*1 GREEN v WILSON 104028, 104034, Argued (Calendar Docket Nos. March 104039. No. 9). July 22, Decided 1997. Martin, Michigan, brought Diane B. Green and Leslie L. residents of negligence Wayne against action in the Circuit Court Fraser R. Wil- son, Ontario, alleging speeding of resident that the was defendant when his car crossed the line in the center Detroit-Windsor tunnel plaintiffs brought and collided head-on with their vehicle. The also dramshop against Inc., Enterprises, alleg- actions Vivio’s and Jason ing that both establishments served alcohol to the defendant when visibly intoxicated, he was and that accident occurred when he returning Phillip court, Jourdan, was home from bars. these J., granted summary disposition, holding Wilson’s motion for that Michigan’s statute, long-arm he within was not the reach of 27A.705, dramshop MSA and dismissed the actions allegedly person because the intoxicated retained as not Appeals, P.J., defendant. The Court of and Bandstra and White, JJ., opinion per curiam, holding W. Cynar, P. reversed in an that Wilson, compliance courts have over and that dramshop with the name and retain of the clause act would be allegedly person excused when the is dismissed for (Docket 156889). lack of No. The defendants appeal. by joined Cavanagh opinion In an Justice Kelly, Justices and opinion by joined an Justice Justices Brickley Boyle, Weaver, opinion by Supreme and and an Chief Justice Riley, Mallett, Court held/. preceded acts in Wilson’s his tortious subject 600.705(2); acts in Canada were insufficient to him to MCL 27A.705(2). jurisdic- The failure to retain Wilson was due to a plaintiffs avoid, any tional defect fear could of col- significantly lusion between the Wilson reduced. compliance provisions Strict with the name-and-retain would frus- purpose trate the act. Long-arm nature, types character, 1. statutes establish purposes exercising personal juris- must contacts that exist for process, hand, permissible long- diction. Due on the other restricts Green v Wilson necessary jurisdiction by defining quality contacts arm personal jurisdiction
justify
If a defendant’s
under
constitution.
statute, juris-
of a
or
fit within a
actions
status
process
long-
permits. The
extended as far as due
diction
be
*2
process insofar as the statute
arm
is coextensive with due
statute
pro-
therefore,
by
process, and,
and due
due
statute
is limited
boundary. The
nature of
same outer
coextensive
cess share the
par-
pertinent only
Michigan’s long-arm
if the
becomes
fit
a
stat-
of a defendant first within
ticular acts or status
provision.
ute
personal
2.
over a defendant
be exer-
Limited
provision
Michi-
if
falls within
of
cised
the defendant’s conduct
pro-
comports
gan’s long-arm
with due
statutes and the exercise
consequences
705(2),
or its
must
§
cess.
the defendant’s act
Under
consequences
Michigan.
of the defend-
have occurred in
While the
act,
Canada,
purposes
in
where
ant’s
of subsection
occurred
injuries,
Wil-
so too did the act. At the time
sustained
Michigan
Michigan,
had
tort.
in
son left
he
committed no
The acts
preceded
allegedly
in
were insuffi-
that
his
tortious acts
Canada
subject
2.
cient to
him to subsection
dramshop action,
plaintiff
maintaining
As
3.
a condition of
alleged
person
liti-
must
retain the
intoxicated
until the
name and
Generally,
gation
settlement.
failure
is concluded
trial or
will
in termination of
retain the named intoxicated defendant
result
However, exceptions
plain-
recognized. The
the action.
have been
brought
dramshop
tiffs in
into the
action as
this case
Wilson
required,
jurisdictional
failure to
him was
to a
but their
retain
due
they
possibility
The
collusion
defect that
could not avoid.
of
remote,
plaintiffs and
is
the indemnifica-
between the
Wilson
and
436.22(7);
18.993(7)
reduces it.
tion
of
further
compliance
provision would
Strict
with the name-and-retain
be
would
the essential
unfair under the circumstances and
frustrate
purpose
of the
act.
joined
concurring
Brickley
Justice
Justices
and
Weaver,
Riley,
justifia-
part
dissenting
part,
in
is no
in
and
further stated that there
plain language
exception
an
to the
of the
ble reason to create
provision Michigan’s dramshop act where the
“name and retain”
of
allegedly
driver
been dismissed for lack of
intoxicated
has
jurisdiction. Departure
a statute
from a literal construction of
produce
unjust
justified
result and
when it would
an absurd and
purposes
policies
clearly
of the
inconsistent with the
and
be
identity
allegedly
act,
individ-
where the
intoxicated
such as
Clearly,
reasoning
apply in
does not
this
ual
unknown.
this
Affirmed in and reversed in App (1995) affirmed in part. reversed in v Wilson Green Opinion by Kelly, L. Imbru- Imbrunone, P.C. Thomas Addis & (by none), plaintiffs-appellees. for the Bazzaná), Ernest R. Cooney, & P.C.
Plunkett
(by
Wilson.
Robert
defendant-appellant
for
M.
Henk,
Kozerski),
P.C.
Ted
for
Kallas &
(by
Enterprises,
Inc., doing
Jason
defendant-appellant
Booby Trap Lounge.
business as
&
W.Fin-
Finley (by Gregory
Morrison, Morrison
Inc., doing business as
ley)
Vivio’s,
for
defendant
Spirits.
Vivio’s Food and
Kelly,
presents
1)
case
two issues:
whether
J. This
personal
juris-
may
limited
Michigan courts
exercise
who
diction over a nonresident
becomes
Michigan,
intoxicated in
Michigan,
chooses
drive
jurisdiction, and
and causes an accident
in another
pro-
compliance
whether
with the name-and-retain
2)
vision of
act will be excused when
person
litiga-
is dismissed from
allegedly intoxicated
jurisdiction.
436.22(6);
tion
lack of
MCL
We conclude that defendant Fraser
18.993(6).
preceded
Wilson’s
his
acts
subject
in Canada
insufficient
tortious acts
were
him to
MSA 27A.705.
(2)
subsection
Appeals
Therefore, we
reverse
lim-
courts
exercise
determination that
personal jurisdiction
him.
ited
over
it is neces-
suit,
As
cannot be retained
Wilson
dramshop action
sary whether
determine
Enterprises
Vivio’s was
Jason
against defendants
*4
We
that
the failure
properly dismissed.
conclude
that
jurisdictional
was due to a
defect
retain Wilson
fear
not avoid. We also conclude that
plaintiffs could
of collusion between and defendant Wilson significantly reduced in this case. Under the cir- compliance cumstances, strict with the name-and- purpose retain dramshop would frustrate the of the Consequently,
act. we would affirm Appeals Court of decision that allows a continuation dramshop against action defendants Jason Enterprises and Vivio’s.
i Lynn Plaintiffs Diane Green and Leslie Martin, both Michigan, residents of and defendant Wilson, a resi- dent of Ontario, were involved in an automobile acci- dent in the Detroit-Windsor tunnel. The accident approximately occurred in Canada, one thousand yards Michigan-Ontaiio south of the border. Plaintiffs allege exceeding speed that Wilson was limit when his car crossed the center line and collided head-on with allege their car. Plaintiffs further Wilson was intoxicated. negligence Wayne
Plaintiffs sued Wilson for Cir- cuit against and instituted actions defendants Enterprises, Vivio’s,Inc., and Jason Inc. Enterprises operate Both Vivio’sand Jason bars in the City complaint, plaintiffs of Detroit. In allege their that both establishments served alcohol to Wilson visibly while he was intoxicated. Plaintiffs also assert the accident occurred when Wilson returning home from the defendant bars. summary disposition
Wilson moved for
under MCR
2.116(C)(1), arguing
that the court lacked
granted
over him. The trial court
holding
motion,
that Wilson was not within the reach
Michigan’s long-arm
statute, MCL 600.705; MSA
*5
347
Green v Wilson
Opinion by Kelly, J.
27A.705. The trial court also dismissed the against
Enterprises
actions
Jason
Vivio’s,
because
failed to retain the allegedly intoxicated
person as a defendant.1 The Court of Appeals held
that Michigan
courts do have
over Wilson
purposes
for the
of
litigation.
The Court further
compliance
held that
with the name-and-retain clause
of the dramshop act would be excused when the
person
intoxicated
is dismissed for lack of
personal
jurisdiction. 211
App 140;
535 NW2d
We
(1995).
granted
appeal.
leave to
n
A personal
analysis
is a two-fold
inquiry: (1) do the defendant’s acts fall within the
applicable long-arm statute, and (2) does the exercise
of
over the
comport
defendant
with due
process? Starbrite Distributing,
Inc v Excelda Mfg
Co,
The United
Supreme
States
expanded
scope
personal
constitutional
of
jurisdiction with its
International Shoe Co v Washington, decision
154;
US
66 S Ct
Opinion by Kelly, Shoe, the Court inteipreted 369. In International jurisdiction. conferring as not Clause Due Process establishing as the clause Rather, it construed jurisdictional power. permissible outer limits legis- comes from personal jurisdiction actual grant with the invest courts statutes that lative jurisdiction.3 exercise power to character, nature, establish the statutes Long-arm purposes that must exist types of contacts *6 process, Due on the jurisdiction. exercising personal jurisdiction hand, permissible long-arm restricts other justify necessary to quality of contacts defining See jurisdiction under the constitution. personal Mich, Hadad v Lewis, Supp 1365, (ED 382 F may long-arm arise where Thus, situations 1974). the con- jurisdiction than does permits greater statute See Starbrite at 315 J., concurring stitution.4 (Weaver, Likewise, may there be part). dissenting power court will lack the instances where state defendant, even personal jurisdiction over exercise constitutionally permis- jurisdiction be though Warehouses, Inc, Mallory v Conida sible. See App 280, 286-288; (1982). primarily types long-arm two statutes: There are as the California “self-adjusting,” such “laundry-list,” such as statute, Michigan’s and the has The Cahfomia statute 600.705; MSA 27A.705. 3 See, jurisdiction States Juenger, Judicial in the United generally, comparison, European A in the communities: 82 Mich L R 1195 terms, jurisdiction may, give [Although to the statute its par applied court, pass muster as to the it must also constitutional Ivey, (ED Supp v States 747 F [United ticular case. Mich, 1990).] Green Wilson Opinion by Kelly, self-adjusting been called because it stretches auto- matically to extend wherever the Due permits. complete Process Clause Like a solar eclipse, process statutory analyses the due overlap entirely. only a Therefore, one-step analysis is neces- sary. Glannon, Civil Procedure, Examples and Expla- nations (2d ed), pp 24-27.
Laundry-list specific statutes enumerate acts that give jurisdiction. rise to They permit do not a one-step analysis, even in they circumstances where thought are to be process. “coextensive” with due analysis partial Their is akin to a eclipse, solar with part of the statute granting per- within the missible scope constitutional and part of the statute possibly outside it. Id. Court is the first in Michigan that was Sifers’
credited with stating
concept
per
limited
sonal
is coextensive with due process.
Since Sifers,
many
Michigan state and federal courts
interpreted
have
Michigan long-arm statutes as coex
tensive
Sifers,
process.5
with due
the Court stated:
*7
5 See, e.g.,
Arcilio,
App 54, 73;
Ins Comm’r v
221 Mich
Opinion Kelly, upon in this case to construe We are called attempt the of represents an on statute which potential expand limited to its full Michigan legislature to jurisdiction Michigan courts over nonresidents. personal of say prepared is forbidden Unless we are jurisdiction to the to exercise Federal Constitution we should not construe in the statute indicated
extent Horen, restrictively. so statute [Sifers added).] (emphasis (1971) interpret that, if a defendant’s to mean We Sifers long-arm fit within actions or status as far as due be extended statute, process permits.6 statute is coextensive The process limited as the statute is with due insofar pro- process, therefore, the statute and due and, due boundary. reasoning outer cess share the same interpretation. supports implicit Mallory Mal- lory, supra at 286-288. Appeals Mallory, determined the Court of jurisdic- statutory personal grounds for
none permitted exercise of tion that the at 286-287.It reasoned over a sister state. Id. permit Legislature a suit in such did not intend process Michigan, regardless what due Consequently, conduct a there was no need to allow. analysis. process Id. at 288. due Michigan’s long-arm nature of The coextensive particular pertinent only if the becomes as coextensive with due notes that reference to statutes One author phraseology misleading. process would be He believes that such is often specific categories jurisdic- to mean that interpreted
better interpreted, be as lib- statute are to conveyed by long-aim tion erally process (empha- allow. as the due clause will at [Glannon added).] sis *8 v Wilson Green J. Opinion Kelly, long-arm acts or of a defendant first fit a status within implicitly provision. Mallory statute As the con- equal cluded, this does not mean that the two are require single inquiry solely upon process a based due restrictions. provisions §
The enumerated 705 would be superfluous any Legislature intended activ- ity satisfy long-arm that is constitutional also stat- Michigan Legislature Furthermore, ute. could language have written into the statutes that confers jurisdiction process, to the broadest limits of due as other have states done. It chose not do so.7 per-
The State limited exercise jurisdiction sonal over Wilson if two conditions are provi- met: Wilson’s First, conduct must fall within a Michigan’s long-arm sion of Second, statutes. jurisdiction comport pro- exercise of must with due supra. Starbrite, cess. long-arm pertaining acquiring
The state’s statute personal limited over individuals on the specific basis of acts is codified at MCL 27A.705. It states: any following relationships
The existence of agent between an individual or his and the shall state con- stitute a sufficient basis of enable court of record of this state to exercise limited arising over individual . . . out of an act which creates any following relationships:
[*]
[*]
[*]
Legislature
The
Illinois
added
catch-all
to its enumerated
Anderson,
long
See
statute
1989.
reach
Illinois’
stat
provision,
ute: The
B J 504
catch-all
84 Ill
Opinion Kelly, *9 done, causing (2) doing an act to be or conse- The or resulting quences occur, state in an action for tort. in the allege in activities Plaintiffs that Wilson’s § 2 of fall within subsection 705. specific types of not
Section 705 does delineate purposes of subsection 2. The acts that suffice for only provides guidance is “act” it that the or “conse- quences must in an action for tort.” of the act” “result plain reading language words reveals that A these injury must occur either the tortious conduct or the Michigan. in purposes of subsection the act is case, allegedly negligent careening of defendant’s plaintiffs’
speeding vehicle into vehicle while defend- alleged ant drove Plaintiffs that Wilson intoxicated. speed throughout “travel[ed] at an excessive rate of the center line in [Windsor] tunnel did cross attempt pass striking [an] vehicle, a motor head-on operated being in the lane a northbound vehicle plaintiff . .” That act in . . occurred Canada. consequences Canada, of the act also occurred in Any liability injuries. where the sustained liquor under the dram- the defendant establishments shop triggered by act to be the accident had Canada. unpersuaded
We are the dissent’s contention drinking driving the “act” while in that is Wilson’s Michigan. at 374-375. At the time Wilson left Post Michigan, tort. he had committed no The acts preceded Wilson’s tortious subject him to acts Canada were insufficient MSA27A.705. subsection of MCL Green v Wilson
Opinion by Kelly, can While the Court envision where situation an act in in a Michigan results tort this case elsewhere, does not involve one. Most find states the exercise of over nonresidents for out-of- state driving accidents under circum- analogous impermissible. stances Casad, Jurisdiction Civil Actions, 7.02[2][e][i], p Consequently, 7-34. ¶ we do not believe subsection 2 appropri- ate in this case. Since Wilson’s acts do fit under statute, do pro- § we not reach due opinion. cess for the reasons noted in n of this rv analyze We next the dramshop whether action *10 against defendants Jason Enterprises and Vivio’s continue without Wilson. dramshop provides act statutory an exclusive
remedy against liquor licensees for selling alcohol to or visibly minors intoxicated persons.
MSA 18.993. As a condition a of dram- maintaining shop action, plaintiff a must “name-and-retain” the person alleged intoxicated until the litigation con- by trial cluded or settlement. MCL 436.22(6); 18.993(6). recognized One purpose of the name-and- provision preclude retain tois collusion between the plaintiff and Putney person. the intoxicated Haskins, v 414 Mich 324 NW2d (1982). 729 accomplished This is ensuring that the intoxicated person has a financial stake in the of outcome case. Id.
Generally, the
a
Court has determined that
failure
required
to retain the named intoxicated defendant as
by subsection 6
in a
results
termination of the dram-
Putney
v A & G Enter-
Spalo
shop
188;
action.
at
Mich 342
455
354
Opinion by
Kelly,
(After Remand),
prises
406, 409-411;
Mich
(1991). However,
of the Court
members
NW2d 546
man-
also
that certain circumstances
have
reasoned
pro-
application
the name-and-retain
a
date
looser
NW2d
Clements,
v
vision. See Salas
Shay
(1976);
Inc,
401-
JohnKal,
402;
The Court in Salas reasoned justified was statute the literal construction unknown. Id. at because the named defendant was requiring plain- reasoned that 109-110.The Court may actually tiff to retain an unknown defendant encourage defend- collusion between dramshop. at 110. dismissal due to ant and the Id. A pro- plaintiffs’ an unknown defendant failure retain unjust an result and was inconsis- duced absurd policies dramshop purposes with tent act. Id. plurality Shay, reasoned that to the name-and-retain
strict adherence unjustified. Justice and Justice Levin Chief Cavanagh so concluded that the risk of fraud and collusion was pro- the name-and-retain attenuated that violation of at 402. vision did not occur. Id. Justices Brickley that there was no conflict between concluded Boyle However, rules and the act. the mediation they plaintiff rejected that, if a mediation concluded comply provi- in order to with name-and-retain *11 justices four sion, Thus, no sanctions should follow. suit to without the named allowed the continue Id. at 405. defendant. plaintiffs brought Wilson the case,
In this into by dramshop required 22(6). action as subsection As opinion, n of their failure to discussed in this v Wilson Green Opinion by Kelly, J. to a jurisdictional retain him was due defect plaintiffs could not avoid. identity known, complete
Since the of Wilson is Salas pres- absence of collusion that existed in is not unlikely However, ent here. it highly there the collusion between and Wilson envi- Putney sioned given the Court the reasons for plaintiffs’ to fact, failure retain Wilson. In strict com- pliance could lead dramshops intoxi- encourage cated nonresident defendants contest to avoid a dramshop action. See Salas at 110. There- fore, under the circumstances of this case, we con- possibility clude that the of collusion is remote and that subsection 7 of dramshop act further reduces it. 436.22(7); 18.993(7). MSA dramshop
Under subsection has “right to full the allegedly visibly indemnification from person for all damages against awarded the licensee.” MCL 436.22(7); 18.993(7).8 Consequently, one expect Wilson not to engage energetic assis- tance of plaintiffs’ case as was discussed in Salas at 110. Subsection 7 seems to allow the dramshops to enforce the indemnification provision separate in a cause action against Wilson if necessary. Presum- ably, dramshops could enforce a provision such Canada. even Thus, though Wilson party is not a his lawsuit, financial stake in it will remain strong. agree
We with Appeals the Court of reasoning that strict enforcement of the name-and-retain provision would be unfair in this case. 211 App 141. The Subsection 7 was added 1986 amendments of the act. *12 342 455 Mich 356 Opinion Kelly, J. negligence their able to exercise be against Wilson, but are in Canada of action
cause dramshops against apparently the cause without dramshop action the Furthermore, since there.9 remedy against a visi- a licensee who serves exclusive dramshops bly person Michigan, the subject penalty. 436.22; MSA no MCL will be bring deny plaintiffs opportunity to To the 18.993. dramshops against frus- the would action cause of purpose dramshop act. See of the trate the essential 109-110. Salas at
Lastly, unpersuaded defendants’ fear we are defending respect dram- with of shop burden undue of the indemnification action. With existence provision, little dif- will have it seems defendants necessary, parties ficulty deposing Also, Wilson. rogatory in order to to obtain letters should be able depose system. legal See, Wilson under the Canadian e.g., 28 Touche, & OR3d 188 re Fecht v Deloitte (1996). jurisdic- of a
As cannot be retained because Wilson beyond plaintiffs’ control, find that we tional defect compliance with name-and-retain strict dramshop purpose act. frustrate the would 18.993(6). 436.22(6); a result, As we Appeals decision affirm the Court against action a continuation of the allows Enterprises and Vivio’s. defendants Jason J. JJ., Cavanagh Kelly, with Boyle, concurred possible against express opinion are as to what causes do not an We situation, analogous particular In an reverse defendants Canada. these Appeals however, courts were unable to found that Lopez, dramshops. Mozdy See over Canadian exercise App NW2d Green v Wilson
Opinion by J. Weaver, (concurring and dissenting in Weaver, I concur with the parí). reasoning and result of the opinion’s lead conclusion that does not over However, exist defendant Wilson. I dis- opinion’s sent from the lead exception creation an *13 to the “name and retain” provision of Michigan’s is justifiable act. There no reason exception Court to create an plain language of provision “name and retain” allegedly where the intoxicated driver has been per- dismissed for lack of jurisdiction. sonal
i
provision
The “name and retain”
the dramshop
pertinent part:
act states in
against
An action under this section
a retail
shall
licensee
alleged
per-
.
be commenced unless the . .
intoxicated
son is a named defendant
action
and is retained in
litigation
the action until the
is concluded
trial or settle-
436.22(6);
18.993(6).]
ment.
[MCL
language
provision
of this
is clear and unambigu-
Spalo
v A & G Enterprises (After Remand), ous.
409-411;
J.,
One allegedly preclude intoxicated collusion between disadvantage injured plaintiffs to the defendants has defendant.1 This licensee of the retail emphasized that prevents ways retain” the “name and [o]ne by ensuring will the defendant fraud collusion testifying, personally exam- a financial stake
have direct negli- in a witnesses, arguing did not act ining that he supra [Putney, at gent manner. 188.] allegedly stake, financial to have direct order must more than nominal defendant be actually litigation. party, but be retained in must Id. for lack intoxicated defendant excused
An stake has no direct financial litigation. Therefore, remote, there however in the Putney, supra. As or of collusion fraud. exists risk *14 Riley, supra, no can be “[t]here Court stated in this pro- compliance degrees with the ‘name and retain’ supra Riley, I Thus, at 211. would hold vision.” exception provi- creating the “name and retain” an to provision’s contrary case is the sion this purpose.
n Putney, Legisla- the 1986, after decision in In the 18.993(7) 436.22(7); the ture added MCL Legislature provision, have adopting “name retain” the the difficulty determining recognized whether inherent for the court the judicial resulting a of fraud and the drain on serious likelihood there Putney, supra per resources, at rule se. and instead decided to create a 187. Green Wilson Opinion by Weaver, dramshop the act. This subsection affords “right alleged to full indemnification from the visi-
bly person damages intoxicated for all awarded yet against This the licensee.” Court has to be presented scope interpreting with a case the the provision. opinion However, indemnification the lead provision reasons that the indemnification insures against allegedly collusion because the intoxicated litigation driver retains a financial stake in the even if allegedly intoxicated defendant cannot be opinion Therefore, retained.2 the lead concludes that exception provision an to the “name and retain” is appropriate in case. reasoning
The effect of this tois render the “name provision meaningless and retain” whenever there is possibility dramshop might some that the be able to pursue person for indemnifi- pursuit litigation cation, even that involves in a for- eign as in the instant case. The conclu- opinion pur- sion of lead is with inconsistent poses provision. of the “name and retain” Further, the Legislature repeal did not or amend the clear and unambiguous language pro- of the “name and retain” provision. it vision when added the indemnification plain language Therefore, the should opinion full effect, be afforded and because the lead reasoning unpersuasive. this, I fails do find its separate expressly permitted While a for suit indemnification for all July 1986, only possible cases filed after indemnification remains ave Riley, supra, dramshop. nue of recourse As this Court noted evidently provi case filed before the effective date the indemnification sion, separate alleged suit for contribution ... case “[a] of an *15 person something deep pocket, with less than an even [is] Riley, supra possibility.” 212, more remote n 4. at 360 Mich 342 455 Opinion Weaver, J. Appeals holding that I Court of
Further, find the provision and retain the name of “strict enforcement similarly unpersua- produce an absurd result” (1995). App NW2d 233 140, 145; 535 211 Mich sive. Relying 103, 109; Clements, v on Salas (1976), that because reasoned the Court NW2d 889 responsible plaintiffs Wil- defendant for were not the personal jurisdiction, there for lack of dismissal son’s danger the was of collusion between no Wilson. defendant “departure Court noted that Salas at this
In justified is a statute construction of from the literal produce an absurd such construction would when clearly unjust inconsistent result and would be question.” purposes policies the act with the exception to the name this created an Thus, Court identity alleg- provision and edly where the retain because, unknown intoxicated individual was no situation, there could be collusion between such a alleged plaintiff and the intoxicated individual.3 apply pres- Clearly, reasoning Id. does identity intoxi- ent case where plaintiff’s lack is known. Nor is the cated defendant personal juris- lack over a dismissal for of control Legislature’s grounds ignoring clear diction only exception to the where this created an The other instance JohnKal, Inc, provision Shay retain” was in “name and Shay, held the name and retain this Court NW2d alleg where the bar of a action does not maintenance edly after a mediation intoxicated defendant was dismissed court-ordered present Shay distinguishable the dis from the case because settlement. discovery, allowing Shay occurred after thus missal of the defendant remaining its in the a testimonial record for the retail licensee action danger have been diminished of collusion also defense. Further, process. Shay plurality opinion, and the reason mediation majority ing opinions comprising the does not control. of the two *16 v Green Wilson Opinion by C.J. Mallett, allegedly mandate the intoxicated defendant must be named and retained until the conclusion of the litigation. case, this defendant is Therefore,
known. the danger of collusion and fraud against the retail licensee exists. While the of danger collusion well might remote, entirely be it is inappro- priate for this speculate Court to regarding likeli- hood such of collusion or fraud in light of the clear unambiguous of language the “name and retain” provision.
For the reasons above, stated I would an not create exception to the “name and retain” in this case.
Brickley and Riley, JJ., concurred with Weaver, C.J. (concurring in part dissenting Mallett, For part). following reasons, I dissent.
i LIMITED
As opinion the lead notes, in determining whether the exercise of limited personal jurisdiction over the is proper defendant case, two-step analysis this must First, be undertaken. it must be determined of personal jurisdiction exercise limited over Wil- son would be requirements consistent with the Due Process Clause, US Const, Am XIV. it Second, must be determined if Wilson is within the reach of Michigan’s long-arm statute, 27A.705. v Jeffrey Rapid Corp, American 178, Also, NW2d 644 (1995). because the trial court granted summary disposition in case, this it assumed that all factual allegations in complaint Mich 342
Opinion
C.J.
Mallett,
appeal.
purposes
this
Simko
are true for
(1995).
654;
310,
S
Supreme
Due
held that the
Process
States
jurisdic-
personal
a state to exercise
Clause allowed
if
has “mini-
over a nonresident
the nonresident
tion
with the state so that “traditional
mum contacts”
justice”
play
are not
of fair
and substantial
notions
principle of
Under the “minimum contacts”
offended.
not ever be
Shoe, a defendant need
International
subject
physically present
be
in a state in order to
Green v Wilson
Opinion Mallett, C.J.
personal
in that state. See McGee v Int’l
Ins,
220;
199;
355 US
78 S
2 L
2d
Ct
Ed
Life
(1957). Rather,
requirement
the “minimum contacts”
be
if
satisfied
“purposely
defendant
avails
privilege
of conducting activities
[himself]
State,
within
forum
thus invoking the benefits and
protections of its laws.” Hanson v
Denckla,
US
253; 78
1228;
S Ct
L Ed 2d 1283
If a
(1957).
purposefully
defendant
avails himself of a state’s
laws,
reasonably
he
can anticipate being haled into
that state’s courts. World-Wide
Volkswagen Wood
son,
444 US
100 S
Ct
First,
purposefully
the defendant must have
availed him-
privilege
conducting
Michigan,
self
activities in
invoking
protections
thus
the benefits and
of this state’s
Second,
laws.
the cause of action must arise from the
Third,
defendant’s activities in the state.
the defendant’s
substantially
activities must be
connected with
*18
make
exercise of
over the
rea-
defendant
supra
[Jeffrey,
186;
Distributing,
sonable.
at
Starbrite
Inc
Mfg Co,
302, 309;
(1997).]
v Excelda
454 Mich
Opinion by Mallett, C.J. solely ‘random,’ as a result of haled into quoting Burger contacts,” or ‘attenuated’ ‘fortuitous,’ King Ct 2174; 105 S Rudzewicz, 471 US Burger King, the United Ed L 2d 528 Supreme explained: States “deliberately” engaged sig- has the defendant [W]here manifestly ... has within a State he nificant activities conducting privilege of business availed himself there, his are the “bene- and because activities shielded presumptively protections” of it is fits the forum’s laws and require him to submit to the burdens of not unreasonable litigation at in that forum as well. [Id. 475-476.] Michigan are case, In this Wilson’s contacts with deliberately or attenuated. He random, fortuitous, patronized state, entered establishments that are regulated by Michigan and law, licensed and drove on governed by are this roads that maintained state. By Michigan’s patronizing using Michigan’s roads and purposefully establishments, Wilson availed himself of protections law. the benefits Second, it must be determined the cause of action arose from the defendant’s activities in the allegedly patronized case, state. In bars in this Wilson Michigan, Michigan, intoxicated in and chose became Michigan. urges Wilson to drive while intoxicated find that the accident is unrelated to his Court to Michigan, i.e., that the accident did not activities alleged becoming arise from his acts choosing I while drive intoxicated. finding. decline make such a Whether Wilson’s are the cause of the accident is activities question jury. of fact that must be resolved Corp, 440 Riddle Products v McLouth Steel (5th ed), (1992); Prosser, Torts *19 Green Wilson Opinion by Mallett, C.J. Certainly, the 41, pp alleged 264-265. causal nexus § by is I the not so attenuated that would hold precluded is finding that a causation as matter of person law. intoxicated, When drives while it is might Thus, that an accident foreseeable occur.1 tak- ing plaintiff’s allegations true, the factual as the acci- dent arose from Wilson’s activities in Michigan. must
Third, it be determined if defendant’s activi- ties substantially were so connected with Michigan that the exercise of is I reasonable. note easy this of the is generally test to meet. is, That defendant purposefully has availed him- “ self to state’s law, present this he ‘must a compelling presence case that the some other considerations ” would render Starbrite, unreasonable.’ supra 313, quoting Burger supra King, at at 477. Although primary a court’s concern in assessing the reasonableness of exercising over a defendant is the on the defendant, burden the court will factors, also consider other including
the adjudicating dispute, forum State’s interest in plaintiff’s obtaining interest convenient and effective relief, adequately pro- at least when that interest is not plaintiff’s power forum, tected to choose the judicial system’s obtaining interstate interest the most controversies, efficient resolution of and the shared interest furthering poli- several States social fundamental Volkswagen, supra cies . . . .” at see [World-Wide supra Starbrite, at 313.]
In
case,
Wilson cannot show compelling rea-
why jurisdiction
sons
be
Michigan would
unreason-
fact,
great
Legislature
risk
of accident
is so
has
driving
criminalized
while intoxicated. MCL
MSA 9.2325.
a resident of enough *20 here, I not to socialize could for defendant litigate say him to that it would be unreasonable likely be would here. the alternative forum Also, litigating in Windsor, burden Detroit and the litigating in burden of Windsor. be similar to the jurisdiction support in fact, other factors strong Michigan Michigan. in interest First, has dispute. adjudicating seeks ensure This state people drive while and to do not injured who are ensure that residents compensated. Second, are because the drunk drivers plaintiffs’ Detroit, inter- are residents obtaining in convenient and effective relief is best est Wayne County. litigating Third, in most served controversy of the would occur efficient resolution Wayne County, Wil- where the witnesses of most of likely Finally, alleged son’s intoxication are be. jurisdiction Michigan would advance the shared furthering Michigan funda- interest of Ontario policies. juris- social As do other mental substantive holding dictions, has an interest in those injure through driving responsible who others drunk for their actions. prongs all three of the “minimrim con-
Therefore, jurisdiction test over is met, tacts” are Wilson constitutionally permissible.3 alleged at the Plaintiffs that Wilson resided in Windsor time of deny accident, apparently presently Wilson is Wilson does this. ninety Ontario, living London, approximately from which miles Windsor. majority of in which motor acci We note that in the cases vehicle involving dents defendants have occurred outside a forum nonresident personal jurisdic- state, not have courts have found that forum does Green v Wilson
Opinion by Mallett, C.J. B MICHIGAN’SLONG-ARMSTATUTE Michigan’s long-arm statute, 27A.705, allows this state’s per- courts to exercise sonal over nonresidents in certain situations. any following relationships existence agent
between an individual or his and the state shall con- stitute a sufficient basis of to enable a court of record of this state to exercise limited over the per- individual and to enable the court to render Casad, tion over Actions, the nonresident. Jurisdiction in Civil 7.02[2][e][i],pp usually ¶ 7-34 to 7-36. This is either because the nonresi- nothing purposefully dent has done avail himself of the forum’s laws or because the accident did not arise from the nonresident defendant’s con- *21 tacts with the forum. example, Holsey, App 472; For in Clavenna v 81 Mich (1978), Michigan a resident and a Canadian resident were involved in a boating Although accident on the Canadian side of the Detroit River. Appeals carefully separate Court of in that case did not the constitutional question statutory question, from the did it indicate that the Canadian any Michigan. defendant lacked contacts with Id. at 476-477.The Court of Appeals correctly injured Michigan also noted that the fact that the resi- hospitals provide dent was treated Detroit would not minimum con- jurisdiction. all, tacts sufficient for After the defendant’s contacts with the Shoe, forum plaintiff’s state matter under International not the contacts. Colisto, Supp (WD See Mich, 1981) (a also Zandee v F Michigan resident and a resident of British Columbia were in an involved accident Dakota). in North Likewise, Joseph Co, App 6; in Helzer v F Lamb 429 NW2d (1988), Michigan by a crossing resident was struck a van while street in Michigan, Windsor. The nonresident defendant had contacts with litigation. but these contacts were unrelated to the The driver of the van daily was a Michigan job. Canadian resident who drove into as of his Although Michigan, the defendant had conducted activities in the Court of Appeals noted that no evidence established a causal nexus between the defendant’s Therefore, activities in and the accident. the acci dent did not Michigan. “arise from” the defendant’s contacts with present presents unique The case situation. In contrast to Clavenna Zandee, unequivocally the defendant has availed himself of the bene protections Michigan Helzer, fits and of law. In contrast to his activities in causally resulting are linked to the accident. 455 Opinion Mallett, C.J. representative or his judgments against the individual sonal any following creates arising act which out of an relationships: any the state. business within
(1) transaction of The done, causing to be or conse- (2) doing an act or resulting for tort. occur, in an action quences in the state tangible use, possession real or ownership, or (3) The state. personal property within the situated person, property, risk or (4) Contracting to insure a contracting. at the time of within this state located to be rendered Entering for services (5) into a contract in the state to be furnished or for materials defendant. trustee, director, manager, or other Acting (6) as a of, incorporated or corporation under the laws
officer of a place state. having principal of business within this its subject Maintaining state while (7) a domicile this relationship family the basis of the which is marital or maintenance, property alimony, separate divorce, claim for custody.[4] settlement, support or child child scope Wilson falls within Plaintiffs contend that to be causing or an act doing 2: “The of subsection resulting in the state consequences occur, done, or provision, it interpreting for tort.” In in an action history of statutes helpful to consider in the United States. Supreme expanded
After the United States
jurisdiction over nonresi-
the exercise
5 6virtually every state
in International Shoe4
dents
*22
4
individuals,
only
personal jurisdiction
applies
over
to
§ While
705
provisions
corporations,
comparable
long-arm
MCL
has
statute
27A.725,
600.725;
27A.715, partnerships,
MSA
and
MCL
voluntary associations,
unincorporated
partnership
associations or
600.735; MSA27A.735.
5
Shoe,
only
International
could
exercise
state courts
Before
to
if the nonresident consented
over nonresidents
369
Green
v Wilson
Opinion by Mallett, C.J.
enacted statutes
to
the use of “long-arm”
facilitate.
jurisdiction.
Illinois was the first
pass
long-
state
arm
and this
statute,
attempted
identify
statute
every
appropriately
situation
which
state could
jurisdiction.6
exercise
Soon after the Illinois statute
passed,
Supreme
the Illinois
Court held that the
permitted
statute
state to exercise
permitted by
the full extent
the Due Process Clause.7
Several other states followed Illinois’ lead
passed
and
“laundry-list” style long-arm statutes,8
many
courts of
with
states
these statutes held that
scope of the statute was coextensive with the Due
Process
Thus,
Clause.9
in these states, the courts have
essentially merged the constitutional
statutory
questions.
In 1970,
explicitly
California
merged the
two-steps
jurisdictional
analysis by
passing
stat-
ute that simply says that the
may
jurisdic-
state
assert
in any
tion
situation
allowed
the Due Process
Clause.10
process
physically
or was served
Pennoyer
with
while
within the state.
(5 Otto)
714, 720;
(1871).
95
US
Neff
6
Hay,
(2d
8.33,
ed),
pp 316-320; Casad,
See Scoles &
Conflict of Laws
§
supra,
4.01, pp
n 3
¶
4-3 to 4-4.
7
Miller,
378, 389;
Nelson v
11 Ill 2d
We are called represents attempt on the statute which an expand potential Michigan legislature limited to its full jurisdiction Michigan courts over nonresidents. say prepared is forbidden Unless we are by the to exercise to the Federal Constitution in the statute we should not construe the extent indicated restrictively. statute so opinion Linkfield, the lead in Schneider v
Likewise,
(1973),
repeated
from
proposition
Sifers:
having ‘long-arm’statutes sim
“The courts of those states
confer, specifically,
which
limited
ilar to that of
personal jurisdiction over defendants based on ‘the transac
any
state,’
generally
within the
have
con
tion of
business
extending the state’s
strued their statutes as
by
process.”[11]
permitted
the farthest limits
due
provision,
111B J 504
Other states that
statute: The catch-all
laundry-list-style
originally
long-arm statutes have also added
enacted
provisions
4.2(a);
R
to their statutes. Ala
Civ P
La Rev Stat
catch-all
13.3201; Neb Rev Stat 25-536.
opinion
Justice Swainson and
The lead
in Schneider was written
Kavanagh.
opinion
joined by
An
Justice
Justice Thomas Giles
written
joined by
Kavanagh,
Justice Coleman and Chief Justice T. M.
Williams
explicitly
proposition that the
statute is coex
does not
state the
Clause,
disagreement with
with the Due Process
but does limit its
tensive
Green v Wilson
Opinion by Mallett, C.J.
Since this
pronouncements
Court’s
Sifers
Schneider,
proposition
that Michigan’s long-arm
statute is coextensive with the Due Process Clause
continually
has been
repeated by the Michigan Court
Appeals12
federal
courts
sitting
jurisdiction
Brauchli, Inc,
the lead
App 528, 531;
ples
The
practice.
Wilson mischaracterizes the
tion”);
The Court
Michigan
show if the defendants had conducted business in
but remanded the case to the trial
Mich
to
basis for
long-arm statute stretches to the limits of the Due Process Clause.
NW2d 539
sistent with due
broad
But see
case returned to the Court of
clime’s contacts with
gan
Due Process of the Fourteenth Amendment of the United States Constitu-
been construed as
ing
expand
769;
assume
ally permissible, [Michigan’s long-arm
den,
clude that five
courts have shortened the reach of the
Clause to warrant the exercise of limited
(1997) (“[0]ur long-arm
(1977) (panel containing
Wilson cites Woodward v
12See, e.g.,
give Michigan
Justice
resident was referred
Michigan
of due
Despite the intended to grant statute was gan’s long-arm constitutionally pos- jurisdictional powers broadest Court have that sible, suggested some members of the widely may not be as broad as long-arm statute Brauchli, Inc, 404 Mich Hapner believed. Rolf Justice 160, 168, (1978), n 273 NW2d Levin, stated in a footnote: joined by Justice Fitzgerald, my disagreement with the statement I also note “[i]n previous decisions, has viewed the statute as an this Court attempt by expand potential Legislature to its full non- limited courts over statutes, with . . . The contrast stat- residents.” (Cal rules of other states Code Civ Proc NJ utes or due-process stated, this state “As defendants lacked sufficient ties with courts, making to the of our we therefore them amenable personam grant judgment want affirm the court’s of accelerated (After Remand), App . . . .” Woodward v Keenan (panel containing Wood- (1979) Justice Riley). ward, therefore, constitutional, statutory grounds. It was decided on does not hold that the reach of the statute is shorter than *25 the Due Process Clause. 13See, e.g., Michigan Coalition Radioactive Material Users v Barclays Griepentrog, 1174, 6, v Bank (CA 1992); Chandler 954 F2d 1176 PLC, AG, 1148, 6, Supp (CA 1990); FFOC Co v Invent 882 F 898 F2d 1150 (ED Mich, 1994); Chrysler Corp Corp, 1229, 642, v Fedders 651 643 F2d Corp Corp, (CA 1981); Widger 6, Supp v Chemical 601 F 1236 Chemfil Corp, Mich, Supp 845, (ED 1985); Subacz v Town Tower Motel F 847 567 Inc, (ND Ind, 1983); Speckine Supp 1308, v Stanwick Int’l F 1311 503 Corp, 1055, (WD Mich, 1980); Gavelek v Coscol Petroleum 491 F 1057 Systems Bamgerger’s, 188, Mich, v Supp (ED 1979); Microelectronic 193 Theurer, Transport, 168, Supp (ED Mich, 1977); Central Inc v 434 F 171 Inc, Hatter, Supp 1076, (ED Mich, 1977); Mad Inc v Mad Hat 430 F 1078 Smith, Night Club, Supp 889, (ED Mich, 1975); Hill v ters 399 F 890 337 F Lewis, Supp 981, Mich, 1972); Supp 1365, Hadad v (WD F 982-984 382 Niles, Mich, Supp 146, (WD (ED 1974). But see Horvath v F 148 Mich, 1992) (suggesting long-arm statute has been shortened Lak, applied providers), Inc v Deer medical when out-of-state Enterprises, 1293, 6, 1989) (suggesting (CA Creek F2d that the process long-arm cases). statute not be coextensive with due in tort Green v Wilson Opinion by Mallett, C.J. Rules, provision subject- 4:4-4[d]), does not contain jurisdiction permis- ing non-residents to to the fullest extent sible under the Federal Constitution.
Likewise, Witbeck, supra 666, 3, at 428 Mich n equivocated scope this Court in dicta on the of the long-arm statute. construing Michigan’s statute, some courts have con process
cluded that its reach is coextensive with due tests Supreme laid down the United States Court. . . . This upon conclusion is based a statement made in Sifers Horen, (1971), that the long-arm “represents attempt statute an on the of the expand Michigan legislature potential to its full limited jurisdiction courts over nonresi However, . . . dents.” Court also declared that Sifers holding upon its rested the “exercise to the [of] statute.”[14] extent indicated in the In order to present case, precise resolve the contours of the long-arm statute need not be deter- I note, mined. do however, that statutes that extend jurisdiction of are generally broadly. courts construed 3A Singer, Statutory Sutherland Construction (5th ed), 67.03, pp 67-69. § Instead of determining long-arm statute is coextensive with the Due Process I Clause, would hold that Wilson’s actions are within scope plain of the language of subsection 2 of the
long-arm statute. This subsection allows this state’s courts to exercise long-arm for “[t]he 14Presently, agree that, all members of the Court in at least some situa tions, scope long-arm of the statute exceeds the boundaries of the Starbrite, supra Due Process Clause. In at all members of the Court agreed requirements that the statute were met. Two mem bers, however, argued constitutionally impermissible. *26 Mich 342 455 374 Opinion Mallett, C.J. by consequences
doing causing done, to be or an act or resulting action for tort.” in an occur, in the state Michigan, became intoxi- came to Wilson Michigan, intoxi- to drive while in and chose cated argues Michigan. these acts did not He that cated in only tort, and that the in current action for result act of in an action for tort was the act that resulted crossing tunnel Detroit-Windsor the center line plaintiff’s striking above, however, I car. As noted alleged activi- link Wilson’s whether a causal between question is a and the accident exists ties in summary granted dis- Because the trial court of fact. accept plaintiffs’ position I must case, in this by caused Wilson’s that the accident was claim alleged above, the causal intoxication. As also noted by plaintiffs alleged attenuated that link is not so as a matter of law. I find a lack of causation fact the accident occurred Moreover, the Wilson does not remove defendant outside scope 2 2. Subsection does from the of subsection require Michigan. Rather, that the entire tort occur consequences provides either the act or it Michigan. Wilson case, In this the act must occur began duty of care when he breached his this tort choosing conse- while intoxicated.15 The to drive quences negligent conduct occurred Canada of this damages.16 Because suffered their when the the act 2 will reach a defendant either subsection Michigan’s alleged drunk is a violation of Because Wilson’s conduct pre 9.2325, driving laws, it would create a rebuttable Inc, Service, & sumption negligence. Klanseck v Anderson Sales NW2d 356 plain light Again, favorable to the the facts in the most we must take alleged was caused Wilson’s tiff and assume that the accident intoxication. Green v Wilson *27 Opinion by C.J. Mallett,
or the consequences of the act occur in Michigan, Wilson is scope within the of subsection 2.17
Therefore, because Wilson allegedly became intoxi- cated in Michigan and chose to drive while intoxi- cated he Michigan, committed acts in this state in an action for tort.” Jurisdiction is “resulted] proper thus under the long-arm statute. Because both statutory the constitutional requirements have met, been this state exercise personal limited jurisdiction over Wilson.
n
NAMEAND RETAINCLAUSE
Because I would hold that Michigan courts have
limited
Wilson,
over
complied
have
with the name and retain clause of the
dramshop act. I concur with
opinion
Kelly’s
Justice
insofar as it
discusses the
act.
Gurwin,
59;
Wilson relies on Coleman v
443 Mich
Ford Motor
will
Venue
be
proper
duty,
damages
where the defendant breached his
even
were
suffered elsewhere.
present case,
In the
elements of the cause of action occurred in Michi-
gan, namely,
duty
Wilson breached his
of care when he
chose to
drive while intoxicated.
Opinion by C.J. Mallett, judgment affirm reasons, For these I would Appeals the Court and remand the case to the trial proceedings. court for further
