A & a Asphalt Paving Co. v. Pontiac Speedway, Inc.

110 N.W.2d 601, 363 Mich. 634
CourtMichigan Supreme Court
DecidedSeptember 21, 1961
DocketDocket 61, Calendar 49,140
StatusPublished
Cited by27 cases

This text of 110 N.W.2d 601 (A & a Asphalt Paving Co. v. Pontiac Speedway, Inc.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & a Asphalt Paving Co. v. Pontiac Speedway, Inc., 110 N.W.2d 601, 363 Mich. 634 (Mich. 1961).

Opinion

Kavanagh, J.

Plaintiff commenced an action by attachment against certain land. In its declaration plaintiff declared on 3 counts: First, upon a written contract; second, upon the common counts in assumpsit; and third, in tort for misrepresentation and secretion of corporate assets. Defendants were *636 Pontiac Speedway, Inc., a Michigan corporation, and 2 individuals — William Buettner and John F. Engelhardt, directors of defendant corporation. Buettner was also an officer. Defendants Buettner and Engelhardt answered denying the allegations in the declaration. They admitted fee ownership of the land, but alleged it was acquired subject to a land contract interest. The corporation defaulted.

At pretrial proceedings plaintiff waived the contract count. Trial proceeded under the common counts in assumpsit and the tort count. The court gave judgment against the corporation, by default, and in favor of the defendant directors. Motion for new trial was denied, and plaintiff took a general appeal.

On June 10, 1957, plaintiff entered into a contract to pave a race track located on the land involved. This contract was between the plaintiff as contractor and defendant corporation. The contract form, prepared by plaintiff, indicated the defendant corporation as “owner.” The contract called for a total price of $18,066.50, and the terms were specified in the contract — $1,000 on completion of the work and the balance in I payments to be secured by promissory notes. Defendant Buettner signed this contract as secretary-treasurer of defendant corporation.

Plaintiff performed the work, and, when the defendant corporation was unable to pay, filed this action on July 22, 1958.

Defendant corporation acquired title to the land involved in 1952. On December 8,1955, the land was acquired by one Reithmeier at a sheriff’s sale on foreclosure by advertisement, the deed being given by the Oakland county sheriff, to become operative in 1 year if no redemption was made. Four days after the sheriff’s deed became operative, on December 12, 1956, defendants Buettner and Engelhardt acquired the land by warranty deed from *637 Reithmeier. This deed was recorded December 21, 1956.

At the trial plaintiff swore only 2 witnesses. One was Daniel T. Murphy, Jr., clerk — register of deeds of Oakland county. The deed from Reithmeier to' Bnettner and Engelhard! was admitted in evidence without objection. Plaintiff then offered the deed dated December 8,1952, by which Pontiac Speedway,. Inc., originally acquired the land in question. Defendants objected to its admission in evidence. The court permitted it to be received, commenting: “The court fails to see the materiality of it, but it will allow it.” The sheriff’s deed to Reithmeier was also received over defendants’ objection. The annual report of Pontiac Speedway, Inc., called the 1956 report, was identified and admitted in evidence. The 1957 annual report was received in evidence. This report was due May 15, 1957; however, it was not filed with the corporation and securities commission until October 9, 1957. It was during this period of default that the contract in question was signed and carried out. Mr. Murphy testified that no further annual reports had been filed.

The other witness for plaintiff corporation, its comptroller, Edwin P. Dowd, testified as to the amount owing under the contract. "He stated that Bnettner negotiated and signed the contract in the office of A & A Asphalt Paving Company after the contract was prepared for signatures by plaintiff corporation. A letter from Bnettner, dated February 15, 1958, on Pontiac Speedway’s stationery, addressed to plaintiff, was admitted in evidence. It was signed by Buettner. The letter in substance said, “We have had a bad year. We cannot pay now.”

Mr. Dowd was asked on cross examination whether' or not he had ever in his life talked with defendant Engelhardt. He testified he had not and would not *638 know him if he were in the courtroom. He stated he had tallied with Buettner and that he had not known of the sheriff’s deed or the deed to Buettner and Engelhard! Mr. Dowd also testified that no one at the meeting informed him (Dowd) or the representatives of plaintiff corporation in his presence the property was not owned by Pontiac Speedway. Pie further testified no mention was made at that time that the property was owned by Buettner and Engelhardt.

■ At the conclusion of plaintiff’s proofs, defendants’ attorney moved to strike all of the exhibits except the deed to Engelhardt and Buettner. He then moved to dismiss count 2, there being no testimony that the individual defendants made requests of plaintiff to furnish materials, labor, et cetera, as alleged in that count. Defendant’s attorney also moved to dismiss the third count on the ground the only charge of fraud was that title was secreted in the defendants, no testimony having been introduced that any statement was made by the individual defendants which induced plaintiff to enter into the contract. It is admitted by plaintiff that it did not rely upon the representations in the annual reports when entering into the contract and that it did not know what was in the annual reports until some 2 years after the contract was entered into.

Defendants introduced no testimony.

The burden of proof in this case, as always, is on the plaintiff. The mere making of allegations in a declaration which are denied requires plaintiff to produce testimony to support them.

Justice Carr, in Marshall v. Ullman, 335 Mich 66, 73, 74, writing for the Court, said:

' “This Court has recognized that to establish a cause of action based on fraud certain facts are essential. In Candler v. Heigho, 208 Mich 115, 121, *639 the following statement was quoted with approval from 20 Cyc, p 13:

“t «ipke general rule is that to constitute actionable fraud it must appear: (1) That defendant made a material representation; (2) that it was false; (3) that when he made it he knew that it was false, or made it recklessly, without any knowledge of its truth and as a positive assertion; (4) that he made it with the intention that it should be acted upon by plaintiff; (5) that plaintiff acted in reliance upon it; and (6) that he thereby suffered injury. Each of these facts must be proved with a reasonable degree of certainty, and all of them must be found to exist; the absence of any one of them is fatal to a recovery.” ’
“And it was further said:
“ ‘That these several elements of such a charge must be established has long been the rule in this State. Parker v. Armstrong, 55 Mich 176; Frohlich v. Deacon, 181 Mich 255 (Ann Cas 1916C, 722); Kimble v. Gillard, 177 Mich 250, 256. In the latter case the Court said:
“ ‘ “It is a well-settled rule, familiar and fundamental, that, in order to make misrepresentation actionable, there must be a reliance upon the representation.” ’ ”

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Bluebook (online)
110 N.W.2d 601, 363 Mich. 634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-a-asphalt-paving-co-v-pontiac-speedway-inc-mich-1961.