August v. Collins

251 N.W. 565, 265 Mich. 389, 1933 Mich. LEXIS 692
CourtMichigan Supreme Court
DecidedDecember 19, 1933
DocketDocket No. 105, Calendar No. 37,102.
StatusPublished
Cited by12 cases

This text of 251 N.W. 565 (August v. Collins) 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
August v. Collins, 251 N.W. 565, 265 Mich. 389, 1933 Mich. LEXIS 692 (Mich. 1933).

Opinion

Fead, J.

The action is at law on an appeal bond in a summary proceeding. Defendants had judgment on trial before the court without a jury.

In 1923 plaintiffs sold a piece of real estate on contract to defendant Collins. In about a month Collins assigned his vendee’s interest to Barnard Toy Company. The latter refused to make payments until Collins should be released from liability and plaintiffs produce a copy of the contract under which they held. Collins, under instructions and direction of Louis Cohane, vice-president and secretary of the Barnard Toy Company, represented the company in the negotiations with plaintiffs, which lasted some weeks and culminated in release of Collins and a payment on the contract by the company. Collins, under Cohane’s direction, also handled negotiations regarding a subsequent instalment which the company refused to pay until vendors should furnish a copy of their contract of purchase but which they were unable to procure.

For default in payments, plaintiffs on July 3, 1923, commenced summary proceedings for possession before a circuit court commissioner, against •Barnard Toy Company. The suit was dismissed because no notice, of forfeiture had been served. They Then served, .notice, of forfeiture and, on July 20th, commenced-new summary proceedings against *392 both Collins and the company. The reason for including Collins does not appear.

Process was returned served on both defendants, and Louis Cohane appeared and defended for them. Plaintiffs had judgment of possession against both defendants and appeal was taken in their behalf. The affidavit on appeal was made by Alfred Klunover as their duly authorized agent. Klunover was an attorney in the employ of Cohane, who had instructed him to take the appeal. The names of Barnard Toy Company and Collins were written on the bond in the signature place by Cohane and were followed by Klunover’s name as duly authorized agent, written by himself. Klunover testified that Cohane told him to sign. Cohane said he instructed Klunover to obtain the signature of Collins and the president of the Barnard Toy Company, assumed he had done so, made no inquiry, and did not know the fact until some four years later, when Collins made an affidavit of non-execution of the bond.

On the first trial in circuit court the jury disagreed. On the second trial, April 22, 1924, plaintiffs, by direction of court, had judgment against both defendants. Defendants appealed to this court and the judgment was affirmed in July, 1927, 240 Mich. 23. Collins was a witness for defendants in both trials. Cohane appeared as attorney for both defendants. No stay bond was filed on appeal to this court.

Shortly after the judgment in circuit court Cohane, in behalf of Barnard Toy Company, began a suit in equity to;'restrain plaintiffs from taking possession of the premises; in behalf of defendants/ proffered a belated stay bond, to which Collins’ name was signed by Cohane as his attorney-in-fact; sought mandamus in this court to obtain approval of the bond and restrain possession; and commenced an *393 action for damages against plaintiffs for wrongfully suing out a writ of restitution. In these various proceedings Cohane represented that proper appeal bond had been filed in the summary proceedings.

This action was commenced in September, 1924, to recover on the bond on appeal to circuit court. Collins was served with process, knew the action was on the bond, knew it was claimed he was a party to the summary proceedings and bond and that he was liable on the bond. He appeared by attorney and demanded a hill of particulars. The original declaration, filed November 11, 1924, recited the facts of his liability but did not set up a copy of the bond. The case laid dormant until after the decision in 240 Mich. 23. Amended declaration setting up copy of the bond was filed in January, 1928. Collins pleaded, with notice and affidavit, that the bond was not signed by him or any duly authorized agent. The other defendants gave notice of 13 special defenses but did not deny execution.

February 25, 1928, on plaintiffs’ motion for summary judgment, Collins broadened his claims and made affidavit that the bond had not been signed by him nor with his knowledge or consent, nor was Klunover his agent or authorized to execute the bond, and that he had been released from the contract and had no interest in the property or summary proceedings. The other defendants then filed amended pleas, including non-execution, upon the claim that the bond was not valid as to them because they had executed it on condition that Collins should sign it, and it had been treated, in effect, as in escrow to obtain Collins’ signature. In May, 1931, Collins filed plea of the two-year statute of limitations (3 Comp. Laws 1929, § 13976).

In May, 1931, the cause was dismissed on demurrer to the declaration. The judgment was reversed *394 October 3, 1932, 260 Mich. ¿32. The instant trial began December 19, 1932. Three days before, Collins had made a motion to amend the circuit court judgment in the summary proceedings, mmc pro tunc, by striking his name from it because (a) the court had directed verdict against Barnard Toy Company only, (b) Collins had been released from liability and had no interest in the premises, (c) the evidence showed Collins had had- no possession, (d) Collins was not a party to the circuit court suit and appearance for him by Cohane was not authorized, (e) Collins had not appeared in circuit court nor authorized appearance, affidavit or bond, (f) Collins was not a proper party, and (g) he had not been served with process. In affidavit to the motion, Collins deposed to the above claims and also that, until the present suit was commenced, he had no knowledge that he was named a party to the summary proceedings and did not know of the commissioner’s judgment against him.

The motion was heard with the main case and the judgment ordered amended by declaring Collins not guilty of withholding possession. The amendment was based wholly upon the direction of verdict by the court. Plaintiffs appealed from the order and it was submitted with the main case.

Collins’ defense is non-execution of the bond, non-authorization and non-ratification of it. The other defendants deny liability on the ground that their signatures were to be effective only if Collins should sign. The court found as facts that Collins had not authorized nor ratified the bond nor was he estopped from denying its execution in his behalf.

In finding the facts, it would appear that the court failed to take into account that this is not a mere private lawspit. It involves the integrity of judicial *395 proceedings around which the law casts strong presumptions, necessary to he indulged in order to protect the rights of adverse parties and to give final force to judgments.

The record, upon which plaintiffs had a right to rely, was that Collins was a party to the summary proceedings on personal service of process, he appeared by attorney, appealed to the circuit court, was a witness on both trials, and appealed to the Supreme Court, all without intimation of irregularity.

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Bluebook (online)
251 N.W. 565, 265 Mich. 389, 1933 Mich. LEXIS 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/august-v-collins-mich-1933.