H J Tucker & Associates, Inc. v. Allied Chucker & Engineering Co.

595 N.W.2d 176, 234 Mich. App. 550
CourtMichigan Court of Appeals
DecidedMarch 26, 1999
DocketDocket No. 195921
StatusPublished
Cited by89 cases

This text of 595 N.W.2d 176 (H J Tucker & Associates, Inc. v. Allied Chucker & Engineering Co.) 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
H J Tucker & Associates, Inc. v. Allied Chucker & Engineering Co., 595 N.W.2d 176, 234 Mich. App. 550 (Mich. Ct. App. 1999).

Opinions

Bandstra, J.

Defendant, Allied Chucker and Engineering Company, appeals as of right the judgment entered against it following a nine-day bench trial for the recovery of unpaid sales commissions owing to plaintiff, H. J. Tucker & Associates, Inc. In this case, [554]*554we are asked to decide, in addition to other issues, an issue of first impression involving whether MCL 600.2961; MSA 27A.2961 of the Revised Judicature Act (RJA), which grants treble damages for an intentional failure to pay commissions to a sales representative and authorizes courts to award reasonable attorney fees and court costs to a plaintiff who prevails in an action to recover the commissions due, violates the Title-Object Clause of the Michigan Constitution. Const 1963, art 4, § 24. We conclude that it does not. We affirm the trial court’s judgment in favor of plaintiff.

This cases arises from plaintiff’s claim that it was entitled to unpaid sales commissions from defendant. In 1957, Harold Joseph Tucker (Joe Tucker1) of plaintiff corporation orally contracted with Julien VanMaele of defendant corporation to serve as a manufacturer’s representative for defendant to seek tooling work for defendant from other businesses. In return for his services as a manufacturing representative, Joe Tucker was to be paid a commission by defendant for the sales or customers he procured for defendant. Although the exact terms of the oral commission agreement subsequently were disputed, it is generally undisputed that Julien VanMaele, on behalf of defendant, agreed to pay Joe Tucker commissions of five percent of the labor that defendant charged its customers for work that Joe Tucker obtained for defendant.

Over the years, the parties’ relationship grew mutually financially beneficial, with plaintiff procuring [555]*555approximately ninety percent of defendant’s sales and defendant providing approximately ninety percent of plaintiff’s revenues. There appears to have been no disputes regarding commission payments to plaintiff during Julien VanMaele’s tenure with defendant. However, soori after VanMaele died in 1986, defendant, through its then general manager, William Schomer,2 sought to reduce plaintiff’s commissions. Between 1986 and 1989, Schomer reduced plaintiff’s commissions on various projects, and, on some projects, Schomer completely eliminated the commission. During this time, Joe Tucker verbally objected to the reduction in the commissions. In April 1990, Joe Tucker wrote defendant, objecting to the reduction of plaintiff’s commissions and requesting reinstatement of the commissions. However, the commission reductions continued. In February 1993, Joe Tucker again wrote a letter to defendant objecting to the reduction in commissions and requesting reinstatement of the commissions. Defendant denied the request.

In February 1993, plaintiff sued defendant to recover the full amount of the commissions owed plaintiff since 1986. In its complaint, plaintiff alleged breach of contract, fraudulent misrepresentation, innocent misrepresentation, detrimental reliance, quantum meruit, unjust enrichment, and breach of fiduciary duty. Plaintiff later added an additional count for damages under the sales commission act, MCL 600.2961; MSA 27A.2961, which allows for an additional award of two times the amount of the commissions due, not to exceed $100,000, and for pay-[556]*556merit of costs and attorney fees. Following a nine-day bench trial, the trial court found in favor of plaintiff. The trial court awarded plaintiff commissions, statutory damages, attorney fees, court costs pursuant to MCL 600.2961; MSA 27A.2961, expenses, expert witness fees, and statutory interest.

i

Defendant challenges the constitutionality of MCL 600.2961; MSA 27A.2961, the provision of the RJA under which plaintiff sought attorney fees, court costs, and treble damages for defendant’s failure to pay commissions.3 Defendant claims that the trial court erred in determining that § 2961 does not violate the Title-Object Clause of the Michigan Constitution. Const 1963, art 4, § 24. We disagree. In reviewing this issue de novo, we begin with the presumption that the legislation is constitutional. Ray Twp v B & BS Gun Club, 226 Mich App 724, 728; 575 NW2d 63 (1997).

The Title-Object Clause of the Michigan Constitution states that “[n]o law shall embrace more than one object, which shall be expressed in its title.” Const 1963, art 4, § 24. There are three ways to challenge a statute on the basis of the Title-Object Clause: (1) a multiple-object challenge, (2) a title-body challenge, and (3) a change of purpose challenge. Ray Twp, supra at 728, citing People v Kevorkian, 447 [557]*557Mich 436, 453; 527 NW2d 714 (1994) (opinion by Cavanagh, C.J., joined by Brickley and Griffin, JJ.). In the present case, defendant raises a multiple-object challenge and a title-body challenge.

With respect to the multiple-object challenge, we are not persuaded by defendant’s argument that the RJA embraces more than one object in that the object of the RJA deals with procedural improvements but § 2961 involves substantive rights. “The ‘object’ of a law is its general purpose or aim.” Ray Twp, supra at 731. The body of the law, and not just its title, must be examined to determine whether the act embraces more than one object. Id. “The purpose of the single-object rule is to avoid bringing into one bill diverse subjects that have no necessary connection.” Mooahesh v Dep’t of Treasury, 195 Mich App 551, 564; 492 NW2d 246 (1992).

The title of the RJA states:

An act to revise and consolidate the statutes relating to the organization and jurisdiction of the courts of this state; the powers and duties of such courts, and of the judges and other officers thereof; the forms and attributes of civil claims and actions; the time within which civil actions and proceedings may be brought in said courts; pleading, evidence, practice and procedure in civil and criminal actions and proceedings in said courts; to provide remedies and penalties for the violation of certain provisions of this act; and to repeal all acts and parts of acts inconsistent with, or contravening any of the provisions of this act.

Although we agree with defendant that § 2961 involves substantive rights, we disagree that the object of the RJA involves procedure only. In reviewing the title of the RJA, we find that the general object or purpose of the RJA is the revision and consolidation [558]*558of statutes regarding the state’s courts. As explained in Kingsley Associates, Inc v Moll PlastiCrafters, Inc, 65 F3d 498, 508 (CA 6, 1995), the title of the RJA is not limited to procedure, but also encompasses substantive rights because the title refers “to the organization of the courts, the powers and duties of such courts, and the forms and attributes of civil claims and actions, all of which may refer to substantive rights.”4 Further, the title specifically refers to the rja’s provision of “remedies and penalties” for and against litigants in the courts. We agree with the conclusion reached in Kingsley that § 2961 does not violate the Title-Object Clause of the Michigan Constitution.5 Although defendant argues to the contrary, we are not convinced that the aims of the rja and § 2961 are so diverse in their subjects that they “have no necessary connection.”

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Bluebook (online)
595 N.W.2d 176, 234 Mich. App. 550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-j-tucker-associates-inc-v-allied-chucker-engineering-co-michctapp-1999.