the complaint that the respondent improperly used his contempt power. For example, defense attorney Thomas McGuire was the object of the Judge’s wrath when he could not secure the presence of his client at a pretrial hearing, which was rescheduled from a previous date. McGuire was held in the prisoners’ box for nearly one hour at the Judge’s command.
On another occasion, in order to emphasize the importance of maintaining decorum in a courtroom, Judge Del Rio ordered an 11-year-old student to be locked up alone for a half-hour in the bullpen for causing a disturbance in the courtroom during a school field-trip visit.
Persons who may be categorized as members of the general public, as alleged in paragraph 21, have also faced the wrath and scorn of Judge Del Rio. The record indicates that on several occasions the Judge abused members of the media by communicating with them in a manner unbecoming his office.
The California Supreme Court recently addressed itself to a case involving judicial temperament and the abuse of the power of contempt. In Cannon v Commission on Judicial Qualifications, 14 Cal 3d 678, 702, fn 19; 122 Cal Rptr 778; 537 P2d 898 (1975), that court adopted the commission’s conclusion:
"Petitioner’s conduct was arbitrary, unreasonable and in bad faith, and constituted wilful misconduct in office. Petitioner not only used profane, abusive and inexcusable language, but she also misused the authority of her office by ordering persons to appear in her court where no matters were pending requiring their attendance and by directing her bailiffs to use force if they attempted to leave.”
Also, in McCartney v Commission on Judicial Qualifications, 12 Cal 3d 512, 534; 116 Cal Rptr 260; 526 P2d 268 (1974), that court held:
"we further conclude that the conduct which has prejudiced the administration of justice and cast the judicial office into disrepute, is petitioner’s proven intemperance with court personnel, defendants in criminal cases, and attorneys.”
The responsibility of judicial officers, with respect to handling litigants, counsel and all who may appear before them was also addressed in Peterson v Knutson, 305 Minn 53, 58-59; 233 NW2d 716, 719 (1975):
"The charge that one called upon to exercise judicial responsibility is biased, abusive, or unfair, is one which must always be considered carefully. This is so because the major responsibilities which have been entrusted to our judiciary cannot be adequately discharged without public support based upon a widespread confidence and popularly shared belief that judges treat all those coming before them fairly, courteously, respectfully, and without prejudice. As a matter of duty, judges must so treat all parties before them regardless of the identity of the parties, the nature of the problems they are called upon to deal with, or any other consideration.”
It was stated by the Supreme Court of Oklahoma over 50 years ago:
"It is a matter of profound regret when a man is elected to office that he should forget that he is chosen by the people to be a servant for them in the administration of the affairs of the office, and that he should forget to be courteous and reasonable with persons having business with the office, and that he should assume an austere, egotistical, dogmatic, and tyrannical attitude toward the public and those assisting him in the administration of the office.” Robberson v Noble County Board of Commissioners, 109 Okla 249, 252; 235 P 525 (1924).
By his actions and conduct, Judge James Del Rio forgot he was chosen by the people to be their servant. On an habitual basis he forgot to be courteous and reasonable with persons having business with his judicial office. The canons and code set fair standards for judicial temperament; Judge Del Rio repeatedly chose to violate them. Judge Del Rio, a master of intimidation, displays through his bizarre behavior a gross lack of judicial temperament.
By his actions Judge Del Rio disregarded statutes, court rules and canons, improperly used his office to benefit friends, gave rise to the appearance and substance of impropriety and partiality, and displayed gross lack of judicial temperament. The cumulative effect of all such conduct constitutes misconduct in office and is conduct clearly prejudicial to the administration of justice.
Conclusion
"For unto whomsoever much is given, of him shall be much required: and to whom men have committed much, of him they will ask the more.” Luke 12:48.
The opinion of this Court has dwelt at length on both the procedural and substantive issues raised by the respondent, and rightfully so. However, looking beyond all the technical legal issues, we perceive the real issue in this case to be the preservation of the integrity of the judicial system.
The functions and decisions of a judge have an incalculable impact on the community at large. A citizen’s experience with the law is often confined to contact with the courts. Therefore, it is important not only that the integrity of the judiciary be preserved but that the appearance of that integrity be maintained.
Francis Bacon, in Of Judicature, spoke to this very issue in the 16th Century:
"The place of justice is a hallowed place and therefore not only the Bench, but the foot-pace and precincts and purpose thereof ought to be preserved without scandal and corruption.” (See Works of Lord Bacon [Murphy, ed, 1876], p 59.)
In Roy v Jones, supra, 319, the court made a similar observation quoting In re Greenberg, 442 Pa 411, 415; 280 A2d 370 (1971), and Tamm, Are Courts Going the Way of the Dinosaur?, 57 ABA J 229 (March, 1971):
"For generations before and since it has been taught that a judge must possess the confidence of the community; that he must not only be independent and honest, but, equally important, believed by all men to be independent and honest. Á cloud of witnesses testify that 'justice must not only be done, it must be seen to be done.’ Without the appearance as well as the fact of justice, respect for the law vanishes in a democracy.”
Judge Del Rio has seen fit to flout the sacred office which was entrusted to his stewardship by the public. And, by doing so, he has not only brought disgrace upon himself and his court, but he has given the public pause to question the very cornerstone of our democracy: an honest and independent judiciary.
As Chief Justice Marshall stated in Marbury v Madison, 5 US (1 Cranch) 137; 2 L Ed 60 (1803), it is, "emphatically, the province and duty of the judicial department, to say what the law is”. But then the question arises "Who shall keep the keepers?” Juvenal, The Satires, book 6, line 347. ("Quis custodiet ipsos custodes?”) Who shall be responsible for putting the judiciary’s house in order? Keiser v Bell, supra, 623.
The Michigan Constitution of 1963, art 6, § 30, vests this solemn responsibility in our Supreme Court. Our Court, pursuant to this authority, has passed GCR 1963, 932. This court rule establishes an orderly process through which this Court can effectively police abuses by members of the judiciary and thus effectively "put our own house in order”.
It is through this rule and its orderly procedures that the truth about the excesses of Judge Del Rio was brought to our attention. Therefore, pursuant to the authority vested in us by the Constitution and GCR 1963, 932, we order that Judge Del Rio shall not sit as a judge in a Michigan state court until the expiration of this suspension. That suspension shall expire five years from the date of this decision. During his suspension, Judge Del Rio shall receive no judicial salary. Furthermore, this order shall apply regardless of respondent’s possible re-election to his present judicial office or election to any other state judicial office. Pursuant to GCR 1963, 866, the clerk of this Court is ordered to issue final process immediately upon the release of this opinion.
Coleman, Fitzgerald, Blair Moody, Jr., and Williams, JJ., concurred.
Kavanagh, C. J., and Levin, J., concurred in the result.
Addendum
Const 1963, art 6, § 30, which established the Judicial Tenure Commission in 1968, provides:
"(1) A judicial tenure commission is established consisting of nine persons selected for three-year terms as follows: Four members shall be judges elected by the judges of the courts in which they serve; one shall be a court of appeals judge, one a circuit judge, one a probate judge and one a judge of a court of limited jurisdiction. Three shall be members of the state bar who shall be elected by the members of the state bar of whom one shall be a judge and two shall not be judges. Two shall be appointed by the governor; the members appointed by the governor shall not be judges, retired judges or members of the state bar. Terms shall be staggered as provided by rule of the supreme court. Vacancies shall be filled by the appointing power.
"(2) On recommendation of the judicial tenure commission, the supreme court may censure, suspend with or without salary, retire or remove a judge for conviction of a felony, physical or mental disability which prevents the performance of judicial duties, misconduct in office, persistent failure to perform his duties, habitual intemperance or conduct that is clearly prejudicial to the administration of justice. The supreme court shall make rules implementing this section and providing for confidentiality and privilege of proceedings.”
In re Somers, 384 Mich 320, 323; 182 NW2d 341 (1971).
Judge Del Rio is suspended for the final 17 months of his present term which expires January 1, 1979. Should he be re-elected to a subsequent term he is suspended for the first 43 months of that term. In effect then Judge Del Rio cannot sit as a judge by election or appointment until July of 1982. During this period he cannot receive any judicial salary.
There is ample precedent for suspending a judge beyond his present term of office. See, In the Matter of Mikesell, 396 Mich 517; 243 NW2d 86 (1976). Also see; State ex rel Williams v Haworth, 551 P2d 676, 679 (Okla Ct on Judiciary, App Div, 1976). See generally, Anno: Power of Court to Remove or Suspend Judge, 53 ALR3d 882.
"Upon notice to respondent, the commission may petition to the Supreme Court for an order suspending a judge from acting as a judge pending final adjudication of a pending complaint.”
Huff establishes, inter alia, that the right of the people of a judicial circuit to the service of a judge whom they have elected is subject to express and distinct limitations and qualifications provided for by the Constitution and statutes.
It is well settled that parties to judicial or guasi-judicial proceedings, including administrative proceedings, are not entitled to discovery as a matter of constitutional right. National Labor Relations Board v Valley Mold Co, Inc, 530 F2d 693, 695 (CA 6, 1976); NLRB v Interboro Contractors, Inc, 432 F2d 854, 857-858 (CA 2 1970), cert den 402 US 915 (1971); Starr v Commissioner of Internal Revenue, 226 F2d 721, 722 (CA 7, 1955), cert den, 350 US 993 (1956).
"Before filing a complaint or recommending an order of private censure, the commission shall give written notice to the judge of the nature of the charges being made against him and he shall be afforded a reasonable opportunity to present in writing such matters as he may choose for consideration by the commission.”
The Wolverine Bar Association discusses this issue at length in its amicus curiae brief.
In re Somers, supra; GCR 1963, 932.25.
For example, People v Arthur Acosta and Julian Acosta, Case No. 73-02431; People v Willie Lee Jackson, Case No. 74-02503; People v James Alter, Case No. 75-03099.
For example, People v Joseph Please, Case No. 73-54792.
Canons of Judicial Ethics (applicable prior to October 1, 1974):
"Judicial Canon 4. Avoidance of Impropriety.
"A judge’s official conduct should be free from impropriety and the appearance of impropriety; he should avoid infractions of law; and his personal behavior, not only upon the bench and in the performance of judicial duties, but also in his everyday life, should be beyond reproach.”
"Judicial Canon 5. Essential Conduct.
"A judge should be temperate, attentive, patient, impartial, and since he is to administer the law and apply it to the facts, he should be studious of the principles of the law and diligent in endeavoring to ascertain the facts.”
"Judicial Canon 13. Kinship or Influence.
"A judge should not act in a controversy where a near relative is a party; he should not suffer his conduct to justify the impression that any person can improperly influence him or unduly enjoy his favor, or that he is affected by the kinship, rank, position or influence of any party or other person.”
The parking violation was not prosecuted. While Judge Del Rio had good reason to question this citation, his manner was inappropriate.
Code of Judicial Conduct (effective October 1, 1974):
"CANON 1.
"A Judge Should Uphold the Integrity and Independence of the Judiciary.
"An independent and honorable judiciary is indispensable to justice in our society. A judge should participate in establishing, maintaining, and enforcing, and should himself observe, high standards of conduct so that the integrity and independence of the judiciary may be preserved. A judge should always be aware that the judicial system is for the benefit of the litigant and the public, not the judiciary. The provisions of this Code should be construed and applied to further those objectives.”
"CANON 2.
"A Judge Should Avoid Impropriety and the Appearance of Impropriety in All His Activities.
"A. Public confidence in the judiciary is eroded by irresponsible or improper conduct by judges. A judge must avoid all impropriety and appearance of impropriety. He must expect to be the subject of constant public scrutiny. He must therefore accept restrictions on his conduct that might be viewed as burdensome by the ordinary citizen and should do so freely and willingly.
"B. A judge should respect and observe the law and should conduct himself at all times in a manner that promotes public confidence in the integrity and impartiality of the judiciary.
"C. A judge should not allow his family, social, or other relationships to influence his judicial conduct or judgment. He should not use the prestige of his office to advance the business interests of himself or others. He should not appear as a witness in a court proceeding unless subpoenaed.
"D. A judge may respond to requests for personal references.”
See Canons 1 and 2, supra.
See Canons 1 and 2, supra; Canon 3A(3), infra.
The appearance of judicial impropriety primarily relates to the intimidation tactics and official abuse exhibited by the Judge in an abortive attempt to silence the officer. The distasteful language speaks for itself.
People v Joseph Please, supra; paragraph 8 of Formal Complaint No. 18.
People v Quinton Jackson, Case No. 74-03704; paragraph 13 of Formal Complaint No. 18.
People v Marcus Hoover, Case No. 73-07778; paragraph 23 of Formal Complaint No. 18.
Aside from the stated statute and court rules, these actions are violative of Canons 4, 5, 13 and 16 of the Canons of Judicial Ethics and Canons 1 and 2 of the Code of Judicial Conduct (when applicable).
" * * * He leaned over the bench and looked at me and said, 'Mr. Boyle, I asked to see the prosecutor, and I would prefer that Mr. Cahalan be down here because he understands these kinds of things. But as long as he sent you down here, I’ve got a message for you to take back to him. I’m telling you that you are his lieutenant and you’ve been saying some things and doing some things in this Jackson case, and you go back and you tell him that if any of his lieutenants shoots an arrow into me, I’ve got a tough hide, it will stick, and then I’m going to pull it out and I’m going to cram it up Bill Cahalan’s ass and then I’m going to break it off.’ ”
"And he said, 'Now do you understand me?’
"And I said, T think, Judge, we understand each other.’
"Whereupon he said, 'You’re just pissed off because a black man got a little bit of white pussy in this case. That’s all that matters.’
"I said, 'Judge, you’re wrong. What really matters is that there was a matter of absence of consent in the case.’
"And he said, 'Well, never mind. I’m just telling you. You carry that message to Cahalan. Do you think you can do that word-for-word?’
"And I said, 'Judge, I’ll convey that message to the Prosecutor for the County of Wayne word-for-word.’ ”
Michael Sapala testified:
"Q: What did he say?
"A: He called me a non-dues, mother-fucking white liberal. He said I would not have conducted myself in that manner before either Judge Ford or Judge Crockett, that I was treating him with absolute and total disrespect, that I had disrupted the orderly processes of his courtroom.
"During this time I asked him if he were going to find me in contempt. He did not respond to that. I asked him if I was free to go. He did not respond to that. He essentially went on for a half hour berating me.
"After some point in time, perhaps • fifteen or twenty minutes, another court officer came back and informed the Judge that there were two attorneys out there that ought to be present, because they wanted to represent me should I be in the position of being cited for contempt of court. And the Judge told his officers to refuse admittance to these two lawyers. Those lawyers being John Barkai and Neal Bush. I assume the officer did that, because those attorneys never came back. I continued to ask the Judge if I was in contempt of court, and he never responded. Finally, about a half hour, he just told me to get my ass out of his court.”
In a separate incident, Mr. Sapala testified that during a recess he overheard Judge Del Rio in the cafeteria of the Frank Murphy Hall of Justice, speak to a female juror assigned to a case in progress in front of him. He asked whether it would be all right if he were to call her when the case was over.
This Court concludes that the finding of the Judicial Tenure Commission regarding a separate occurrence involving different counsel, as alleged in paragraph 19 of the complaint, is essentially correct:
"Mr. Norman Lippitt, counsel for the Detroit Police Officers Association, on February 6, 1973, attempted to protect the rights of several police officers testifying in Judge Del Rio’s court. Immediately upon entering the courtroom, he was ordered back into the respondent’s chambers. In chambers, Mr. Lippitt and his associate counsel were subjected to an angry and irrational tirade by Judge Del Rio. Furthermore, respondent included in his outburst an ethnic slur and obscenity aimed at Mr. Lippitt and concluded with a challenge to a fist fight.”
The findings of the Judicial Tenure Commission with respect to this allegation are essentially correct and stated:
"Mr. Peter Waldmeir is a columnist for The Detroit News. An article for his newspaper apparently angered Judge Del Rio. Respondent phoned Mr. Waldmeir, verbally abused and threatened him and made vulgar and obscene remarks.
"Miss Judy Diebolt is a reporter for the Detroit Free Press. Judge Del Rio made baseless accusations about Miss Diebolt and subjected her to public discourtesies. Thereafter, he asked Miss Diebolt to come into his chambers where he engaged in an undignified harangue about her newspaper being racist and, further, warned her, 'not to fuck around with him’.
"Sometime thereafter, the respondent, in a mellower mood, asked Miss Diebolt for a date, which she refused. Judge Del Rio responded to her refusal with a tasteless and insulting inquiry as to whether she was a lesbian. Thereafter, whenever Miss Diebolt would come into court, the respondent would seize upon the opportunity to verbally embarrass and abuse her.” | [
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Blair Moody, Jr.,
J. The issue in the case at bar is limited to whether a federation (union) of public school teachers may be held liable in tort by a public school district for alleged monetary damages incurred as a result of a peaceful strike prohibited by the public employment relations act (PERA), MCLA 423.201 et seq.; MSA 17.455(1) et seq.
We hold that plaintiff-appellant school district is barred from suing defendant-appellee federations for damages under any of the traditional common-law tort theories asserted infra. We arrive at this conclusion for basically three reasons.
First and foremost, after a careful study of both the specific language and the history of the PERA, we are convinced that the Legislature intended the PERA to occupy the public labor relations field completely in this context. Accordingly, except for the historical equitable relief of injunction, the remedies of discipline-discharge provided for under § 6 of the PERA are intended to be the sole and exclusive remedies available to a school district in dealing with a peaceful strike by a teachers’ federation.
Secondly, upon careful examination of existing Michigan case law, we find no applicable precedent for the cause of action pled by plaintiff school district. Michigan common law provides no founda tion for the remedy sought under these circumstances.
Finally, we are convinced that public policy considerations interdict the creation of a new cause of action, which would unsettle an already precarious labor-management balance in the public labor relations sector.
Accordingly, we affirm both the circuit court and the Court of Appeals.
I — Facts
There is no material dispute as to the facts in the instant case. This is an appeal by plaintiff-appellant Lamphere Schools (hereinafter "school district”) from a trial court order granting the defendants-appellees’ motion for summary judgment and dismissing the school district’s complaint for failure to state a cause of action.
Plaintiff school district reinstituted suit on December 4, 1974, against the following defendantsappellees: the Lamphere Federation of Teachers as the collective bargaining representative of the teachers employed by the school district; Allan Coulter as President of the Lamphere Federation; the Michigan Federation of Teachers; and Arsch Derbabian as agent and representative of the Michigan Federation (hereinafter "federations”). The school district sought to recover in tort both compensatory and punitive damages for two strikes conducted by the teachers in September and October of 1973. The predecessor to this case was initiated on September 10, 1973, dismissed without prejudice for reasons not pertinent here, and then refiled.
In January, 1975, the defendant federations filed a motion for summary judgment pursuant to GCR 1963, 117.2(1), alleging that the school district’s complaint failed to state a cause of action. The motion was granted by the Oakland Circuit Court on February 5, 1975, and an order of dismissal was entered accordingly on February 14, 1975. The Court of Appeals affirmed the trial court’s decision on February 10, 1976. 67 Mich App 331; 240 NW2d 792 (1976). This Court granted leave to appeal on May 27, 1976.
Briefly stated, the plaintiff school district and defendant federations were parties to a collective bargaining agreement covering the approximately 270 teachers employed by the school district. Prior to the expiration of that agreement on September 3, 1973, the parties commenced negotiations for a successor agreement. However, they had not reached agreement by September 3, 1973. The teachers, thereafter, went out on strike and stayed out from September 4, 1973, through September 24, 1973. No classes were conducted during the strike.
The teachers returned to their teaching duties on September 25, 1973, pursuant to an injunction obtained in a separate action filed by a student’s parent in the Oakland Circuit Court. The teachers briefly renewed their strike on October 15, 1973, but returned to work the next day, following an order issued by the court to show cause why the teachers should not be held in contempt.
The terms for a successor collective bargaining agreement were ultimately reached and the agreement was signed in February of 1974. The injunction was dissolved. However, this tort suit was independent of the injunctive action and was expressly left standing by the successor agreement.
The school district alleged in its complaint that the conduct of the aforementioned federations caused substantial damages to the school district. Count I of the complaint asserted that the federations, by their conduct, caused their member-teachers to strike contrary to an alleged common-law duty. Count II alleged that the conduct of the federations in recommending and subsequently calling the strike constituted a tortious interference with existing individual contractual relationships between the school district and its teachers. Count III of the complaint asserted a claim of recovery for civil conspiracy against the federations for planning and implementing the strike in violation of the PERA.
II — The PERA: Language, Intent, History
It is axiomatic that in resolving an issue involving any statutory schema, this Court will first look to the specific language of the statute itself. Dussia v Monroe County Employees Retirement System, 386 Mich 244; 191 NW2d 307 (1971). Furthermore, in interpreting a statute, this Court has the duty to ascertain and declare the intention of the Legislature; that intention, once ascertained, is then controlling. Aikens v Department of Conservation, 387 Mich 495; 198 NW2d 304 (1972).
In determining whether a public school district can maintain a civil tort action against the federations representing its teachers, where the federations allegedly precipitated a strike in violation of the statutory prohibition, this Court must examine the specific language and history of the PERA.
The purpose of the PERA, 1947 PA 336, as amended by 1965 PA 379, is well stated in the title of the statute:
"AN ACT to prohibit strikes by certain public em ployees; to provide review from disciplinary action with respect thereto; to provide for the mediation of grievances and the holding of elections; to declare and protect the rights and privileges of public employees; and to prescribe means of enforcement and penalties for the violation of the provisions of this act. (Emphasis added, footnote omitted.)
Thus, it requires little extrapolation to ascertain the Legislature’s intent in enacting the PERA. The Legislature intended to proscribe strikes by public employees and to prescribe the means of enforcement and penalties for such strikes.
The plaintiff school district does not deny that the Legislature intended to prescribe the remedies for illegal strikes by public employees such as teachers. Rather, in a bifurcated argument, the school district maintains that remedies provided for by the PERA were not intended to be the exclusive remedies for illegal teachers’ strikes when precipitated by teachers’ federations. Furthermore, the school district claims that the PERA remedies in fact provide school districts with no remedies whatsoever against teachers’ federations which foment teachers’ strikes. Therefore, plaintiff asserts that school districts should be allowed to maintain the aforementioned common-law tort actions against teachers’ federations which precipitate such strikes.
However, when we review the extensive enforce ment procedures regarding illegal teachers’ strikes as outlined in § 6 of the PERA, we find that the act’s careful wording does indeed provide for exclusive, after-the-fact statutory remedies as to both teachers and their federations for participation in such strikes:
"Notwithstanding the provisions of any other law, any person holding such a position who, by concerted action with others, and without the lawful approval of his superior, wilfully absents himself from his position, or abstains in whole or in part from the full, faithful and proper performance of his duties for the purpose of inducing, influencing or coercing a change in the conditions or compensation, or the rights, privileges or obligations of employment shall be deemed to be on strike but the person, upon request, shall be entitled to a determination as to whether he did violate the provisions of this act. The request shall be filed in writing, with the officer or body having power to remove or discipline such employee, within 10 days after regular compensation of such employee has ceased or other discipline has been imposed. In the event of such request, the officer or body shall within 10 days commence a proceeding for the determination of whether the provisions of this act have been violated by the public employee, in accordance with the law and regulations appropriate to a proceeding to remove the public employee. The proceedings shall be undertaken without unnecessary delay. The decision of the proceeding shall be made within 10 days. If the employee involved is held to have violated this law and his employment terminated or other discipline imposed, he shall have the right of review to the circuit court having jurisdiction of the parties, within 30 days from such decision, for determination whether such decision is supported by competent, material and substantial evidence on the whole record.” (Emphasis added.)
This Court discussed the exclusivity of § 6 sanctions in Rockwell v Crestwood School District Board of Education, 393 Mich 616; 227 NW2d 736 (1975). The issue in that case was whether school teachers who strike may be discharged without a prior hearing. The case turned upon the resolution of an alleged conflict between the PERA and the teachers’ tenure act. MCLA 38.101; MSA 15.2001.
Regarding the § 6 sanctions of the PERA, the majority opinion in Rockwell, in developing its conclusion, reasoned:
"Section 6 begins with the words ‘[notwithstanding the provisions of any other law’.
"The Legislature, recognizing the diversity of legislation concerning public employees, provided in § 6 a specific, unitary procedure for the discipline of public employees who strike superseding the diverse procedures applicable to different public employees where the basis for discipline is a ground other than striking.” Rockwell, supra, 628. (Emphasis added.)
Significantly, the dissenting opinion, although suggesting the PERA merely staked out a new statutory collective bargaining system coexisting with the old statutory system, noted:
"We also take note that the opinion of Justice Levin expresses a commendable concern that there be in Michigan under aegis of PERA/MERC, similar to the Federal pattern of NLRA/NLRB, a unitary procedure for the discipline of public employees who strike. This is a concern, as Justice Levin’s opinion points out, that this Court as a whole shares, and this specific opinion agrees with.” Rockwell, supra, 658.
It becomes evident that the full Court recognized that a unitary procedure for the discipline of public employees who strike would be salutary and was intended by legislative enactment. Although a difference of interpretation existed in that case regarding the priority of two. conflicting statutes, the underlying intention of the Legislature to create exclusive remedies by statute is made apparent.
Equitable relief, of course, always remains available via injunction. See the PERA § 16(h) and Holland School District v Holland Education Association, 380 Mich 314; 157 NW2d 206 (1968). But the foregoing emphasized language of §6 of the PERA reflects legislative intent that the statutorily permitted discipline-discharge should be the unitary and exclusive remedies available to public employers in dealing with illegal strikes by public employees in violation of the PERA’s § 2 strike prohibition.
Plaintiff school district, however, suggests that the § 6 remedies of the PERA were only intended to apply to the striking employees, not to their collective bargaining units through which they effectuate such strikes. The school district urges that we adopt a dualistic approach in interpreting the PERA’s §6 remedies and, accordingly, dichotomize the federation and its teachers. In other words, plaintiff school district requests that this Court construe the PERA and its § 6 remedies as applying only to the public employees but not their collective bargaining organizations. This is clearly a distinction without substance and one which could only lead to absurd results.
This Court, in Rockwell, declared the PERA to be the "dominant” and "governing” law regulating "public employee labor relations”:
"This Court has consistently construed the PERA as the dominant law regulating public employee labor relations.
"The supremacy of the provisions of the PERA is predicated on the Constitution (Const 1963, art 4, § 48) and the apparent legislative intent that the PERA be the governing law for public employee labor relations. ” 393 Mich 616, 629-630 (Emphasis added.)
To somehow infer from Rockwell or the PERA itself, that the PERA only applies to public employers and public employees, but not to the public employees’ bargaining units, is specious. The PERA clearly anticipates the existence of public employee labor organizations. The § 6 phrase, "concerted action with others” clearly implies the existence of and participation by unions. The word "concerted” is a term of art which has been consistently construed as referring to unionization. National Labor Relations Board v Erie Resistor Corp, 373 US 221; 83 S Ct 1139; 10 L Ed 2d 308 (1963).
Furthermore, the participation by public employees’ unions is either impliedly or explictly acknowledged throughout the various sections of the PERA. See, for example, "concerted failure to report for duty” in § 1; "collective bargaining” in §§ 7, 11, 12, 13, 14 and 15; "labor organization(s)” in §§ 9, 10 and 12. Hence, we reject the notion that the PERA, and specifically the § 6 remedies, only apply to and affect public employees individually, but not their collective bargaining units. The PERA was intended to occupy the public employee labor relations field completely; no viable distinction exists between the constituent public employees and their unions in this context. Therefore, along with the equitable relief of injunction, the §6 remedies of the PERA are presently the exclusive remedies available to plaintiff school district in the case at bar when confronted by an illegal, though peaceful, strike by the teachers, even if such strike was precipitated by defendant federations.
While we are convinced that both the specific language of the PERA and the underlying legislative intent of the PERA are sufficient to support our conclusion regarding the exclusivity of § 6 remedies, we believe the legislative history of the PERA serves to buttress our holding.
The PERA drastically altered public employee labor relations in Michigan by amending the Hutchinson Act, 1947 PA 336. The Hutchinson Act had prohibited public employees from engaging in collective bargaining. The PERA not only permitted collective bargaining by employees, see § 9, but it required public employers to negotiate with public employees’ bargaining units, see § 10.
Public employees, however, were still prohibited from striking, see § 2. Significantly, the Legislature deleted the only section, § 8, of the Hutchinson Act which permitted remedies against third parties, such as unions.
Former § 8 provided as follows:
"Any person not a public employee who shall knowingly incite, agitate, influence, coerce, or urge a public employee to strike shall be deemed to be guilty of a misdemeanor, and upon conviction shall be punished by imprisonment for not to exceed 1 year, or by a fine of not less than $100.00 nor more than $1,000.00, or both such fine and imprisonment in the discretion of the court.”
Even assuming arguendo that this section may have allowed for a civilly-enforceable duty under any of the three tort theories alleged by the school district supra, the Legislature’s flat-out elimination of § 8 bespeaks a conscious legislative intent to nullify even the remotest possibility of such actions, criminal or civil.
Hence, it once more becomes evident that our Legislature was not only concerned with specifying labor-management obligations in the PERA, but was pre-eminently concerned with providing the exclusive sanctions for any violations of those obligations.
Ill — MERC: Exclusive Jurisdiction
The Legislature saw fit to vest the authority for determining unfair labor practices under the PERA, see § 10, in the Michigan Employment Relations Commission (MERC). See PERA, § 16.
In Rockwell, supra, 637, this Court determined that striking teachers discharged pursuant to the § 6 remedies of the PERA may be entitled to reinstatement by MERC if it can be shown that their strike was precipitated by an employer’s unfair labor practice. This Court reasoned that despite the illegality of the teachers’ strike, the employer’s conduct may convert the economic strike into an unfair labor practice strike and thus permit reinstatement:
"Although a strike begins as an economic strike, if it is determined that the employer engaged in an unfair labor practice, the strike may be held to be an unfair labor practice strike and the striking employees entitled to reinstatement.”
Accordingly, under the Rockwell rationale, striking teachers may possess a potential defense to their discharge by a school district: namely, that they (the teachers) engaged in an illegal work stoppage because certain conduct by the employer school district constituted an unfair labor practice. See Mastro Plastics Corp v National Labor Relations Board, 350 US 270; 76 S Ct 349; 100 L Ed 309 (1956). The final determination regarding any alleged unfair labor practice and any subsequent reinstatement would be left to MERC, subject to judicial review.
The jurisdiction and authority of MERC to determine unfair labor practices were held by this Court to be exclusive. In Rockwell, supra, 630, this Court unequivocally stated:
"MERC alone has jurisdiction and administrative expertise to entertain and reconcile competing allegations of unfair labor practices and misconduct under the PERA.” (Emphasis added.)
The exclusive jurisdiction of MERC to determine unfair labor practice charges also has been acknowledged by this Court in Labor Mediation Board v Jackson County Road Commissioners, 365 Mich 645; 114 NW2d 183 (1962).
If this Court permitted plaintiff school district to pursue any of the three civil tort actions pled (causing teachers to breach a duty, tortious interference with existing individual contractual relationships, civil conspiracy), such a result would necessarily circumvent the authority of MERC to determine charges of unfair labor practices. This becomes apparent since the defendant federations, as representatives of the teachers, would inevitably defend proposed civil actions by alleging unfair labor practices. Then the determination of whether or not an unfair labor practice occurred would inexorably fall to the forum in which the tort action was brought — the circuit court.
Ignoring for the moment the other policy ramifications of reinvolving the circuit courts in the public labor relations sector (see part V), the jurisdiction of MERC would be seriously eroded. The circuit courts would be forced to make the same unfair labor practice determinations as to the federations heretofore exclusively reserved to MERC. The unpleasant specter of the courts and MERC sharing this authority, combined with the very real possibility of conflicting decisions, could only further confuse labor relations in the public sector. The Court of Appeals ably pointed this out in its well-reasoned opinion in this case:
"However, even if a civil damage action were allowed under these conditions, it would nevertheless cause an irreconcilable conflict with other provisions of the PERA. The PERA gives to MERC and not to the courts the primary responsibility to balance the competing equities when unfair labor practices or other misconduct have been committed by both sides. See Rockwell, supra, 639. Thus, if we permitted the courts to become directly involved in this determination we would be seriously undercutting the statutory responsibility given to the MERC.” 67 Mich App 337.
It should be noted that both parties in the case at bar analogize to Federal pre-emption concepts in arguing whether or not MERC and the PERA were intended to "pre-empt” the public labor rela tions sector, so as to exclude any civil tort actions. While Federal-state conflicts are concededly not at issue in this state case, precedents under the National Labor Relations Act (NLRA), from which the PERA is derived, are to be persuasively considered. Detroit Police Officers Association v Detroit, 391 Mich 44; 214 NW2d 803 (1974), Michigan Employment Relations Commission v ReethsPuffer School District, 391 Mich 253; 215 NW2d 672 (1974).
The linchpin for plaintiff school district’s contention that the prescribed legislative remedies of the PERA are not exclusive is United Construction Workers v Laburnum Construction Corp, 347 US 656; 74 S Ct 833; 98 L Ed 1025 (1954). Laburnum, according to the school district, stands for the proposition that an employer may maintain an action for civil damages against a labor organization without circumventing the authority of the National Labor Relations Board (NLRB) to determine unfair labor practice charges. However, this Court finds the school district’s reliance on Laburnum to be misplaced.
In Laburnum, defendant labor organization threatened the plaintiff corporation and its employees with violence after the corporation’s employees had refused to join the union. The union’s threats of violence were so extreme that the corporation was compelled to cease operations. The corporation sued the union in state court for damages and prevailed. The union contended, in its defense, that the state court was precluded from entertaining common-law tort actions for the recovery of damages caused by union misconduct. The union argued that its conduct constituted an unfair labor practice condemned by the Labor Management Relations Act (LMRA), 29 USC 141 et seq.
The United States Supreme Court phrased the issue thus:
"The question before us is whether the Labor Management Relations Act, 1947, has given the National Labor Relations Board such exclusive jurisdiction over the subject matter of a common-law tort action for damages as to preclude an appropriate state court from hearing and determining its issues where such conduct constitutes an unfair labor practice under that Act. For the reasons hereafter stated, we hold that it has not.” 347 US 656, 657.
The Supreme Court decided that the common-law tort action could be maintained by plaintiff corporation in state court without circumventing the authority vested in the NLRB by the LMRA to determine unfair labor practice charges. However, that Court’s decision was very narrowly drawn, recognizing only that a state could utilize its inherent police power to control violent tortious conduct which threatened the public safety or welfare.
Since Laburnum was handed down, it has been consistently construed to provide an exception to pre-emption concepts only when union violence occurs. The Supreme Court made this very clear in San Diego Building Trades Council v Garmon, 359 US 236, 247-248; 79 S Ct 773; 3 L Ed 2d 775 (1959):
"It is true that we have allowed the States to grant compensation for the consequences, as defined by the traditional law of torts, of conduct marked by violence and imminent threats to the public order, United Automobile Workers v Russell, 356 US 634 [78 S Ct 932; 2 L Ed 2d 1030 (1958)]; United Construction Workers v Laburnum Construction Corp, 347 US 656 [74 S Ct 833; 98 L Ed 1025 (1954)]. We have also allowed the States to enjoin such conduct. Youngdahl v Rainfair, Inc, 355 US 131 [78 S Ct 206; 2 L Ed 2d 151 (1957)]; United Automobile Workers v Wisconsin Employment Relations Board, 351 US 266 [76 S Ct 794; 100 L Ed 1162 (1956)]. State jurisdiction has prevailed in these situations because the compelling state interest, in the scheme of our federalism, in the maintenance of domestic peace is not overridden in the absence of clearly expressed congressional direction. We recognize that the opinion in United Construction Workers v Laburnum Corp, 347 US 656 [1954], found support in the fact that the state remedy had no federal counterpart. But that decision was determined, as is demonstrated by the question to which review was restricted by the 'type of conduct’ involved, i.e., 'intimidation and threats of violence. ’ In the present case there is no such compelling state interest. "(Emphasis supplied).
Laburnum and Garmon were similarly read together in Morris, The Developing Labor Law (1971), p 792:
"Since the basis of the award of damages in Garmon was uncertain, it was remanded to the California Supreme Court. Although violent conduct was not involved, the employers argued that the award should be sustained on the basis of United Construction Workers v Laburnum Construction Corp. Violent conduct such as that in Laburnum had formed the basis of an exception to the application of the preemption doctrine. When the California Supreme Court sustained the award of damages on the basis of California law, the Supreme Court granted certiorari to consider a second issue: whether the state court had jurisdiction over tortious, but peaceful, labor activity. The award of damages was reversed on grounds which narrowed the Laburnum holding to the type of conduct involved therein. The Court stressed that its primary concern was not the nature of the relief but rather the broad scope of the activities regulated by federal law and protected from state actions by the preemption doctrine.”
The conduct of defendant federations and their "member” teachers in the instant action was clearly non-violent. At most, the teachers peacefully picketed the school district’s facilities. There were no allegations of violence. Absent the crucial element of violence, Laburnum is inapplicable.
Therefore, the analogical references to Federal pre-emption concepts tend to cut in just the opposite direction from that which plaintiff school district urges. We are more convinced that the school district’s cause of action flies in the face of the exclusive § 6 remedies intended by the PERA and the authority of MERC to resolve unfair labor practice charges.
Surely, if the Legislature had intended to supplement the discipline-discharge remedies of §6 with the inherently different remedy of money damages against a union representing public employees involved in a peaceful strike, it could have done so. The Legislature could have adopted language similar to that of Congress in enacting § 303 of the Taft-Hartley Act, 29 USC 187, to allow damage actions against unions engaging in secondary boycotts. Or, the Legislature could have enacted a remedy similar to § 301 of the Taft-Hartley Act, 29 USC 185, which permitted Federal court damage actions for breaches of labor contracts.
However, the Legislature did not see fit to so act. Therefore, this Court, like the United States Supreme Court, believes that in reviewing remedies relative to the PERA, we must insist that only remedies authorized by the Legislature be permitted in the context of a public employees’ union-employer labor dispute such as we have in the case at bar. HK Porter Co, Inc v National Labor Relations Board, 397 US 99; 90 S Ct 821; 25 L Ed 2d 146 (1970). Even parallel damage remedies are precluded where the legislative purpose is to centralize remedial powers in a prescribed manner:
"Even the States’ salutary effort to redress private wrongs or grant compensation for past harm cannot be exerted to regulate activities that are potentially subject to the exclusive federal regulatory scheme. See Garner v Teamsters Union, 346 US 485, 492-497 [74 S Ct 161; 98 L Ed 228 (1953)]. It may be that an award of damages in a particular situation will not, in fact, conflict with the active assertion of federal authority. The same may be true of the incidence of a particular state injunction. To sanction either involves a conflict with federal policy in that it involves allowing two lawmaking sources to govern. In fact, since remedies form an ingredient of any integrated scheme of regulation, to allow the State to grant a remedy here which has been withheld from the National Labor Relations Board only accentuates the danger of conflict.” Garmon, supra, 247.
IV — Michigan Common Law: No Precedent
The proposed remedies in tort which the school district asserts, in the case at bar, are heretofore unknown to the Michigan common law. Although couching its cause in such familiar tort terms as "causing a breach of a common law and statutory duty”, "intentional interference with individual contractual relationships” and "civil conspiracy”, the school district attempts to recover monetary damages from teacher federations for conduct not presently actionable, to wit: the withholding of services through peaceful concerted action of public employees.
Plaintiff school district fails to cite to this Court any prior case in this jurisdiction which has considered the instant question under any tort theory. Moreover, in other states which have statutes prohibiting public employee strikes, the principle permitting a cause of action in tort for damages has not been judicially adopted.
Plaintiff requests this Court to create such a new cause of action. It contends, inter alia, that its suit for civil damages is not primarily an action to enforce the § 2 no-strike provision of the PERA but rather is based upon a "long-standing” common-law policy in Michigan disfavoring strikes by public employees.
The school district submits that the § 2 no-strike provision of the PERA represents merely an ancillary codification of the common-law prohibition of strikes by public employees. It suggests the § 6 discipline-discharge remedies of the PERA are, therefore, cumulative and not exclusive, relying upon Pompey v General Motors Corp, 385 Mich. 537, 552; 189 NW2d 243 (1971). In the Pompey case this Court stated:
"The general rule, in which Michigan is aligned with a strong majority of jurisdictions, is that where a new right is created or a new duty is imposed by statute, the remedy provided for enforcement of that right by the statute for its violation and nonperformance is exclusive. Thurston v Prentiss 1 Mich 193 (1849); In re Quinney’s Estate, 287 Mich 329 [283 NW 599] (1939); Lafayette Transfer & Storage Co v Michigan Public Utilities Commission, 287 Mich 488 [283 NW 659] (1939). Correlatively, a statutory remedy for enforcement of a common-law right is deemed only cumulative.”
This Court, however, finds that the PERA remedies are exclusive, not cumulative, in the case at bar for the following reasons.
Prior to the enactment of the PERA in 1965, Michigan public employees enjoyed relatively few of the organizational privileges which their counterparts in the private sector enjoyed. The right of collective bargaining by public employees was in comparative infancy; strikes were virtually unknown.
In 1952, this Court was required to decide whether certain public transportation employees had the right to strike. In Detroit v Division 26 of the Amalgamated Association of Street, Electric Railway & Motor Coach Employees of America, 332 Mich 237, 248-249; 51 NW2d 228 (1952), it was recognized that the common law prohibited such strikes. However, the Court specifically limited the remedy to injunction:
" 'The question is whether or not public employees do have the right to strike. Under the common law, — and there is no question about it so far as this court is concerned, — there is no right to strike on behalf of public employees, for many reasons, some of which at least might be paraphrased in the language of several of the decisions, that it is a means of coercing the delegation of the discretion which a public board or public body must exercise in its fulfillment of its duties. (Citing several cases.) * * *
" 'It has been repeatedly stated that it is against public policy for public employees to strike. Many courts have held that a strike by public employees is against public policy, is unlawful, illegal and may be restrained and enjoined.’ Cleveland v Division 268, 41 Ohio Op 236; 90 NE2d 711 [Common Pleas, Cuyahoga County, 1949].”
Plaintiff school district correctly relies on the Detroit case for the proposition that strikes by public employees are unlawful at common law. However, that case falls far short of creating the classic "duty”, "breach of duty”, therefore, "monetary damages” triad of traditional tort law. The Detroit case stands for the limited proposition that strikes by public employees are against public policy and are therefore subject to injunction. There is no precedent establishing a common-law tort duty owed by the federation or its teachers to the school board regarding peaceful strike activities.
Strikes by public school teachers are against public policy because they deprive the public of necessary educational services. The sole remedy apart from the statute in Michigan is injunction because our courts recognize that this remedy presents the best possible means for assuring the uninterrupted delivery of vital educational services to the public. This historical authority, carefully applied by courts, to enjoin public employee strikes has been clearly reaffirmed in Holland School District v Holland Education Association, supra.
In no manner does the Detroit case or any known Michigan case even suggest that monetary damages can be obtained by a school district from the teachers or the teachers’ federation under any theory, in the event of a peaceful strike. There has been no case which would support the contention that there is a common-law tort of "public teacher strikes” with an attendant remedy. On the contrary, there is a total absence of any such preexistent common-law remedy.
Accordingly, the statutory remedy provided for by the Legislature in the PERA cannot be "cumulative” to a remedy which is nonexistent. As the common law affords no basis for the school district’s liability and remedy theories, plaintiff is thus limited to the statutory remedy, provided that remedy is adequate. See Pompey v General Motors, supra, 552.
V — Public Policy
This Court is convinced that plaintiff school district’s alleged cause of action against defendant federations is untenable under either legislative intent standards or common-law arguments. Additionally, in order to fully explicate this issue, we address the public policy considerations raised by both parties.
Plaintiff school district urges that even if this Court rejects its position regarding the exclusivity of the PERA and MERC remedies (parts II and III), or its common-law argument (part IV), we should nevertheless create by judicial fiat the cause of action pled because the remedies provided for in the PERA are "inadequate”. Utilizing Pompey v General Motors, supra, 553, as precedent, the school district argues that the PERA § 6 remedies of discharge-discipline or the injunctive remedy provide "no remedy whatsoever” against the federations and their agents who allegedly precipitated the strike by the teachers.
First, we cannot agree with plaintiff school district’s characterization of the effectiveness of the present remedies available to school districts in dealing with teacher strikes. One need only look to Rockwell, supra, and its aftermath to understand how unpersuasive we find this suggestion. It is a matter of public knowledge that the subsequent decrease in strikes by public school teachers has been dramatic.
Nor can we accept the school district’s thrust that while the discipline-discharge remedies may be effective against the individual teachers, they provide no remedy against the defendant federations and their agents. This reasoning again overlooks the plain fact that the teachers-members are the federation, collectively speaking. The function of these public employees’ federations is the representation of their members in the collective bargaining process. MCLA 423.211; MSA 17.455(11). The utilization of § 6 remedies results in a significant sanction against the federation, as an organization consisting of its public employee members.
Buttressing the adequacy of the discipline-discharge remedies is the additional fact that traditional injunctive relief, and possible contempt sanctions for violations of such injunctions, are available for dealing with work stoppages by teacher federations and their individual members.
Furthermore, the ultimate legislative goal is to achieve a prompt, fair resolution of disputes while avoiding the disruption of the educational process. To recognize alternative tort remedies would result in a substantial negative impact upon such purposes. It would encourage future school board inaction. Eventual settlements could be prolonged pending the resolution of multiple tort claims and counterclaims. The inevitable result would be to create labor law logjams in our courts and, at the same time, to exacerbate labor-management disputes.
Next, while we have already discussed the policy implications involved in circumventing the PER-A’s (MERC’s) jurisdiction to determine unfair labor practice charges, we believe there exist even more significant policy reasons for rejecting the cause of action pled.
Courts venture into dangerous and basically unchartable waters when they "tinker” with existing legislative schemas such as the PERA. The precarious and uneasy balance of labor-management power which exists in the public labor relations sector could be easily upset. Neither law nor reason gives basis for any additional modification of the Legislature’s exhibited intent to limit remedies available in this situation.
In a recent Federal decision, which involved a proposed statutory cause of action regarding principles similar to those in the case at bar, the Southern District Court of Florida spoke to the policy considerations at issue here:
"The life cycle of labor-management bargaining is heated and oftentimes results in bitter accusations. Representatives attempt to secure the best possible terms for their respective sides. To create a right of action in favor of an employer against a union and its collective bargaining representatives for losses the former incurs in the course of the collective bargaining process would, in effect, give the employer a weapon with which to keep the unions and their agents 'in line’. Surely, neither Congress nor the Appellate Courts would fashion a remedy which would give the employer a lever upon which to gain such an unfair advantage.” See National Airlines, Inc, v Pilots Association, 431 F Supp 53 (SD Fla, 1976).
As early as 1969, the Michigan Law Review, in its comments Collective Bargaining for Public Employees and the Prevention of Strikes in the Public Sector, anticipated and rejected the very cause of action pled by the school district:
"A possible cost-equalization approach is to allow damage suits by the employer against the union. Such an approach, however, far from promoting a balance of bargaining between the parties, would probably only aggravate any existing imbalance. In situations in which the union possesses the preponderance of power, the employer would be unlikely to invoke the damage remedy for fear of exacerbating relations; and when the employer holds the power, the availability of such a further remedy would merely increase his advantage.” 68 Mich L Rev 260, 293 (1969).
Justice Douglas, in his eloquent dissent in Laburnum, supra, 670-671, also discussed the long-range policy implications of allowing either employers to sue unions or unions to sue employers for alleged tortious conduct which might occur during labor disputes. He believed that such suits, if allowed, would seriously undercut the LMRA:
"That Act subjected these industrial disputes to settlement and adjudication in administrative proceedings. For example, the administrative agency was granted power to forbid employers from interfering with trade-union activities. May a union not only institute proceedings before the National Labor Relations Board but sue the employer as well? Or may it have a choice of remedies? I would think not. But if the union may not sue the employer for the tortious conduct, why may the employer sue the union?
"I think that for each wrong which the federal Act recognizes the parties have only the remedy supplied by that Act — and for a simple reason. The federal Act was designed to decide labor-management controversies, to bring them to a peaceful, orderly settlement, to put the parties on the basis of equality which the rules designed by Congress envisaged. If the parties not only have the remedy Congress provided but the right to sue for damages as well, the controversy is not settled by what the federal agency does. It drags on and on in the courts, keeping old wounds open, and robbing the administrative remedy of the healing effects it was intended to have.”
Finally, when this Court considers the added dimension of reinvolving the circuit courts in such volatile litigation as labor-management disputes in the public sector, we can only conclude that we would be opening a veritable Pandora’s box were we to judicially create the cause of action urged by plaintiff school district.
VI — Conclusion
Therefore, we conclude, as did the Court of Appeals, that barring legislative fiat, we will not judicially create a civil damage action in tort against a teachers’ federation (union), or its agents, where the federation may have precipitated a peaceful strike in violation of the statutory prohibition of the PERA:
"A court, in law or equity, may indeed enter all appropriate orders, but only those consistent with the proper discharge of its judicial responsibility. It has been said that there is not a judicial remedy for every wrong or shortcoming in society or in a statutory scheme. The Legislature has left the resolution of collective bargaining impasses in limbo and there the matter shall remain until it chooses to act.” Rockwell, supra, 646.
Affirmed. No costs, a public question.
Kavanagh, C. J., and Williams and Fitzgerald, JJ., concurred with Blair Moody, Jr., J.
Levin, J., concurred in Part II of the opinion.
"Whenever the body of an act contains a provision which is considered ambiguous, there is much justification when a construction is called for, in giving consideration to the title which the act bears.” Kalee v Dewey Products Co, 296 Mich 540, 545; 296 NW 826 (1941).
"No person holding a position by appointment or employment in the government of the state of Michigan or in the government of any 1 or more of the political subdivisions thereof, or in the public school service, or in any public or special district, or in the service of any authority, commission, or board, or in any other branch of the public service, hereinafter called a 'public employee,’ shall strike.” MCLA 423.202; MSA 17.455(2).
The phrase "[notwithstanding the provisions of any other law” could be broadly construed to include both statutory and case law, Black’s Law Dictionary (4th ed), pp 1028-1029. Such construction need not be entertained here. There was no precedent for the proposed action under the common law at the time the PERA was enacted (see part IV). Nor may such cause be implied from the PERA. Furthermore, the statutory remedy contained in § 6 is adequate (see part V).
Any construction of a statute leading to an absurd consequence should be avoided. la re Petition of Michigan State Highway Commission, 383 Mich 709; 178 NW2d 923 (1970). It is not difficult to anticipate a proliferation of litigation if we adopted plaintiffs interpretation. As in the instant case, counter-complaints by defendants would become standard. Various public employers and public employees, as well as unions, would take turns suing each other for tortious damages ad nauseam.
Part III of this opinion discusses how the Legislature could have provided for specific remedies against unions as organizations, if it had so desired.
Since no violence occurred in the case at bar, we find that Laburnum does not apply. However, we limit our finding to just that point. We are not deciding whether allegations of violence would make Laburnum applicable in Michigan. For a further discussion of this issue, see Justice Douglas’ dissent in Laburnum, supra, 669-671.
Defendant federations claim, that even if the instant tort actions asserted by plaintiff school district were known to the Michigan common law in this context, the school district could not maintain an action for intentional interference with individual contractual relationships.
Defendant federations submit that the teachers and the school district are parties to two contracts. The first contract is the master collective bargaining contract which the teachers negotiate, through their federations, with the school district. This master contract determines the general terms and conditions of employment. The second contract is the individual teacher tenure contract which each teacher signs separately with the school district. This contract is a continuing tenure contract pursuant to the School Code of 1955, MCLA 340.569; MSA 15.3569 (now the School Code of 1976, MCLA 380.1231; MSA 15.41231, eff January 1, 1977), and the teachers’ tenure act, MCLA 38.91; MSA 15.1991.
Therefore, the defendant federations urge that when the master contract expired in the instant case, the individual tenure contracts simultaneously expired, due to their derivative nature. Accordingly, it was impossible for the federations to interfere with contracts which lacked any validity. Defendant federations rely primarily upon Detroit Federation of Teachers v Detroit Board, of Education, 396 Mich 220; 240 NW2d 225 (1976), as authority for their position.
Plaintiff school district retorts that the continuing individual teacher tenure contracts are by their terms expressly "continuing” and, therefore, separate contracts from the master collective bargaining contract. Hence, these individual contracts by their very terms expressly survive the expiration of the master contract. See the School Code of 1955 and the teachers’ tenure act, supra, for language to such effect.
This Court need not decide this issue at this time. In Rockwell, supra, 630, we made it quite clear that "[t]he teachers’ tenure act was not intended, either in contemplation or design, to cover labor disputes between school boards and their employees”. The PERA, and the PERA alone, was intended to occupy the public labor relations sector completely and exclusively in peaceful strike situations. Cf. parts II and III of this opinion.
It would, therefore, be inconsistent on our part to allow the respective parties in the instant action to maintain or defend alleged tort lawsuits, arising out of disputes in the public labor relations field, on the basis of tenure contracts authorized by either the teachers’ tenure act or the School Code of 1955.
See, generally, Anno: Labor Law; Right of Public Employees to Strike or Engage in Work Stoppage, 37 ALR3d 1147.
See specifically, for example, 43 Pa Stat Ann 1101.1003 (Purdon, Cum Supp, 1976-1977) and Armstrong School District v Armstrong Education Association, 5 Pa Commw Ct 387; 291 A2d 125 (1972). Under statute governing public employee labor relations, the court is empowered to grant equitable relief only to end a public employees’ strike; for a court to have any further equity jurisdiction in such labor dispute, there must be a further statutory grant.
See also, 41 Ohio Rev Code Ann 4117.01 et seq. (Page), and Goldberg v Cincinnati, 26 Ohio St 2d 228; 55 Ohio Op 2d 468; 271 NE2d 284 (1971). Strikes by public employees are prohibited at common law and may be enjoined.
Without statutory sanction, there is a dearth of support for the principle urged by plaintiff.
We note in passing that, while for purposes of discussion here, we accept Pompey for the generad proposition cited, that case is easily distinguished from the case at bar. Pompey dealt with the exclusive-cumulative dichotomy regarding statutory remedies in the context of fundamental or civil rights. The instant case involves damages arising out of the alleged violation of proprietary rights. Pompey, supra, 553.
Also, it is noted Holland School District v Holland Education Assn, supra, held that although the distinctions between law and equity proceedings were abolished by constitutional provisions, the historic difference between law and equity was not abolished. Holland involved an equitable proceeding and held only that equitable injunctive relief could be granted, aside from the subject statutory remedy.
At this writing, it is public knowledge that MERC is in the process of certifying a new bargaining unit for the replacement of teachers hired by the Crestwood School District. The Crestwood Education Association ceased to exist upon the firing of its teacher-members. The Michigan Education Association has refused to become involved in organizing the new teachers. | [
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Kavanagh, J.
People v Walter Johnson
Defendant Walter Johnson and codefendant Edgar Johnson held up a bar in the City of Detroit. Defendant Walter Johnson took money from the cash register while his codefendant kept the patrons at bay with a revolver. The defendants left the bar and divided the money.
On March 7, 1977 defendant Walter Johnson entered a plea of guilty as charged to the offenses of robbery armed, MCL 750.529; MSA 28.797, and possession of a firearm during the commission of or attempt to commit , a felony, MCL 750.227b; MSA 28.424(2). Defendant was sentenced to not less than 25 nor more than 75 years on the armed- robbery count and the mandatory 2-year imprisonment on the felony-firearm count.
People v Tavolacci
Defendant Timothy Tavolacci had agreed to bring Jack McAleer, an undercover officer from the Washtenaw Area Narcotics Team, to a pool hall in Howell, Michigan, under the pretense of making a drug deal. According to the plan defendant was to introduce McAleer to Randy Harmon and Frederick Budziak who were to take him to a remote field and kill him. On May 17, 1977, defendant brought McAleer to the pool hall and introduced him to Harmon and Budziak. McAleer, Harmon and Budziak drove to a field outside of Oak Grove in Cohoctah Township, Livingston County. Budziak took a shotgun out of the trunk of the car and pointed it at McAleer. McAleer was able to disarm Budziak and the plan failed. Defendant remained in the pool hall during this time and eventually went to the home of a friend where he later received word of the frustrated attempt.
Defendant pled guilty of assault with intent to do great bodily harm less than murder, MCL 750.84; MSA 28.279, and to possession of a firearm during the commission of or attempt to commit a felony, MCL 750.227b; MSA 28.424(2). Defendant was sentenced to a term of imprisonment of not less than four nor more than ten years on the assault charge and a mandatory two-year term of imprisonment on the felony-firearm charge.
In the instant cases the defendants did not personally possess a firearm during the commission of the felonies. On appeal the prosecutors have contended that a defendant may be guilty of violating MCL 750.227b, notwithstanding the lack of actual personal possession, if he is shown to have aided and abetted another who has such possession.
Because in a felony-firearm prosecution the possession of the firearm is a distinct crime from the underlying felony, Wayne County Prosecutor v Recorder’s Court Judge, 406 Mich 374; 280 NW2d 793 (1979), the aiding and abetting charge must be established in each to support conviction of each.
To convict one of aiding and abetting the commission of a separately charged crime of carrying or having a firearm in one’s possession during the commission of a felony, it must be established that the defendant procured, counselled, aided, or abetted and so assisted in obtaining the proscribed possession, or in retaining such possession otherwise obtained. See People v Doemer, 35 Mich App 149; 192 NW2d 330 (1971); People v Francis, 71 Cal 2d 66; 450 P2d 591; 75 Cal Rptr 199 (1969).
In neither of the instant cases does the record show that the defendant assisted the accomplice to obtain or retain possession of the firearm which the accomplice possessed during the commission of the felony.
Accordingly, we remand these cases to the trial courts. On remand the prosecutor shall be given an opportunity to establish that the defendant procured, counselled, aided or abetted and so assisted the accomplice to obtain or retain possession of the firearm which the accomplice possessed during the commission of the felony. If the prosecutor is able to do so and there is no contrary evidence, the judgments of conviction of felony-firearm in these cases shall be affirmed. If the prosecutor is unable to do so, the judgments of conviction of felony-firearm shall be set aside. If contrary evidence is produced, these matters shall be treated as a motion to withdraw the guilty pleas and the court shall decide these matters in the exercise of its discretion. Guilty Plea Cases; 395 Mich 96; 235 NW2d 132 (1975).
Coleman, C.J., and Williams, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred with Kavanagh, J. | [
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Per Curiam.
On September 5, 1969, the State Grievance Administrator of the State Bar filed a formal complaint charging plaintiff Sternberg with 13 counts of embezzlement from clients which, if true, constitute professional misconduct and warrant disciplinary action. Formal hearing was set for November 10, 1969.
On October 27, 1969, Sternberg was informed by members of the Attorney General’s staff he would be criminally prosecuted for embezzlement. Plaintiff thereupon requested adjournment of the Griev anee Committee’s formal hearing. His request was denied. He filed this complaint in Ingham County Circuit Court seeking a stay of the grievance proceeding. On November 3, 1969, an ex parte temporary restraining order was issued. Four days later the restraining order was modified to permit the State Bar to present its case against Sternberg at the grievance hearing. The modified order provided for a stay of the remainder of the grievance hearing until final disposition by a trial court of any criminal charges against Sternberg arising out of the subject matter of the grievance proceeding.
On November 12, 1969, the Attorney General filed a criminal complaint in the Recorder’s Court of Detroit charging Sternberg with six counts of embezzlement. Three of the six criminal counts correspond to charges in the State Bar complaint.
On December 11, 1969, the State Bar moved to dissolve or amend the order of November 7, 1969, to permit the grievance hearing to continue or to suspend Sternberg from the practice of law until the hearing could be completed. On February 6, 1970, the trial judge entered an order denying this motion. The State Bar appealed to the Court of Appeals and also applied to this Court for leave to bypass the Court of Appeals. We granted leave (383 Mich 776).
On March 1, 1971, Sternberg’s attorney filed a motion to dismiss the appeal for the reason that on February 10, 1971, “a jury returned a verdict of guilty to the charge of embezzling funds of one Clearence Lowell [sic] in the value of more than $100.00 contrary to M.S.A. 28.371, which offense is a felony; * * * that on or about the 12th day of February, 1971 an order of suspension was entered by the state bar grievance board of the Michigan State Bar Association; * * * that Mervyn H. Sternberg, appellee, does not intend to appeal the aforesaid criminal conviction; * * # that appellant may now proceed with any further hearings or procedures which it feels necessary in this matter.”
The motion was noticed for March 4, 1971, at which time the case was also set for oral argument before this Court. The motion was denied. We consider the case on the merits because of the importance of the legal and procedural questions it presents.
The injunction staying the State Bar grievance proceeding was based on the theory that Sternberg’s Fifth Amendment right against self-incrimination would be infringed by conducting such a hearing while criminal charges based on some of the same issues were pending against him.
Plaintiff claimed that if the injunction was dissolved, he would be compelled to testify in the grievance hearing to avoid disbarment. In Spevack v. Klein (1967), 385 US 511 (87 S Ct 625, 17 L Ed 2d 574), the Court held that an attorney cannot be disbarred on the basis of his refusal to testify, on Fifth Amendment grounds, at a disciplinary hearing. Sternberg could not be disbarred solely because he refused to testify at the grievance hearing. However, it was his claim that if he testified, such testimony could be used against him in the criminal proceeding and that, if he did not testify, the evidence against him would probably result in a finding against him. Thus, continuing the grievance hearing would likely result in discipline, unless he waived his right against self-incrimination and testified. No case has extended the protection against self-incrimination this far though. The Third Circuit in a situation almost identical to this one affirmed a District Court refusal to enjoin a New Jersey Bar discipline proceeding where plaintiff was also under indictment on similar criminal charges. De Vita v. Sills (CA3, 1970), 422 F2d 1172. In that case, the Court said (pp 1177, 1178):
“There is nothing in the rules or the court order from which we can conclude that the plaintiff’s failure to testify will be held a ground for disbarment or forfeiture of office. ji.
“But, says the plaintiff, I will nevertheless be put to a difficult choice, and the Fifth Amendment should be so construed that one is not faced with the compulsion to add his own possibly affirmative good impression to weight of evidence in the disciplinary hearing before the criminal trial.
“This argument proves too much, for it applies with equal force to every situation where civil and criminal proceedings may arise out of the same factual pattern. If, for example, the charge against an attorney was embezzlement of a client’s funds, acceptance of plaintiff’s position would require that the wrong client await the completion of a criminal trial before he sought a civil recovery, because of the possible compulsion of the risk of a judgment. The same would be true of every defendant in a wrongful death action; of many taxpayers; of most antitrust defendants. * * *
“No authority has come to our attention for so broad a reading of the Fifth Amendment, and the countervailing possibilities of prejudice to civil litigants militates against any such extension of constitutional doctrine.”
In this appeal, no question as to the jurisdiction of the circuit court was raised. It should be noted, however, that since this action was commenced the State Bar disciplinary rules have been changed to eliminate involvement by any court other than this one in disciplinary matters. At the time this action was commenced, the State Bar disciplinary procedures provided for review and enforcement of Grievance Committee disciplinary recommendations by the circuit courts (State Bar Rule 15, §§ 14, 15, 16).
The revision of Rule 15 adopted by this Court on January 8, 1970, streamlines the State Bar disciplinary procedure and eliminates the role of circuit courts in such matters. The new rule establishes a State Bar Grievance Board of seven members. The Grievance Board appoints hearing panels of three referees to hold hearings upon complaints against members of the Bar and to make the initial determination. Procedural and administrative rules of the State Bar Grievance Board were adopted by this Court on May 7, 1970, and ordered effective retroactively as of March 1, 1970. Grievance Board Rules 15.14 and 15.15 provide for review of hearing panel determinations by the Grievance Board in a manner similar to review by circuit courts under the old rule.
Under the new State Bar disciplinary procedure, there is no role for the circuit courts or for the Court of Appeals. The change was made to provide for speedy and just determination of misconduct charges against members of the Bar and to eliminate procedural tie-ups. Such delays allow attorneys guilty of misconduct to continue to hold positions of public trust as confidential counsellors and officers of the court. On the other hand, complicated time-consuming procedures may create an aura of wrongdoing over an innocent attorney wrongly charged. The interests of the public and the Bar are best served by a speedy determination of misconduct charges.
The Circuit Court is reversed and the injunction is vacated. Costs to appellant.
T. M. Kavanagh, C. J., and Black, Adams, T. E. Bkennan, T. Gt. Kavanagh, Swainson, and Williams, JJ., concurred.
15.14. “Either the Administrator, the complainant or the respondent may in writing petition the Board for review of the order of the Hearing Panel within twenty days after service of the order. The Board shall then issue an order to show cause, at a time and place specified, why the order of the Hearing Panel should not be confirmed. * * * .”
15.15. “After hearing on the order to show cause, the Board shall confirm, amend, reverse or nullify the order of the Hearing Panel in whole or in part or order other discipline. The Board shall file and serve its order on review the same as set forth for orders of Hearing Panels.”
State Bar Bule 15 provides further that:
“Any party aggrieved by a final decision of the State Bar Grievance Board shall have a right to appeal sueh decision to the Supreme Court.” | [
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Ryan, J.
We are presented in this case with questions pertaining to findings and recommendations of the Judicial Tenure Commission and the power of this Court as it relates to the discipline of members of the state judiciary. The questions are of first impression and arise because respondent Charles V. Probert, the subject of the proceedings before us, is no longer a judge.
Respondent maintains that his departure from judicial office since the institution of formal disci plinary proceedings divested the commission of jurisdiction over him and precludes this Court from imposing effective discipline. It follows, he contends, that we should reject the commission’s recommendation of discipline. We find this argument unpersuasive.
In response to the conduct detailed in Part III of this opinion, the commission has recommended that respondent "be removed from judicial office and permanently enjoined from holding such office in the future”. We conclude that because respondent is presently not a judge and because we are not expressly empowered to enter an injunction of the nature sought here, we cannot implement the specific recommendations of the commission.
We hold further, however, that respondent is not beyond our disciplinary reach and conclude that he should be censured and conditionally suspended for five years, regardless of any possible intervening election or appointment to judicial office.
The facts and procedural history of the case are fully delineated in Part I of Justice Levin’s opinion.
I
In 1968, the people of Michigan amended the state constitution and established the commission.
"(1) A judicial tenure commission is established consisting of nine persons selected for three-year terms as follows: Four members shall be judges elected by the judges of the courts in which they serve; one shall be a court of appeals judge, one a circuit judge, one a probate judge and one a judge of a court of limited jurisdiction. Three shall be members of the state bar who shall be elected by the members of the state bar of whom one shall be a judge and two shall not be judges. Two shall be appointed by the governor; the members appointed by the governor shall not be judges, retired judges or members of the state bar. Terms shall be staggered as provided by rule of the supreme court. Vacancies shall be filled by the appointing power.
"(2) On recommendation of the judicial tenure commission, the supreme court may censure, suspend with or without salary, retire or remove a judge for conviction of a felony, physical or mental disability which prevents the performance of judicial duties, misconduct in office, persistent failure to perform his duties, habitual intemperance or conduct that is clearly prejudicial to the administration of justice. The supreme court shall make rules implementing this section and providing for confidentiality and privilege of proceedings.” Const 1963, art 6, § 30 (hereinafter § 30).
Section 30(2) prescribes four kinds of discipline: censure, suspension (with or without salary), retirement, and removal. Respondent avers that once a judge leaves office the question of judicial discipline is rendered moot and the commission’s jurisdiction over him is lost. Implicit in the argument is the view that § 30(2) discipline befits incumbent judges only. This is the position espoused by Justice Levin, who concludes that "§ 30 authorizes the recommendation and imposition of discipline for incumbent judges only”. Thus, upon a judge’s resignation or the expiration of his term, our colleague holds, commission proceedings must cease and this Court’s power to discipline that person under § 30(2) evaporates. We do not read that provision so narrowly.
Indeed, it is difficult to conceptualize how one who does not hold judicial office could be suspended, retired, or removed from office. Nevertheless, we have on at least three occasions issued conditional suspensions that would have foreclosed the exercise of the prerogatives inhering in any judicial office to which the disciplined party might have been elected or appointed in the future, the condition being, of course, re-election or appointment to judicial office. In the Matter of Mikesell, 396 Mich 517, 549; 243 NW2d 86 (1976); In the Matter of Del Rio, 400 Mich 665, 672, fns 3-4; 256 NW2d 727 (1977); In the Matter of Bennett, 403 Mich 178, 200; 267 NW2d 914 (1978). The effect of those suspensions would have been to disengage the disciplined party from judicial power, but only had that person come to occupy judicial office again during the term of the suspension, and only to the extent that the terms of office and suspension coincided. Clearly, it is immaterial to a suspension of this nature whether or not the disciplined party holds judicial office when the suspension is imposed. A conditional suspension, therefore, is not appropriately taken against incumbent judges only.
Furthermore, it is not at all difficult to conceptualize how one who does not hold judicial office could be censured. Respondent himself concedes the possibility. In light of the purposes of judicial discipline, the censure of a former judge may be entirely expedient.
When we are confronted with a case of misconduct in office and the question of judicial discipline arises, we are obliged to make a judgment concerning the respondent’s fitness to be a judge in light of his misconduct. Thus, a decision to enter an order of judicial discipline must be responsive to individual considerations. But our concern encompasses more: when one commits judicial misconduct he not only marks himself as a potential subject of judicial discipline, he denigrates an institution. Accordingly, a decision on judicial discipline must also be responsive to a significant institutional consideration, "the preservation of the integrity of the judicial system”. Institutional integrity, after all, is at the core of institutional effectiveness.
When a judge charged with misconduct removes himself from judicial office to avoid the notoriety and ignominy incident to disciplinary proceedings and the possibility of sanctions, censure, if deserved, may be essential to "the preservation of the integrity of the judicial system”, especially if that integrity has been critically undermined, because the alternative, silence, may be construed by the public as an act of condonation.
As earlier stated, respondent asserts that because he is no longer a judge the case is moot.
Because the possibilities of censure and conditional suspension remain after a judge charged with misconduct steps down or fails to be reelected, a judicial discipline case does not become moot the instant the judge leaves office. Effective relief can still be granted; a controversy still exists. See generally Del Rio, supra, 685-686; McCarthy v Wayne Circuit Judge, 294 Mich 368, 373; 293 NW 683 (1940); Detroit v Killingsworth, 48 Mich App 181, 183; 210 NW2d 249 (1973). Establishment of a rule, therefore, calling for immediate termination of commission proceedings upon a judge’s leaving office is unwarranted.
Such a rule would also be unwise. A judge charged with misconduct should not have the power, simply by leaving office, to short-circuit investigation of the allegations against him, leav ing the proceedings incomplete and subject to the abrasion of time. Events pertaining to alleged judicial misconduct and the recommendation of the commission with respect to those events should be as close in time as possible. There is good reason, therefore, for commission proceedings to continue until completed, notwithstanding a judge’s resignation or failure to be re-elected after the filing of a complaint.
We are advised that as a matter of policy, "the [commission has declined to act further after termination of a respondent’s judicial office by resignation, by failure to be re-elected, or by death”. This policy no doubt developed in light of the commission’s estimation of the most effectual allocation of its resources. Once an unfit or incompetent judge is separated from judicial power, the greatest danger has passed. Be that as it may, this Court should not and will not transform that policy into a fast, inflexible rule of law that would preclude contrary action when the commission, in its considered judgment and discretion, deems it appropriate.
Furthermore, to hold that this Court has no power to discipline a former judge would work undue mischief, which would be most apparent, for example, in a case in which a judge leaves office after his case is submitted to us and only the question of discipline remains. Such a holding would mean that at a time when the commission has completed its work and we have before us all the information and materials necessary to render judgment, our power to vindicate the integrity of the judiciary could nonetheless be negated by wholly irrelevant occurrences such as the expira tion of the judge’s term of office, his resignation, or the length of time we take to decide the case.
II
The question whether this Court is empowered to permanently enjoin respondent from holding judicial office in the future remains. Our authority to discipline members of the state judiciary flows from two sources, §§ 30 and 4 of article 6 of the Michigan Constitution.
The four types of discipline § 30 empowers this Court to impose — censure, suspension, removal, and retirement — do not appear to comprehend the permanent injunction sought here.
Section 4 embodies a more general grant of power, the power of superintending control.
"The supreme court shall have general superintending control over all courts; power to issue, hear and determine prerogative and remedial writs; and appellate jurisdiction as provided by rules of the supreme court. The supreme court shall not have the power to remove a judge.” Const 1963, art 6, § 4 (hereinafter § 4).
As explained in In re Huff, 352 Mich 402, 418; 91 NW2d 613 (1958):
"The superintending control conferred by Constitution on this Court is a power separate, independent and distinct from its other original jurisdiction and appellate powers, its purpose being 'to keep the courts themselves "within bounds” and to insure the harmonious working of our judicial system.’ Such power having been conferred by Constitution upon this Court, it also received all the power necessary to make that control and its implementing orders and writs effective.” (Citations omitted.)
The Huff Court also outlined the great breadth of the power:
" 'The power of superintending control is an extraordinary power. It is hampered by no specific rules or means for its exercise. It is so general and comprehensive that its complete and full extent and use have practically hitherto not been fully and completely known and exemplified. It is unlimited, being bounded only by the exigencies which call for its exercise. As new instances of these occur, it will be found able to cope with them. Moreover, if required, the tribunals having authority to exercise it will, by virtue of it, possess the power to invent, frame, and formulate new and additional means, writs, and processes whereby it may be exerted. This power is not limited by forms of procedure or by the writ used for its exercise. Furthermore, it is directed primarily to inferior tribunals, and its relation to litigants is only incidental.’ ” Id., 417-418.
It is true that § 4 explicitly prohibits this Court from utilizing its power of superintending control to remove a judge. Nevertheless, "for the purpose of protecting the purity of judicial processes and maintaining public confidence in the administration of justice”, we indefinitely enjoined a judge "from exercising the powers and duties of [his] office” pursuant to our power of superintending control. Ransford v Graham, 374 Mich 104, 108; 131 NW2d 201 (1964); In re Graham, 366 Mich 268, 280-281 fn of Reporter; 114 NW2d 333 (1962) (same case); accord, In re Mussman, 112 NH 99; 289 A2d 403 (1972); In the Matter of DeSaulnier, 360 Mass 787; 279 NE2d 296 (1972).
It is important to stress that our opinion today does not signal a retreat from the sound principles enunciated in Huff, supra, and Graham, supra. As the head of the state judiciary, it is this Court’s duty " 'to keep the [Michigan] courts * * * "within bounds” and to insure the harmonious working of our judicial system’ ”. Huff, supra, 418. That system is only as good as its constituent judges. Accordingly, § 4 invests this Court with the power to determine that a person is unfit for judicial office and to prevent him from ever exercising judicial power in this state for as long as he is, in our judgment, judicially unfit.
Section 4 does not explicitly bar us from permanently enjoining one from holding judicial office. The provision, however, does declare that we have no power to remove a judge. We do not find in this specific prohibition a cognate prohibition against the permanent injunction recommended here. If a permanent injunction were truly a form of "removal”, consistency would compel the judgment that § 30, which authorizes us to "remove” a judge, permits us to enter a permanent injunction, but, clearly, this is not the case.
The language of § 4 neither permits nor forbids us to issue a permanent injunction against the holding of judicial office. The lack of superintending power to remove does not itself unavoidably entail a similar lack of superintending power to permanently enjoin. Removal deprives the judge of a more significant and tangible interest — his existing judgeship — than the interest impinged upon by a permanent injunction — the potentiality of attaining a judgeship — which is more problematic and uncertain.
Nonetheless, a permanent injunction might implicate the right of the voters of Michigan to choose those who would hold judicial office. As our Brother Levin correctly observes, the recommended injunction would "prevent the electorate from ever again effectively exercising the franchise in favor of a particular person”. That suffrage is bestowed by our constitution. Const 1963, art 2, § 1; art 6, §§ 2, 8, 12, 16. Section 4 should be construed, if possible, to harmonize with other constitutional provisions. We agree, therefore, that § 4 does not comprehend the power to permanently enjoin a person from holding judicial office.
Ill
Charles V. Probert no longer holds judicial office. The commission recommends that he "be [(1)] removed from judicial office and [(2)] permanently enjoined from holding such office in the future”.
The first recommendation is moot.
The second recommendation cannot be carried out for the reasons discussed in Part II.
Nonetheless, the possibilities of censure and conditional suspension remain, and, therefore, our decision to deny the commission’s recommendation does not foreclose the question of discipline.
The commission divided its findings into four general categories:
"(1) Respondent habitually and willfully disregarded statutes, court rules, canons and other ethical responsibilities in the administration of justice;
"(2) Respondent improperly used his judicial office to benefit his friends and court employees;_
"(3) Respondent engaged in conduct giving rise to impropriety and the appearance of impropriety; and
"(4) Respondent exhibited a gross lack of judicial temperament and impartiality.”
The commission elaborated its findings as follows:
"(1) As to the first general category, we adopt, as fully supported by the record, the findings that respondent wrongfully: thwarted the right of criminal defendants to appointed counsel; denied defendants the right to reasonable bail and perverted the bail process to unsuitable and improper purposes; denied defendants the right to an appeal bond; routinely denied the clear statutory right of misdemeanants to post a ten percent bond; and habitually abused his contempt power. Respondent’s extrajudicial confiscation of weapons, however well motivated, constituted an act of judicial lawlessness. Under the same general category, respondent’s refusal to obey an order of a superior court was an act of insubordination and conduct clearly prejudicial to the administration of justice. See In the Matter of Bennett, 403 Mich 178; 267 NW2d 914 (1978).
"Concerning the allegation in paragraph 12, the proofs showed respondent’s unlawful acceptance in the Jacobs case of a guilty plea to a felony written on an appearance ticket. This is an action without any jurisdiction or justification and is a serious disregard of proper procedure. It pales by comparison to respondent’s subsequent alteration of court and police records, his perjury in the court records, and his falsification of judicial records, all in an effort to cover up his misconduct.
"We find that the foregoing misconduct evaluated in its totality constitutes conduct clearly prejudicial to the administration of justice, misconduct in office, and persistent failure to perform judicial duties as proscribed by Const 1963, art 6, § 30, and GCR 1963, 932.4.
"(2) With regard to the second general category, we make the following observations: respondent improperly used his judicial office to benefit his friends and court employees. He abused the processes of the court, including his contempt power, to obtain a material benefit for the nephew of his court constable. In a similar manner, he procured an employment test for his friend, and assisted her in preparing answers in advance of the test. * * *
"We find that this constitutes misconduct in office and conduct clearly prejudicial to the administration of justice within the purview of Const 1963, art 6, § 30, and GCR 1963, 932.4.
"(3) As to the third general category, conduct giving rise to impropriety and the appearance of impropriety, we find respondent’s public intoxication and associated misconduct to be a grave breach of his responsibilities. * * *
"Respondent’s drunkenness as proven did not involve his activities on the bench. However, his notorious, flagrant, and boorish behavior in the bars around Wyoming, Michigan, created a public spectacle, and doubtless scandalized the community. Thereby, he violated his duty to behave, 'in a sense * * * as though he is always on the bench’. Bennett, supra.
"We find that his behavior failed to avoid impropriety and its appearance and was conduct clearly prejudicial to the administration of justice within the meaning of Const 1963, art 6, § 30, and GCR 1963, 932.4. We find further that respondent’s conduct aforesaid was such as to bring his office into disrepute.
"(4) As to respondent’s gross lack of judicial temperament and impartiality, there are two general areas of misconduct. The first is respondent’s injudicious behavior during arraignments and sentencings. The concrete examples of misconduct are legion and are fully and adequately discussed in the report of the master. Frequently, respondent interjected extraneous matters into the proceeding and made it appear that his determination in the case rested on them. He bullied and badgered defendants. In a number of cases as proven, the judge brandished his peculiar conceptualization of the relationship between the court and the police, referring to 'my police officers’. Particularly shocking conduct appears in People v Joseph Bouwhuis, and its companion cases. There, he told the defendants that there were 'pimps, murderers and homosexuals out at the Kent County Jail’ and the defendants would be 'some fresh meat for them’. Respondent’s frequent statements at arraignments, as in that particular case, that the defendants 'don’t need an attorney, but need a miracle worker instead’ necessarily suggested that respondent had prejudged their case.
"In People v Gary Schultz, respondent referred to the defendant as a 'little bastard’ from the bench. In People v Charles Sharpe, respondent’s demeaning, sarcastic remarks about the defendant’s admitted homosexuality made it obvious that Judge Probert sentenced him not for what he did, but for what he was.
"Another aspect of respondent’s partiality and unjudicial temperament manifested itself during the preliminary examinations or trials in People v Gary Bolot, People v Scott Selkirk, People v Thomas McKellar, People v Alan Metzger, and People v Nicholas Busser. In the most crude and overbearing way, respondent interfered with the normal course of these proceedings and sought to obtain the desired result without the formality of a trial. Under these circumstances, respondent, like Judge Del Rio, himself improperly coerced guilty pleas. Del Rio, 702.
"We find this to be misconduct in office and conduct clearly prejudicial to the administration of justice, in contravention of the provisions of Const 1963, art 6, § 30, and GCR 1963, 932.4.”
A review of the record reveals that the findings of the commission are amply supported. Further, respondent has filed no objection to the master’s report upon which they are based. We therefore adopt the findings of fact and conclusions of law in the quoted portions of the commission’s opinion.
To sum up, we find, as did the commission, that respondent’s actions, taken as a whole, constitute conduct clearly prejudicial to the administration of justice, misconduct in office, and persistent failure to perform judicial duties, all proscribed by Const 1963, art 6, § 30, and GCR 1963, 932.4.
Certainly, this egregious misconduct and judicial perfidy warrant the imposition of disciplinary measures. This Court cannot ignore respondent’s acts, not only because they violate the laws of this state, but also because, as stated in Del Rio:
"[T]he real issue in this case [is] the preservation of the integrity of the judicial system.
"The functions and decisions of a judge have an incalculable impact on the community at large. A citizen’s experience with the law is/often confined to contact with the courts. Therefore, it is important not only that the integrity of the judiciary be preserved but that the appearance of that integrity be maintained.” Del Rio, 725.
The foregoing analysis applies with equal force to respondent.
Accordingly, in light of the nature and extent of his misconduct as documented by the commission, and pursuant to GCR 1963, 932.25, we hereby censure Charles V. Probert and impose a five-year conditional suspension without pay effective the date of this decision. Should he regain judicial office during that time, Mr. Probert will nevertheless be debarred from exercising the power and prerogatives of the office until at least the expiration of the suspension. Pursuant to GCR 1963, 866, the clerk of the Court is ordered to issue final process immediately upon release of this opinion.
Coleman, C.J., and Williams, Fitzgerald, and Blair Moody, Jr., JJ., concurred with Ryan, J.
Justice Levin’s opinion, p 245 (emphasis added).
The fact that the respondents in Mikesell, Del Rio, and Bennett were sitting judges when we imposed discipline and respondent is not is a distinction without a difference insofar as this Court’s power to impose the conditional suspensions is concerned. If we lacked the power to suspend those persons from judicial offices not then held, the suspensions in those cases exceeded our power. However, nobody has made that claim, then or now.
In contending that the case is moot, respondent implies that it is impossible to suspend, retire or remove a person from a position he does not hold. We agree. This is entirely consistent with the issuance of a conditional suspension that will become operative, if ever, only in the future against a person who does not presently occupy judicial office.
For a concise description of these purposes, see the statement of the American Bar Association quoted in fn 10, infra.
The relationship of a judge to the judiciary and the judiciary to the public are expressed in the words of Canon 1 of our Code of Judicial Conduct:
"A Judge Should Uphold the Integrity and Independence op the Judiciary
“An independent and honorable judiciary is indispensable to justice in our society. A judge should participate in establishing, maintaining, and enforcing, and should himself observe, high standards of conduct so that the integrity and independence of the judiciary may be preserved. A judge should always be aware that the judicial system is for the benefit of the litigant and the public, not the judiciary. The provisions of this Code should be construed and applied to further those objectives.”
In the Matter of Del Rio, 400 Mich 665, 725; 256 NW2d 727 (1977).
See In re Inquiry Relating to District Judge Harold L Hammond, 224 Kan 745; 585 P2d 1066 (1978) (public censure of judge who had resigned due to physical disabilities).
Moreover, censure of a former judge would not preclude on double jeopardy grounds additional discipline, such as removal, based on the same misconduct were that person to regain judicial office in the future. As we noted in In the Matter of Mikesell, 396 Mich 517, 528; 243 NW2d 86 (1976), commission proceedings are not criminal in nature:
" 'The proceedings of the Judicial Board are investigatory and advisory and are not binding upon the Supreme Court. No determination of criminal guilt is made, but merely a determination of the Judicial Board’s view of the conformity of the subject of investigation to the state constitutional standards for judicial office. Similarly, the resulting Order of the Supreme Court does not operate as a sanction for criminal guilt but as a judgment on judicial ñtness. At most, the proceedings of the Judicial Board could be characterized as quasi-judicial administrative hearings, and the Order of the Supreme Court as a judicial disciplinary order.’ ” (Emphasis in original) (quoting Keiser v Bell, 332 F Supp 608, 616 [ED Pa, 1971]).
Thus, we held in Ransford v Graham, 374 Mich 104, 109; 131 NW2d 201 (1964), that the refusal of the Michigan House of Representatives to vote for the judge’s removal did not preclude, on double jeopardy grounds, our subsequent suspension of him because "[n]either the proceedings in this Court nor those in the legislature were criminal”. Accordingly, constitutional provisions, insofar as they are designed to afford rights to criminal defendants, are inapposite to commission proceedings. See generally 53 ALR3d 882, § 12[a], pp 912-914. Compare fn 13, infra.
To the same effect is the following statement of the Supreme Court of North Carolina:
"[I]t would indeed be a travesty if a judge could avoid the full consequences of his misconduct by resigning from office after removal proceedings had been brought against him.” In re Inquiry Concerning a Judge No 53, Linwood T Peoples, 296 NC 109, 150-151; 250 SE2d 890, 914 (1978).
Moreover, Justice Levin concedes as much:
“We recognize that the Judicial Tenure Commission’s ability to recommend discipline based on prior misconduct in office might be embarrassed if judges were able to shield themselves from inquiry by resigning and could wait until evidence of misdeeds has faded with time, and then regain and hold judicial office with impunity.” Justice Levin’s opinion, fn 15.
This recognition leads my brother to qualify the ban against continuing proceedings after a judge leaves office:
"There might * * * be situations where it would be appropriate for this Court to direct the Judicial Tenure Commission to proceed against an ex-judge to the point of preserving testimony.” Id.
We are not convinced that such a limitation on the commission’s range of action is prudent.
Brief in Support of Dissenting [Commission] Opinion and Minority Recommendation, p 2.
Considerations affecting the decision to continue proceedings against a judge after he has left office may include, but are not limited to, the likelihood of re-election to judicial office, the gravity of the misconduct, and the importance of official reprobation to public confidence and trust in the integrity of the Michigan judicial system. In this regard, those charged with the task of supervising the conduct of our judges must always bear in mind the functions of judicial discipline:
"[T]he major purpose of judicial discipline is not to punish judges, but to protect the public, preserve the integrity of the judicial process, maintain public confidence in the judiciary, and create a greater awareness of proper judicial behavior on the part of judges themselves.” ABA Standards Relating to Judicial Discipline and Disability Retirement (Tentative Draft, 1977, approved by ABA House of Delegates, February, 1978), p 2 (emphasis added).
It might be argued that permitting proceedings to continue against a judge who leaves office during the pendency of proceedings would require us to permit the commission to begin proceedings against a judge after he leaves office. This reasoning, however, is not cogent. To forbid the filing of a complaint after a judge has left office is simply to give effect to considerations underlying our various statutes of limitations. It would also tend to ensure that the commission is not acting pursuant to motives unrelated to its proper mission. Finally, a distinction related to the purpose of commission proceedings can be drawn between filing a complaint against a sitting judge and a former judge: a well-founded complaint may encourage the sitting judge, who is guilty of misconduct, to resign or not run for re-election. These pressures, which are germane to the essential purpose of the commission — keeping unfit judges off the bench — have no relevance to a former judge.
"Suspension” is defined as "[a]n ad interim stoppage or arrest of official power and pay; —not synonymous with 'removal’ which terminates wholly the incumbency of the office or employment”. Black’s Law Dictionary (4th rev ed), p 1616.
"Retirement” refers to divestiture of office for reasons pertaining to physical or mental infirmity, rather than misconduct, and is not in issue here. ABA Standards Relating to Judicial Discipline and Disability Retirement, supra, Commentary to Standard No. 6.7, pp 52-53; Standard Nos. 8.1-8.8, pp 60-63.
Neither “suspension” nor "removal” connotes a permanent disqualification from office.
In contrast, we may utilize the power conferred by § 30 to remove a judge. Aside from § 30, the power to remove a judge resides in our Governor and Legislature. Const 1963, art 6, § 25 (for "reasonable cause” short of grounds for impeachment); art 11, § 7 (impeachment of civil officers, including judges "for corrupt conduct in office or for crimes or misdemeanors”).
This, of course, is not to say that we are empowered to act arbitrarily or capriciously. A determination of judicial unfitness must always be accompanied by the safeguards of procedural due process. See, e.g., In re Graham, 366 Mich 268, 275; 114 NW2d 333 (1962); In re Heideman, 387 Mich 630, 632; 198 NW2d 291 (1972); In the Matter of Del Rio, 400 Mich 665, 682-689; 256 NW2d 727 (1977). See generally GCR 1963, 930, 932.
Most cases of judicial discipline are handled within the provisions of § 30. The question of this Court’s power under § 4 to discipline judges, however, is independent of that fact.
In In the Matter of Del Rio, 400 Mich 665, 679; 256 NW2d 727 (1977), the commission recommended that Judge Del Rio "be enjoined from holding judicial office in the future”. In a separate concurring opinion, I stated that I "would enjoin him from serving in any state judicial office in the future”. Del Rio, p 727 (emphasis added). As we reaffirmed in that case, "the right of the people of a judicial circuit to the service of a judge whom they have elected is subject to express and distinct limitations and qualifications provided for by the Constitution and statutes”. 400 Mich 685, fn 6 (emphasis added) (construing In re Huff, 352 Mich 402; 91 NW2d 613 [1958]).
See fn 11, supra.
"[The] opportunity to be re-elected * * * is much too intangible an interest to invoke the protection of due process.” Gruenburg v Kavanagh, 413 F Supp 1132, 1136-1137 (ED Mich, 1976), quoted in In the Matter of Del Rio, 400 Mich 665, 685; 256 NW2d 727 (1977).
Justice Levin’s opinion, p 259.
"Of primary importance are two basic rules of constitutional construction.
"1. Every statement in a state constitution must be interpreted in the light of the whole document.
“2. Because fundamental constitutional principles are of equal dignity, none must be so construed as to nullify or substantially impair another.” People v Blachura, 390 Mich 326, 333; 212 NW2d 182 (1973).
This is consistent with the fact that neither of our coordinate branches of government is constitutionally authorized to permanently enjoin a person from holding judicial office. Even in the case of the most extreme civil sanction that can be inflicted upon a judge— impeachment — the penalty “shall not extend further than removal from office”. Const 1963, art 11, § 7.
Aside from deciding that our power of superintending control, Const 1963, art 6, § 4, does not enable us to issue a permanent injunction against holding judicial office, we reserve the question whether and to what extent we could properly exercise the power in this case. | [
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Per Curiam.
The dispositive issue is whether a writ of habeas corpus ad prosequendum constitutes a detainer within the meaning of the Interstate Agreement on Detainers, MCL 780.601 et seq.; MSA 4.147(1) et seq.
I
The prosecution, by means of writs of habeas corpus ad prosequendum issued by the Recorder’s Court for the City of Detroit, secured the temporary custody of defendant from authorities at the federal prison in Milan, Michigan, to proceed against him on charges of murder, assault with intent to murder, and carrying a concealed weapon. All charges were dismissed with prejudice at the trial court level based upon a perceived violation of Article IV(c) of the Interstate Agreement on Detainers:
"In respect of any proceeding made possible by this Article, trial shall be commenced within one hundred twenty days of the arrival of the prisoner in the receiving state, but for good cause shown in open court, the prisoner or his counsel being present, the court having jurisdiction of the matter may grant any necessary or reasonable continuance.”
II
The prosecution appealed, claiming among other things that the Interstate Agreement on Detainers was inapplicable since a writ of habeas corpus ad prosequendum is not a detainer within the meaning of the Interstate Agreement on Detainers. Although the Court of Appeals rejected the prosecution’s claim, the panel nonetheless remanded the case to the trial court for further proceedings because it was unable to determine from the record whether the murder charges and a carrying a concealed weapon charge had been brought within 120 days.
Ill
The Interstate Agreement on Detainers is a congressionally sanctioned interstate compact, construction of which presents a federal question. The United States Supreme Court has ruled that the provisions of the agreement apply if a participating jurisdiction which has untried charges against a prisoner lodges a detainer with the jurisdiction where the prisoner is incarcerated and that a writ of habeas corpus ad prosequendum is not a detainer within the meaning of the agreement. United States v Mauro, 436 US 340; 98 S Ct 1834; 56 L Ed 2d 329 (1978). The decision in Mauro has been followed regardless of whether the writ emanated from federal or state court.
We conclude that the writ of habeas corpus ad prosequendum remains available as means for a state to seek temporary custody of an accused incarcerated in another jurisdiction. The decision by federal authorities to honor a writ in the absence of a detainer as a matter of comity does not trigger the provisions of the agreement. Since the prosecution in the instant case obtained temporary custody as a result of the writ and no detainer had been lodged against the defendant, the time provision for trial in Article IV(c) is inapplicable.
We reverse the judgments of the Court of Appeals and Recorder’s Court for the City of Detroit, reinstate the charges against the defendant, and remand the case to the Recorder’s Court for the City of Detroit for further proceedings consistent with this opinion. We do not address the issues raised on cross-appeal. Upon remand, the defendant may raise the issue involving his constitutional and statutory rights to a speedy trial as well as his claim that the murder charges should be dismissed because the prosecution breached an agreement to grant immunity. The people’s motion to strike is denied as moot. We do not retain jurisdiction.
Coleman, C.J., and Kavanagh, Williams, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred.
The common-law writ of habeas corpus ad prosequendum is an order by a court directing authorities to produce a prisoner to face criminal charges. See State v Fender, — W Va —, —; 268 SE2d 120, 123 (1980).
A detainer is " 'a notification filed with the institution in which a prisoner is serving a sentence, advising that he is wanted to face pending criminal charges in another jurisdiction’ ”, United States v Mauro, 436 US 340, 359; 98 S Ct 1834; 56 L Ed 2d 329 (1978). In United States v Dixon, 592 F2d 329, 332, fn 3 (CA 6, 1979), the Court describes a detainer as
"simply a notice filed with the institution in which a prisoner is serving a sentence, advising that the prisoner is wanted to face pending criminal charges elsewhere, and requesting the custodian to notify the filing jurisdiction prior to releasing the prisoner. Filing a detainer is an informal process that generally can be done by any person who has authority to take a prisoner into custody. Furthermore, a detainer remains lodged against a prisoner without any action being taken on it. Ridgeway v United States, 558 F2d 357 (CA 6, 1977), cert den 436 US 946; 98 S Ct 2850; 56 L Ed 2d 788 (1978). See also United States v Maura, 436 US 340; 98 S Ct 1834; 56 L Ed 2d 329 (1978).”
95 Mich App 536; 291 NW2d 109 (1980). The Court of Appeals reversed dismissal of another charge of carrying a concealed weapon after finding only 97 days of unexcused delay had lapsed at the time of dismissal.
Cuyler v Adams, 449 US 433; 101 S Ct 703; 66 L Ed 2d 641 (1981).
See Foran v Metz, 463 F Supp 1088 (SD NY, 1979); United States ex rel Schlobohm v Medical Center for Federal Prisoners, 453 F Supp 618, 620 (SD Ill, 1978); Bean v United States, 409 A2d 1064, 1066 (DC App, 1979); People v Befeld, 90 Ill App 3d 772; 413 NE2d 550 (1980); State v Boone, 40 Md App 41; 388 A2d 150 (1978); Commonwealth v Florence, — Mass App —, —; 387 NE2d 152, 153 (1979); State v Kelsey, 592 SW2d 509 (Mo App, 1979); Commonwealth v Diggs, 273 Pa Super 121; 416 A2d 1119 (1979); Moore v Whyte, — W Va —; 266 SE2d 137 (1980). See generally Anno: Interstate Agreement on Detainers Act, 98 ALR3d 160, 192-195, 245-247. | [
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Per Curiam,
In this case we examine the question of-whether Michigan’s no-fault insurance act has abrogated, in automobile injury cases, the common-law action for loss of consortium.
I
Plaintiffs, husband and wife, brought suit for damages arising out of an automobile accident which occurred on July 30, 1974. Plaintiff Eugene Rusinek claimed he sustained personal injuries to his neck, back and elbow amounting to "serious impairment of body function” within the meaning of the no-fault act. Plaintiff Marie Rusinek, who was not involved in the accident, claimed the loss of consortium arising out of her husband’s injuries. The trial court denied a motion to dismiss the consortium claim, and, following trial on the question of damages, the jury returned a verdict of $50,000 in favor of Mr. Rusinek and a verdict of $10,000 in favor of Mrs. Rusinek. A motion for a new trial was denied.
On appeal, the Court of Appeals reversed both verdicts, the panel agreeing that an instructional error required retrial on the issue of damages as to Mr. Rusinek, and a majority of the panel holding that Michigan’s no-fault act had abolished the right of the spouse of a person injured in an automobile accident to recover in tort for loss of consortium.
The decision of the Court of Appeals on this question directly conflicts with the decision reached by another panel of the Court of Appeals in Warner v Brigham, 90 Mich App 640; 282 NW2d 428 (1979), lv den 407 Mich 907 (1979). In another reported decision, Cotton v Minter, 469 F Supp 199 (ED Mich, 1979), the United States District Court, interpreting Michigan law, held that Michigan’s no-fault act does not preclude an action for loss of consortium.
We take up the question to resolve this conflict, and we hold that Michigan’s no-fault act has not abolished the common-law action for loss of consortium.
II
The right of a spouse to recover from a tortfeasor for loss of consortium occasioned by injuries inflicted on the other spouse is well established in Michigan’s common law. Montgomery v Stephan, 359 Mich 33; 101 NW2d 227 (1960). Consortium is defined as including "society, companionship, service, and all other incidents of the marriage relationship”. Washington v Jones, 386 Mich 466, 472; 192 NW2d 234 (1971).
In 1972, Michigan enacted its no-fault insurance act which partially abolished the common-law remedy in tort for persons injured by negligent motor vehicle tortfeasors. The act was a response to the long payment delays, inequitable payment structure, and high legal costs inherent in the tort liability system. The goal of the no-fault system was to provide victims of motor vehicle accidents assured, adequate, and prompt reparation for certain economic losses through a system of compulsory insurance which would provide victims with benefits for their injuries as a substitute for their common-law remedy in tort. Shavers v Attorney General, 402 Mich 554; 267 NW2d 72 (1978). Section 3135 of the no-fault act, the operative provision which partially abolished tort liability and which is the source of the present controversy, provides, in pertinent part:
"(1) A person remains subject to tort, liability for noneconomic loss caused by his or her ownership, maintenance, or use of a motor vehicle only if the injured person has suffered death, serious impairment of body function, or permanent serious disñgurement.
"(2) Notwithstanding any other provision of law, tort liability arising from the ownership, maintenance, or use within this state of a motor vehicle with respect to which the security required by section 3101(3) and (4) was in effect is abolished except as to:
"(b) Damages for noneconomic loss as provided and limited in subsection (1).” (Emphasis added.) MCL 500.3135; MSA 24.13135.
It is undisputed that loss of consortium is a noneconomic loss. The question that has arisen, however, is whether "liability for noneconomic loss” refers only to losses suffered by the "injured person” who "has suffered death, serious impairment of body function or permanent serious disfig urement” or whether the phrase: "if the injured person has suffered death, serious impairment of body function or permanent serious disfigurement”, is merely the statement of a threshold condition that must be met before another who suffers noneconomic loss may seek recovery in tort. Under the latter interpretation the spouse of a person who receives above-threshold injuries may recover for loss of consortium, while under the former interpretation he or she may not.
In Warner v Brigham, supra, a majority of a Court of Appeals panel held that the language of the statute was clear; that it did not limit liability to those losses suffered by an injured person, and that any noneconomic loss compensable at common law may be recovered under the statute once the injured person has suffered injuries which meet the statute’s threshold requirements. The dissenting member of the panel, Judge Bash ara, found the language of the statute ambiguous and wrote that the only reasonable construction consistent with the operative language of the statute and the act’s purpose of limiting automobile injury tort actions was that tort recovery was limited to injured persons who meet the threshold requirements.
A majority of the Court of Appeals panel in the instant case agreed with the reasoning of Judge Bashara and held that the spouse of a person injured in an automobile accident may not recover for loss of consortium. Judge Cynar dissented from this part of the decision, saying that because the purpose of the no-fault act is to compensate persons injured in automobile accidents and since claims for loss of consortium had long been recognized in Michigan and the no-fault act did not specifically exclude such claims, the act should be construed as not barring the spouse’s claim for loss of consortium.
Ill
While we agree that the language of the statute is ambiguous and subject therefore to judicial construction, we believe the dispositive principles of construction applicable here are found in the United States District Court decision in Cotton v Minter, supra. There the Court concluded that neither the language of the statute nor the legislative purpose of the act were dispositive. The Court noted that the statute was equally susceptible of either interpretation and that it was unlikely that the existence of consortium claims contributed significantly to the problems of high legal costs and the over-burdened court system that the no-fault act was designed to alleviate. Consequently, the Court followed the long-established principle of statutory construction that statutes which abolish the common law should be construed narrowly. Bandfield v Bandfield, 117 Mich 80; 75 NW 287 (1898). The Court concluded that since loss of consortium is a well-established cause of action at common law in Michigan the no-fault statute should not be construed as impliedly repealing the right to recover for loss of consortium.
We find the rationale of the Court in Cotton v Minter to be persuasive. Const 1963, art 3, § 7 provides:
"The common law and the statute laws now in force, not repugnant to this constitution, shall remain in force until they expire by their own limitations, or are changed, amended or repealed.”
Although a statute which expressly extinguishes a common-law right is a proper exercise of legislative authority, Myers v Genesee County Auditor, 375 Mich 1; 133 NW2d 190 (1965), statutes in derogation of the common law must be strictly construed, Morgan v McDermott, 382 Mich 333; 169 NW2d 897 (1969), and will not be extended by implication to abrogate established rules of common law, Bandfield v Bandfield, supra. The statute, however, must be construed sensibly and in harmony with the legislative purpose. In re Cameron’s Estate, 170 Mich 578; 136 NW 451 (1912).
Applying these principles to the question presented in this case, we conclude that the no-fault act must be construed as retaining the common-law action for loss of consortium. The common-law action for loss of consortium in Michigan is not expressly abolished by the language of § 3135. If this section abolishes this common-law right it must be found to do so by implication. There is nothing, however, in the language of the act or its legislative purposes that requires such a construction. Since it is derived from the injured spouse’s action, a claim of loss of consortium does not create a new case nor does it contribute significantly to the problems the act was intended to alleviate.
Accordingly, in lieu of granting leave to appeal, pursuant to GCR 1963, 853.2(4), we reverse that part of the Court of Appeals judgment which reversed the trial court judgment as to plaintiff Marie Rusinek and remand the case to the Court of Appeals for consideration of the issue left unaddressed by the Court of Appeals. In all other respects the application for leave to appeal is denied because the Court is not persuaded that the question presented should now be reviewed by this Court.
The motion for leave to file a brief amicus curiae is thereby rendered moot and it is denied.
Costs to appellants.
Coleman, C.J., and Kavanagh, Williams, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred. | [
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Leave to appeal denied August 26, 1981. | [
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Request for appointment of counsel denied.
Case below, Court of Appeals No. 19554, per curiam opinion of August 15, 1975.
Kavanagh, C. J., and Levin, J., would grant appointment of counsel. | [
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Ryan, J.
Appellant, Sheldon Beck, is before the Court on an appeal from the State Bar Grievance Board’s affirmance of a two-year suspension of his privilege to practice law, ordered by the hearing panel.
Mr. Beck was charged with four counts of professional misconduct, two of which were dismissed by the panel after a hearing. As to the remaining two counts, it was found that Mr. Beck violated Canon 6, DR 6-101(A)(3), Canon 7, DR 7-101(A)(2), DR 7-101(A)(3), and Canon 1, DR 1-102(A)(4), DR 1-102(A)(5) of the Code of Professional Responsibility, and State Bar Rule 15, § 2(1) — 2(4). The disci pline imposed was a two-year suspension and costs of $631.90.
The findings and order of discipline were affirmed by the State Bar Grievance Board.
The appellant has advanced numerous assignments of error which present three issues on appeal:
1) Whether the hearing panel’s findings and conclusions are supported by the record;
2) Whether appellant was afforded a fair hearing before the hearing panel; and
3) Whether appellant was afforded a fair hearing before the State Bar Grievance Board.
I
The two counts of the formal complaint upon which the findings of misconduct are based arose out of requests for investigation from two of Mr. Beck’s clients. In one case, the complainant, a Mr. Hawkins, testified that he retained Mr. Beck in November of 1973 to institute divorce proceedings and paid him $200. The complaint for divorce was prepared and signed by Mr. Hawkins but never filed or served upon the defendant. The complainant further stated that throughout April, 1974, he was unable to reach appellant by telephone and that he received no response to a letter to appellant asking for an explanation of the failure to file the complaint. Mr. Hawkins finally retained other counsel and obtained a divorce in October, 1974. His $200 retainer was refunded in October, 1974, through the State Bar Grievance Administrator’s office.
Mr. Beck testified that his failure to file the divorce complaint was due to his misunderstanding of his client’s instructions. He stated his impression was that the prepared complaint was not to be filed until the client had attempted to gain custody of his children from Mrs. Hawkins. Mr. Beck stated he understood that further action in the matter was to abide further instructions from his client, and since none were forthcoming, he did nothing about the case.
The second formal complaint concerned another client, Mrs. Swiencicki, who testified that she retained Mr. Beck to attempt to recover benefits to which she believed she was entitled under an insurance policy. Appellant accepted a retainer totaling $225, prepared and filed a complaint, affidavit and default, and took a default judgment. The judgment was subsequently set aside by the court and the insurance company filed an answer. Mr. Beck, however, failed to notice the case for trial and the action was dismissed for lack of progress in October, 1973. The complainant testified that Mr. Beck told her that trial dates were set in March and July of 1974; that she met with appellant prior to each date to prepare for trial; and that he told her that settlement negotiations with the insurance company ultimately resulted in the defendant agreeing on the day before the July trial date to pay the full amount of the claim.
Mr. Beck testified that the meetings with the complainant in March and July, 1974 were not for the purpose of. preparing for trial; denied telling the client that trial dates had been obtained; denied telling her that he had negotiated a settle ment, and argued that discipline should not be predicated upon the dismissal of the complainant’s case for lack of progress because the lawsuit was reinstated in February, 1975 and ultimately settled in October, 1975.
In State Bar disciplinary proceedings on appeal to the Supreme Court, we review the findings and conclusions of the hearing panel, as affirmed by the State Bar Grievance Board, to determine whether they "have proper evidentiary support on the whole record”. State Bar Grievance Administrator v Estes, 390 Mich 585, 593; 212 NW2d 903 (1973); Grievance Board Rule 16.24(h).
Having done so in this case, we conclude that the testimony of Mr. Beck’s former clients clearly supports the panel’s conclusions that Mr. Beck accepted a retainer from Mr. Hawkins to file a divorce action and failed to carry out the undertaking, contrary to Canon 6, DR 6-101(A)(3), and Canon 7, DR 7-101(A)(2) of the Code of Professional Responsibility, and that he accepted a retainer from Mrs. Swiencicki to attempt to collect an insurance benefit and allowed the case to be dismissed on the no progress calendar. The record further supports the conclusion that Mr. Beck misrepresented to Mrs. Swiencicki the status of her case and the settlement negotiations, contrary to Canon 7, DR 7-101(A)(2), DR 7-101(A)(3), Canon 6, DR 6-101(A)(3), and Canon 1, DR 1-102(A)(4), DR 1-102(A)(5).
Mr. Beck’s testimony was sharply at odds with that of the two complainants. Confronted by the conflicting testimony, the hearing panel was required to determine whose version of the facts was truthful. The matter was resolved against the appellant upon evidence fully justifying the conclusions reached. The grievance board committed no error in affirming the findings and conclusions of the hearing panel.
II
Appellant next contends that he was denied a fair hearing before the hearing panel because a panel member questioned appellant regarding previous disciplinary proceedings; because of certain errors in the order of suspension and because the panel "made such repeated, incorrect and prejudicial rulings as to completely undermine [appellant’s] defenses”.
The questions put to Mr. Beck by the panel, touching upon previous orders of discipline, were entirely proper because Grievance Board Rule 16.13 requires that the hearing panel’s report include "a summary of all previous misconduct for which the respondent has been disciplined”. The questions were designed to elicit the required information and were proper for that purpose.
The errors in the order of suspension amounted to a misstatement of certain State Bar Rules, and reference to the order of Panel "1” when the hearing was conducted before Panel "3”. As to the first claim, the order refers to the disciplinary rules under the original numbering. Compare 383 Mich xl with 386 Mich lxxiii. As to the second claim, the members of the hearing panel that heard the testimony are the members who entered the report and order. The "error” was obviously typographical. No prejudice resulted.
Finally, we hold that the record does not support appellant’s claim that the panel’s rulings were repeatedly erroneous so as to undermine appellant’s defense.
Appellant received a fair hearing before the hearing panel.
Ill
Appellant also contends that he was denied a fair hearing by the State Bar Grievance Board which affirmed the hearing panel’s report and order of discipline.
Appellant acknowledges our recent holding that the grievance board’s procedures are not inherently defective and do not deny a respondent due process merely because the same agency made the initial charge and the ultimate adjudication. State Bar Grievance Administrator v Baun, 395 Mich 28; 232 NW2d 621 (1975). He contends, however, that in this case the grievance administrator was present when the members of the grievance board were deliberating upon his case, thus giving rise to "special facts and circumstances” such that "the risk of unfairness is intolerably high”. See Withrow v Larkin, 421 US 35; 95 S Ct 1456; 43 L Ed 2d 712 (1975); State Bar Grievance Administrator v Baun, supra.
If Mr. Beck’s contention that the grievance administrator was present during the deliberations of appellant’s case is true, then, indeed, the "nexus between the State Bar Grievance Administrator” and the grievance board would not be "sufficiently attenuated as to negate [the] contention” that appellant was denied a fair hearing before an impartial tribunal. Baun, supra at 34.
Appellant’s supplemental record indicates that the grievance administrator may indeed have entered the room which the members of the grievance board occupied after hearing oral argument on appellant’s case. There is no evidence, however, that he took part in, or was even present during, the board’s deliberation of the case. In fact, the agenda for the board’s October 17, 1975 meeting included, inter alia, appellant’s hearing followed by certain "Administrator’s Reports” to the board.
Because there is no evidence that the grievance administrator was present during the board’s deliberation of appellant’s case, and because there is a plausible explanation for the administrator’s presence at the meeting, we do not find "special facts and circumstances” which give rise to the inference that appellant was denied a fair and impartial hearing before the State Bar Grievance Board.
We modify the order of the State Bar Grievance Board to correct the hearing panel’s order to refer to State Bar Rule 15, § 7 in lieu of State Bar Rule 14, § 7, and to refer to Grievance Board Rule 16.21 in lieu of Grievance Board Rule 15.20.
The order of the State Bar Grievance Board affirming the decision of the hearing panel is affirmed as modified.
Kavanagh, C. J., and Williams, Levin, Coleman, and Fitzgerald, JJ., concurred with Ryan, J.
Blair Moody, Jr., J., took no part in the decision of this case.
The enumerated Canons and Disciplinary Rules of the Code of Professional Responsibility provide as follows:
Canon 1: "A lawyer should assist in maintaining the integrity and competence of the legal profession.”
DR 1-102: "(A) A lawyer shall not:
"(4) Engage in conduct involving dishonesty, fraud, deceit, or misrepresentation. ■
"(5) Engage in conduct that is prejudicial to the administration of justice.”
Canon 6: "A lawyer should represent a client competently.”
DR 6-101: "(A) A lawyer shall not:
"(3) Neglect a legal matter entrusted to him.”
Canon 7: "A lawyer should represent a client zealously within the bounds of the law.”
DR 7-101: "(A) A lawyer shall not intentionally:
"(2) Fail to carry out a contract of employment entered into with a client for professional services, but he may withdraw as permitted under DR 2-110, DR 5-102, and DR 5-105.
"(3) Prejudice or damage his client during the course of the professional relationship, except as required under DR 7-102(B).”
State Bar Rule 15 provides in part:
"Sec. 2. Grounds for Discipline in General. The following acts or omissions by a member of the bar of this State, individually or in concert with any other person or persons, shall constitute misconduct and shall be grounds for discipline whether or not the act or omission occurred in the course of an attorney-client relationship.
"(1) Conduct prejudicial to the proper administration of justice;
"(2) Conduct that exposes the legal profession or the courts to obloquy, contempt, censure or reproach;
"(3) Conduct that is contrary to justice, ethics, honesty or good morals;
"(4) Conduct that violates the standards or rules of ethics or professional responsibility adopted from time to time by the Supreme Court of this State* * * .” | [
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Per Curiam.
The defendant was convicted of manslaughter in the death by stabbing of her former husband, and the Court of Appeals affirmed. In her application to this Court, the defendant raises several questions. We reach only one, and conclude that evidence of a prior assault by the defendant on the deceased was improperly admitted in rebuttal. We reverse the defendant’s conviction and remand the case to the circuit court for a new trial.
I
The defendant stabbed her former husband in the kitchen of a restaurant that she operated, and he died a short time later. There were no other witnesses to the actual stabbing, but the defendant and the deceased had been overheard arguing.
During the prosecutor’s case in chief, three of the deceased’s relatives testified that the defendant had often threatened and had occasionally attacked the deceased.
The defendant testified that her relationship with the deceased had been characterized by many acts of violence by him against her. She said that on the night in question, she told him to leave the restaurant, but he would not do so. He was intoxicated and was swearing at her. She testified that he threatened to kill her if she called the police, and when she began to dial the telephone, he began choking her and striking her head against the wall. She struggled, attempting to free herself. She did not recall having a knife in her hand or stabbing him during the struggle. The deceased released her and left the restaurant.
The defendant denied ever having tried to kill her husband. On cross-examination she denied having used a weapon during episodes about which she had testified, and said that she did not recall an event in December 1965 at the home of her husband’s sister when she found him in the company of another woman.
Over objection, the prosecutor called a police officer as a rebuttal witness. The officer testified that in December 1965 he had been assigned to investigate an attempted murder. The defendant had told him that she had found her husband with another woman and had stabbed him. The officer met with her husband and found that he had three stab wounds.
II
The testimony of the officer was first taken outside of the presence of the jury as an offer of proof. The trial judge initially said that she would allow the rebuttal witness to testify, "for the purpose of rebutting the statement made by the defendant in that she never harmed Robert Teague”. There was extensive argument, and the court reporter read back portions of the defendant’s testimony to counsel. The trial judge thereafter modified her ruling:
’’The Court: Look, I made my ruling. You asked to see it. And I told you the basis for my ruling that she did state she didn’t use any weapon against Robert Teague."
The Court of Appeals recognized the general rule that extrinsic evidence may not be used for impeachment when it relates to a collateral matter. However, in this case it found that evidence of past acts of violence by the defendant toward the deceased were admissible, and that it followed that her statement to the officer was admissible both because it was material to the question of motive and intent and because it tended to impeach her direct testimony.
III
We conclude that the evidence was not admissible, either as substantive evidence of intent and motive or as impeachment of the defendant’s testimony. There are cases in which evidence of a defendant’s prior threats to or attacks on another are relevant to prove the defendant’s motive or intent. However, in this case the evidence of an assault on the decedent under dissimilar circumstances more than ten years earlier was too remote to be relevant.
IV
Officer Johnson’s challenged testimony was not admissible as impeachment because it was extrinsic evidence offered to impeach the defendant’s veracity on a collateral matter.
We have long adhered to the familiar rule that a witness may not be impeached by producing extrinsic evidence of collateral facts. People v Culver, 280 Mich 223; 273 NW 455 (1937); People v Williams, 159 Mich 518; 124 NW 555 (1910).
Officer Johnson’s testimony that in 1965, more than 10 years before the incident involved in this case, the defendant stated that she had stabbed her husband after discovering him with another woman was collateral because it was neither "relevant to the substantive issues in the case” nor "independently provable by extrinsic evidence, apart from. the contradiction, to impeach or disqualify the witness”. See McCormick on Evidence (2d ed), § 47, p 99; § 36, pp 70-71. As explained above, the remoteness of the incident negates its relevance, and the testimony does not, absent the defendant’s denial, bear on her veracity.
In view of the disposition of this issue, we find it unnecessary to reach the other errors claimed by the defendant.
Accordingly, in lieu of granting leave to appeal, pursuant to GCR 1963, 853.2(4), we reverse the defendant’s conviction and remand to the circuit court for a new trial.
Kavanagh, Levin, Fitzgerald, Ryan, and Blair Moody, Jr., JJ., concurred.
Coleman, C.J., and Williams, J. We would affirm for reasons stated by the Court of Appeals.
The defendant testified and denied remembering having stabbed the deceased. However, that she did so was never seriously contested at trial. | [
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Blair Moody, Jr., J.
This is a joint appeal from an order of the State Bar Grievance Board of July 21, 1976, affirming an order of discipline entered by Wayne County Hearing Panel No. 14 on January 22, 1976. The instant order of discipline suspended respondent Stephen A. Crane’s license to practice law for 30 days and respondent Gary A. Roth’s license to practice law for 90 days.
There is no dispute as to the material facts involved in this case.
In March, 1969, complainants Eva and Henry Sturgeon telephoned respondent Crane in connection with an automobile accident in which Eva Sturgeon was involved on February 18, 1969. Eva Sturgeon evidently had collided with a large truck. She claimed that the cause of the accident was a defective accelerator on her automobile. As a result of the accident, Eva Sturgeon had suffered fractures of both ankles. Mr. Crane evidently agreed that his firm would represent the Sturgeons.
Respondent Crane proceeded to assign Ms. Sturgeon’s case to his associate, Donald LaKind. Mr. LaKind subsequently visited the Sturgeon’s home. At that time he interviewed the Sturgeons and secured a contingent fee retainer agreement for respondent Crane’s firm. The signatories to the agreement, dated March 10, 1969, were Mr. La-Kind and the Sturgeons.
Approximately two years later, respondent Roth contacted Eva Sturgeon and advised her that Mr. LaKind was no longer associated with respondent Crane’s firm and that he, Roth, would be handling her case.
By January of 1972, respondent Roth also had terminated his association with respondent Crane’s office. Roth informed Ms. Sturgeon of this change and told her that he was taking her file with him.
On February 4, 1972, 14 days before the three-year statute of limitations would expire, respondent Roth allegedly sent Ms. Sturgeon a form letter indicating that he was withdrawing from the case. In his letter, respondent Roth allegedly wrote complainant Sturgeon that he did not believe he could recover in her case and that if she desired to pursue the matter, she should contact another attorney. Respondent Roth also purportedly informed Ms. Sturgeon that the statute of limitations would run on February 18, 1972.
Eva Sturgeon claimed she never received the letter. Uncontroverted evidence taken before the hearing panel indicated that she had moved to a new address some months earlier. Respondent Roth could not produce any evidence of either certification or a return-receipt-requested register number regarding the letter.
Respondents Crane and Roth both were found guilty of professional misconduct for their handling of the Sturgeons’ case in violation of Canons 6 and 7 of the Code of Professional Responsibility, to wit, DR 6-101(A)(3) and DR 7-101(A)(2), and State Bar Rule 15, § 2(2) through 15, § 2(4).
We will examine the issues raised on appeal by respondents Roth and Crane separately.
I
Respondent Roth raises several issues for our consideration.
Initially, Roth maintains that he was denied due process of law because he was found guilty of professional misconduct not charged in the complaint.
The formal complaint filed against respondent Roth charged two acts of professional misconduct:
"d. That by reason of neglect and/or inattention of respondent, Eva L. Sturgeon’s cause of action was barred by the statute of limitations on February 18, 1972.
"e. That despite numerous telephone inquiries by Eva L. Sturgeon, of respondent, she was repeatedly assured by him that she was being competently and professionally served.”
The hearing panel’s finding of facts as to these two allegations were stated thus:
"[d] The three-year statute of limitations passed and no lawsuit was started. No advice was given the Sturgeons that effectively informed them that the statute had run, or that either Mr. Crane or Mr. Roth were withdrawing as counsel for the plaintiffs in a timely fashion. A letter allegedly addressed by Mr. Roth to the plaintiffs, sent some two weeks before the statute ran on a printed form, was the only communication directed to the Sturgeons, and was wholly inadequate both in scope and in timeliness.
"[e] * * * Mr. Roth made representations to them relative to pending litigation that were not true.
"There is no evidence that Mr. Crane or Mr. Roth ever retained an expert to examine the vehicle, or to evaluate the claims of Mrs. Sturgeon in a professionally competent fashion.
"Although Mr. Roth informed the Sturgeons that he was taking over the case, he in turn did nothing.
"The fact that the case was without merit, as viewed by Mr. LaKind and Mr. Roth, and seemingly conveyed to Mr. Crane, was never brought to the attention of the clients.”
Roth contends that the panel’s finding of fact regarding allegation "d” does not support the original charge. Roth asserts that he was charged with allowing Eva Sturgeon’s cause of action to be "barred by the statute of limitations * * * by reason of neglect and/or inattention”.
However, respondent Roth maintains that he was found guilty of professional misconduct because the Sturgeons were not "effectively informed” that the statute was about to run and because the notice given was "wholly inadequate” —not because he allowed the statute to run. Therefore, Roth contends he was denied due process of law because "[a]n attorney may only be found guilty of misconduct as charged in the complaint”. State Bar Grievance Administrator v Jackson, 390 Mich 147, 155; 211 NW2d 38 (1973). See also In re Ruffalo, 390 US 544; 88 S Ct 1222; 20 L Ed 2d 117 (1968).
While we agree with respondent Roth’s statement of the general proposition of law, we believe that the distinction which he posits in the case at bar is too esoteric and suggests legal hairsplitting.
We have carefully reviewed both the hearing panel and grievance board’s findings of fact in the instant case. It is clear to us that respondent Roth was properly charged and found culpable of permitting complainant Sturgeon’s cause of action to be barred by the statute of limitations through his inattention and neglect.
While the precise wording of the complaint (d) may not be exemplary, it effectively informed Mr. Roth of the charge against him and in no way prejudiced his opportunity to adequately defend himself. Given the facts of the instant case, we do not believe any miscarriage of justice occurred:
"No investigation or proceedings hereunder shall be held invalid by reason of any nonprejudicial irregularity, nor for any error not resulting in a miscarriage of justice.” Grievance Board Rule 16.34(c).
Therefore, we affirm the panel and board’s judgment as to allegation "d”.
We also affirm the hearing panel’s finding of fact as to allegation "e”. The record supports the finding that respondent Roth assured Eva Sturgeon "that she was being competently and professionally served” when in fact nothing was done by him regarding her claim. Respondent Roth’s own testimony and the testimony of complainant Sturgeon unequivocally support both the allegation and the finding. The grievance board concurred in that finding in its review of this proceeding:
" * * * Mr. Roth’s activities on behalf of the complainant were wholly inadequate, and apparently consisted of a few telephone calls, a review of the file, and a conclusion, reached in October, 1971, that there was no cause for action. The record indicates that, despite this conclusion, Roth never invited the client to his office to explain his conclusion, never advised her of it by telephone, and, in fact, waited until February 14, 1972 [sic] to have his secretary send her a form letter in which she [the secretary] simply filled in certain blanks.”
We find no merit in respondent Roth’s other allegations of error.
(1) Respondent was not denied due process because a member of the hearing panel was not present for a portion of the testimony. A quorum of two was present and the vote of the panel was unanimous. Therefore, no prejudice occurred. See State Bar Grievance Administrator v Grubbs, 396 Mich 275, 277; 240 NW2d 233 (1976).
(2) The standard of proof employed by the panel and grievance board was correctly stated as "a preponderance of the evidence”. See Grievance Board Rule 16.13 and State Bar Grievance Administrator v Posler, 390 Mich 581, 583; 213 NW2d 133 (1973).
(3) We find no due process error in a member of the hearing panel questioning respondent regarding his actions in the instant matter. It is clear the panel member was only attempting to sharpen the issue and ascertain the facts. This does not constitute bias or prejudice. See State Bar Grievance Administrator v Baun, 395 Mich 28; 232 NW2d 621 (1975).
(4) Respondent was not denied due process because his demand for copies of documents, lists of witnesses and a bill of particulars was not met. Respondent made no attempt to enforce his demand by bringing it to the attention of the panel at the hearing. Nor did he make an assignment of error regarding this matter in his petition for review by the grievance board. Therefore, we can only conclude that respondent waived his demand since neither the panel nor the board was given an opportunity to take corrective action. Cf. Taylor v Lowe, 372 Mich 282, 283; 126 NW2d 104 (1964).
We conclude, therefore, that the hearing panel and grievance board’s findings in Roth’s case are supported by competent evidence on the whole record. These findings fully support and warrant disciplinary action by the State Bar Grievance Administrator.
However, this Court has the authority under Grievance Board Rule 16.24(h) to "make such order as may be deemed appropriate” concerning the actual disciplinary action taken. In view of that authority, the respondent’s previously unblemished record and the equities of this particular case, we affirm the board’s order of suspension; but we reduce the period of suspension from 90 days to 30 days. State Bar Grievance Administrator v Estes, 390 Mich 585;. 212 NW2d 903 (1973). The panel and board’s determination as to costs, and other requirements, are affirmed.
II
Respondent Crane contends that the hearing panel and grievance board erred in finding him guilty of professional misconduct in the instant case. We agree with respondent and accordingly reverse both the panel and the board.
The hearing panel and grievance board found that respondent Crane failed to fulfill his continuing obligation to supervise his associates’ handling of Eva Sturgeon’s case after his firm had entered into a retainer agreement with her.
The panel and board maintain that respondent Crane’s failure to adequately supervise his associates’ handling of a legal matter entrusted to him constitutes professional misconduct. DR 6-101(A)(3) and DR 7-101(A)(2), supra. Furthermore, the panel and board found respondent Crane professionally culpable because he never properly withdrew from the case. Code of Professional Responsibility, DR 2-110(A)(2).
A careful reading of the record in the instant case, however, does not support the panel’s conclusions. The following uncontroverted facts were clearly established at the hearing through the testimony of complainant Sturgeon and respondent Roth:
(1) Although the contingent fee agreement was with the "Law Offices of Stephen A. Crane”, complainant Sturgeon initially dealt only with attorney LaKind and was under the impression that he was expediting her case. She never met respondent Crane.
(2) Complainant Sturgeon was fully informed by attorney Roth that he, Roth, was replacing LaKind and that he would be handling her case.
(3) Later, complainant Sturgeon was personally notified by attorney Roth that he was leaving respondent Crane’s firm and would be taking her file with him.
(4) Complainant Sturgeon agreed to attorney Roth’s taking her file with him into a new law firm.
(5) Events (3) and (4) occurred approximately two months before respondent Roth allegedly attempted to withdraw from the case and before the statute of limitations expired.
Given this unique factual sequence, we are unwilling to hold respondent Crane culpable of professional misconduct. While it is true that under certain circumstances a senior attorney who assigns a file to an associate incurs some supervisory responsibilities, the record is clear in this case that respondent Crane was no longer attorney Roth’s supervising attorney during the crucial period of the charged misconduct.
Both attorney Roth and complainant Sturgeon testified that the file in question was no longer entrusted to respondent Crane’s firm for nearly two months prior to the running of the statute of limitations. Attorney Roth was no longer a member of Crane’s firm. Furthermore, Ms. Sturgeon acknowledged that she expected Mr. Roth to continue handling the matter for her. We find these facts to be critical.
Therefore, whatever respondent Crane’s previous association with the Sturgeons, LaKind and Roth may or may not have been becomes inconsequential. Under the circumstances Roth became solely responsible for the file once he disassociated himself from Crane’s firm. Roth had sufficient time to investigate, prepare and commence suit on his own.
Additionally, we find scant evidence to support any finding of fact that the Sturgeons ever seriously believed Crane was the supervising attorney even while Messrs. LaKind and Roth were handling the file for Crane’s office.
Finally, while we agree with the panel and board that respondent Crane did not properly withdraw his firm from the case, Code of Professional Responsibility, DR 2-110(A)(2), we do not find grounds for disciplining Crane in this case since Roth effectively informed the Sturgeons of Crane’s withdrawal. Furthermore, the Sturgeons acknowledged and accepted Roth’s assumption of responsibility. Respondent Crane was careless in protecting himself; however, any previous culpability, actual or alleged, was expunged, given these facts.
In light of the foregoing, we reverse the grievance board’s order of discipline regarding respondent Crane. The State Bar Grievance Administrator shall reimburse Crane for any costs assessed by the grievance board.
III
As to respondent Roth, the grievance board’s order is affirmed as modified. No costs.
As to respondent Crane, the grievance board’s order is reversed. Costs to respondent-appellant.
Kavanagh, C. J., and Williams, Levin, Coleman, Fitzgerald, and Ryan, JJ., concurred with Blair Moody, Jr., J.
"DR 6-101. Failing to Act Competently.
"(A) A lawyer shall not:
"(3) Neglect a legal matter entrusted to him.”
"DR 7-101. Representing a Client Zealously.
"(A) A lawyer shall not intentionally:
"(2) Fail to carry out a contract of employment entered into with a client for professional services, but he may withdraw as permitted under DR 2-110, DR 5-102, and DR 5-105.”
"Rule 15. Standards of Conduct.
"Sec. 2. Grounds for Discipline in General. The following acts or omissions by a member of the bar of this State, individually or in concert with any other person or persons, shall constitute misconduct and shall be grounds for discipline whether or not the act or omission occurred in the course of an attorney-client relationship.
"(2) Conduct that exposes the legal profession or the courts to obloquy, contempt, censure or reproach;
"(3) Conduct that is contrary to justice, ethics, honesty or good morals;
"(4) Conduct that violates the standards or rules of ethics or professional responsibility adopted from time to time by the Supreme Court of this State * * *
We reject outright respondent’s contention that the panel’s finding or the board’s order contradicts the great weight of the evidence.
The official firm name: "Law Offices of Stephen A. Crane”.
"DR2-110. Withdrawal from Employment
"(A) In general.
"(2) In any event,- a lawyer shall not withdraw from employment until he has taken reasonable steps to avoid foreseeable prejudice to the rights of his client, including giving due notice to his client, allowing time for employment of other counsel, delivering to the client all papers and property to which the client is entitled, and complying with applicable laws and rules.”
The firm name: "Law Offices — Bressler and Roth”.
Hearing panel transcript, pp 94-95:
Panel Member: "Mrs. Sturgeon, there is one thing that interests me. Did you understand when Mr. Roth took over this case in December of 1971, that he was going to handle it and Mr. Crane was no longer going to handle this case?
"The reason I ask that is this: As I understand .the facts, you talked to Mr. Crane because some friend of yours referred you to Mr. Crane?
Complainant: "Yes.
Panel Member: "From there on an associate of Mr. Crane came to see you, handled the matter for a while. Then Mr. Roth informed you that he was going to take the case and he handled it for a while. Then you learned that Mr. Crane and Mr. Roth had broken up and you continued to do business with Mr. Roth; is that correct? Complainant: "That is right.
Panel Member: "So that you were looking to Mr. Roth to handle your matter for you; is that the idea?
Complainant: "Yes, until he told me otherwise.
Panel Member: "And he never did?
Complainant: "He never told me any different.” | [
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Fitzgerald, J.
Defendant-appellee Rich was convicted by a jury on February 20, 1973 of breaking and entering with intent to commit larceny, contrary to MCLA 750.110; MSA 28.305. This conviction was reversed by the Court of Appeals in an unpublished per curiam opinion. Defendant-appellant Robinson was jury-convicted on July 3, 1973 of assault with intent to rob being armed, contrary to MCLA 750.89; MSA 28.284. This conviction was affirmed by the Court of Appeals in an unpublished per curiam opinion. We granted leave to appeal in each case to consider whether People v Crittle, 390 Mich 367; 212 NW2d 196, decided November 21, 1973, should be retroactively applied.
In Crittle, the defendant was charged and convicted of armed robbery. His defense was that he lacked the requisite specific intent because he was intoxicated and/or because he intended nothing more than a prank. There were some facts which were arguably supportive of each facet of this defense. The trial court charged the jury: "You would not, however, be justified in acquitting * * * unless you find * * * that he was not conscious of what he was doing or why he was doing it * * * ”. 390 Mich at 372. This instruction was held to be reversibly erroneous under the facts of Crittle because it charged the jury in effect that "if they found defendant only intended a drunken prank, they would be required to find the defendant guilty of robbery armed because in performing the prank he presumably knew what he was doing if not why he was doing it, * * * ”. 390 Mich at 373. The Court pointed out in footnote 1 of its opinion that the erroneous Crittle instruction did not even correctly state the rule of Roberts v People, 19 Mich 401, 418 (1870). This application of the law to the specific facts of Crittle in part IV of that opinion is not directly applicable here.
The question of retroactive application to these cases concerns part V of the Crittle opinion, 390 Mich at 373-374, wherein this Court opined that "trial judges would do well to follow Justice Cooley’s language” in People v Walker, 38 Mich 156, 158 (1878), in instructions on intoxication rather than the capacity standard of Roberts.
The capacity standard of Roberts was used in instructing both the Rich and Robinson juries. Neither Rich’s nor Robinson’s counsel objected to these instructions; neither defense counsel nor the trial judges had reason to anticipate this Court’s overruling in Crittle of the longstanding precedent of Roberts v People.
When the issue of retroactivity arises, the case of Linkletter v Walker, 381 US 618; 85 S Ct 1731; 14 L Ed 2d 601 (1965), is often used to determine a solution. The Linkletter test measures the question of retroactivity by three key factors: (a) the purpose of the new rule; (b) the general reliance on the old rule; and (c) the effect of retroactive application of the new rule on the administration of justice. The purpose of part V of the Crittle opinion was prospective, to insure that juries would be more accurately instructed on the law of intoxication and that of specific intent. Even the language of part V of the Crittle opinion — "trial judges would do well” — was precatory.
The latter two Linkletter factors, reliance and effect on the administration of justice, are often interdependent. Here, where there was profound reliance on the old rule, the effect of retroactive application of the new rule on the administration of justice could be marked. Instructional law with respect to the effect of voluntary intoxication upon specific intent had in this state long been governed by the rule of Roberts v People. As was stated by the Court of Appeals in footnote 6 of People v Scott, 55 Mich App 739, 746; 223 NW2d 330 (1974):
"There would appear to be a real question of whether Crittle, to the extent that it appears to repudiate the capacity standard, should be given retrospective application. While Crittle relies upon the statement made by Cooley in People v Walker, supra, it is questionable that Cooley really intended to formulate a rule different from that in Roberts v People, supra. Not only did Cooley, along with Campbell and Graves, sit on both panels, but also Cooley in his opinion in Walker indicates that what he was saying therein was fully explained by Justice Christancy in Roberts. Whatever Cooley may have meant by his language in Walker, it is the rule as stated in Roberts which has been treated as controlling for the last century. Thus while Crittle used Cooley’s language in Walker as the vehicle by which to formulate the presently approved instruction on intoxication, Crittle marked a change in the established law with respect to what the proper instruction was. It would therefore appear that since the trial courts of this state had every reason to rely on the Roberts rule which had been oft repeated as proper, the change in focus evidenced by Crittle should be given only prospective application from the decisional date of Crittle
Although I regard the Walker language elevated to law by Crittle as preferable to the rule of Roberts, I concur in the above sentiments with respect to the question of Crittle’s retroactivity. It makes no sense at all to hold trial courts to instructional standards that could not have been anticipated. In People v Kirk, 151 Mich 253, 258; 114 NW 1023 (1908), this Court "conceded that the rule of Roberts v People * * * is the law of this State.” In People v Eggleston, 186 Mich 510, 512; 152 NW 944 (1915), it was stated that the "true rule was announced in the case of Roberts v People” and followed in Walker. In People v Depew, 215 Mich 317, 320; 183 NW 750 (1921), Roberts was said to be "a leading case upon the subject in this State”. In People v Jones, 228 Mich 426; 200 NW 158 (1924), this Court reversed a conviction of assault with intent to murder, with instructions to charge the jury on retrial in accordance with the rule of Roberts. In People v Hearn, 354 Mich 468, 470; 93 NW2d 302 (1958), an intoxication instruction using the capacity standard was said to have "completely and properly” instructed the jury and "fully protected” the defendant. In People v Berryhill, 8 Mich App 497; 154 NW2d 593 (1967), then-Judge T. G. Kavanagh cited the rule of Roberts as controlling. In People v Kelley, 21 Mich App 612, 622-623; 176 NW2d 435 (1970), then-Judge Levin acknowledged that the capacity standard was a "correct statement of the law” (Kelley, supra, fn 15), but pointed out that reliance on it by the courts of this state had resulted in "misplaced emphasis” (Kelley, supra, fn 16).
The misplaced emphasis of pr e-Crittle law was corrected in that decision by a unanimous Court. However, if trial courts are to be effectively guided by our appellate pronouncements, a rational dependence on our decisions currently in effect must be encouraged.
These juries were properly instructed under the law extant; their verdicts must stand. The Court of Appeals is reversed in Rich and affirmed in Robinson.
Kavanagh, C. J., and Williams, Levin, Coleman, Lindemer, and Ryan, JJ., concurred with Fitzgerald, J. | [
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Fitzgerald, J.
Defendant Clarence Atkins stands convicted by a jury of sale of heroin. His conviction was affirmed by the Court of Appeals at 47 Mich App 558; 209 NW2d 735 (1973). We likewise affirm after having examined and answered the following questions in the negative:
(1) Whether reversal is required because the trial court did not sua sponte instruct the jury that the testimony of an addict-informer was to be received with care and caution;
(2) Whether the uncorroborated testimony of an addict-informer is insufficient as a matter of law to make a jury-submissible issue on defendant’s guilt; and
(3) . Whether the jury was misled by a failure to disclose the possibility of future favorable treatment for the addict-informer testifying against defendant.
The indictment alleged that the unlawful sale took place on or about March 12, 1971, in the City of Kalamazoo. Testimony at trial indicated that in the afternoon of that date, one Edward Nero telephoned the Kalamazoo Police Department and informed a Detective Walker that Nero had arranged to purchase heroin from the defendant. Nero had been an informer for that department for some six months. Around 10 p.m., Detective Walker and a policewoman met Nero near the place of the arranged purchase. Walker, who had worked with Nero on previous occasions, performed a pat-down search of Nero’s person and searched Nero’s car by looking on the front and rear seats, under the seats and in the glove compartment. Walker gave Nero a $20 bill after re cording the serial number. Nero then drove his car to the place where the purchase was to be made. Walker and the policewoman followed in their unmarked vehicle. They saw Nero disappear behind a house located at 216 W. Patterson Street. They saw him emerge from behind that house 10 minutes later, get back into his car, and drive to the original meeting place where he turned over to them two packets of what subsequently proved to be heroin.
Nero’s testimony supplied the only evidence directly linking defendant with the sale. The fact of Nero’s long history of heroin use, his criminal record, and his possible motives for fabrication were thoroughly explored by defense counsel. Defense counsel highlighted several contradictions in Nero’s testimony. It was also revealed that there was a breaking and entering charge pending against Nero and that he was in jeopardy of probation revocation. By questioning a Kalamazoo County Sheriffs deputy, it was revealed that when Nero was arrested in late January 1971 on the breaking and entering charge, Nero proposed a deal whereby he would become an informer for the sheriffs department in return for dismissal of the charge. However, the deputy testified that no such agreement was made.
Defense counsel did not request any special jury instructions pertaining to Nero’s credibility, and stated that he had no objections to the instructions that were given. The jury, having full knowledge of Nero’s character, history, and possible expectations of reward, returned a verdict on August 12, 1971, of guilty as charged.
On November 29, 1971, the prosecutor petitioned for nolle prosequi of the breaking and entering charges pending against Nero, on the grounds that he had returned the stolen property and had "rendered great assistance in the area of the narcotics traffic within Kalamazoo County” including testimony which had "resulted in pleas and convictions regarding narcotics violations”. The petition for order of nolle prosequi was granted by the circuit court.
I
The trend of Federal criminal trial practice is now to require a special cautionary instruction regarding the testimony of government witnesses who are narcotics addicts and who are paid informers or who have criminal charges against them. In Michigan, there is no similar tradition of judicial decision in the area of special instructions pertaining to the credibility of addict-informers. This may be due to the fact that state courts in general have retreated further than Federal courts from the common-law tradition of liberal judicial comment on the evidence in jury trials.
Michigan statute and court rule condition the requirement of an instruction on a request therefor. This requirement is binding where, as here, defendant predicates no error on the instructions actually given, but rather contends that the trial court on its own motion should have instructed in an area where no tradition of state judicial decision exists. While this Court would not be adverse to a cautionary instruction where the uncorroborated testimony of an addict-informer is the only evidence linking the accused with the alleged offense, there must be a proper request. Focusing special attention or particular suspicion on a wit ness or class of witnesses can be a risky business. Both sides should be given the opportunity to develop the record with respect to the fairness of such a proposed instruction.
In People v McCoy, 392 Mich 231, 236-238; 220 NW2d 456 (1974), this Court dealt with a related area of jury instructions regarding the credibility of accomplices. A majority of this Court therein held prospectively that it would be reversible error "to fail upon request to give a cautionary instruction concerning accomplice testimony and, if the issue is closely drawn, it may be reversible error to fail to give such a cautionary instruction even in the absence of a request to charge”. This holding does not require reversal in the instant case, nor are we of the opinion that in the interests of justice it should be so extended. First, the McCoy rule under discussion was given prospective application for the reason that it went beyond long-established Michigan precedent to the effect that special instructions regarding credibility was a matter within the sound discretion of the trial court. Second, there was no imbalance in the instructions given in the instant case. In McCoy, error was found in the trial court’s failure to balance care and caution language actually used in the instruction on alibi with similar language relating to the accomplice who testified against the defendant. Third, the jury in the case at bar was fully apprised of the criminal past, and possible motivation of witness Nero. It would not be an unfair assessment of the record herein to say that as much testimony was elicited on the issue of Nero’s credibility as on that of defendant’s guilt or innocence. Defense strategy from the outset was to put witness Nero on trial. In the face of this clear strategy, we cannot assume that defense counsel lightly disregarded the possibility of requesting a cautionary instruction or that such an instruction would have been refused if requested. Under the circumstances, MCLA 768.29; MSA 28.1052, and GCR 1963, 516.1 and 516.2 are controlling.
II
Defendant urges this Court to follow the Illinois rule that the uncorroborated testimony of an addict-informer is insufficient as a matter of law to make a jury-submissible case, and that his motion to dismiss at the close of the people’s proofs should have been granted. Most recently, this Court has stated that it "has steadfastly supported the right of the trier of fact, particularly the jury, to believe, or disbelieve, in whole or in part, any of the evidence presented”. We hold that the credibility of an addict-informer, like that of an accomplice, is a jury question, and that the jury may convict on such testimony alone.
III
Defendant has produced no facts of record, by way of a motion for new trial based on newly-discovered evidence or otherwise, indicating that an agreement for Nero’s testimony existed at the time of trial. Instead, he asserts that it would be incredibly naive to believe that there was neither an actual nor incipient deal; that if there was no actual bargain at the time of trial, Nero and the prosecutor knew there would be one within a short period of time. The prosecutor maintains that there was no agreement at the time of defendant’s trial, and that subsequent dismissal of the charge against Nero resulted from several factors, some of which had no relation to defendant’s trial. Nero, says the prosecutor, returned the property stolen during the breaking and entering and, most importantly, "blew his cover” by testifying at this trial and others so as to be of no further use in undercover work.
It would be atypical if an addict-informer did not have an expectation of consideration for his cooperation in a given case. The well of informer cooperation would soon run dry if law enforcement consistently adhered to a policy of no consideration. Furthermore, we would not be so paternalistic as to believe that jurors are not well aware of these facts of life.
Where an accomplice or co-conspirator has been granted immunity or other leniency to secure his testimony, it is incumbent upon the prosecutor and the trial judge, if the fact comes to the court’s attention, to disclose such fact to the jury upon request of defense counsel. The same requirement of disclosure should also be applicable if reasonable expectations, as opposed to promises, of leniency or other rewards for testifying resulted from contact with the prosecutor. It has been held to be a denial of due process for a prosecutor not to correct the testimony of such a witness against the defendant, where the witness testifies that he has been promised no consideration for his testimony and the prosecutor knows this statement to be false. In regard to this duty to disclose, the prosecutor’s office has been treated as an entity, and the promise of one of its attorneys, even if unknown to the assistant prosecutor trying the case, has been attributed to the state.
However, it is one thing to require disclosure of facts (immunity or leniency) which the jury should weigh in assessing a witness’s credibility. It is quite another to require "disclosure” of future possibilities for the jury’s speculation. Indeed, if a prosecutor were required to volunteer that, although there was no agreement, he intended to recommend some sort of consideration for a witness because the witness was testifying in this and other cases or had corrected his past misdeeds, could this not be viewed as vouching for that witness’s credibility? The focus of required disclosure is not on factors which may motivate a prosecutor in dealing subsequently with a witness, but rather on facts which may motivate the witness in giving certain testimony. Of the latter, this jury was made well aware by means of the thorough and probing cross-examination by defense counsel.
Affirmed.
Kavanagh, C. J., and Williams and Coleman, JJ., concurred with Fitzgerald, J.
MCLA 335.152; MSA 18.1122, repealed by 1971 PA 196.
The first Federal case to require a special instruction in this context seems to have been Fletcher v United States, 81 US App DC 306; 158 F2d 321, 322 (1946), where, at an early stage of this nation’s awakening to the problem of drug abuse, Judge Groner opined that it was a "well recognized fact that a drug addict is inherently a perjurer where his own interests are concerned”. This language has even lead defendants to request that the court instruct the jury as a matter of law that addict-informers are inherently perjurers, but refusals to so request have been sustained on appeal. Government of the Virgin Islands v Hendricks, 476 F2d 776 (CA 3, 1973). United States v Gregorio, 497 F2d 1253 (CA 4, 1974). The general language of the instruction is to the effect that the testimony of an addict-informer who is either paid or under pressure must be examined with greater scrutiny than that of an ordinary witness. United States v Masino, 275 F2d 129 (CA 2, 1960). The precise terms of the instruction have been left to the trial court whose ultimate responsibility it is to formulate the charge. One version of an instruction on informers can be found in 1 Devitt and Blackmar, Federal Jury Practice and Instructions (2d ed), § 12.02. The Devitt and Blackmar instruction does not specify the unique danger said to be present in the testimony of addict-informers. Another more general instruction on interested witness testimony can be found in Mathes, Jury Instructions and Forms for Federal Criminal Cases, 27 FRD 39, 68 (1961).
The dangers inherent in such testimony are said to include the addict’s fear of being jailed or deprived of access to drugs, and also the fear of retaliation from others in the drug trade. United States v Kinnard, 150 US App DC 386; 465 F2d 566, 571 (1972). It is unclear whether cocaine or methadone addiction is thought to present like dangers. United States v Gregorio, supra.
Failure or refusal to give the instruction is not per se reversible error. See United States v Lee, 165 US App DC 50; 506 F2d 111 (1974), Orebo v United States, 293 F2d 747 (CA 9, 1961), and Joseph v United States, 286 F2d 468 (CA 5, 1960), where the informers’ testimony was substantially corroborated. Compare United States v Griffin, 382 F2d 823 (CA 6, 1967), where the trial court failed to give the unrequested cautionary instruction, and instructed erroneously on a presumption of truth attaching to a witness’ testimony unless outweighed by evidence to the contrary.
9 Wigmore, Evidence (3d ed), § 2551.
MCLA 768.29; MSA 28.1052, reads in part: "The failure of the court to instruct on any point of law shall not be ground for setting aside the verdict of the jury unless such instruction is requested by the accused.”
GCR 1963, 516.1 and .2 read in part:
".1 Request for Instructions. At or before the close of the evidence, any party may, or at any time the court reasonably directs, the parties shall, file written requests that the court instruct the jury on the law as set forth in the request. * * * The court may make such comments on the evidence, the testimony, and the character of the witnesses as in its discretion the interests of justice require.
".2 Objections. No party may assign as error the giving or the failure to give an instruction unless he objects thereto before the jury retires to consider the verdict, stating specifically the matter to which he objects and the grounds of his objection. Opportunity shall be given to make the objection out of the hearing of the jury.”
392 Mich 231 at 240. To implement this holding, the proposed Michigan Criminal Standard Jury Instructions now circulating for study and comment contain a cautionary instruction relating to accomplice testimony.
People v Bazemore, 25 Ill 2d 74; 182 NE2d 649 (1962).
People v Fuller, 395 Mich 451; 236 NW2d 58 (1975).
People v Zesk, 309 Mich 129, 132; 14 NW2d 808 (1944).
People v Love, 43 Mich App 608; 204 NW2d 714 (1972). People v Nettles, 41 Mich App 215; 199 NW2d 845 (1972). People v Evans, 30 Mich App 361; 186 NW2d 365 (1971).
Napue v Illinois, 360 US 264; 79 S Ct 1173; 3 L Ed 2d 1217 (1959).
See Giglio v United States, 405 US 150; 92 S Ct 763; 31 L Ed 2d 104 (1972). | [
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The Governor’s executive message, filed under GCR 1963, 797.1, is considered and his request to certify the question is respectfully denied. The request is moot in light of this Court’s grant of leave to appeal and decision in Oakland County Prosecuting Attorney v Dep’t of Corrections, 411 Mich 183 (1981), in which the same issues were addressed. | [
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Ryan, J.
Defendant applies for leave to appeal his rape conviction which was affirmed by the Court of Appeals. We reverse and remand for a new trial pursuant to GCR 1963, 853.2(4).
The sole issue raised on appeal is whether the trial court abused its discretion in granting the prosecutor’s trial day motion to indorse two police chemists as witnesses and in refusing to allow the defendant a continuance in order to prepare to cross-examine them.
Defense counsel made timely objection to the motion to indorse, claimed surprise, and alleged that the indorsement would prejudice his case. He also made a timely request for a continuance in order to either depose one of the chemists or to review her report. The motion was denied apparently because the trial judge was under the impression that defense counsel had adequate opportunity to prepare for the chemist’s testimony.
The Court of Appeals based affirmance on the ground that defense counsel had been given an opportunity to review the chemist’s report 60 days prior to trial.
The record indicates that the trial court entered a discovery order on November 20, 1973 (date of trial was January 31, 1974), but that when defense counsel examined the police file two or three weeks before trial, it contained no chemist’s reports, nor any indication of their intended use in the case. Further, defense counsel’s request to the prosecutor "to produce any evidence to be used in the case” failed to evoke any information from the prosecutor regarding the proposed use of the chemist’s testimony at trial.
In his argument to the trial court and in his brief in opposition to the application for leave to appeal, the prosecutor disputes defendant’s claimed lack of opportunity to review the chemist’s report 60 days prior to trial, implying that the chemist’s report was available to defense counsel well before trial. However, at trial, the prosecutor premised his motion to indorse on the assertion that the prosecution itself did not know about the chemist-witness.
We find that the prosecutor’s assertion of essentially contradictory positions lends credence to the defendant’s claim of surprise. If the prosecutor’s witness was available to defendant for discovery well before trial, as the trial court and the Court of Appeals assumed, then the prosecutor should have been able to so inform defense counsel in response to his request, and to indorse that witness before the date of trial. On the other hand, if, as the prosecutor represented to the trial court in his motion to indorse, the witness was one that "we [the People] did not know about,” defense counsel must have been equally surprised.
It is well settled that the propriety of granting trial day indorsement of witnesses rests in the sound discretion of the trial court. MCLA 767.40; MSA 28.980, People v Davis, 343 Mich 348, 361; 72 NW2d 269 (1955); People v Blue, 255 Mich 675, 678; 239 NW 361 (1931). A motion for continuance also addresses itself to trial court discretion. People v Davis, supra; People v Blue, supra.
The precedential meaning of judicial discretion and abuse of discretion appear in Spalding v Spalding, 355 Mich 382; 94 NW2d 810 (1959), a divorce action in which the Court evaluated the record to see if the chancellor had abused his discretion. We formulated the following rule:
"Where, as here, the exercise of discretion turns upon a factual determination made by the trier of the facts, an abuse of discretion involves far more than a difference in judicial opinion between the trial and appellate courts. The term discretion itself involves the idea of choice, of an exercise of the will, of a determination made between competing considerations. In order to have an 'abuse’ in reaching such determination, the result must be so palpably and grossly violative of fact and logic that it evidences not the exercise of will but perversity of will, not the exercise of judgment but defiance thereof, not the exercise of reason but rather of passion or bias.” 355 Mich at 384-385; 94 NW2d at 811-812.
We explained the Spalding test in the criminal case context in People v Charles O Williams, 386 Mich 565; 194 NW2d 337 (1972). In that case, we reversed a conviction because the trial court refused to grant defendant’s counsel’s motion to withdraw made on the day of trial, and also refused to grant a continuance. The matter had been adjourned four times previously, and the defendant and his lawyer reached an impasse on whether to call some of defendant’s witnesses. After quoting the language in Spalding, we stated:
"While the rule laid down in Spalding is generally the correct rule to apply, a somewhat stricter standard should be observed in criminal cases where loss of freedom by incarceration is often the penalty that a convicted defendant will suffer.” 386 Mich at 573; 194 NW2d at 340.
After reviewing some of the Federal authorities dealing with the court’s discretion to grant continuances, we concluded:
"[T]he desire of the trial courts to expedite court dockets is not a sufficient reason to deny an otherwise proper request for a continuance.” 386 Mich at 577; 194 NW2d at 342.
In reversing the trial court, we enumerated four factors we considered important in finding that the trial court had abused its discretion in that case in not granting defendant a continuance: 1) the defendant was asserting a constitutional right; 2) he had a legitimate reason for asserting the right; 3) he was not guilty of negligence; 4) prior adjournments of trial were not at the defendant’s behest. To these four points we add the traditional requirement that defendant on appeal must demonstrate prejudice resulting from the trial court’s abuse of discretion. MCLA 769.26; MSA 28.1096.
These five factors, while not the sine qua non to a determination of abuse of judicial discretion, are useful criteria in this case. First, in the case at bar, we believe that the defendant’s request for a continuance encompassed the right to due process guaranteed by the state and Federal constitutions. Defendant alleges in his application and brief for leave that, because the witness in question was an expert, the evidence she offered was not the sort that could be evaluated without adequate technical preparation. Defendant asserts that research into the chemist’s area of specialty was necessary to prepare for intelligent cross-examination. We believe that the trial court’s denial of defendant’s timely request for a continuance so that counsel could prepare himself in an area in which he was understandably unfamiliar, effectively deprived defendant of the fundamental fairness to which he is entitled under the Due Process Clauses of the state and Federal constitutions.
Second, it is evident that the defendant had a legitimate reason for requesting the adjournment. The prosecutor’s motion to indorse the two witnesses surprised defense counsel. After the court granted the motion to indorse over his objection, he made a bona ñde request for time to prepare for the unexpected development in the trial.
Third, we believe, after reviewing the record, that defendant was not guilty of negligence. If we accept the prosecutor’s assertion at trial that he did not know about the witness, we could not expect defendant to be aware of her existence. If the prosecutor anticipated using the chemist, he failed to inform defense counsel of that fact or of his intention to move for her indorsement on the day of trial. The prosecutor failed to produce the report of her tests after a discovery order had been entered, even when asked by defense counsel for all evidence to be used in the case. We conclude, therefore, that defendant was not guilty of negligence in this case.
Fourth, there is no evidence in the record that the defendant caused the trial to be adjourned several times before.
Finally, the defendant has adequately demonstrated prejudice. Although the primary defense to the rape charge in this case was consent, the defendant might have lost a possible defense (i.e., no intercourse occurred) by his alleged inability to adequately cross-examine the chemist.
We conclude that, on the facts of this case, the trial court was in error not because it granted trial day indorsement, but because in granting the indorsement it did not grant a reasonable continuance to defendant in order to prepare to meet the unexpected development in the trial.
Reversed and remanded for new trial.
Kavanagh, C. J., and Williams, Coleman, Fitzgerald, and Lindemer, JJ., concurred with Ryan, J.
The following colloquy transpired on the day of trial:
The Court: Case of the People versus Roy Wilson * * * .
You may proceed.
Mr. La Bret: We have two motions, your Honor.
The Court: All right. Mr. Wilson is here.
Mr. La Bret: We have two motions. One, we want to endorse Mary Jarrett. This is a witness we did not know about.
The Court: What is she going to testify?
Mr. La Bret: She will testify that the panties taken from the victim contained sperm.
The Court: All right.
Mr. Vatsis: Who is she?
Mr. La Bret: She is the chemist.
Mr. Vatsis: From where?
Mr. La Bret: Here.
The Court: Detroit Police Department hematologist. She is a specialist. She has had courses with the FBI. She has taught courses at Scotland Yard. She is a well qualified expert.
Mr. Vatsis: Judge, I think it’s elementary that that is not allowable at this late stage of the proceedings, specially considering the trial has already commenced.
This matter has been pending since approximately October 12th or 13th.
There has been no indication of any endorsement of this witness.
The reason we would be prejudiced, your Honor, if that witness was endorsed right now would be for the simple reason that we would have had a right to have discovery proceedings and have some investigation as to what this witness would have testified to had we known previous to today.
This puts us in a very, very awkward position to have this witness endorsed without us having had the right to ascertain what her testimony would have been and how to prepare an adequate defense to her testimony.
It’s very prejudicial at this late stage.
The Court: No. Now, you got an order of discovery.
Mr. Vatsis: That’s right, but that did not contain any matters dealing with the panties or stains on the panties.
The Court: Do you want to read the order?
Mr. Vatsis: Your Honor, I have not been shown any such report.
Mr La Bret: You have never asked for them.
Mr. Vatsis: That is not true, your Honor. I talked to Mr. La Bret on several occasions.
Mr. La Bret: I said to go over and get them.
Mr. Vatsis: I asked him to produce any evidence to be used in this case.
He did not produce any reports this witness would testify to.
That would be in direct violation of the Court.
The Court: I gave you authority on November 20th to go look at these documents.
November 20th, December 20th, January. You have had 60 days to go over and do it.
Mr. Vatsis: I went over with Mrs. Martini. She did not show me any such reports. That was approximately two or three weeks ago. She showed me no such reports.
I would be prejudiced at this late stage of the game to have that witness endorsed.
I also talked with Mr. La Bret in your office three or four weeks ago, and he showed me no such reports.
1 would be totally prejudiced, and that would be totally prejudicial to my client.
This is totally a surprise.
Their case has been totally unprepared, your Honor. They have been totally derelict and negligent in preparation of their case.
They have had four or five adjournments.
They have had more than adequate time to endorse any witnesses in this case.
The Court: I will grant the prosecution’s motion to endorse the witness.
Unpublished per curiam, (Docket No. 20284, March 27, 1975) V. J. Brennan, P. J., and D. E. Holbrook, Jr., J. (O’Hara, J., concurring in result).
MCLA 769.26; MSA 28.1096 provides:
"No judgment or verdict shall be set aside or reversed or a new trial be granted by any court of this state in any criminal case, on the ground of misdirection of the jury, or the improper admission or rejection of evidence, or for error as to any matter of pleading or procedure, unless in the opinion of the court, after an examination of the entire cause, it shall affirmatively appear that the error complained of has resulted in a miscarriage of justice.”
US Const, Am XIV, § 1 provides in part:
"No State shall * * * deprive any person of life, liberty, or property, without due process of law.”
Const 1963, art 1, § 17 provides in part:
"No person shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty or property, without due process of law.” | [
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The motion by defendant-appellant for reconsideration of this Court’s order of February 25, 1976 (396 Mich 832) is considered and the same is denied because it does not appear that said order was entered erroneously.
Case below, Court of Appeals No. 22402, per curiam opinion of August 29, 1975.
Levin, J., would grant reconsideration and on reconsideration grant leave to appeal. | [
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Per Curiam.
Plaintiff instituted suit in district court to recover possession of premises because of unpaid rent owing from defendant under the provisions of the parties’ service station lease. On defendant’s motion the matter was removed to Ingham Circuit Court where the trial judge first denied plaintiff’s motion for summary judgment, then accepted parol testimony from defendant on the intent of the parties, and finally entered a judgment in favor of defendant lessee. The Court of Appeals reversed on the basis that the lease agreement was complete and unambiguous, and therefore precluded the admission of parol evidence. 66 Mich App 90; 238 NW2d 416 (1975).
At issue is defendant’s obligation to pay a fixed $50 per month rental in addition to 1-1/2 cents on each gallon of gasoline dispensed from or delivered to the station. The lease agreement provided in pertinent part:
"RENTAL
"Fixed $50.00 per calendar month
"Motor Fuel Gallonage 1-1/2 cents a gallon (one & one-half cents)
"Minimum Rent $3,738.00 per annum
"Lessee shall pay gallonage rental on motor fuel delivered to or at Union’s option dispensed from the Station, and computed during each lease year. Gallonage rental shall be due and payable at the time of each settlement or delivery of motor fuel. Fixed rental shall be paid in advance on or before the first day of each month.
"Lessee shall pay any deficiency in the minimum rental within 30 days following the monthly/annual applicable period. Rental shall be prorated for any fractional period of a calendar month or lease year.”
The suit arose because defendant refused to pay the $50 per month, paying instead only the gallonage rate. He claimed that as long as his payments exceeded the $3,738 per year minimum he was under no obligation to pay the fixed rental.
The trial court and the Court of Appeals based their decisions on the issue of ambiguity. The real question is whether the proffered parol evidence is inconsistent with the written language. If there is no inconsistency, the parol evidence is admissible. See Goodwin, Inc v Orson E Coe Pontiac, Inc, 392 Mich 195; 220 NW2d 664 (1974).
Defendant’s interpretation that the fee of 1-1/2 cents per gallon of motor fuel was applicable against the fixed $50 per month rent as well as against the minimum annual rent of $3,738, is not inconsistent with the written language and is therefore admissible parol evidence.
In lieu of leave to appeal, pursuant to GCR 1963, 853.2(4), we vacate the judgment of the Court of Appeals and remand to that Court for consideration of other issues raised by plaintiff on appeal, but not decided.
Kavanagh, C. J., and Williams, Levin, Coleman, Fitzgerald, Lindemer, and Ryan, JJ., concurred.
Restatement, 2d, Contracts, Tentative Draft No. 6 (1971):
"§239. EFFECT OF INTEGRATED AGREEMENT ON PRIOR AGREEMENTS (PAROL EVIDENCE RULE).
"(1) A binding integrated agreement discharges prior agreements to the extent that it is inconsisten t with them.
"Comment: * * *
"b. Inconsistent terms. Whether a binding agreement is completely integrated or partially integrated, it supersedes inconsistent terms of prior agreements. To apply this rule, the court must make preliminary determinations that there is an integrated agreement and that it is inconsistent with the term in question.” (Emphasis added.) | [
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Requests by the Legislature and the Governor for an advisory opinion on the constitutionality of 1976 PA 240 are considered. The request by the Legislature contained in House Concurrent Resolution No. 691 and the letter request by the Governor dated August 24, 1976 are granted.
The questions to be considered are:
(1) May the state lease property from the State Building Authority under the provisions of 1964 PA 183, as amended by 1976 PA 240, and validly contract therein to pay the true rental of the leased premises at fixed times over a period of years in light of §§ 12 and 15 of art 9 of the Michigan Constitution of 1963?
(2) Assuming an affirmative answer in the preceding question, are future Legislatures contractually obligated to appropriate amounts each year sufficient to pay periodic rentals to the Building Authority for true rent falling due in future years?
(3) Would the bonds to be issued by the Building Authority, pursuant to 1964 PA 183, as amended by Act 1976 PA 240 and repaid from proceeds derived from true rental payments of the state pursuant to lease, constitute a state indebtedness within the meaning of §§ 12 and 15 of art 9 of the Michigan Constitution of 1963?
It is further ordered that the Attorney General of the state is requested to brief both sides of the questions, as expeditiously as possible, one brief and argument to be directed to the constitutionality of the act and one brief and argument to be presented as to why the act should be held unconstitutional. The Clerk is directed to place this matter on the first available session calendar for argument and submission.
Persons or groups interested in the determination of these questions may apply to the Clerk of the Supreme Court for permission to file briefs amicus curiae.
Ryan, J., not participating. | [
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Per Curiam.
The defendant was tried by a jury and found guilty of armed robbery. MCLA 750.529; MSA 28.797. He argues that the trial judge erred in admitting into evidence the testimony of three prosecution witnesses describing their pretrial lineup identification of the defendant and the testimony of a police officer concerning identification. He questions the continuing validity of People v Londe, 230 Mich 484, 487; 203 NW 93 (1925), where we said:
"It was proper for the witnesses who had seen the men at the time of the robbery to testify that they later identified the defendant as one of them. And it was equally proper for the officer to testify under what circumstances the identification was made.”
The record discloses that no objection was made to the testimony that the defendant now claims was erroneously admitted into evidence. No request was made to instruct the jury to disregard this testimony. The question whether the admission of this testimony was erroneous has not been properly preserved for appellate review.
"Ordinarily where no timely objection was made to the introduction of such testimony and no request to charge was made, this Court [will] not examine the points relied upon for reversal, and except under unusual circumstances we have no disposition to relax this rule.” People v Dorrikas, 354 Mich 303, 316; 92 NW2d 305 (1958).
The defendant’s conviction is affirmed.
Kavanagh, C. J., and Williams, Levin, Coleman, Fitzgerald, Lindemer, and Ryan, JJ., concurred.
See, however, People v Poe, 388 Mich 611, 618; 202 NW2d 320 (1972), where we limited a police officer’s testimony to " 'what took place’ and under 'what circumstances the identification was made’ and not, as here, the nature or quality of the identification.” | [
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The motion by defendant-appellant for reconsideration of this Court’s order of December 23, 1975 (395 Mich 823) is considered and the same is denied because it does not appear that said order was entered erroneously.
Case below, Court of Appeals No. 26383, order of November 19, 1975. | [
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Request for appointment of counsel denied.
Case below, Court of Appeals No. 19932. | [
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The delayed application for leave to appeal is considered and, it appearing to this Court that the cases of People v Sheline (Docket No. 57588) and People v D’Angelo (Docket No. 57807) are presently pending on appeal before this Court and that the decision in those cases may be decisive of issues raised in the present application for leave to appeal, it is ordered that the present application be held in abeyance pending decision in those cases.
Ryan, J., not participating | [
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The motion to supplement appellant’s appendix is considered. The supplementary material has been used by the Court in connection with appellee’s motion for bond. Facsimile copies of the supplementary material will be considered by the Court in connection with the appeal on the merits until such time as appellant can prepare the supplement in printed form to comply with GCR 1963, 855. The motion by appellee for bond pending appeal is considered and, pursuant to GCR 853.2(4), this Court orders that the case, on the issue of bond only, be remanded to the Monroe County Circuit Court for determination of the issue of bond in light of the present status of the case on appeal. | [
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On order of the Court, notice is hereby given that the Supreme Court proposes to amend 110 of the Probate Court Rules to read as follows (new matter in italics):
PC Rule 110. Papers and Pleadings: Form and Filing.
.1 (Unchanged.)
.2 Authentication by Verification or Declaration Under Penalties of Perjury.
(a) When Used. Petitions to the court, inventories, schedules, accountings, proofs of claim and proofs of service shall must be duly authenticated by verification under oath by the person making the same, or, in the alternative, shall must contain a statement immediately above the date and signature of the maker thereof: "I declare under the penalties of perjury that this_has been examined by me and that the contents thereof are true to the best of my information, knowledge and belief.”
(b) Contempt. In-addition to ouch penalties as may bo imposed by statute, any person who io found to have falsely executed an instru mont contnining-n-dcelnrntion under penalty- of perjury, may bo found quilty of eontompt-of court. A person who knowingly makes a false declaration under subrule 110.2(a) is in contempt of court.
A copy of this order shall be given to the Secretary of the State Bar of Michigan and to the Court Administrator, in order that they may make the notifications specified in GCR 1963, 933. Any comments concerning this proposed amendment should be forwarded to the Clerk of the Michigan Supreme Court within 30 days from the publication of this order in the State Bar Journal. | [
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Coleman, J.
Plaintiffs husband, an employee of General Motors, died on February 4, 1969. A claim for workmen’s compensation was filed September 16, 1970 and dismissed for no progress on July 26, 1971. A second claim was filed August 26, 1971 and dismissed for no progress December 11, 1972.
Plaintiff filed a wrongful death action in circuit court on February 4, 1972. She claimed that her husband was a GM employee and had received certain injuries during the course of his employment. GM treated the injuries and the death was attributed to the improper administration of medicine and drugs "by non-physician personnel of General Motors Corporation”. This was said to violate General Motors’ statutorily imposed warranty that employees "would receive 'reasonable medical, surgical and hospital services’ ”.
The circuit court granted a motion for summary judgment saying that "Plaintiffs exclusive right is the Workmen’s Compensation Act”. In reversing, the Court of Appeals held
"that the circuit court does have subject matter jurisdiction, concurrent with the workmen’s compensation bureau, to determine whether the exclusive remedy provision, MCLA 418.131; MSA 17.237(131), forces Szydlowski to return to that forum to seek relief. We hold further that Szydlowski’s complaint has stated a cause of action sufficient to avoid summary judgment under GCR 1963, 117.2(1).” 59 Mich App 180, 186; 229 NW2d 365 (1975).
This is a clearly erroneous conclusion. In Solakis v Roberts, 395 Mich 13, 20; 233 NW2d 1 (1975), we said that when "an employee’s injury is within the scope of the act, workmen’s compensation benefits are the exclusive remedy against the employer. MCLA 418.131; MSA 17.237(131).” MCLA 418.841; MSA 17.237(841) provides that "all questions arising under this act shall be determined by the bureau”.
The circuit court complaint said plaintiffs husband was a GM employee who received injuries in the course of his employment. Defendant was said to have a statutory duty to provide medical service. This claim is based upon a section of the compensation act. MCLA 418.315; MSA 17.237(315). The complaint concerned matters for the Workmen’s Compensation Bureau, not for the circuit court.
In Herman v Theis, 10 Mich App 684, 688-689; 160 NW2d 365 (1968), the Court of Appeals made this analysis:
"Acceptance of plaintiffs argument that the workmen’s compensation act does not apply because he does not fall under the conditions of recovery, with the result that he should be permitted to go to court on a common-law negligence theory, is contrary to the intent of the legislature in creating the act, i.e., that compensation be provided therein to employees for injury arising out of and in the course of employment. See Andrejwski v Wolverine Coal Co, 182 Mich 298 [148 NW 684] (1914); Johns v Wisconsin Land & Lumber Co, 268 Mich 675 [256 NW 592] (1934). Issues concerning injuries and whether they grew 'out of and in the course of the employment relationship’ are to be exclusively within the purview of the workmen’s compensation department, and the merits of such a claim are to be first evaluated by the department.”
The panel "found that a plaintiff’s remedy against an employer based on an injury allegedly arising out of an employment relationship properly belongs within the workmen’s compensation department for initial determination as to jurisdiction and liability”. Also see Federoff v Ewing, 29 Mich App 1; 185 NW2d 79 (1970), and St Paul Fire & Marine Insurance Co v Littky, 60 Mich App 375; 230 NW2d 440 (1975).
In this case the Court of Appeals panel said "the continuing vitality of [Theis] is open to serious question”. We find that Theis accurately states the law and reminds us that the procedures for workmen’s compensation cases have been statutorily established. It properly cautions us against a shortcut or circumvention of those procedures.
The Court of Appeals is reversed and the trial court is affirmed.
Kavanagh, C. J., and Fitzgerald, Lindemer, and Ryan, JJ., concurred with Coleman, J. | [
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Plaintiff-appellant’s motions for an order allowing costs, expenses, and attor ney’s fees having been ordered held in abeyance pending final disposition of the instant appeal, and the opinion in said appeal having been issued on July 8, 1976, 397 Mich 54, now, therefore, the motions for costs, expenses, and attorney’s fees are denied.
Jerry L. Sumpter for plaintiff-appellant. Boyce, Yahne & Wenzel for defendant-appellee.
Case below, Court of Appeals No. 18077, memorandum opinion of July 24, 1974. | [
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McDonald, J.
This action is brought to recover damages for injuries received in a collision between an automobile and a horse-drawn vehicle in which the plaintiff was riding. At the time of the accident the plaintiff was 10 years of age. At about 9:30 o’clock in the evening of August 5,1920, he was riding with his grandmother in a light wagon drawn by a pony going westerly on Dixon avenue in the city of Charlevoix. The defendant Richard Loeb, driving a five passenger Buick touring car, came along from the rear and ran into the wagon. The plaintiff was thrown out and his injuries are alleged to be as follows: Fracture of the collar bone, deformity resulting therefrom, pain and suffering, shock to the nervous system producing diseases of the head and throat, and impairment of his mental faculties. It is the plaintiff’s claim that the accident was caused by the negligence of Richard Loeb in not having his car under control and in not having it lighted so that he could see vehicles ahead of him. The defendant Richard Loeb is the son of the other defendants. They claim that neither of them owned or had any interest in the automobile, that Richard Loeb had borrowed it from his brother, and at the time of the accident was using it for his own pleasure and not for their benefit. At the close of the proofs counsel for the defendants moved for a directed verdict in favor of the two defendants. The motion was denied. The plaintiff received a verdict for $2,000. The defendants bring error.
The record presents the following questions:
Did the court err in excluding evidence offered by the defendants to show full accord and satisfaction? On the trial the defendants offered to show that after the accident and before the suit was begun they paid to Ruth O’Brien, the mother of the plaintiff, a sum of money in full settlement of his claim for damages arising from the accident, and that they received a receipt therefor signed by the mother in behalf of the plaintiff, and that neither the plaintiff nor anyone In his behalf had paid or tendered back the money which they had paid for his use and benefit. The court refused to receive any evidence relating to the alleged settlement. In support of their contention as to the admissibility of such evidence counsel cite many decisions of this court relative to contracts of infants. The cases are not applicable. Here there was no contract by the infant. The transaction was carried on entirely with the mother, who was without authority to bind him in the release of his cause of action against the defendants.
“An infant is not bound by a contract made for him or in his name by another person purporting to act for him, unless such person has been duly appointed his guardian or next friend and authorized by the court to act and bind him.” 22 Cyc. p. 584.
The court did not err in refusing to receive the testimony offered.
The second question relied on for a reversal of the judgment is the refusal of the court to> direct a verdict as to the two defendants, Albert Loeb and Anna Loeb, on the ground that there was no evidence that they were the owners of the car at the time of the accident. We think the court erred in denying this motion. The plaintiff offered no direct evidence as to the ownership of the car. He relied solely on the presumption arising from the circumstances under which the car was used in the Loeb family. The defendants presented positive evidence of ownership in Ernest Loeb, who was not a party to the suit.
“Presumptions * * * lose all force and application when specific facts are shown” (citing 1 Elliott on Evidence, § 91). Gillett v. Traction Co., 205 Mich. 410.
The court erred in failing to instruct the jury that the plaintiff was limited in his recovery to the present worth of his future damages. Having permitted the jury to consider the plaintiff’s expectancy of life as shown by the mortuary tables in determining future damages, the court should have limited his recovery to the present worth of such damages with special instructions as to the method of ascertaining them. Denman v. Johnston, 85 Mich. 387.
The judgment is reversed, and a new trial granted. The defendants will have costs.
Clark, C. J., and Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Fellows, J.
Defendant Charles S. Weaver perfected a so-called “common-law trust,” to hold certain oil leases and develop supposed oil properties. It was organized in Chicago, Illinois. It is intimated that such trusts fell under the ban in Illinois and defendant came to Muskegon, where he had formerly resided, to sell shares or units in it. Possibly it was then supposed that such transactions were not inhibited by the so-called “blue sky law” (3 Comp. Laws 1915, § 11945 et seq.) although in this the parties were mistaken (People v. Clum, 213 Mich. 651 [15 A. L. R. 253]). No relief is asked, however, in this case by reason of the violation of the blue sky law. Quite a number of shares or units were disposed’ of at Muskegon and some of the substantial citizens there invested in them. Later it was claimed by Weaver that considerable more money would be needed to develop the properties and it was understood that a corporation should be organized under the laws of this State to succeed to and take over the properties held by the trust. Plaintiffs signed subscriptions for additional stock in the corporation beyond the amount they would receive on dissolution of the trust and gave their notes in varying amounts. It is their claim that such subscriptions and notes were procured by false representations by defendant and his agents and they file this bill to cancel their subscriptions and notes. Other parties intervened and upon a hearing the trial judge found the facts as claimed by the plaintiffs and entered a decree in their favor, to some of the details of which we shall presently refer.
We agree with the conclusion of the trial judge that plaintiffs’ signatures were procured by fraud. Defendant brought to Muskegon two sales agents from Chicago who actively assisted him in making sales of stock in the proposed corporation. They, as well as defendant, made statements of material facts which were relied upon by plaintiffs which the proofs establish were untrue. We are convinced that plaintiffs relied on these statements, most of which were made by defendant himself or in his presence. It was represented to plaintiffs that the properties held by the trust and which were to be turned into the corporation were beyond the speculative period and that it was a pure matter of business to develop them; it was represented that but a short distance from the line of the so-called Jennings property held under one of the leases was located the Hammond well and that it was producing 1,000 barrels a day and Mr. Weaver composed and had printed in two oil papers published in Texas an article commenting on that production of the Hammond well and conveying the impression to the ordinary reader that á well had been brought in on the Jennings property equally as good as the Hammond well or better. Copies of this paper were sent to the plaintiffs and others in Muskegon. As a matter of fact the Hammond well was not a large producer and no well had been brought in on the Jennings property and the property was not beyond the speculative period. The field where the Jennings property was located was not of the productive capacity represented by defendant and many representations appearing in the literature circulated were untrue. We are also persuaded that defendant misrepresented to or concealed from plaintiffs the number of shares he held in the trust which would be exchanged for stock in the corporation and withheld from them for some time the true financial condition of the trust.
There were also statements made having reference to the future which may be termed promissory, such as the statement of one of the sales agents that he intended to put a large amount of money into the enterprise, and the statement of defendant that plaintiffs would not be called upon to pay their notes as he would simply use them as collateral to' secure the funds necessary for drilling and the dividends before they were due would more than pay them. While these were promissory in character they could not have been made in good faith and were but a part of the scheme to defraud. Naked promises are not misrepresentations of existing facts and of themselves do not constitute fraud. Boston Piano & Music Co. v. Pontiac Clothing Co., 199 Mich. 141. But where a promise is made in bad faith with no present intent to perform it, and it dovetails into and forms a part of the scheme to defraud, it may be considered by the court. McDonald v. Smith, 139 Mich. 211; Barker v. Finley, 200 Mich. 166; Kefuss v. Whitley, 220 Mich. 67.
Plaintiffs were business men of Muskegon. Possibly they ought not to have been caught by this scheme. But the industry of buying gold bricks is not confined to the agrarian population. It was represented to them that the properties had reached that stage where it was no longer a speculative proposition but a pure business deal. This court has frequently held that it does not lie with the perpetrator of a fraud to say that his victim was too credulous, and reposed too much confidence in those with whom he dealt and who assumed to have superior knowledge of the subject upon which they spoke. Eaton v. Winnie, 20 Mich. 156 (4 Am. Rep. 377); John Schweyer & Co. v. Mellon, 196 Mich. 590; Smith v. Werkheiser, 152 Mich. 177 (15 L. R. A. [N. S.] 1092, 125 Am. St. Rep. 406); Miller v. Savings Bank, 227 Mich. 316; Smith v. McDonald, 139 Mich. 225.
Some of the plaintiffs permitted themselves to be held out to prospective purchasers of stock as directors in the new company and some of them wrote letters commending the enterprise and these letters were also used by the salesmen. This did not work an estoppel in favor of defendants, and we can not upon this record determine whether it did as to any of the purchasers of stock, or whether the equities of plaintiffs' or any of them should be postponed to those of others who purchased stock. This leads us to the form of the decree to which.we have before adverted.
The decree provided that the subscriptions and notes given by the plaintiffs and those who had intervened should be set aside and held for naught and that all such subscriptions and notes and all moneys and other assets arising from stock subscriptions be surrendered within twenty days and in default that a receiver be appointed and jurisdiction was retained by the court to make such further decree as might be necessary. It is quite probable that the trial judge had in mind the same thing we have in mind, but we think it should be made more definite. The subscriptions and notes of plaintiffs and interveners should be canceled as far as defendants’ claim is concerned. Whether they should be canceled as to other subscribers who have paid cash, we can not determine on this record. All subscribers should be given notice and be heard before the assets are distributed or the notes and subscriptions canceled. If the trial judge deems it proper to appoint a receiver he may do so.
The decree will be modified as herein indicated and the case remanded to the trial court for such proceedings as may be deemed necessary and which are not inconsistent with this opinion. As this modification is not in the interest of defendants, plaintiffs will have costs of this court.
Clark, C. J., and McDonald, Bird, Sharpe, Moore , Steere, and Wiest, JJ., concurred. | [
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Sharps, J.
Charles A. Chapin, a resident of Cook county, Illinois, died in Chicago on October 22, 1913, leaving a last will and testament. In the second paragraph thereof he devised and bequeathed the residue of his estate to his wife, Emily C. Chapin, and his seven children, naming them, as trustees. The trustees are given—
“the same power of investment, management and sale of the said trust estate, and of every part thereof, which they would possess if they were the absolute owners thereof; subject only to the condition that the said property or the proceeds thereof shall be held upon the trusts and for the beneficiaries herein specified and provided.”
The purpose of the trust is thus stated:
“The foregoing trust is created by me for the purpose of providing for the comfortable maintenance of the beneficiaries under the said trust, and it is my will, and I direct, that the said beneficiaries during the continuance of said trust shall have no power to anticipate, assign, alien or otherwise dispose of any interest which they may have, either in the income or principal of said trust estate while the same remains in the hands of the trustees under this will, and that the same shall not be subject to be taken from said beneficiaries by their creditors or by process of law.”
It is also provided:
“The said trust shall terminate upon the death of the last survivor of my said wife and children, and upon the termination of said trust the trust estate then in the hands of said trustees shall go to and vest in the then surviving lawful issue of my said children per stirpes
The testator died seized of real estate in the State of Illinois and also in the counties of Berrien, Osceola and Dickinson in this State. The will was probated in Cook county, and by ancillary proceedings in the probate court for Berrien county on December 8, 1913. His wife and two of his sons were named as executors, and they duly qualified and acted as such. An inventory was filed which included the real estate and some personalty in Michigan. Subsequent proceedings were had in conformity with .the statute and the final account allowed. Homer C. Chapin, one of the executors, then filed a petition, reciting the proceedings had and taken, and asked that the court grant unto the wife and children, all of whom were then living,—
“letters of trusteeship, authorizing and empowering them to manage and control the property of said estate situate in said State of Michigan in trust under the conditions and trusts imposed in said last will and testament of said Charles A. Chapin, deceased, upon the execution of a proper bond to the judge of said probate court, and his successors, in such form and amount as shall be ordered and approved by said court.”
On January 15, 1917, an order was entered by the probate court pursuant to said petition, and on the same day letters of trusteeship were issued to the persons named as trastees in the will. In these letters, after reciting their appointment under the will, they were given—
“full power and authority to manage and faithfully dispose of according to law and the will of said Charles A. Chapin, deceased, all the real and personal estate belonging to you as trustees,” etc.
Acting under these letters and the power conferred by the will, the trustees took possession and control of the real and personal property of the testator. No question has ever been raised as to the validity of the clause creating the trust until just prior to the filing of the bill of complaint herein on February 2, 1924. In it the court is asked to construe the will and determine whether its provisions creating the trust violate sections 11532 and 11533 of the Compiled Laws of 1915 because the trust period extends beyond the continuance of two lives in being at the creation of the trust estate.
' We are met at the outset by the claim of the defendants, stated as follows:
“The decree of the trial court should be reversed because the whole case is collateral attack upon the judgment of the probate court directing the issuance of letters of trusteeship to the trustees of the Chapin trust.”
The Constitution provides for probate courts. Their jurisdiction, powers and duties are to be prescribed by law. By section 13764 et seq., 3 Comp. Laws 1915 (chap. 51), jurisdiction is conferred on judges of probate:
“1. Of all matters relating to the settlement of the estates of all deceased persons, whether testate or intestate,” * * *
leaving any estate within such county to be administered.
“2. Of trusts and trustees in the execution of wills and administration of estates of deceased persons.”
Other provisions not here material follow. A proviso to this section reads:
“Provided, hovjever, That the jurisdiction conferred by this section shall not be construed to deprive the circuit court in chancery in the proper county of concurrent jurisdiction as originally exercised over the same matter.”
This proviso does not assume to give the chancery court the power to set aside judgments of the probate court. Provision is made in the sections which follow for appeals by which such judgments may be reviewed in the circuit court. Section 13773 et seq. provide for the probate of wills. Section 13787 provides that, after due administration by the executor or administrator, the estate—
“shall be disposed of according to such will, so far as such will may operate upon it; and the residue shall be disposed of as is provided by law,” etc.
Subsequent sections (chap. 52) contain provisions announcing rules of law to be followed by the judge of probate in the administration of the estate. These include provisions for unborn children, children unintentionally omitted from the will, the issues of deceased legatees, etc. There is also provision defining the rights of the widow in the event that she elects to take otherwise than under the will.
The succeeding chapter (53) contains provisions for the administration of estates of intestates. The chapters which follow prescribe particularly the duties of the executor or administrator in collecting the assets of the estate, payment of debts, etc.
Chapter 57 is entitled “Of the Partition and Distribution of Estates.” It contains specific provision for the distribution of personalty not disposed of by will. The third and fourth sections (3 Comp. Laws 1915, §§ 13915, 13916) read as follows:
“Section 3. After the payment of the debts, funeral charges and expenses of administration, and after the allowances made for the expense of the maintenance of the family of the deceased and for the support of the children under ten years of age, and after the assignment to the widow of her share in the personal estate, or when sufficient effects shall be reserved in the hands of the executor or administrator for the above purposes, the probate court shall, by a decree for that purpose, assign the residue of the estate, if any, to such persons as are by law entitled to the same, subject, however, to the widow’s right of dower, if there be a widow of the deceased entitled to dower, and her dower shall not have been assigned and set off to her.
“Sec. 4. In such decree the court shall name the persons and the proportions or parts to which each shall be entitled; and such persons shall have the right to demand and recover their respective shares from the executor or administrator, or any other person having the same or any part thereof, after the expiration of sixty days from the date of such decree, unless an appeal shall have been taken therefrom, in which case they shall have the same right immediately upon the final termination of such appeal.”
The sections following provide for partition of the real estate. The terms of the partition decree are made conclusive on all the heirs and devisees. Section 18 (§ 13930) provides:
“Any person aggrieved by any order, decree or denial, of a probate court, in pursuance of the provisions of this chapter, may appeal therefrom as provided in other cases.”
We have referred to these provisions at length to show the extent of the power conferred on the probate court in the administration of estates, whether of testates or intestates. Aside from those contained in sections 13787 and 13915, providing for the assignment of the residue, there can be no doubt that the orders made have the force and effect of judgments in courts of record and are res adjudicaba of the matters therein disposed of. Decisions of this court so holding were cited and quoted from in Calhoun v. Cracknell, 202 Mich. 430.
As appears from the statement of facts, the executors fully administered the estate, filed their final account, had it allowed, and petitioned the court to grant unto the persons named in the will letters of trusteeship, and such letters were issued pursuant to an order made therefor. The trustees had no power or authority to act until such order was made. 3 Comp. Laws 1915, §§ 14054-14056; Gibney v. Allen, 156 Mich. 301. While these sections contain provisions requiring trustees to give bonds, make and return inventory, render accounts, etc., the authority in the probate court to make the order rests on the provision in section 13787.
The statute (§ 13850) gives the executor or administrator the right to the possession of the real estate—
“until the estate shall have been settled, or until delivered over by order of the probate court to the heirs or devisees.”
Under a proviso thereto the heirs or devisees may make application to the probate court for an order that possession be delivered to them and, if it appear—
“that there are no debts or liabilities outstanding and unpaid against said estate, or that the personal estate of said deceased is amply sufficient for the payment of all claims or liabilities,”
such an order will be made.
Section 13799 provides that, if possession be taken by devisees and legatees by consent of the executor, the holding by them is subject to liability to the executor to make contribution for any deficiency in the personalty necessary for the' payment of the debts or to make up the share of a child bom after the making of the will, or of a child or the issue of a child omitted in the will.
These provisions have been construed in many cases. They are collected and discussed in Howes v. Barney, 199 Mich. 569, and Sylvester v. Button, 207 Mich. 24. The holding has been that where an heir or devisee enters into possession with the consent of the executor under section 13799 his possession may not be disturbed unless it appears that the real estate must be used for the payment of debts. But he is not entitled to such possession as a matter of right until the estate is fully administered and an order made assigning it to him. Title, of course, passes by virtue of the will. The court ■ must, however, construe the will to determine to whom the assignment shall be made. If the devise be plainly expressed, and there are no applicable statutes or qualifying provisions, there is no room for construction as this word is ordinarily understood, but if his right be questioned it must be determined then and there by the court. Upon it rests the duty to. deliberate, decide and declare by its order the legal effect of the will upon the property of the testator then in the hands of the executor as an officer of the court for distribution.
Many of the orders made by the court may be said to be merely formal orders. If no objection be made, the administrator named in the petition is appointed. The legal right of another to such appointment is not considered. And yet there can be no question but that such an order is not subject to collateral attack. There are no parties litigant as in the ordinary proceedings in the circuit court. The proceeding is one in rem to administer the estate of one no longer able to look after it, and distribute it to the persons entitled to it under the provisions of the statute or the will.
The trial court in its opinion says:
“No one seriously contends that the probate court in issuing letters of trusteeship intended to pass upon this question. The order was a formal order issued as such orders are usually issued by the probate court, where there is no contest. Surely, it was never in the mind of the probate judge, who made the order, that he was passing upon the validity of this will,”
and he suggests that it would be illogical to hold that by accepting the trust the trustees barred themselves from applying to a court of chancery for a construction of the will. It may be noted that the trustees are not here seeking the aid of the court to advise them as to the manner in which they shall execute the trust. They are here asking the court to determine whether or not their appointment was made in violation of the statute; in other words, whether they have any right to act at all. This the probate court did determine as to both the realty and personalty when he made the order followed by the letters of trusteeship committing such property to them under the trust provision of the will.
We have not overlooked the decision in Wooden v. Kerr, 91 Mich. 188, wherein it was said that “No action of any court was necessary to complete this trust in them (the trustees),” nor the following from Michigan Home Missionary Society v. Corning, 164 Mich. 395:
“There was no occasion to construe the will, and the probate court was not asked to and did not construe it. The trustees were not appointed by the court, but by the will.”
The decision in the Wooden Case rested on the fact that, without appointment or the issue of letters, the person named as trustee had assumed to act as such, and it was held that he was “estopped to assert that he was an executor merely, and not a trustee.” The Corning Case involved a setting aside of a particular security by the trustees as a compliance with a specific bequest ordered to be invested. The claim was made that the court by an order had in effect approved of such action. In Gibney v. Allen, supra, decided much later than the Wooden Case, it was held that the failure of a person named as trustee to qualify as such, even after appointment by the probate judge, “amounts to a disclaimer,” and that any acts done by him, apparently acting as trustee, are in law his acts as an executor. See, also, Wessborg v. Merrill, 195 Mich. 556 (L. R. A. 1918E, 1074). In Re Erdman’s Estate, 179 Mich. 567, the power of the probate court to construe the trust provision and to appoint a trustee not named in the will as to specific property was upheld. We are impressed that the language quoted in both those cases was obiter and used without due consideration as to its effect upon facts such as we have before us.
The executors after their appointment and qualification could not be lawfully discharged until they had turned over the property in their hands as shown by their final account to the persons lawfully entitled to it. The duty does not rest upon them to determine such persons. It rests upon the court. To do so the judge of probate must construe the will, that is, determine from its terms to whom the executors should make delivery. Having done so by his order committing the management, control and disposal of the trust property to the trustees, we are of the opinion that their right thereto is not subject to collateral attack. Dudley v. Gates, 124 Mich. 440; Riebow v. Ensch, 220 Mich. 450; and Calhoun v. Cracknell, supra, may be read with profit. See, also, the authorities cited and quoted from in Thompson v. Thompson, post, 526, handed down herewith.
The decree appealed from is reversed and set aside, and one may be entered here dismissing the bill of complaint, with costs to appellants.
Clark, C. J., and McDonald, Bird, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Moore, J.
We quote from the record as follows:
“Counts one and two of plaintiffs’ declaration counted against two defendants other than Daniel F. Comeail, which defendants had been joined at the time of commencement of suit, and under order of the court plaintiffs had elected to proceed to trial in this action against Daniel F. Comeail alone, and for that reason no proofs were offered under counts one and two of said amended declaration and they are not material for the purpose of this appeal and writ of error.”
There were three other counts in the declaration which are quoted in full in the record, and all of them are directed against defendant Corneail.
The important part of the order mentioned by counsel reads as follows:
“The court is of the opinion that there are two separate actions set forth in the declaration; therefore, upon the court’s own motion it is hereby ordered that separate trials be had in this cause as to the first two counts in the declaration against Moloney and Nash, and as to the two last counts, against Daniel F. Corneail.”
After this order was made the trial proceeded against the defendant Comeail, and the case was submitted to a jury composed of five women and seven men. They deliberated until 11 o’clock at night, when they were allowed to separate until the next morning, when they renewed their deliberations, and later returned a verdict in favor of defendant. The case is brought into this court by writ of error.
Counsel claim, we quote from the brief:
“The questions * * * are:
“First. Whether or not the trial court should have compelled the plaintiffs and appellants to proceed to trial against thé defendant Daniel F. Comeail, as to part only of their causes of action against him under the circumstances of this case;
“Second. Whether or not the honorable trial judge erred in permitting the jury to retire from their deliberation at night to go to their respective homes, to return the following morning and resume their deliberation in regard thereto.”
It is claimed by appellants’ counsel that plaintiffs were not allowed to litigate the claim stated in count three, and that this was error. We have already quoted the order of the court and what is said in the record about the election of the plaintiffs to proceed. It does not appear in either of these quotations that anything was said about count three.
Counsel for the defendants insist:
“The record does not show as claimed by appellants, that the court compelled the plaintiffs to proceed to trial against Daniel F. Corneail upon count three alone, or upon counts four and five and eliminating therefrom count three.
“The question raised by the first assignment of error not appearing on the record can not be considered on this appeal.”
None of the testimony offered upon the trial appears in the record. An examination of the record sustains the claim of counsel for appellee that it does not appear therein that count three was eliminated.
As to the second assignment of error the record does not show that any objection was made to the order of the court allowing the jury to separate until after the verdict. However we do not deem this as material as we think the instant case is controlled in this particular by what is said in Vercruysse v. Ulaga, ante, 49, in which an opinion was handed down at this term of court.
We find no reversible error.
Judgment is affirmed, with costs to the appellee.
Clark, C. J., and McDonald, Bird, Sharpe, Steers, Fellows, and Wiest, JJ., concurred. | [
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Clark, C. J.
James A. Patton received a mutual benefit certificate from plaintiff society, in which his then wife, Phebe Patton, was named as beneficiary. On May 9, 1908, while a suit for divorce was pending, Mr. Patton effected a change of beneficiary in accordance with the by-laws of the society, and a new certificate was issued of that date, payable to “legal heirs related to said member in the relationship of heirs.” A decree of divorce was granted to Mrs. Patton on her cross-bill on July 28, 1908. Mr. Patton died on April 22,1923. The fund was claimed by Mrs. Patton and by Mr. Patton’s sisters and others as his heirs at law. Plaintiff filed a bill of interpleader. The contest is between Mrs. Patton and the said heirs. Defendant Gleason, it seems, was executor of Mr. Patton’s will. From a decree in favor of said heirs at law, Mrs. Patton (and the executor) has appealed, and states her position:
“* * * Phebe Patton contends that the words ‘legal heirs’ as used in the policy to describe the beneficiaries, means those persons then in being who would fit the designation had the assured then died; that the persons then in being who met the designation were Ethel W. Patton their daughter and herself; that the daughter having died subsequently and before the assured’s death that she is the only surviving beneficiary and is entitled to the whole two. thousand dollars.”
If it were conceded that she is right in her construction of the words “legal heirs,” that would not dispose of the case. By the divorce she was made ineligible to take as a beneficiary (see 2 Comp. Laws 1915, § 9422, and cases annotated, Schiller-Bund v. Knack, 184 Mich. 95), and she passed without the class entitled to be named as beneficiaries under the rules of the society.
Two minor questions are raised, but they do not merit discussion.
The decree is affirmed, with coste to the heirs at law against Phebe Patton.
McDonald, Bird, Sharpe, Moore, Steere, Fellows, and WlEST, JJ., concurred. | [
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Fellows, J.
{after stating the facts). In the answer of defendants the defense of laches was not set up; neither the owner of the land nor the defendants have been harmed by the delay; and public policy requires a disposition of the case on the merits. Defendants contend-that the provisions of the new charter apply to sales made under the old charter and that if we should so hold no constitutional rights of plaintiff would be invaded. Plaintiff on the other hand insists that the sale to his assignors constituted a contract which would be impaired by the new legislation if held applicable to sales made previous to its adoption and for this reason and others, we should hold the legislation to be prospective, applicable only to sales made after its adoption.
We shall first consider the cases from this court relied on by defendants’ counsel. The case most strongly relied on is Weller v. Wheelock, 155 Mich. 698. We think that case clearly distinguishable from the case before us. In that case the change in the statute permitted payment to the register in chancery which was the provision under consideration; and Mr. Justice Mo'ntgomeey who wrote the prevailing opinion which settled the law (Dolph v. Norton, 158 Mich. 417) expressly pointed out that the time of redemption was not extended by the statute while here it is extended at least six months; he also pointed out that:
“It is not necessary in this case to determine whether, in so far as the amendment of 1903 attempted to confer a right upon another class, namely, pur chasers under tax titles, it was ineffective, in that it impaired the obligation of contracts. That question is not involved in this case.”
•When, however, this latter question did come before the court in Curry v. Backus, 156 Mich. 342, it was held (we quote from the syllabus):
“The tax law as amended by Act No. 142, Pub. Acts 1905, requiring the service of a notice to redeem from the sale of land for taxes upon the actual occupant of said land, does not apply to a sale and execution of the State’s deed before the passage of the act; such construction imposes an additional burden upon the purchaser and impairs the obligation of the contract. Weller v. Wheelock, 155 Mich. 698, distinguished.”
In Clugston v. Rogers, 203 Mich. 339, the amendment had reference to the form of the notice which this court held had to do only with the mode of procedure and did not affect the substantial rights of the parties. In Church v. Smith, 121 Mich. 97, also relied upon, the purchaser did not pay the taxes for 1896 before the act of 1897 went into effect but paid them after the suit was brought; under the law he was required to pay these taxes to make this purchase effectual. It was held that when he brought the suit he had no title and that his payment to perfect and acquire title being made after the act was passed made him subject to its provisions. But in Eldridge v. Richmond, 120 Mich. 586, where the purchaser had paid his money and filed his application and had acquired his rights before the law took effect, it was held that it did not apply to him even though the deed was not issued until some time after the act took effect. While not cited, State Savings Bank v. Matthews, 123 Mich. 56, should also be considered. That case had under consideration Act No. 200, Pub. Acts 1899, which dealt with the foreclosure of mortgages in chancery, and which without extending or shortening the time for redemption permitted the sale after six months from the time the bill was filed. It was held that the statute affected the remedy and not the substantial rights of the parties and that it was applicable to pending proceedings. Cases from other courts relied upon by defendants’ counsel will be considered later.
Section 1560, 4 Cooley on Taxation (4th Ed.), reads:
“What Law Governs. The statute in force at the time of the sale governs the right of redemption. A subsequent act giving the right to redeem is ineffectual to confer the right.”
And in the next section will be found the following:
“Now the purchase at a tax-sale is clearly a contract. It is made under the law as it then existe, and upon the terms prescribed by the law. No subsequent statute can import new terms into the contract, or add to those before expressed. If it could be changed in one particular, it could be in all; if subject to legislative control at all, it is wholly at the legislative mercy. Lengthening the time within which the land may be redeemed, as applicable to tax-sales already made, is unconstitutional as impairing the obligation of a contract.”
In section 729, 2 Blackwell on Tax Titles (5th Ed.), it is said:
“The law in being at the time of sale governs the right of redemption. The time can be neither lengthened nor shortened by subsequent legislation. Even though power be expressly reserved in the revenue laws to change the period, any statute attempting to alter the period as to any sale made under previously existing .laws will be unconstitutional, as a sale is a contract, and such change is void as impairing its obligation.”
Ruling Case Law speaking on this subject (26 R. C. L. p. 434) says:
“The sale of land for delinquent taxes constitutes a contract between the purchaser and the State, the obligations of which cannot be impaired to the disadvantage of the purchaser by subsequent legislation. The purchaser is entitled to insist that, as to matters of substance pertaining to the interest acquired by him and the right of redemption remaining in the owner, the law in force at the time of the sale shall govern.”
And 12 C. J. p. 1002 thus states the rule:
“The law in' force at the time a tax sale is made becomes a part of the purchaser’s contract, and any subsequent statute which attempts to deprive him of any substantial right secured to him by the existing law is void as impairing the obligation .of contracts.”
Some of the early cases in this court are, we think, by analogy applicable. Prior to Act No. 62 of 1843 (Session Laws of 1843, p. 139) under the usual covenants of a mortgage, the mortgagee, in default of payment, could enter the premises, sell them at public auction, retain the amount due, and pay the surplus to the mortgagor. In Mundy v. Monroe, 1 Mich. 68, the mortgage involved was given prior to the enactment of the statute which gave time for redemption. It was contended that the act so far as it applied to mortgages executed before its enactment was unconstitutional in that it impaired the obligation of contract. The opinion fully considers the question and sustains the contention. The case was followed in Blackwood v. Van Vleet, 11 Mich. 252. In Cargill v. Power, 1 Mich. 369, the mortgage was given when the law permitted redemption within two years (Act No. 40, Laws 1844, § 6); when it was foreclosed the law had been changed by making the period of redemption one year (Rev. Stat. 1846, chap. 130, § 11). It was held that the act so far as applicable to mortgages executed before its enactment was unconstitutional, that the law at the time of the making of the mortgage became a part of the contract which could not be impaired by subsequent legislation. These cases, we think, demonstrate that a change in the period of redemption is not a change in the remedy but is a change affecting the substantial rights of the parties. The importance of the question before us, however, impels consideration of cases from other jurisdictions.
In Bronson v. Kinzie, 1 How. (U. S.) 310, the court had before it a statute of the State of Illinois having reference to the foreclosure of mortgages, and it was there held (we quote the syllabus):
“A State law, passed subsequently to the execution of a mortgage, which declares that the equitable estate of the mortgagor shall not be extinguished for twelve months after a sale under a decree in chancery, and which prevents any sale unless two-thirds of the amount at which the property has been valued by appraisers shall be bid therefor, is within the clause .of the tenth section of the first article of the Constitution of the United States, which prohibits a State from passing a law impairing the obligation of contracts.”
Having reference to the contention that the statute affected only the remedy, it was said by the Chief Justice, speaking for the court:
“Whatever belongs merely to the remedy may be altered according to the will of the State, provided the alteration does not impair the obligation of the contract. But if that effect is produced, it is immaterial whether it is done by acting on the remedy or directly on the contract itself. In either case it is prohibited by the Constitution.”
He also said:
“So, also, the rights of the mortgagee, as known to the laws, required no express stipulation to define or secure them. They were annexed to the contract at the time it was made, and formed a part of it; and any subsequent law, impairing the rights thus acquired, impairs the obligations which the contract imposed.”
In Barnitz v. Beverly, 163 U. S. 118 (16 Sup. Ct. 1042), the same court had before it a similar question. The State of Kansas enacted a statute giving the mortgagor 18 months after sale in which to redeem. The State court had construed the statute to apply to existing mortgages and as so construed sustained its validity. In reversing the decision of the Kansas supreme court, the court reviewed the authorities at some length and held:
“Without pursuing the subject further, we hold that a statute which authorizes the redemption of property sold upon foreclosure of a mortgage, where no right of redemption previously existed, or which extends the period of redemption beyond the time formerly allowed, cannot constitutionally apply to a sale under a mortgage executed before its passage.”
In Robinson v. Howe, 13 Wis. 341, the court had before it a statute extending the time for redemption from a tax sale. It was there said:
“But the rights of the purchaser stand upon a different footing. They are derived from the contract, which the law authorized to be made. He contracted at the sale for a deed of the kind which the law then authorized him to contract for. That was an absolute deed at the end of three years, liable to be defeated only by a redemption before it was recorded. It seems to me clear, therefore, that when the law of 1852 said he should not have such a deed, but should take one liable to be defeated by a redemption at any time within a year after it was recorded, it directly impaired the obligation of the contract. I think it might just as well provide that, instead of any deed, he should take a lease for years. The answer in either case is, that the thing given is different from what he contracted for, and the law cannot compel him to take it without impairing the obligation of his contract. I think, therefore, that the third section of the law of 1852 was void, as a violation of the contract -with the purchaser.”
In Hull v. State, 29 Fla. 79 (11 South. 97, 30 Am. St. Rep. 95), a similar statute was before the court and it was there said:
“By the contract right to a deed it was intended and implied that upon obtaining the deed, he should have the immediate right to the ownership and exclusive possession and use of thé land, with all the beneficial incidents of such ownership. This right to have a deed after the fifth day of August, 1891, and the rights incident thereto, were obligations of the contract, and to postpone against the will of the purchaser, or of his assignee, the enjoyment of such rights for even a day, or the shortest period, to say nothing of a period of nearly two years, and this too for the purpose of offering to the owner, or a creditor, during the time the privilege of redeeming, if he shall see fit to exercise it, is a vital and patent impairment of such obligation.”
See, also, Merrill v. Dearing, 32 Minn. 479 (21 N. W. 721); Dikeman v. Dikeman, 11 Paige (N. Y.), 484; State v. Fylpaa, 3 S. D. 586 (54 N. W. 599); Forqueran v. Donnally, 7 W. Va. 114; Solis v. Williams, 205 Mass. 350 (91 N. E. 148); Groves v. Keene, 105 Ark. 40 (150 S. W. 575); Smith v. Spillman, 135 Ark. 279 (205 S. W. 107, 1 A. L. R. 136); State v. Bradshaw, 39 Fla. 137 (22 South. 296); Green v. Biddle, 8 Wheat. (U. S.) 1; 1 A. L. R. 143, note.
Gault’s Appeal, 33 Pa. St. 94, relied upon by defendants’ counsel, holds to the contrary, but it is so out of line with the overwhelming weight of authority that we decline to follow it. Curtis v. Whitney, 13 Wall. (U. S.) 68, cited by this court in the Weller Case, involved, like that case, a statute which did not extend the time of redemption and like the Weller Case is distinguished from the case at bar. Vance v. Vance, 108 U. S. 514 (2 Sup. Ct. 854), involved the constitutional and statutory provisions of the State of Louisiana, requiring the recording of mortgages and the effect of failure to record as to third persons. The provisions did not attempt to affect the rights of the parties inter se or in any way change their liabilities. It did not in any way impair the obligations of the parties.
When plaintiff’s assignors bid at the tax sales and their bids were accepted and they paid the amount thereof and received their certificates of sale, they each made a contract with the city and the provision of the then charter that they should be entitled to deeds, or leases, at the end of one year became a part of the contracts. When the city by the provisions of the new charter attempted to change the terms of the contracts by providing that they should not have the deeds or leases at the end of a year, but not until the end of 18 months and then only on their complying with requirements which formed no part of the original contracts, the city attempted to impair the obligation of the contracts. We are, therefore, constrained to hold that as to sales made prior to the time the new charter took effect the provisions under consideration are invalid. This gives the new charter a prospective effect only and preserves the contract rights of those who bought before its adoption.
The judgment will, be affirmed, with costs.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steere, and Wiest, JJ., concurred. | [
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Clark, C. J.
Plaintiff signed subscription for 50 shares Of the capital stock of the defendant, the consideration named being $5,000, $1,250 cash, remainder in deferred payments. For the $1,250 he gave his negotiable promissory note, which, in the hands of a holder for value without notice, he was made to pay in the then amount of $1,293.75. No -certificate of stock was issued to him. Claiming that he had been induced to purchase by the fraud of Scott, the stock salesman, he sued for damages and had verdict and judgment. Defendant brings error.
All questions presented have been considered. The jury questions were properly submitted. The verdict has sufficient evidential support. The case in fact resembles so closely Plate v. Fidelity & Surety Co., ante, 482, that the statement there will suffice. Of the questions which merit discussion, that case, and its companion, Plate v. Fidelity & Surety Co., ante, 489, are decisive.
Judgment affirmed.
McDonald, Sharpe, Steere, Fellows, and Wiest, JJ., concurred. Bird and Moore, JJ., did not sit. | [
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Fellows, J.
Defendant Cornelius Zwagerman owned some land which was needed by the county of Ottawa for highway purposes. The land adjoined the right of way of the Pere Marquette Railway Company and was used for coal sheds with a spur or side track running along their side but on the lands of the company. Negotiations proceeded for some time. What they were and the amounts offered are in dispute. The trial judge found the facts to be with plaintiffs and in view of some of the extravagant testimony given by defendants, we have no hesitancy in agreeing with him and we shall, therefore, proceed to state the facts as we find them to be without reviewing all the conflicting claims. The county engineer offered defendant $2,000; defendant wanted more; to convince' him that he was entitled to more he established the fact that the side track belonged to him and that it had cost him nearly $1,000. It would be of little value to defendant with his coal sheds removed and would be valuable to the county in getting in material during construction but not afterwards. The engineer increased his offer $1,000 and we are clearly convinced he did so to reimburse defendant for the cost of the side track and with the agreement that it should pass with the land to the county. Arrangements were also made for the use by defendant of another side track. The $3,000 was deposited in a local bank and its cashier prepared a deed naming “The Ottawa County Road Commission” as grantee. The deed did not convey the side track nor was any paper drawn transferring it. Previous to making their bids for the construction of the highway, the bidders were advised that they could use the side track to get their material in on. When, however, the successful bidder attempted to use it defendant insisted that it belonged to him and refused permission to use it except on the payment of a considerable sum for rent. Thereupon this bill was filed. It sought reformation of the deed by making the county, of Ottawa grantee, the reformation of the deed so as to include the side track on the grounds of mutual mistake, the specific performance of the contract, an injunction and general relief. The trial judge reformed the deed on the ground of mutual mistake. No claim is made that the county of Ottawa is not the proper grantee or that the deed should not be corrected in this regard.
Defendants’ counsel is correct in his contention that this decree can not be sustained on the grounds of mutual mistake. The testimony does not establish that the side track was omitted from the deed through the mistake of both parties. But we have held on numerous occasions that a case will not be reversed because a wrong reason was given for a correct decree or judgment. We are clearly convinced that the contract was as claimed by plaintiffs. The bill prayed for its specific performance and that was the relief plaintiffs were entitled to. The fact that the side track was personal property does not, under the facts of this case, defeat such remedy. 25 R. C. L. p. 293. The result, however, is the same and it follows that
The decree must be affirmed. Plaintiffs will have costs of this court.
Clark, C. J., and McDonald, Bird, Moore, Steere, and Wiest, JJ., concurred. Sharpe, J., did not sit. | [
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Sharpe, J.
On July 31, 1919, defendant executed two bonds as surety for William J. and S. M. Bacon, conditioned for the faithful performance of a contract they had entered into with the board of county road commissioners of the county of Saginaw, for the construction of a certain highway known as assessment district road No. 11 in that county. Plaintiff owned a gravel pit and sold gravel therefrom to the Bacons for constructing the road at $1.40 per square yard. They did not pay him, and he sued them and recovered a judgment therefor in the sum of $3,135.
In this action plaintiff seeks to recover from the surety company the amount due him for the gravel furnished the Bacons and used by them in the performance of their contract. Defendant moved for a directed verdict, for the reason that there was no competent evidence from which the jury might determine how much, if any, gravel plaintiff furnished the Bacons which went into the construction of the road. This motion was overruled. The jury found for plaintiff in the sum of $3,265.85. Defendant reviews the judgment entered thereon by writ of error.
The judgment in the suit brought by plaintiff against the Bacons was admitted in evidence, as were also the files in that case. The bill of particulars claimed for gravel taken from May to November, 1920, at the contract price, amounting to $3,285. Other items increased this amount to $4,634. Before the trial of that suit, a conference was had between Mr. Chandler, one of plaintiff’s attorneys, and the Bacons and one of their attorneys. Mr. Chandler then produced the slips showing the amounts of gravel which had been taken from the pit, which had been furnished plaintiff by the “pit bosses” in the employ of the Bacons. These included the items above referred to, amounting to $3,285. After checking them over, an agreement was reached, resulting in a stipulation signed by the attorneys for both parties that a judgment might be entered in favor of plaintiff for $3,135, and it was afterwards so entered. Objection was made to this evidence and to the testimony of Mr. Chandler as to the amounts shown by these slips—
“Because it was not shown that anything which was said or done at that conference related in any way to any material which was used by Bacon Brothers in connection with the performance of the contract involved in this suit.”
There can be no question under the proofs but that the suit brought against the Bacons was for gravel furnished them for use in the construction of the highway mentioned in the contract and bond. While the direct question was not asked, there is nothing to indicate that the Bacons were using gravel in the construction of any other road. Plaintiff testified positively that the gravel furnished was for assessment road district No. 11. He was asked:
“Q. This gravel you have charged them with, it all went into the road referred to here?
“A. Yes.”
He admitted, however, that he did not go with every load taken to see where it was delivered. One of his sons worked in the pit, and also hauled some of the gravel. He was asked:
“Q. Was any of this gravel which was taken out of this pit hauled on any other road district to your knowledge?”
and answered, “No.” He testified that the “pit bosses” set down the amount of the gravel taken out each day on slips and delivered them to his father each night. These were the slips produced by Mr. Chandler at the conference and thereafter destroyed.
We think the judgment and the testimony of Mr. Chandler were admissible and that a prima facie case for the plaintiff was made as to the amount of gravel furnished by plaintiff to the Bacons and that it was used in the construction of the highway mentioned and described in the contract and bonds.
In 22 C. J. p. 405 it is said:
“In cases of suretyship, an admission of the principal, when made in good faith, in connection with the obligation or duties to which the suretyship relates, is competent against the surety.”
As to the admission of the judgment, see Norris v. Mersereau, 74 Mich. 687; Moses v. United States, 166 U. S. 571 (17 Sup. Ct. 682); and note in 52 L. R. A. 170.
The contract provided for the completion of the work on or before July 30, 1920. Defendant contends that no recovery may be had against it for gravel furnished after that date. Defendant’s bond on which its liability to persons furnishing material rested contained an express agreement on its part to an extension of time to the principal without notice to the surety. As the contractor was allowed to continue the work after the time for performance had expired, it will be presumed that an extension was granted by the county road commissioners.
The judgment is affirmed.
Clark, C. J., and McDonald, Bird, Moore, Steeee, Fellows, and Wiest, JJ., concurred. | [
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Fellows, J.
Defendant was convicted of murder in the first degree. The testimony taken .on the trial is not set out in detail but the bill of exceptions shows that confessions made by defendant were received in evidence, that several witnesses testified that such confessions were voluntarily made and that no inducements were offered or threats made or violence used to procure them; that defendant and others testified that the confessions were forced by members of the State police and that they were the result of force, threats and violence. The errors assigned, which are necessary to decision, are upon the instruction of the court on the law of confessions.
The learned prosecuting attorney invokes the well-recognized rule that the charge must be considered in its entirety in determining whether an error necessitating a reversal has been committed. That rule is well established but it does not go to the extent claimed for it. If the charge on the question of confessions was erroneous, it is not cured by a correct instruction as to reasonable doubt, or a correct definition of murder in the first degree. Outside the question of confessions the charge is an admirable one and beyond assault. We should, of course, consider all that was said in the charge on the question of confessions, and, that it may be before us, we quote that portion of the charge in full putting in brackets the two portions on which error is assigned.
“Now, I will instruct you upon the subject of confessions.
“Certain confessions of Alice Dudgeon have been offered and received in evidence in this case which she claims were obtained by torture, fear and improper means. And in this connection, I charge you that if you find the confession obtained by the State police or other officers from her were forced from her by flattery of hope, or by the torture of fear, and were not her voluntary act, and are untrue, you will reject it and give such confession no consideration, whatever.
“It appears that after an alleged confession to the State police or other officers, Alice Dudgeon was taken before a notary public who reduced such confession to writing, and stated to him the same or similar matters that she had stated to the police, and in that connection I charge you that if you find the confession alleged to have been made to the State police or other officers was obtained under circumstances rendering it involuntary and inadmissible, a presumption exists that any subsequent confession arose from a continuance of the prior influence, and this presumption must be overcome before the subsequent confession can be received in evidence. The controlling influence which produced the prior confession is presumed to continue until its cessation is affirmatively shown, and evidence to overcome or to rebut this presumption must be very clear, strong and satisfactory; if there is any doubt on this point, the confession must be excluded.
“[ (1) I further charge you on the subject of confessions and the conduct of the officers in obtaining them, that the fact that a confession was procured by the employment of falsehood by a police officer, detective, or other person, does not alone exclude it, nor does the employment of any artifice, deception, or fraud exclude it if the artifice or fraud employed was not calculated to procure an untrue statement.]
“[(2) It is not for you to exclude this confession because of the fact you find in the procuring thereof that an officer did an unlawful act. The query for you is but one query, and I instruct you to confine your query to that: Was the confession a true statement? No matter how obtained. If it is a true statement you will consider it. If it is untrue, you will disregard it.]”
It can not be said that this instruction was an erroneous statement of the law. People v. Dunnigan, 163 Mich. 349 (31 L. R. A. [N. S.] 940); People v. Lipsczinska, 212 Mich. 484. Whether it was applicable to the facts developed on the trial is not sufficiently disclosed by the record. Error cannot be presumed but must affirmatively appear. Reversal cannot be predicated on this assignment of error.
This instruction was clearly erroneous. We have pointed out that the question of whether the con fessions were voluntarily made was one of disputed fact. Before the jury had a right to consider them at all they must first settle the question of whether they were voluntary. By this instruction the jury was told that the sole test was whether they were true, “no matter how obtained.” This is not in accordance with the former holdings of this court. The uniform rule in this court is that confessions which are not voluntary may not be received and may not be considered by the jury. In People v. Prestidge, 182 Mich. 80, this court clearly pointed out the practice where the testimony is undisputed and where it is disputed. It was there said:
“If the preliminary testimony made it clear either that the statement claimed to have been made was voluntary or involuntary, it was the duty of the trial court to admit or reject it. If the testimony left the question in doubt, it was the duty of the court to admit it, and leave the question to the jury under proper instructions to determine whether it was voluntarily made.”
In People v. Wolcott, 51 Mich. 612, it was said by Justice Cooley, speaking for the court:
“If the statement of the respondent is believed, not only were promises of favor held out to him as an inducement to confess, but he was threatened with personal violence while in confinement; and though the party accused of the threats denies them, we find sufficient in the evidence of witnesses for the people to convince us that the respondent was treated in a manner which was altogether unwarranted. It appears without dispute that in the middle of the night after the officer who had arrested him had retired for much-needed rest, the respondent, instead of being allowed the like privilege of rest, was visited by three persons in succession, whose mission appears to have been to obtain confessions by impressing upon the mind of the respondent that it would be better for him, or he would get off easier if he made confession. None of these persons was the officer in charge; but their admission to the cell at such an unreasonable hour carried with it an implication of the officer’s consent tó their mission, and respondent could scarcely fail to be impressed that their assurances were made with full authority. No reliance can be placed upon admissions of guilt so obtained; for the very obvious reason that they are not made because they are true, but because, whether true or false, the accused is led to believe it is for his interest to make them (citing numerous cases).”
In People v. Clarke, 105 Mich. 169, the following among other requests was preferred:
“No confession is deemed to be voluntary if it appears to the judge to have been caused by any inducement, threat, or promise preceding from a person in authority, and having reference to the charge against the accused person, whether addressed to him directly or brought to his knowledge indirectly, and if such inducement, threat, or promise gave the accused person reasonable grounds for supposing that by making a confession he would gain some advantage or avoid some evil in reference to the proceedings against him. The prosecutor, officers of justice having the prisoner in custody, or magistrate are persons in authority.
“It is for the jury to determine for themselves whether the alleged confession of the defendant was made freely and voluntarily, without any influence of hope or fear. If so, they may consider it. If not, it is no evidence.”
The request was refused and this court said:
“The requests presented should have been given. The instruction given did not submit to the consideration of the jury the question of undue influence in obtaining the statement or of the inducements alleged to have been held out by the prosecuting attorney. Confessions are inadmissible when induced by threats, or by a promise of favor, made by persons apparently acting by authority.”
In People v. Brockett, 195 Mich. 169, this court said:
“Proof of a confession is never admissible unless it is voluntarily made, and by the word ‘voluntary’ is meant that the confession must be of the free will and accord of the defendant, without coercion whether from fear of any threat of harm, promise or inducement by hope of reward, or method known as ‘sweating’.”
In People v. Howes, 81 Mich. 396, Mr. Justice Grant, speaking for the court, very definitely laid down the rule as to confessions. After quoting from the charge in which the jury was cautioned as to the probative force of confessions, he said:
“This was correct, as far as it went; but the learned circuit judge did not go far enough to properly protect the rights of the respondent. The jury should have been instructed that it was their duty to leave out of consideration these statements, if they found that they were made under compulsion or duress, and that they should first determine that question. The circumstances under which these alleged statements were made were such as to require, in justice to the respondent, a clear and explicit charge from the court on this point.”
This holding was followed in People v. Maxfield, 146 Mich. 103, where it was said:
“We think the charge was erroneous. It rests the right to convict upon proof of the making of the acknowledgment, regardless of whether the acknowledgment was voluntary, or made under threats and promises of favor. The jury should have been instructed that it was their duty to first determine whether the statements were made voluntarily or under threats or promises.”
See, also, the following Michigan cases: Flagg v. People, 40 Mich. 706; People v. Barker, 60 Mich. 277 (1 Am. St. Rep. 501); People v. McClintic, 193 Mich. 589 (L. R. A. 1917C, 52); People v. Biossat, 206 Mich. 334. In a recent case, Ziang Sung Wan v. United States, U. S. Adv. Ops. 1924-25, p. 6 (45 Sup. Ct. 1), handed down October 13, 1924, Mr. Justice Brandéis, speaking for the court, said:
“A confession is voluntary in law if, and only if, it was, in fact, voluntarily made. A confession may have been given voluntarily, although it was made to police officers, while in custody, and in answer to an examination «conducted by them. But a confession obtained by compulsion must be excluded whatever may have been the character of the compulsion, and whether the compulsion was applied in a judicial proceeding or otherwise.”
It will be noted that in no part of the charge on the subject of confessions was there any attempt to cure this erroneous instruction, if it could be cured, except by withdrawing it in its entirety. Indeed, in beginning the instructions on the subject of confessions the learned trial judge fell into the same error and charged the jury that if they found the confessions were involuntary “and are untrue” they should reject them.
To sustain this instruction would sweep aside the bulwark that for nearly a century has protected the citizen accused of crime from the unjustified and unjustifiable acts of over-zealous, officers. To sustain this instruction would necessitate a holding that all confessions, no matter how obtained, whether by thumbscrew or torture, or promise, or force, should go to a jury without let or hindrance, leaving only for the jury to decide whether they were true or false. Such a holding does not comport with the spirit of our institutions; it is not conducive to a fair and impartial trial and would overturn the consistent holdings of this court from its very beginning.
The judgment of conviction must be reversed and a new trial granted. Defendant will be remanded to the custody of the sheriff of Newaygo county.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steere, and Wiest, JJ., concurred. | [
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WlEST, J.
Convicted of criminal syndicalism defendant prosecutes review on exceptions before sen-' tence. The information charged:
“That heretofore, to wit, on the 20th day of August A. D. 1922, in the township of Lake * * * (Berrien county, this State), C. E. Ruthenberg did voluntarily assemble with a certain society, group and assemblage of persons, to wit, the Communist Party of America, formed to teach and advocate the doctrines of criminal syndicalism.” * * *
Act No. 255, Pub. Acts 1919 (Comp. Laws Supp. 1922, § 15585 [2, 3]), defines the crime of criminal syndicalism, specifies acts constituting the offense and fixes the penalty:
“Section 1. Criminal syndicalism is hereby defined as the doctrine which advocates crime, sabotage, violence or other unlawful methods of terrorism as a means of accomplishing industrial or political reform. The advocacy of such doctrine, whether by word of mouth or writing, is a felony punishable as in this act, otherwise provided.
“Sec. 2. Any person who by word of mouth or writing, advocates or teaches the duty, necessity or propriety of crime, sabotage, violence or other unlawful method of terrorism as a means of accomplishing industrial or political reform; or prints, publishes, edits, issues or knowingly circulates, sells, distributes or publicly displays any book, paper, document, or written matter in any form, containing or advocating, advising or teaching the doctrine that industrial or political reform should be brought about by crime, sabotage, violence or other unlawful methods of terrorism; or openly, willfully and deliberately justifies by word of mouth or writing, the commission or the attempt to commit crime, sabotage, violence or other unlawful methods of terrorism with intent to exemplify, spread or advocate the propriety of the doctrines of criminal syndicalism; or organizes or helps to organize, or becomes a member of or voluntarily assembles with any society, group or assemblage of persons formed to teach or advocate the doctrines of criminal syndicalism is guilty of a felony and punishable by imprisonment in the State prison for not more than ten years or by a fine of not more than five thousand dollars, or both, at the discretion of the court.”
A national delegate convention of the Communist Party of America was called by the central executive committee of the party to meet at Bridgman, Berrien county, this State, in August, 1922. Delegates to the convention were not informed of the place of meeting, but under direction proceeded from city to city toward Bridgman and were finally steered there. Near Bridgman, an isolated hotel and cottages furnished accommodations for the 75 persons attending the convention and a natural amphitheatre amid the woods afforded a place for sessions. Every person attending had a party or assumed name. No communication with the outside world was permitted. Each participant in the convention was assigned a number and given a large manilla portfolio in which to place all papers and documents at the close of each day, to be taken up by the “grounds committee” for safe keeping. Defendant’s party name was “Damon” and his portfolio was number 50. These portfolios were deposited each night, by the committee, in two barrels, sunk in the ground at a distance from the hotel and covered with sand, leaves and sticks. Regulations of the “grounds committee” provided:
“No incriminating literature or document shall be kept in baggage or in rooms. All such matter must be turned over to the committee every evening. The grounds committee must arrange for the safe keeping of this matter.”
A central wash tub in which to burn incriminating papers was also maintained.
Convention sessions were held. Defendant, as a member of the central executive committee of the Communist Party of America, by virtue of his office, attended the convention as a fraternal delegate with the right to address, and did address the convention. One duly elected delegate in attendance was a special employee of the United States department of justice, bureau of investigation. A delegate from the Comintern (Communist or Third International), Moscow, Russia, was present, and a delegate from the Hungarian federation and another from the Red Trade International at Moscow were present and participated in the convention. Defendant reached the convention on August 15th and remained there until arrested on August 22d.
Federal officers, investigating activities of Communists, traced down the convention place, recognized certain Communists in attendance, and laid the matter before the sheriff of Berrien county. The Communists in attendance recognized the Federal officers and laid plans to disperse, with right to foreigners to go first, and many of the delegates hurriedly left. The sheriff, with a number of deputies and the Federal officers, visited the convention place one morning and arrested defendant and' 16 others, without warrants for arrest or search, seized their baggage, and took them to the county jail. The sheriff then learned of the depository of the grounds committee and made search, found the barrels and seized their contents.
The information as filed contained four counts. The court quashed the first, second and third counts, on motion of defendant, leaving the fourth count as the charge. Defendant insists that this statute violates sections 2, 4, 16 and 19, article 2, of the Constitution of this State, and section 1 of the Fourteenth Amendment to the Constitution of the United States. Does this statute contravene the right of the people to peaceably assemble? To so hold would require us to say that it is violative of the Constitution to make it a crime for one, in sympathy with and on his own. volition to join in an assemblage of persons formed to teach or advocate crime, sabotage, violence or other unlawful methods of terrorism as a means of accomplishing industrial or political reform. We cannot make any such holding.
Does the statute prevent freedom of speech? This statute reaches an abuse of the right to freely speak, write and publish sentiments, and is squarely within the accountability allowed to be exacted, in the very provision invoked. This statute does not restrain or abridge liberty of speech.
As said of a similar statute in People v. Steelik, 187 Cal. 361, 375 (203 Pac. 78):
‘‘The legislature has power to punish.. propaganda which has for its purpose the destruction of government or the rights of property which the government was formed to preserve.”
See, also, State v. Hennessy, 114 Wash. 351 (195 Pac. 211).
In Schaefer v. United States, 251 U. S. 466 (40 Sup. Ct. 259), the accused invoked the constitutional right of free speech, in a prosecution under the espionage act, and received this merited rebuke:
“But simple as the law is, perilous to the country as disobedience to it was, offenders developed and when it was exerted against them challenged it to decision as a violation of the right of free speech assured by the Constitution of the United States. A curious spectacle was presented: that great ordinance of government and orderly liberty was invoked to justify the activities of anarchy or of the enemies of the United States, and by a strange perversion of its precepts it was adduced against itself. * * * Verdicts and judgments of conviction were the reply to the challenge and when they were brought , here our response to it was unhesitating and direct. We did more than reject the contention; we forestalled all shades of repetition of it including that in the case at bar. Schenck v. United States, 249 U. S. 47 (39 Sup. Ct. 247); Frohwerk v. United States, 249 U. S. 204 (39 Sup. Ct. 249); Debs v. United States, 249 U. S. 211 (39 Sup. Ct. 252); Abrams v. United States, 250 U. S. 616 (40 Sup. Ct. 17).”
See, also, Gilbert v. Minnesota, 254 U. S. 325 (41 Sup. Ct. 125); State v. Holm, 139 Minn. 267 (166 N. W. 181, L. R. A. 1918C, 304).
In People v. Lloyd, 304 Ill. 23, 37 (136 N. E. 505), a prosecution under a similar criminal syndicalism act, the court stated, in answer to the claim that the act violated the right of free speech:
“It would be a strange Constitution, indeed, that would guarantee to any man the right to advocate the destruction by force of that which that Constitution guarantees to the people living under its protection.”
See, also, People v. Most, 171 N. Y. 423 (64 N. E. 175, 58 L. R. A. 509); State v. Boyd, 86 N. J. Law, 75 (91 Atl. 586).
The reasons advanced here against the constitutionality of the act have been urged against similar acts in other jurisdictions and found to have no merit. The act does not violate the Fourteenth Amendment to the Federal Constitution.
Defendant claims the statute is too vague to form the basis of a prosecution for felony and is a nullity because it punishes as a felony the enunciation of a doctrine without regard to the intent, the occasion, the result or the imminent result of the enunciation. The legislature may, to safeguard security of persons and property, denounce as criminal specified acts inimical thereto, and make guilt of an offender rest upon his voluntary act, without any felonious intent. This statute involves no felonious intent. It does involve voluntary action, its denunciation of assembling with a society, group or assembly, formed to teach the doctrines of criminal syndicalism, is dependent upon whether the act of joining is voluntary or not. To act voluntarily involves election to so act, and election to be such requires knowledge that the assembly one makes choice to join, and to participate in the purposes thereof, was formed to teach .or advocate criminal syndicalism. But this does not constitute felonious intent, to be denounced in the statute or averred in the information. It was held in State v. Hennessy, supra, under a similar statute, that felonious intent was not involved.
It is claimed the provisions of the statute do not fix an ascertainable standard of guilt and are not adequate to inform persons, accused of violation thereof, of the nature and cause of accusation against them. It is said in support of this that the term “sabotage” is subject to a variety of innocent meanings, and the term “violence” is not necessarily limited to physical or criminal violence. The naivete of this should make a Communist smile. One need read but little to discover what the terms sabotage and violence mean with reference to industrial or political agenda advocated by radicals. The term sabotage is so well understood by Communists as to be employed in the theses and resolutions adopted at the third world congress of the Communist International without any explanation to exclude possible innocent meaning. Dictionaries have explained the meaning of sabotage for many years. Sabotage has had a well understood meaning ever since French industrial workers threw their sabots, or wooden shoes, into machinery. It signifies a wilful act of destruction and has so been understood by writers for many years. Non-criminal sabotage, such as loafing on the job, of course, does not fall within the act. The legislature evidently intended to denounce the “revolutionary notion” of sabotage, as mentioned by Austin Lewis in the “Militant Proletariat” (1911) :
“Sabotage appears as a disagreeable incident in a revolutionary campaign, unjustifiable under conditions which exclude the revolutionary notion, but perfectly justifiable in terms of the revolution.”
In law, the term “violence” means the unlawful exercise of physical force, or intimidation by its exhibition and threat of employment. The meaning of the term is not uncertain. See People v. Lloyd, supra. The statute and information are not void for uncertainty. People v. Steelik, supra. Other questions, connected with the attack upon the statute and the information, are covered later in this opinion.
Was the court in error in overruling the challenge to juror A. R. Nelson? The record states that, upon overruling the challenge, Mr. Nelson was excused by defendant and this exhausted his peremptory challenges. Examination of the juror disclosed that he had read, to some extent, newspaper accounts about the case and about the trial of one Foster some eight months before; that he had never heard anybody express an opinion as to defendant’s guilt or innocence, and he had not expressed such an opinion; that he entertained an opinion to some extent and the opinion, in a way, would have to be overcome by evidence; that he did not know as he ought to sit in the case but he conscientiously felt he could give defendant the presumption of innocence, although it would naturally take evidence to overcome his opinion, but did not know as it would take a great deal of evidence, although it might take a great deal of evidence before the opinion was “obliterated” from his mind; that such opinion might be removed by evidence but he could not say so at that time:
“Q. But you do know that it will take evidence to remove the opinion you have? That is correct?
“A. Yes, sir.
“Q. You don’t know how much evidence it might take to do that?
“A. No, I don’t.
, “Q. Is it not a fact that no amount of evidence might remove it?
“A. No.
“Q. It might be so fixed that it would take a great deal of evidence to remove it?
“A. I am not so set in my ways as all that.
“Q. You cannot tell how much it would take to remove it?
“A. Not exactly.”
Questions by the Court:.
“You understand that Mr.. Ruthenberg is presumed to be innocent; as he sits here there is no evidence against him at all; that he is presumed to be innocent?
“A. Yes, sir.
“Q. And it is the duty of the people to produce evidence in the courtroom, from the witness stand, to convince your mind beyond reasonable doubt, before you can vote to convict?
“A. Yes, sir. * * *
“Q. If you are chosen a juror, will you disregard your opinion entirely and form your judgment by the evidence you receive on the witness stand?
“A. Yes, sir, I can do that.
“Q. Your previous opinion, such as it may be, will not influence your judgment at all?
“A. No, sir.” * * *
Questions by Mr. Walsh:
“Q. Did you, prior to the trial or during the trial of Mr. Foster, give expression to an opinion that you had as to the guilt or innocence of the defendant?
“A., I have no recollection of ever mentioning it.
“Q. When did you acquire this opinion? Did you read the first reports of this case or of the alleged facts in the case after the raid?
“A. I might have at the time, but very little of it.
“Q. Do you remember what the evidence was in the case?
“A. No, sir, I don’t.
“Q. What it was alleged to be?
“A. No.
“Q. Did you read the evidence as it was adduced in the trial of Mr. Foster?
“A. No.
“Q. Did you read any of it at all?
“A. Not but very little; I read the headings of it, but not very much.
“Q, Did you discuss the question of the guilt or innocence of Mr. Ruthenberg or Mr. Foster, or anyone connected with that assembly, at any time?
“A. No.
“Q. Did any person discuss it in your presence?
“A. No, not to my knowledge.
“Q. May I ask you then at what time, chronologically, what time in point of time from the raid, it was first you heard of it, taking it down to the present time — what time it was you formed this opinion?
“A. About the time of the raid.
“Q. That opinion has abided with you since that time?
“A. Just that much as I told you a while ago;
“Q. You have that opinion now?
“A. Yes, sir.”
The examination of the juror presents a record quite similar to that in Spies v. Illinois, 123 U. S. 131, 170 (8 Sup. Ct. 22), except in the Spies Case the juror had expressed the opinion he entertained. There the challenge was held not good.
In People v. Garner, 216 Mich. 178, this court divided upon the question of whether the record therein disclosed disqualification of the juror. The writer of this opinion entertained the view that the juror there was disqualified. A reading of the examination of the juror Nelson is persuasive that he was eminently fair and treated his mere impression as an opinion. He was questioned at length with reference to his attitude toward radical movements and political changes and exhibited a great degree of liberality. The circuit judge saw the juror, noted his demeanor and was evidently impressed with his absolute fairness. We should not substitute our opinion for that of the trial judge except in a clear case of error. We do not think the juror was “all set” as in the Garner Case or that he entertained such an opinion as would-have influenced his verdict, and there was no reversible error in overruling the challenge.
Bill of Particulars. The Constitution requires that an accused be informed of the nature of the accusation against him (art. 2, § 19). The information in plain language gave defendant notice of the charge against him. He moved for a bill of particulars, claiming the information was not “sufficiently specific to advise respondent of what proof he may need upon the trial of above cause, or to enable the respondent properly to prepare his defense against the charges contained in said information,” and he asked that the prosecution be made to advise him of “the facts and circumstances of the assembly referred to in the fourth count, and of the matters leading to the conclusion that the Communist Party of America was formed and, at the time and place alleged, constituted an organization to teach and advocate the doctrines of criminal syndicalism.” The prosecutor voluntarily offered counsel the right to examine any and all documents, writings and papers seized, at any convenient time, and did furnish a statement setting forth 192 items, fully identifying each one and explanatory thereof. This list was served March 5,1923. Thereafter defendant’s motion for a bill of particulars was renewed, and on April 16, 1923, denied. The trial commenced April 19, 1923. The list of documents, papers and writings gave defendant all he was entitled to have. Defendant was not entitled to a statement of the evidence to be produced at the trial. Had he wanted to know the nature of the evidence he could have obtained such knowledge in a preliminary examination. The law gave him a right to have or waive such an examination. He waived it. The bill of particulars would not amplify the charge in the information but might curtail the evidence of the prosecution. Defendant will not be heard to complain of an unsuccessful effort to curtail the competent evidence against him.
In People v. Lloyd, supra, the trial court ordered a bill of particulars but declined to require the prosecution, to inform defendants of the nature and particulars of the violence, other unlawful means, force and crime and physical injury charged. The bill of particulars there furnished gave the title or section of every book, pamphlet, leaflet, newspaper, letter, handbill and songs, and the minutes of the various conventions, and committees in which defendants participated and the platform of the various parties or organizations to which they belonged. This was held sufficient. The defendant is not charged with carrying out any particular act of violence or with using any force and, therefore, it would not be possible to particularize the violence and force.
It was further said in the Lloyd Case:
“Whether the State shall be required to furnish a bill of particulars in a particular case, and the character and extent of such a bill, if required, rests in the sound legal discretion of the trial court, and it is only in cases where it is clear that there has been an abuse of this discretion that the action of the trial court, in denying a part or all of the request will be held to be error.”
The information filed was sufficient to put defendant to trial, and we find no abuse of discretion on the part of the trial judge in refusing a bill of particulars.
Defendant, by motion before trial, asked the court to suppress the evidence found in his suitcase, on the ground of illegal seizure. This motion was denied. The record discloses the sheriff of Berrien county had information imparted to him by persons having personal knowledge of the facts that members of the Communist party were then committing the felony of criminal syndicalism near Bridgman, and he proceeded to that place and arrested defendant and others, and after arrest, seized defendant’s suitcase and the baggage of the others, all of which was on the ground in the open. Defendant claims this was a violation of his constitutional right against search and seizure. We have lately had occasion to discuss every phase of the law of search and seizure, and it is unnecessary to take the subject up at length at this time. The papers defendant asked to have suppressed bore a direct relation to the cause for his arrest and it violated no constitutional right of defendant, after arrest, to seize his suitcase standing in plain view. Such seizure was a lawful incident of the arrest and falls within the decision of this court in People v. Cona, 180 Mich. 641.
That defendant voluntarily assembled with the other delegates at the Bridgman convention as a Communist leader, factor and paid official is placed beyond question. Defendant, as a member of the Communist Party of America, section of the Communist International of Moscow, Russia, was re-elected a member of the central executive committee at the Bridgman, convention. The national convention at Bridgman was called by the central executive committee, of which committee defendant was a member. He attended the Bridgman convention as a fraternal delegate, by virtue of his office, with right to address, and did address, the convention. He was a voluntary vassal of the Third International and, as such, was on the errand of carrying out its policies, furthering its doctrines and advocating its tactics. So found, so bound, so working and assembling with others formed as a group or society to teach the doctrines and tactics of the Communist party he is to be judged by the declared policies, fixed doctrines and commanded tactics of the Communist Party of America, section of the Communist International. To avoid being held to the doctrines and tactics of the Communist party, defendant claims that, on August 6, 1922, the central executive committee of the Communist party adopted a program to be submitted to the Bridgman convention, under which the Communist party should merge'into the Workers’ party (launched December 25, 1921), change the Workers’ party into an open Communist party and carry on ail of its propaganda and work as an open Communist party in the United States, and that this claimed scheme to liquidate the underground or illegal Communist party was under consideration at Bridgman, but was cut short by the safety-first hegira occasioned by sight of the Federal officers. Defendant was permitted to lay before the jury the proposed program of the Workers’ party he had with him at Bridgman. This proposed program as was intended dovetailed with the illegal purposes of the Communist party. It declared:
“The capitalist State, that is, the existing Government, municipal, State and National is the organized power of the capitalist class for suppression of the demands of the exploited and oppressed workers.”
It stated:
“The class struggle must take the form of a political struggle, a struggle for control of the government.”
But this was so transparently buncombe as to mislead no one. It declared:
“The much talked of ‘American Democracy’ is a fraud. Such formal democracy as is written into the Constitution and laws of the country is camouflage to hide the real character of the rule of the capitalist.”
It also declared the futility of accomplishing their ends through political action and mapped the following scheme:
“The Workers’ party will also nominate its candidates and enter into the election campaigns to expose the fraudulent character of capitalist democracy and carry on the propaganda for the Soviets.”
It must be understood, in considering this program, that the authors thereof make no distinction between capitalist, capitalism and the American form of government. The program also stated:
“The Workers’ party declares one of its chief immediate tasks to be to inspire in the labor unions a revolutionary purpose and to unite them in a mass movement of uncompromising struggle against capitalism.”
It declared its support of the Red Labor International. It also stated:
“The aim of the Workers’ party in participating in the elections, in revolutionizing the unions and its work to unite the industrial worker, farm laborer, working farmer and negro is to build a united front of the whole exploited class and to make its direct, mass power a factor in the class struggle.”
The unlawful intended purpose of such mass power was stated:
“If during the present strike of the coal miners, the railroad' shopmen and textile workers, the whole working class had united in mass meeting and mass demonstration against the use of courts and soldiers in the strike they could have through such mass pressure compelled the government to withdraw the troops and recall the injunctions.” -
It predicted:
“The miners and railroad shopmen are learning from the experience of their struggles that the strongest weapon the capitalists use against them is the power of the government. The mass struggle of the workers will teach them the same lesson, and from these experiences the mass struggles- of the workers will become struggles directed toward the end of wresting the governmental power from the hands of the capitalist and establishing the Workers’ Republic.”
It proposed to destroy the government:
“The Workers’ party will carry on propaganda to bring to the workers an understanding of the necessity of supplanting the existing capitalist government with a Soviet government. * * * The Soviet government of the workers, will, because of the same' necessity — the necessity -of suppressing the capitalist —be a dictatorship of the workers. * * *
“The Goal of the Proletarian Dictatorship. It will be the task of the government of the thirty million workers of this country to take from the capitalist the control and ownership of the raw materials and machinery of production upon which the workers are dependent for their life, liberty and happiness and to establish Communist ownership. Together with this Communist ownership the Worker’s Government will, as quickly as possible, develop the management of industries by the workers. * * * The workers of Russia have been obliged to fight against the whole capitalist world in order to maintain their Soviet government and to win the opportunity of rebuilding their system of production on a Communist basis. In this struggle they have had the support of the enlightened workers in every country. The future struggles against capitalism will take the same character. In order to win the final victory in the struggle against world capitalism the working class of the world must be united under one leadership. * * *
“The leadership in the international struggle which inspires hope in the hearts of the workers of the world and arouses fear in the capitalist of every country is the leadership of the Communist International. The Workers’ party declares itself in sympathy with the principles of the Communist International and enters the struggle against American capitalist, the most powerful of the national groups, under the leadership of the Communist International.”
The agenda of the national convention of the Workers’ Party of America, set to be held at Chicago, August 28, 1922, immediately following the convention of the Communist Party of America at Bridgman, outlined the proposed program containing the declaration of principles of the Number Two, or so-called legal party. It provided:
“The red thread of the document must be the idea and- practice of the class struggle. In this connection mass actions must be dealt with. This part must be American. * * * The political part must lead up to the climax of the ‘Dictatorship of the Proletariat.’ ”
The defendant would have us entertain the opinion that he attended the Bridgman convention to turn the Communist party from its illegal activities and constitute it, through merger with the Workers’ party, an open or legal party. We entertain no such opinion. Neither did the jury. We will point out why. The program ought to be enough but we will go back of that. The question of whether there should be an open or legal party in connection with the underground or illegal party was under discussion for some time and led to so much disagreement that the subject was taken to the Communist International at Moscow, and that body sanctioned a legal party as an open- expression of the illegal party. This was for propaganda purposes only. At a meeting of the central executive committee in New York, July 26, 1922, at which defendant was present and participated as a member, a committee was appointed to recommend to the Bridgman convention an adjustment of the disturbing question of an open party and its relation to the underground or illegal party. Resolutions of the adjustment committee on the subject were presented at the Bridgman convention and adopted unanimously. The underground or illegal party is known in the party councils as Number 1, and the open party as Number 2. The resolutions of the adjustment committee, so adopted, provided under the head of “liquidation”:
“1. The illegal Communist party must continue to exist and must continue to direct the whole Communist work.
“2. The open work in all forms and especially in Number Two is the main task of the party.
“3. A legal C. P. (Communist Party) is now impossible. Should conditions change only a convention can change the party’s policy.”
Under the head of “Relations of Number One and Number Two,” the resolution so adopted at Bridgman declared:
“According to the thesis of the second world congress of the Communist International, the role of the Communist party in the proletarian revolution is: The Communist party is the organized political lever by means of which the more advanced part of the working class leads all the proletarian and semi-proletarian mass.’
“2. The Communist party in its revolutionary outlook, does in no country feel itself bound by the existing laws forced upon it by the bourgeois class State; not only in the historic revolution which it strives to bring about and which naturally cannot be carried out legally, but also in its activity in the period of preparation does the C. P. and the fighting proletariat come in open conflict with bourgeois justice and the organs of bourgeois State apparatus.”
The resolution so adopted mapped the program of the Number Two party as follows:
“1. The program of the No. 2 must be short: A manifesto which in short concise sentences not in the form of a narrative or syllogism, contains the declaration of principles.
“2. The red thread of the program is the idea and the practice of the class struggle. In this connection mass-action should be dealt with. This part must be American; it must deal with partial struggles of the American masses as well as with the general struggle of the thirty million American workers. In this portion must be stated the basic elements out of which our trade union tactics is developed. The fundamentals of the United Front should be here expressed.
“3. The political part must lead up to the climax of the proletarian dictatorship. This formula appears in contra-distinction to the dictatorship of the capitalists. American democracy must be analyzed. Rule of the thirty million for the overthrow of capitalism as against rule of Wall street for the conservation of exploitation. Soviet rule as the historic form of a proletarian regime in the transformation period.
“4. Imperialism and war.
“5. One or two sentences must be inserted in a fit place dealing with the yellows and reformists and against the policy of compromise.”
J. Lovestone, national secretary of the Communist Party of America, was present and participated in the Bridgman convention and his testimony, relative to the purpose of the open party, is illuminating. He testified:
“When I helped write the Workers’ party program we wrote it for the Communist movement in this country; we wrote it as the program of the Workers’ party and of the Communist party. * * *
“The Communist Party of America was known in the code of the party as organization No. 1. The Workers’ party as No. 2. * * * The No. 2 organization was termed in our literature the legal branch of the Communist party. It was the legal political party in which Communist members were supposed to belong. Up to the time of the Bridgman convention there existed an underground party, known as No. 1, and an open party known as No. 2, — sometimes referred to as the illegal party and the legal party; but the official name was the underground party and the open party.
“Q. And the underground party was supposed to have controlled the management of the open party, was it not?
“A. Through its membership in the open party, the members in the open party were to carry out the policies of the Communist party. * * * Some of the officers of the underground party were officers also in the open party. This open party or legal party, and known as the Workers’ party, came into existence on December 25, 1921. Before then we had some directions from Moscow in regard to the organizing of some open work. The Communist International sent instructions, signed by Bucharin, Kusinin and Radek, supporting the central executive committee in its effort to organize open work. A member of the central executive committee — Katterfeld—went to Russia, and came back with recommendations upholding the central executive committee’s plan to organize a legal political party in this country.”
These instructions were found in the barrels at the Bridgman convention and introduced by the prosecution, and the certificate attached thereto discloses that such instructions were “excerpts from the minutes of the presidium to the executive committee of the Communist International, held November 19, 1921.”
The Workers’ party was launched at a convention on December 25, 1921, and the call therefor had been issued before instructions were received from Russia. The written instructions did not reach this country in time for that convention, but a cablegram stating: “We uphold the decision of the central executive committee,” was received before the Workers’ convention.
Mr. Lovestone further testified:
“The central executive committee of the Communist Party of America had decided to engage in some open or legal activities. We decided upon the formation of what was known as the No. 2 organization, which was to be an open expression of the underground party. * * * It was the open party, a party through which open activities of Communists were carried on in this country.
“Q. The Workers’ party or Number Two organization was in all respects a Communist organization, was it not?
“A. Completely. * * *
“Q. And any member of the Communist party proper, Number One, it was their duty to join Number Two, was it not?
“A. Correct.”
This witness presented a financial statement at the Bridgman convention showing that the Communist party spent, from July, 1921, to July 31, 1922, $185,715.09 for its activities.'
Defendant testified that the Bridgman convention opened August 17th, and he arrived there on August 15th. He also testified:
“I have been a paid employee of the Communist party and of the Workers’ party — of the Communist party for about a year, and of the Workers’ party for a year. I have been given for my work as executive secretary of the Workers’ party, $40 a week; in the Communist party, in 1919, $45.”
Defendant wrote and published in The Communist, October, 1921, an article with reference to the Soviets in Finland, in which, among other things, he said:
“The question ‘Soviet or Parliament?’ is not a question of distant theoretical importance. The advocacy of the Soviet form of organization as the organ of workers’ struggle fór power and of the proletarian state includes the acceptance of extra-parliamentary means of achieving power. It means the acceptance of the principle that the existing capitalist government will be overthrown through the mass power of the workers. And this includes the use of armed force.”
Defendant was acting under orders from Moscow. He was pledged to obey such orders and, under this record, it taxes credulity too far to believe he was endeavoring to bring Communist doctrines and tactics within the law. Such doctrines and tactics, formulated in Russia and promulgated here, are without the law. It is true that some activities within the law were recommended by the Third International, and it is true that defendant urged an open .party to carry on such activities, but his purpose, under orders of the Third International, was to further the ends of the underground or illegal party, and that purpose and such ends center upon the destruction of republican or parliamentary form of government by direct action and criminal force.
We are directed by counsel for defendant to Robert Hunter’s “Violence and the Labor Movement” for a study of the history of radical doctrines, “with special reference to the attitude of various groups or schools of radicals toward violence.” But why go to Hunter instead of the “Communist Manifesto,” by Marx and Engels; “Reflections on Violence,” by Georges Sorel; “The Militant Proletariat,” by Austin Lewis, and “Syndicalism,” by J. H. Harley, and many other late radical publications we might mention? But why go to any of these with the program and constitution of the Communist Party of America, the statutes and theses of the Third International, The Communist, the official organ of the party, direct instructions and guidance from Russia and other expositions of purposes found at the convention and appearing in this record ?
Was the Communist Party of America, at the time defendant assembled with its delegates in the national convention at Bridgman, a group, society or assemblage of persons formed to teach or advocate the doctrines of criminal syndicalism? This record shows that the Communists with whom defendant assembled are not content to await the realization of their hopes through the processes of evolution, but intend to accelerate the accomplishment of their aims by revolution. They spurn the ballot and appeal to direct force. They are under resolve to destroy by force and arms the existing government, National and State, and the supporters thereof who possess the manhood of resistance. They consider their present rights and liberties as mere license for working the destruction of existing society. They have pledged allegiance to the Third International, a foreign body inimical to a free people, and are carrying out its commands in our midst. Their doctrines teach ultimate insurrection and civil war with present criminal activities leading up thereto. Their tactics involve the cowardly purpose of injuring until they can destroy. They plan the looting of the Nation and invoke its laws to protect them while instilling their doctrines. The freebooters and pirates of old were small fry compared with their modem brethren. Their promises of the future are empty, so long as the Constitution of the United States stands. The Constitution guarantees to each State a republican form of government with safety of persons and protection of property. They promise a dictatorship of the proletariat with transition to communism, and expropriation of property. Their hope is to find opportunity to commit crime; their creed is that of terrorism and violence; they are the red thread of Russian Communism and their avowed purpose is the destruction of the government of the United States by force.
.We will point out from the record the evidence conclusively establishing this. The program and constitution of the Communist Party of America, adopted at the joint unity convention of the United Communist and the Communist parties in May, 1921, read by defendant, printed and distributed by the executive committee of the Communist Party of America, of which committee defendant was a member, and found in the archives or safety deposit barrels at the convention, constitutes competent evidence upon the question of whether the assemblage of persons at Bridgman was formed to teach or advocate crime, sabotage, violence or other unlawful means of terrorism, as a means of accomplishing industrial or political reform, even though distribution thereof was discontinued in October, 1921.
The program declares:
“The World War marks an epoch — the epoch of the collapse of capitalism and the beginning of the proletarian revolution. * * * The old capitalist order is in decay. It can prevail no longer. The final outcome of the capitalist system of production is chaos. Only the great producing class, the working class, can bring order out of this chaos. The working class must destroy the capitalist state, root and branch. The working class must establish a dictatorship of the proletariat, based upon Soviet power in order to crush both the resistance of capitalist counter-revolution at home and imperialist onslaught from without. * * * As Socialist workers begin to awaken to the treacherous character of the so-called Socialist parties, and to desert them, the leaders of those parties made desperate efforts to hold their following. These efforts sometimes take the form of indorsing the Communist International ‘with reservations.’ Another device is to indorse Soviets in Russia ‘but not here.’ , Another is to pose as ‘defending the Russian Soviet Republic from invasion by foreign imperialists.’ All these are evasions of revolutionary duty. The Communist International is an organization for waging class warfare for the liberation of the working class; there can be no reservations in indorsement and affiliation with it. Loyalty ‘with reservations’ is treachery. Indorsement and defense of Soviets in Russia, with failure to advocate the Soviet form of proletarian dictatorship in the United States is hypocrisy.” * *■
The Communist Party of America, section of the Communist International, defines the aims and proc- ' esses of the proletarian revolution as follows:
“ ‘Between capitalist and Communist society there lies a period of revolutionary transformation from the former to the latter. A state of political transition corresponds to this period, and the state during this period can be no other than the revolutionary dictatorship of the proletariat’ (Marx). *• * *
“Under pressure of the economic chaos, and led by the Communist party, the proletariat forms its organs of working class power entirely separate and distinct from the bourgeois State. These organs are the Workers’ Soviets (councils) which arise at the moment of the revolutionary outbreak and attain a dominant position, during the course of the revolution. By the use of force, the proletariat destroys the machinery of the bourgeois State and establishes the proletarian dictatorship based on Soviet power. * * *
“The proletarian revolution is a long process.. It begins with the destruction of the capitalist state and the establishment of the dictatorship of the proletariat, and ends only with the complete transformation of the capitalist system, into the Communist society. * * *
“The revolutionary epoch upon which the world is now entered forces the proletariat to resort to militant methods — mass action, leading to direct collision with the bourgeois state. Mass action culminates in armed insurrection and civil war. * * * The Communist party will keep in the foreground the idea of the necessity of violent revolution for the destruction of the capitalist state and the establishment of the dictatorship of the proletariat based on Soviet power. The Communist party will systematically and persistently propagate the idea of the inevitability and the necessity for violent revolution, and will prepare the workers for armed insurrection as the only means of overthrowing the capitalist state. * * *
“The American bourgeois State, was quick to recognize the Communist parties in America as its historic and deadly enemies. It employed all its power in a vicious onslaught against them. Being outlawed, the Communist parties re-organized as underground, illegal parties. Thus, for the present, the Communist Party of America is prevented from participating in the elections under its own name. * * *
“The Communist party will work within the industrial unions of the I. W. W. where these are established and function as mass organizations of the workers; and will support them especially during strikes and mass movements. The Communist party regards the workers in the ranks of the I. W. W. as comrades in the class war. At the same time, the Communist party rejects the absurd theory, entertained by the I. W. W., that the revolution can be accomplished by the direct seizure of industry without first overthrowing the capitalist state. * * *
“The Communist party will fully co-operate with the Red Labor Union International (with headquarters at Moscow), and any committees or bureaus it may establish to carry on its work in the American labor movement, in keeping with the decisions of the Communist International. * * * The Communist International is the concentrated will of the world revolutionary proletariat. Its mission is to organize a working class of the world for the overthrow of the capitalist system and the establishment of Communism.
“The Communist International is a fighting body and assumes the task of combining the revolutionary forces of every country. In order to overthrow the international bourgeois and to create an International Soviet Republic as a transition stage to the Communist Society, the Communist International will use all means at its disposal, including force of arms. * * * The Communist International represents a single universal Communist party, of which the parties of the various countries are sections. * * * The Communist International offers a program both immediate and ultimate in scope. The old order is in decay. The workers must prepare for the proletarian revolution and the Communist reconstruction of society.”
The constitution of the party declares:
“The name of this organization shall be The Communist Party of America, Section of the Communist International. * * * Its purpose is to educate, direct and lead the working class of America for the conquest of political power; to destroy the bourgeois state machinery; to establish the dictatorship of the proletariat in the form of Soviet power; to abolish the capitalist system and to introduce the Communist society. * * *
“Every person who accepts the principles and tactics of the Communist party and of the Communist International, and agrees to submit to the party discipline and engage actively in its work, shall be eligible for membership, provided he is not a member or supporter of any other political organization. * * * The Communist Party of America is an underground, illegal organization. It is highly centralized with the convention as its supreme body, and the central ex ecutive committee acting as such between conventions. * * * The convention is the supreme body of the party, and shall be called by the central executive committee at least once a year. * * The number of delegates shall be determined by the central executive committee according to the circumstances. * * _ * Delegates to the National convention shall be paid railroad expenses and the same wages as party officials. Between conventions the central executive committee shall be the supreme body of the party and shall direct all the party’s activities. * * * All central executive committee members shall devote all their time to the work of the party. * * * The central executive committee shall elect delegates to the international congresses and the Communist Party of America members of the executive committee of the Communist International. * * * All members and party units shall maintain and enforce strict party discipline. * * *
“The following offenses are breaches of party discipline :
“(1) Violation of the fundamental principles of the program and the constitution of the party. * * *
“(4) Knowingly and unnecessarily to endanger the underground work of the party. * * *
“The central executive committee shall publish the official underground organ of the party, which shall be issued at least once a month.”
Now for the Russian end or head of the Communist Party of America. The Theses and Statutes of the Communist International (Third International) adopted at Moscow in 1920, and issued in the English language by the central executive committee of the Communist Party of America, declare the purposes and tactics of all Communists who adhere to the Third International:
“In order to overthrow the International bourgeoisie and to create an International Soviet Republic as a transition stage to the complete abolition of the state, the Communist International will use all means at its disposal, including force of arms. * * * The Communist International fully and unreservedly upholds the gains of the great proletarian revolution in Russia, the first victorious socialist revolution in the world’s history, and calls upon all workers to follow the same road. The Communist International makes it its duty to support by all the power at its disposal every Soviet Republic wherever it may be formed.
“The Communist International is aware that for the purpose of the speedy achievement of victory the International Association of Workers which is struggling for the abolition of capitalism and the establishment of Communism should possess a firm and centralized organization. To all intents and purposes the Communist International should represent an universal Communist party, of which the parties operating in every country form individual sections. The apparatus of the Communist International is organized to secure to the toilers of every country the possibility at any given moment to obtain the maximum of aid from the organized workers of the other countries. For this purpose the Communist International affirms the following items of its statute:
“Sec. 1. The new International Association of Workers is established for the purpose of organizing common activity of the workers of various countries who are striving toward a single aim; the overthrow of capitalism, the establishment of the dictatorship of the proletariat and the International Soviet Republic for the complete abolition of classes and the realization of socialism — this first step to Communist Society. * * *
“Sec. 3. All the parties and organizations comprising the Communist International bear the name of the Communist party of the given country (section of the Communist International).
“Sec. 4. The World Congress of all parties and organizations which form part of the Communist International is the supreme organ of this International. The World Congress as a rule convenes not less than once a year. The World Congress confirms the programs of the various parties comprising the Communist International. The World Congress discusses and decides the more important questions of program and tactics, which are connected with the activity of the Communist International. * * *
“Sec. 9. The executive committee is the leading organ of the Communist International during the conventions ; * * * the executive committee makes the necessary appeals on behalf of the Communist International, and issues instructions obligatory to all the parties and organizations which form part of the Communist International. * * *
“Sec. 12. The general state of things in the whole of Europe and of America makes necessary for the Communists of the whole world an obligatory formation of illegal Communist organizations along with those existing legally. The executive committee shall be bound to see that this shall be carried out everywhere. * * *
“Sec. 17. In the event of a member of the Communist International coming to another country he is to have the fraternal support of the local members of the Third International.”
In the Theses it is stated:
“The class struggle in almost every country of Europe and America is entering a phase of civil war. Under such conditions the Communist can have no confidence in bourgeois laws. They should create everywhere a parallel illegal apparatus, which at the decisive moment should be of assistance to the party to do its duty toward the revolution. In every country where, in consequence of martial law, or of other exceptional laws, the Communists are unable to carry on their work legally, a combination of legal and illegal work is absolutely necessáry. * * * Each party desirous of joining the Communist International should bear the following name: ‘Communist party of such and such a country, section of the Third Communist International.’ * * * In countries where the power is in the hands of the bourgeoisie or the counterrevolutionary social democrats, the Communist party must learn to unite systematically legal with illegal work; but all legal work must be carried on under the practical control of the illegal party. The parliamentary groups of Communists, both in the central as well as in the local government institutions, must be fully and absolutely subject to the Communist party in general, irrespective of whether the. party on the whole be a legal or an illegal organization at the moment.”
We adopt the language of the supreme court of Illinois in People v. Lloyd, supra, in characterizing the declared purposes of the Communist Party of America.
“If this does not mean the overthrow of the existing form of government in this State and Nation, we do not understand the English language. The idea of property is not a modern idea, nor an idea established by reason. It arises out of the combative instincts of the species. The dog fights for his bone, the savage for his hunting grounds, and civilized man for his home. The form of government under which we live, and which we have found good, and which all the civilized world is emulating, recognizes the right of property in the individual, and guarantees the protection of that right. Plaintiffs in error advocate the overthrow of this government, and the substitution of class rule. They repudiate the idea of a government ‘of the people, by the people, and for the people.’ Interpreting their language literally, they propose to organize all who have no property, and by sheer force of numbers to seize the property from those who have it. They preach class hatred and class war. After we tear away the smoke screen of words, they advocate plain robbery. Men of common understanding are supposed to know the natural consequences of their acts, and plaintiffs in error must know that their program can only be carried out by killing those who resist. The plain, unvarnished truth is that the plaintiffs in error have conspired to rob and to murder. They propose a reign of terror by a self-appointed dictatorship, responsible to no one, and which holds its power by so managing affairs that it will satisfy the mob. If such a program were advocated by a few men in any community, they would be promptly arrested and punished, and no one would have the temerity to defend their acts. But plaintiffs in error seem to take the position that because their band has become so large and the nefarious doctrines they advocate have assumed world-wide proportions, it must be held to be an honest effort to reform a bad system of government.”
See, also, Skeffington v. Katzeff, 277 Fed. 129.
Defendant insists the court was in error in per mitting the prosecution to read to the jury excerpts from an article published in The Communist of July, 1922, on “The Blight of Purity” written by Robert Minor, a member of the central executive committee of the Communist party, under the name of James Ballister. It should be borne in mind that The Communist is the official organ of the party and no articles are published therein except they pass the censorship established by the party officials. The article is too long to quote in full. It urges less talk and more action. He said:
“Who is leading the proletariat in its advance towards revolutionary action — the men who distribute ‘armed leaflets’ in a sleepy Brooklyn street car strike, or the men who distribute armed coal diggers in the strategic points of West Virginia.”
We find no error in the admission' of the excerpts from the article. The Theses and Resolutions, adopted at the third world congress of the Communist International, was found in the barrels and the portion thereof relating to “The Forms and Means of Direct Action” received in evidence. Defendant insists the court was in error. We quote but a portion of what was read:
“In the course of the past year, during which we saw the ever increasing arrogance of the capitalist offensive against the workers, we observed that the bourgeoisie in all countries, not satisfied with the normal activity of its State organs, created legal and semi-legal though State-protected White Guard organizations, which played a decisive part in every big economic or industrial conflict. * * * The organizations of strike-breakers and cut-throats which are an oldtime embellishment of American democracy, have now acquired a leading organ in the so-called ‘American Legion/ made up of the flotsam and jetsam of the war. * *
/‘The Communist party must in this manner convince the widest circles of the proletariat by word and deed that every economic or political conflict, given the necessary combination of circumstances, may develop into civil war, in the course of which it will become the task of the proletariat to conquer the power of the State.”
Loyalty to the principles of the Constitution of the United States and' support of government thereunder are anathema to Communists. The government of the United States and of this State are not things apart from the people. The Theses mentioned was an official pronouncement of the doctrines and tactics of Communism, and was admissible.
Defendant claims great hurt because Bucharin’s epexegesis to Communists, pointing out the necessity of the destruction of religion, was read to the jury and insists it bore no relation to the charge of criminal syndicalism. While no law can be made in this country respecting religion, and none prohibiting the free exercise thereof, the great moral force of religion in its relation to good government and the happiness of mankind, as expressed in the great Ordinance of 1787, for the government of the Northwest Territory, has ever been recognized and is clearly apparent to Communists; for this force stands as a bulwark against their machinations and nefarious schemes. Therefore, they attack religion, with resolve to absolutely destroy the same, because of its support of the State.
The influence of Christianity in diffusing moral conceptions of free contract, individual property and testamentary succession is well stated in Main’s “Early History of Institutions.”
But it is said that in People v. Flanagan (Cal. App.), 223 Pac. 1014, it was held the admission of such evidence was error because it has no relation to the crime of criminal syndicalism. We cannot accept the view there expressed as it is too superficial in comprehension of the doctrines, purposes and tactics of the Communist Party of America.
Now, who is Bucharin, and what relation does he bear to Communism in the United States, and is he one to speak ex-cathedra, or is his emanation to be treated as the mouthing of a crack-brained nonentity? In the command sent from Russia, relative to the organization of an open party to aid in the work of the illegal party in America, Bucharin not only spoke as one in authority, as an officer of the Communist International, but his word was accepted by Communists in the United States as the last word on the subject, and the central executive committee of the Communist Party of America, published in The Communist, the official organ, an appeal to Communists to obey the decision of “Comrade Bucharin.” This Theses by Bucharin is a Communist class book. Bucharin, standing amid the ruins wrought by Communist ascendancy in Russia, announced no more to the Communists of the world, with reference to religion, than Communists comprehend. He said in part:
“It is the task of the party to impress firmly upon the minds of the workers, even upon the most backward, that religion has been in the pasti and still is today one of the most powerful means at the disposal of the oppressors for the maintenance of inequality, exploitation, and slavish obedience on the part of the toilers. Many weak-kneed Communists reason as follows: ‘Religion does not prevent my being a Communist. I believe both in God and in Communism. My faith in God does not hinder me from fighting for the cause of the proletarian revolution.’ This train of thought is radically false. Religion and Communism are incompatible, both theoretically and practically.”
There is nothing new in this. It but follows the screed of Old John Toland of the 17th century, August Bebel, Belfort Bax, “The Religion of Social Democracy” by Joseph Dietzgen, and others of like ilk. Bucharin uttered but a truism, for all morality, cultivated and instinctive, is at war with the declared doctrines and tactics of this Communist party. While men recognize and pay moral heed to the difference between right and wrong, the State is safe, law, and not looters and pirates, will prevail and security of persons and property continue. Bucharin let a Communist cat out of the bag. The evidence was admissible.
It is also claimed the court was in error in admitting excerpts from am article published in The Communist for February, 1922, entitled: “Our Prisoners” by Roger Ganly, and found in the convention barrels at Bridgman. This article arraigned the government for prosecuting wartime offenders, and then drifted into the following exposition of the Communist party belief and purposes:
“Communists are not pacifists. They oppose the pacifism that meekly submits to the will of the masters of society. They are militants. They believe in war — the class war. They oppose the militarism of capitalism which pits worker against worker in fratricidal strife, but they say that the capitalist governments can only be overthrown by the same kind of armed force that is now used by the ruling class to keep the working class in subjection. They believe in establishing the dictatorship of the proletariat by force and maintaining it by force during the transition period from capitalism to socialism.
“That is a dangerous belief — dangerous in the eyes of the capitalist state because it assures victory for the workers. No silly reliance on the ballot as the effective weapon for the capture of political power; no reliance on the all-sufficiency of the general strike, the real Communist avails himself of every weapon to strike a blow at capitalism, but with the firm conviction that the final onslaught on the enemy’s stronghold will be made not with ballots but with bullets; not by folding arms in a general refusal to work but by a mass attack on the part of labor, led by experienced Communists inured to the idea of sacrifice and trained to battle by constant skirmishes with the enemy in the everyday struggle of the workers.”
This contribution, appearing in the official organ of the party and disseminated to the membership,, had the ear-marks of official sanction sufficient to take it to the jury on the issue of the doctrines and tactics of the party. It was mustered into the service by party officials in command of the official organ and must answer the roll call.
Defendant seems to think he is but following the historical role in maintaining, in the minds of his associates, the idea of social cleavage and destruction of the State. Pie would have us leave the level of observable facts and indulge in reflections having nothing to do with anything in the immediate future. We do not accept Ms activity as a thing apart from present intentions for he actively participated in the assembly bent on illegal and criminal assault by force upon the very government under which it met. Has the Communist Party of America expressed its doctrines and tactics, so as to be perfectly clear to Communists, and yet in a manner to be represented in a court of justice as innocuous to the point of being inane and a mere exercise in rhetoric and sophistry to fool themselves?
The Communists say they are but prophets of disorder, violence and destruction eventually to come. In the sweet bye and bye, they say, resistance to their schedule will lead to the shedding of blood but the guilt will rest upon those who fight to maintain government under the Constitution of the United States. But they are militant prophets, to say the least, with present activities toward fulfillment of what they prophesy. Prophecy of violence to come does not mantle present militant organization and criminal activities to hurry its advent.
Quaint Old Thomas Fuller, 275 years ago, hit off defendant’s plea of present innocent advocacy of eventual force and violence when he said:
“It is dangerous to gather flowers that grow on the banks of the pit of hell, for fear of falling in;.yea, they which play with the devil's rattles will be brought by degrees to wield his sword; and from making of sport, they come to doing of mischief.”
The Communist literature received in evidence was all admissible on the issue of whether the Communist Party of America was formed to teach or advocate the doctrines of criminal syndicalism. People v. Steelik, supra; State v. Hennessy, supra; State v. Hestings, 115 Wash. 19 (196 Pac. 13); State v. Hemhelter, 115 Wash. 208 (196 Pac. 581). It is said there is no charge that the Communist party was formed in Michigan. Such a charge was not necessary. The national convention of the Communist Party of America was held in Michigan. Its convention activities were carried on within this jurisdiction, and the charge laid against defendant was committed in this State. If the party was formed in some other State, and there may teach or advocate destruction of republican form of government with impunity, an asinine move was made in assembling in this State. Defendant, while within this State, was subject to the laws of the State. Counsel seem to confuse the charge here laid, with other provisions of the statute. If the Communist Party of America was formed to teach or advocate criminal syndicalism it makes no difference, under this charge, whether advocacy of such teachings was carried to the people of this State or not through the convention at Bridgman.
It is also said there has been no overt act by the Communist party committed within this State, and no showing of intent to commit any in the immediate future, and it is claimed it is without the power of the State to make it a felony to join an assembly formed to teach or advocate criminal syndicalism unless it is shown that activities are carried out within the State. This statute does not make criminality dependent upon the commission of an overt act. It reaches those who advocate or teach the commission of crime as a means to accomplish an end, and those who, by choice, assemble with them. An overt act along the lines of such advocacy or teaching would constitute an entirely different crime punishable now by other laws of the State.
As said in State v. Laundy, 103 Or. 443 (204 Pac. 958, 206 Pac. 290):
“If it is within the power of the legislature to' declare that a given act, when done, constitutes a crime, then it is likewise within the power of the legislature to declare that to advocate the doing of such act is a crime; for, if public policy requires the punishment of him who does an act, it likewise may require the punishment of him who incites the doing of such act, whether the act is actually done or not. State v. Quinlan, 86 N. J. Law, 120 (91 Atl. 111).”
And this applies with equal force to one who voluntarily joins an assembly formed to teach or advocate criminal syndicalism.
The power vested in, and the duty resting upon this State, under its republican form of government guaranteed by the Constitution of the United States, is well stated in People v. Lloyd, supra:
“The citizens of this State are citizens of the United States, and the citizens of the United States residing within the borders of this State are citizens of this State. Each citizen owes a duty to these two separate sovereignties. The State is a part of the Nation, and owes a duty to the Nation to support the efforts of the National government to secure the safety and protect the rights of its citizens, and to preserve, maintain, and enforce sovereign rights of the Nation against public menace, and to that end the State may require its citizens to refrain from any act which will interfere with or impede the National government in effectively defending itself against such public enemies. * * *
“There is embodied in the Constitution of the United States and the Constitution of each of the 48 States a bill (or declaration) of rights, guaranteeing to every citizen, among other things, the right of private ownership of property, and the right of each individual to use and enjoy his property. * * * The advocacy within in any one of the several States to overthrow the representative form of government of the United States, or of the several States, is therefore an assault upon the established government of each and every one of the 49 separate sovereignties, and it would be strange indeed if any one of these sovereignties did not have the right to protect itself against destruction. The overthrow of the National government would be a direct blow at the representative form of government now secured to each of the several States, and the overthrow of the government of any one of the several States would be an indirect assault upon the government of each of the other 47 States.
“The State of Illinois is therefore interested in the preservation of our National government and the government of each and every one of her sister States, and she, without doubt, has the right under the police power inherent in every government to enact laws for the preservation and protection of her government. * * *
“Manifestly the legislature has authority to forbid the advocacy of a doctrine designed and intended to overthrow the government, without waiting until there is a present and imminent danger of the success of the plan advocated. If the State were compelled to wait until the apprehended danger became certain, then its right to protect itself would come into being simultaneously with the overthrow of the government, when there would be neither prosecuting officers nor courts for the enforcement of the law. The act under consideration makes the advocacy of the overthrow of the government a felony, and provides for the punishment of the advocate, and so it is not necessary that there be a real or actual effort to carry out the program that he advocates.”
See, also, People v. Gitlow, 195 App. Div. 773 (187 N. Y. Supp. 783); affirmed 234 N. Y. 132 (136 N. E. 317); Gilbert v. Minnesota, 254 U. S. 326 (41 Sup. Ct. 125).
What we have said covers all questions meriting discussion, disposes of defendant’s requests to charge and shows that defendant has no cause to complain of the instructions given the jury.
We find no reversible error in any of the points presented, and the conviction is affirmed and the circuit court advised to proceed to judgment.
McDonald, Sharpe, Steere, and Fellows, JJ., concurred with Wiest, J.
Bird and Moore, JJ., concurred in the result. Clark, C. J., did not sit.
Per Curiam.
Writ of error to review judgment on conviction. All questions presented by the writ of error have been determined by our opinion in this case on exceptions before sentence (ante, 315). We adhere to that opinion.
Conviction and judgment affirmed. | [
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McDonald, J.
The defendant was convicted on an information charging a wilful and felonious assault upon one Gabriel Veldhouse, with a dangerous weapon, to wit, a black-jack, without intending to kill and murder or to do great bodily harm less than the crime of murder. Veldhouse was a milkman. About two o’clock in the morning of October 11, 1923, he was delivering bottled milk to customers in an upstairs flat near Christie’s hardware store in the city of Muskegon. A crowd of young men, amongst whom was the' defendant, was loitering about the street. He claims that when he came downstairs these boys had taken some milk from his wagon, and when he spoke to them about it they crowded around him and called him some bad names; that he struck one of them, whereupon a general fight ensued; and that during the fight the defendant struck him from behind on the head with a black-jack. At the conclusion of the proofs defendant’s counsel moved for a directed verdict as to the main count of the information on the ground that there was no testimony showing that the defendant struck Veldhouse with a black-jack. The court denied the motion. The case is here on exceptions before sentence. The record presents the following questions:
Was it error for the court to permit the testimony of Glenn Gilson, taken on the examination in justice’s court, to be read to the jury? Gilson was sworn as a witness for the people on the examination in justice’s court and was fully cross-examined by counsel for the defendant. In the showing made by the prosecuting attorney as to his diligence in securing the attendance of Gilson at this trial, it appeared that the witness had enlisted in the army and was not in the State. Under the showing made it was not error to permit the stenographer to read into the record the testimony of the 'witness taken on the examination. The question is ruled by People v. Harvey, 220 Mich. 226, and People v. Schepps, 217 Mich. 406.
The second question presented relates to the refusal of the court to direct a verdict on the main count in the information on the ground that the testimony did not show a greater offense than assault and battery. The witness Gilson testified that during the fight he saw the defendant with a black-jack in his hand; that he asked him not to use it; that afterwards he saw defendant strike Veldhouse. There was also testimony that others in the crowd saw defendant with the black-jack and called to him not to hit Veldhouse with it. It is true that there is no evidence that any one saw him strike with the black-jack, but the circumstances strongly indicate that he did. At least they were sufficient to make the question one for the jury. In denying the motion to direct a verdict there was no error.
The remaining assignments of error relate to the charge of the court. It is first urged that the court erred in failing to charge the jury as requested, that a black-jack is not in itself a dangerous or deadly weapon. The court correctly instructed the jury as to what would constitute a dangerous weapon and left the question to them. In this there was no error.
The fourth assignment of error relates to the refusal of the court to submit to the jury the following request:
“I further charge you, that the policy of our law deems it better that many guilty persons escape rather than one innocent person should be convicted and punished, so that, unless the jury, after a careful and thorough consideration of all the evidence in the ease, can say and feel that every material allegation in the information is proved beyond a reasonable doubt, the jury should find the defendant not guilty.”
Except as to the first part of this request it properly stated the law and should have been given, but we think the refusal to do so was not error in view of the fact that in the general charge the court covered it when he said that the burden was on the people to prove every essential part of the information “beyond a reasonable doubt and to a moral certainty.”
Error is assigned on the refusal of the court to give the following request:
“I further charge you that the complaining witness had no right to take the law into his own hands and commit an assault and battery upon the defendant or upon the men with the defendant, and if you find that such an assault was committed, you will also find that the same was wholly unwarranted upon his part.”
While this request correctly states the law there is a very good reason why it should not have been given in the form in which it was presented. It assumes that the complaining witness first assaulted the defendant. There is no evidence to justify any such an assumption. There is no evidence that defendant was hit at any time. Of the boys who were engaged in the fight, the only one who testified in the case was Thomas Stefeni, who says that the defendant was not there when the fight began, that he came up when it was about two-thirds over and that he (Stefeni) was the man on whom the complaining witness began the assault. In view of these facts the defendant was not entitled to the instruction requested. However, the court sufficiently covered it in his general charge.
The remaining assignments of error relate to the following portion of the court’s charge:
“Now, in that connection, in my own language, I charge you that when a man is assaulted, he must not go to excess to defend himself unless the circumstances so appear to him that it is necessary to save his own life.”
This is not a proper statement of the law of self-defense, but the court immediately followed with a correct instruction as follows:
“The use of this black-jack by this respondent could not be justified in any other way, except to defend himself, when it appeared to him that his life was in danger or he was in danger of great bodily harm.”
We cannot assume that the jury followed the erroneous instruction because there were no facts to which either of the instructions could be applied. Self-defense was not in the case. No one claims that the complaining witness assaulted or threatened to assault the defendant. There Is no evidence that they were fighting. The people’s evidence tended to show that the defendant struck with the black-jack from behind the complaining witness, and hit him in the back of the head while he was engaged with the boys in front. The defendant was not sworn and only one of the other boys was called to testify in his behalf. He says that defendant was not in the fight at all; that he came up when it was nearly over, but struck no blows. In the absence of any evidence tending to show that the defendant was assaulted and that he struck with a black-jack in self-defense, there was no occasion for the instructions complained of. The defendant was not entitled to them and, so, under the circumstances, the jury could not have been misled to his prejudice. We find no error in the record.
The conviction is therefore affirmed. The circuit court will proceed to judgment.
Clark, C. J., and Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Sharpe, J.
Defendant reviews on exceptions before sentence his conviction of the crime of assault with intent to kill and murder one Mary Frelick. Dissension and strife between defendant and his wife, Bernice, caused their separation about April 1, 1922. His suspicion that his wife was unduly intimate with a man named Andrew Mazurek caused him to spy upon her movements. On the night of April 9th, he saw her and Mazurek and her mother, Mrs. Frelick, and a neighbor, Mrs. Dombrowski, walking from the latter’s home to the apartment occupied by his wife and her mother. Mrs. Frelick stopped at the gate a few moments to talk with Mrs. Dombrowski. The others went upstairs. When Mrs. Frelick followed and had entered the living room, defendant, who had gone up the back stairs, burst into the room and began shooting. He killed his wife and seriously injured both Mrs. Frelick and Mazurek. He was tried on the charge of murdering his wife, and acquitted. The charge on which he was here tried and convicted was then preferred against him. The errors assigned will be considered in the order discussed by counsel.
Objection was made to a witness detailing the nature of the injuries sustained by Mazurek. What occurred at the time of the shooting was a part of the res gestse and properly admitted. The jury were carefully instructed that they were not to be influenced by the fact that Mazurek was shot or that defendant had a feeling of ill-will towards him. There was no reversible error in admitting this testimony.
Error is assigned upon the closing argument of counsel for the prosecution. That which was said was in most part apparently in answer to the argument of defendant’s counsel. The shooting of the three occurred at the same time and place, and counsel had the right to place before the jury his claim of the fair inference to be drawn from what there occurred as to the intent with which the several shots were fired, particularly in view of the testimony of defendant that “the mother was really the cause of my trouble with Bernice.”
The following request was preferred:
“I charge you that if from the evidence you find that the bullet that struck the complaining witness, Mary Frelick, was fired or meant to be fired at respondent’s wife, Bernice Cygan, to acquit him, the respondent.”
The charge as given so fully and fairly covered this request, as appears from the following quotations from it, that error may not be predicated on its refusal :
“The prosecution is bound to prove, not only the assault, but the intent as well; not only that the defendant struck the complaining witness, but must show beyond a reasonable doubt that he so struck her fully intending to murder her.”
“The fact that defendant committed the assault as claimed by the prosecution does not in any way raise a presumption that he intended to murder, and unless you are morally satisfied beyond a reasonable doubt that he fully intended to murder the complaining witness, you should acquit him.”
The other assignments discussed involve the claim of defendant that he was acquitted of the murder of his wife “on the grounds of temporary insanity,”, and, having been found to be so at that time, the prosecution is estopped from urging that he was not so on this trial. The record in People v. Lincourt, 221 Mich. 674, presented similar facts, but the point' here relied on was not there urged or considered.
The testimony introduced in the murder case is not included in the record. The charge of the court in that case appears in full. It covered very fully all of the elements which the people must establish to have justified the defendant’s conviction. At the close of the people’s testimony in this case, counsel for the prosecution at the request of defendant’s counsel made a statement relative to the defense of insanity having been raised in the murder case. He said:
“It appears in this case that upon the former trial the circuit court for the county of Wayne before Judge Arthur Webster this defendant was tried'on the charge of murder; that was a general plea entered of not guilty; that there was interposed in the trial of the cause the question of the sanity of the defendant, Peter Cygan, who is on trial in this case, and that the subject-matter covered in this case is identical with the subject-matter in the case of people against Cygan in the murder trial held before Judge Arthur Webster.”
We are unable to understand what counsel meant by the “subject-matter.” At that time no proof had been offered as to the state of defendant’s mind at the time the shots were fired. It can but refer in a general way to the proofs submitted by the prosecution. In the people’s brief it is said: “There is no identity of subject-matter, neither is there identity of parties.” The subject-matter, that which was being litigated in the other case, was the death of the wife, and whether it was caused by the defendant under such circumstances as to render him guilty of her murder. That here presented is an assault made by him upon his mother-in-law with intent to kill and murder her. It does appear, however, that the defense of temporary insanity was raised in that case, and that defendant was acquitted. The verdict was a general one. The fact that the shots were fired in quick succession and that some of them struck and killed defendant’s wife and others struck and injured the complaining witness does not render his acquittal on the charge of murdering his wife a bar to this prosecution. It must here appear, as stated by the trial court, that the shots which injured the complaining witness were fired with the intent to kill and murder her. A somewhat similar state of facts was presented in People v. Ochotski, 115 Mich. 601, and it was there pointed out that “it was not the same blow, even, which caused the injury to the two, but different blows. It was the same transaction, but not the same volition.”
An examination of the record and briefs in Hotema v. United States, 186 U. S. 413 (22 Sup. Ct. 895), will show that identically the same question was there presented. By special plea to the indictment the defendant averred that three indictments were filed against him at the same time charging him with the crime of murder of three different persons; that two of them were consolidated and tried together and resulted in a verdict of not guilty; that the only defense offered on such trial was a plea of insanity; he admitted the killing, but affirmed that at the time thereof “he was suffering from such a diseased condition of the brain as that he did not have the mental capacity to commit murder;” that the only issue made in the case was whether he was sane or insane at the time he killed the three persons; that the three persons were charged to have been killed on the same day, but at different places, and “that on said trial every circumstance connected with the killing charged in this case was proved on the other trial.” A demurrer to this plea was sustained, and error alleged thereon. The plea was held to be “wholly without merit.”
The exceptions are overruled and the trial court directed to proceed to sentence.
Clark, C. J., and McDonald, Bird, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Clark, C. J.
An automobile, owned and driven by defendant, collided on a public highway in Wayne county with a bicycle on which plaintiff was riding. Plaintiff was injured, and had judgment. Defendant brings error.
At about 3:30 p. m., on Friday, November 16, 1923, the jury, of both men and women, retired to consider a verdict and—
“at 5:20 p. m. of that day, said jury were recalled into court in the absence of counsel for the defendant, and asked by the court, as follows:
“ ‘Members of the jury, is there any possibility of your agreeing within the next 30 minutes?’ To which a juror replied, ‘We have agreed as to how it should go, but not on the other, and I think it will be several hours before we can agree on that.’
“ ‘The' Court: Some of the members of the jury live out in the country and therefore I am going to exercise the discretion which I have under the law, and permit you to separate and come back Monday morning and continue your deliberations.’
“After which the said jury were allowed to separate and go to their respective homes.
“On said Monday, November 19,1923, at 9:30 a. m., the said jury retired a second time and finally returned into court announcing a verdict in favor of the plaintiff and against the defendant.”
Defendant insists that permitting the jurors thus to separate after the cause had been submitted to them is unwarranted in law, and that Act No. 385, Pub. Acts 1919 (Comp. Laws Supp. 1922, § 12621 [1]), authorizes no such separation, and that for that reason his motion for a new trial ought to have been granted. The statute:
“In courts of record, the court, or the judge thereof, may, after jurors retire to consider their verdict, permit the jurors to separate temporarily whenever in his judgment such a separation is deemed proper: Provided, That in cases where separation of the members of a jury is now forbidden by law, the authority hereby granted shall not extend to permitting separation of the members of the jury of the same sex.”
There now remains but a vestige of the ancient duress, deprivation and confinement to which jurors were subjected as in fact prisoners of the court. This is due to enlightenment and to the greater length of modern trials. See 16 R. C. L. p. 306. In civil cases, jurors have long enjoyed the privilege of separating before the submission of the cause to them, and in murder cases as provided by section 15833, 3 Comp. Laws 1915, and in other criminal cases. People v. Oblaser, 168 Mich. 227.
The coming of women as jurors made necessary, for obvious reasons, less severity, more liberality, respecting the confining of jurors after submission of the cause. Hence the statute above quoted.
The word temporarily means for a limited time, for the time being, not permanently. 8 Words and Phrases, p. 6901. It must be construed in the connection in which it is used. We think- it was intended to authorize the trial judge, in the exercise of his discretion and for a proper reason, to permit the jurors, except as provided by the statute quoted, so to separate for a short time, over night, over the Sabbath, or even over the week-end, as here. On this record we find no abuse of discretion and no showing of prejudice on account of the separating and hence, in this regard, no error. And the question as presented here is ruled squarely against defendant’s contention by Transport Utilitor Sales Co. v. Zwergel, 228 Mich. 132, decided since the case at bar was briefed.
Defendant has assigned error upon the refusal of the following request to charge:
“Under the pleadings and evidence in this case, your verdict must be for the defendant.”
In what were the pleadings faulty? This request did not apprise the court. But passing that, and assuming that it was defendant’s contention that the declaration did not state a cause of action, as he here contends, the declaration must be sustained. It contains superfluous matter, but it does aver, in substance (giving place and date), that while plaintiff was riding a bicycle in a westerly direction, along the north margin of the paved portion of a public highway, in the daytime, and while he was in the exercise of due care, defendant so negligently managed an automobile which he was driving in an easterly direction on the pavement that it ran against the plaintiff, causing him severe injuries, sufficiently particularized; that defendant was, among other acts of negligence averred, negligent in failing to keep a proper lookout for the plaintiff and others lawfully on the highway, and in driving his car, when about to meet plaintiff, on the wrong side of the road and to within two feet of the north margin of the paved way, and claims damages of defendant. It states a case of actionable negligence (Niedzinski v. Coryell, 215 Mich. 498), and there is abundant proof supporting the averments. The court properly left the questions of defendant’s negligence and of plaintiff’s contributory negligence to the jury.
3. Defendant argues:
“What are these hard cement roads constructed for? It is for business and rapid travel. They are not built to enable people to go walking upon nor for boys to * * * ride bicycles thereon.
“Trucks and motor vehicles, for whom such roads were so improved, must of necessity have the right-of-way over people either walking or going on bicycles.” * * *
Plaintiff had a right to ride his bicycle on the pavement, a right which defendant was bound to respect. The rights of the parties to use the road were mutual and co-ordinate. Gibbard v. Cursan, 225 Mich. 311; Lorenz v. Tisdale, 127 App. Div. 433 (111 N. Y. Supp. 173). The law of the road and defendant’s duty toward plaintiff, riding a bicycle, are sufficiently discussed in the Niedzinski Case, supra, and need not be discussed here. See, also, Myers v. Hinds, 110 Mich. 300 (33 L. R. A. 356, 64 Am. St. Rep. 345). The trial judge read to the jury pertinent excerpts from the Niedzinshi Case. We are not impressed that this was prejudicial.
Other questions raised have been considered. No reversible error is found.
Judgment affirmed.
McDonald, Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Bird, J.
Plaintiff took a default judgment in the Wayne circuit court against defendant in a personal injury case. Upwards of six months thereafter defendant filed a motion to vacate the judgment and open the default. The motion was denied and defendant brings the matter to the attention of this court by writ of error.
From the record it appears that suit was commenced by declaration, and a copy thereof was personally served on the defendant. The sheriff’s return of service was filed. There being no appearance by defendant his default was entered, and subsequently a judgment was taken against him for $12,500. After a lapse of six months execution was issued and a levy made upon his property.
We think it fairly appears that the court would have granted defendant’s motion had it not felt that the matter was concluded by the following court rule:
“In all cases where personal service shall have been made upon a defendant, and proceedings taken after default on the strength thereof, his default shall not be set aside unless the application shall be made within six months after such default is regularly filed.” Circuit Court Rule No. 82, § 4.
Defendant makes the point that the foregoing rule does not apply because on the date when the default was entered there was no such proof of service of the declaration as the practice requires, and, therefore, the default was not regularly filed.
It appears that the officer did not indorse his return on a copy of the declaration - before filing, but filled out what is called a “sheriff’s return declaration,” in the following form, and filed it:
“State op Michigan, )
“County of Wayne. J ss*
“I hereby certify and return, that on the 25th day of April, A. D., 1923,1 served the declaration of which the within is a copy, on Fred Reiner, the defendant named in said declaration, by delivering to Fred Reiner, said defendant, at the city of Detroit, in said county of Wayne, a true copy thereof, and of the foregoing rule to plead, the notice relating thereto, together with a true copy of the notice to appear and plead, attached thereto, as hereto attached.”
After the motion was made to set aside the default plaintiff filed an affidavit of the officer in which he states that he attached the return to a copy of the declaration with a “metal paper clip,” but he further testifies that subsequently he examined the files and found that it was not attached, and that the copy of the declaration to which it was attached was missing from the files.
It is said the paper upon which the return was made bears no evidence of pin holes or compression by a metal clip. Nor does it bear any evidence of having been annexed to any other paper. We may say that considering the whole record we are persuaded that on the day of default the return was not annexed to a copy of the declaration. If it were not, the return was irregular, and did not satisfy the requisite prescribed by Rule 32 for entering a default. The affidavit of the officer filed since default explains that the return was attached to a copy of the declaration when filed. That fact would help to cure the irregularity now, but the difficulty is it was not on file on the day of default to explain the irregularity.
If parties are desirous of relying on and getting the benefit of the six-months rule they should see that the default is regularly entered. Unless the files show proper proof of service of process the default is irregular, though service has been actually and lawfully made.
The question of jurisdiction of the court has been discussed by counsel. The question is not one of jurisdiction but one of irregularity. There is no question but defendant was personally and lawfully served, but the difficulty is the files of the court on the day of default lacked the proper proof of it. In view of these considerations we think the six-months rule is not-applicable.
The final order of the trial court will be reversed and one entered therein setting aside the judgment and opening the default on such terms as the trial court may think just and equitable.
No costs will be allowed either party in this court.
Clark, C. J., and McDonald, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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McDonald, J.
In this action the plaintiff is seeking to recover the initial payment on a preliminary agreement for the purchase of the lease and furniture of the Abbottsford apartments on Peterboro avenue, in the city of Detroit. The suit is brought on the theory that the defendants misrepresented the number of apartments in the building and the rentals to be derived therefrom, and that, following negotiations for a modification of its terms, there was a mutual rescission of the contract. A denial of these claims presented the issue tried out in the lower court. At the conclusion of the proofs both parties made motions for a directed verdict. After some discussion the court discharged the jury, saying to counsel:
“The Court: It is understood is it not, now, I do not want to be misled in permitting this jury to go, it is understood that my written findings of fact in this case will be considered as a verdict in this case?
“Mr. Johnson: Yes.
“The Court: Because it is purely on the law?
“Mr. Freeman: Yes, your honor.”
Subsequently the court made findings of the facts and the law to which the plaintiff filed exceptions. A motion for a new trial was denied and judgment was entered for the defendants. In view of the colloquy between the court and counsel as to the effect of his findings on the law and the facts, we will treat the case as one wherein there was a directed verdict in favor of the defendants. As both parties asked for a directed verdict neither can now complain that there was a question of fact for the jury. Kyselka v. Assurance Co., 194 Mich. 430; Germain v. Loud, 189 Mich. 38; City National Bank v. Price’s Estate, 225 Mich. 200.
“If the court’s decision, both parties having requested a directed verdict, is right in law and supported by substantial evidence, the judgment must be affirmed.” Funk v. Guaranty Co., 224 Mich. 95.
Was there substantial evidence to support the judgment? The plaintiff claims that he was induced to sign a preliminary agreement for the purchase of the lease and the furniture of the Abbottsford apartments because of the fraud of the defendants and their agent, Mr. Palmer, in misrepresenting the number of apartments and the amount of the income therefrom, and that in reliance upon their representations he made an initial payment of $500. These claims of fraud are not sustained by the evidence. The defendants represented that there were 44 apartments. One of these was an unfinished bachelor apartment in the basement. Plaintiff inspected this apartment before he made the contract, and knew all about it. He now claims that this apartment should not be included in the 44 and that as a matter of fact there are only 33 apartments. Nothing was concealed from him by the defendants, and no misrepresentations were made as to the number of apartments. He testified on cross-examination:
“When I signed the contract I knew that the bachelor apartment was not complete, but they told me it would be complete, but I knew it was not when I signed this contract.”
As to the alleged misrepresentation in regard to the income from rentals, it appears from the evidence that the building was new; that two apartments in the basement had not been completed; that the building had been rented only for four or five months, that Mr. Palmer made an estimate of the annual income by multiplying the weekly rentals for "the month of August by 52. The result showed a yearly income of $57,200. That this figure was but an estimate of what the' apartment might yield in rentals was well understood by the plaintiff, who was experienced in handling property of this kind. This is shown by his testimony given on cross-examination.
“I knew that this $57,200 represented a year’s rent that the apartment would bring, if rented as it then was, but I knew also that it was a mere estimate of what it might rent for if every apartment was rented and rented at the prices it rented for in August, 1920.”
The court did not err in holding as a matter of law that the defendants were not guilty of fraud, as claimed by the plaintiff.
It was further urged by the plaintiff that he was entitled to a return of the initial payment because there was a mutual rescission of the contract. The evidence is that after the contract of October 27, 1920, the plaintiff made no attempt to perform on his part and his letter to Mr. Palmer of date November 19, 1920, clearly indicates that the reason he did not do so was because he was unable to secure a modification of the contract as to price. He at no time attempted to rescind on the ground of fraud, though he made a claim of fraud with the apparent purpose of securing more favorable terms. On the 4th of December, 1920, the defendants notified him that unless he completed the purchase by Monday, December 6,1920, they would declare it “null and void.” He replied to this notice by letter on December 6th in which he said in part:
“I entered into this matter in good faith, paid my money to you upon representations that were made to me, and still claim today that if such representations are true, I am ready to pull through with the proposition, but I shall hold you to the representations made and request the return of my deposit. I regret that this matter did not go through to the satisfaction of all parties concerned and appreciate your effort in making concessions to try to meet the satisfaction, but there were some things that I did not seem to be able to overcome in the proposition which I regret.”
The plaintiff insists that the two letters constitute a mutual rescission of the contract. It is plainly evident that they do not. To constitute a mutual rescission there must of necessity be a mutual release of further obligations under the contract and a restoration of the status quo. There was nothing of that character in this case. The parties did not agree on anything. The letters merely show that the plaintiff was in default and that the defendants insisted on terminating the contract, unless he performed his part by a specified time, while the plaintiff was insisting that they make good on their representations or return his deposit.
After a careful examination of this record we are convinced that there is substantial evidence to sustain the decision of the circuit judge, and that it is right in law. No other questions require discussion.
The judgment is affirmed, with costs to the defendants.
Bird, Sharpe, Moore, Steere, Fellows, and Wiest, JJ., concurred. Clark, C. J., did not sit.
Id., 35 Cyc. p. 128. | [
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Bird, J.
Plaintiff filed his bill in the superior court for the city of Grand Rapids, praying for a decree reforming a certain lease made with the defendant Oltman, and afterwards assigned by him to the Burleson Sanitarium. From a decree granting the relief sought defendant Burleson Sanitarium appeals.
We have carefully considered the testimony upon which the chancellor based the decree for plaintiff, and are so nearly in accord with his statement of the case and his conclusions that we adopt it as the opinion in the case, with some slight modification, which will be referred to later:
“For some 12 years prior to the commencement of this suit, defendant Oltman was the owner of certain real estate at the southwest corner of Fulton street and Jefferson avenue, in the city of Grand Rapids, Michigan, said property being known as No. 1 Jefferson avenue and No. 154 Fulton street east. On the property is an old residence, the lower floor of which was remodeled into stores fronting both upon Jefferson avenue and Fulton street.
“About 12 years ago plaintiff rented said premises from defendant Oltman and continued to rent the same down to and including the 14th day of January, 1922, at which time the lease in question was entered into between plaintiff and said Oltman. There had been three similar leases prior to the lease of January 14, 1922, but none of the former leases were produced at the trial.
“The lease in question contained a provision that the premises rented were, ‘to be occupied for a confectionery and manufacturing store and for no other purpose whatever.’ The words ‘to be occupied for a confectionery and manufacturing store’ were written into the lease in long hand but the words ‘and for no other purpose whatever’ were a part of the printed form. The lease is dated May 1, 1922, and expires the 1st day of May, 1929, the rent stipulated for the term being the sum of $24,600.
“At the time this lease was executed, plaintiff had used the premises in question as a residence for himself openly and notoriously and with the knowledge and consent of defendant Oltman since the time the first lease was entered into.
“Plaintiff is permanently crippled, his body being paralyzed from the hips downward in such a manner that he cannot get about at all except with crutches, and then only in the most laborious manner. He is unable to lift either limb, although he can sustain some weight upon his feet. His condition is such that it is practically necessary for him to live in the same building where he conducts his business.
“After living for some years upon the ground floor of the premises rented from defendant Oltman, plaintiff’s business had increased to such an extent that he desired to use the whole of the ground floor for store and manufacturing purposes and to have his living quarters upstairs. By mutual agreement between himself and said Oltman, the latter installed a small elevator in the building with the distinct purpose of enabling plaintiff more readily to go back and forth between his living quarters on the second floor and the first floor and basement, and for the past four or five years plaintiff has lived upstairs in the house.
“I find that at the time the last lease was executed the defendant Oltman knew and understood that plaintiff was living in the premises and had lived there for many years, and that plaintiff desired and intended to continue to live there.
“I further find that plaintiff would not have made the lease in question at all had he realized that he was not permitted to live in the premises.
“I further find that defendant Oltman intended and desired that plaintiff should live in the premises, and knew that plaintiff rented them in part for living purposes, and in part paid his rent for those purposes. At the time the last lease was executed the minds of defendant Oltman and of the plaintiff were in agreement upon plaintiff’s right to live in the premises, and plaintiff promised to pay rent and defendant Oltman promised to receive it with the understanding that it was paid in part for plaintiff’s right to live in said premises.
“While there was no provision written into the lease in express terms giving plaintiff the right to live upon the premises, I find that it was understood between the parties that plaintiff should live there, and the provision permitting him to live there was overlooked by both parties.
“The lease as drawn up and signed did not, therefore, contain their full understanding or agreement regarding the uses of the premises in question, and the lease as drawn was, therefore, not the agreement and understanding between the parties at the time. ¥/hile there was no spoken words exchanged between them at the time the last lease was executed evidencing an agreement that plaintiff should continue to have the right to live in the premises, nevertheless, such an agreement is clearly established by the facts and circumstances surrounding the transaction.
“Some months after this lease was executed, the defendant Oltman sold the premises in question to one S. R. Fletcher, who in truth and in fact was acting as the undisclosed agent and representative of the defendant Burleson Sanitarium; and at the same time said lease was assigned to said Fletcher and by him to said last named defendant.
“At the time said Fletcher bought this property for the Burleson Sanitarium, plaintiff was openly and notoriously occupying the premises in question, partly for living purposes; and the defendant Burleson Sanitarium not only had constructive notice of such occupancy, but also had actual notice of the same. The offices of the Burleson Sanitarium were directly across from and within a few feet of that part of the premises occupied by plaintiff as his living quarters; and no officer of the defendant sanitarium who ever used its offices could possibly have failed to notice that plaintiff was living on the premises in question.
“I further find that at the time said sanitarium acquired title through its agent, said Fletcher, it had both actual and constructive notice of the fact that plaintiff was maintaining and had for sometime maintained a small cigar case in his store on said premises from which he sold cigars to customers.
“Since the Burleson Sanitarium has acquired title to said property it has threatened to evict plaintiff because of the fact that he occupied a portion of the premises as living quarters and because he maintained said cigar case, it being claimed by said defendant that these two matters constitute breaches of the portion of the written lease hereinbefore quoted.
“Not only is it true that said sanitarium must have known that plaintiff was both occupying a portion of said premises as living quarters and that he. was selling cigars, but it is also true that both of these uses which plaintiff has made of the premises are merely incidental to his use of the premises for the purposes stated in the written lease. It very often happens that the proprietor of a store building occupies a portion of it for living- purposes; and the sale of cigars in confectionery stores is so common that it may well be said to be a part of the confectionery business.
“At the time that the Burleson Sanitarium purchased these premises and took an assignment of plaintiff’s lease, it was certainly their intention that he should be permitted to remain in said premises during the term of said lease, and they purchased the property knowing that plaintiff expected to continue so to occupy during the term of his lease.
“No one would have the temerity to accuse men of such high standing in the community as the. officers of the Burleson Sanitarium with the secret intention to oust plaintiff from the premises upon the slightest pretext. Yet both of these alleged breaches are of no concern whatever to the defendant sanitarium; they injure it in no way whatever. The alleged claim that the use by the plaintiff of a part of these premises for living quarters depreciates the value of the property is without foundation. Many of the buildings in the same vicinity are used partly for business purposes and partly for living purposes. And the sale of cigars by plaintiff is not in competition with the cigar stand operated by the sanitarium in its adjoining building, as said sanitarium is semi-private in its nature and not entered by the general public for the purpose of purchasing cigars, its cigar stand being operated solely for the convenience of its patients.
“The law does not favor forfeitures, and even though the alleged breaches upon which defendant sanitarium bases its claim to avoid this lease actually are technical violations of the strict terms of the lease, they are not such violations as would justify a court of equity in declaring what will amount to a forfeiture of plaintiff’s rights.
“I am, therefore, forced to the conclusion that the material allegations in plaintiff’s bill of complaint are true and plaintiff, therefore, entitled to the relief therein prayed.
“The injunction heretofore issued should, therefore, be extended and continued throughout the unexpired portion of plaintiff’s, lease. The allegations of the cross-bill of defendant Burleson Sanitarium are not sustained, and said cross-bill should, therefore, be dismissed with costs to be taxed in favor of the plaintiff.
“The defendant Oltman was merely a nominal defendant and the bill of complaint has already been dismissed as against him, and he should be permitted to tax his costs against the plaintiff.”
In reforming the lease so that it would conform to the agreement and intention of the parties, the words “for no other purpose whatever” were eliminated. We think these words should be reinstated so that the decree will read as follows:
“to be occupied for a confectionery and manufacturing store and for living quarters for plaintiff, and for any other purpose incident thereto, but for no other purpose whatever.”
The case of Dolsen v. Kearney, 216 Mich. 668, recently decided by this court, is an instructive case on the questions here involved, and fully justifies the conclusions reached by the chancellor.
The decree will be affirmed with costs to the plaintiff.
Sharpe, Moore, Fellows, and Wiest, JJ., concurred. Clark, C. J,, and McDonald and Steere, JJ., concurred in the result. | [
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Steere, J.
In September, 1921, John Kukieika and Leokadya Kukieika, his wife, were in possession as owners under a land contract of a farm consisting of 195 acres lying in Orion township near Clarkston, in Oakland county, Michigan. They had obtained it from on© John Harger, of Pontiac, at a stated price of $29,750 and been credited with $14,000 on the purchase price, in consideration for which they “turned over” to Harger a two-family brick house and lot located in Detroit, on “Center Line just a block off Hartford (Harper),” valued at $20,000, upon which they were yet owing $6,000. Kukieika had followed the bricklayer’s trade all his life, 15 years in Detroit, and neither he nor his wife had ever lived on a farm before May 2, 1921, when they moved upon the one involved here shortly after securing it from Harger. They at first were apparently satisfied with the place but later were disposed to dispose of it. Plaintiff Leokadya said that she at first liked the farm but later found she couldn’t work on it and wanted to sell it, one of her reasons being “I had sn lot of children to take care of; I couldn’t take care of them on the farm.”
On September 8, 1921, three real estate men named Thomas Olzynski, Walter Tybicki and Stanley Lukoski visited the farm and interviewed Kukieika relative to his inclination to trade for property in Detroit, which resulted in their bringing him and defendant John Ranyak together on a proposition that plaintiffs trade their interest in the farm for a hardware store and stock of hardware in Detroit belonging to Ranyak, located at 8435 Mt. Elliott street. • Plaintiffs were taken by the real estate men to see the Detroit property and Ranyak to see the farm. Their negotiations resulted in a deal by which plaintiffs assigned to Ranyak their interest in the farm, stock and implements upon it, as a first payment of $12,250 on a land contract from Ranyak and wife, dated September 9, 1921, of their Detroit property for $34,000, the real estate being valued at $26,000 and the stock of hardware in the store at $8,000. Deferred payments were provided for, to be completed within ten years. Possession of the properties was shortly thereafter exchanged and plaintiffs moved into apartments over the store,' where they were yet residing at the time! this case was heard. They at first tried unsuccessfully to continue the hardware business in which neither of them had any previous experience.
Plaintiffs claim to have soon discovered that they had been grossly deceived, and induced to make the deal by false and fraudulent representations of defendants both as to the value of the Detroit real estate, and amount and value of the stock of hardware in the store which proved to be less in quantity than represented and worth scarcely a quarter of the $8,000 claimed. They thereafter declared a rescission of the deal, tendered back to Ranyak and wife assignment of their contract for the Detroit property and demanded reassignment to them of their equity in the farm, which was ignored. They then filed this bill asking cancellation of the exchange, restoration of possession, return of personal property and award for damages sustained, on the ground that they were induced to make the exchange by false and fraudulent representations of defendants Ranyak and their agents. A money judgment was also asked for compensatory damages, in case the Ranyaks had disposed of the farm to innocent third parties.
Defendants answered issuably in denial and after hearing the testimony of the respective parties the court declined to cancel the instruments conveying equities in the real estate exchanged in the transaction; but found plaintiffs had been overreached and grossly deceived by defendants’ false and fraudulent representations as to the amount and value of the stock of hardware, a subject in relation to which they were totally inexperienced and ignorant, assessed their damages at $6,000, and ordered that amount credited as a payment upon, their contract for the Detroit property as of the date of the contract. From this decree plaintiffs have appealed.
The case is strictly one of facts, the issue being whether plaintiffs were induced to enter into the contract by false and fraudulent representations made by defendants upon which the former relied and acted, as to which they had the burden of proof. The parties were dealing at arms’ length. Plaintiffs had lived in Detroit for years and owned real estate there. They had an opportunity to and did inspect the property involved here. They were dealing with felloweountry-men and cannot take refuge behind the not uncommon claim in this class of cases that they did not fully understand what was said in the negotiations. So far as the real estate is concerned they are not shown to have been on unequal footing with those with whom they dealt. The testimony of the respective sides as to what passed between them is in violent conflict. Conflict of testimony as to values of real estate and representations in that particular is minified in significance by the fact that this was strictly a trading transaction with trading prices asked and talked from beginning to end. Plaintiffs procured the farm in a trade and traded it to Ranyak who claimed to have been deceived by them as to its value. He testified that when he “got everything looked up” he found the buildings in bad shape, the roads to the place bad, no supply of food for stock which were half starved, the land “roily and you could not raise no crops,” and the “farm worthless.” He then knew he was “stung,” but managed to trade it to a woman for an incumbered house and two lots in Detroit, which “was another trade, there was no cash.” This made three trades through which the farm was passed along in a little over three months, the only-money shown to have been paid in any of those transactions being a commission to the real estate men paid by plaintiffs which Mrs. Kukielka testified Ranyak agreed to pay, but she had to do so because they would not give them the contract without it. The trial court in passing upon the conflicting testimony had the benefit of hearing and seeing the witnesses and on their testimony as it appears in print we find no occasion to disturb the conclusion there reached that plaintiffs had not satisfactorily established their claim of fraud as to the real estate by a preponderance of convincing evidence.
As to the amount and value of the stock of hardware and business Ranyak was doing in that line, it clearly appears that plaintiffs were totally ignorant upon the subject and the situation was such that defendants could more readily deceive them. There is convincing evidence that they did. Records left in the store of goods purchased, business done, an inventory of the stock turned over and other circumstances disclosed strongly support plaintiffs’ testimony in that particular and well sustain the court’s conclusion that the stock turned over to them was worth little if any more than $2,000, while defendants fraudulently and falsely represented to them and led them to believe that they were getting a live stock of merchandise worth $8,000, in connection with a prosperous hardware business.
The decree will stand affirmed, with costs of this court to defendants.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Fellows, and Wiest, JJ., concurred. | [
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Wiest,«J.
Charged, in common-law form, with the crime of murder, defendants stand convicted of manslaughter, and prosecute review on exceptions before sentence.
Henry Gerling, aged 85, lived alone, in the country near Watervliet, Berrien county. April 14, 1921, a neighbor, noticing no light in Mr. Gerling’s house for many nights, went over and found Mr. Gerling tied with wire, hands and feet, to the head and foot of his bedstead, with his body suspended off the side of the bed and one cheek bone rubbed raw where it touched the floor. He had been dead so long mortification was present. On a table lay his spectacles and Bible, underneath set his slippers, while books and papers were scattered about the room, and in another room a bed had been ransacked and in the basement a safe had its" combination and hinges knocked off and a hole broken in its outer covering. On the safe iay a small stick of fire wood to which some hair adhered, and by the safe lay a sledge hammer and an iron wedge. “Untie Henry Gerling” was found chalked on a nearby roadside mail box on April 2d, and some distance away on an auction notice on a tree was chalked “Henry Gerling.” Four boys, on March 31, 1921, lived in the vicinity of the Gerling home; Howard Long, then 12 years of age, Leon Long, his brother, 13, Alvin Keller, 13, and Rheinhold Treichel, 14. In October, 1923, Howard Long was in the jail of Berrien county on another charge, and the sheriff enlisted the services of a boy prisoner to find out what Long knew about the Gerling matter. The sheriff had several sessions with Long in which he denied all knowledge of the Gerling murder. In one interview, when Long was seated, the sheriff slapped him. Long finally confessed and was a witness at the trial for the prosecution. He testified the three defendants and himself planned the entering of the Gerling house and, on or about March 31, 1921, in the evening, they went to a vacant house across the road from the Gerling home, there waited until the light in the Gerling home was put out, then his brother Leon and the other two boys, taking a sledge hammer with them, went to the Gerling home while he remained on watch and later he went home without seeing the other boys; that he learned from them that they entered the house, found Mr. Gerling in bed, struck him with a small stick of fire wood, tied him with wire to the bedstead, attempted to break open the safe, then went upstairs, heard Mr. Gerling groan and left. Defendants were arrested and confessed but Treichel’s confession was excluded because of the brutality of the sheriff in obtaining it. The sheriff admits he seized. Treichel by the hair and rubbed his nose. The defendants, when arrested, denied their guilt and at the trial repudiated their confessions, claiming they were induced to make the same through fear, brutality, hope of help and promises.
While impaneling the jury the trial judge stated that, under the information, a conviction might be had for murder in the first or second degree or manslaughter, and at the close of the trial so instructed the jury.
Counsel for defendants strenuously insist this was error, claiming the information charged murder in the first degree, and it was the duty of the trial judge, under the evidence and their written request, to instruct the jury to confine their deliberations to such degree and, if unable to convict of murder in the first degree, they must find defendants not guilty. Counsel claim they are supported in taking this position by many decisions of this court. In this they are in error. The information charged murder without specifying method, or means, or circumstances, and, under the information, murder in either degree, or manslaughter, might be found. This court has repeatedly held, where the charge as laid includes murder in the first degree, and the proofs establish such degree, and no lesser degree, it is not error for the court to instruct the jury that, in order to convict, murder in the first degree must be found. But this court has not held, under a charge like here laid, the court must instruct the jury to find murder in the first degree or acquit. Whether such an instruction may be given or not depends upon the evidence. While the statute constitutes murder committed in the perpetration of burglary as in the first degree, it does not exclude all lesser degrees if the evidence warrants.
In many cases such a holding as here asked would make it extremely hazardous for the people in laying the charge. Suppose the charge is murder in the second degree, and the proofs show murder in the first degree, must there be an acquittal? This information charged murder in the first and second degrees, and this was inclusive of manslaughter. The evidence left it open for the jury to find defendants guilty of manslaughter.
While Mr. Gerling was wired to his bedstead during the course of a burglary it Is apparent he was not then killed for he rolled off the bed. How long he lay unconscious before he rolled off the bed, and how long he lived after he rolled off no one knows. Suppose the jury found, in accordance with the testimony of the undertaker who washed the body of the deceased, there was no bruise except where the cheek bone rubbed on the floor, then they would have had the case of three boys tying the old gentleman in bed and leaving him there alive and endeavoring to incite some one to go and untie him. Conceding the verdict might have been for murder in the first degree, because death was occasioned by act committed in the perpetration of a burglary, was such a verdict the only one permissible? We cannot so hold. We think the evidence left the question of degree and the included crime of manslaughter to the jury and the court avoided instead of committed error in so submitting it. In People v. Utter, 217 Mich. 74, we held:
“A simple information charging the common-law essentials of murder may be laid, and the jury convict of any degree which the proof establishes.”
The statute, 3 Comp. Laws 1915, § 15194, requires the jury to determine the degree of murder.
Whether the confessions of Leon Long and Alvin Keller could be considered by the jury, depended upon determination of questions of fact, and the court very properly left such questions to the jury, giving full instructions as to applicable law. The same is true of statements made by defendants to others after their confessions. In the case of defendant Treichel the court excluded his confession, but this did not render subsequent statements by him to others inadmissible as a matter of law. Whether for consideration by the jury or not depended upon previous threats, violence, promises or improper inducement and continuing operation thereof. The rule of guidance was carefully given to the jury. Defendants may not urge the exclusion of the testimony of Howard Long on the ground he was led to confess by trickery, deceit, brutality or promises. He was not on trial. Methods and means employed to get him to confess went to the jury along with his testimony, and it was for the jury to say, under the circumstances, what weight, if any, they would give to what he said in court.
The court was not in error in stating, in the presence of the jury, that, if the confessions of Leon Long and Alvin Keller were made in the presence of defendant Treichel, the jury might consider such fact, for what it was worth, against such defendant.
Counsel insist they were unfairly restricted in their cross-examination of witnesses for the people. This record has been carefully read and discloses the court permitted lengthy cross-examinations and we discover no reversible error in restrictions applied by the court.
The sheriff’s “stool pigeon,” Cecil Hebert, employed to work on Howard Long, made a statement, under oath, before the trial, at the request of one of the counsel for defendants. Called as a witness by the prosecution, on cross-examination he was asked about this statement and testified it was untrue. Thereupon counsel offered the statement in evidence and it was excluded, the court holding the witness might be asked specifically about each statement therein,' but the writing itself was not admissible. The record discloses the witness was asked, practically paragraph by paragraph, about his statements in the writing. We think the writing was admissible but inasmuch as the contents thereof reached the jury there was no reversible error in the exclusion of the paper. During the course of the cross-examination of Sheriff Bridgman, the following occurred:
“Q. So you entered into a scheme with Cecil Hebert to entrap and lie and so deceive this, little simpleminded Howard Long, did you not?
“A. If you call him that.
“Q. Yes or not?
“A. Yes, I didn’t say — he is not simple-minded.
“Mr. Gore: There is no evidence he is simple-minded except by counsel. I move that description be struck from the question.
“The Court: The sheriff answered.
“Mr. Gore: It is not fair cross-examination either to brand a witness without any evidence of it.
“The Court: It is answered. I don’t think it was fair either. The sheriff is able to take care of himself.
“Mr. Sterling: I take exception to the statement of the court in that regard.
“The Court: I do not think that question was fair, Mr. Sterling.
“Mr. Sterling: In what particular is it not fair?
“The Court: Wherein you stated the boy was a simple-minded boy. There is not anything to warrant such a statement.
“Mr. Sterling: It is a question of fact.
“The Court: It is not for counsel to testify.”
It is said:
“Bridgman was not only a hostile witness but an unruly and ungovernable one. He repeatedly evaded the questions asked. He replied many times by asking a question himself. A reading of his cross-examination will disclose that he was not required by the court to answer any question except in a manner he pleased. Many of his answers were not responsive, yet counsel obtained no assistance from the court.”
And it is claimed the attitude of the trial court is clearly disclosed by the above quotation from the record. It is further said:
“His unwarranted statement in the hearing of the jury that counsel’s question, propounded to Bridgman, was unfair must have influenced the jury against respondents, and the court’s positive assertion that ‘the sheriff is able to take care of himself’ was clearly prejudicial to respondents.”
We think counsel unduly exercised. The question was improper and the witness was shrewd enough to avoid the unwarranted implication. We think the trial judge was justified in saying it was unfair. It was apparent the witness was able to take care of himself, and a mere statement of the obvious was not in this instance reversible error.
Howard Long, on direct-examination, testified that he and the three defendants broke and entered the house of Mr. Fisher, but on motion the answer was struck out so far as it concerned Leon Long and Treichel. If there was any error in leaving the answer as to Alvin Keller, and harm to the other two defendants, because of the asking, and not corrected by striking out, subsequent examination into the whole matter when defendants were witnesses rendered the matter complained of harmless.
It is claimed there was error in permitting witnesses to state they made no promises, threats or inducements, nor abused the defendants Long and Keller in order to obtain their confessions, because such questions called for the conclusions or opinions of the witnesses. The witnesses were asked what was said and done. The questions complained of did not call for the opinions of the witnesses in relation to what was said or done but to negative anything beyond what they had detailed and this was proper.
We find no reversible error in the closing argument of the prosecuting attorney. When he got over the traces the court very promptly put him back.
The other errors alleged have been considered, have no merit and do not call for discussion.
In the course of the opinion we have made passing mention of the brutality practiced by Sheriff Bridgman upon Howard Long and Rheinhold Treichel. With such confessed breach of official obligation and violation of rights of prisoners before us, we feel we would be remiss in duty if we failed to condemn in plain language such misconduct. To say the acts were cowardly and brutal will not suffice, for this does not adequately cover the grave breach of official obligation committed. Slapping one small boy and seizing another by his hair while rubbing his nose, constituted assaults and batteries, committed without justification or excuse, upon prisoners in the custody of the law, by an officer of the law. Such acts disgrace an offender, violate the law, are degrading to prisoners and obnoxious to the administration of justice.
We find no reversible error and the convictions are affirmed, and the circuit court advised to proceed to judgment.
McDonald, Bird, Sharpe, Moore, Steere, and Fellows, JJ., concurred. Clark, C. J., did not sit. | [
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STEERE, J.
Plaintiff is a manufacturer of shoes located in St. Louis, Missouri. Defendant is a tanner and sole cutter located at Muskegon, Michigan. This litigation involves a car load of scrap sole leather known as “heeling,” used for lifts in shoe heels, bought by plaintiff from defendant by sample and rejected because not in compliance with the sample furnished. In August, 1921, defendant’s representative, Ray Fleckenstein, solicited plaintiff’s manager at St. Louis to buy a car load of heeling, representing that the car load he offered was “an extra good bargain.” Plaintiff’s superintendent replied favorably and told the agent to send them a sample by express. The sample sent was of good fibre, flexible and first-class. Plaintiff sent an order on August 16th for the car load, reading as follows:
“St. Louis, Mo.,
August 16, 1921.
“Ordered by Mr. J. P. Downton.
“C. G. Fleckenstein,
“Muskegon, Mich.
“Please enter our order below, at the price and terms named, and for deliveries specified:
• “Ship to International Shoe Company, Mississippi and Hickory, St. Louis, Mo.
“Note: Send invoice in duplicate and bill of lading to 1501 Washington avenue, St. Louis, Mo.
“Party to whom shipped and order number above must appear on your invoices.
“1 car of No. 8 half heeling — $50 per ton.
“Terms: 1 per cent, ten days F. O. B. Muskegon.
“The above car is to be similar in size, weight and quality to sample recently sent us.
“This car is to be shipped on August 22d.
“International Shoe Co.,
“By J. P. Downton.”
A car load of heeling was soon thereafter shipped by defendant to St. Louis and invoice sent to plaintiff. It read in part as follows:
“(Flexoak) — C. G. Fleckenstein Co.,
“Tanners and Sole Cutters,
“Muskegon, Michigan. * * *
“Terms 2 per cent, ten days.
“F. O. B. Muskegon, Mich. * * *
“Date of invoice, 8-18-21.
“Sold to International Shoe Co.,
“St. Louis, Mo.
“1 car No. 8 heeling 33241 lbs. 50.00 ton — 851.02.
“Shipped in car P. R. R. U. L. 33400.”
On receipt of the invoice plaintiff promptly paid for the consignment, less the 2 per cent, discount, and on arrival of the car had it unloaded. Instead of being shipped in bags, as is said to be the custom, the scrap leather was in bales many of which broke open in transit. When taken to plaintiff’s factory the broken bales gave ready opportunity to observe the condition of their contents and plaintiff’s foreman testified he did so, finding the leather of poor quality, fibreless and brittle owing to its treatment, the pieces would break in twoi when bent and were not suitable for use in making heels. Plaintiff thereupon inspected it thoroughly, found it brittle, the leather fibre destroyed, caused, it was thought, by acid burning and rejected it because not fit for use as heeling and inferior in quality to the sample, promptly notifying defendant. Owing to the broken condition of the packages in which it came plaintiff found it necessary to sack it, which was done and defendant so notified. Plaintiff called in experts from other shoe concerns to examine the consignment. They testified the leather was inferior to the sample, very lifeless and brittle, and unfit for use as heeling. Considerable correspondence with defendant followed in an attempt to adjust the matter, which failed, and after notifying defendant that the leather was in a. storehouse subject to its order plaintiff demanded repayment of the purchase price, freight and handling charges, which was met by refusal, and this action was then brought in the Muskegon county circuit court to recover the same.
It was shown that none of the samples sent plaintiff by express, on the strength of which the offered car load was ordered, were taken from that car load, or from defendant’s stock of heeling on hand when the order was solicited; but were the product of a subsequent day’s sole cutting just before the samples were sent, while the car load shipped was composed of an accumulation of scrap leather throughout most of the preceding year from whatever kinds of sole leather defendant was cutting. Defendant’s president, Norbert Fleckenstein, said of this in part:
‘‘The leather in question that was shipped to the plaintiff was specified as No. 8 half heeling. That is two pieces would make a heel. * * * Things were going slack and it took us pretty near a year to accumulate a car of this. I presume a portion of this leather that was shipped to plaintiff was fairly dry, owing to the fact that it had been on hand a long time in a frame warehouse and it got pretty hot in the summer time. Leather to be in marketable condition usually contains from ten to fourteen per cent, of moisture. This stock in question probably does not contain two per cent. * * * I put up those samples. I took them just where they had fallen that day from the machine, so they were samples of what our machine was making on the particular day I packed them up. These other goods that I shipped to the International Shoe Company were accumulated for a year’s time prior to that.”
The case was tried before the court without a jury. On the trial plaintiff produced as exhibits the samples it had received on which its purchase was based, and a sack from the consignment with proof that it was a fair sample of the car load as a whole, taken unselected and at random “from the top of probably 20 different bags out of the shipment.” Plaintiff’s ground for rejection was that the car load was far inferior to the sample, being very brittle, contained many heavy and curved brittle pieces difficult to press out, entailing loss and additional expense if usable at all, and most of the consignment was so brittle and defective in quality that it could not be used in making the class of heels plaintiff manufactured, while the sample sent was flexible, of good quality, in excellent condition and well adapted for its use.
At conclusion of the case the court first delivered an opinion, saying in conclusion:
“The burden of proof being on the plaintiff, I am not satisfied that it has established its case, and the judgment will eventually be for the defendant — No cause of action — after findings have been prepared by defendant’s attorney for submission to me.”
Defendant’s attorney thereafter prepared findings of fact, with the “conclusion of law” that “plaintiff has no cause of action against said defendant, that judgment should, therefore, be entered for defendant with costs to be taxed.” This was signed by the court and served on plaintiff’s attorneys, who then proposed and served amendments. They contained a more complete recital of undisputed facts claimed material and additions to or changes of facts found which it was claimed the overwhelming weight of evidence justified, and especially that the goods shipped were so inferior in quality to the samples sent as to be unfit for use by plaintiff in the manufacture of heels.
On hearing of the proposed amendments plaintiff’s counsel produced before the court the samples introduced as exhibits upon the trial and especially requested the court to make a personal examination and comparison of them to test the question of whether the goods shipped were in fact equal in quality to the samples sent plaintiff, claiming that upon the trial the court had only seen them from the bench when produced in court and examined or handled by counsel or witnesses. The court refused to make the examination requested at that hearing and some six months after the amendments were proposed filed further findings of facts not in harmony on the vital issues with those requested by plaintiff, arriving at the same conclusion of law as before, and ordered judgment entered for defendant. Objections and exceptions were duly taken by plaintiff and incorporated in the bill of exceptions. Upon hearing of the case in this court the bags of samples introduced as exhibits in the trial court were produced and submitted for inspection and comparison. That they were the identical exhibits is not disputed. Neither do we find from the record that the verity of those samples was questioned in the trial court.
Plaintiff’s assignments of error as condensed and argued are directed against:
(1) Admission of evidence of the price of leather when manufactured into soles.
(2) Finding by the court that the sample on which plaintiff based its order was taken from one day’s accumulation “under the same circumstances and conditions which surrounded the storing and accumulation of the leather shipped.”
(3) Finding that the leather shipped was equal to the sample on which the order was based.
(4) Refusal of the court to personally examine and compare the two samples as requested.
The court permitted the defense, against objection, to introduce testimony of two witnesses that the price of soles made from the leather of which the heeling in question was the waste, or scraps, as sold by the pound, would bring from $700 to as high, as $2,000 per ton, while it was shown this sole leather in the form of heeling was sold to plaintiff for $50 per ton. It is contended that this testimony was clearly immaterial for any legitimate purpose and the defense could have no other object in introducing and repeating it than to create a prejudicial atmosphere by showing the comparatively small price at which plaintiff bought heeling of the same leather.
The basic issue in this case was whether the goods shipped were equal in quality for the purpose purchased to the sample defendant furnished. If they were not plaintiff had a right to reject the consignment. The price manufactured soles brought per pound could furnish no legitimate aid in solution of that question. It would not be competent if before a jury to allow counsel to argue that it was. But this case was tried before the' court without a jury where the rules of evidence are not always so strictly observed or enforced and, although unable to divine why such testimony was admitted against objection, we are not prepared to presume it worked prejudicially on the mind of the court and reverse the case on that ground alone.
In plaintiff’s proposed amendments to the findings the court was requested to find as follows:
“The shipment made .by (to) the plaintiff was of scrap leather which had accumulated daily and had been stored for a period of several months. The sample on which the order was based was taken from a single day’s work and not from the accumulation from which the shipment was made.”
In its final findings of February 28, 1923, the court refused this request and found upon that subject as follows:
“On the trial of the case it was shown by the defendant that the shipment made by it to the plaintiff was of scrap leather which had accumulated daily during a period of several months and that the sample which had been furnished was taken from one day’s accumulation of scrap leather under the same circumstances and conditions which surrounded the storing and accumulation of the leather shipped.”
The testimony does not bear out that portion of this finding which states without qualification that the sample furnished was taken “from one day’s accumulation of scrap leather under the same circumstances and conditions which surrounded the storing and accumulation of the leather shipped.” In addition to what we have already quoted from the testimony of defendant’s president he stated of the shipment:
“We got a wire from Mr. Ray Fleckenstein about. 7:30 or 8:00 o’clock one night to express a sample immediately to International Shoe Company of No. 8 heeling, so we went out and instead of going to the' warehouse and breaking open a bale we went to where the' scrap trimmers had thrown their day’s produce of scrap and filled a bag with that and put it on the 10:30 train.”
Vice-president Lee Fleckenstein testified of the shipment:
“It included all the eight and nine approximately that went through the tannery. Every class and grade' of leather, whether from bands and pates or bellies, or any other part of the hide that went through the' sole cutting department during the year, went to the-plaintiff in this case.”
We discover no testimony on the part of defendant that the leather on which they were working on the day the sample was taken corresponded in quality with the average of that from which the heeling was taken and stored in the warehouse “where it got pretty hot in the summer time,” during the preceding year. It is undisputed that the samples were first-class, from a well tanned extra quality of sole leather, and that they never were stored in the warehouse from which the shipment was taken. The testimony does not warrant the portion of the finding complained of.
Plaintiff’s various expert witnesses testified unequivocally from personal examination and comparison that the sample from the consignment was not equal to the sample sent, stating wherein they found it inferior, and expressed the opinion that its inferior quality was imputable to its being acid burned. Defendant’s president was the only witness who testified on the subject of the leather being acid burned. . He testified that they did not manufacture heels, the business of his company being to “manufacture chrome re-tanned sole leather;” that the expression “acid burned” could be used in connection with “bark tanning leather,” but he never heard it before in relation to what is called “chrome re-tanned leather,” for in that method of treatment “no acid material is used directly in connection with the hide,” saying of their process:
“We are the only people that are really producing a stock of that kind. The leather is first tanned by using mineral material. That makes it impervious to heat. Before we pass that along in our process We cut pieces of the hide and boil them to see if they are thoroughly tanned. If they are tanned they will stand boiling. After that, they are put into the vats and they are re-tanned in bark mixture. * * * We don’t use any acid in direct contact with the hide at all. The acid is used in connection with the glucose and the action of the acid with the glucose reduces it down so slight you can just about taste it. I presume that differs a good deal from the ordinary tanning process.”
The court was apparently impressed by this testimony that plaintiff’s witnesses were mistaken in their conclusions as to the cause of the inferior condition in which they testified they found the consignments, and therefore mistaken in their testimony that it was inferior to the sample, and in that connection found—
“as a conclusion of fact that the defendant has conclusively shown that the leather shipped to the plaintiff was not acid burned and in fact none of the leather had been at any time treated by acid.”
As its president described defendant’s process, it differed “a good deal from the ordinary tanning process” in “producing a stock of that kind.” The leather was twice tanned; first by using some undefined mineral material adequate to render it “impervious to heat,” and thereafter in the course of the process was “re-tanned in bark mixture.” He said “acid burned” was an expression which “could be used in connection with bark tanning leather,” and admitted acid was used in their process, though not “in direct contact with the hide,” and was reduced down by glucose until “you could just about taste it,” not disclosing, however, at what stage of the process or by whom the tasting took place. While imputing the inferior condition of the leather to acid burn plaintiff rejected the shipment because it was not similar in quality to the sample. During the correspondence between the parties plaintiff wrote defendant:
“There is not one single piece of brittle leather in the sample of which there is such a large quantity in the car load. This is a stock which we will not use in our heels and regardless of whether or not this is acid burnt, it is entirely too poor in quality for us to consider using.”
Conceding the court had before it adequate supporting evidence to warrant the finding that it was conclusively shown the leather shipped was not acid burned the basic issue was whether it complied in quality with the sample. Upon that issue the respective samples introduced as exhibits are direct and competent evidence not to be lightly overlooked. This court has, while in consultation on this case, inspected and compared them, and is of opinion that a careful inspection and comparison of them by appearance and test of quality is not only illuminating but essential to a right determination of the facts from all the evidence in this case considered collectively.
We are impressed from a careful consideration of this record in its entirety that the ultimate conclusion of law which the trial court reached was based on facts found which were without evidential support or against the great weight of convincing evidence, and that a new trial should be granted. As the case will be for re-trial the testimony of the respective witnesses will not be further reviewed.
The judgment is reversed with costs to plaintiff, and a re-trial granted.
McDonald, C. J., and Claek, Shaepe, Mooke, Fellows, and Wiest, JJ., concurred. Bikd, J., did not sit. | [
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Fellows, J.
Some years ago in the township of Arenac, in Arenac county, a highway bridge was maintained across Rifle river cut. It was washed out in a period of high water and since 1919 a foot bridge has been maintained by the township for the use of pedestrians only. It is taken down in flood times and put up each spring after the floods are over. One span consists of woven wire upon which the planks are laid and the other span, 26 feet long, has stringers. Plaintiff, who lived in the vicinity and who frequently crossed the bridge, was crossing this bridge in company with others on July 8, 1923, when the stringer or stringers gave way and she received injuries from the resulting fall. This action was brought to recover for the damages so occasioned.
At the close of plaintiff’s testimony and again at the close of all the proofs, defendant moved for a directed verdict on the ground that plaintiff was guilty of con- tributary negligence as matter of law and that no negligence of defendant was shown. We think the trial judge correctly overruled these motions and left these questions to the jury. The fact that plaintiff might have heard her father say that the bridge was unsafe did not render her guilty of contributory negligence as matter of law. Wolverton v. Village of Saranac, 171 Mich. 419, and cases there cited. Testimony offered on behalf of plaintiff tended to establish that the highway commissioner was given actual notice that the bridge was in an unsafe condition some considerable time before the accident, and while one of plaintiff’s witnesses gave testimony that the stringers were perfectly sound, there was testimony in the case made by plaintiff tending to show that they were, or at least one of them was, so rotten as to be noticeable to the most casual observer and had so existed for a considerable time. Plaintiff’s testimony made a case of a patent defect and of both actual and constructive notice.
Defendant denied that it had received any actual notice. It also denied that there was any patent defect in the stringer and introduced testimony that before the stringer was put in place in the spring it was carefully inspected and no defect found. It further claimed that there was no such defect in the stringer as to bring to it or its officers constructive notice; that in fact the stringer did not on its surface show any unsoundness. In making this defense, however, defendant was materially restricted by a ruling of the court that defendant’s witnesses could not testify that the stringer was sound, appeared to be sound, or that, in passing across the bridge, they noticed no unsoundness in the stringer, the ruling being based on the ground that this was the expression of an opinion. Some testimony along this line was stricken out and some was rejected. It all had to do with the exterior of the stringer. In these rulings we think the court was in error. Had the witnesses been attempting to testify to a latent condition another question would be presented, but that was not the subject of the inquiry. They were testifying to patent conditions, visual to the eye. They were testifying to a condition which they saw, not to a result based on a system of reasoning. They were testifying to a fact, not to a conclusion. This ruling went to the heart of the defense. It crippled defendant in two of its claims (1) that the stringer was not in fact defective, and (2) that it did not have constructive notice.
For this error the case must be reversed and a new trial granted. Defendant will recover costs of this court.
Clark, C. J., and McDonald, Bird, Sharpe, Moore, Steere, and Wiest, JJ., concurred. | [
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Moore, J.
A decree of divorce was granted in this case and the property rights of the parties were settled in a decree filed February 25, 1924. No claim of appeal was made within the time limited by the statute. On May 19, 1924, a motion was made for a rehearing by the plaintiff on the claim that her property rights had not been properly adjusted in the divorce decree. On June 14, 1924, the motion for a rehearing was denied. June 21, 1924, reasons for denying a motion for a rehearing were filed. June 21, 1924, a claim of appeal to this court was filed. In the certificate of the circuit judge attached to the record appears the following:
“I hereby certify that the foregoing is a part of the proceedings, as presented at the hearing of said motion for new trial in said cause. * * * That the foregoing case as settled by me contains a part of the testimony in said cause, and proceedings relating to said motion for rehearing of the case, upon which the order was made.”
It is difficult to see how this court could intelligently decide whether the trial judge had abused his discretion in declining to grant a rehearing when some of the testimony which was before him is not before us.
There are other questions presented by the record which we do not pass upon.
The decree of the court below is affirmed, with costs to the appellee.
Clark, C. J., and McDonald, Bird, Sharps, Steere, Fellows, and Wiest, JJ., concurred. | [
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Sharpe, J.
For more than 30 years prior to the commencement of this suit a highway had existed in the defendant township known as the “Blackmer road.” One-naif mile south of the village of Ravenna, and at the intersection of sections 10, 11, 14 and 15, it crossed a stream known as Crockery creek. A new bridge had been erected over this stream in 1919 at a cost of about $4,000 in money and about $1,000 worth of labor, which was donated. There was a slight deflection in the course of the road at the point where the bridge was built. The stream ran southwesterly through section 15, and near the quarter line on the south the Ravenna-Conklin-Berlin Power Company had erected a dam across it. On January 25, 1923, an application was made to the highway commissioner of the township to discontinue that part of the highway “beginning at the section comer common to sections 10, 11, 14, and 15, thence south 400 feet.” A remonstrance, signed by 15 freeholders of the township, was filed. The commissioner denied the application. An appeal was taken by John A. Price, one of the men who had signed the petition, to the township board, resulting, by a vote of three to one, in the reversal of the order of the commissioner and the discontinuance as prayed for in the petition. This action was taken on February 24, 1923. On April 5, 1923, the plaintiffs, 20 in number, freeholders and residents of the township, filed the bill of complaint herein, reciting the proceedings taken and other facts which will be stated in the consideration of the proofs submitted, and praying for an injunction to restrain any action pursuant to such proceedings. A decree was entered granting the relief prayed for, from which the township appeals.
The dam of the power company was constructed after the new bridge was built in 1919. It is of sufficient height to provide for a 29-foot head of water and, if this be maintained, the water in the pond will overflow, not only the approaches to the bridge, but the bridge itself. Without doing so, but one-half of its power can be developed. Of the 15 who signed the petition for discontinuance, 12 were stockholders in the power company. Three of the members of the township board who acted on the petition were also stockholders, two of them being directors and officers.
That the stockholders of the power company were financially interested in the action taken, there can be no doubt. It clearly appears that a large sum must be expended in raising the bridge and its approaches if the 29-foot head is to be maintained. There can be no question but that the interest of the three members of the board who voted in favor of discontinuance disqualified them from acting in the matter. Wilson v. Township Board, 87 Mich. 240; Locke v. Highway Commissioner, 107 Mich. 631; Smith v. Hubbell, 142 Mich. 637; In re City of Rochester, 208 N. Y. 188 (101 N. E. 875, 47 L. R. A. [N. S.] 151, and note thereto on page 164). The action of the board was therefore a nullity.
It is urged that as the statute provides for an appeal from the action of the township board to the circuit court the chancery court had no jurisdiction. The proceedings to discontinue the highway were taken under chapter 86 of the Compiled Laws of 1915 (§ 4287 et seq.). We quote the applicable provisions relative to appeals:
“(4294) Sec. 7. Any person being a freeholder, or a holder of lands by homestead right within the township, who may conceive himself aggrieved by the determination of a commissioner in laying out, altering or discontinuing any highway, or in his award of damages, or in his refusal to lay out, alter or discontinue any highway, may, within ten days after such determination or refusal, appeal therefrom to the township board. * * *
“(4295) Sec. 8. * * * Any party or parties 'dissatisfied with the determination of such township board, either as to the value of the property taken or as to the determination upon the necessity for laying out, altering or discontinuing a highway, when the amount involved or damages claimed exceeds the sum of three hundred dollars, may appeal therefrom to the circuit court for the county in which said land is situated, and a return may be compelled and the same proceedings shall be had thereupon, as near as may be, and with a like effect as in cases of appeal from judgments rendered before justices of the peace, and the costs thereon awarded and collected in the circuit court in the same manner.” * * *
As has been stated, the petition asked for the discontinuance of only 400 feet of the highway. This included but a little, if any, more than the. bridge and its approaches. None of the plaintiffs owned lands abutting on this part of the highway. It is apparent that they had no right to take an appeal to the circuit court under the provisions of section 4295.
It is urged that plaintiffs have no such special and distinct interest in the proceedings to vacate the highway nor are they threatened with any such injury peculiar to themselves as entitles them to injunctive relief. Township officials are vested with certain powers by the Constitution and statutes. In laying out, altering or discontinuing highways, they can act only when petitioned to do so. They are then required to exercise their best judgment in determining the merits of the questions presented; whether the ' action requested should be taken. When they so act, it has, I think uniformly, been held by this court that their action may not be reviewed by a landowner who merely suffers inconvenience by the action taken except in the manner provided by statute. This rule is clearly stated in Tomazewski v. Palmer Bee Co., 223 Mich. 565, in which the earlier cases are cited. An exception to the rule would probably exist if fraudulent action on the part of the officials be charged. Toledo, etc., R. Co. v. Shafer, 190 Mich. 89, and cases cited. The plaintiffs are not here complaining of an improper exercise of judgment or an abuse of discretion on the part of the township board. They base their right to relief on the ground that the action taken was a nullity. The facts which render it so are not of record. They can be established only by proof aliunde.
The interest of the plaintiffs is shown in part by . the following facts: Several, if not all, of them donated a considerable amount of work towards filling the approaches when the bridge was built. The plaintiff Patterson owns a farm of 120 acres, on which he also conducts a retail grocery store, located, by the road in question, a distance of one and one-half miles directly south of the depot at Ravenna. If it be closed, he will be required to travel three miles to reach the depot. He makes from three to twelve trips to the depot each week, hauling in his hay and farm produce and hauling out the merchandise for his store. He testified that the road he must take if this be vacated is badly drifted in winter and almost impassable at times.
The plaintiffs have no adequate remedy at law. They could not obtain relief by application to the township officials, because it is their unlawful action of which they complain. Application to the law officers of the State or county would result in the delay incident to investigation. The bill alleges, and the answer admits, that defendants threaten “to act upon the authority of said proceedings.” Delay might result in the dismantling of the bridge and prevent its use for a considerable time. The plaintiffs have the lawful right to use this highway. The action taken, if enforced, will not only interfere with such right but terminate it for all time.
Under the record here made, we feel constrained to hold that the plaintiffs are entitled to the injunctive relief granted them.
In view of the conclusion reached, we do not find it necessary to pass upon the claim of plaintiffs that the law under which action was taken (Act No. 283, Pub. Acts 1909, 1 Comp. Laws 1915, § 4287 et seq.), so far as it relates to the vacation of highways is unconstitutional because the provision therefor is not within the title to the act.
The decree is affirmed, with costs to appellees.
Clark, C. J., and McDonald, Bird, Moore, Steere, Fellows, and Wiest, JJ., concurred. | [
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Wiest, J.
Plaintiff’s husband was foreman of the elevator plant of defendant bean company at Saginaw. In the plant were cement bins for storage of grains. Grains were elevated to and poured by spouts into the tops of bins through manholes. In the course of elevation of grains cyanide crystals were added to develop hydrocyanic acid gas in the bin to fumigate the grains and destroy vermin. Safety demanded that for 72 hours after such crystals were added no person should enter the bin, and plaintiff’s husband was aware of the prohibition. From time to time, as desired, small samples of grains were taken from bins and, for such purpose, a windlass was placed over the manhole of a bin and a person lowered into the bin.
August 15, 1934, plaintiff’s husband directed an employee to lower him into a bin containing rye, in which the poisonous gas-forming crystals had been placed the previous day. He took with him a large bag, into which he scooped 40 pounds of rye, and then seated himself on the stirrup attached to the windlass cable to be hauled up. When he was near the underside of the manhole the employee reached down to take the grain sack and the deceased toppled backward from the seat, fell about 12 feet to the grain in the bin and, when removed about 10 minutes later, was dead, evidently killed by the poisonous gas.
Plaintiff, as the widow and sole dependent of the deceased, applied for compensation which was denied by a deputy commissioner, and awarded by the department upon appeal on the ground that the death was caused by the effects of hydrocyanic acid gas and the accident arose out of and in the course of the employment. ( .
• Defendants prosecute review, claiming that the deceased entered the bin to procure grain for his own purpose and, whether so or not, he did not suf fer an accidental injury arising ont of and in the course of his employment but was guilty of intentional and wilful misconduct.
The coroner, who was also a physician and called by plaintiff, testified that he recorded the death as due to “cyanide acid gas.” This was based on what others related to him, but is binding upon the plaintiff, although objected to by defendants.
The employee who lowered the deceased into the bin was called by plaintiff and testified to the happening’s on the occasion mentioned. On cross-examination he testified:
“Q. And it is while this grain is being transferred from the cupola above to the bins below that it is being treated with this cyanide acid gas for the purpose of destroying any vermin, is that right?
“A. Yes, sir.
“Q. Now you were present when that system was first installed and the man came from Illinois and installed it and instructed you as to the proper procedure, you were present, and Mr. Waldbauer was present there also?
“A. Yes, sii.
“Q. You and Mr. Waldbauer — was anybody else there to receive instructions with reference to the treating of this grain?
“A. Not at that time.
“Q. All right, there were the two of you?
“A. Yes, sir.
“Q. You and Mr. Waldbauer were instructed at that time as to the proper method to pursue in the treatment of this grain, and informed of the action of the stuff that was put in there, and were instructed that no one should enter, for the purpose of removing samples or any other purpose, any of those bins for a period of 72 hours after that treatment had been put in, is that right?
“A. That is right.
“Mr. Reese: I object to that as being testimony equally within the knowledge of the deceased, and it is not admissible.”
Was the testimony of the employee of the corporation, relative to matters equally within the knowledge of the deceased, barred by the statute, 3 Comp. Laws 1929, § 14219, which provides:
“Nor 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 (or its assigns) shall any person who is or has been an officer or agent of any such corporation be allowed to testify at all in relation to matters which, if true, must have been equally within the knowledge of such deceased person.”
The witness was an employee and not an officer or agent of the corporation in any respect. His testimony was competent. Brennan v. Railroad Co., 93 Mich. 156; Krause v. Equitable Life Assurance Society of the United States, 105 Mich. 329; Wallace v. Fraternal Mystic Circle, 121 Mich. 263; Storrie v. Grand Trunk Elevator Co., 134 Mich. 297; Rousseau v. Brotherhood of American Yeomen, 177 Mich. 568.
The department found that:
“Sometime in 1933, the defendant installed a system which injected cyanide crystals into the spout which carried the grain into its bins in the elevator. In the bins the cyanide crystals developed cyanide gas which fumigated the grain and destroyed elements which tended to cause deterioration or destruction of the grain. It was shown that the deceased was present during the installation of this system and must have known of the instructions given concerning its use. If he were not actually present, it may be reasonably inferred that due to his position he came to know of those instructions. ’ ’
Accepting the finding by the department that “from all the circumstances, it is a fair inference that the death of the deceased was caused by the effects of the cyanide gas,” was the department in error, in point of law, under the undisputed evidence, in also finding “that the accident arose out of and in the course of employment?”
Defendants contend that plaintiff’s decedent was guilty of intentional and wilful misconduct in entering the bin during the period he knew the lethal gas was operative.
The department found that:
“Wilful and intentional misconduct cannot be ascribed to the acts of the deceased.”
The bin had been filled with grain just the day before and, at the very time the deceased entered the bin, the fact of gas therein was discussed between the deceased and his helper. Entering* the bin while the gas was operative as a death-dealing* agency was an act of volition on the part of the deceased, contrary to the course of his employment, warned against, and prohibited by every sense of self-preservation. Such an entry involved more than mere negligence; it was intentional and wilful and in reckless disregard of consequences. It was suicidal. A prohibited risk, when voluntarily assumed, with knowledge of easily apprehended fatal consequences is not an incident of employment, and an injury, so received, is not an accident arising out of and in the course of employment. The gas in the bin was lethal, known to he such, for its killing properties were the only reason for its employment. Plaintiff’s decedent was guilty of intentional and wilful misconduct, and compensation is barred by 2 Comp. Laws 1929, § 8418.
What we have said is supported by the opinion and authorities cited in Gacesa v. Consumers Power Co., 220 Mich. 338 (24 A. L. R. 675). See, also, Anderson v. Russell Miller Milling Co., 196 Minn. 358, (267 N. W. 501), where the same kind of gas was used to fumigate a mill.
The award is vacated, with costs to defendants.
North, C. J., and Fead, Butzel, Bushnell, Sharpe and Tot, JJ., concurred. Potter, J., did not sit. | [
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Fead, J.
Plaintiff had judgment for negligent personal injuries on trial before a jury.
About 9 o’clock in the evening of March 4, 1932, defendant, with plaintiff and Ingraham as guest passengers, drove from Plainwell to Cressey to attend a dance. There being no dance, they started back toward Plainwell. When near a crossroad, River Road, defendant suggested they go to Kalamazoo. Iiis passengers objected but, nevertheless, he turned into River Road with the remark that his guests were going to Kalamazoo whether they wanted to or not and he was going to give them a ‘ ‘ ride. ’ ’
For a distance, River Road is gravel. Driving at .50 to 60 miles per hour they came to a bridge, not level with the road but higher. The car bounded over to the side of the road. They approached a second bridge at 70 to 75 miles per hour and bounded off the side of the road but defendant righted the car and proceeded. The passengers asked him to slow down.
The road beyond is tarmac, a gravel road treated with oil or asphalt to produce a hard surface. For some two miles the hard top is 14 to 16 feet wide, with 2-foot gravel shoulders; beyond, and at the point of the accident, it had been treated for a 9-foot hard center with 6-foot gravel shoulders. However, by wear, the edges of the whole pavement had become ragged, with chuck holes, and had reduced the hard top width. The gravel shoulders had been worked over the edges. At the point of the accident the hard center was 7 to 9 feet wide. The top of the road was irregular and wavy and the center rounded higher than the sides.
After passing the second bridge defendant continued to drive at a speed of 70 to 80 miles per hour; the car “jumped” or “galloped” or “danced” over the road on striking wavy spots and three or more times bounded to the side of the road and partly off the pavement so defendant had difficulty in getting back upon it. At one time, when it looked as though the car was going into the ditch, plaintiff asked him to slow down but he continued at the high rate of speed.
After rounding a slight curve, the passengers saw a car some 1,000' feet beyond, headed in the same direction on the right side of the road, and stopped or going slowly. Defendant continued to drive on the right side and directly at the car (except that the car ahead ran partly off the pavement to permit him to pass) until about 100 feet from it, when he swerved to the left, passed the car with his left wheels on the gravel shoulder, his car began to “whip” or swerve from, side to side and finally rolled over, injuring plaintiff. After the accident, defendant said that he drove at the car ahead to scare his own passengers and also that he thought there were a couple of.“neckers” in the car ahead and he wanted to scare them but “guessed he did’nt turn out soon enough. ”
Defendant did not take the stand.
The question is whether the testimony raised an issue of fact upon the “gross negligence or wilful and wanton misconduct” of defendant under the guest act, so-called (1 Comp. Laws 1929, § 4648).
This court has held that excessive speed alone is not such misconduct. Keilitz v. Elley, 276 Mich. 701. But it has not held, nor could it hold, that excessive speed is not an element thereof to be considered in connection with other circumstances.
The road itself possessed danger apparent to any careful driver. Aside from its roughness, the slope from the center down to the sides would naturally tend to cause a ear to swerve off the pavement, especially on crossing the center. Driving a car over such a road at 70' to 80 miles per hour would justify a finding of negligence.
If, by taking his passengers for a “ride,” defendant intended a journey indicated by the underworld use of the word but somewhat modified in common acceptation, he started the trip with a state of mind which included at least some degree of wilful recklessness. To this there were not only the added after-element that defendant had warning of the danger of losing control of his car on account of excessive speed, both orally from his passengers and actually from his own experience, but also the showing that the accident itself arose out of an affirmatively reckless state of mind, a deliberate intention to depart further from careful driving or even negligent driving and to increase the existing danger for the purpose of scaring his passengers and occupants in the car ahead. The jury was justified in finding him guilty of wilful and wanton misconduct. Schneider v. Draper, 276 Mich. 259; Wolfe v. Marks, 277 Mich. 154; Lucas v. Lindner, 276 Mich. 704.
Holmes v. Wesler, 274 Mich. 655, and other cases relied upon by defendant are distinguishable for lack of prior warning, lack of continuous negligence and wilful misconduct or lack of actual intention to chance greater peril on an already known dangerous road.
Defendant, however, argnes that the accident was not due to any condition of which he had had prior warning, i. e., that it did not occur when at a bridge nor from his car jumping around on the rough pavement. The obvious answer is that the testimony enabled the jury to find that the accident was caused by the car bounding on a rough pavement, due to excessive speed, plus, and aggravated by, defendant’s attempting a new act of misconduct which could not have failed to increase the danger of which he had had prior warning.
Affirmed, with costs.
North, C. J., and Wiest, Butzel, Bushnell, Sharpe and Tot, JJ., concurred. Potter, J., did not sit. | [
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Fead, J.
August 31, 1929, Wolok sold premises in Detroit to Trongo on contract reciting down payment of $1,000 and balance of $7,500, payable at $65 per month.
April 10, 1930, Wolok sold his vendor’s interest to plaintiff Kean for $5,900. The transaction was handled for plaintiff by his son Sam, a sort of general agent for his father, with power of attorney, with broad experience in real estate and land contract transactions, who impressed the circuit court as being a businesslike gentleman and whom the court doubted could be defrauded in the manner claimed in the record. Defendant Rossen handled the transaction as salesman for Wolok, the latter having no personal contact with Kean.
Sam Kean examined the property and relied upon his own appraisal of its value. He talked with Trongo to ascertain whether he was satisfied with the contract and to find out his financial condition and the probabilities of his making the payments. He claimed both Rossen and Trongo told him the down payment of $1,000 had been made. Both denied making the statement.
In May, Kean was told by Mrs. Trongo that the down payment had been only $150. He claims he complained to Wolok of having been defrauded, offered the deed and assignment back, and demanded return of his money but Wolok refused to let him into the house and told him he was out of luck. Wolok denies that any deed was tendered to him.
Kean made three payments on the mortgage and continued to collect from Trongo until May, 1932. Thereafter he served some notices of forfeiture or to quit on Trongo and, in November, 1932, Trongo surrendered the contract to Kean and about that time became a voluntary bankrupt.
In December, 1932, Kean commenced this suit for damages for fraudulent misrepresentation that the down payment on the original contract was $1,000. On trial before tbe court without a jury, defendants had judgment.
At the trial Wolok and Trongo admitted the down payment was only $150, but claimed that, at the time of execution of the contract, the premises were not improved, they needed fencing, sodding, garage, window shades, etc., and that they agreed that Trongo should do the work and have credit for $850 on the contract, to be included in the down payment. The improvements were made before the sale to plaintiff but the cost of the garage, grading, sodding and fencing, aggregating $500; constituted the only testimony of the amount expended. The court accepted defendants ’ claim of the manner in which the down payment was made up.
The case is one in which a view of the witnesses would be particularly valuable. As it appears on the printed page, the testimony conveys few substantial impressions of fraud. The most definite impression we have is that Kean purchased the contract on his own judgment and not in reliance oh any representations, oral or written, of any defendants. Consequently, as plaintiff has the burden of proof, we cannot hold that the judgment for defendants was against the weight of the evidence. Nor do we find anything in plaintiff’s showing on motion for new trial which could affect the outcome.
Affirmed, with costs.
North, C. J., and Wiest, Butzel, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit. | [
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Bushnell, J.
This is an appeal from a declaratory decree which determined that Act No. 167, Pub. Acts 1933, as amended by Act No. 77, Pub. A.cts 1935, the “general sales tax act,” is not applicable to the sale of gas and electricity by municipalities from municipally owned and operated utilities.
The title of the cause is sufficient to identify the parties. The city of Lansing and the village of Lowell own and operate electric plants within their respective boundaries; the city of Wyandotte owns and operates a gas and an electric plant.
While defendant board’s interpretation of the act is entitled to consideration, that interpretation is not binding upon judicial tribunals. Boyer-Campbell Co. v. Fry, 271 Mich. 282, 296 (98 A. L. R. 827).
Notwithstanding this well-recognized rule of law, it is of more than passing interest to note that following the enactment of the general sales tax act, defendant board adopted a resolution on July 20, 1933, which declared water, gas, and electricity to be non-taxable under this act if sold by municipal public utilities.
Over two years later, on September 15, 1935, the board reversed its declared position and held snch sales to be taxable nnder the act.
We have held that proceedings nnder tax laws mnst be closely scrutinized and strictly construed. McVannel v. Pure Oil Co., 262 Mich. 518, 522.
“Tax exactions, property or excise, must rest upon legislative enactment, and collecting officers can only act within express authority conferred by law. Tax collectors must be able to point to such express authority so that it may be read when it is questioned in court. The scope of tax laws may not be extended by implication or forced construction. Such laws may be made plain, and the language thereof, if dubious, is not resolved against the taxpayer.” In re Dodge Brothers, 241 Mich. 665, 669.
This rule is cited with approvel in Michigan Trust Co. v. City of Grand Rapids, 262 Mich. 547 (89 A. L. R. 840); J. B. Simpson, Inc. v. O’Hara, 277 Mich. 55, and Montgomery Ward & Co. Inc., v. Fry, 277 Mich. 260, the last two being sales tax cases.
The trial judge said:
“Counsel for defendants point out that exemptions from taxation are, as a general proposition, to be strictly construed. There is no question, of course, as to this rule of interpretation of legislative enactments. It has, however, no application to the case at bar. The question here is not whether municipalities are exempted from the application of the sales tax law because of specific provisions therein, after having been included by the use of general terms. Rather the query is whether there is any inclusion of municipalities. When a subject or object to which a tax may be applied is once included within the purview of a legislative measure the presumption is that it is not to be removed unless an intention to grant an exemption is clearly indicated. However, in determining what objects or subjects are so included the rule of strict interpretation must be observed, there being no inference or presumption that the legislative body intended to include other than the persons or objects described. ’ ’
In an inheritance tax matter, we said:
“It is also recognized as a general rule, supported by abundant authority, that the provisions of statutes of this nature, imposing a special tax, are not to be extended by implication beyond the clear import of the words used, since it is the duty of the taxing power to express the intent to impose such special burden in clear and unambiguous language (Eidman v. Martinez, 184 U. S. 578 [22 Sup. Ct. 515]; English v. Crenshaw, 120 Tenn. 531 [110 S. W. 210, 17 L. R. A. (N. S.) 753, 127 Am. St. Rep. 1025]; 37 Cyc. p. 1556).” People, ex rel. Attorney General, v. Welch’s Estate, 235 Mich. 555, 564.
Appellant argues that plaintiffs are included because the act says “the term ‘person’ includes any * * * corporation” and because 1 Comp. Laws 1929, §76, reads:
“In the construction of the statutes of this State, the following rules shall be observed, unless such construction would be inconsistent with the manifest intent of the legislature, that is to say: * * *
“(12) The word ‘person’ may extend and be applied to bodies politic and corporate, as well as to individuals. ’ ’
See authorities therein annotated, none of which apply the word “person” to municipalities in the manner urged by appellant.
The act, (Act No. 167, Pub. Acts 1933, as amended by Act No. 77, Pub. Acts 1935) after defining the retail sales included, says, section 1 (b. 2):
“The term ‘sale at retail’ includes sales of electricity for light, heat and power and sale of natural and artificial gas when made to the consumer or user for consumption or use rather than for resale.”
The tax is not imposed upon the consumer, but upon those “engaged in the business of making sales at retail as hereinbefore defined,” etc. (Section 2).
The word “municipality” does not appear in the act nor does the language of the act indicate that the legislature had municipally owned and operated utilities in mind when the law was enacted. On the contrary, it would appear from some of the provisions of the act that it can hardly be supposed that it was considered that self-governing municipalities were within its purview. A registration fee of $1 per year as a privilege tax is imposed on those conducting “such business” and a license is issued therefor. (Section 3.)
We denied the right of the city of Detroit to tax property owned by the State whether or not used for governmental purposes, quoting 4 Dillon on Municipal Corporations (5th Ed.), § 1396.
“The sound principle is that property owned by the United States, by a State or by a municipality for public uses, is not subject to be taxed unless so provided by positive legislation.” People, ex rel. Auditor General, v. Ingalls, 238 Mich. 423.
“The general sales tax is a privilege tax imposed upon the privilege of making retail sales, measured by tbe gross proceeds of such sales.” C. F. Smith Co. v. Fitzgerald, 270 Mich. 659, 686.
The power of municipalities to own and operate public utilities is found in the Constitution of 1908, art. 8, § 23, which reads:
“Subject to the provisions of this Constitution, any city or village may acquire, own and operate, either within or without its corporate limits, public utilities for supplying water, light, heat, power and transportation to the municipality and the inhabitants thereof; and may also sell and deliver water, heat, power and light without its corporate limits to an amount not to exceed twenty-five per cent, of that furnished by it within the corporate limits; and may operate transportation lines without the municipality within such limits as may be prescribed by law; Provided, That the right to own or operate transportation facilities shall not extend to any city or village of less than twenty-five thousand inhabitants. ’ ’
That municipally owned and operated utilities are public properties was clearly established in City of Traverse City v. Township of Blair, 190 Mich. 313 (Ann. Cas. 1918E, 81) and we denied the right of the township to tax such property. We recently cited this case as controlling in Township of Geneva v. City of South Haven, 261 Mich. 192, where a township sought to recover taxes assessed against the power lines of a city.
The well-established rule of exemption of municipal property from general taxation should carry over to the sales tax; especially is this true when we do not find any positive language in the sales tax act imposing this privilege tax upon municipalities.
The general sales tax act provides (section 12 [a]) that the collection of the tax may be enforced by levy and sale of “property of the taxpayer used in connection with the business for the privilege of doing which the tax is levied.” The act also provides (section 12 [b]) for actions at law “to collect and recover the amount of taxes, interest and/or penalties due from any taxpayer.”
The trial judge said in his opinion:
“Counsel for defendants concede that such remedy is not adapted for use against a municipality, but the fact remains that the legislature has in terms indicated its application, or possible application, in all cases where any taxpayer, subject to the provisions of the act, fails to meet the burden imposed on him, or on it. If municipalities are in fact subject to the payment of the tax on sales of gas or electricity made by them then this remedy in terms applies to the collection. The fact that another remedy by way of suit is also provided for, and would quite probably be adopted, does not change the situation in so far as the interpretation of the act is concerned. It is scarcely conceivable that, had the legislature considered that this act was applicable to municipalities it would have provided the first named remedy for enforcement of the collection of the tax without exempting municipalities from the application of such remedy.”
The lower court said earlier in its opinion:
“As above pointed out the defendant board, following the enactment of the statute of 1933, took the position that sales of gas and electricity by municipalities were not subject to the tax. This interpretation was followed for over two years, until the month of September, 1935. In the meantime the legislature at the regular session of 1935 passed certain amendments to the act. Section 1 was amended by Act No. 77, Pub. Acts 1935, but no change in the definition of the term ‘person’ was made. Specific inclusion of municipal corporations was not declared. Obviously the legislature was satisfied with the interpretation of the act that the board was then observing in so far as municipalities were concerned. This is particularly significant in view of the fact that the obvious purpose of the amendments made in 1935 was to clarify the statute and to alter it in certain particulars because of the manner in which it has been interpreted by the defendant board and b3^ the courts. Act No. 77 was given immediate effect, and therefore was in force in September, 1935, when the defendant board undertook to change its prior ruling. In consequence we are concerned in the instant' case with section 1 of the sales tax act as amended at the session of 1935. The conclusion would seem to be unavoidable that the legislature enacted the amended section in the light of the executive interpretation placed on the original act.”
An examination of the provisions of the general sales tax act requires the conclusion that it is not applicable to the sale of gas and electricity by municipalities from municipally owned and operated utilities because such “persons” and “sales at retail” are not included within the general or specific terms of the act.
We are therefore in accord with the conclusions reached by the trial judge, who said:
“The legislature did not intend that municipalities should be subject to the payment of the specific tax under the act in question. Such conclusion renders it unnecessary to consider the constitutional questions raised and urged on behalf of the plaintiffs.”
The decree is affirmed, but without costs, this being a public matter.
North, C. J., and Fead, Wiest and Btjtzel, JJ., concurred. Sharpe; Potter and Toy; JJ.? did not sit, | [
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Toy, J.
Plaintiffs and appellants are common and contract motor vehicle carriers operating over the highways of this State under permits issued by the Michigan public utilities commission. They operate many motor trucks, tractors, trailers and semi-trailers in their business.
In their bill of complaint they attack the constitutionality of Act No. 321, § 3, Pub. Acts 1923 (1 Comp. Laws 1929, § 4759), as amended by Act No. 253, Pub. Acts 1933, which reads as follows:
“Sec. 3. Restrictions as to size. No motor vehicle, trailer or semi-trailer hereafter operated upon the public highways of this State shall have a gauge of more than seventy-six inches measured from center of tire to center of tire, nor shall be more than ninety-six inches wide, over all including load, excepting that on vehicles now equipped with solid tires, the ninety-six inches may be exceeded by the lateral projection of pneumatic tires beyond the rims of the wheels for such a distance on either side of the vehicle as will not increase its outside width beyond one hundred two inches when such solid tires have been replaced with pneumatic tires, and excepting further that the limitations as to width of vehicles shall not apply to farm tractors and to implements of husbandry temporarily propelled or moved upon the public highway, .nor shall any vehicle be more than twelve feet six inches in height, over all including load, nor more than thirty-five feet in length, nor shall any motor truck or tractor or other motor propelled vehicle haul more than one trailer and one semi-trailer at any one time; nor shall the aggregate length of the propelling truck or other motor propelled vehicle and the trailers or semitrailers as loaded exceed fifty feet: Provided, however, that in special cases vehicles whose dimensions, including loads, exceed the foregoing may be operated under written permits granted by the author ities having jurisdiction and control over the roads on which it is desired to operate such vehicles; such permits, however, shall not be given for more than one trip and in no case shall a permit be valid longer than ten days from the date of issue: Provided further, that every motor vehicle registered with and licensed by the secretary of State and in operation prior to the time this act takes effect may be continued in use by the owner thereof during the life of such vehicle, but in no event beyond the first day of January, nineteen hundred thirty-six.”
They contend that the proviso as quoted above in italics constitutes an unwarranted delegation of legislative power and is therefore contrary to that part of article 5, § 1, of our State constitution, which reads as follows :
“The legislative power of the State of Michigan is vested in a senate and house of representatives.”
Appellants in their briefs concede the right inherent in the State, in the interests of public safety and in the exercise of its police powers, reasonably to control its public highways.
They contend, however, that because the words “special cases” were used in the above quoted proviso, without any legislative definition as to what shall constitute a “special case,” the proviso is void; that the term “special cases” has no commonly accepted signification and that without a legislative definition of it, an arbitrary delegation of legislative power is conferred upon the executive authorities to grant or refuse a permit at their will.
The trial court did not determine whether the portion of the statute contained in the proviso above italicized was constitutional, but held that such proviso could be severed from the act without affecting the validity of the remainder of the statute, and it thereupon dismissed the bill of complaint, from which order plaintiffs have appealed.
In Argo Oil Corp. v. Atwood, 274 Mich. 47, Mr. Justice Fead speaking for the court in relation to the question of delegation of legislative power, and regarding statutory construction, says
“It is too well settled to need the citation of supporting authorities that the legislature, within limits defined in the law, may confer authority on an administrative officer or board to make rules as to details, to find facts, and to exercise some discretion, in the administration of a statute. The difficulty is in determining whether the limits are sufficiently defined to avoid delegation of legislative powers. Exhaustive annotations of the general subject will be found in 12 A. L. R. 1435; 54 A. L. R. 1104; 92 A. L. R. 400. * * *
“If it be possible, we must construe the statute to render it valid, not invalid, to confer administrative, not legislative, power * * * and as vesting * * * discretionary, not arbitrary, authority. Also, we must read the statute as a whole, not isolate the proviso and construe it without reference to the rest of the act. ’ ’
Applying, then, these outlined rules of construction and following our holding as stated in the foregoing cited case we are confronted in the instant case with the question of whether the authority delegated by the proviso of the statute here involved is administrative or legislative. If the latter, then the portion of the statute covered in the proviso is unconstitutional — if administrative, then the act is constitutional.
In making such determination, we think it should be stated at the outset, that a distinction exists in the cases, between the rule as applied to the regulation of activities carried on as inherent and traditional rights, and that applied in cases involving the regulation of privileged activities.
This distinction was pointed out by Mr. Justice Wiest in Samuels v. Gouzens, 222 Mich. 604, which we think distinguishes the many cases cited by appellants from the one at bar. Here we have a statute regulating the use of our public highways. It is well settled that the legislature has the power to control and regulate the use of the highways, in fact, appellants in their brief so concede. It follows then that the use of these highways, especially for commercial purposes is a privilege rather than a right. 42 C. J. pp. 616, 617.
At first blush, it might seem that by the use of the term “in special cases” in the act, no standard or rule has been set up by which such power is to be exercised, and that, therefore, such deleg*ation vests purely arbitrary power in the executive authorities, thereby making it a delegation of legislative rather than administrative power. But a study of the act as a whole gives an entirely different impression.
Without an act such as this all types of vehicles with all sizes of loads might use our highways. The legislature by this act placed a definite prohibition against trucks and truck-trailer combinations exceeding certain lengths, heights and widths. We will take judicial notice that at the time of the passage of the act there were, as there are today, in daily operation upon our highways in this State, thousands of truck and truck-trailer combinations engaged in commercial activities. It is reasonable to presume, therefore, that the legislature, in order to provide for a safe and orderly flow of vehicular traffic saw the necessity of limiting the size of commercial vehi cles. It therefore barred those exceeding* a stated size, leng’th or width. The legislature, however, realizing that such a flat prohibition might occasionally result in undue hardship, placed in the hands of the administrative authorities a discretion to be exercised by them so as to allow the passage of trucks or truck-trailer combinations of greater height, width or length than that permitted specifically, when such a “special case” should appear, but at the same time it restricted the number and duration of such special trips.
In this modern age with its ever varying accomplishments and demands, it is easy to foresee that at times it may become necessary to transport such things as long steel girders, tanks of great height, grown trees, and even buildings over our highways, as well as numberless things of exceptional size. The legislature in its wisdom did not desire to prohibit the use of the highways to such exceptional or unusual commerce. But it did desire to prohibit the use of highways to oversize vehicles as a business or as a usual thing. To take care of the exceptional case, the special case, it gave to the proper authorities the administrative power to grant permits for such to use the highway, but restricted such permit to one trip only and for a limited number of days. It was stated in Mutual Film Corp. v. Industrial Commission of Ohio, 236 U. S. 230, 247 (35 Sup. Ct. 387, 393, Ann. Cas. 1916 C, 296):
“While administration and legislation are quite distinct powers, the line which separates exactly their exercise is not easy to define in words. It is best recognized in illustrations. Undoubtedly the legislature must declare the policy of the law and fix the legal principles which are to control in given cases; but an administrative body may be invested with the power to ascertain the facts and conditions to which, the policy and principles apply. If this eonld not be done there would be infinite confusion in the laws, and in an effort to detail and to particularize, they would miss sufficiency both in provision and execution.”
Other arguments of appellants in the instant case are, we think, completely answered by the balance of the opinion of the United States Supreme Court, above cited, part of which we quote:
“The objection to the statute is that it furnishes no standard * * * and * * * leaves decision to arbitrary judgment, whim, and caprice. * * * But the statute by its provisions guards against such variant judgments, and its terms, like other general terms, get precision from the sense and experience of men and become’ certain and useful guides in reasoning and conduct. The exact specification of the instances of their application would be as impossible as the attempt would be futile. Upon such sense and experience, therefore, the law properly relies. ’ ’
Decisions holding similarly in analagous cases to that before us are: State v. Wetzel, 208 Wis. 603 (243 N. W. 768, 86 A. L. R. 274), where the court said:
“It is essential to the practical administration of such a law that there be some such discretion vested in the highway authorities. It is impossible for the legislature to anticipate all of the very many details and contingencies that may arise in the handling of such a complex problem as regulating traffic upon the public highways. We see no constitutional objection to the law in this regard.”
See, also, Sproles v. Binford, 286 U. S. 374 (52 Sup. Ct. 581); Contract Cartage Co. v. Morris, 59 Fed. (2d) 437; Ashland Transfer Co. v. State Tax Commission, 247 Ky. 144 (56 S. W. [2d] 691, 87 A. L. R. 534); State, ex rel. Daniel, v. John P. Nutt Co., 180 S. C. 19 (185 S. E. 25),
We find no merit in the stated constitutional objection to the statute. The order of the circuit court dismissing the bill of complaint is affirmed, and the interlocutory injunctions dissolved, with costs to defendants.
North, C. J., and Fead, Wiest, Butzel, Bushnell and Sharpe, JJ., concurred. Potter, J., did not sit. | [
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Sharpe, J.
This is an appeal from the appointment of a receiver for the Liquidating Holding Corporation and the failure to grant a motion to dismiss plaintiff’s bill of complaint. Plaintiff filed a bill of complaint in which she states that she is the owner of 800 shares of the common stock of the Liquidating Holding Corporation which has lost its right to do business as a corporation by reason of the fact that its franchise has been forfeited for failure to file annual reports ■with the secretary of State’s office; that for the past two or three years the Liquidating Holding Corporation was solely in the hands of its secretary, A. S. Storm; that demands were made upon Storm for permission to examine the records of both of defendant companies and such demands were refused; that the Liquidating Holding Corporation was an offshoot of the Miller, Storm Company, Incorporated, and both companies were being managed by Storm who conceived a scheme of shifting assets at will from one company to another and through his failure to file annual reports succeeded in keeping* the stockholders of both companies without knowledge of their financial conditions; that plaintiff’s requests that stockholders’ and directors’ meeting's be called were ignored; that the directors of the companies failed to act and perform their duties for a period of two or three years prior to the filing of plaintiff’s petition; and that there were substantial assets that could be retrieved if a receiver was appointed.
The defendants filed an answer in which it is stated that the reason for not producing the statement demanded by plaintiff was on account of the lack of finances of the company; that no stockholders’ or directors’ meetings were called for the reason that there was no money to pay for the same; and that the defendant companies have large amounts of real estate.
The defendants also filed a motion to dismiss the bill of complaint in which they set up that the failure to file annual reports with the secretary of State was due to lack of finances; that the reason no meetings of the board of directors were held was that the board of directors by resolution regularly adopted dispensed with snch meetings; and that plaintiff is a minority stockholder, owning about three per cent, of the stock of the Liquidating Holding Corporation.
The trial court issued an order restraining the defendants from collecting or receiving or disposing of moneys, accounts and debts due and owing the defendant companies and enjoining' the officers of both defendants from selling’, assigning or incumbering any of the assets of either company. The court also appointed E. R. Stanton as receiver of both companies with full power to take possession of the assets and have full charge of the financial and business affairs of both companies. The .defendants Arthur Storm and Liquidating Holding Corporation appeal and contend that where the charges of a bill of complaint are fully met by the answer, it is improper for the court to appoint a receiver; that plaintiff’s remedy was mandamus to the corporate officers to furnish the information sought rather than the appointment of a receiver; and that plaintiff’s bill of complaint is defective, she not having exhausted the ordinary method of obtaining the relief sought.
In this cause, the bill of complaint was filed February 11, 1936, and on the same day an order to show cause with a restraining order was signed. On February 28, 1936, the summons was returned and filed showing service upon defendants. On March 4, 1936, an order was entered appointing a receiver; and on April 21, 1936, the defendants filed their answer and on May 13, 1936, defendants filed a motion to dismiss plaintiff’s bill of complaint. On May 26,1936, an amended order was entered continuing the appointment of a receiver for the Liquidating Holding Corporation and vacating the order appointing a receiver for the Miller, Storm Company.
We have examined the record, the charges in plaintiff’s bill of complaint, the answer and motion to dismiss by defendants and find that the appointment of a receiver was not made ex parte, but was made after defendants had an opportunity to fully answer the charges made by plaintiff. That the chancery court has power under such conditions to appoint a receiver is well established.
In Miner v. Belle Isle Ice Co. (syllabus), 93 Mich. 97 (17 L. R. A. 412), we held:
“A court of equity has the power, in case of fraud, abuse of trust, or misappropriation of corporate funds, at the instance of a single stockholder, to grant relief, and compel restitution; and this, too, without any showing that the directors have been requested, or the corporation has refused, to act, where the holders of the majority of the stock control the directorate, and are themselves the wrongdoers.”
See, also, Robinson v. De Luxe Motor Car Co. of New Jersey, 170 Mich. 163; Sant v. Perronville Shingle Co., 179 Mich. 42; and Freeman v. Mitchell, 198 Mich. 207.
“There is no doubt that in certain exceptional cases, such as relieving from fraud, or breach of trust, a court of equity may in its inherent power wind up the affairs of a corporation as an incident to adequate relief.” Edison v. Fleckenstein Pump Co., 249 Mich. 234.
In the case at bar plaintiff is an interested stockholder; she has an investment in the holding company of approximately $10,000; the assets of the holding company are largely comprised of vacant lots upon which taxes remain unpaid since October, 1930; the directors have failed to act so that the affairs of the holding company were left entirely in the hands of Arthur Storm who refused or neglected to give plaintiff any information concerning the affairs of the company; moreover, the record shows that through the nonaction of Arthur Storm and the board of directors, the Liquidating Holding Corporation lost its charter, all of which conditions give Arthur Storm the opportunity of manipulating the assets of the company to its detriment as claimed by plaintiff. Under such circumstances the appointment of a receiver was justifiable.
Decree affirmed, plaintiff may recover costs.
Fead, C. J., and North, Wiest and Butzel, JJ., concurred. Toy, J., took no part in this decision. Potter and Bushnell, JJ., did not sit. | [
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Wiest, J.
The city of Charlotte, in its public park, among playground equipment for children, provided a swing, constructed with timber posts set in concrete, notched at the tops to hold an iron crossbar about four inches in diameter and 16 feet in length, to which were attached, by chains, four swings. "While plaintiff’s decedent, a boy 11 years and 9 months of age, was using one of the swings a post broke off, the iron crossbar fell and fractured the boy’s skull and he died two days later. This case was brought to recover damages and defendant prosecutes review by appeal from a judgment in favor of plaintiff.
The swing was erected 14 years before the accident and the cause of the broken post was deterioration at its footing in the concrete which a proper inspection might have disclosed.
In denying a motion for judgment notwithstanding the verdict the circuit judge stated in an opinion:
“While it is true the power to establish and maintain parks as granted by the Constitution of the State, and the power or authority granted by the city charter of Charlotte are merely permissive, nevertheless it is a governmental function in this State and the municipality is not liable for injuries received by negligence of its employees or agents in the maintenance thereof.”
This states the rule in this jurisdiction. Heino v. City of Grand Rapids, 202 Mich. 363 (L. R. A. 1918 F, 528). See, also, Brink v. City of Grand Rapids, 144 Mich. 472; Wrighton v. City of Highland Park, 236 Mich. 279; Butler v. City of Grand Rapids, 273 Mich. 674.
This is also the rule in many other jurisdictions. See Epstein v. City of New Haven, 104 Conn. 283 (132 Atl. 467), where a boy was killed by the breaking’ of a support of a swing- on which he was playing in a public park, and Piasecny v. Manchester, 82 N. H. 458 (136 Atl. 357), where a child fell from a defective seesaw, maintained by the city in a public playground.
The circuit judge also stated:
“Did the fact that the swing in question was knowingly maintained in a faulty and dangerous condition by the defendant city, constitute an attractive nuisance and render the city of Charlotte liable by reason thereof ?
“I am of the opinion it did not.”
The court was right in so holding.
In Smith v. City of Iowa City, 213 Iowa, 391 (239 N. W. 29), the doctrine of attractive nuisance was invoked by the plaintiff therein and held wholly inapplicable. In that case the city established in a public park a combined teeter-totter and merry-go-round. A little girl was severely injured while playing thereon.
We quote from the opinion:
“The second count of the petition is based upon the so-called attractive nuisance doctrine. We dispose of this count first for convenience in discussion. It is alleged that the teeter-totter and merry-go-round had been permitted to get out of repair for a long, period of time and to be, and remain, in a condition dang*erous to children who sought to avail themselves of the privilege of using the device. The purpose of the establishment and maintenance of the park and of the particular, and perhaps other, devices therein was for the use and pleasure of children. Such was the only purpose for which the device complained of was installed. It was in its nature and purpose designed to be attractive to children. It, therefore, very clearly does not come within the definition of an attractive nuisance. Solomon v. Red River Lumber Co., 56 Cal. App. 742 (206 Pac. 498). Trespass is the basic requirement of an attractive nuisance. The very theory of an attractive nuisance is that the device or thing claimed to be such is, by its character or nature, calculated and likely to attract children on the premises, where they may suffer injury. Because of the attractive character of the instrumentality, the trespass is excused. * * * This court has always been reluctant to extend the doctrine of attractive nuisance. The park was designed as a recreation and playground, and, as such, intended to be attractive to the public. There is no theory suggested upon which the doctrine can be applicable to the facts of this case. Hensley v. Incorporated Town of Gowrie, 203 Iowa, 388 (212 N. W. 714).”
The circuit judge also stated:
‘ ‘Did the fact that the swing in question was knowingly maintained in a faulty and dangerous condition by the defendant city constitute a public nuisance, and render the city.of Charlotte liable by reason thereof, even though it was constructed and maintained by the city while in the exercise of a governmental function?
“I am of the opinion that it did constitute a public nuisance and render the city liable even though in the performance of a governmental function.”
Upon that bolding recovery was permitted.. In so bolding tbe circuit judge was in error.
If a municipality performed a governmental function in erecting tbe swing and “is not liable for injuries received by negligence of its employees and agents in tbe maintenance thereof, ’ ’ it is inconsistent to bold that recovery may be bad on tbe ground that such negligence of tbe employees or agents of tbe municipality in tbe maintenance of the swing constituted tbe swing a public nuisance. A city can act only through its officers or employees and if there was negligence in making inspection of tbe condition of tbe swing and not discovering tbe defective condition then there was but negligence in tbe maintenance and no liability.
Acts in tbe discharge of governmental functions which create a nuisance per se do not come within tbe immunity otherwise accorded. Want of care in maintenance, however, presents tbe question of negligence only, and not that of a public nuisance, which must rest on inherent danger even under the best of care.
Counsel for plaintiff cites Vanderford v. City of Houston (Tex. Civ. App.), 286 S. W. 568, to tbe effect that tbe rule of municipal exemption “should not apply where tbe negligence causing tbe injury is tbe affirmative negligence of the municipality, acting through its corporate officers, in creating a public nuisance or any essentially dangerous condition, or knowingly permitting such nuisance or condition to exist in a public park or other place where it is likely to cause injury. In such case it should not be held that tbe city, in creating or knowingly permitting tbe nuisance or dangerous condition to exist, was exercising a governmental function. ’ ’
Application of such rule would abrogate the established doctrine of governmental immunity by merely classifying as a nuisance the result of the negligence of the municipal agents and employees in the maintenance of a governmental instrumentality, and for which the city is not liable, to one of liability under another designation; or, in other words, immunizing the negligence but not the result. The holding in the Texas case is ingenious but not convincing.
As said in a note in reference to that case in 75 A. L. R. p. 1202:
“The objection to this manner of reasoning is that the same observations are applicable to any negligent or unlawful acts of a municipality, whether they give rise to a nuisance or not. It is certainly not ‘lawful’ for a municipality to inflict injuries upon a person by its negligence, although that person’s remedy may be imperfect. And if it is permissible to say that acts, for the sole and efficient reason that they give rise to a nuisance, are, therefore, not in the discharge of governmental functions, it would seem to be but a corollary that acts cannot be an exercise of governmental functions where they amount to negligence and inflict an unlawful injury upon anyone. And thus the entire rule of governmental-immunity would be destroyed.”
Plaintiff made no case and the judgment is reversed without a new trial, and with costs to defendant.
North, C. J., and Fead, Butzel, Bushnell, Sharpe and Toy, JJ., concurred. Potter, J., did not sit.
See Const. 1908, art. 8, § 22.—Reporter. | [
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Btjshnell, J.
In reply to an inquiry from defendant, Albert C. Fischer, a resident of Chicago, Raymond R. White, president of plaintiff company, called him at his summer home, about 12 miles from Harbor Springs. Defendant was interested in procuring an irrigation system and had addressed a similar inquiry to another manufacturer described, in the record as “The Skinner Irrigation Co.” A representative of the Skinner company had been there a day or so before and had obtained an order from Fischer, White was informed of this fact, It is defendant’s claim that before signing a written order for the purchase of an irrigation system from plaintiff, it was agreed that the White order would he ineffective unless the Skinner order could be cancelled.
White testified that the. contract was signed by Fischer at 11 o’clock in the morning of June 20, 1935, and that he immediately left defendant’s summer home and delivered a telegram for him at the telegraph office in Harbor Springs, from which place it was forwarded to Skinner. The record contains a copy of a telegram of cancellation addressed to Skinner and signed by Fischer, which was sent on the same day that defendant signed the White order.
The written order given White, details the materials required, provides that the price shall be $1,650, recites that a check for $825 is attached, and shows that the balance shall be due upon July 31, 1935. It also contains the following language:
“This order covers all agreements and is * * * not subject to cancellation except with our consent and upon terms protecting us against loss.”
The Skinner company replied by wire the same day that it was too late to cancel their order and informed defendant that shipment had already been made. At 4:59 p. m. that day defendant wired plaintiff:
“Cancel order Skinner shipped goods yesterday stopping payment on check sorry.”
It appears from the testimony of White that after he had delivered the Fischer-Skinner telegram to the telegraph office at Harbor Springs, he went to the nearby city of Petoskey and about a quarter after one called his Detroit office, directing them to commence work upon the order; it further appears that plaintiff company did make shipment of part of the equipment that afternoon. The remainder of the supplies were shipped a few days later, delivery being refused by defendant.
The check given with the White order on June 20th was dated June 24th. Plaintiff says:
“Mr. Fischer stated that the reason he was postdating the check was that it was necessary that he ■transfer additional funds to cover the check. That was the only reason he gave for postdating the check and that reason was acceptable to me. I was willing to accept the check as the down payment on the system.”
Fischer testified that White was informed about the Skinner order on the 19th and that later was told there wasn’t any chance of getting an order because he, Fischer, was tied up with Skinner, etc. The following morning, when Fischer was persuaded to give White a “tentative” order, he claims he asked White to incorporate this, understanding in the written order and was informed that it was not necessary because the order would not be effective unless the Skinner cancellation was accomplished. Fischer denied any representations about the bank account or bank balance and insisted that his commercial account was more than sufficient to cover the check. He claims that it was dated three days ahead to enable him to determine whether he could secure a cancellation from Skinner. Defendant’s statement of his account in the First National Bank of Chicago for the month of June, 1935, showing more than sufficient funds to cover the check, was received in evidence in support of this testimony.
Plaintiff’s suit for 'damages suffered by reason of breach of its claimed contract with defendant was heard before the trial court sitting without a jury and resulted in a judgment for defendant. A number of questions are presented by the appeal, some of which are not essential to this decision. The controlling question is whether parol testimony can be introduced to show that the White order was not to become operative until and unless the Skinner order was cancelled. The condition precedent rule, which we believe applicable herein, was stated generally in Rothstein v. Weeks, 224 Mich. 548:
' “The law is well settled that one who executes a contract may protect himself from liability by a distinct agreement that it shall not become operative, or recognized as delivered, until other parties execute it also, and parol proof of such agreement is not objectionable as tending to vary the terms of a written agreement, as it only goes to show that whatever its terms the instrument never had validity as a contract. Dikeman v. Arnold, 78 Mich. 455; Cleveland Refining Co. v. Dunning, 115 Mich. 238; Ada Dairy Ass’n v. Mears, 123 Mich. 470; Hodge v. Smith, 130 Wis. 326 (110 N. W. 192).”
Appellant admits the soundness of the rule, but contends that it does not apply to “a contract which on its face states that there is no condition resting in parol.” The writing itself does not malee this statement. We have heretofore quoted the exact language of the contract. The effect of the actual quotation is that if there be a contract, then the writing represents all that is contained in that contract.
It is sometimes difficult to make a clear distinction between an attempt to alter, vary, contradict, or add to a written agreement by parol, and a showing by oral testimony that a writing was never intended to bind the parties unless a condition precedent was fulfilled. No attempt was made in the instant case to alter, vary, contradict, or add to the writing, but oral testimony was offered in support of the proposition that there never was a contract. The distinction is real and not merely academic. The case presents a situation in which there was manual delivery of a writing which embraced all the provisions of the agreement, if there was a contract; but it .is insisted by defendant that whether the contract was to. come into being and whether its delivery be legal and binding depended upon the fulfillment of a condition precedent. The written stipulation of the order which states “this order covers all agreements” pre-supposes a binding contract inasmuch as only a binding contract could give life to the stipulation. Without such a contract, there is nothing to which the stipulation could be attached. It is an essential part of the contract, if there be one, and could only have force and effect after proof of the existence of the contract itself. It cannot be used to give life to something which had not as yet come into being.
“An agreement that a contract shall have no binding effect until the fulfillment of a condition or the happening of a contingency may be proved by parol and is enforceable. Rothstein v. Weeks, 224 Mich. 548; Cleveland Refining Co. v. Dunning, 115 Mich. 238; Ada Dairy Ass’n v. Mears, 123 Mich. 470; 22 C. J. pp. 1149, 1213.” Sharrar v. Wayne Savings Ass’n, 246 Mich. 225.
A comparable situation is found in Cleveland Refining Co. v. Dunning, 115 Mich. 238. In that case a written order somewhat similar to the one presented here was executed by defendant, except that this order did not contain a stipulation that “this order covers all agreements.” Testimony was offered to prove that it was understood between the parties “that it was to be obligatory only in case the defendants should be allowed to cancel a similar order previously given to the Standard Oil Company, but that they were not permitted to do this, and so informed the plaintiff.” The trial judge excluded this testimony, holding that the writing could not be varied by parol testimony. Upon appeal, we held such exclusion was error and said:
“The making and delivering of a writing, no matter how complete a contract according to its terms, is not a binding contract if delivered upon a condition precedent to its becoming obligatory. In such case it does not become operative as a contract until the performance or happening of the conditions precedent. Proving this is not an attempt to vary the terms of a writing admitted to have been executed and delivered with the understanding that it should take effect, as was the case in Phelps v. Abbott, 114 Mich. 88. See Bishop on Contracts (1st Ed.), § 170; Ware v. Allen, 128 U. S. 590 (9 Sup. Ct. 174).”
The Dunning Case, supra, is controlling notwithstanding the absence of the “covers all agreements” language in that contract, because, as we have pointed out, the stipulation can only be given life by the contract itself. Therefore that clause neither adds to nor takes away from the effect of either the general rule regarding parol testimony affecting written instruments or the rule regarding such testimony as to conditions precedent.
We have also held that the condition upon which a deed has been delivered and placed in escrow may be shown by parol testimony. Fulton v. Priddy, 123 Mich. 298 (81 Am. St. Rep. 201).
See, also, note in 32 A. L. R. at page 785 in the case of Travers-Newton Chautauqua System v. Naab, 196 Iowa, 1313 (196 N. W. 36), which is reported in fall at page 780, and the text in 10 R. C. L. pp. 1053, 1054, 1055.
The trial coart, in addition to holding parol testimony regarding a condition precedent was admissible, added the farther proposition that the contract had not been accepted in writing nor had any notification of acceptance thereof been given to defendant, citing Bronson v. Herbert, 95 Mich. 478.
We agree with appellant that the qaestion of acceptance is not involved and that the anthority cited by the trial coart is not applicable. The matter of acceptance coaid not become important antil after the cancellation of the Skinner contract had been effected, this being a condition precedent to the formation of the contract.
Appellant disagrees with the applicability of the rale in the case of Cleveland Refining Co. v. Dunning, supra, arguing that the proper rale of law is found in Frischkorn Real Estate Co. v. Hoskins, 226 Mich. 30, and New Prague Flouring Mill Co. v. Hewett Grain & Provision Co., 226 Mich. 35.
In the Frischkorn Case, the action was for damages arising oat of the breach of a contract for the exchange of real estate. Defendant claimed that the agreement was not binding and never became operative becaase it was execated and delivered apon a condition precedent that the defendant woald be able to secare a division of the mortgage apon his property. The opinion points oat that “snch an agreement woald be inconsistent with his nndertaking in writing and tend to vary its terms,” and since the alleged condition tended to add to and vary the agreement, it did not fall within the Dunning Case.
In the New Prague Flouring Mill Case, which was an action for breach of a contract for the sale of flour, defendant, a wholesaler, in an effort to avoid the agreement, offered testimony tending to show an oral understanding made with plaintiff’s agent to put on an advertising campaign in some of the cities in which defendant did business. It was the claim of defendant that the order for the purchase of the flour, which contained a “no further agreement” stipulation, was not to go into effect until the advertising campaign engagement was performed by plaintiff. We upheld the rejection of this testimony on the ground that such an agreement was collateral to the order and not within the rule of conditions precedent. We pointed out that if defendant’s proofs were accepted, they would add provisions to the contract and cause plaintiff to be obligated to do more than it had agreed to do in the written order.
In the instant case, no such attempt has been made; the agreement is complete within itself and that which was sought to be proved involved a matter wholly separate and apart from the order and not embraced within its terms. It was without and not within; it preceded and neither accompanied nor followed the contemplated sale of the irrig*ation equipment.
In the New Prague Flouring Mill Case, reference was made to Carney v. Hotchkiss, 48 Mich. 276, where plaintiff attempted to show a different price than that stated in the contract, and Hawley v. Dibble, 184 Mich. 298, where it was claimed that two parties named in a deed as husband and wife were not, in fact, such, at the time the deeds were made.
An analysis of any of the parol testimony cases cannot be clear unless one constantly keeps in mind the distinction between that -which precedes the making of a contract and that which it is claimed accompanies its operation or is affected subsequently by it.
The trial court did not err in admitting parol testimony tending to show a condition precedent to the formation of the contract and was correct in finding that the defendant had met the burden of establishing that condition. Since that evidence discussed herein was admissible, and since the court determined as a matter of fact that the parties had a preceding agreement regarding the cancellation of the Skinner contract, it must necessarily follow that because defendant did not succeed in securing a cancellation of the Skinner order, no contract was entered into between plaintiff and defendant.
The judgment is affirmed, with costs to defendant.
North, C. J., and Fead, Wiest, Butzel, Sharpe and Toy, JJ., concurred. Potter, J., did not sit. | [
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Sharpe, J.
Defendant, Henry Mellor, was tried and convicted in the recorder’s court of the city of Detroit, traffic and ordinance division, of the offense of driving a motor vehicle while under the influence of intoxicating liquor in violation of 1 Comp. Laws 1929, § 4695, as amended by Act No. 318, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 4695, Stat. Ann. 1941 Cum. Supp. § 9.1563). He was sentenced pursuant to 1 Comp. Laws 1929, § 4746, as amended by Act No. 318, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 4746, Stat. Ann. 1941 Cum. Supp. § 9.1615), as a second offender to a minimum term of 90 days, fined $100, and had his driver’s license revoked for a period of one year. It is to be noted that the case was tried before Honorable Mark D. Taylor, a circuit judge, sitting as a judge of the recorder’s court of the city of Detroit, traffic and ordinance division.
Defendant appeals from the conviction and sentence and contends that a circuit judge may not legally sit and hold court in the traffic and ordinance division of the recorder’s court of the city of Detroit. This question was decided in People v. Buckley, 302 Mich. 12, and we again affirm our opinion in that case.
Prior to trial, counsel for defendant made a motion to “dismiss” the information because the second offender charge was made more than six years after the first conviction. It is admitted that the first conviction was on January 21, 1935. The second offense was alleged to have been committed on April 27,1941. Defendant claims that the second offender action is barred by the six-year clause of the criminal statute of limitations (3 Comp. Laws 1929, § 17238, as amended by Act No. 144, Pub. Acts 1935 [Comp. Laws Supp. 1940, § 17238, Stat. Ann. § 28.964]) which provides as follows:
“An indictment for the crime of murder may be found at any period after the death of the person alleged to have been murdered; indictments for the crimes of kidnapping and extortion shall be found and filed within ten years after the commission of the offense; all other indictments shall be found and filed within six years after the commission of the offense; but any period during which the party charged was not usually and publicly resident within this State shall not be reckoned as part of the time within which the respective indictments shall be found and filed.”
We are not in accord with this theory. Whether the statute of limitations has run against the offense committed in 1935 is immaterial as defendant was not charged or prosecuted for that offense. He was charged and prosecuted only for the offense alleged to have been committed on April 27, 1941-. The former conviction was merely an additional fact or circumstance to be considered in imposing a severer penalty for the second conviction. Nor do we think the information is faulty because it does not contain two counts. The prior offense is not an element of the instant offense. It merely applies to punishment after conviction.
It is urged that the court erred in denying defendant’s motion to dismiss for lack of competent evidence by the prosecution at the close of the State’s case. The above motion was based on the claim that no one saw the defendant driving the car while it was in motion; and that there was no evidence that defendant was so intoxicated that his ability to drive was materially affected.
The record shows that there was no direct identification of defendant while his car was moving. However, the passenger in the car involved in the accident testified that the ear in which he was riding approached Grand Biver avenue in the city of Detroit and stopped for the traffic light to change when a car coming around the corner hit the left rear fender of witness’s car. Witness then got out and approached the “striking” car. He testified as follows:
“Q. Did you see who was driving that other car?
“A. Yes, sir.
“Q. Do you see that man in court here today?
“A. Yes, sir.
“Q. Will you point him out?
“A. Second man (indicating).
“Mr. WisoTc: Will the record show that the witness indicates the defendant Henry Mellor.”
In our opinion there was evidence to warrant a finding that defendant was operating the car at the time and place in question.
On the question of intoxication there was evidence of odor of liquor on the breath of defendant, evidence that he was unsteady on his feet, and evidence that he was under the influence of liquor to such an extent that it would materially affect his ability to drive an automobile. In our opinion there was competent evidence from which a trial judge could and should have denied defendant’s motion to dismiss.
It is next urged that the sentence is null and void because the trial court exceeded its power in imposing sentence. It is conceded by the prosecuting attorney that the trial court exceeded its power in revoking defendant’s driver’s license. The imposition of an excessive sentence does not void the sentence. See 3 Comp. Laws 1929, § 17352 (Stat. Ann. §28.1094).
In Re Probasco, 269 Mich. 453, we said:
“The revocation of an operator’s license under section 18 (Act No. 91, Pub. Acts 1931, as amended by Act No. 196, Pub. Acts 1933) is not a criminal penalty. It is not a part, of the sentence of tbe court and it is not a punishment for the offense.”
The proper proceeding is to remand to tbe sentencing court for a proper sentence. See People v. Farrell, 146 Micb. 264; People v. Baum, 251 Mich. 187 (70 A. L. R. 98).
Tbe judgment is affirmed, but tbe recital in tbe judgment that defendant’s driver’s license is revoked for one year will be stricken and tbe remainder of tbe judgment affirmed and remanded for execution of judgment.
Chandler, O. J., and Boyles, North, Starr, Butzel, and Bushnell, JJ., concurred. Wiest, J., did not sit. | [
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Boyles, J.
Bill of complaint was filed seeking construction of a will, a determination of the amount still unpaid to plaintiff and a lien to secure the payment thereof, and that defendants be restrained from prosecuting a hearing on final account in probate court.
Plaintiff was the wife of Fred B. Phillipson, now deceased, testator of the will in question. In 1920, three brothers, Herbert E., Irving J., and Fred E. Phillipson, formed a copartnership under the name of Phillipson Clothing Company. In December, 1922, they executed separate wills containing identical provisions relative to their interests in the clothing company. Fred E. Phillipson died in 1929, his will was admitted to probate, his brothers, Herbert E. and Irving J. Phillipson, qualified as executors and are still acting as such. The estate has not been closed.
His will divides his assets into two classes: (1) His one-third interest in the clothing company; and (2) all other property. We are concerned only with his share in the clothing company. That part of his will is as follows:
“Third, subject to the conditions, provisions and limitations hereinafter specified, I do hereby give, devise and bequeath unto my two brothers, Herbert E. Phillipson and Irving J. Phillipson, jointly, and who are hereinafter known and de scribed as ‘Trustees,’ all of my Phillipson Clothing Company assets, in trust, said provisions, conditions and limitations being hereby expressed-as follows:
“A. The said trustees shall, as soon as conveniently may be after my decease, prepare a complete inventory of all assets belong (ing) to the Phillipson Clothing Company, together with a statement of its liabilities, and shall in addition thereto, prepare a statement therefrom showing the value of my interest in said company, a copy of such statement showing the value of my interest in said company shall by them be given to my wife, Myrtle R. Phillipson, not later than six months after my decease.
“B. The s'aid trustees shall, not later than one year after my decease, pay to my wife, Myrtle R. Phillipson, the sum of $10,000 in cash or in securities acceptable to her, and the property herein conveyed in trust shall be charged with the payment of the sum herein mentioned.
‘ ‘ C. The said trustees shall be further obligated, and the property herein conveyed in trust shall be charged with the payment thereof, to pay to my wife; Myrtle R. Phillipson, on or before 15 years after my decease, the sum of $25,000, as follows: $1,500, or more at the option of said trustees, annually, the first payment to become due and payable one year after my decease, and annually thereafter until the entire principal sum of $25,000 above mentioned shall have been paid to her in full, together with interest upon the unpaid balance of said principal sum at the rate of five per cent, per annum, payable annually, the first payment of interest to be made one year after my decease. Upon the full payment of the sums of money herein mentioned, the property herein conveyed in trust shall be discharged of and from all further liability or charges under this trust conveyance.
“D. The said trustees shall, before assuming charge of the assets herein mentioned and subject to this trust, furnish to my wife, Myrtle R. Phillip- son, a surety company bond in the principal sum of $10,000, which said bond shall be conditioned upon the faithful performance by said trustees of their duties and obligations as herein specified.
“E. It is distinctly expressed that no liability shall attach to said trustees, either individually or severally, to make the payments to my wife, Myrtle R. Phillipson, as herein specified in subdivisions B and C of this paragraph, unless my share of such Phillipson Clothing Company assets at the time of my death shall be of an amount sufficient to enable them to make such payments, and in case such assets at the time of my death shall not be sufficient to cover such payments, then the provisions and conditions of this trust conveyance shall be carried out so far as it is possible to do so.
“F. Upon the complete performance by said trustees of the payments herein specified, and subject to the condition hereinafter expressed in subdivision G of this paragraph, I do hereby give, devise and bequeath unto my two brothers, Herbert E. Phillipson and Irving J. Phillipson, equally, share and share alike, all of the rest, residue and remainder of my Phillipson Clothing Company assets as described in this will.”
The two executors (defendants herein) caused an inventory to- be taken of the property of the clothing company and an appraisal to be made, in accordance with the provisions of section A of paragraph three of the will. They prepared a statement showing the value of the testator’s interest in the company and gave a copy to plaintiff as required by the will. The net value of the company assets were shown to be $105,133.24. The inventory and appraisal was duly filed in probate court. The interest of Fred E. Phillipson thus appeared to be slightly over $35,000.
Immediately after the death of Fred E. Phillipson, the defendants took over the control and management of the Phillipson Clothing Company and filed with the county clerk a new certificate of copartnership under the same name, giving the names of the copartners as Herbert E. and Irving J. Phillipson. At the same time, Herbert E. wrote the county clerk that on account of the death of Fred E. Phillipson the former copartnership had been dissolved. Thereafter, they did not consult with plaintiff regarding the business or its operation, or give her a statement of the profits or losses, although Herbert E. Phillip-son occasionally discussed with her the financial condition of the business. The company did not prosper. The ensuing years were a period of depression. The executors filed reports with the probate court but no hearing thereon was ever held or asked for until shortly before the present bill of complaint was filed in 1939. Proceedings in probate court have since been stayed.
Defendants appear to have considered themselves the owners of the business after the death of Fred E. Phillipson. Herbert E. testified that at that time he and Irving Phillipson owned the Phillipson Clothing Company subject to the obligations to plaintiff. The first annual account filed in probate court by the executors showed certain payments made to plaintiff, and that the amount due from Phillipson Clothing Company as of July 6,1930, was $21,950.09. Herbert E. testified that this was to explain the wish of his brother that there would be $35,000 in his estate. Further indicating the course pursued by defendants after the death of the testator, Herbert E. testified:
“We took the merchandise all together too 'high and some of the real estate too.”
The case presents two issues for our determination: (1) construction of the will; (2) accounting by defendants, if the will is construed to require defendants to pay plaintiff $35,000, and interest.
1. Construction of will. Plaintiff claims that the defendants accepted in 1929 the one-third interest of her husband in the copartnership assets; that they then became the owners subject to a trust in her favor; that, under the will, she has an equitable lien on these assets to secure the payment of the $35,000 provided for her by the will. Defendants deny any indebtedness, deny the existence of any lien, and claim that the ultimate liquidation of partnership assets shows that plaintiff has been overpaid. Defendants seek to charge plaintiff with losses on the inventory and appraisal, claiming it was excessive and did not properly depreciate the assets. Defendants also claim the business was in process of liquidation at a loss, and seek to charge plaintiff for a proportionate share of the loss. They claim that plaintiff has been overpaid $6,943.90. There is no question but that the value of the assets depreciated materially during the depression years, and defendants by cross bill seek to charge plaintiff’s interest under the will with such depreciation. Under their claimed construction of the will, plaintiff would receive considerably less than $35,000.
When Fred E. Phillipson died in 1929, the partnership was thereby dissolved. 2 Comp. Laws 1929, § 9871 (Stat. Ann. § 20.31). This prospect was undoubtedly in the minds of the copartners when they executed identical wills, for the evident purpose of allowing surviving partners to continue the business uninterrupted by the dissolution. Herbert E. testified that their purpose in making identical wills was:
“We three thought that was the best way to handle our business. All we thought at that time was that we would try to preserve the Phillipson Clothing Company, that we would try to carry it on because father had always carried it on, as a kind of monument to my father’s memory.”
When a partner dies and the business is continued without liquidation by the surviving partners, either with or without an assignment from the representatives of the deceased partner, but without any settlement of accounts as between the estate and the partnership continuing the business, unless otherwise agreed, the estate may have the value of the decedent’s interest at the date of dissolution ascertained, and shall receive an amount equal to the value of his interest in the dissolved partnership, with interest. 2 Comp. Laws 1929, § 9882 (Stat. Ann. § 20.42).
When a partnership is dissolved by death of one of the partners, it is the duty of the surviving partners to wind it up and in so doing are liable as fiduciaries. The surviving partners are in effect trustees of the assets of the deceased partner. Grigg v. Hanna, 283 Mich. 443. In the case at bar, the will expressly makes the surviving partners trustees of the testator’s interest in the partnership. It bequeaths the testator’s interest to them as trustees, requires them to do certain things, and charges his interest in the partnership with the payment of $35,000 to the testator’s widow over a period of 15 years, with annual interest.
There are only two possible constructions of this will :
If, as claimed by defendants, it does not bequeath the testator’s one-third interest to defendants and set up a trust charged with payment of $35,000 to the widow of the decedent, the only other disposition it makes of the testator’s interest in the partnership assets is to bequeath the same to plaintiff, absolutely. The will concludes the disposition of his interest in the partnership as follows:
“H. In the event of the failure or refusal of the trustees herein named to carry out and to comply with the terms of this trust conveyance, then and in that event, the trust conveyance herein made shall lapse and become null and void, and the property herein described as my Phillipson Clothing Company assets shall thereupon vest in and become the property of my wife, Myrtle R. Phillipson, under paragraph fourth of this will. ’ ’
Paragraph four gives plaintiff all the residue of the estate.
Nowhere in this record do we find any substantial ground for holding that defendants refused at the outset to accept and to comply with the terms of the trust. They have treated the testator’s one-third interest as passing to them absolutely. Immediately after the death of the testator they began to comply with the terms of the trust set up by the will. They paid plaintiff $10,000 in accordance therewith. For upwards of seven years they continued to make payments to her. In annual accounts filed in probate court they acknowledged plaintiff’s right to five per cent, interest on the deferred annual payments. Their entire course of dealing is consistent only with the theory that they accepted the trust. They took over the business as a new copartnership, continued to carry on the business as a going concern, borrowed money in the partnership name, sold assets, filed income-tax returns showing Herbert E. and Irving J. Phillipson as owners of the business. These things were not done as executors of the es tate of Fred E. Phillipson and no authority was obtained from the probate court for any of their acts. They gave plaintiff a statement of the value of her husband’s interest and made payments in accordance with the requirements of the trust. We conclude that the intent of the testator was to assign his interest in the copartnership to the surviving partners, in trust. The record clearly establishes that Herbert E. and Irving J. considered the will to that effect. The failure to qualify by filing a bond as trustees is no defense in a suit against them for construction of the will and an accounting. MacKenzie v. Union Guardian Trust Co., 262 Mich. 563. The conclusion is inescapable that defendants accepted the trust and became the owners of the naked legal title of the testator’s undivided one-third interest in the' partnership, charged with and subject to payment to plaintiff of $35,000, and interest, in accordance with the terms of the will.
The bill of complaint asks that a lien be declared in plaintiff’s favor to secure the payment of the amounts still unpaid. The will provides that “the property herein conveyed in trust shall be charged with the payment of the sum herein mentioned,” and, in requiring payment of $25,000 over a period of 15 years, provides ‘ ‘ the property herein conveyed in trust shall be charged with the payment thereof.” Plaintiff is entitled to the lien. The acceptance of a devise raises an implied promise to pay any charge attached thereto by the will. In Stringer v. Stevens’ Estate, 146 Mich. 181 (8 L. R. A. [N. S.] 393, 117 Am. St. Rep. 620, 10 Ann. Cas. 337), this court held that the testator’s son, by accepting the devise of a farm charged with an annuity to the widow, became liable to the widow for the amount thereof, upon the implied promise to pay the same created by the son’s acceptance. The facts involved in Stringer v. Stevens’ Estate, supra, were again before this court in Stringer v. Gamble, 155 Mich. 295 (30 L. R. A. [N. S.] 815). This court there held that a lien created to secure a charge on land may be foreclosed in event of failure to pay. This rule applies equally to personal property. In re Owen’s Estate, 138 Mich. 293.
We hold that defendants became obligated to pay plaintiff the sum of $35,000, with interest, at the time provided for in the will, and that the partnership assets may be charged with a lien to secure the balance of such payment. The decree may provide for foreclosure of the lien if payment is not made.
We are not in accord with the attempt to challenge the net value of the one-third interest shown in the statement‘given to plaintiff,, either by claim of mistake, failure of the appraisers properly to depreciate the assets, or by losses sustained in the business during the ensuing years. When the inventory was filed, and for some time afterward, plaintiff, as widow of the deceased, had the right to elect whether she would accept the provisions of the will. Relying on the value of the one-third interest shown by the statement, she accepted the provisions of the will. The defendants did likewise, and are now bound to comply with it.
2. Accounting. Under our construction of the will, the accounting is merely a matter of arithmetical computation. There is no dispute as to the amount defendants have paid plaintiff. It remains only to compute interest charges, and credit defendants for the payments made. Plaintiff may have a decree requiring defendants to pay forthwith any arrears of the annual $1,500 payments, and interest, and requiring defendants to make further payments in accordance with the will until the deferred payment of $25,000, and interest, as required by the will, lias been paid, on or before 15 years from tbe date of death of tbe testator. Plaintiff may have a lien on tbe assets of the copartnership to secure payment, with provision for foreclosnre if not paid.
Tbe decree is set aside and one may be entered in accordance herewith. Appellant to have costs of both courts.
Chandler, C. J., and North, Starr, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., took no part in this decision. | [
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Boyles, J.
(dissenting in part). Plaintiff, as administratrix of the estate of her father, seeks to recover a sum of money admittedly received by the defendant, St. Casimir’s Savings & Loan Association, either as a “deposit,” or an “investment” in membership certificates. Defendant Frank J. Kolodziejski was employed by the administratrix as attorney for the estate, and also, at the time this money was turned over to the savings and loan as sociation, was attorney for, and a director of, the association.
Plaintiff’s father, John Olitkowski, died intestate in 1929, leaving $2,196.64 on deposit in a Detroit bank, and about $1,500 in promissory notes receivable. The bank deposit could not be withdrawn without probating his estate and plaintiff employed defendant Prank J. Kolodziejski. A petition was filed in probate court and plaintiff was appointed and qualified as administratrix. Defendant Kolodziejski instructed nr advised plaintiff to withdraw the bank deposit and deposit it with the defendant association. This was done, through Kolodziejski; defendant association opened an account on its books under the name “Olitkowski Estate” and issued a passbook to plaintiff, containing the constitution and bylaws of the association. No certificates of membership were ever issued to plaintiff. Subsequent to the original “deposit,” Kolodziejski, acting as attorney for the estate, collected further sums for the estate, áll of which were credited to plaintiff on the passbook, together with several interest items. The passbook shows several items of sums withdrawn, and a balance of $2,295.30 due plaintiff on January 1, 1932. Plaintiff has received nothing since that date. The circuit judge gave plaintiff a decree against the defendants for that amount, together with interest at five per cent, per annum from that date. Defendants prosecute separate appeals.
The association admits its liability to the estate in some amount, but contends that the estate has no greater right than other shareholders. The association has been in process of voluntary liquidation since 1932 and apparently its assets are not sufficient to pay shareholders in full. As against the association’s claim, plaintiff insists that Kolodziejski and the association received the money illegally as a deposit, knowing that the administratrix could not legally deposit the estate’s money or legally “invest” it in the association’s membership certificates, and that a constructive trust results in favor of the estate.
Plaintiff never had any direct contact with anyone representing the association except Kolodziejski. His office was in the rear of the offices occupied by the association through which one would have to pass in order to reach his private office. Plaintiff’s “deposits” and withdrawals were all made through Kolodziejski. He never directed plaintiff to any other agent, officer or representative of the association, but handled all the transactions himself. He advised her to make the deposit in the first instance, as her attorney, and continued to act as such throughout the transactions.
In his brief and on the record, Kolodziejski invariably refers to the fund as a “deposit” in the association. Obviously, Kolodziejski, a well-informed attorney, must have known that the association could not accept a “deposit” of money. On the other hand, Kolodziejski must be charged with knowledge that the administratrix could not “invest” estate moneys, in membership certificates, at least without express approval by the .probate court (and none was obtained).
The estate was ready for distribution to the heirs in 1931, having been converted into money and all 'debts paid. Plaintiff contacted Kolodziejski to obtain the money for distribution and was told she would have to wait — that the association was obtaining a loan. In March, 1932, plaintiff filed her final account in probate court, showing a balance on hand, $2,326.18. The record does not show whether the probate court entered any order allowing-the account, although the circuit judge stated in his opinion it was allowed. Kolodziejski suggested she accept four passbooks of the association dividing the balance between the four heirs. This, the plaintiff declined to do. Thereafter, plaintiff continued to try to get the money to close the estate.. Kolodziejski proposed that plaintiff accept as security assignments of mortgages he had with the association. Finally, when plaintiff was cited by the probate court to close the estate, she employed other counsel and started two different suits against Kolodziejski for summary judgment against him as attorney, which were dismissed on the ground that the' matter should not be disposed of as a summary proceeding.
We assume that the defendant association was organized under Act No. 50, Pub. Acts 1887, as amended (3 Comp. Laws 1929, § 12134 et seq. [Comp. Laws Supp. 1940, § 12134 et seq., Stat. Ann. § 23.541 et seq.]). This act expressly prohibits the association from accepting “deposits,” directly or indirectly, and forbids engaging in the business of banking in any way. 3 Comp..Laws 1929, § 12170 (Stat. Ann. § 23.580).
Kolodziejski acted for the savings and loan association in its contact with plaintiff throughout this entire transaction. The savings and loan association is bound by his knowledge that it had no right to receive deposits, and that the administratrix had no right to invest estate money in its membership certificates. The record amply justifies the conclusion that the association must be held bound by the acts of Kolodziejski. Katz v. Kowalsky, 296 Mich. 164 (134 A. L. R. 179).
Constructive fraud, a term applied to a great variety of transactions which equity regards as' wrongful and to which it attaches the same or similar effects as those that follow actual fraud, has been evolved to designate what is essentially nothing more than the receipt and retention of unmerited benefits. Constructive trusts arise by operation of law to prevent injustice; fraud, active or constructive, is tbeir essential element, and they will arise whenever it becomes necessary to prevent a failure of justice. Equity will construct a trust where a person gains something he should not be permitted to hold in equity and good conscience through actual fraud, abuse of confidence, or questionable means. A constructive trust arises not from agreement but from operation of equities in order to satisfy demands of justice. A court of equity, in decreeing a constructive trust, is bound by no unyielding formula as the equity of the transaction must shape the measure of relief. A constructive trust is imposed not because of the intention of the parties but because the person holding the title to the property would profit by a wrong or would be unjustly enriched if he were permitted to keep the property. Constructive trusts are such as are raised by equity in respect of property which has been acquired by fraud, or where, though acquired without fraud, it is against equity that it should be retained by him who holds it. Union Guardian Trust Co. v. Emery, 292 Mich. 394.
Throughout the entire transaction, plaintiff was led to understand by .Kolodziejski that he was in effect the association and the matter was entirely intrusted to him by plaintiff, who was not versed in such matters. An attorney of much experience must be presumed to understand and be familiar with well-established principles of law. 2 Mechem on Agency (2d Ed.), p. 1778, § 2195. When an attorney undertakes the management of business committed to his charge, he thereby impliedly represents that he possesses such knowledge. 2- Mechem on Agency (2d Ed.), p. 1775, § 2193; 1 Thornton on Attorneys at Law, p. 553, § 314. Where an agent is invested with authority or discretion, it is against public policy for him to represent the other party in the transaction without full disclosure to both of his dual agency. Trost v. J. E. St. Clair Co., 250 Mich. 342. An attorney owes an undivided allegiance to his client and he cannot act both for his client and one whose interest is adverse or conflicting with that of his client in the same general matter unless the client consents after he has been given full knowledge of all the facts and circumstances. 5 Am. Jur. p. 296. We must hold Kolodziejski liable to the estate for any loss resulting from his conduct.
The association insists that plaintiff’s claim is barred by the statute of limitations, or by equitable estoppel. Passing the question whether this defense is properly raised by the pleadings, or on this appeal, mere lapse of time, without showing prejudice, will not constitute laches.
Plaintiff administratrix has been diligent in her efforts to obtain the return of the money for the estate. In 1931, Kolodziejski told her she would have to wait for the money—that the association was obtaining a ioan of $20,000; in 1932, when she signed the annual account to probate court, he tried to induce her to accept four passbooks in order to close the estate, and she refused; Kolodziejski then proposed she accept one of his mortgages to the association, which he would then pay her in instalments ; she consulted her priest, who advised against it; she consulted with Judge Palmer, who referred her back to Kolodziejski; she succeeded in getting $500 in 1931 to pay off one of the heirs who was in urgent need of the money; she was glad to get something out of it; she continued her efforts, and in 1934 or 1935 could not get to see Kolodziejski because he was then an assistant attorney general in Lansing, and not in his office. She retained another attorney, who wrote letters to the defendant association without avail, started two different suits against Kolodziejski for summary judgment which were dismissed under a local court rule holding the cause should be tried on its merits. The instant suit was started in 1940, defendants moved to dismiss on the ground plaintiff was guilty of laches, which motions were dismissed by the circuit judge with preptdice. No appeal was taken from that order. The delay in starting the instant suit was caused by defendants, not due to lack of diligence by plaintiff administratrix, and she is not guilty of laches. Defendants were not prejudiced by the delay.
“A fundamental requisite of estoppel is that conduct, whether action or inaction, on the part of the one against whom the estoppel is asserted has worked to the disadvantage of the party who urges this defense. ‘ Cudahy Brothers Co. v. West Michigan Dock & Market Corp., 285 Mich. 18.” Kaminski v. Wayne County Board of Auditors, 287 Mich. 62.
Defendants seek to apply the doctrine of equitable estoppel against -plaintiff’s claim. Unless plaintiff’s conduct is shown to have prejudiced defendants’ rights, there can he no estoppel.
“This instruction was correct. There can be no estoppel unless a party is misled to his prejudice by the conduct of the person against whom it is set up, and acts are done relying upon conduct calculated to mislead. Gorham v. Arnold, 22 Mich. 247; Palmer v. Williams, 24 Mich. 328; Crane v. Reeder, 25 Mich. 303; DeMill v. Moffat, 49 Mich. 125.” Thirlby v. Rainbow, 93 Mich. 164.
Laches is an affirmative defense. Mere lapse of time, without a showing of prejudice, will not constitute laches. Chamski v. Wayne County Board of Auditors, 288 Mich. 238.
See, also, Cudahy Brothers Co. v. West Michigan Dock & Market Corp., 285 Mich. 18.
“But it is urged that plaintiff has been guilty of laches. There was a lapse of several years between the furnishing of the money and the commencement of this suit. Lapse of time alone is not generally sufficient to sustain the defense of laches. Walker v. Schultz, 175 Mich. 280. The evidence of lapse of time should be considered with other facts and circumstances of the case in determining the question. Laches will not be permitted to defeat subrogation where it would be inequitable to deny it. Heth v. Oxendale, 238 Mich. 236. The record is convincing that plaintiff furnished the money in the circumstances testified to by her. It is equitable that she be paid.” Smith v. Sprague, 244 Mich. 577.
In Walker v. Schultz, 175 Mich. 280, this court quoted with approval the following rule froi Sanborn v. Eads, 38 Minn. 211 (36 N. W. 338):
“The mere lapse of time does not constitute laches, unless the circumstances were such as to make the delay blamable. Whether the delay has been culpable or not may obviously depend upon many facts and considerations, such as the length of time (which cannot be fixed by any definite rule, this being a subject of discretion under the circumstances of each case), the knowledge of the facts, actual or imputable, the consequences as respects others than the plaintiffs, and perhaps other things.”
See, also, Backus v. Backus, 207 Mich. 690.
Plaintiff administratrix still had expectation of being able to recover the estate’s money when she started the suits in 1938 against Kolodziejski. She then considered him liable for the money, and obviously still entertains the same idea. Had she promptly repudiated the “deposit” or so-called “investment,” no serious claim of estoppel could be made. During tbe entire time, at least until 1938, she was led to delay in asserting her rights by Kolodziejski, her attorney, who likewise was acting for the savings and loan association. A similar situation arose in Wyckoff v. Victor Sewing Machine Co., 43 Mich. 309, where this court said:
“We do not think the laches in this case are conclusive against complainant’s equities.”
During this lapse of time, and at least until 1938, defendants did not deny plaintiff’s right to the money.
“Laches is hardly imputable where plaintiff’s claim has been under consideration for adjustment most of the time before suit.” Seymour v. Detroit Copper & Brass Rolling Mills (syllabus), 56 Mich. 117.
Kolodziejski occupied the status of a confidential relationship with plaintiff. Neither he nor the loan association can seriously claim that plaintiff did anything to take advantage of them. On the other hand, defendants did not frankly reveal to plaintiff the true situation, as now claimed by them — that she merely invested the estate’s money in certificates of membership. The only evidence of the “deposit” of money given to plaintiff was a “passbook,” similar to the usual savings account books of banks, showing “deposited,” “interest,” “withdrawn,” “balance.” It also contained the constitution and bylaws, which referred (in part) to “depositing members” and “withdrawals” under paragraphs so designated. No certificates of membership or for “advance payments of instalment dues” were ever issued to plaintiff. Equity does not countenance such concealment of the situation or allow defendants to take advantage of it. Fred Macey Co. v. Macey, 143 Mich. 138 (5 L. R. A. [N. S.] 1036). The fact that Kolodziejski was the attorney for the estate, and led his client into the delay in starting court action, should, in equity, bar defendants from successfully advancing their own dereliction as a defense. Wright v. Wright, 37 Mich. 55. In large measure, whether equity should withhold relief on the ground of laches must depend on the facts- and circumstances of the particular case. That the savings and loan association had no knowledge of the fraudulent conduct of Kolodziejski is no defense. As said by Mr. Justice North in Upell v. Bergman, 246 Mich. 82:
“If Brillinger perpetrated a fraud on the plaintiffs in the manner alleged in their bill of complaint, the Bergmans, as principals, must be held responsible for the act of their agent even though they were not aware of his fraudulent conduct. They cannot profit by his fraud. Chaffee v. Raymond, 241 Mich. 395. * * *
“The defendants contend the plaintiffs should not be granted equitable relief because of laches. In a large measure the question as to whether relief should be withheld on the ground of laches must depend upon the facts and circumstances of the particular case. It has often been held that mere lapse of time does not necessarily constitute laches; and that the right to urge laches as a defense is dependent upon some prejudice having resulted therefrom. In the instant case the plaintiffs were not only deceived and defrauded in the first instance, but because of their misplaced confidence in Brillinger, they were slow to comprehend the wrong done.”
Mr. Justice Nelson Sharpe, writing for the court, in Bayley v. Friedberg, 226 Mich. 125, again declared the law of this State, which has been repeatedly settled by the decisions hereinbefore cited, as follows:
“Defendants claim that plaintiff was guilty of such laches as should preclude the granting of re lief to him. This court has many times held that one seeking relief for fraud must act promptly after its discovery. Draft v. Hesselsweet, 194 Mich. 604; Bowen v. Stocklin, 215 Mich. 341. The mere lapse of time, however, is not sufficient to constitute laches. Backus v. Backus, 207 Mich. 690; Walker v. Schultz, 175 Mich. 280; Humiston, Keeling & Co. v. Yore, 181 Mich. 629. The delay in moving may always be explained, and, if satisfactorily accounted for, relief will be granted, notwithstanding’ the lapse of time. Mulheron v. Henry S. Koppin Co., 221 Mich. 187.”
The record before us is not clear as to the time when plaintiff administratrix first discovered that defendants were claiming that the “deposit” was an investment in certificates of membership, wherefore plaintiff’s estate would have to take potluck with all the other holders of membership certificates. It is fair to conclude that this obvious change of position from Kolodziej ski’s previous representations was not disclosed to plaintiff until she employed other counsel in 1938. Certainly thereafter plaintiff has been diligent in prosecuting litigation to recover'the money. If plaintiff’s discovery of the constructive fraud was not until 1938, neither the statute of limitations nor the doctrine of laches or equitable estoppel can be successfully urged against her claim.
“We think the trial judge was correct in holding that plaintiffs’ right to equitable relief was not barred by the statute of limitations. These defendants are not in a position to charge plaintiffs with lack of diligence in discovering that their vendors’ agent had misrepresented to plaintiffs the location of the lot lines. We have often held that a defrauded party is not obligated to the person chargeable to exercise diligence in discovering a fraud. Smith v. Werkheiser, 152 Mich. 177 (15 L. R. A. [N. S.] 1092, 125 Am. St. Rep. 406); Lewis v. Jacobs, 153 Mich. 664. Plaintiffs rely upon the statute (3 Comp. Laws 1929, § 13983 _ [Stat. Ann. § 27.612]) which authorizes suit within two years after discovery of, a concealed fraud, although otherwise barred by the statute of limitations. Defendants contend that this statutory provision applies to actual or active fraud only, not to constructive fraud. If the injured party’s remedy is essentially an equitable one, we think it is immaterial whether it is based on active or constructive fraud. * * *
‘‘ ‘ Courts of equity not only act in obedience and in analogy to the statutes of limitations in proper cases, but they also interfere in many cases to prevent the bar of the statutes where it would be inequitable or unjust. Thus for example if a party has perpetrated a fraud which has not been discovered until the statutable bar may apply to it at law, courts of equity will interpose and remove the bar out of the way of the other injured party. * * *
“ ‘The question often arises, in cases of fraud and mistake * * * under what circumstances, and at what time, the bar of the statute of limitations begins to run. In general it may be said that the rule of courts of equity is, that the cause of action or suit arises when and as soon as the party has a right to apply to a court of equity for relief. In cases of fraud or mistake it will begin to run from the time of the discovery of such fraud or mistake, and not before.’ 3 Story’s Equity Jurisprudence (14th Ed.), §§ 1974, 1975.” Hathaway v. Hudson, 256 Mich. 694.
However, defendants insist that the statute of limitations bars plaintiff from recovery. While this court has repeatedly held that statutes of limitations will be held to apply by analogy in equity cases (Hatch v. Common Council of the Village of St. Joseph, 68 Mich. 220; People, ex rel. Attorney General, v. Railroad Co., 145 Mich. 140; McRae v. Auditor General, 146 Mich. 594 (10 Ann. Cas. 594); Young v. Young, 200 Mich. 236), this is not a hard and fast rule.
“Defendants’ counsel insisted in the court below and do here that the laches of plaintiffs precludes recovery here. It is a general rule that a court of equity will apply the statute of limitations by analogy. But this is not a hard and fast rule. The court of equity frequently overlooks delays.” Brown v. Harrison, 242 Mich. 603.
“In suits for specific performance, while courts of equity have regard to statutes of limitation, and by analogy are inclined, as a general rule, to conform therewith when considering and applying the doctrine of laches, they are by no means absolutely conclusive and are often disregarded. Laches may be declared to be a bar long before the statute has run, or, where equitable reasons for delay have been shown, relief may be granted at a time beyond the statutory period.” Rodgers v. Beckel, 172 Mich. 544, 550.
The above was quoted with approval by Mr. Justice McDonald in Gatz v. Bain, 244 Mich. 536, 541, 542, to which was added the following conclusion:
“The plaintiffs’ remedy is not barred by laches. Laches is an equitable defense. Lapse of time alone does not create it. There must be other circumstances that make it inequitable to grant the relief prayed for. Such a circumstance would be a change in conditions to the detriment or disadvantage of the party against whom the relief is sought. Walker v. Schultz, 175 Mich. 280.
“ ‘But delay alone, unaccompanied by other circumstances, will not necessarily preclude relief. In every case where the defense is founded on mere delay, that delay, of course, not amounting to a bar of any statute of limitations, the validity of that defense must be tested upon principles substantially equitable. Two circumstances, always important in such cases, are the length of the delay and the nature of the acts done during the interval, which might affect either party or cause a balance of justice or injustice in taking one course or the other. The doctrine of laches, as understood in courts of equity, implies injury to the party pleading it as a defense. Where the situation of the parties has not been altered, and one has not been put in a worse condition by the delay of the other, the defense of laches does not generally apply.’ Parker v. Bethel Hotel Co., 96 Tenn. 252, 286 (34 S. W. 209, 31 L. R. A. 706, 714).”
In that case, the court divided equally on the effect of 23 years’ delay in starting suit for specific performance.
In the case at bar, Kolodziejski makes no claim of a change of condition resulting in disadvantage to him, and the loan association itself was in process of liquidation during the entire period, beginning with 1931 or 1932. Some comment has been made that the plaintiff administratrix should share alike with other certificate-holders in the association. Were the question before us that there were other “depositors” in the association who had been misled or defrauded as plaintiff has been, we would be impelled to give equal consideration to their claims. However, no such claim is disclosed in the record before us.
Decisions of this court might 'be cited almost ad infinitum where the concurrent questions of laches, statutes of limitations and equitable estoppel have been referred to and discussed. As applied in equity, the decision obviously depends on a consideration of the equities between the parties to the suit. Perhaps the rule was best stated by Mr. Justice Fead in Angeloff v. Smith, 254 Mich. 99:
‘ ‘ The doctrine of laches is founded upon long inaction to assert a right, attended by such intermediate change of conditions as renders it inequitable to enforce the right. Epstean v. Mintz, 226 Mich. 660.”
“A defrauded party who seeks to rescind must act with reasonable promptness after discovering the facts. What is a reasonable time depends on the circumstances of the particular case. Cornell v. Crane, 113 Mich. 460. This defense will not be permitted to defeat the right to rescind unless it would be inequitable to deny it.
“And it was said in Parks v. Brooks, 188 Mich. 645:
“ ‘Laches does not necessarily grow out of a mere lapse of time. * * * Laches rests chiefly on the inequity of permitting a claim to be enforced by reason of changed conditions or relations of the property or parties resulting from delay.’ ” Gyles v. Stadel, 252 Mich. 349.
‘ ‘ One occupying a position of trust and confidence may not plac.e himself in a situation in which his interest may conflict with his duty.
“As the defense of laches rests primarily on the theory that it would be unjust to permit, a claim to be enforced by reason of changed conditions or altered situation of the parties resulting from delay, mere lapse of time unaccompanied by any elements of estoppel will not deprive a complaining beneficiary of his remedy against his trustee.” Parks v. Brooks (syllabi), 188 Mich. 645.
See, also, Heth v. Oxendale, 238 Mich. 236; Sanders v. Campbell, 231 Mich. 592; Schliska v. Ross, 230 Mich. 225; Howe v. Patrons’ Mutual Fire Ins. Co. of Michigan, 216 Mich. 560; Kaiser v. Kaiser, 213 Mich. 660; Nickerson v. Nickerson, 209 Mich. 134; Humiston, Keeling & Co. v. Yore, 181 Mich. 629; Parkinson v. Parkinson, 177 Mich. 336; Quinn v. Tully, 174 Mich. 30.
We should emphasize that the defendants in this case are not claiming prejudice to equal rights of their own, as against plaintiff’s claim of a constructive fraud. The defendants here are Kolodziejski and the loan association. No other party has appeared or sought to intervene on the ground that he or she was also led to make “deposits” of money. As between the parties in this case, plaintiff is not barred in equity by defendants’ claim of the statute of limitations, laches, or equitable estoppel.
Defendant Kolodziejski claims he should be allowed his fees as attorney for the estate. There is merit in the claim. His cross bill for affirmative relief on that ground was dismissed by the trial court. Counsel for all the parties stipulated in the court below that Kolodziejski was entitled to a reasonable fee for services rendered in said estate. Plaintiff, in filing her final account as administratrix, took credit for a disbursement of $350 to Kolodziejski for attorney fees. Assuming that the probate court entered an order approving the account, the circuit judge was correct in holding that this question was closed, and that he had no jurisdiction over the amount. Kolodziejski has not been paid and should be allowed a credit for his attorney fees as against any final liability to the estate, the amount, if not already fixed, to be determined by the trial court.
The court below decreed that the remaining assets of the association were impressed with a trust in favor of the estate, directed that the assets be sequestered and that, if necessary, a receiver be appointed to liquidate the same. With this, we are in accord. Title to the trusteed fund did not pass to the association for its own use, and the estate is not a common creditor of the association. The decree further provided that if the amount received from, the sequestered assets be insufficient to pay the estate in full, Kolodziejski should be liable for the deficiency. The court retained further jurisdiction for the purpose of determining this deficiency, if any. We find no fault with the decree in that regard.
The case should be remanded for amendment of the decree as to attorney fees, and otherwise should be affirmed, with costs to appellee.
North, J.
Por reasons hereinafter noted I am not in full accord with the opinion and conclusions reached by Mr. Justice Boyles, particularly that portion wherein plaintiff is granted relief against the defendant savings and loan association.
' Prior to June 10, 1929, plaintiff had been appointed administratrix of the estate of her deceased father, John Olitkowski. On the date noted she withdrew funds of the estate from the Michigan State Bank of Detroit in the amount of $2,196.64 and opened an account in that amount as an investor in or member of the defendant savings and loan association. Subsequently and on or before October 10, 1930, she made a like disposition of other funds of the estate to the amount of $1,140. Prom time to time after the inception of this account and on or before January 1, 1932, interest items were added; and there were also withdrawals from time to time. The withdrawals totalled $1,358.50, being 8 in number, the first on June 14, 1929, in the amount of $517, and the last on Octo ber 31, 1931, in tbe amount of $100. Tbe undisputed evidence is tbat on January 1, 1932, plaintiff bad to ber credit in this account $2,295.30.
Plaintiff seeks to recover on tbe theory tbat defendant Prank J. Kolodziejski, an attorney, at tbe time undertook to represent both tbe plaintiff and tbe defendant savings and loan association, and advised plaintiff to use tbe defendant association as tbe depository of tbe estate’s funds, without'revealing to ber tbat such disposition of tbe funds of tbe estate was an attempt to invest tbe same in tbe stock of tbe association or advising ber tbat such an attempted use of tbe estate’s funds was unlawful. And as to tbe defendant savings and loan association, plaintiff’s theory is tbat as a result of tbe attémpted unlawful use of tbe estate’s funds a trust ex maleficio arose and tbe association, as well as tbe attorney, should be held guilty of a constructive fraud and a bolder of tbe funds in trust.
In its answer the association pleaded both' laches and tbe statute of limitations. †Prom tbe very outset of this account with defendant association, June 10,1929, plaintiff bad reason to know and must be held to have known tbat she was dealing with a savings and loan association. At tbat time she was given passbook No. 961 in which was printed tbe constitution and bylaws of tbe defendant savings and loan association. Plaintiff, like every other intelligent citizen, was chargeable with knowledge of tbe law tbat money is accepted by such associations only as on account of an investment in tbe stock of tbe association; and likewise she was chargeable with knowledge of tbe law tbat at tbe time she was carry ing on this account the funds of an estate could not be lawfully so invested. While it cannot affect the outcome of the instant case, in passing it may be noted that this phase of the law in Michigan has been changed by statutory enactment. See Act No. 177, § 1, Pub. Acts 1937, as amended by Act No. 76, Pub. Acts 1939, and Act No. 143, Pub. Acts 1941 (Comp. Laws Supp. 1942, § 12993-11, Stat. Ann. 1941 Cum. Supp. §26.85). Prom plaintiff’s own testimony it appears that she at least had some knowledge of the nature of her transaction with the defendant savings and loan association. We quote the following: .
“Q. When you deposited the money in the association did you know anything about it?
“A. Well I knew it was a savings.
“Q. Savings and loan association?
“A. Yes, sir. * •* *
“Q. Did you hear anything bad about the association?
“A. Well, lately there is a lot •— * * *
“Q. So you had this money since June 10, 1929, and you knew that you had received shares or interest as it is called?
“A. Yes.”
After January 1, 1932, at which time plaintiff’s passbook showed $2,295.30 to her credit, there were no transactions between plaintiff and the defendant association which changed the relation between the two or bore upon her rights of recovery except her possible effort to secure return of the funds to her by demands or requests made to defendant IColodziejski. And it should be noted the undisputed record is that Kolodziejski wholly terminated his relations with the defendant savings and loan association in 1931. But plaintiff did not institute this suit until January 19,1940. This was more than 10 years after the last of the estate’s money was left with the defendant association and over 8 years after the last entry of the item of accrued interest on plaintiff’s account with the association. Regardless of whether plaintiff’s cause of action is viewed as one involving a trust ex maleficio or one arising from constructive fraud, it is clearly barred by the statute of limitations pleaded in the answer of the savings and loan association.
I am mindful of the cases, some of which are cited in my brother’s opinion, wherein courts of equity have disregarded the bar of the statute of limitations when it would have been violative of the clear equities of the case to have done otherwise. But I cannot view this record as being one of that character. There is credible testimony in the instant case that in 1929 and 1930 the condition of the assets of the defendant association was good. Furthermore, the court should not be blinded to the fact that the real opposite parties in 'interest in this case are other investors in the stock of the defendant association. It is not clear from the record whether the association is now solvent or insolvent ; but plaintiff alleges its affairs were placed in charge of a custodian. In case the association is solvent, plaintiff, even though her bill of complaint herein is dismissed, will be repaid in full, because the association admits its liability to her as a shareholder. On the other hand, if the association is insolvent, plaintiff by prevailing in.the present suit would establish herself as a preferred creditor, but at the expense and to the disadvantage of all other shareholders in the association. It is to be presumed that persons interested in the Olitkowski estate are adequately protected by the .bond of -the administratrix. Under such circumstances a court of equity would not be justified in permitting plaintiff to recover notwithstanding her inexcusable delay in asserting her claim beyond the bar of the statute of limitations. In this connection it may be noted as bearing upon the disadvantage other shareholders in the association will face, if plaintiff’s claim is preferred, such disadvantage is disclosed by the trial court’s decree which adds $1,117.70 as interest accrued on plaintiff’s claim during the period of her inactivity. This is an increase of nearly 50 per cent, over the original amount of the claim, and much more than would have accrued to plaintiff if she had left the funds in the bank where she had her original deposit.
Abundant’ authority is cited in support of the context of two headnotes which we quote from Moross v. Oakman, 257 Mich. 464:
“Courts of equity accept statute of limitations as fixing proper period of repose for rights in equity and apply it unless suit is peculiarly equitable in nature or compelling equities are shown.
“Where one invokes aid of equity after apparently sleeping on his rights for time equaling statutory period of limitations, he must allege facts which excuse delay and show strong equities in his favor.”
For the reasons above noted plaintiff’s bill of complaint should be dismissed as against defendant savings and loan association, with costs of both courts.
There are abundant reasons why a different result should be reached as to defendant Frank J. Kolodziejski. There is no question but that at the inception of the transactions which have culminated in this lawsuit and subsequent thereto he sought to act and did act as the legal adviser of both plaintiff and defendant savings and loan association. It was largely, if not wholly, through his advice and direction that plaintiff administratrix used the funds of the estate in the manner hereinbefore indicated. Instead of advising or directing plaintiff to invest the funds of the estate in the stock of the association, defendant Kolodziejski was in duty bound to advise his client that such use of the estate’s funds was then contrary to law. This he failed to do; and we think the record justifies the conclusion that his conduct in this particular was prompted by his interest in the defendant association rather than otherwise. And in this aspect the interests and rights of plaintiff clearly conflicted with the interests of the association. In advising plaintiff as his client Kolodziejski not only failed in the proper discharge of his professional duties but in effect he perpetrated at least a constructive fraud upon plaintiff. While the answer of Kolodziejski rathér indefinitely charges that plaintiff did not cooperate with him in closing the Olitkowski estate, we do not find that he has sufficiently pleaded the defense of laches, and he has not pleaded the statute of limitations at all. And further, even though such defenses were adequately pleaded, we think as between plaintiff and defendant Kolodziejski the equities of the case are decidedly in her favor, and such defenses if pleaded could not prevail in the instant case in behalf of Kolodziejski. For that reason the decree of the circuit court as affirmed in my brother’s opinion, and wherein < plaintiff is 'granted contingent relief against defendant Kolodziejski, should be affirmed.
I am also in accord with my brother’s opinion as to defendant Kolodziejski being entitled to an attorney’s fee of $350, but in this particular decision should be planted solely on the ground that the probate court so ordered and no appeal has been taken therefrom. Plaintiff will recover costs of both courts against defendant Kolodziejski.
Chandler, C. J., and Starr, Butzel, Bushnell, and Sharpe, JJ., concurred with North, J. Wiest, J., took no part in this decision.
See 3 Comp. Laws 1929, § 13976, as amended by Act No: 193, Pub. Acts 1937 (Comp. Laws Supp. 1940, § 13976, Stat. Ann. 1940 Cum. Supp. § 27.605).—Reporter.
See 3 Comp. Laws 1929, ■§ 13976, as last amended by Act No. 193, Pub. Acts 1937 (Comp. Laws Supp. 1940, § 13976, Stat. Ann. 1940 Cum. Supp. § 27.605).—Reporter.
See 3 Comp. Laws 1929, § 12134 et seq. (Stat. Ann. § 23.541 et seq.).—Reporter. | [
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Boyles, J.
Plaintiff brought suit against Ella A. Bench, as survivor of her husband, Edward J. Bench, on a promissory note as follows:
“1200.00/100 Detroit, Mich., June 10, 1932.
“One year after date I promise to pay to May Binne or order twelve hundred 00/100 dollars at •............value received with sis per cent, interest per annum.
“No........'. Due ..........
(Signed) “Edward J. Bench.
(Signed) “Ella A. Bench.”
Plaintiff claims that Ella A. Bench is liable in so far as payment can be enforced out of real estate owned by herself and husband as tenants by entireties to which she holds title as survivor, or out of personal property and choses in action owned by herself and husband with right of survivorship, under 3 Comp. Laws 1929, §13062 et seq. (Stat. Ann. § 26.181 et seq.).
To defeat the claim, defendant contends that because she did not contract with reference to her separate property but signed as comaker with her husband as an accommodation and received none of the proceeds from the note, there was no consideration as to her and, therefore, she is not liable.
At one time this would have been a good defense under the laws of this State. The rule was changed by Act No. 158, Pub. Acts 1917, as applied to the facts in the case at bar. This act, as subsequently amended and in effect when the note in question was signed, is as follows:
‘ ‘ Seo. 2. Hereafter married women shall be possessed of the power and capacity, and it shall be competent for them to bind and makes (make) themselves jointly liable with their husbands upon any written instrument as hereinafter • provided. Said liability to extend, however, only to the property described in the follo.wing section.
“Sec. 3. Hereafter the real estate of the husband and wife owned by them as tenants by entirety, or the real estate acquired by either as survivor of the other, or in the event of divorce the interest of either in real estate which was previously owned by them as tenants by the entirety, shall be liable to seizure and sale on execution, and all personal property and choses in action owned by husband and wife jointly with right of survivorship therein, shall be subject to writ of garnishment and all other process provided by law, in satisfaction of any judgment which has been recovered against the persons who were at the time of the execution of such written instrument husband and wife jointly or the survivor upon any instrument signed by both. In case the wife is the survivor, or in case the husband and wife have been divorced prior to the recovery of the judgment, a judgment against the wife may be satisfied only out of such property.” 3 Comp. Laws 1929, §§ 13063, 13064 (Stat. Ann. §§26.182,26.183).
Special consideration running to the wife alone is not necessary. Kies v. Walworth, 250 Mich. 34. In Rossman v. Hutchinson, 289 Mich. 577, 588, this court held:
“ ‘Any ordinary consideration will support this joint contract. It need not be a benefit to the married woman or her estate, not even a benefit to the entireties estate. See Montz v. Reutter, 268 Mich. 357, where a joint contract to repay a personal loan to the husband was upheld; Greening v. Wallace, 257 Mich. 343, where a joint promissory note was given in renewal of defective notes previously given by the husband and wife. * * * Kies v. Walworth, 250 Mich. 34, where a joint note was given in con sideration of the release of a mortgage on entireties property; and McDougall v. Henderson, 260 Mich. 71, where the contract was for the joint purchase of land.’ Prof. Raymond Van Syckle, in 5 Detroit Law Review, pages 69, 79.”
It was not necessary for plaintiff to seek recovery from the estate of the deceased husband before proceeding against defendant. McDougall v. Henderson, 260 Mich. 71.
In Dowagiac National Bank v. Maier, 285 Mich. 1, relied upon by defendant, the wife signed a separate written instrument agreeing to pay her husband’s note in event of his death. It was not a joint liability as in the case at bar and the case holds she could not become liable as surety and bind her separate estate. The facts distinguish the case from the one before us.
Defendant also sought to show that there was an oral understanding when the note was given, to the effect that the note was to be paid only in the event of the simultaneous death of the makers. This was obviously an affirmative- defense, because the note itself was an unconditional promise of payment “one year after date.” Notice of this defense was not given by defendant in pleading, and testimony in support thereof was not admissible in the absence of any notice of the affirmative defense. Court Rule No. 23 (1933). Moreover, a careful review of the defendant’s proofs is far from convincing that she sustained the burden of proving the oral agreement as claimed. The defense was not established to bring the case within Malone v. Kugel, 281 Mich. 351, and the cases there cited.
The court below, on trial without jury, entered judgment of no cause of action. Reversed and re manded for entry of judgment for plaintiff for tlie amount of the note and interest, with costs.
Chandler, C. J., and North, Starr, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., did not sit. | [
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Bushnell, J.
Defendant Joseph Sarnoff was convicted in two cases by a jury in the recorder’s court for the city of Detroit, traffic and ordinance division, of violations of section 2969 of the building code of the city of Detroit, ordinance No. 131-D, being an amendment to ordinance No. 354 — O. First, in one case it was charged that Sarnoff failed to keep a certain dwelling in good repair, in that he failed to reopen a blocked sewer and remove sewage from the cellar, make repairs to cellar stairs, install a window in the cellar for light and ventilation, replace broken glass in a kitchen door, and reputty broken glass. In the second case it was charged that Sarnoff failed to keep a certain dwelling in good repair in that all loose sidings on the exterior walls had not been refastened, proper foundations under the dwelling were not installed, the floors were not leveled, holes in the floors were not repaired, broken window glass was not replaced, loose window glass was not reputtied, broken window sash was not repaired, and dangerous stair treads on rear outside stairs to the second floor apartment were not repaired.
Defendant was found guilty in each case and was sentenced as follows: He was placed on probation in each case 'for a period of one year, the conditions of probation being that in each case he make the necessary repairs and that in each case he be confined to the Wayne county jail for a term of 60 days, each of said terms to be served concur rently. Defendant’s application for writ of certiorari to the circuit court of Wayne county was granted.
Defendant contended that the ordinance was invalid and that the sentence imposed was illegal and unconstitutional. He also asserted that his commitment to the Wayne county jail was illegal because the director of the psychopathic clinic of the recorder’s court for the city of Detroit had filed a written report in which he stated that, “psyehiatrically, this individual is insane.” Sarnoff also contended that the imposition of a sentence of one year’s probation and confinement for 60 days in the Wayne county jail constituted cruel or unusual punishment. He further claimed that substantially all the repairs demanded had been made and that he had agreed to make the remaining ones. The circuit judge did not pass upon the insanity question, that matter not having been included in the record. (Nor is it included in the agreed concise statement of facts submitted to this court, and, therefore, will not be considered.)
The circuit judge, after a hearing, held the ordinance valid, affirmed the sentence, and dismissed the writ of certiorari. This court granted leave to appeal and stayed the proceedings. Appellant raises substantially the same questions here that were presented to the circuit court.
The building code of the city of Detroit is similar to the State housing code. See Act No. 167, Pub. Acts 1917, as amended, 1 Comp. Laws 1929, §2487 et seq. (Stat. Ann. § 5.2771 et seq.). Section 71 of the State housing code, 1 Comp. Laws 1929, § 2559, as amended by Act No. 303, Pub. Acts 1939 (Comp. Laws Supp. 1940, § 2559, Stat. Ann. 1941 Cum. Supp. § 5.2843), reads in part:
‘ ‘ Every dwelling and all the parts thereof # * * shall he kept in good repair by the owner.”
Sarnoff contends that section 2969 of the ordinance No. 131-D amending ordinance No. 354-C of the city of Detroit, known as the building code, is unconstitutional because the provision requiring a dwelling and the parts thereof to “be kept in good repair by the owner” is too broad and indefinite and, therefore, fails adequately to inform the owner of the particular act or acts prohibited.
It is fundamental that a penal law cannot be sustained unless its mandates are so clearly expressed that any ordinary person can determine in advance what he may, or what he may not, do under it. People v. Goulding, 275 Mich. 353, 359.
However, the words “good repair” have a well-known and definite meaning. See Annis v. Britton, 232 Mich. 291, and Malosh v. Thompson, 265 Mich. 320. They sufficiently inform the ordinary owner that his property must be fit for the habitation of those who would ordinarily use his dwelling. It would he difficult, if not impossible, to lay down a rule of conduct in more exact terms which would at the same time cover the varying conditions presented in each individual case. As was said in People v. McMurchy, 249 Mich. 147, 178:
“There are many crimes on our statute books which must be defined by the use of words of a general and flexible meaning, and the existence or nonexistence of the essential elements of these crimes becomes a question of fact to be determined in each case. It is not possible to use any but general terms for describing the following statutory crimes; wilful, deliberate and premeditated killing; committing an assault with a deadly weapon; assault with intent to do great bodily harm; assault with a gun, etc., or other dangerous weapon; cruelly and unlawfully punishing a child; going armed with an offensive and dangerous weapon or instrument concealed on one’s person; committing a gross fraud or cheat; malicious injury to property; abandonment of wife or children without necessary and proper shelter, food, etc., drunkenness, intoxication, driving while intoxicated; lewd and lascivious cohabitation; use of indecent language, etc.; crime, sabotage, violence or other unlawful methods of terrorism; gross indecency; disorderly person; allowing a prisoner to escape through negligence; lottery, resisting an officer, etc. It is necessary to apply the rule of reason or common understanding to many statutes in order to carry out their purpose. Standard Oil Co. v. United States, 221 U. S. 1 (31 Sup. Ct. 502, 55 L. Ed. 619, 34 L. R. A. [N. S.] 834, Ann. Cas. 1912D, 734); United States of America v. American Tobacco Co., 221 U. S. 106 (31 Sup. Ct. 632, 55 L. Ed. 663).”
See, also, the discussion on this subject in People v. Maki, 245 Mich. 455, and People v. Austin, 301 Mich. 456.
Legislation in vague or general terms is also treated in 45 Harvard Law Review, 160 (1931) ; 21 Michigan Law Review, 831 (1923); and 37 Michigan Law Review, 1161 (1939). The last cited article says in part:
“No precise test to determine whether a statute is too vague and indefinite to afford due process can be ascertained from the cases. Within the general rules and depending on the practical application of the statute to the fact situations, it seems a court has some leeway to declare doubtful terms too indefinite or not. The general rule is that a criminal statute, when applied to the situations it purports to govern, must be sufficiently definite and certain in its terms to inform the average intelligent person what conduct will subject him to penal ties. Enactment of similar statutes and evidence of a long period of satisfactory administration of the law should be taken into consideration.”
Since People v. Hanrahan, 75 Mich. 611 (4 L. R. A. 751), this court has held that the violation of an ordinance is a criminal act, and where the violation of an ordinance is also the violation of a statute, upon conviction of the violation of such an ordinance the court has power to place the defendant on probation. People v. Goldman, 221 Mich. 646.
In People v. Robinson, 253 Mich. 507, decided February 27, 1931, the court held that “probation is a substitute for imprisonment” and that “imprisonment cannot be imposed until the probation is revoked or terminated.” Subsequent to this opinion, the legislature amended Act No. 175, Pub. Acts 1927 (3 Comp. Laws 1929, § 17371 et seq.), by adding to section 3 thereof the following:
“As a condition of probation, the court may require the probationer to be immediately imprisoned in the county jail for not more than sixty days, or that he shall pay immediately or within the period of his probation, a fine imposed at the time of being placed on probation, or both, in the discretion of the court.” 3 Comp. Laws 1929, § 17373, as amended by Act No. 308, Pub. Acts 1931. (Comp. Laws Supp. 1940, § 17373, Stat. Ann. § 28.1133).
This amendment became effective September 18, 1931. Appellant argues that this amendment is unconstitutional under the reasoning of the Robinson Case, in that it constitutes double punishment. It is also argued that the sentence imposed on this defendant constitutes cruel or unusual punishment. See Constitution of 1908, art. 2, § 15. The term “cruel or unusual punishment” applies to something inhuman and barbarous, torture and the like. In re Ward, 295 Mich. 742, 746. It is obvious that the sentence imposed cannot be so characterized.
Appellant argues that upon violation of his probation he might be sentenced for a term beyond the original term fixed by the ordinance and, therefore, be subjected to double punishment. That situation is not before us at this time and can be considered if and when it arises.
The condition of the probation order that Sarnoff make the necessary repairs is neither unreasonable nor improper. He may exercise the option either of making these repairs or of serving the full sentence required by law. See People v. Good, 287 Mich. 110; People v. Hope, 297 Mich. 115, and 24 C. J. S. p. 183.
The amendment in question (3 Comp. Laws 1929, § 17373, as amended by Act No. 308, Pub. Acts 1931), is not unconstitutional. The sentence imposed is within the limitations of the ordinance and the statute; it does not constitute double punishment nor cruel or inhuman punishment. The sentence is affirmed.
Chandler, C. J., and North, Starr, and Butzel, JJ., concurred with Bushnell, J. | [
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Boyles, J.
This is an action in chancery to set aside transfers of certain bank stock to defendant Richmond Realty Company by defendants Walter C. Piper, Hugo J. Hesse and S. Marie Hesse and to subject them to tbe statutory liability as stockholders of the Q-arland State Bank of which plaintiff is receiver.
The bill of complaint was filed August 31,1936, referring to transactions occurring prior to that date. The statute (3 Comp. Laws 1929, § 11906 [Stat. Ann. § 23.14]) then in effect controls the instant case, although since expressly repealed by section 290' of the financial institutions act (Act No. 341, Pub. Acts 1937 [Comp. Laws Supp. 1940, §'11897-290, Stat. Ann. 1941 Cum. Supp. §23.1133]). Its provisions were in part reenacted by section 46 of the 1937 act as last amended (Comp. Laws Supp. 1940, § 11897-46, Stat. Ann. 1941 Cum. Supp. § 23.777). That portion of the statute applicable to this case reads as follows:
“All sales, transfers and assignments of any stock made or given with the intent and purpose on the part of such stockholder to hinder, delay or defraud the creditors of such bank or any of them shall be null and void as against the creditors of such bank, except as to purchasers in good faith and for present fair consideration, if made within four months prior to the filing of a petition asking for the appointment of a receiver of such bank. ’ ’
No question is raised either in the court below or on this appeal that the transfers were not made within four months prior to the filing of a petition asking for the appointment of a receiver of such bank. If made for the purpose of evading statutory liability and thus to perpetrate a fraud upon depositors and other creditors of the bank, the fact of its transfer prior to the four months’ period would in any event be immaterial. McCaslin v. Albertson, 279 Mich. 650.
The issue is one of fact. The parties agree that the only issue is whether the individual defendants transferred their stock to the corporate defendant with intent or purpose on their part to hinder, delay or defraud the creditors of the bank, in violation of the statute. The bill of complaint alleged that defendants Walter C. Piper and Hugo J. Hesse had been directors from the organization of the bank to the appointment of a receiver; that on December 31, 1931, the defendants, as directors, knew that the capital of the bank was impaired and that the bank was then unable to pay its probable liability and existing debts as they matured; and that on January 12, 1932, the board of directors had adopted a moratorium on deposit withdrawals. The bill further alleged that defendants, having knowledge of the impaired condition of the assets of the bank and of the insolvency thereof, and with intent to relieve themselves of the statutory double liability, and with intent to hinder, delay and defraud plaintiff and the creditors, did transfer their bank stock to the Richmond Realty Company; that the Richmond Realty Company, of which defendants Walter C. Piper and Hugo J. Hesse were stockholders, was insolvent at the date of the transfer and so continued, and was unable to pay the stock assessment, and that its insolvency was well known to defendants. It was further alleged, in the alternative, that the said transfers were a mere sham, without consideration, and made for the purpose of enabling the individual defendants to have and control the beneficial ownership of the stock and at the same time to evade payment of the statutory liability and to hinder, delay and defraud creditors of said bank. Demand for payment was made and refused. Defendants’ answer generally denied the allegations of the bill of complaint. After hear ing, the court held the corporate defendant liable, and dismissed the bill of complaint as to the individual defendants. The receiver appeals.
It was stipulated by counsel that in so far as S. Marie Hesse, wife of Hugo J. Iiesse, is concerned, she would be bound by the decision as to the remaining defendants. References hereafter to individual defendants will be understood to refer particularly to Walter C. Piper and Hugo J. Hesse, who were the active parties in the matters complained of.
The record before us fully establishes the following factual situation: Walter C. Piper and Hugo J. Hesse were directors of the Garland State Bank from its inception and Hesse had served as its president. Both are experienced businessmen and have had extensive corporate and real estate experience. Defendant Walter C. Piper was a stockholder in various companies and was the senior associate of def endant Hesse in their various real estate development companies. Hesse had been associated with Mr. Piper in the real estate business since 1907. He held stock in various other banking institutions, and was cognizant of the current financial difficulties of such institutions. Defendant Hesse attended every meeting of the board of directors of the Garland State Bank, was vice-president in 1931, and was elected president in January, 1932. Defendant Piper, as a director of the bank, attended its directors’ meetings and took an active part in its affairs.
There is much evidence of the failing condition of the hank. On June 17, 1931, both defendants attended a directors’ meeting at which the officers of the bank were authorized to negotiate a loan with Detroit financial institutions should it become necessary to raise cash to meet the demands of the depositors. On November 4,1931, both defendants attended a directors ’ meeting at which the cashier and assistant cashier accepted reductions in salaries and the services of the janitor were dispensed with. The owner of the bank building agreed to assume the cost of heating the bank building, taxes and insurance, to save the bank $1,423 a year. The bank, with a capitalization of $25,000, reached a high in footings of about $545,000 in 1929, and thereafter its footings decreased to $194,916.51 on December 1,1931. On December 2, 1931, the defendants knew that there was a bond depreciation of $19,281.25 and $27,962.50 in defaulted bonds, and admitted a net loss in total footings of approximately $300,000. They had taken action to reduce operating expenses of the bank. At the directors’ meeting following the annual stockholders’ meeting on January 12,1932, a moratorium resolution was adopted because of the financial crisis existing and because the bank had had to pay out $207,000 to its own depositors during the preceding year, and to protect the interests of depositors and stockholders. Both defendants attended this meeting, Hesse was elected president, and the minutes of meeting show the following occurred:
“He (Hugo J. Hesse) proceeded to advise the board of the serious financial crisis existing, and the panicky attitude of the public at the present time. Further that during the past year and one-half this bank had paid out to its depositors a total of $319,000, and of this sum, the sum of $207,000 in the past year and that this bank was being penalized because other banks had deferred paying depositors, some since March, 1931, at about which date the banks of Ferndale and Boyal Oak in Oakland county closed.
“Further that it was imperative that prompt action be taken to protect the interests of depositors and stockholders to. regulate the withdrawal of savings funds in particular.”
At that time the total available cash to meet withdrawals by depositors and to conduct the affairs of the bank was only about $30,000. Most of its available assets bad been liquidated, the balance largely depreciated in value.
From the foregoing it appears that defendants had knowledge of the existing economic conditions of the bank at the time they transferred the stock in question to the Richmond Realty Company in March, 1932. They knew that the bank was then unable to meet the demands that creditors might make, and of the impending probability that an assessment would be necessary to enforce the statutory double liability against them, as stockholders, to pay its creditors. The result of this knowledge was the moratorium against withdrawals, adopted by the directors January 12,1932. It was not necessary that the bank be actually insolvent, although there is no doubt its capital was at least seriously impaired at that time.
On March 30, 1932, defendants transferred the stock in question, 91 shares of Garland State Bank, to Richmond Realty Company, retaining only the necessary qualifying stock as directors. The realty company was financially irresponsible. It was organized May 2, 1929, to engage in the real estate business. Of its 300 shares, 180 shares were held by defendants Walter C. Piper and Hugo J. Hesse. The other shares were held by a relative and by another director of the bank. Its corporate annual reports filed with the secretary of State show deficits for the years 1930 to 1933, inclusive, as follows: $7,023.46 — $26,700.64 — $59,532.59 — $55,161.57. Its annual statements, prepared by its secretary, showed even larger deficits. The ultimate deficit when it lost its remaining property at the scavenger tax sale was approximately $152,000. The principal assets of the corporation were two subdivisions carried at book values of $53,883.50 and $102,201.71. These lands were subject to mortgages totaling ap proximately $67,000. It owed the other defendants herein approximately $103,000. Its total liabilities exceeded total assets by over $50,000. With the exception of the Bogren and Secord farms conveyed to defendants Hesse and Piper, the other farms were either sold for nominal amounts in excess of the mortgages, deeded to the mortgagees in satisfaction of the mortgages, or foreclosed by the vendors. The corporation paid no taxes on its real estate after 1929. At the scavenger tax sale only three bids were matched and both subdivisions are now owned by the State.
The conclusion is unavoidable that defendants knew the financial condition of the Richmond Realty Company when they transferred to it the bank stock in question. In substance, they owned the realty company and knew that any attempt to enforce the statutory liability against it for the benefit of creditors of the bank would be futile. Consideration for the transfer of the bank stock, to defendants Piper and Hesse, as stated by them, was the conveyance by Richmond Realty Company to Walter C. Piper of the Secord farm carried at a net valuation of $1,785.82, and the conveyance to Hugo J. Hesse and S. Marie Plesse of the Bogren farm carried at $1,665.36. The actual value of the two farms is in dispute. Conceding that the transfer was for a fair consideration, on the ground that the bank stock was of doubtful value and might actually be a liability in the hands of the owner, still it is plain that defendants had in mind the financial condition of both the bank and the realty company, and their statutory liability as owners of the bank stock. The net result was to hinder, delay or defraud the creditors of the bank. It was not a transfer to purchasers in good faith.
In establishing plaintiff’s case, it was not necessary to prove that either the bank or the realty company was actually insolvent. If the bank was in a failing condition, if the realty company was financially irresponsible, and the individual defendants had knowledge of those facts, the transfer of the stock in question, if made with intent to escape the statutory liability, is void.
“It is established that a transfer by a stockholder of his stock to a financially irresponsible person, with knowledge that the bank is in a failing condition and made with intent to escape the statutory stockholders’ liability will be held to be null and void. Foster v. Row, 120 Mich. 1 (77 Am. St. Rep. 565). The intent to avoid liability may be inferred from the facts and circumstances surrounding the transfer and this would be true notwithstanding the testimony of the appellant, Martin, that the transfer was made in good faith, to discharge obligations owing by Mm to his wife, and not for the purpose of avoiding liability.” McCaslin v. Albertson, supra.
See, also, Glass v. MacNaughton, 291 Mich. 363, where this court said:
“Intent to escape statutory liability through sale of their bank stock is a necessary component of the fraud with which defendants are charged. Foster v. Row, supra; Detroit Trust Co. v. Hartwick, 278 Mich. 139. But, as indicated by the case last cited, as well as Detroit Trust Co. v. Drummond, 284 Mich. 399, such intent need not necessarily be proved by direct evidence but may be found as an inference from all the facts in the case.”
The individual defendants transferred stock in a bank of wMch they were directors, fully cogmzant of its failing condition, to a corporation in wMch they owned the controlling interest, likewise knowing that a stock assessment was not collectible against that corporation. If upheld, they would be the owners of the real estate deeded to them by the corporation in exchange for the stock, which might otherwise have been subjected to execution against the Richmond Realty Company to collect the assessment. They would not only own the real estate as individuals, but by this very transaction escape their stockholders’ liability for an assessment. Equity will not countenance this palpable fraud against the depositors and creditors of the bank. It must be held that at the least the defendants are guilty of a constructive fraud.
A decree may be entered declaring the stock transfers null and void. The banking commissioner having levied an assessment against the stockholders of the bank, the individual defendants herein must be held liable for the assessment on the stock in question, with interest at the legal rate from March 14, 1934, the date of the commissioner’s assessment.
Reversed for entry of a decree in consonance herewith. Costs to appellant.
Chandler, C. J., and North, Starr, Butzel, and Sharpe, JJ., concurred. Bushnell, J.; did not sit. Wiest, J., took no part in this decision.
See 3 Comp. Laws 1929, § 11945 (Stat. Ann. g 23.52).—Reporter. | [
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Boyles, J.
Plaintiff claims $5,000 damages for breach of an alleged agreement by defendant to pay that siim to plaintiff if he (defendant) adopted the principles and design of a certain speedboat. The alleged contract is thus set ont by plaintiff in his declaration:
“Count I
I.
“That in the month of March, 1934, in the city of Detroit, Michigan, plaintiff and defendant entered into a contract wherein and whereby the defendant did promise and agree to and with plaintiff that if he, the said plaintiff, would disclose to defendant the principles of design of a certain speedboat, a model of which plaintiff had theretofore constructed, and would permit defendant to examine such model, that he, the said defendant, would pay to plaintiff the sum of five thousand ($5,000) dollars if in the construction of a speedboat which defendant contemplated building the said defendant should adopt and use the design and principles of the aforesaid model speedboat.”
Plaintiff claims that defendant accepted the offer, that plaintiff disclosed the principles and design of his speedboat to defendant, that defendant did adopt and use the same in constructing a speedboat, and therefore defendant owes plaintiff $5,000.
Before answering, defendant demanded a bill of particulars of plaintiff’s claim, which was filed as follows :
“For adopting and using principles and design of plaintiff’s model speedboat on a boat known as the Notre Dame G--5......$5,000”
Being required to file a more specific bill of particulars, plaintiff explained Ms claim as follows:
“The plaintiff claims that the defendant adopted and used the entire design of his model boat in his construction of the boat known as the Notre Dame G-5, more specifically as follows:
“(a) Adopted and used the streamline design of the boat which is known as a round or whale back design.
“(b) Adopted and used the type of bow.
“(c) Adopted and used the same type of a tapered hull, to-wit: Said hull tapering from the seating compartment to the bow.
“(d) Adopted and used design of cowl for seating capacity and hood effect over motor.
“(e) Adopted and used the same arrangement of the steps on the bottom of the boat in the same proportion.”
Defendant denied the existence of any contract, claimed that plaintiff’s model speedboat Was exhibited to defendant only for the purpose of getting defendant interested therein, denied that there were any novel principles or designs in plaintiff’s model, or that any of them were ever adopted or used by him. The case was tried by jury, at the close of proofs defendant moved for directed verdict, decision thereon was reserved, and the jury gave plaintiff a verdict for $5,000. Defendant then moved for judgment notwithstanding verdict on the ground (among others) that plaintiff had failed to prove any contract, both motions were denied, and judgment entered for plaintiff. Defendant thereupon moved for a new trial on the ground (among others) that the verdict and judgment entered thereon were contrary to the great weight of the evidence. Motion was denied and defendant reviews all questions by general appeal.
The issues before us must be viewed in two different lights. On defendant’s motion for directed verdict and for judgment notwithstanding verdict, the testimony must be viewed in the light most favorable to plaintiff. On review of denial of motion for new trial, the question is for determination of the great weight of the evidence. The issues require examination of the record to ascertain whether the facts are sufficient to sustain the denial of the motions. The first question before us is, Did plaintiff prove the contract?
1. Plaintiff’s theory of an oral contract as disclosed at the trial was somewhat different from that claimed by him in his declaration. In declaring, plaintiff claimed that if Tie would disclose to defendant the principles or design of his model and permit defendant to examine it, defendant promised to pay him $5,000 if he (defendant) should adopt and use plaintiff’s principles and designs. Somewhat differently, plaintiff’s counsel in his opening statement at the trial contended:
“That a contract was entered into whereby if the defendant would adopt and use the general principles of the design of this particular boat and blueprints, that Mr. Leslie was to reveal to Mr. Mendelson, he would compensate him to the extent of $5,000.”
The difference between a promise to pay plaintiff $5,000 if he would exhibit his model and disclose his plans and defendant used them, and the contract claimed on the trial, is apparent. However, we may consider the declaration (amplified by the bills of particulars) as being sufficiently amended to allow consideration of the contract ultimately claimed. Was there a verbal understanding or agreement that “if the defendant would adopt and use the general principles of the design of this particular boat and blueprints, tbat Mr. Leslie was to reveal to Mr. Mendelson, he would compensate him to tbe extent of $5,000.”
Plaintiff testified tbat be was a carpenter by trade, interested in motorboats, and bad made many models,- tbat be contacted a relative of tbe defendant to get an interview. Tbis was arranged in March, 1934, at wbicb conference were present tbe plaintiff, bis friend George Patrickus, tbe defendant, and bis boat builder, Mr. Perry. Plaintiff claims an agreement was entered into at tbis conference and testified to tbe agreement as follows:
“Q. Now, did you have an agreement witb Mr. Mendelson before you showed him tbe blueprint and your boat, as to the question of adopting any of tbe designs of tbat boat construction?
“A. Yes, I did.
“Q. What was your agreement?
“A. My agreement was for $5,000, wbicb I thought at that time was cheap.
“Q. What was tbe agreement itself about tbe question of using or employing the designs of that model and tbe blueprint which you later revealed?
“A. Well tbe agreement was if be could use my boat, wbicb was at that time new — different parts of it — design—I was to be compensated.
“Q. Now, in response to that agreement did you show him tbe boat?
“A. Yes, I showed him tbe blueprint and I showed him tbe model of tbe boat. I told him I would give him a rough idea of what tbe boat would look like, tbe model I showed him; there are certain sections on tbat model tbat compare witb my blueprint.”
Plaintiff then showed bis blueprint and model to tbe defendant and testified to what then occurred, as follows:
“Q. What did they say about your boat?
“A. Well Mr. Mendelson they — he looked at it and turned right around and handed it over to Mr. Perry, and Mr. Perry condemned it. He said he could not use it on account of the stern,' it would be dangerous. I said that there are two sterns you can use on this boat; you can reverse and use the bulldog and use the square stern and torpedo finish. I said the boat absolutely would be safe.
“Q. How long did you stay there?
“A. It must have been over half an hour, because Perry and I, we got into a little debate there over Fred Cooper from England, and what he said I didn’t agree with. ,
“Q. After the debate did you leave?
“A. I packed up my model and came home.”
On cross-examination, plaintiff testified:
“A. * * * The sum and substance of my conversation with Mr. Mendelson was that he wasn’t interested in my model or blueprint. # * *
“Q. And the sum and substance of what you went to see Mr. Mendelson about was that they told you they were not interested in the model, isn’t that right?
“A. Yes, they looked at the blueprint and the model and said they weren’t interested.
“Q. And you never went back again until some year or two ago when you met Mr. Mendelson with Mr. Winston?
“A. No, I just let things ride in 1935, 1936 and 1937. I wanted to see what the boat really would do.
“I did mention the figure of $5,000 to Mr. Mendel-son, when I went to see him in March of 1934. I said I had a good boat and that the boat was worth it, that the boat for $5,000 was cheap enough, and they said they weren’t interested. I did not come back to see them again because I didn’t see any need for it.”
On redirect examination, plaintiff testified:
“Q. Will you state the conversation between you and Mr. Mendels on, referring to the payment of $5,000?
“A. The conversation was that if he could use my design—
“ Q. State clearly so we can hear you.-
“A. If he could use that design, or any part of it, I was to receive that money, which was cheap.
“Q. I didn’t ask you that, ‘which was cheap’—
“A. Well, I was to receive the $5,000.
“Q. In the event he could use the general design of your boat?
“A. If he could use principles of my design of boat.”
Mr. Patrickus, plaintiff’s friend who was present at the conference, testified:
“Q. Did you have any particular knowledge of the conversation that day between the various parties ?
“A. Well, the first thing when we went in he showed him his model and blueprint, and they talked about money, so Mr. Leslie wanted $5,000 if he could use any parts of his boat or his design, and that was to be the agreement between them.”
This testimony is significant for two reasons: it refutes plaintiff’s original claim that defendant agreed, before plaintiff exhibited his model, to pay $5,000 if plaintiff would disclose his model and designs and defendant used any of them; and, secondly, it shows that plaintiff “wanted $5,000” and evidently proposed “that was to be the agreement between them,” but fails to establish an acceptance by defendant or a promise to pay. On cross-examination, Mr. Patrickus testified:
“Q. Did you hear Mr. Perry and Mr. Mendelson say that they were not interested in this model?
“A. Tes, I did.
“ Q. And that ended the party, isn’t that right?
• “A. Yes, sir.
“Q. And then Mr. Leslie and you came away, is that right?
“A. That’s right.
“Q. There was no question in your mind hut that Mr. Mendelson was not interested, is that right?
“A. Yes, sir.”
The foregoing is all of the testimony offered by plaintiff to prove a contract. As it was tried, this suit is predicated solely on a claimed contract to pay plaintiff $5,000 for use of certain principles and designs of a speedboat. Plaintiff’s own testimony negatives any understanding or agreement to pay. He shows that the defendant definitely declined the proposition. The minds of the parties did not meet.
The chief object of a declaration is to apprise the opposite party of the cause of action and the claim of plaintiff. Recovery, if at all, must be on the theory on which plaintiff tried the ease. Michigan Aero Club v. Shelley, 283 Mich. 401 (1938 U.S. Av. R. 79). Plaintiff’s case is for breach of a claimed contract. Recovery cannot be had for damages merely on the theory that defendant used novel or unusual principles or designs disclosed to him by plaintiff and, therefore, is liable in damages. A mere claim cannot stand in place of proof. Plaintiff’s case must be established by the evidence and a judgment cannot be based on speculation or conjecture. Michigan Aero Club v. Shelley, supra. That plaintiff is uncertain as to his own claim of a contract is convincingly shown by admissions made in. a letter by his attorney to defendant seeking a conference for settlement:
“Please be advised that I have been retained by Mr. Bert Leslie who advises me that he had per fected the model of your Grold Cup boat the Notre Dame. He further advises me that before you had built this boat he had taken thé matter of the design up with you at your office at which time you advised him that you were not interested in the purchase of this design mid model.”
This admission indicates a disclaimer of any contract or promise to pay, and discloses an attempted claim in tort for use of plaintiff’s ideas. However, plaintiff does not claim any patent rights for his principles or designs. He never tried to obtain a patent or made a study to find out whether his ideas had ever been patented. At the conclusion of the conference with defendant, plaintiff took his model and blueprint with him. He admits it “was just a rough idea,” that he told defendant he would bring another model, but defendant said he could not use it and plaintiff made no further effort. The entire claimed contract is based on what occurred at the single conference referred to. Even if the mere use of an unpatented principle or design would render the user liable in damages, this suit is not predicated on a claim of that nature. The suit is based on a claimed breach of an oral express contract. No contract has been proven. ' The record is convincing that if defendant had agreed to pay plaintiff $5,000 provided he used any of plaintiff’s principles and designs, the defendant would thereby have agreed to pay plaintiff $5,000 if he ever built another hydroplane, because the principles and designs were largely common to all speedboats of that type. The record convinces us that there was nothing distinctive or unusual in plaintiff’s principles and designs. They had been the subject of repeated patents and were mostly in common use.
The record is devoid of any convincing proof that the minds of these parties ever met. The essential •requisite of a binding contract is absent.
Reversed without new trial, with costs to appellant.
Chandler,, C. J., and North, Starr, Bushnell, and Sharpe, JJ., concurred. Butzel, J., did not sit. Wibst, J., took no part in this decision. | [
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Bushnell, J.
This is an appeal by plaintiff Melvin Nicewander from a judgment of no cause of action entered upon the verdict of a jury. In answer to plaintiff’s declaration claiming damages resulting from an intersection collision, defendant James Diamond filed a cross-declaration in which he also claimed damages. The jury determined that neither party should recover. Defendant did not appeal. Plaintiff contends that he did not have a fair trial and that the verdict and judgment are contrary to the great weight of the evidence.
About 11:30 a.m., on September 21, 1940, plaintiff and his wife were proceeding in a Ford car in an easterly direction on Branch county highway No. 342 toward the intersection of U. S. highway No. 27 in the village of Girard. No. 342 runs due east and west and is paved with black top; No. 27 runs due north and south and is paved with cement about 20 feet in width. There are stop signs on No. 342, where it intersects with US-27. The intersection is level and considerably wider than the paved portions of the intersecting highways. A store is located on the southwest corner of the intersection, and south of the store on the west side of the highway are a number of houses, but one approaching from the west has a clear view to the south from about 29 feet west of the edge of the pavement.
Plaintiff testified that as he came up to the intersection he observed the stop sign and stopped his car approximately 10 feet from the edge of the pavement. He.looked south and north and there was no motor vehicle in sight, so he started up in low gear and, as he glanced back over the road, saw a car coming some 580 paces away. He said he killed the engine of his car just as the front wheels went up on the pavement, and that the car came to a full stop some 2 or 3 feet from the center line of the pavement. On cross-examination plaintiff said he had an idea that defendant’s car was coming toward him at a speed of about 50 or 60 miles per hour.
Defendant is a farmer and well acquainted with the intersection. He testified that he was coming home from Coldwater with a load of grist on a two-wheeled trailer fastened to the rear of his Chevrolet car, and that his load weighed between 1,500 and 1,600 pounds; that he had two of his small boys with him, was not in a hurry, and was driving about 30 miles per hour. He said that when he was about 30 feet from the intersection he first saw plaintiff’s car and that it was then about 10 or 12 feet from the pavement; that plaintiff’s car did not stop or slow down, and that he was unable to avoid the collision. Defendant’s car came to a stop within about 30 feet from the point of impact. Disinterested witnesses testified that both cars were traveling at about 25 miles per hour, and one eyewitness testified that plaintiff did not stop before entering the intersection. In the face of the disputed facts, plaintiff’s contributory negligence was a question for the jury and its verdict of no cause of action is supported by the testimony.
Plaintiff claims, however, that he did not receive a fair trial because of references to insurance that were made in the voir dire examination, and he complains about the opening statements of defendant’s counsel and contends that the court permitted defendant’s counsel to ask leading questions and conducted the trial so as to put plaintiff in a position where he was required either to prejudice his cause by repeated objections and adverse rulings or submit to improper questions being asked. He argues that the court prejudiced the jury on the question of plaintiff’s contributory negligence in its charge by repetition and emphasis.
We do not condone what appears to have been a studied effort to get the matter of insurance before the jury. But this and the other irregularities are not of such a nature that we can say, after examining the entire record, that there has been a miscarriage of justice. 3 Comp. Laws 1929, § 15518 (Stat. Ann. § 27.2618). 1
The case was vigorously contested on both sides. In the heat of argument, improprieties do creep into trials and the zeal of counsel sometimes leads them astray. As was said in Peters v. Wurzburg, 267 Mich. 45, 49:
“We do not approve of quibbling and discourtesy in the trial of cases, but such action on the' part of counsel or litigants usually produces its logical result. Neither juries nor judges are impressed or influenced by such conduct. Both parties were provided with unusually competent and aggressive lawyers. In several particulars their zeal almost resulted in a substitution of parties. The record, however, justifies the conclusion that the trial judge succeeded in keeping the proceedings on a fairly even keel. ’ ’
We do not find from an examination of the charge given by the trial judge, which covers about 24 pages of the record, that any matter was unduly emphasized to the detriment of either party. The evidence amply supports the jury’s findings that both parties were guilty of negligence.
The judgment entered upon the jury’s verdict is affirmed, with costs to appellee.
Chandler, C. J., and Boyles, North, Starr, Butzel, and Sharpe, JJ., concurred. Wiest, J., took no part in this decision. | [
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Chandler, C. J.
The plaintiffs, who are the civil service commission of the State of Michigan and the four individual members thereof, who are suing in their official capacity, ask that a writ of mandamus be granted against the auditor general of this State requiring him to pay in full certain disbursements which they have approved. The answer of the auditor general shows for cause a lack of authority on his part, by reason of certain legislation, to draw and issue his warrants on the State treasury for the full sums approved by the commission.
The commission was created by a constitutional amendment, known as the “civil service amendment,” adopted by the electorate in November, 1940, and pursuant to its terms became effective January 1, 1941. It is known as article 6, § 22, of the Constitution of 1908, and the pertinent parts are as follows:
‘ ‘ There is hereby created a nonsalaried civil service commission to consist of four persons. * * * This commission shall supersede all existing State personnel agencies and succeed to their appropriations, records, supplies, equipment, and other property.
“The commission shall classify all positions in the State civil service according to their respective duties and responsibilities, fix rates of compensation for all classes' of positions, approve or disapprove disbursements for all personal services. * * *
“To enable the commission to execute these powers, the legislature shall appropriate for the six months’ period ending June 30,1941, a sum not less than one-half of one per cent., and for each and every subsequent fiscal year, a sum not less than one per cent., of the aggregate annual payroll of the State service for the preceding fiscal year as certified to by the commission.
“After August 1, 1941, no payment for personal services shall be made or authorized until the provisions of this amendment have been complied with in every particular. ’ ’
In pursuance of the amendment, a classification plan and compensation schedule was adopted by the commission on July 1, 1941, in which, inter alia, provision was made for increases of compensation with respect to certain positions in the State civil service affecting especially certain employees thereof whose positions require technical knowledge, skill and experience.
By Act No. 22, Pub. Acts 1942 (2d Ex. Sess.), appropriations were made for deficiencies and supplemental appropriations were made for the payment of personal services for certain State institutions, departments, commissions and boards, for the fiscal year ending June 30, 1942, and for the fiscal year ending June 30, 1943. This act includes the following provision and limitation:
“Sec. 3. On and after the effective date of this act it shall not be competent for the auditor general to issue his warrant for any salary or wage for any State employee in any State department, board, institution, commission, or other State agency for which deficiency appropriations are made in this act if such salary or wage includes any increase beyond the salary or wage existing at July 1, 1941, for the position occupied by such employee on or after the effective date of this act: Provided, however, That this section shall not be applicable to such increases as have been specifically provided for by the legislature, or to any salary or wage equivalent to $195 per month or less.”
In conformance with the foregoing provision, the auditor general has refused to issue payroll warrants to cover the compensation of the approximately 75 State employees whose compensation increases were ordered and certified by the civil serv-. ice commission, the employees, affected being those for whom the commission fixed compensation in excess of $195 per month.
The issues as presented by counsel are:
1. Is a legislative appropriation necessary, or does the setting of compensation rates by the commission automatically act as an appropriation which does not require legislative initiation?
- 2. If legislative initiation- of appropriations for personal services is necessary, is the restriction con tained in section three of the aforesaid deficiency bfll constitutional?
To these issues a third has been suggested from the bench.
3. Is the commission a proper party plaintiff to request mandamus proceedings for the benefit of the employees?
Because we determine that under certain circumstances the commission is a proper party to petition for a writ of mandamus, we shall discuss the first two issues, and then give our reasons for our answer to the third question.
I. Article 10, § 16, Mich. Const, of 1908, reads, “No money shall be paid out of the State treasury except in pursuance of appropriations made by law.” It is agreed that the weight of authority holds this phrase does not restrict appropriations to legislative enactments, but that there can be a constitutional appropriation apart from any action by the| legislature. Further, defendant seems to concede that the provision in the amendment for the sum of. one per cent, of the aggregate annual payroll of the State service for the preceding fiscal year constitutes a continuing appropriation “made by law,” for which legislative initiation is not required.
But the commission contends that the authorization to “fix rates of compensation for all classes of positions, approve or disapprove disbursements for all personal services,” is also a continuing appropriation and relies on Thomas v. Owens (1853), 4 Md. 189, and subsequent cases in accord, including Windes v. Frohmiller, 38 Ariz. 557 (3 Pac. [2d] 275). However, in both of the above-cited cases, and all cited cases in accord, the constitutional provision named a definite sum. The Maryland Constitution names certain public officers “who shall receive an annual salary of $2,500,” and the Arizona Constitution stated, “shall receive $4,000 per annum.”
The Arizona court said:
“We could rest the case here, but because of the fundamental principles involved we prefer to refer to the authorities, nearly all of which support our conclusion, which is that where the Constitution creates an office and declares that the officer shall receive his salary, that amounts to an appropriation, and no legislative.action is necessary to enforce payment of such salary.”
In 88 A. L. R. 1057, it is stated that, “This rule has been held subject to the limitation that it applies only to officers whose salaries are fixed by the Constitution, and not to those whose compensation is left to the discretion of the legislature.” The authorization contained in the civil service amendment, although not leaving the amount of the salaries to the discretion of the legislature, does leave the sum to be appropriated discretionary with the legislature, and is not sufficiently fixed to be a constitutional appropriation. That which was said in Re Opinion of the Justices, 237 Ala. 377 (186 South. 731), is appropriate:
“It is the law that an act which creates an office and fixes a definite salary by law carries an appropriation to pay the salary from time to time. Riggs v. Brewer, 64 Ala. 282. This because the law fixes the amount which the treasurer shall pay from time to time, but the act in question merely authorizes the governor to fix salaries of certain officials, not exceeding a fixed maximum, and authorizes the department heads,_ with the approval of the governor, to fix the salaries of subordinate officers and employees in the respective departments.
“We are, therefore, of the opinion that the act is not within the rule of Biggs v. Brewer, supra, and does not carry an appropriation authorizing payment from State treasury. ’ ’ \
However, the commission further contends then that this constitutional appropriation is implied, or should be implied, in the light of the history of the times which culminated in the passage of the civil service amendment, and the avowed purpose of the proponents of this amendment.
Without delving into the Michigan political history that led to the submission to the people of this amendment in 1940, it is sufficient to quote the following to understand the reasons, intent and motives of the citizens of this State in adopting the same:
“The unlimited authority of the chief executive in public office to appoint and remove all subordinate officials, which prevailed throughout this country during the first century of its existence, resulted in the general adoption of the “spoils system,” under which public office was made to be the reward for political work, with the resulting evils of inefficiency, extravagance, the interruption of public business by place hunters, corruption of the electoral franchise, and political assessments.” (10 Am. Jur. p. 921.)
With the above in mind, the following rule is * appropriate:
“The language of a constitutional amendment should be read in connection with the known condition of affairs out of which the occasion for its adoption may have arisen, and then construed, if there be therein any doubtful expressions, in a way, so far as is reasonably possible, to forward tbe known purpose or object for which the amendment was adopted.” Maxwell v. Dow, 176 U. S. 581 (20 Sup. Ct. 448, 494, 44 L. Ed. 597).
Relying on the above quotations, plaintiffs argue that in order to effectuate the aforementioned purpose, the people have created, in effect, a fourth department of government, supreme in its field as the executive, legislative and judicial are in theirs, subject, of course, to overlapping Constitutional limitations. It is not denied that the people may create by Constitution such a department, State of Delaware, ex rel. Morford, v. Emerson, 40 Del. 233 (8 Atl. [2d] 154, 156), but it is denied that this has been done by this amendment.
“The principle contended for is contrary to the genius of republican government. Under all constitutional governments recognizing three distinct and independent magistracies, the control of the purse strings of government is a legislative function. Indeed, it is the supreme legislative prerogative, indispensable to the independence and integrity of the legislature, and not to be surrendered or abridged, save by “the Constitution itself, without disturbing the balance of the system and endangering the liberties of the people. The right of the legislature to control the public treasury, to determine the sources from which the public revenues shall be derived and the objects upon which they shall be expended, to dictate the tim,e, the manner, and the means both of. their collection and disbursement, is firmly and inexpugnably established in our political system. This supreme prerogative of the legislature, called in question by Charles I, was the issue upon which Parliament went to war with the king, with the result that ultimately the absolute control of Parliament over the public treasury was forever vindicated as a fundamental principle of the British Constitution. The American commonwealths have fallen heirs to this great principle, and the prerogative in question passes to their legislatures without restriction or diminution, except as provided by their Constitutions, by the simple grant of the legislative power.”
“In the light of this great dominating principle of republican government, we feel constrained to hold that the option of the statute in the instant case fell naturally and peculiarly within the sphere of legislative, rather than executive, discretion.” Colbert v. State, 86 Miss. 769 (39 South. 65).
This cardinal principle has been stated by us in Wood v. State Administrative Board, 255 Mich. 220, 224:
“By Constitution (1908), art. 4, § 1, in harmony with American political theory,.the State government is divided into the three historic departments, the legislative, executive, and judicial, and by section 2 it is declared that:
“ ‘No person belonging to one department shall exercise the powers properly belonging to another, except in the cases expressly provided in this Constitution.’
‘ ‘ This historical and constitutional division of the powers of government forbids the extension, otherwise than by explicit language or necessary implication, of the powers of one department to another.”
We further said that if there is any ambiguity the doubt should be resolved in favor of the traditional separation of governmental powers. The following quotation from C. F. Smith Co. v. Fitzgerald, 270 Mich. 659, is here applicable:
“Under the Constitution the powers of government are divided into three departments, the legislative, executive and judicial, and no person belonging to one department shall exercise the powers properly belonging to another except in the cases expressly provided in the Constitution. Constitution 1908, art. 4. The whole subject of finance and taxation is placed by the Constitution of this State under the control of the legislature. Constitution 1908, art. 10.”
To set up, even in effect, a fourth department of government contravenes article 4, § 1, of the Constitution which states, “The powers of government are divided into three departments: the legislative, executive and judicial.” To hold otherwise would be in conflict with those sections of the Constitution defining the legislative power. We have stated in DeMaggio v. Attorney General, 300 Mich. 251, “The civil service amendment does not-alter or abrogate any specific provision of the Constitution.”
Considering that the amendment was added to article 6, which is entitled “Executive department,” a truer picture of the place of the civil service commission in relation to our constitutional government can be gained, especially viewing that which was displaced by the amendment. Prior to the adoption of the amendment, each of the appointing authorities had power to “fix rates of compensation” for employees in his department and, having done so, he was then required by law to submit his estimated financial needs to the budget director (1 Comp. Laws 1929, § 212 et seq., as amended [Stat. Ann. § 3.281 et seq., as amended]) and seek appropriations from the legislature. If he failed in obtaining what he considered to be the necessary amount, the salaries could not be paid in full.
This executive authority clothed in certain Constitutional guarantees has been transferred to the civil service commission. The appropriation to meet the pay roll must be initiated by the legislature. As was said in Myers v. State Treasurer, 9 Cal. 341:
“There may arise exigencies, in the progress of human affairs, when the first moneys in the treasury would be required for more pressing emergencies, and when it would be absolutely necessary to delay the ordinary appropriations for salaries. We must trust to the good faith and integrity of all the departments. Power must be placed somewhere, and confidence reposed in someone.”
See Hovey v. Foster, 118 Ind. 502 (21 N. E. 39).
II. Although the appropriation bill must be initiated by the legislature, the legislature cannot attach unconstitutional conditions. The amendment clearly states that the commission should “fix rates of compensation.” In the spending of the money appropriated by the legislature, the commission’s control is perhaps even greater than the regents of the university of this State. In Board of Regents of the University of Michigan v. Auditor General, 167 Mich. 444, although we said that conditions may be attached to appropriations for the university, we added that the regents may accept or reject such appropriations as they see fit. We indicated that legislative provisions as to accounting must be complied with, but “beyond that the money passes to the regents, and becomes the property of the university, to be expended under the exclusive direction of the regents.”
The opinion of Justice McDonald in State Board of Agriculture v. Auditor General, 226 Mich. 417, is informative. At page 425, he states:
“Clearly, in saying that the legislature can attach to an appropriation any condition which it may deem expedient and wise, the court had in mind only such a condition as the legislature had power to make. It did not mean that a condition could be imposed that would be an invasion of the constitutional rights and powers of the governing board of the college. It did not mean to say that, in order to avail itself of the money appropriated, the State board of agriculture must turn over to the legislature management and control of the college, or of any of its activities. This logically leads us to a consideration of the character of the condition attached to the appropriation involved in the instant case. Is it a condition that the legislature had power to make?”
In Caldwell v. Board of Regents of University of Arizona, 54 Ariz. 404 (96 Pac. [2d] 401), the court, said:
‘1 1 The general appropriation bill is * * * as the language implies, merely a setting apart of the funds necessary for the use and maintenance of the various departments of the State government already in existence and functioning.’ * '* *
“The legislature may not do indirectly what it is prohibited from doing directly. * * *
“ ‘In light of its history and present setting’ it is not a mere incidental and necessary regulation of the expenditure of the moneys appropriated. * * *
“In construing a statute which is alleged to be unconstitutional, it should be scrutinized very carefully, and no matter what its form, if its true purpose and probable effect is to violate a constitutional provision, it will be held void.”
In view of the foregoing and in accordance with the plain intent and meaning of the amendment, we hold that section 3 of the appropriation, bill is unconstitutional and void, and shall be disregarded by the auditor general. The interposition of this section into the act in question, not impliedly but in express terms, undertakes to usurp the authority vested in the civil service commission by the constitutional amendment to fix rates of compensation of employees of the State who are under civil serv ice classification. As the act specifically contains a “severability clause,” the remainder of the law is valid. See State Board of Agriculture v. Auditor General, supra, where the condition was held invalid, but the remainder of the appropriation was held good.
III. We have said that the commission may bring this petition for a writ of mandamus against the auditor general although the State employees are the principal beneficiaries. The action of the legislature and auditor general was a challenge to the commission’s power, and there is ample precedent that in such instances the board or commission may be plaintiffs. As in People, ex rel. Board of Water Commissioners, v. Common Council of East Saginaw, 33 Mich. 164, we found that the commissioners had a special interest although the bondholders — here it would be the employees — had a remedy of their own. Although the writ was denied, the court specifically went into the question of whether the commissioners were proper persons to bring the petition.
Further, in Board of Regents of the University of Michigan v. Auditor General, supra, where the Regents of the University of Michigan approved certain expenditures to employees, the court granted the writ on the petition of the regents, who occupy a position similar to that of the members of the civil service commission, as can be seen by the court’s statement at page 452:
“No money is paid out of the State treasury except on the warrant of the auditor general. In this case, as in many others, his duties are purely ministerial. As against the discretion of the regents in expenditure of the university funds he exercises no judicial functions. As to him, in the performance of his official duties, vouchers for ex penditures made within, the amount of the appropriation when authorized by the board of regents and properly authenticated by the duly constituted officials, are, within the meaning of the law, ‘for lawful purposes.’ ”
Other cases in which a board or commission were held to be the proper parties to petition for a writ of mandamus are, State Board of Agriculture v. Auditor General, supra; Kinnane v. Auditor General, 176 Mich. 340; People, ex rel. Allen, v. Frink, 32 Mich. 96.
We conclude that it is within the power of the legislature to fix the amount it will appropriate for personal services in any State department or agency; but by the 1940 Constitutional amendment the power is vested in the civil service commission to “fix rates of compensation for all classes of (civil service) positions.” In our present decision we assume, though it does not too conclusively appear from the record, that the auditor general’s issuance of the warrants will not result in overdrawing the appropriation already made for personal services in any of the State departments, boards, institutions, commissions, or other State agencies. That situation is not presented in the instant case.
A writ of mandamus will issue as prayed, but since the suit pertains wholly to the administration of public affairs, no costs will be awarded.
Boyles, North, Starr, Butzel, Bushnell, and Sharpe, JJ., concurred. Wiest, J., did not sit.
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Butzel, J.
An action, begun by Gertrude Mac-Lean and Eliza Fitzgerald, as plaintiffs, against Lee Harp, doing business as Harp Brothers, as defendant, in the circuit court for the county of Wayne in chancery, was assigned for hearing to Hon. George W. Sample, circuit judge of Washtenaw county, sitting in Detroit as a visiting judge in Wayne circuit court. He rendered a decree for plaintiffs and ordered defendant to abate a nuisance immediately. Upon the alleged failure of defendant to comply with the order, plaintiffs instituted contempt proceedings.
The first proceeding is not shown in detail by the record. In the brief filed by plaintiffs, it is claimed that they first brought proceedings in the Wayne circuit court. Inasmuch as Judge Sample was no longer sitting in the Wayne circuit, their petition was assigned to Judge Lester Moll of the Wayne ■circuit. Defendant claimed Judge Sample should hear the petition in accordance with section b of Wayne circuit court Buie No. 5, which is as follows:
“Whenever a case or interlocutory matter .is assigned to a particular judge for hearing, trial, or other disposition, that judge shall have and retain the exclusive right to hear and dispose of such matter,” etc.
The proceedings were dismissed.
Plaintiffs then began contempt proceedings before the Hon. George W. Sample, who issued an order to show cause, returnable at Ann Arbor, the county seat of Washtenaw county, Michigan. Defendant objected to the jurisdiction of the court. He appeals from the order finding him guilty of contempt and claims that Judge Sample had no right to hear the petition except in Wayne county.
The contempt citation was issued for failure to obey the order of the Wayne circuit court, and the proceedings should have been brought in that jurisdiction. ■ Under 3 Comp. Laws 1929, § 13941, the “circuit courts, within and for the respective counties, shall have and exercise original and exclusive jurisdiction.” By stipulation and for the convenience of counsel, a motion or petition may, at times, he heard outside of the jurisdiction of the county by a judge who heard the main case while acting in such county. This is by virtue of stipulation and not by right. It was proper to bring the motion before Judge Sample, if and when acting in the Wayne circuit court. On application and a showing, however, that he would not sit in the Wayne circuit court, nor be able to hear the petition within a reasonable time, the presiding judge should assign the hearing to a judge sitting in the Wayne circuit court. .
The order of contempt is herewith set aside with costs to defendant, hut without prejudice to the right' of plaintiffs to bring proper proceedings in Wayne county.
Weadock, Potter, Sharpe, North, Fead, and Wiest, JJ., concurred. McDonald, O. J., did not sit. | [
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Potter, J.
Upon a bill to foreclose a real estate mortgage a final decree was entered October 24, 1932, for $48,000 principal and $7,318.80 interest. Troyoak Land Company purchased the premises of the Oakwayne Farms Company and assumed and agreed to pay the mortgage. Defendants were by decree to pay the mortgage, interest and costs on or before November 4, 1932, in default of which the lands were to be sold at circuit court commissioner’s sale, purchasers be let into possession, and decree for deficiency, if the sale price was insufficient to satisfy the mortgage, interest and costs, was authorized. April 21, 1933, defendants filed a petition stating a commissioner’s sale of the premises was set for April 22, 1933; that plaintiff intended to bid in the property at a nominal price, grossly inadequate and far below the real value of the property; there was a complete absence of market for real estate, no competitive bidding at sales and no method of determining the true value of the prop erty; and it was necessary for the court to hold a hearing, take testimony and determine the value of the real estate and fix a minimum upset price at which the property could be sold at commissioner’s sale; that if plaintiff was allowed to bid in the property at a grossly inadequate price and take deficiency decree, a grave injustice would be perpetrated. They asked a date be set for hearing, that testimony to determine the minimum price at which the property be sold be taken, the sale be adjourned pending the hearing of the petition and the decree be amended to insert therein a minimum upset price at which the property could be sold and if such property was sold, such minimum selling price in any event be credited as payment on the mortgage, and for other relief. The sale was adjourned. The petition was heard, and May 18, 1933, several weeks before the effective date of Act No. 229, Pub. Acts 1933, the relief prayed for by defendants was granted. Plaintiff appeals.
The trial court found the allegations in defendants’ petition were true; the fair market value of the property should be at least the unpaid principal balance due on said mortgage at the approximate amount of $320 an acre or a total of $48,000, exclusive of unpaid taxes, and ordered:
(a) “That said lands, covered by said mortgage and as described in the amended bill of complaint and decree should not be sold for less than the sum of $48,000, exclusive of unpaid taxes.”
(b) “If it shall appear from the commissioner’s report that such price of $48,000, exclusive of unpaid taxes, cannot be realized, the commissioner is hereby directed to adjourn said sale for a period of six months, unless sooner ordered by the court, upon payment by the defendants of all costs of the com missioner in connection with, snch sale and adjournment. ’ ’
(c) “Plaintiff may apply to this court for an order for the appointment of a receiver to take charge of said mortgaged premises and collect the rents and income therefrom, and after deducting reasonable expenses of said receivership and the maintenance of said mortgaged premises, to apply the remainder upon the indebtedness secured by said mortgage. ’ ’
(d) “Plaintiff shall have eight days from the date of this order within which to accept or reject the above determination of a minimum price of sale; provided that her failure to-file and serve written rejection thereof within said time shall be deemed an acceptance of such determination.”
(e) “Upon such commissioner’s sale being completed, not less than said sum of $48,000, exclusive of unpaid taxes, or such other sum as the court may determine as the minimum selling price, as herein-before provided, shall be credited on the indebtedness owing by these defendants as heretofore determined in the decree in this cause.”
(f) Nothing was said of additional taxes to accrue, insurance premiums to be paid, and interest charges to accumulate.
(g) As a condition precedent to an authorized receivership the plaintiff must apply therefor and the cost and expense of collecting the rents, income and profits therefrom and deducting the reasonable expenses of the receivership and the maintenance of the premises, must be borne by the mortgagee.
The premises consist of a farm of 150 acres, and during the mania for speculation in real estate which has now somewhat subsided but which reached heights of inflation limited only by fertility of imagination, this farm was sold for $64,500 in cash and promises, — $16,500 in cash, and $48,000 in promises, secured by a purchase-price real-estate mortgage thereon. Plaintiff was to remain in possession until the purchase' price was reduced to $40,000. In the 17 years since the farm was sold it has not been so reduced. Delinquent taxes have accumulated in the sum of $7,695.96. Plaintiff sought to foreclose. Competent men, familiar with real estate values about the place where the farm is located, fixed the value at from $75 to $125 an acre. One thought it might bring $125 an acre if $6,000 to $8,000 was expended thereon for improvements. Others thought the maximum price was $100 an acre. Others fixed the value at $400 an acre, $600 an acre, and claim it was once worth $1,600 an acre. It was assessed for $185 an acre, but the taxes were not paid. The trial court on this testimony fixed an upset price of $48,000 and provided if the premises were sold, not less than the sum of $48,000 exclusive of unpaid taxes be credited on the indebtedness owing by defendants.
The foreclosure of real estate mortgages in this State is governed by 3 Comp. Laws 1929, §§ 14364-14380.
“The jurisdiction of equity in foreclosure proceedings is purely statutory.” Kollen v. Sooy, 172 Mich. 214.
“In this State, the jurisdiction of equity in proceedings for the foreclosure of mortgages is governed by statute.” Union Trust Company v. Detroit Trust Co., 243 Mich. 451.
“This court has held that foreclosure of mortgage is not a matter of general equitable cognizance, but a statutory proceeding.” Janower v. Sibley Lumber Co., 245 Mich. 571.
Proceedings for decree for deficiency may be had only after sale and report thereof. The right to a decree for deficiency is based entirely upon statute. Johnson v. Shepard, 35 Mich. 115; Howe v. Lemon, 37 Mich. 164; Gies v. Green, 42 Mich. 107; Mickle v. Maxfield, 42 Mich. 304; Ransom v. Sutherland, 46 Mich. 489; McCrickett v. Wilson, 50 Mich. 513; Vaughan v. Black, 63 Mich. 215; Shelden v. Erskine, 78 Mich. 627; Kelly v. Gaukler, 164 Mich. 519; Kollen v. Sooy, supra.
The statutes of this State regulating foreclosure of real-estate mortgages conferred no power or authority upon the trial court to set aside, alter or impair the mortgage contract; fix an upset price on the mortgaged premises; appraise the mortgaged property and direct the mortgagor credit on sale at least the appraised value of the property upon the mortage debt; prevent the sale of the mortgaged premises as provided by statute by adjournment without cause. If they did so they would violate both the Constitution of this State and the Constitution of the United States. Willard v. Longstreet, 2 Doug. 172; Mundy v. Monroe, 1 Mich. 68; Blackwood v. Van Vleet, 11 Mich. 252; Edwards v. Kearsey, 96 U. S. 595; Daniels v. Tearney, 102 U. S. 415, 419; McCracken v. Hayward, 2 How. (43 U. S.) 608; East Tennessee, V. & G. R. Co. v. Frazier, 139 U. S. 288 (11 Sup. Ct. 517); Hooker v. Burr, 194 U. S. 415, 420 (24 Sup. Ct. 706).
The supplemental decree of the trial court is set aside, the original decree re-established, with costs, and the cause remanded to the trial court.
McDonald, C. J., and Weadock, Sharpe, North, Fead, Wiest, and Butzel, JJ., concurred. | [
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