Gregory Marina, Inc. v. City of Detroit

144 N.W.2d 503, 378 Mich. 364, 1966 Mich. LEXIS 79
CourtMichigan Supreme Court
DecidedAugust 24, 1966
DocketCalendar 10, Docket 51,075
StatusPublished
Cited by29 cases

This text of 144 N.W.2d 503 (Gregory Marina, Inc. v. City of Detroit) 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
Gregory Marina, Inc. v. City of Detroit, 144 N.W.2d 503, 378 Mich. 364, 1966 Mich. LEXIS 79 (Mich. 1966).

Opinions

Kelly, J.

(dissenting). Plaintiffs’ challenge to the validity of defendant city of Detroit’s right to construct a $1,365,000 marina on the Detroit river, resulted in a Wayne county circuit court order finding and holding that;

[373]*373“(a) The case of Edward Gray, Inc. v. City of Detroit [circuit court for the county of Wayne, in chancery, # 175,077] is not res judicata and determinative of the issues in this cause, and
“(b) The construction, operation and maintenance of the proposed city marina will constitute a public purpose, and
“(c) The city of Detroit is required under title 3, chapter 1, § 12 of the charter of the city of Detroit and also under section 5 (e) of the home-rule act, CLS 1961, § 117.5(e) (Stat Ann 1963 Cum Supp § 5.2084[e]) to secure approval of three-fifths of the electors voting thereon at any general or special election before it engages in any business enterprise requiring an investment of money by the city in excess of 10 cents per capita, and
“(d) The proposed city marina constitutes a business enterprise within the aforementioned provisions of the city charter and home-rule act, the cost to the city of which will exceed 10 cents per capita, and
“(e) The vote requirements of the aforementioned city charter and home-rule act have not been amended, deleted, or nullified by the revenue bond act of 1933, as amended, CL 1948, § 141.101 et seq. (Stat Ann § 5.2731 et seq.), and
“(f) The city of Detroit having failed to secure approval of three-fifths of the electors in accordance with the aforementioned provisions of the city charter and home-rule act.
. “It is ordered and adjudged that defendant, city of Detroit, its agents, servants, employees and attorneys be, and they hereby are, enjoined and restrained from proceeding with the erection, construction, completion, or operation of the proposed marina in George Engel Memorial Park and from proceeding with the execution, approval, or performance of any contract or structural plan with respect thereto, until approved by the electors of the city of Detroit in accordance with the aforementioned provisions of the city charter and home-rule act.”

[374]*374Appellees in a cross-appeal challenge the court’s finding in paragraph (a), that the Gray Case is not res juclieata, and the finding in paragraph (b) that the marina will constitute a public purpose. Appellant places in issue the court’s finding under paragraph (f), namely, that the city must secure approval of three-fifths of the electors before constructing the proposed marina.

The State of Michigan through its waterways commission agreed on December 2, 1960, to pay one-half of the cost of construction of the proposed marina not to exceed $800,000. The attorney general and the Michigan Association of Municipal Attorneys have filed briefs amicus curiae.

Plaintiff Kean Estates Corporation at the time of trial operated a 319-well marina on the Detroit river, at 100 Meadowbrook, Detroit; had completed 35 new wells during the last year or two and had 30 additional wells nearing completion. It paid approximately $24,000 in taxes to the city of Detroit in 1963.

Plaintiff Gregory Marina, Inc., has operated a marina on the Detroit river since 1914. At the time of trial it had 128 boat wells and in 1964 paid taxes to the city of Detroit in the approximate sum of $20,000.

Plaintiffs contend: (1) That the case of Edward Gray, Inc. v. City of Detroit is res judicata and determinative of the issues in this case; (2) That the construction, operation, and maintenance of the proposed city marina is not for a public purpose’ because (a) the benefit is not available on equal terms to the entire public in the locality affected, and (b) the enterprise bears only remotely and circumstantially upon the public welfare; also (3) That the project has not been approved by three-fifths of the electors of the city of Detroit as required by the city charter.

[375]*375Plaintiff in the case of Edward Gray, Inc. v. City of Detroit owned a parcel of land known as “Gray-harbor,” which was involved in that case. The property of present plaintiff Gregory Marina, Inc., is located on the same parcel of land, namely, “Grayharbor.”

In the Gray Case, the plaintiff sought an injunction to restrain the city of Detroit from constructing and operating a marina on another city park in Detroit. In this appeal, appellant, city of Detroit, admits in its brief that “The city proposed [in the Gray Case] to operate the marina in substantially the same manner as it proposes to operate the marina in the present case.”

In ruling against the city in the Gray Case on the question of whether the marina is for a public purpose — a main issue in this present appeal — the lower court stated: :

“Can it be said that the construction of these wells is for the benefit of the general public or for the benefit of that portion of the public owning motor boats? I understand the rule to be that a public purpose is one where it is possible for all people of a class to have equal rights and equal use of the public improvement. That will not be true in this case. * * * The same condition would arise if, for instance, the city of Detroit constructed a public garage and then leased stalls in such garage to a certain number of owners of automobiles for a year or any definite or long extended time. Or, if the city of Detroit constructed a golf course, which they have done and there is no doubt of their authority to do so, and then sold exclusive memberships therein to a limited number of people so that the general golf playing public could not have access to the grounds. Possibly if these boat wells were to be operated for use from day to day or something of that sort, where the general public might have ai opportunity to use them, the difficulty might [376]*376be obviated. It is true on golf courses only a limited number of persons can play each day but at all times the public have equal opportunity to play on such courses. That would not be true and cannot be true in the present instance. * * * An entirely different state of facts exists under the proposed plan than would apply to the construction of golf courses or even wharves where any boat may tie up. It seems to me that the only reasonable deduction that can be drawn from the testimony in this case is that the city of Detroit is undertaking to construct at a large expense to taxpayers, boat wells for the permanent or semipermanent use of an exceedingly limited number of individuals. Not only does this plan open the door to unjust discrimination and political maneuvering but it is taxing the general public for the benefit of a selected few of a large class of citizens.”

Present plaintiff Gregory Marina, Inc., claims it is in privity with plaintiff Gray by reason of ownership; that the city did not appeal the Gray judgment, and that we should apply the doctrine of res judicata as defined in Skinner v. Argentine Township Board, 238 Mich 533, where we said (pp 537, 538):

“The doctrine of res judicata

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Gregory Marina, Inc. v. City of Detroit
144 N.W.2d 503 (Michigan Supreme Court, 1966)

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Bluebook (online)
144 N.W.2d 503, 378 Mich. 364, 1966 Mich. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-marina-inc-v-city-of-detroit-mich-1966.