Defendant, the Michigan Catastrophic Claims Association (MCCA), appeals by leave granted a December 26, 2012 trial court order granting partial summary disposition in favor of plaintiffs, the Coalition Protecting Auto No-Fault and others, pursuant to MCR 2.116(C)(8), and denying the MCCA’s motion for sum
I. BACKGROUND
This action involves plaintiffs’ requests to inspect certain of the MCCA’s records. Plaintiffs advance arguments premised on the Michigan Freedom of Information Act (FOIA), MCL 15.231 et seq., the common law, and the law of trusts. The MCCA was created by the Legislature to protect no-fault automobile insurers from catastrophic losses arising from their obligation to pay or reimburse no-fault policyholders’ lifetime medical expenses. League Gen Ins Co v Mich Catastrophic Claims Ass’n,
On November 22, 2011, plaintiff Coalition Protecting Auto No-Fault (CPAN) sent the MCCA a FOIA request, seeking certain information concerning “all” open and closed claims “serviced by” the MCCA. CPAN requested information including the age of claimants, the dates of injuries, when claims were closed, and the total amounts paid. The MCCA refused to disclose the information, claiming in a letter that it was “expressly exempted from FOIA requests” by MCL 500.134, which provides in pertinent part:
*305 (4) A record of an association or facility shall be exempted from disclosure pursuant to section 13 of the freedom of information act. .., [MCL 15.243].
(6) As used in this section, “association or facility” means ...
(c) The catastrophic claims association ....
On January 23, 2012, CPAN filed suit against the MCCA in the Ingham Circuit Court, seeking to compel the MCCA to disclose the requested information. Meanwhile, plaintiff Brain Injury Association of Michigan (BIAMI) and several individual plaintiffs (the BIAMI plaintiffs) commenced a separate lawsuit against the MCCA after it denied their FOIA request for similar information. On July 5, 2012, CPAN, the MCCA and the BIAMI plaintiffs stipulated to consolidate the cases and to allow CPAN to file an amended complaint.
CPAN alleged four counts in its amended complaint.
Shortly thereafter, the MCCA moved for summary disposition pursuant to MCR 2.116(C)(8) and MCR 2.116(C)(10), and CPAN filed a cross-motion for summary disposition pursuant to MCR 2.116(I)(2), which the trial court construed as a motion brought under MCR 2.116(C)(8). The BIAMI plaintiffs moved for summary disposition under MCR 2.116(C)(9) and MCR 2.116(0(10), then later withdrew their (C)(10) motion. Despite the differences in plaintiffs’ motions, the trial court ultimately granted partial summary disposition in favor of all plaintiffs under MCR 2.116(C)(8), denying plaintiffs’ motions to the extent they sought disclosure of information concerning individual claimants. The court denied the MCCA’s motion in its entirety.
The trial court ruled that the MCCA was a “public body” for purposes of FOIA because the MCCA was “created entirely by statute.” The court concluded that MCL 500.134 did not exempt the MCCA’s records from FOIA, stating:
MCL 500.134 does not contain any specific references regarding information exempt from disclosure.
Secondly, the plain language of section (4) .. . does not indicate that the legislature intended for a “whole sale” carve out exemption of all MCCA records because there is a general cross reference to MCL 15.243 (A record of an*307 association or facility shall be exempted from disclosure pursuant to section 13 of the freedom of information act. ... The fact that the Legislature used the phrase “pursuant to section 13” of FOIA, rather than specifically indicating that all MCCA records are exempt under 15.243(d)... tends to show that the Legislature intended for information to be exempt from FOIA only if such information came within one of the specified exemptions in MCL 15.243. [Emphasis in original.]
The trial court also held that plaintiffs were entitled to the MCCA’s records under Shavers,
In addition, the Court agrees with CPAN’s argument regarding the decision in [Shavers] that Michigan citizens have a right to know how the insurance premium they pay is calculated to ensure that no-fault insurance is provided on a fair and equitable basis. This concept intertwines with the theories asserted by BIAMI regarding the common law right to information and resulting trusts. Because the MCCA rate charged to insurers is passed on to the insured individuals as part of the premium they pay, it is reasonable to conclude that citizens essentially fund the MCCA reserves by paying that premium; thus, individual citizens have a financial interest in the rate calculation process and how it is conducted.
... Specifically, pursuant to the constitutional principles articulated in Shavers, the MCCA must disclose general rate calculation information such as amount of funds contained in MCCA reserves, number of claimants, administrative costs, nature and type of investments of the reserves, amount currently paid by insurers and specific accounting as to increase/decrease in yearly rate calculated, etc. However .. . MCCA is not required to disclose personal information regarding individual claims or information that could reasonably lead to extrapolation of individual claimants’ names.
II. STANDARDS OF REVIEW
We review de novo a trial court’s ruling on a motion for summary disposition. Maiden v Rozwood,
A. FOIA
The MCCA contends that the trial court erred by holding that its records were not exempt from FOIA.
“Under FOIA, a public body must disclose all public records that are not specifically exempt under the act.” Hopkins v Duncan Twp,
Section 13 of FOIA, MCL 15.243, lists various types of records and information that a public body may exempt from the act’s disclosure requirements. MCL 15.243(l)(d) provides that “[a] public body may exempt from disclosure as a public record under this act... [r]ecords or information specifically described and exempted from disclosure by statute” (emphasis added). MCL 500.134, a section of the Insurance Code,
(4) A record of an association or facility shall be exempted from disclosure pursuant to section 13 of the freedom of information act....
(6) As used in this section, “association or facility” means an association of insurers created under this act and any other association or facility formed under this act as a nonprofit organization of insurer members, including, but not limited to, the following:
*310 (c) The catastrophic claims association created under chapter 31. [Emphasis added.]
The MCCA argues that, read together, MCL 500.134(4) and (6) exempt its records from FOIA. Plaintiffs implicitly concede that the MCCA is an “association or facility” under MCL 500.134(6), but nevertheless contend that the statute does not carve out a wholesale exemption for the MCCA’s records. Resolution of this issue requires that we construe the meaning of the relevant statutory provisions. “When interpreting the meaning of a statute, our primary goal is to discern the intent of the Legislature by first examining the plain language of the statute.” Driver v Naini,
Applying the plain language of MCL 500.134(4) and (6), we conclude that the trial court erred as a matter of law by holding that the MCCA’s records were not exempt from FOIA. Subsection (4) unambiguously exempts “[a] record of an association or facility” from disclosure, and subsection (6)(c) defines an “association or facility” to include the MCCA. When read together, the subsections provide that “a record of [the MCCA] shall be exempted from disclosure pursuant to section 13 of [FOIA],” thus specifically describing and exempting the MCCA’s records from disclosure. These provisions work in accordance with § 13 of FOIA, which permits a public body to exempt from disclosure “[r]ecords or information specifically described and exempted ... by statute.” MCL 15.243(l)(d). There is no ambiguity in these provisions: subsections (4) and (6) clearly mandate that if “a record” of the MCCA is at issue, it “shall be exempted from disclosure pursuant to
Plaintiffs make much of the fact that MCL 500.134(4) refers to “a record,” while MCL 15.243(l)(d) applies to “records or information specifically described and exempted from disclosure by statute.” We find this minimally differing language of no interpretive consequence. The statute fully exempts any and all of the MCCA’s records from FOIA. It accomplishes this goal by employing the indefinite article “a” to identify which records are exempt from FOIA. The Legislature’s use of the indefinite article “a” in MCL 500.134(4) clearly indicates its intent to exempt all of the MCCA’s records in general.
The trial court erred by concluding that the phrase “pursuant to section 13” in MCL 500.134(4) meant that the MCCA’s records were only exempt from FOIA if they fell within one of the enumerated exemptions in § 13. As noted, § 13(l)(d) permits another statute to exempt records from FOIA. In this case, MCL 500.134(4) and (6) exempt the MCCA’s records from disclosure. As a result, it is not necessary for the MCCA’s records to fall within any of the other § 13 exemptions. See King v Mich State Police Dep’t,
Plaintiffs contend that § 13(l)(d) permits a statutory exemption for the production of specified records but it does not permit “a statutory exemption of the public body itself.” Therefore, according to plaintiffs, MCL 500.134 cannot wholly exempt the MCCA’s records from FOIA. Plaintiffs’ argument lacks merit. The plain language of MCL 500.134(4) and (6) meets the requirements of § 13(l)(d) in that, read together, these subsections specifically exempt all records of the MCCA. Nothing in § 13 of FOIA precludes the Legislature from exempting all records of a particular entity from FOIA, and we will not read such a restriction into § 13. See Paschke v Retool Indus,
On cross-appeal, plaintiffs contend that MCL 500.134(4) cannot exempt the MCCA’s records because the statute violates the state constitution. Although the trial court failed to address and decide this issue, CPAN raised it in the lower court and the issue involves a question of law concerning which the necessary facts have been presented. Therefore, we will address plaintiffs’ constitutional arguments. See Duffy v Dep’t of
“[W]hen a party seeks our declaration that a statute violates the Constitution, we must operate with the presumption that the statute is constitutional unless its unconstitutionality is clearly apparent.” UAW v Green,
Plaintiffs contend that MCL 500.134(4) violates the Michigan Constitution because the Legislature did not reenact and republish FOIA when it enacted MCL 500.134(4). Const 1963, art 4, § 25 provides: “No law shall be revised, altered or amended by reference to its title only. The section or sections of the act altered or amended shall be re-enacted and published at length.”
MCL 500.134(4) did not revise, alter, or amend FOIA. Rather, FOIA contemplates statutory exemptions. Specifically, § 13(l)(d) provides in pertinent part that “[a] public body may exempt from disclosure as a public record under this act. . . [r]ecords or information specifically described and exempted from disclosure by
Plaintiffs also contend that MCL 500.134(4) violates the Title-Object Clause of the Michigan Constitution, Const 1963, art 4, § 24, which provides:
No law shall embrace more than one object, which shall be expressed in its title. No bill shall be altered or amended on its passage through either house so as to change its original purpose as determined by its total content and not alone by its title.
“The purpose of the Title-Object Clause is to ensure that legislators and the public receive proper notice of legislative content and [to] prevent[] deceit and subterfuge.” Gen Motors Corp v Dep’t of Treasury,
There are three types of challenges that may be brought under the Title-Object Clause:
(1) a “title-body” challenge, which indicates that the body exceeds the scope of the title, (2) a “multiple-object challenge,” which indicates that the body embraces more than one object, and (3) a “change of purpose challenge,” which indicates that the subject matter of the amendment is not germane to the original purpose. [Wayne Co Bd of Comm’rs v Wayne Co Airport Auth,253 Mich App 144 , 185;658 NW2d 804 (2002).]
A title-body challenge tests “whether the title [of an act] gives fair notice to the legislators and the public of the challenged provision” contained in the act’s body. H J Tucker & Assoc, Inc v Allied Chucker & Eng Co,
[I]t is not necessary that a title be an index of all of an act’s provisions. It is sufficient that the act centers to one main general object or purpose which the title comprehensively declares, though in general terms, and if provisions in the body of the act not directly mentioned in the title are germane, auxiliary, or incidental to that general purpose .... [Livonia v Dep’t of Social Servs,423 Mich 466 , 501;378 NW2d 402 (1985) (quotation marks and citation omitted).]
The fair-notice requirement is violated only “where the subjects [of the title and body] are so diverse in nature that they have no necessary connection . . . .” People v Cynar,
Enrolled Senate Bill 707, which was signed into law as
*316 AN ACT to amend section 134 of Act No. 218 of the Public Acts of 1956, entitled as amended “An act to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and associations and the admission of foreign and alien companies and associations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and associations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, and associations engaged in an insurance or surety business may exercise their powers . .. being section 500.134 of the Michigan Compiled Laws.” [Emphasis added.]
The title indicates that part of the purpose of the act is to define the rights, powers, and immunities of associations involved in the insurance business. The MCCA is an association involved in the insurance business, and the FOIA exemption in MCL 500.134(4) concerns the rights, powers, and immunities of such associations. Therefore, it cannot be said that the title and body of the act are so “diverse in nature that they have no necessary connection” between each other and plaintiffs’ title-object argument fails. Cynar,
In sum, the plain language of MCL 500.134(4) and (6) exempts the MCCA’s records from FOIA, and MCL 500.134(4) does not violate Const 1963, art 4, § 24 or Const 1963, art 4, § 25. The trial court therefore erred as a matter of law by holding that the MCCA was required to disclose any of its records under FOIA.
In Shavers, the Michigan Supreme Court addressed a constitutional challenge to the no-fault act. The Shavers Court held that the statutory obligation for all motorists to buy no-fault insurance was dependent on the right of all motorists to have no-fault insurance “available at fair and equitable rates.” Id. at 599. Accordingly, the Court held that the obligation of motorists to buy no-fault insurance was unconstitutional if their right to have insurance available at fair and adequate rates was not protected by due process. Id. at 599-602. In determining what process was due, Shavers held that, at a minimum, the statutory scheme must ensure that insurance rates “are not, in fact, ‘excessive, inadequate or unfairly discriminatory’ ” and also ensure that “persons affected have notice as to how their rates are determined and an adequate remedy regarding that determination.” Id. at 601, quoting MCL 500.2403(l)(d).
Contrary to the trial court’s conclusion, Shavers is inapplicable in the present case. In response to Shavers, the Legislature amended the Insurance Code by enacting
Furthermore, even assuming that the premiums are passed on to individual policyholders, Shavers does not stand for the broad proposition that policyholders are entitled to access every component of the cost they pay for no-fault insurance. Instead, Shavers mandated disclosure of limited ratemaking criteria to ensure that no-fault policyholders were treated fairly and equally. In this case, to the extent the MCCA’s premiums are passed to policyholders, unlike in Shavers, they are subject to an extensive regulatory scheme.
In sum, Shavers is inapplicable in this case because the Insurance Code corrected the constitutional deficiencies identified in Shavers, Shavers did not stand for the broad proposition that policyholders have the right to access every component that comprises their insurance rates, and, unlike in Shavers, there is an effective regulatory scheme in place that governs the MCCA and the procedures the MCCA uses to determine its premiums. Accordingly, the trial court erred as a matter of law by holding that plaintiffs had a right to access the MCCA’s records pursuant to Shavers.
C. COMMON LAW
Next, the MCCA argues that the trial court erred by concluding that Shavers “intertwined” with plaintiffs’ right to access its records under the common law. Plaintiffs counter that the trial court correctly held that they had a common-law right to inspect the MCCA’s records, and they rely on Nowack v Auditor General,
Nowack illustrates this state’s longstanding public policy that citizens have access to certain public records. However, by enacting FOIA and MCL 500.134(4) and (6), the Legislature clearly intended to supplant any preexisting common-law right to access the MCCA’s records.
“The common law remains in force until it is affirmatively modified.” Hamed v Wayne Co,
While there is no published caselaw in this state directly on point, the United States Supreme Court and federal courts have addressed conflicts between the
In Nixon v Warner Communications, Inc,
Federal courts have applied this principle to the federal FOIA. In United States v El-Sayegh,
Several years later, in Ctr for Nat’l Security Studies,
FOIA provides an extensive statutory regime for plaintiffs to request the information they seek. Not only is it uncontested that the requested information meets the general category of information for which FOIA mandates disclosure, but for the reasons set forth above, we have concluded that it falls within an express statutory exemption as well. It would make no sense for Congress to have enacted the balanced scheme of disclosure and exemption, and for the court to carefully apply that statutory scheme, and then to turn and determine that the statute had no effect on a preexisting common law right of access. Congress has provided a carefully calibrated statutory scheme, balancing the benefits and harms of disclosure. That scheme preempts any preexisting common law right. [Id. at 936-937.]
We find the principles set forth in Nixon, El-Sayegh, and Ctr for Nat’l Security Studies instructive in this case. Like its federal counterpart, Michigan’s FOIA provides a comprehensive statutory scheme that governs requests for public records held by public bodies. FOIA provides a detailed course of conduct for individuals to pursue in order to obtain public records. Included within the scheme are statutory exemptions for certain types of information. As we have explained, the MCCA’s
Plaintiffs appear to contend that, irrespective of FOIA’s alteration of the common law, if the MCCA is considered a private entity, plaintiffs have a common-law right to inspect its records. However, even if we were to assume that the MCCA is a private entity, plaintiffs would not have the right to inspect its records. Nowack concerned the common-law right to access public records. See Nowack,
Plaintiffs’ argument that a “special interest” vests an individual with the right to inspect private records under Nowack is also without legal merit. While the
So, in the instant case, the plaintiff as a citizen and taxpayer has a common-law right to inspect the public records in the auditor general’s office .... It is a right that belongs to his citizenship. It is a right which he enjoys in common with all other citizens, a public right which can be enforced only by mandamus proceedings brought by the attorney general. It is not, and never has been, the policy of the law to permit private individuals the use of the writ of mandamus against public officers, except in cases where they had some special interest, not possessed by the citizens generally....
The plaintiff has not sought to enforce his rights through the office of the attorney general. He has begun this suit in his own name. In order to maintain it, he must show that he has a special interest not possessed by the citizens generally. [Nowack,243 Mich at 208 (quotation marks and citation omitted; formatting altered).]
Thus, the special interest addressed in Nowack did not vest the plaintiff with a right to access private documents. Rather, the inquiry into the plaintiffs special interest occurred only because the plaintiff sought to enforce his right to inspect public records by a writ of mandamus in his own name.
Plaintiffs also argue that the Nowack Court’s reference to a stockholder’s right to inspect the “books and records of his corporation” shows that individuals have a common-law right to inspect private records. In discussing an individual’s ability to enforce a right of inspection by way of mandamus, the Nowack Court discussed cases involving a “controversy over the right
In sum, under the common law, citizens of this state had a right to access certain public records held by public entities as articulated in Nowack-, however, by enacting FOIA and MCL 500.134(4) and (6), the Legislature created a comprehensive statutory scheme that governs access to public records in general and the MCCA’s records in particular. In doing so, the Legislature clearly supplanted any preexisting common-law right of inspection that plaintiffs may have had in this case, and the trial court erred by concluding otherwise.
D. RESULTING AND CONSTRUCTIVE TRUSTS
The MCCA argues that, to the extent the trial court ruled that plaintiffs were entitled to access its records under a trust theory, the court erred as a matter of law. After agreeing with plaintiffs’ argument concerning Shavers, the trial court stated that “[t]his concept intertwines with the theories .. . regarding.. . resulting trusts.”
Our Supreme Court described a resulting trust as follows:
*325 A resulting trust arises where a person makes or causes to be made a disposition of property under circumstances which raise an inference that he does not intend that the person taking or holding the property should have the beneficial interest therein .... [Potter v Lindsay,337 Mich 404 , 410;60 NW2d 133 (1953) (quotation marks and citation omitted).]
To the extent the trial court held that plaintiffs are entitled to access the MCCA’s records under a resulting trust theory, the trial court erred as a matter of law. A resulting trust is wholly unrelated to an individual’s right to know how insurance premiums are calculated. Rather, a resulting trust concerns certain transfers of property to a third party. Id. Thus, the trial court erred by holding that Shavers “intertwined” with a resulting trust theory. Furthermore, plaintiffs did not transfer money to the MCCA. Instead, member insurers pay the MCCA’s premiums. Moreover, even if the MCCA’s premiums are reflected in plaintiffs’ no-fault rates, plaintiffs cannot reasonably argue that they did not intend their insurers to obtain a beneficial interest in the rates they pay for no-fault insurance. Consequently, plaintiffs’ resulting trust claim failed as a matter of law.
Similarly, to the extent the trial court held that the MCCA was required to disclose records under a constructive trust theory, it erred as a matter of law. A constructive trust is not an independent cause of action; rather, it is an equitable remedy. See Rammer Asphalt Paving Co v East China Twp Sch,
IV CONCLUSION
In summary, plaintiffs’ claims failed as a matter of law and plaintiffs are not entitled to access the MCCA’s records. The MCCA’s records are not subject to FOIA disclosure because the plain language of MCL 500.134(4) and (6) expressly exempt the records from FOIA and MCL 500.134(4) does not violate Const 1963, art 4, § 24 or Const 1963, art 4, § 25. In addition, plaintiffs were not entitled to access the MCCA’s records pursuant to the holding in Shavers,
Reversed and remanded for entry of an order awarding summary disposition in favor of the MCCA consistent with this opinion. A public question being involved, no costs awarded. MCR 7.219. We do not retain jurisdiction.
Notes
Several additional individual plaintiffs were added to the case when CPAN filed its amended complaint.
The trial court’s original opinion and order is missing from the lower court record; however, the MCCA attached a copy to its application for leave to appeal and plaintiffs do not contest the authenticity of that document.
Coalition Protecting Auto No-Fault v Mich Catastrophic Claims Ass ’n, unpublished order of the Court of Appeals, entered March 8, 2013 (Docket No. 314310).
MCL 500.100 et seq.
FOIA was effective in 1977, while MCL 500.134 was enacted in 1988. See
Because we conclude that all MCCA records axe exempt from FOIA, we need not address plaintiffs’ argument on cross-appeal that the trial court erred by holding that certain information regarding individual claimants was exempt from disclosure.
Though not binding on this Court’s interpretation of state law, “federal precedent is generally considered highly persuasive when it addresses analogous issues.” Wilcoxon v Minn Mining & Mfg Co,