REED v BRETON; KUENNER v BRETON
Docket Nos. 127703, 127704
Supreme Court of Michigan
July 19, 2006
475 Mich 531
Argued March 7, 2006 (Calendar No. 5).
In an opinion by Justice CORRIGAN, joined by Chief Justice TAYLOR and Justices WEAVER, YOUNG, and MARKMAN, the Supreme Court held:
1. The Court of Appeals erred in failing to recognize that the usual standard required to overcome a rebuttable presumption, competent and credible evidence, cannot apply to the separate and novel presumption of
2. The evidence presented by the plaintiffs was insufficient to overcome the presumption of
Court of Appeals judgment reversed; trial court grant of summary disposition for Beach Bar reinstated.
Justice KELLY, dissenting, stated that Michigan law provides that a rebuttable presumption can be rebutted by credible evidence in the absence of policy reasons or legislative language enhancing the standard. The majority errs in adopting a clear and convincing evidence standard to rebut the presumption created in
Justice CAVANAGH did not participate in the decision of these cases.
1. INTOXICATING LIQUORS - DRAMSHOP ACTIONS - PRESUMPTION OF NONLIABILITY REBUTTAL.
The rebuttable presumption of nonliability for all but the last retail licensee that serves alcohol to a visibly intoxicated person created in
2. INTOXICATING LIQUORS - DRAMSHOP ACTIONS - EVIDENCE.
A plaintiff in a dramshop action must present evidence of actual visible intoxication to establish visible intoxication under
Honigman Miller Schwartz and Cohn LLP (by John D. Pirich and Andrea L. Hansen) for the plаintiffs.
Dennis Hurst & Associates (by Dennis Hurst and Michael S. Rosenthal) for Lawrence Reed.
D‘Agostini, Sable & Ruggeri, PLLC (by John M. Ketzler), for James D. Kuenner.
Garan Lucow Miller, P.C. (by Megan K. Cavanagh and Kenneth V. Klaus), for Beach Bar, Inc.
OPINION OF THE COURT
CORRIGAN, J. A vehicle driven by an intoxicated driver collided with an oncoming vehicle carrying two young men on US-127 near Jackson, killing all three individuals. The issues on appeal in this dramshop action involve (1) the presumption of nonliability under the dramshop act (DSA),
We further hold that to establish “visible intoxication” under
I. FACTS AND PROCEDURAL HISTORY
Plaintiffs, the personal representatives of the estates of Adam W. Kuenner and Lance N. Reed,1 filed separate dramshop claims against defendant Beach Bar, Inc., alleging that Curtis J. Breton2 was served alcohol at defendant‘s establishment. Plaintiffs contended that Breton was visibly intoxicated when he was served alcohol there, and his subsequent impaired driving resulted in the deaths of plaintiffs’ decedents.
Breton had spent the day drinking with his friend, John Marsh. Around 7:30 p.m., they consumed two beers at the Beach Bar. Lindsay Mizerik, the server at defendant‘s establishment, had received training in identifying visibly intoxicated persons. She served Breton and did not observe him to exhibit slurred speech,
Breton and Marsh next went to the Eagles Nest3 where they split a рitcher of beer. There, they encountered their supervisor, Summit Township Fire Department Chief Carl Hendges, who did not think either man was intoxicated. Another witness at the Eagles Nest, Richard Potts,4 who knew Breton and who himself owned a convenience store that sold alcoholic beverages, observed that Breton‘s eyes were not bloodshot or glassy and that he did not appear to be intoxicated. Similarly, Marsh did not notice any change in Breton‘s speech, in his ability to walk, or redness in his eyes over the course of the day.
Shortly before 10 p.m., Breton drove Marsh home. At approximately 10:11 p.m., Breton crossed the center line of US-127 at a high rate of speed. His vehicle collided head-on with a vehicle carrying plaintiffs’ two decedents, taking the lives of all three men. An examination after the collision revealed that Breton‘s blood alcohol content was 0.215 grams per 100 milliliters of blood.
Defendant, as the second-to-the-last establishment to serve Breton, sought summary disposition under MCR 2.116(C)(10). Defendant relied on the rebuttable presumption of nonliability available to all but the last serving establishment under § 801(8). Defendant argued that plaintiffs failed to rebut the presumption availablе under § 801(8) because they failed to show that Breton was visibly intoxicated. Plaintiffs re-
Both of those reports estimated the number of drinks that Breton had consumed and recited his age, weight, and the alcohol levels in his blood and urine after the collision. Given this amount of alcohol and Breton‘s physical makeup, the toxicologists opined that he must have been significantly impaired.5 They listed several manifestations of impairment, such as disorientation and lack of coordination, and concluded that he must have exhibited some of these symptoms.
The trial court held that plaintiffs had shown Breton‘s visible intoxication by the experts’ deductions from the data regarding how Breton must have appeared. The trial court concluded, however, that plaintiffs were required to offer more than circumstantial evidence from experts and so failed to rebut the presumption of nonliability with “positive, unequivocal, strong and credible” evidence in light of Krisher v Duff, 331 Mich 699; 50 NW2d 332 (1951). Thus, the court granted summary disposition to defendant.
The Court of Appeals granted each plaintiff‘s application for leave to appeal, consolidated the appeals, reversed the judgment of the trial court, and remanded the cases to the trial court.6 It concluded that the trial court had impermissibly heightened plaintiffs’ burden
II. STANDARD OF REVIEW
We review a grant or denial of summary disposition de novo. Maiden v Rozwood, 461 Mich 109, 118; 597 NW2d 817 (1999). When ruling on a motion brought under MCR 2.116(C)(10), the trial court must consider the affidavits, pleadings, depositions, admissions, and other evidence submitted by the parties in the light most favorable to the party opposing the motion. Id. at 120. “Where the proffered evidence fails to establish a genuine issue regarding any material fact, the moving party is entitled to judgment as a matter of law.” Id. Further, we review a question of statutory interpretation de novo. Nastal v Henderson & Assoc Investigations, Inc, 471 Mich 712, 720; 691 NW2d 1 (2005).
III. ANALYSIS
By creating a remedy against retail liquor licensees for persons injured by intoxicated tortfeasors, the DSA abrogated the general common-law rule that no cause of action existed for the negligent selling or furnishing of alcohol to an able-bodied person. Millross v Plum Hollow Golf Club, 429 Mich 178, 183-184; 413 NW2d 17 (1987). The act provides a remedy for plaintiffs injured
Except as otherwise provided in this section, an individual who suffers damage or who is personally injured by a minor or visibly intoxicated person by reason of the unlawful selling, giving, or furnishing of alcoholic liquor to the minor or visibly intoxicated person, if the unlawful sale is proven to be a proximate cause of the damage, injury, or death, or the spouse, child, parent, or guardian of that individual, shall have a right of action in his or her name against the person who by selling, giving, or furnishing the alcoholic liquor has caused or contributed to the intoxication of the person or who has caused or contributed to the damage, injury, or death. In an action pursuant to this section, the plaintiff shall have the right to recover actual damages in a sum of not less than $50.00 in each case in which the court or jury determines that intoxication was a proximate cause of the damage, injury, or death.
Although a plaintiff must establish the elements of § 801(3) with regard to each defendant in a dramshop claim, the Legislature also created a rebuttable presumption. This presumption affords an additional measure of protection for a retail licensee that was not the last licensee to serve alcohol to a visibly intoxicated person.
There shall be a rebuttable presumption that a retail licensee, other than the retail licensee who last sold, gave, or furnished alcoholic liquor to the minor or the visibly intoxicated person, has not committed any act giving rise to a cause of action under subsection (3).
Thus, all establishments but the last to serve the person have the benefit of a rebuttable presumption that no unlawful service occurred. How to give meaning
Because we are precluded from construing § 801(8) as having no meaning,9 some difference must exist between the proofs required under § 801(8) and those required under § 801(3). Thus, in a lawsuit against a retail licensee that has the benefit of the presumption, plaintiffs must not only make out a prima face case under § 801(3) (among other things, that the drinker was visibly intoxicated), but must also rebut with additional evidence the presumption available to second-to-the-last (and earlier) establishments under § 801(8). Because the Legislature is held to be aware of this state‘s law, we assume, with regard to the presumption, that the Legislature considered the hierarchy of evidentiary standards available in our law. In that hierarchy, the most rigorous standard of proof is “proof beyond a reasonable doubt“; the least rigorous is “proof by a preponderance of the evidence“; and between these is “proof by clear and convincing evidence.” In re Martin, 450 Mich 204, 225-227; 538 NW2d 399 (1995).
conclude that the absence of language specifically abrogating the common law demonstrated that no abrogation oсcurred. Further, the dissent incorrectly asserts that the Legislature “strongly indicate[d]” an intent to incorporate a lower common-law standard to rebut the presumption. Post at 551. The dissent‘s position is inconsistent with the Legislature‘s purposeful differentiation between the last bar to serve a visibly intoxicated patron and a bar that served the patron earlier. Indeed, applying the dissent‘s standard, which would allow for rebutting the presumption by the same prima facie evidence that satisfies § 801(3), the presumption would have no force or effect. We cannot conclude that the legislative enactment of a rebuttable presumption favoring those bars that were not the last bar to serve a visibly intoxicated person “strongly indicates” a legislative intent to encompass a standard of proof that would render that presumption meaningless.
As demonstrated by the dissent‘s interpretation, a lower threshold for rebutting the presumption would require a plaintiff only to show (1) that a retail licensee served alcohol to a patron (2) while the patron was visibly intoxicated. But a plaintiff must already demonstrate these same elements to make out a claim under § 801(3). Further, the Legislature expressly differentiated between the last retail licensee to sell, give, or furnish alcohol to a visibly intoxicated person and the prior retail licensees to do the same. The Lеgislature excepted the former class of licensees from the protection of the § 801(8) presumption but included the latter class of licensees in that protection. Failing to acknow-
We next determine if plaintiffs’ evidence sufficed to overcome the presumption. It did not, because the proofs presented could not even meet the competent and credible standard for rebutting the presumption to show service to a visibly intoxicated person.
This standard of “visible intoxication” focuses on the objective manifestations of intoxication. Miller v Ochampaugh, 191 Mich App 48, 59-60; 477 NW2d 105 (1991).11 While circumstantial evidence may suffice to establish this element, it must be actual evidence of the visible intoxication of the allegedly intoxicated person.12 Other circumstantial evidence, such as blood alcohol levels, time spent drinking, or the condition of other drinkers, cannot, as a predicate for еxpert testimony, alone demonstrate that a person was visibly intoxicated because it does not show what behavior, if any, the
Plaintiffs here presented no evidence of Breton‘s visible intoxication at the time he was served at defendant‘s establishment in response to defendant‘s motion for summary disposition. The record reflects that all four eyewitnesses saw no signs that Breton was visibly intoxicated. Plaintiffs further relied on two expert toxicologists’ expectations that Breton would have exhibited signs of intoxication. But reports discussing Breton‘s physical statistics and alcohol consumption, coupled with predictions of his impairment, offer only speculation about how alcohol consumption affected Breton that night. Expert post hoc analysis may demonstrate that Breton was actually intoxicated but does not establish that others witnessed his visible intoxication.14 Consequently, no basis for a DSA claim against defendant existed. Because plaintiffs failed to establish a genuine issue of material fact that Breton was visibly intoxicated even under § 801(3), the trial court correctly granted summary disposition for defendant.
We conclude that the Court of Appeals erred by reversing the trial court‘s grant of summary disposition to defendant. Plaintiffs failed to rebut the presumption of nonliability available to defendant under
TAYLOR, C.J., and WEAVER, YOUNG, and MARKMAN, JJ., concurred with CORRIGAN, J.
KELLY, J. (dissenting). We granted leave in these cases to address two questions. The first is what is the proper standard to rebut the statutory presumption in a dramshop case?
UNDERLYING FACTS AND PROCEDURAL BACKGROUND
On April 20, 2001, at about 10:00 p.m., Curtis Breton drove his automobile while under the influence of more
Deposition testimony indicated that Breton spent the day of the accident drinking with his friend John Marsh, a fellow firefighter. They started their binge in the morning at the Firehouse Pub, where they eaсh consumed at least two to three beers. They continued it when another firefighter joined them after lunch. They purchased a 12-pack of beer and drank it while they repaired a collapsed boat dock at a family home. Each consumed at least two to three beers during the repair project.
About 4:45 p.m., Breton and Marsh went to the defendant Beach Bar where they split two pitchers of beer. On leaving the bar, they proceeded to Marsh‘s home and drank two beers each. They returned to the Beach Bar about a half an hour later and drank two more beers and split a pizza. At approximately 9:00 p.m. they left the bar. Marsh testified that he did not feel the effects of the alcohol until then. He also testified that, until they left the bar, Breton did not appear visibly intoxicated.
They left the Beach Bar and went to the Eagle‘s Nest bar where they shared yet another pitcher of beer. At 9:50 p.m., Breton drove Marsh home. Concerned,
Before the fatal accident, Breton had rеturned to the Beach Bar where he attempted to get a date with Lindsay Mizerik, the waitress who had served him earlier in the evening. He did not drink during this return visit. Mizerik testified at deposition that she was trained in discerning intoxication and that Breton displayed no signs of intoxication while he was at the Beach Bar before the accident. Several others who saw Breton that evening testified that he did not appear intoxicated.
After the close of discovery, defendant Beach Bar filed a motion for summary disposition based on
In response, plaintiffs presented circumstantial evidence, including the reports of two toxicologists. Reed‘s expert estimated that Breton consumed 24 to 25 beers in the nine-hour period before the accident. He opined that this concentration of alcohol certainly affected Breton‘s central nervous system and certainly resulted in visible signs of intoxication at the time the Beach Bar served Breton.
The trial court granted summary disposition against both plaintiffs. In its opinion, it held that plaintiffs failed to present a genuine issue of material fact regard-
Plaintiffs appealed, and the Court of Appeals reversed in a published opinion per curiam, remanding the cases for trial on the merits. 264 Mich App 363; 691 NW2d 779 (2004). The panel held that plaintiffs needed to present only competent and credible evidence that it is more probable than not that Breton was visibly intoxicated when served at defendant‘s bar. It found that plaintiffs’ expert testimony met this standard.
THE DRAMSHOP ACT
At common law, no cause of action was available against a dramshop for negligently serving alcohol to a visibly intoxicated person who thereafter caused injury to another. Our Legislature changed the common law when it enacted the dramshop act. The act allows someone injured by an intoxicated person to bring suit against, among others, a retail establishment that served the person while he or she was visibly intoxicated. Specifically,
Except as otherwise provided in this section, an individual who suffers damage or who is personally injured by a minor or visibly intoxicated person by reason of the unlawful selling, giving, or furnishing of alcoholic liquor to the minor or visibly intoxicated person, if the unlawful sale is proven to be a proximate cause of the damage, injury, or death, or the spouse, child, parent, or guardian of that
individual, shall have a right of action in his or her name against the person who by selling, giving, or furnishing the alcoholic liquor has caused or contributed to the intoxication of the person or who has caused or contributed to the damage, injury, or death.
The act also provides a presumption of nonliability for all retail licensees that are not the last retailer to furnish alcohol to a visibly intoxiсated person. The presumption is set forth in
There shall be a rebuttable presumption that a retail licensee, other than the retail licensee who last sold, gave, or furnished alcoholic liquor to the minor or the visibly intoxicated person, has not committed any act giving rise to a cause of action under subsection (3).
The first question presented in this case is what is the proper standard to rebut the statutory presumption of nonliability in
Presumptions generally affect the burden of production. MRE 301 explains:
In all civil actions and proceedings not otherwise provided for by statute or by these rules, a presumption imposes on the party against whom it is directed the burden of going forward with evidence to rebut or meet the presumption, but does not shift to such party the burden of
proof in the sense of the risk of nonpersuasion, which remains throughout the trial upon the party on whom it was originally cast.
A presumption is best described as a procedural device. The function of a rebuttable presumption is solely to place the burden of producing evidence on the party opposing the presumption. It allows the party relying on it to avoid a directed verdict. It also aids that party in obtaining a directed verdict if the opposing party fails to introduce evidence rebutting the presumption. Widmayer, supra; Wojciechowski v Gen Motors Corp, 151 Mich App 399; 390 NW2d 727 (1986). A presumption disappears when the burden of production is met. Widmayer, supra at 286. MRE 301 requires that the judge decide whether a presumption has been rebutted. Widmayer, supra at 288.
It is without contest that, normally, to cause a rebuttable presumption to disappear, the challenging party must produce credible evidence to the contrary. Krisher v Duff, 331 Mich 699, 705; 50 NW2d 332 (1951). Krisher states:
It has been well settled in this State that the effect of a rebuttable presumption is to make out a prima facie case at the beginning of a trial. Having established the original prima facie case, the prеsumption then casts the burden of proof on the opposite party. Presumptions cannot be weighed against other credible evidence, for they have no value as evidence unless no other credible evidence whatsoever is introduced in regard to the presumed fact. As a rule they disappear if and when credible evidence is introduced from which the facts may be found. [Id.]2
The majority finds that “clear and convincing” proof should be required to rebut the presumption in
The interpretation offered by the majority contradicts well-established rules of statutory construction because it adds words to the statute that the Legislature did not put there. The words that the Court adds are, “The presumption may be overcome only by a showing of clear and convincing evidence to the contrary.”
In interpreting statutory language, courts must determine and give effect to the intent of the Legislature. In re MCI Telecom Complaint, 460 Mich 396, 411; 596 NW2d 164 (1999). When ascertaining legislative intent, we look first at the words of the statute itself. House Speaker v State Administrative Bd, 441 Mich 547; 495 NW2d 539 (1993). There is no standard in
Hence, the majority creates a new “clear and convincing evidence” standard out of thin air in complete disregard of the text of
table presumption.” Krisher, supra at 707. The policy considerations present in Krisher do not apply in the instant case.
rules of statutory interpretation. It offers no policy considerations to justify this action, as the Court did in Krisher.Interestingly, the Legislature has shown that it is quite capable of providing a heightened burden for rebutting a presumption when it chooses to do so. For example, it inserted into
The lack of the same or a similar addition to
I acknowledge that, in reviewing a statute‘s language, “every word should be given meaning, and we should avoid a construction that would render any part of the statute surplusage or nugatory.” Wickens v Oakwood Healthcare Sys, 465 Mich 53, 60; 631 NW2d 686 (2001), citing Altman v Meridian Twp, 439 Mich 623; 487 NW2d 155 (1992). In these cases, I interpret the rebuttable presumption of
Even if the standard were “clear and convincing,” the presumption would have disappeared in these cases. However, I am convinced that the correct standard is “credible evidence,” only. There is no valid legal justification to change the common-law standard or to manufacture a special enhanced standard for this statute. The Legislature chose not to do so, and no public policy reasons have been advanced to justify it. My interpretation renders the presumption neither surplusage nor nugatory.3 And, unlike the interpretation of the majority, it adds no new and higher standard without justification and contrary to the intent of the Legislature.
PROOF OF ACTUAL VISUAL INTOXICATION
The second issue is whether the Legislature intended to restrict the type of circumstantial evidence that qualifies as proof that the drunk was visibly intoxicated when served by the dramshop. The statute refers to the tortfeasor repeatedly as a “visibly intoxicated person.”
The act does not define “visibly intoxicated.” It is a well-settled rule of statutory construction in this state
This definition indicates that the Legislature did not intend that a plaintiff is limited to producing a witness who actually saw signs that the intoxicated person exhibited intoxication. The statute does not require “actually manifested signs of intoxication.” Rather, a plaintiff may show that indicators of the intoxication in the person were capable of being seen, that someone viewing the intoxicated person could have seen the indicators.4 Had the Legislature intended to require at least some evidence that a witness actually saw signs that the person was intoxicated, it could have written:
There shall be a rebuttable presumption that a retail licensee, other than the retail licensee who last sold, gave, or furnished alcoholic liquor to the minor or person seen by an eyewitness to be visibly intoxicated, has not committed any act giving rise to a cause of action under subsection (3).
My rationale is supported not only by the actual language of the statute, but by case law as well. In Dines v Henning,5 this Court reversed the Court of Appeals judgment and adopted Judge MICHAEL J. KELLY‘S dissenting opinion that stated, “Eyewitness testimony of
Judge KELLY based his decision on Heyler v Dixon, 160 Mich App 130; 408 NW2d 121 (1987). In that case, the Court of Appeals pointed out that the dramshop act was amended in 1972 to substitute “visibly intoxicated” for “intoxicated.” Id. at 145. The Court noted that case law existing at the time required that the allegеdly intoxicated person must be “visibly” intoxicated at the time of the sale. Id., citing Archer v Burton, 91 Mich App 57; 282 NW2d 833 (1979); McKnight v Carter, 144 Mich App 623; 376 NW2d 170 (1985).
The Heyler Court then noted that the existing standard jury instructions defined a person as visibly intoxicated “when his or her intoxication would be apparent to an ordinary observer.” SJI2d 75.02. The Court noted that the Court of Appeals has repeatedly held that claims brought under the dramshop act may be proven by circumstantial evidence and that, “if the combination of the circumstantial evidence and the permissible inferences drawn therefrom are sufficient to establish a prima facie case, a directed verdict is improper.” Heyler, supra at 146. See Villa v Golich, 42 Mich App 86, 88; 201 NW2d 349 (1972); Durbin v K-K-M Corp, 54 Mich App 38, 56-57; 220 NW2d 110 (1974). The Court concluded by finding in that case that sufficient circum
In making its determination in Heyler, the Court of Appeals stated that a jury could conclude that someone was a “visibly intoxicated person” from evidence showing that (1) the person admitted that he drank one or two beers an hour, (2) he stayed at the bar either 14 hours or nine hours, (3) he consumed somewhere between nine and 28 beers during his stay at the bar, (4) the accident occurred within minutes after the pеrson left the bar, and (5) there was testimony from officers arriving at the scene of the accident that the person ” ‘smelled highly’ ” of alcohol. Heyler, supra at 147. In this case, there was similar testimony about how long and approximately how much Breton drank. There was similar evidence that Breton caused the accident and that he was highly intoxicated at the time.
The majority misreads Dines to conclude that expert testimony predicated on circumstantial evidence is insufficient to establish that a person was visibly intoxicated. Dines specifically adopted the long line of Court of Appeals cases holding that circumstantial evidence, standing alone, is sufficient to establish and support a dramshop claim. The majority opinion does not rely on Dines as it asserts; in fact, it limits the holding by restricting the circumstantial evidence that is admissible to that which was actually seen by a witness.
In these cases, the circumstantial evidence on which the expert opinions were based sufficed by itself to rebut the statutory presumption and establish plaintiffs’ prima facie case. In Heyler, circumstantial evidence was found to be sufficient even though, unlike in these cases, it was not supported by strong expert testimony.
The majority has erroneously changed the meaning this Court has given for the past 15 years to “visibly intoxicated person” in
CONCLUSION
I find that the presumption of
What has happened here is that the majority has taken upon itself to be helpful tо the Legislature. The Legislature wrote a rebuttable presumption into the dramshop act, but failed to include a standard for rebuttal higher than the normal standard. The majority has reasoned that the Legislature must have intended a higher standard, so it has furnished one. However, especially given that our Legislature has shown itself
The majority has also increased the burden on an injured party to prove that a dramshop served intoxicants to a drunken patron. It has accomplished this by rewriting the statute to require actual signs of the intoxication, whereas, for decades, other circumstantial evidence has sufficed. The statute, by its terms, does not require a showing that someone testify to having actually seen signs that a drunk was intoxicated before the drunk was served at a bar.
It will now be more difficult for persons injured by a drunken driver to recover from a bar that served the drunk while that person was visibly intoxicated. The majority points to nothing in the dramshop act that suggests that it was the Legislature‘s intent to hinder, rather than facilitate, recovery from those serving drunks who injure others. This drastic change in the law defies both public policy and common sense.
Therefore I would affirm the decision of the Court of Appeals and remand the cases for trial.
CAVANAGH, J., did not participate in the decision of these cases.
Docket No. 127715. Argued March 8, 2006 (Calendar No. 7). Decided July 19, 2006. Rehearing denied 477 Mich 1201.
Ann Coblentz and others brought an action in the Oakland Circuit Court against the city of Novi, seeking to compel the production of documents not provided in response to plaintiffs’ requests under the Freedom of Information Act (FOIA),
The Court of Appeals properly affirmed the grant of summary disposition to the defendant with regard to the request for site plans and global readings. That part of the Court‘s judgment must be affirmed. The Court of Appeals erred in affirming the grant of summary disposition to the defendant with regard to the request for all exhibits to the settlement agreement, including the intentionally deleted exhibits, and the request for disclosure of the side agreements. Those parts of the Court of Appeals judgment must be reversed. The Court of Appeals also erred in affirming the fees charged for the work of the defendant‘s attorney. That part of the judgment must be reversed. The matter must be remanded to the trial court for the entry of a judgment compelling disclosure as directed by the Supreme Court.
- When the defendant dеnied the existence of the site plans and global readings and provided documentation supporting its position, the burden shifted to the plaintiffs to produce documentation to counter the defendant‘s documentation. The plaintiffs failed to offer the needed documentary evidence.
- The plaintiffs cannot complain that discovery was ended prematurely because they did not counter the defendant‘s documentary evidence pursuant to the requirements of
MCR 2.116(G)(4) andMCR 2.116(H) . - The request by the plaintiffs for all exhibits to the agreement, including the intentionally deleted exhibits, sufficiently described the exhibits to enable the defendant to identify them. Those exhibits must be disclosed because the defendant failed to show an exemption from disclosure applicable to them.
- The defendant failed to carry the burden of proving that the exemption in
MCL 15.243(1)(f) for trade secrets or commercial or financial information voluntarily provided to an agency for use in developing governmental policy applied to the side letters. The statute requires a public body to record a description of the material claimed to be exempt in a central location within а reasonable time of the receipt of the material. Defendant offered no legally relevant reason for the delay in this case. The fact that defendant negotiated with the limited partnership after submission was not relevant and could not justify any delay. The trial court abused its discretion in finding that defendant recorded a description of the side letters within a reasonable time after they were submitted to defendant. The side letters were not exempt from disclosure.
The attorney involved was not the defendant‘s employee, but was an independent contractor. The FOIA allows a public body to charge a requesting party only for its employee‘s labor.
Justice CAVANAGH, concurring, agreed with all parts of the majority opinion except for parts II and VI. With regard to part VI, he concurred only with its result.
Justice CORRIGAN, concurring in part and dissenting in part, concurred with the majority in all respects except for its holding that the Court of Appeals erred in affirming summary disposition for the defendant with regard to disclosure of the side agreements. The trial court properly ruled that those agreements were exempt from disclosure under
Affirmed in part, reversed in part, and remanded.
- RECORDS — FREEDOM OF INFORMATION ACT.
The Freedom of Information Act requires a person who requests the disclosure of a public record to describe the public record sufficiently to enable the public body to identify the public record; a record must be disclosed where the request is sufficient to allow the public body to find the public record that is not clearly exempt from disclosure (
MCL 15.233[1] ). - RECORDS — FREEDOM OF INFORMATION ACT — COSTS OF PRODUCING RECORDS.
The Freedom of Information Act provides that a public body may charge a person who requests a public record the cost of producing the public record based on the rate of the lowest paid public body employee capable of retrieving the public record; the act allows the public body to charge for its employee‘s actions, but not for the actions of an independent contractor (
MCL 15.243[1] ,[3] ).
Law Offices of Bailey & Rossi, P.C. (by Richard D. Wilson and Gary A. Rossi), for the plaintiffs.
KELLY, J. This case asks us to determine if the trial court appropriately found requested documents exempt from disclosure under the Freedom of Information Act (FOIA),
This case revolves around an underlying settlement agreement between defendant and a third party. Plaintiffs filed a FOIA request for documents associated with the agreement. Requested were “site plans” and “global readings” on real property, all exhibits to the agreement, including certain exhibits listed as intentionally deleted, and side agreements or letters related to the agreement.
The Court of Appeals affirmed the trial court‘s decision that the requested documents were exempt from disclosure. Coblentz v Novi, 264 Mich App 450; 691 NW2d 22 (2004). We affirm in part and reverse in part that deсision. We conclude that the Court of Appeals appropriately affirmed the grant of summary disposition to defendant on plaintiffs’ request for “site plans” and “global readings.” But the Court of Appeals erred in affirming summary disposition regarding the request for all exhibits to the underlying settlement agreement, including the intentionally deleted exhibits. These exhibits were not exempt from disclosure and were sufficiently identified in the FOIA request.
The Court of Appeals also erred in affirming summary disposition for defendant on the requested “side agreements” to the settlement agreement. These items
I. RELEVANT FACTUAL AND PROCEDURAL HISTORY
In a separate civil action against defendant, Sandstone Associates Limited Partnership-A (Sandstone) obtained a judgment that totaled tens of millions of dollars, including costs, interest, and attorney fees. Sandstone and defendant then entered into an agreement in which defendаnt waived its appellate rights and Sandstone received real property rather than the money judgment. The major component of the agreement called for defendant to turn over 75 “net usable” acres to Sandstone for development.
The property had previously been set aside as parkland. It is adjacent to property owned by plaintiffs. Some of the property carried deed restrictions, including possible reciprocal negative easements.1 Plaintiffs’ properties contained the same deed restrictions. The
Plaintiffs retained counsel who filed a FOIA request with defendant, seeking:
- All exhibits, including but not limited to exhibits G, T, U, V, W, AA, BB, GG, MM, NN, PP, for the Agreement for Entry of Consent Judgment dated June 25, 2002 between Sandstone and the City of Novi;
- Any and all site plans for Sandstone regarding the 75 dedicated acres; and ....
Defendant‘s attorney responded to these requеsts by writing:
- Exhibits G, T, U, V, W, AA, BB, GG, MM, NN, PP: I have advised you by phone and letter that there are no such exhibits. The reference in the index, indicating that they were intentionally deleted, is merely to clarify for the reader that such exhibits have not been lost or detached from the Agreement. These exhibits do not exist, and never existed.
- Site Plan: I have also advised you by phone and letter that a site plan or concept plan for the 75 acres does not exist. It has never existed. I do not know how [to] provide any further explanation.
Plaintiffs then informally requested all side agreements to the Sandstone settlement agreement and the “global readings.” Defendant‘s attorney responded that he did not know what “global” meant. With regard to the side agreements, he stated that he assumed that
Notes
There must have been a common owner of the related parcels of land, and in his various grants of the lots he must have included some restriction, either affirmative or negative, for the benefit of the land retained, evidencing a scheme or intent that the entire tract should be similarly treated. Once the plan is effectively put into operation, the burden he has placed upon the land conveyed is by operation of law reciprocally placed upon the land retained. In this way those who have purchased in reliance upon this particular restriction will be assured that the plan will be completely achieved. [Lanski v Montealegre, 361 Mich 44, 47; 104 NW2d 772 (1960) (emphasis in original).]
In all civil actions and proceedings not otherwise provided for by statute or by these rules, a presumption imposes on the party against whom it is directed the burden of going forward with evidence to rebut or meet the presumption, but does not shift to such party the burden of proof in the sense of the risk of nonpersuasion, which remains throughout the trial upon the party on whom it was originally cast.