Body Rustproofing, Inc. v. Michigan Bell Telephone Co.

385 N.W.2d 797, 149 Mich. App. 385
CourtMichigan Court of Appeals
DecidedFebruary 19, 1986
DocketDocket 79098
StatusPublished
Cited by31 cases

This text of 385 N.W.2d 797 (Body Rustproofing, Inc. v. Michigan Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Body Rustproofing, Inc. v. Michigan Bell Telephone Co., 385 N.W.2d 797, 149 Mich. App. 385 (Mich. Ct. App. 1986).

Opinion

Per Curiam.

Plaintiff appeals as of right from a jury verdict of no cause of action.

The Michigan Area Ziebart Dealers Association (MAZDA), a nonprofit corporation of which plaintiff, Body Rustproofing, Inc., was a member, had a contract with defendant, Michigan Bell, for the publication of advertisements in defendant’s suburban Detroit yellow pages directories under the headings of "automobile undercoating and rustproofing” and "rustproofing”. In the year 1980-1981, MAZDA’s advertisements were omitted from the suburban directories because of an error on defendant’s part.

After the omission was discovered, defendant entered into settlement negotiations with Oswald Denys, MAZDA’s representative. Denys ultimately sent a letter dated August 28, 1980, to defendant regarding the terms and conditions of a settlement that MAZDA deemed acceptable. Defendant purportedly accepted these terms in a letter dated June 4, 1981.

At trial, plaintiff produced testimony to the effect that it was not bound by the settlement entered into between MAZDA and defendant. Don Wilson, vice-president and treasurer of plaintiff, Body Rustproofing, Inc., testified that he sent a letter to defendant dated May 20, 1980, concerning the omission and asking defendant to contact plaintiff’s attorneys to negotiate a settlement. As a member of MAZDA, Wilson was aware of MAZDA’s proposed settlement because he was present at a MAZDA meeting on August 27, 1982, when the terms and conditions were discussed. Regardless of MAZDA’s settlement offer, plaintiff chose to *388 commence a lawsuit against defendant in April of 1981.

Deny’s, MAZDA’s representative, testified that at a meeting on August 27,. 1980, MAZDA’s members agreed on the terms and conditions of a settlement to be offered to defendant. One of the conditions agreed upon was that any member of MAZDA who wished to sue defendant individually would be able to do so. In the letter to defendant dated August 28, 1980, Denys advised defendant of the terms and conditions MAZDA deemed acceptable for settlement but did not mention the provision that members were free to sue defendant individually. Denys testified that he did not include notice of this condition because he assumed defendant was already aware that plaintiff intended to sue. Denys stated that he was unsure whether defendant had accepted MAZDA’s offer until he received defendant’s letter dated June 4, 1981. Even then, he was unsure because defendant’s letter did not conform to what he understood the settlement to be.

Defendant sought to prove that it accepted the terms of MAZDA’s proposed settlement and that it had fulfilled all the terms therein. It further sought to prove that MAZDA was plaintiff’s agent and that plaintiff was therefore bound by the settlement and precluded from bringing the instant suit.

Both parties submitted evidence on the issue of damages. Through the testimony of Wilson, evidence was introduced of a decline in plaintiff’s profits for the year 1980-1981, when the ads were omitted, as compared to the previous year, when the ads had been published in the directory. Wilson testified that because plaintiff’s profits were directly related to the number of new cars produced every year, the decline in profits for 1980- *389 1981 must be adjusted downward by 16% to compensate for the decrease in new car registrations for the Detroit area in that year.

Wilson indicated that after the omission, substitute advertising was utilized in the form of radio, newspaper and magazine advertisements. Television advertising was also utilized, but it was not effective because it did not list the location of Ziebart representatives or their telephone numbers. Wilson indicated that when he asked customers in casual conversation what caused them to come to Ziebart, the most common answers were the yellow pages and television. Wilson estimated that as much as 50% of the loss of sales in 1980-1981 was due to the omission in the yellow pages.

Defendant introduced evidence to the effect that plaintiff’s loss of profits in 1980-1981 was due to the decrease in new car sales and the increase in the price of the services which plaintiff was selling. Defendant’s position was that plaintiff had not established any loss attributable to the omission of the ads.

After the close of proofs and final arguments, the jury returned a verdict of no cause of action. Plaintiff filed a motion for new trial based on the giving of an allegedly erroneous jury instruction requested by defendant. This motion was denied.

The sole issue on appeal is whether the giving of defendant’s requested jury instruction was erroneous. The instruction in substance is as follows:

"To the extent that the plaintiff relies upon prior years of sales compared with the subject year’s sales to determine the loss of business or profits, plaintiff must have shown the extent to which the prior year’s sales were derived from classified directory advertising.”

We agree that the giving of the instruction was erroneous in this case.

*390 A trial court must give a properly requested jury instruction when it accurately states the law and is warranted by the evidence. AAMCO Automatic Transmissions, Inc v Motor Trans, Inc, 45 Mich App 539; 207 NW2d 156 (1973); lv den 389 Mich 817 (1973); Young v E W Bliss Co, 130 Mich App 363, 371; 343 NW2d 553 (1983). It is error to submit to a jury an instruction on an issue which is not sustained by the evidence. Jaworski v Great Scott Supermarkets, Inc, 403 Mich 689; 272 NW2d 518 (1978); AAMCO v Motor Trans, Inc, supra.

The disputed instruction in this case went to the issue of damages. The measure of damages for a breach of contract such as the one at bar is that which would place the injured party in as good a position as he would have been in if the promised performance had been rendered. Ambassador Steel Co v Ewald Steel Co, 33 Mich App 495; 190 NW2d 275 (1971); Dierickx v Vulcan Industries, 10 Mich App 67; 158 NW2d 778 (1968); Allen v Michigan Bell Telephone Co, 61 Mich App 62, 67-68; 232 NW2d 302 (1975), lv den 395 Mich 793 (1975). Lost profits, if properly proven, are an appropriate element of damages. Brodsky v Allen Haijosh Industries, Inc, 1 Mich App 591; 137 NW2d 771 (1965); Allen v Michigan Bell, supra. Before lost profits are recoverable, they must be proven with a reasonable degree of certainty as opposed to being based on mere conjecture or speculation. Allen v Michigan Bell, supra, pp 68-69; The Vogue v Shopping Centers, Inc, 58 Mich App 421; 228 NW2d 403 (1975).

However, "[t]he law does not require impossibilities” and does not require a higher degree of certainty than the nature of the case permits. Allison v Chandler, 11 Mich 542, 554 (1863); Muskegon Agency, Inc v General Telephone Co of Michigan, 350 Mich 41, 50-51; 85 NW2d 170 (1957). *391

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Transport Systems LLC v. United Roadlink LLC
Michigan Court of Appeals, 2025
Gerald Millen v. Aaron Birdseye
Michigan Court of Appeals, 2022
Jf Warran LLC v. Mainstay Motors Inc
Michigan Court of Appeals, 2020
Nouri v. Manzella
E.D. Michigan, 2019
Northwoods Manufacturing Inc v. Greg Linsmeyer
Michigan Court of Appeals, 2016
Best Team Ever Inc v. Matthew K Prentice
Michigan Court of Appeals, 2015
Doe v. Henry Ford Health System
308 Mich. App. 592 (Michigan Court of Appeals, 2014)
Consolidated Rail Corp. v. Grand Trunk Western Railroad
963 F. Supp. 2d 722 (E.D. Michigan, 2013)
Health Call of Detroit v. Atrium Home & Health Care Services, Inc
706 N.W.2d 843 (Michigan Court of Appeals, 2005)
In Re MCI Telecommunications Corp. Complaint
612 N.W.2d 826 (Michigan Court of Appeals, 2000)
HotJobs.com, Ltd. v. Digital City, Inc.
53 Va. Cir. 36 (Fairfax County Circuit Court, 2000)
Poirier v. Grand Blanc Township
481 N.W.2d 762 (Michigan Court of Appeals, 1992)
Wengel v. Herfert
473 N.W.2d 741 (Michigan Court of Appeals, 1991)
Domako v. Rowe
457 N.W.2d 107 (Michigan Court of Appeals, 1990)
VanBelkum v. Ford
454 N.W.2d 119 (Michigan Court of Appeals, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
385 N.W.2d 797, 149 Mich. App. 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/body-rustproofing-inc-v-michigan-bell-telephone-co-michctapp-1986.