Department of Treasury v. Central Wayne County Sanitation Authority

463 N.W.2d 120, 186 Mich. App. 58
CourtMichigan Court of Appeals
DecidedJune 26, 1990
DocketDocket 115015
StatusPublished
Cited by16 cases

This text of 463 N.W.2d 120 (Department of Treasury v. Central Wayne County Sanitation Authority) 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
Department of Treasury v. Central Wayne County Sanitation Authority, 463 N.W.2d 120, 186 Mich. App. 58 (Mich. Ct. App. 1990).

Opinion

Per Curiam.

Defendant appeals as of right from the trial court’s order granting plaintiff’s motion for summary disposition, brought pursuant to MCR 2.116(0(10), and denying defendant’s motion for summary disposition, brought pursuant to MCR 2.116(C)(4), (5), (7), (8) and (10). Defendant raises several issues on appeal. We affirm.

On October 25, 1976, the State of Michigan, the Air Pollution Control Commission and plaintiff, the Michigan Department of Treasury, sought a declaratory judgment that the City of Detroit was required and had failed to pay surveillance fees imposed pursuant to the Air Pollution Act, MCL 336.11 et seq.; MSA 14.58(1) et seq. Defendant, Central Wayne County Sanitation Authority, was permitted to intervene as a defendant. The parties filed cross-motions for summary judgment, and, by its order of August 28, 1981, the trial court granted summary judgment in plaintiff’s favor and ordered the City of Detroit and defendant to "pay any and all delinquent surveillance fees due and owing as of the date of this Order . . . .” The court’s order was affirmed on appeal. Michigan v Detroit, 130 Mich App 503; 343 NW2d 597 (1983), lv gtd 422 Mich 857 (1985), order granting lv vacated and lv den 424 Mich 894 (1986).

*61 On April 8, 1986, plaintiff billed defendant for the unpaid surveillance fees from 1975 to 1984 and sought interest owed on the unpaid fees pursuant to MCL 600.6013; MSA 27A.6013. Although defendant paid the surveillance fees, it did not pay the $52,647.74 of accrued interest. On March 20, 1987, plaintiff filed this action to collect the interest on the judgment entered against defendant on August 28, 1981.

First, defendant contends the trial court erred in finding that the judgment entered on August 28, 1981, was a money judgment recovered in a civil action within the meaning of § 6013(1), which provides in relevant part:

Interest shall be allowed on a money judgment recovered in a civil action, as provided in this section, except that for complaints filed on or after October 1, 1986, interest shall not be allowed on future damages from the date of filing the complaint to the date of entry of the judgment.

The purpose of an award under this section is to compensate the prevailing party for the delay in its receiving money damages. McCahill v Commercial Union Ins Co, 179 Mich App 761, 777; 446 NW2d 579 (1989). The allowance of interest under §6013(1) is mandatory, Goins v Ford Motor Co, 131 Mich App 185, 201-202; 347 NW2d 184 (1983), lv den 424 Mich 879 (1986), while in equitable actions, the question of interest is a discretionary matter for the trial court. Cyranoski v Keenan, 363 Mich 288, 294-295; 109 NW2d 815 (1961).

A money judgment is one which adjudges the payment of a sum of money as distinguished from directing an act to be done. Marina Bay Condominiums, Inc v Schlegel, 167 Mich App 602, 609; 423 NW2d 284 (1988), lv den 431 Mich 905 (1988). *62 Here, the trial court’s August 28, 1981, order stated:

It is further ordered that defendant and Intervening defendant pay any and all delinquent Surveillance Fees due and owing as of the date of this order ....

On its face, the order was clearly a money judgment.

Defendant argues that, because plaintiffs 1976 complaint was an action solely for declaratory relief and not seeking specific money damages, the judgment on that complaint was not a money judgment. However, in its first amended complaint, plaintiff alleged that defendant had been billed for surveillance fees for 1974 in the amount of $8,000. In addition, plaintiff sought , entry of a judgment declaring that defendant pay plaintiff the surveillance fees owed for 1974. Thus, plaintiff sought not only a judgment declaring defendant responsible for air pollution surveillance fees, but also payment of the 1974 surveillance fees, for which defendant had been billed. Furthermore, the award of interest pursuant to § 6013 would effectuate the legislative purpose of compensating plaintiff for its loss of use of the surveillance fees, the majority of which were due and owing well before the trial court’s order.

We are not persuaded by defendant’s argument that, because plaintiff billed defendant for and sought in its original action only the surveillance fees for 1974, plaintiff was only entitled to interest on those fees. Section 6013(1) allows interest on the money judgment recovered, not on the amount originally sought.

Second, defendant contends that the trial court had no subject matter jurisdiction over plaintiffs *63 action for statutory interest. In Hendrickson v Moghissi, 158 Mich App 290, 295; 404 NW2d 728 (1987), this Court stated:

[T]he Michigan Constitution vests the circuit court with broad original jurisdiction over all matters, particularly civil, so long as jurisdiction is not expressly prohibited by law. Const 1963, art 6, § 13. [DAIIE v Maurizio], 129 Mich App [166, 172; 341 NW2d 262 (1983)]. Subject matter jurisdiction in particular is defined as the court’s ability " 'to exercise judicial power over that class of cases; not the particular case before it, but rather the abstract power to try a case of the kind or character of the one pending.’ ” 129 Mich App 172, citing Joy v Two-Bit Corp, 287 Mich 244, 253; 183 NW 45 (1938). Circuit court jurisdiction over a particular subject matter is denied only by constitution or statute. MCL 600.605; MSA 27A.605. In construing such statutes or constitutional provisions, retention of jurisdiction is presumed and any intent to divest the circuit court of jurisdiction must be clearly and unambiguously stated. 129 Mich App 174, citing Leo v Atlas Industries, Inc, 370 Mich 400, 402; 121 NW2d 926 (1963), and Crane v Reeder, 28 Mich 527, 532-533 (1874).

Defendant does not point to any constitutional or statutory provision denying the circuit court jurisdiction over an action for interest pursuant to § 6013. Defendant merely asserts that there is no cognizable cause of action for the payment of interest. Such a contention, without supporting authority, does not persuade us that the circuit court was without subject matter jurisdiction.

Third, defendant claims that the trial court erred in denying its motion for summary disposition on the ground of res judicata. Defendant argues that plaintiff was barred from litigating the issue of interest, because no payment of interest was ordered in the 1981 judgment.

*64 We have determined that the 1981 judgment was a money judgment. Consequently, the allowance of interest on that judgment was mandatory under §6013. See Goins, supra; Alpine Construction Co v Gilliland, 50 Mich App 568, 577; 213 NW2d 824 (1973). A prevailing party is entitled to the statutory interest on his money judgment even though the order of judgment did not expressly provide for interest. Alpine, supra.

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Bluebook (online)
463 N.W.2d 120, 186 Mich. App. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-treasury-v-central-wayne-county-sanitation-authority-michctapp-1990.