Detroit Municipal Employees Ass'n v. City of Detroit

74 N.W.2d 888, 344 Mich. 670, 1956 Mich. LEXIS 446
Michigan Supreme Court·Decided March 1, 1956·No. Docket Nos. 4, 5, Calendar Nos. 46,508, 46,509·Published·Cited by 1 cases

Opinion

Dethmers, C. J.

Plaintiffs brought these suits on April 19 and 20, 1951, to recover amounts deducted under Detroit city ordinance No 146-C from the salaries of plaintiffs or their assignors as employees of defendant during that portion of the depression period extending from January 7, 1932, to June 1, 1934. For history and background and construction to be given to that and similar ordinances and resolutions recourse should be had to Detroit Municipal Employees Association v. City of Detroit, 310 Mich 480; Thal v. Detroit Board of Education, 316 Mich 351; Tumey v. City of Detroit, 316 Mich 400; Locke v. City of Detroit, 335 Mich 29. Citing those cases as au thority, plaintiffs say that the deductions were not salary reductions (see contrary holding in Brubaker v. City of Detroit, 282 Mich 309), but withholdings, as they were termed in the Municipal Employees Association and Thai Cases, or, as stated in the Turney and Locke Cases, contributions made by employees under an implied promise by defendant to repay.them when funds became available. The cases at bar were tried together by the court without a jury. Finding as a fact that more than 6 years had elapsed1 from accrual of the causes of action to date of suit, the court held the claims barred by the statute of limitations and entered judgments accordingly of no [673] cause for action in favor of defendant, from which plaintiffs appeal.

It is plaintiffs’ theory that on authority of the 4 above-cited cases there was no obligation on defendant to pay until funds were available, that funds are not legally available until appropriated for that purpose, and that because defendant did not show that any such appropriation had been made more than 6 years before commencement of suit, therefore defendant failed to sustain the burden resting on it of proving when the statute commenced to run and that, hence, the claims should not be held to be barred.

In the Municipal Employees Association and Thai Cases this Court did not pass on the question of when the causes of action accrued and the statute started to run, although in the former it appears that this Court considered the statute to have been running prior to and to have been tolled by a partial payment in 1937. There is no support in those cases for plaintiffs’ theory that the statute would not begin to run until funds became available for payment and that they are not available until appropriated therefor.

In Loche defendant urged that the cause of action accrued and the statute began to run when the with-holdings of salary occurred. Eelying on Tumeyr we held, to the contrary, that the cause of action accrued when funds were available for payment, that defendant had failed to show when funds had become available and, for that reason, we agreed with the finding of fact of the trial court, sitting without a jury, that defendant had failed to sustain the burden resting on it to prove when the statute began to run. There was no holding or language in Loche to the effect that funds could not be said to be available for payment until appropriated for that purpose.

[674] In Turney the plaintiff alleged and testified that, at the time portions of his salary had been withheld he-had been promised by his- superiors that he would be repaid when funds became available for that pur-, pose and that thereafter funds actually became available. Under instructions that plaintiff might not recover unless such agreement had been made, the jury found for the plaintiff and .answered a special question to the effect that funds became available for such payment on or before July 1, 1939. From this, it is clear that plaintiff in that case sustained the burden resting' on him of proving the agreement and the occurrence of events entitling him to recover under its terms. On that state of the record this Court held that the burden of proof rested on defendant to establish its claimed defense under the statute of limitations and went on to say that a mere showing oi favorable balances in defendant’s accounts at a time more than 6 years prior to commencement of suit did not necessarily suffice to establish that those' funds were actually available at such time to pay plaintiff inasmuch as other proofs were to the contrary, particularly testimony that, at that very time, plaintiffs’ requests for payment had been rejected by defendant’s: officials on the ground that funds were not available therefor. The essence of our holding was that availability of funds for such payment was a question of fact, which had been determined by the jury, and that the state of the proofs was not such that we could hold as a matter of law that the jury’s finding as a matter of fact with respect thereto was in error. We did not hold there that availability of funds depended on appropriation therefor.

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Detroit Municipal Employees Ass'n v. City of Detroit, 74 N.W.2d 888, 344 Mich. 670, 1956 Mich. LEXIS 446 (Mich. 1956).

74 N.W.2d 888 (Detroit Municipal Employees Ass'n v. City of Detroit) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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