WARDA v CITY COUNCIL OF THE CITY OF FLUSHING
Docket No. 125561
Supreme Court of Michigan
Decided May 18, 2005
472 MICH 326
Docket No. 125561. Decided May 18, 2005. On application by the defendants for leave to appeal, the Supreme Court, after hearing oral argument on whether the application should be granted and in lieu of granting leave, reversed the judgment of the Court of Appeals and remanded the matter to the circuit court for the entry of an order dismissing the plaintiff‘s claims.
Stephen W. Warda, a former police officer for the city of Flushing, brought an action in the Genesee Circuit Court against the city council of the city of Flushing and the city of Flushing, seeking reimbursement of attorney fees the plaintiff incurred in successfully defending criminal charges resulting from the plaintiff‘s inspection of salvage motor vehicles. The city council had denied the plaintiff‘s request in resolutions entered by the council. After a bench trial, the court, James T. Corden, J., entered a judgment in favor of the plaintiff. The Court of Appeals, O‘CONNELL, P.J., and WILDER, J. (JANSEN, J., dissenting), affirmed on the bases that the trial court properly found that the plaintiff acted within the scope of his employment when he performed the vehicle inspections and that the defendants abused their discretion in denying the request for reimbursement. Unpublished opinion per curiam, issued December 23, 2003 (Docket No. 241188). The defendants sought leave to appeal in the Supreme Court. The Supreme Court granted oral argument on whether to grant the defendants’ application for leave to appeal and directed the parties to brief the issue whether the city council‘s decision is subject to judicial review. 471 Mich 907 (2004).
In an opinion by Justice MARKMAN, joined by Chief Justice TAYLOR, and Justices CORRIGAN and YOUNG, the Supreme Court held:
The city council constitutes a governmental agency for purposes of reimbursement of attorney fees under
Reversed and remanded to the circuit court for entry of an order dismissing the plaintiff‘s claims.
Justice WEAVER, joined by Justices CAVANAGH and KELLY, dissenting, stated that leave to appeal should be granted in order to allow the Court, following full oral argument and full briefing, to decide the question raised by the Court regarding judicial power. The parties also should be directed to address the question whether the plaintiff has a legal remedy under
- MUNICIPAL CORPORATIONS — ATTORNEY FEES.
The decision of a municipality whether to pay an officer‘s attorney fees under
MCL 691.1408(2) is within the discretion of the municipality; the statute does not place limits on the exercise of such discretion nor does it provide standards by which a court may review the exercise of that discretion. - MUNICIPAL CORPORATIONS — DISCRETIONARY DECISIONS — APPEAL.
Where a statute empowers a governmental agency to undertake a discretionary decision, and neither places limits on the exercise of that discretion nor provides standards by which a court can review the exercise of that discretion, the decision is not subject to judicial review absent an allegation that the exercise of that discretion was unconstitutional.
Wascha & Waun, P.C. (by Thomas W. Waun), for the plaintiff.
Henneke, McKone, Fraim & Dawes, P.C. (by Edward G. Henneke), for the defendants.
MARKMAN, J. The question presented in this case is whether, pursuant to
I. FACTS AND PROCEDURAL HISTORY
Plaintiff was a Flushing police officer for approximately twenty years. Early in his career, at the suggestion of the chief of police, plaintiff obtained special training from the Secretary of State that certified him to inspect “salvage vehicles.”1 Plaintiff‘s employer paid for the training, and plaintiff received his regular pay while he attended the salvage vehicle inspection course.
At all times relevant to this case, an inspection fee of $25 was established by statute.
On March 2, 1992, plaintiff completed two inspection reports related to salvage vehicle inspections he conducted in Macomb County.2 In these reports, plaintiff verified that certain repairs had been made when in fact they had not, and declared that the vehicles were roadworthy when in fact they were not. Following a criminal investigation, plaintiff was charged in April 1994 with false certification, a felony.
Subsequently, plaintiff requested payment of $205,000 from defendant for attorney fees incurred in defending the criminal charges. Plaintiff cited
Plaintiff filed the instant complaint for declaratory relief and a motion for summary disposition, contend
In a divided opinion, the Court of Appeals affirmed. Unpublished opinion per curiam, issued December 23, 2003 (Docket No. 241188). The majority concluded that the circuit court had not clearly erred in finding that plaintiff acted within the scope of his employment when he inspected salvage vehicles, or in finding that the city abused its discretion when it denied plaintiff reimbursement of his attorney fees. The dissenting judge would have reversed, concluding that the circuit court had clearly erred in finding that plaintiff‘s work as a salvage vehicle inspector fell within the scope of his employment as a Flushing police officer.
We granted oral argument on whether to grant defendants’ application for leave to appeal pursuant to
II. STANDARD OF REVIEW
This dispute requires us to determine whether the judiciary has the authority pursuant to the Constitution and
III. ANALYSIS
The question presented here concerns the extent to which the decision of a municipality to deny reimbursement for attorney fees under
When a criminal action is commenced against an officer or employee of a governmental agency based upon the conduct of the officer or employee in the course of employment, if the employee or officer had a reasonable basis for believing that he or she was acting within the scope of his or her authority at the time of the alleged conduct, the governmental agency may pay for, engage, or furnish the services of an attorney to advise the officer or employee as to the action, and to appear for and represent the officer or employee in the action. An officer or employee who has incurred legal expenses after December 31, 1975 for conduct prescribed in this subsection may obtain reimbursement for those expenses under this subsection. [Emphasis added.]
For purposes of the statute, “governmental agency” is defined as “the state or a political subdivision.”
“Political subdivision” means a municipal corporation, county, county road commission, school district, community college district, port district, metropolitan district, or transportation authority or a combination of 2 or more of these when acting jointly; a district or authority authorized
by law or formed by 1 or more political subdivisions; or an agency, department, court, board, or council of a political subdivision. [ MCL 691.1401(b) (emphasis added).]
Thus, the Flushing city council constitutes a “governmental agency” for purposes of the governmental immunity act.
The use of the word “may” in § 8 makes clear that the decision to pay an officer‘s attorney fees is a matter left to the discretion of the municipality. Further, we note that the statute does not limit or qualify the word “may” (with, for instance, a requirement of reasonableness) or provide any other standards by which that discretion is to be exercised. As such, the Flushing city council had full discretion under
The question, then, is the nature of this Court‘s power to review a purely discretionary action taken by a governmental agency. In Veldman v Grand Rapids, 275 Mich 100; 265 NW 790 (1936), we were faced with the question whether the plaintiffs, a group of Grand Rapids taxpayers, could sue to prevent the city‘s purchase of a power plant, where such purchase had been approved by that city‘s legislative body, the city commission. This Court observed:
If the city commission had legal authority to do what it did do, that ends the matter. The question of whether the commissioners acted wisely or unwisely is not for the consideration or determination of this court.
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If the charter of the city of Grand Rapids is constitutional, and of this there seems to be no question, and the State has thus conferred upon the city commission the power which it exercised and left the exercise of it to the judgment and discretion of the commissioners, then their action is conclusive. [Id. at 112-113.]
As a result, we see no need to take sides in the matter addressed and resolved, both by the trial court and the Court of Appeals, regarding whether plaintiff‘s work as a salvage vehicle inspector fell within the scope of his employment as a Flushing police officer.
The following passage from People v Gardner, 143 Mich 104, 106; 106 NW 541 (1906), succinctly summa
“The general rule is well established that courts will not inquire into the motives of legislators where they possess the power to do the act, and it has been exercised as prescribed by the organic law. In such case the doctrine is that the legislators are responsible alone to the people who elect them. And this principle is generally applied to purely legislative acts of municipal corporations.” [Citation omitted.]
So long as the power to govern the city and control its affairs is vested by the people of Flushing in an elected city council, neither this Court nor any other may assume to direct the local policy of the city of Flushing. See Veldman, supra at 111; Huse v East China Twp Bd, 330 Mich 465, 470-471; 47 NW2d 696 (1951). Here, the city council concluded that the reimbursement of plaintiff‘s attorney fees would not serve the “public purposes” of the city of Flushing, and chose not to reimburse such fees. While such a decision might be one with which reasonable people would disagree, its wisdom is ultimately to be judged by the voters of the city of Flushing, and not by the judiciary of this state.
Moreover, in enacting
However, while we conclude that there is no statutory basis for our review of the city council‘s decision, that conclusion does not end the inquiry. Even a discretionary action of a governmental agency must still comport with the constitutions of this state and the United States. As we have noted elsewhere:
[T]he power of judicial review does not extend only to invalidating unconstitutional statutes or other legislative enactments, but also to declaring other governmental action invalid if it violates the state or federal constitution. [Sharp v City of Lansing, 464 Mich 792, 810-811; 629 NW2d 873 (2001).]
The decisions of a governmental agency, for example, to award attorney fees on the basis of race, religion, or nationality might implicate the equal protection guarantees of the federal and state constitutions, while decisions influenced by corruption might implicate the due process guarantees of these same constitutions. See Huse, supra at 470-471.
In reaching a contrary conclusion, the Court of Appeals relied on Exeter Twp Clerk v Exeter Twp Bd, 108 Mich App 262; 310 NW2d 357 (1981), and Bowens v City of Pontiac, 165 Mich App 416; 419 NW2d 24 (1988). In Exeter, a township clerk hired private counsel in connection with a primary election after the township attorney declined to advise her on the legality of certain nominating petitions. When the township board refused to reimburse the clerk for her attorney fees and costs, she filed a mandamus action to obtain reimbursement under
[A] municipality, such as a township, in general possesses the discretion to determine whether (1) counsel for the township shall represent a township official sued in his or her capacity, (2) to approve retention of private counsel paid for by the township, (3) to indemnify the official for expenses incurred in defending the action, including attorneys fees, or (4) the township board may decline to provide legal representation or indemnification for such official. [Id. at 269.]
However, in spite of this recognition, the Exeter panel disregarded the latitude statutorily afforded to the municipality. The panel overlooked the fact that
The Exeter panel then proceeded to create a “pressing necessity” exception from statutory language,
Where it is factually demonstrated that pressing necessity or emergency conditions warrant a municipal official in employing legal counsel in a matter of official, public concern and legal services are provided without consent of the governing body, the courts may hold a municipal corporation liable for such legal services. [Exeter, supra at 269-270.]
We believe that the Court of Appeals panels in Exeter and Bowens misapprehended the limited role afforded to the judiciary in cases involving discretionary decisions of a governmental agency. To the extent that
The Court of Appeals, relying on Exeter and Bowens, erred in concluding that decisions made pursuant to
Because the Court of Appeals erred in reviewing the discretionary decisions involved in Exeter and Bowens, it follows that the exceptions to
IV. CONCLUSION
Because
The decision of the Court of Appeals is reversed. This matter is remanded to the circuit court for entry of an order dismissing plaintiff‘s claims.
TAYLOR, C.J., and CORRIGAN and YOUNG, JJ., concurred with MARKMAN, J.
WEAVER, J. (dissenting). I would grant leave to appeal in this case rather than issue a final opinion at this time. This case is currently before the Court on an application for leave to appeal. The Court ordered oral arguments to help it decide if it should grant leave, deny leave, or take some peremptory action.
In its opinion, the majority addresses the broad question of judicial power, an issue raised by the Court, not the parties. Such an important and far-reaching question should not be decided without granting leave to appeal and receiving the benefit of full oral argument and full briefing, including inviting amicus briefing.
In granting leave to appeal, I would also ask the parties to address whether the plaintiff has a legal remedy under
(2) When a criminal action is commenced against an officer or employee of a governmental agency based upon the conduct of the officer or employee in the course of employment, if the employee or officer had a reasonable basis for believing that he or she was acting within the scope of his or her authority at the time of the alleged conduct, the governmental agency may pay for, engage, or furnish the services of an attorney to advise the officer or employee as to the action, and to appear for and represent the officer or employee in the action. An officer or employee who has incurred legal expenses after December 31, 1975 for conduct prescribed in this subsection may obtain reimbursement for those expenses under this subsection.
(3) This section shall not impose any liability on a governmental agency. [Emphasis added.]
Thus, the question would be whether the Legislature has specifically provided that a suit seeking to impose on a governmental agency liability based on
CAVANAGH and KELLY, JJ., concurred with WEAVER, J.
Notes
For instance,
The law must leave the final decision upon every claim and every controversy somewhere, and when that decision has been made, it must be accepted as correct. The presumption is just as conclusive in favor of executive action as in favor of judicial. The party applying for action, which, under the constitution and laws, depends on the executive discretion, or is to be determined by the executive judgment, if he fails to obtain it, has sought the proper remedy and must submit to the decision. [Id. at 330-331.]See also Midland Co Bd of Supervisors v Auditor General, 27 Mich 165, 166 (1873) (“the exercise of an official discretion belonging to an executive department of the State government, is not subject to review judicially, and cannot, therefore, be examined upon certiorari from this Court“).
Where the executive carries out a function that is part of the inherent executive power and for which there are no constitutional or other standards, the judiciary is equally without power to review executive action. See, e.g., United States v Curtiss-Wright Export Corp, 299 US 304, 320; 57 S Ct 216; 81 L Ed 255 (1936) (noting that the President‘s inherent power to handle international relations “does not require as a basis for its exercise an act of Congress, but... must be exercised in subordination to the applicable provisions of the Constitution“); Cunningham v Neagle, 135 US 1; 10 S Ct 658; 34 L Ed 55 (1890).
Where an executive branch action constitutes action taken pursuant to a legislative grant of authority and in accordance with standards set forth by the Legislature—a realm of action that encompasses virtually all administrative agency actions—it would normally be subject to judicial review. In such cases, there would be a legislatively set standard that a court of law would apply in reviewing such an action. See Dep‘t of Natural Resources v Seaman, 396 Mich 299, 308-309; 240 NW2d 206 (1976).
