Domestic Linen Supply & Laundry Co. v. Stone

314 N.W.2d 773, 111 Mich. App. 827
CourtMichigan Court of Appeals
DecidedDecember 16, 1981
DocketDocket 54540
StatusPublished
Cited by8 cases

This text of 314 N.W.2d 773 (Domestic Linen Supply & Laundry Co. v. Stone) 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
Domestic Linen Supply & Laundry Co. v. Stone, 314 N.W.2d 773, 111 Mich. App. 827 (Mich. Ct. App. 1981).

Opinion

Allen, J.

Plaintiff appeals by leave granted on December 10, 1980, from a judgment of no cause of action in favor of the defendants Stewart, Mayor of the City of Romulus, and Cantrell, City Purchasing Director.

Plaintiff, for several years before 1976, supplied uniforms and linen service for the City of Romulus. Early in 1976, Purchasing Director Cantrell terminated the relationship and awarded the contract to defendant Custom Uniform.

When plaintiff learned of this, it petitioned the city council for competitive bidding. The request was placed on the council’s agenda for May 25, 1976. Purchasing Agent Cantrell published a memo to the council dated May 20, 1976, stating:

"In the past, we have experienced many difficulties with Domestic Linen Company. Their services were not dependable nor were the quality of uniforms and linens commensurable with the price we were paying.
"If you will check your warrant for the past year, we were paying from $900.00 to in excess of $1200.00 per month to Domestic.
"The new company Custom Uniform will give a better quality uniform and a more prompt dependable service for $752.60 monthly.
"We are therefore, changing from Domestic Linen to Custom Uniform. As you can see, the savings are substantial.”

*830 At the May 25, 1976, meeting, plaintiff merely requested that the contract be put up for bidding. Cantrell then complained that plaintiff had failed to replace the uniforms every 18 months as agreed upon and that the quality of service was poor. Specifically, he stated:

"A man turns in a uniform. It may be ripped or the pockets may be torn out, something to that effect, he’s supposed to tie it in a knot. Some of the uniforms come back still tied in a knot.
"If they are repaired, they are repaired in the manner that they are very badly creased or, you know, they are not justifiable, I’d say, for our employees to wear. They are in very bad condition.
"One of the drivers, the driver, told Mr. Utsie, which is the foreman down at the DPW, the other day, that when he started working at Domestic, approximately two years ago, that the uniforms were in very poor shape at that time and he was ashamed to even pick them up or deliver them.”

He reiterated his position later in the meeting:

"I don’t think price is a big thing because what our employees have, you know — went through in the last few years — it’s not because of the price, it is the quality. It is very bad uniforms, as far as I am concerned. Their service is very poor, as far as I am concerned, and this is what I am out for.”

After the council voted to require bidding on the contract, Mayor Stewart continued the discussion with respect to the bill submitted by plaintiff. He stated:

"Well, the thing is, though, I just want to point out some of these figures to you that where you were trying to fool the council into thinking — you brought your *831 three lowest bills in and presented them to the council. You didn’t bring your highest bills in, so all I want to do is point this out to the council so they wouldn’t be fooled into thinking that the department head had lied about the bills.”

At the June 29, 1976, meeting of the city council, Cantrell recommended the contract be awarded to Custom Uniform. He stated:

"Mr. Chairman, council members. The first item on my report is Bid 76-25 which is the linen service.
"It is the recommendation of Mr. Paul and myself that we award this to Custom Uniform for the total amount of $172.85 per week. There was a difference in price of approximately $17 between Domestic and Custom Uniform, which we only had two bids on it.
"Due to the fact that we’ve had such poor service with Domestic in the past years — and this is one of the primary reasons that we went out to bid on this — we can’t see any justification in awarding it to Domestic at this time.”

Council accepted the recommendation and awarded the contract to Custom Uniform with only one dissenting vote.

In a four-count complaint, plaintiff alleged five causes of action as follows:

Count I: Defamation against all defendants except Mayor Stewart.

Count II: Intentional interference with contract and interference with economic expectancy, against all defendants.

Count III: Unfair competition, conspiracy to accomplish the same, as to all defendants.

Count IV: Conspiracy and combination in restraint of trade (MCL 445.701; MSA 28.31) against all defendants.

*832 Defendants Cantrell and Stewart moved to bar the admission into evidence of any statements or writings made or read at the council meetings, arguing that such communications were absolutely privileged. Plaintiff stipulated that without these statements it could not prove its case. The lower court found the statements were absolutely privileged and entered summary judgment in favor of the mayor and purchasing director as to all four counts. Proceedings against the remaining defendants have been stayed pending appeal.

In this appeal, plaintiff claims that the trial court erred in holding that the statements made at a city council meeting by a nonmember of the council carried an absolute privilege. Plaintiff also asserts, in an issue of first impression for this Court, that the lower court erred in holding that the doctrine of privilege applies to bar admission into evidence of the challenged statements when they are offered to prove torts other than defamation. While we disagree with plaintiffs first contention, we believe the trial court erred as alleged in the second.

To better understand both issues, a preliminary discussion of privilege is helpful. "Privilege” has different meanings in the law of evidence and the law of torts. 1 For evidentiary purposes, statements that are privileged are inadmissible into evidence because those statements are regarded as too private and confidential to be disclosed in court. See generally MRE 501. Thus at common law and by *833 statute, confidential communications to a clergyman may not be revealed in court unless the person making the communication waives his right to confidentiality. Wirtanen v Prudential Ins Co of America, 27 Mich App 260; 183 NW2d 456 (1970), MCL 600.2156; MSA 27A.2156. A similar right of confidentiality has been protected when the communication is between a patient and his doctor. MCL 600.2157; MSA 27A.2157, between client and attorney, Parker v Associates Discount Corp, 44 Mich App 302; 205 NW2d 300 (1973), and between spouses, MCL 600.2162; MSA 27A.2162.

"Privilege” has a much different meaning in the law of torts.

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Cite This Page — Counsel Stack

Bluebook (online)
314 N.W.2d 773, 111 Mich. App. 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/domestic-linen-supply-laundry-co-v-stone-michctapp-1981.