Dale v. Whiteman

202 N.W.2d 797, 388 Mich. 698, 1972 Mich. LEXIS 145
CourtMichigan Supreme Court
DecidedDecember 21, 1972
Docket5 October Term 1972, Docket No. 53,844
StatusPublished
Cited by108 cases

This text of 202 N.W.2d 797 (Dale v. Whiteman) 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
Dale v. Whiteman, 202 N.W.2d 797, 388 Mich. 698, 1972 Mich. LEXIS 145 (Mich. 1972).

Opinions

Adams, J.

I. The Facts, Proceedings and Question

The statement of facts and proceedings in this case is set forth by Judge Quinn in his opinion in the Court of Appeals as follows:

[701]*701"December 4, 1967, Whiteman took his automobile to a car wash owned by Goldfarb and turned it over to an attendant for washing. Whiteman had used this car wash before. The vehicle was pulled through the automatic car wash line by a chain; it was then driven to the drying area by Fox, an employee of Goldfarb. Plaintiff, an employee of Goldfarb, was drying another automobile. Fox drove Whiteman’s car into plaintiff causing severe injuries.
"Plaintiff filed his complaint against Whiteman under the owner’s liability statute, MCLA 257.401 (Stat Ann 1968 Rev §9.2101). Whiteman filed a third-party complaint against Goldfarb claiming indemnification and Goldfarb filed a cross-complaint seeking reimbursement for workmen’s compensation benefits he had paid plaintiff.
"Plaintiff moved for summary judgment (GCR 1963, 117.2) on the issue of Whiteman’s liability. Whiteman moved for summary judgment of indemnification against Goldfarb and for summary judgment of no cause for action against plaintiff. Goldfarb moved for summary judgment of no cause for action as to White-man and summary judgment for reimbursement for workmen’s compensation benefits paid plaintiff.
"On the basis of the pleadings, depositions, undisputed facts and the briefs of the parties, the trial court granted plaintiff’s motion and Whiteman’s motion for indemnification. All other motions were denied. A jury awarded plaintiff $100,000 damages against Whiteman; granted Whiteman $100,000 indemnification against Goldfarb, and gave a verdict of no cause for action against Goldfarb on his cross-claim against Whiteman. Judgments entered accordingly, and Whiteman and Goldfarb appeal.” 36 Mich App 533, 534-535 (1971).

The Court of Appeals held that Goldfarb breached an independent duty he owed to White-man to operate the latter’s vehicle through the car wash without negligence. It reduced plaintiffs judgment against Whiteman by the amount of workmen’s compensation benefits paid to plaintiff [702]*702by Goldfarb and reduced Whiteman’s judgment of indemnification against Goldfarb in a similar amount.

In Husted v Consumers Power Co, 376 Mich 41 (1965), in the per curiam opinion, which dealt with joinder of an injured employee’s employer as a third-party defendant, it was concluded (p 56):

"Thus if Husted could not sue his employer (Hertel-Deyo), and we know he could not, Hertel-Deyo and Consumers cannot be joint tort-feasors by law. Consumers therefore cannot sue Hertel-Deyo for contribution should it be held to respond to plaintiffs in damages.”

It went on to say (p 56):

"We carefully avoid deciding that there cannot be, in any circumstances of noncontractual relationship between a sued defendant and the plaintiff’s employer, recovery over against the employer. * * * . An obligation to reimburse can be implied by equitable principles, provided always the relator is without personal fault.”

Though the question now before us was carefully preserved and not passed upon in Husted, the decision of the trial court was largely based upon the just-quoted statement from Husted and the decision of the Court of Appeals was based upon White v McLouth Steel Corp, 18 Mich App 688 (1969), following Husted.

The exclusive remedy provision of the Michigan workmen’s compensation law (Part I, § 4; MCLA 411.4; MSA 17.144), reads:

"Where the conditions of liability under this act exists, the right to the recovery of compensation bene[703]*703fits, as herein provided, shall be the exclusive remedy against the employer.”1

It is argued that taking into account one of the purposes of the workmen’s compensation law — to establish limits of liability of an employer to his employee for injuries — the language of the statute provides the exclusive remedy against an employer in any situation. Since plaintiff is receiving benefits from Goldfarb as an employee, Goldfarb maintains that § 4 bars any claim against him other than one for workmen’s compensation benefits.

Whiteman’s liability to plaintiff, even though he was without fault, is clear. In Frazier v Rumisek, 358 Mich 455, 457 (1960), Justice Talbot Smith, writing for the Court, said:

"The owner liability statute before us was passed in response to an overwhelming public need. Common-law liability, circumscribed as it was by the doctrine of bailment, respondeat superior, agency, and the like, was unable to cope with the rising tide of injuries resulting from the use of the new mechanism, the automobile. Principal among the legislative answers were the owner liability laws. Their purpose, as Mr. Justice Edwards held in Moore v Palmer, 350 Mich 363 [1957], was to extend and complement the common law. The legislative theory was simple to state and broadly applicable: An owner was liable for the negligent operation of the machine owned by him when he had consented to its use. The liability is broader than that imposed by the doctrine of respondeat superior * * * .”

In Ladner v Vander Band, 376 Mich 321, 331-332 (1965), involving owner liability for a car not driven on a public highway, but rather in a private parking lot, Justice Black, concurring separately, wrote:

[704]*704"I do not see how the legislature could have titled and then written a plainer declaration of general owner liability; a liability which is qualified only by the express exceptions that are set forth in said section 401, no one of which is of present concern. That body told us that the owner 'shall be liable for any injury occasioned by the negligent operation of such motor vehicle.’ It did not say that such liability should be limited to negligent operation 'upon a public highway.’ It did employ the adjective pronoun 'any,’ prior to 'injury occasioned by the negligent operation of such motor vehicle,’ which pronoun courts, lawyers and lay folk have ever looked upon as synonymous with 'every,’ and 'each one of all.’ See detailed discussion in Harrington v Inter-State Business Men’s Accident Ass’n, 210 Mich at 327, 330, 331 [1920]; also the following approved quotation appearing in Gibson v Agricultural Life Ins. Co., of America, 282 Mich 282 at 289 [1937]:
" 'The clause uses the word "any,” which, to the ordinary understanding implies "of every kind.” The word negatives the idea of exclusion and would seem to mean just what it says.’ ”

Since it is also clear that Whiteman "is without personal fault”, the question is whether an obligation to reimburse can be implied by equitable principles in the face of the sweeping language of the workmen’s compensation law.

II. Indemnity

The basis for indemnification has been said to rest upon the equitable principle of a right to restitution. Courts have found various grounds for granting indemnity.

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Bluebook (online)
202 N.W.2d 797, 388 Mich. 698, 1972 Mich. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-v-whiteman-mich-1972.