Henritzy v. General Electric Company

451 N.W.2d 558, 182 Mich. App. 1
CourtMichigan Court of Appeals
DecidedJanuary 16, 1990
DocketDocket 109782
StatusPublished
Cited by7 cases

This text of 451 N.W.2d 558 (Henritzy v. General Electric Company) 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
Henritzy v. General Electric Company, 451 N.W.2d 558, 182 Mich. App. 1 (Mich. Ct. App. 1990).

Opinions

Murphy, J.

Defendant General Electric Company (hereinafter defendant) appeals as of right from an order of the trial court denying defendant’s motion to set aside judgment and to dissolve garnishment. We affirm.

On October 16, 1982, plaintiff was cooking dinner at her home on an electric range manufactured by defendant when she accidently fell on the range’s oven door. Her fall caused the range to tip forward and heated liquids in pots spilled on her back, arms, and legs. Plaintiff suffered first- and second-degree burns.

In 1984, plaintiff filed suit against defendant and [3]*3B & B Homes, Inc., alleging negligence and breach of warranty. The parties engaged in discovery and on July 17,1987, an order compelling a mandatory settlement conference was entered. In pertinent part, it stated:

All parties, including plaintiff and an agent of defendant, General Electric Company, with settlement authority, be present in the chamber of The Honorable Judge Robert Chrzanowski on Tuesday, September 1, 1987, at 9 a.m.

Plaintiff’s attorney, Jeffrey Cohen, had made arrangements to meet his client at court at 8:00 a.m. on September 1. When she had not arrived by approximately 8:30 a.m., he telephoned her. Plaintiff’s daughter, Cheryl Kengerski, answered the phone and stated that her mother was ill, that she was going to call a doctor, and that her mother would not be able to meet Cohen. Cohen then attended the settlement conference and the parties reached an agreement in which defendant would pay plaintiff $39,000. Then, at 10:59 a.m., the parties placed the terms of their agreement on the record. Attorney Cohen stated:

After extensive negotiations and patience and latitude from this court, we have reached a settlement in the amount of $39,000. I have authority from my client, who’s not here this morning to accept that sum on her behalf.

Defense counsel agreed, stating that he was authorized to settle the case in that amount. Defendant also stated that it would handle the dismissal of the action by way of a stipulation to an order or have a separate release executed on the side. This was to be tendered to the court within twenty days. We also note that there is no dispute that [4]*4Cohen had authority from plaintiff to settle her claim against defendant.

Later that afternoon, Cohen returned to his office and called plaintiff to inform her of the settlement. He was then advised by a member of plaintiff’s family that she had died. Defendant apparently became aware of plaintiff’s death the following day after reading her obituary in The Detroit News.

On September 25, 1987, Cohen presented an order of judgment for entry by the court. On October 1, 1987, defendant filed objections to the proposed order of judgment. A hearing was held on October 1, 1987, and the court approved and entered the judgment for $39,000 on that date. On October 5, 1987, defense counsel wrote Cohen asking for copies of the letters of authority or a copy of the probate court order appointing the personal representative of plaintiff’s estate "so that we can give our principals full instructions relative to the issuance of the loss payment draft.” On November 19, 1987, Cohen wrote defense counsel asking for payment of the settlement plus interest to date. Cohen received no response. On December 9, 1987, Cohen moved to compel payment of the judgment; and on January 21, 1988, Cohen filed an affidavit and writ of garnishment against defendant.

Then, on February 1, 1988, defendant sought to set aside the October 1, 1987, judgment and dissolve the writ of garnishment. Defendant attached a copy of plaintiff’s death certificate revealing that plaintiff died from a heart attack at 9:15 a.m. on September 1, 1987. Defendant argued that the judgment should be set aside since plaintiff’s counsel fraudulently concealed the fact that plaintiff died just before the settlement was placed on the record. Plaintiff’s attorney filed an affidavit which stated that at no time during his telephone conver[5]*5sation of 8:30 a.m. on September 1, 1987, did Cheryl Kengerski indicate or suggest in any manner or fashion that plaintiff was deceased at that time. Moreover, it was not until he returned to his office at 2:00 p.m. that he was informed that plaintiff had died. In addition, he was not provided with a copy of the death certificate, stating the time of plaintiffs death, until he received a copy of defendant’s motion dated February 8, 1988, to set aside the default judgment and writ of garnishment.

Cheryl Kengerski filed an affidavit stating that on September 1, 1987, at approximately 8:30 a.m. or shortly before, she received a telephone call from attorney Jeffrey Cohen inquiring as to the whereabouts of her mother. Cheryl’s affidavit stated that, because her mother appeared unresponsive to her calls, she informed Mr. Cohen that she thought her another was sick and that she would have to call a doctor. Moreover, at the time of this conversation with Mr. Cohen, she was not aware that her mother had died and she did not indicate in any way to Mr. Cohen that her mother had died. Following her conversation with Mr. Cohen, she summoned assistance and it was only after emergency personnel arrived and pronounced her mother dead that she became aware of this fact. She did not talk to Mr. Cohen again until approximately 2:00 p.m. that afternoon when he telephoned to advise her mother that a settlement had been reached. She then informed Mr. Cohen that her mother had died.

Cohen argued at the hearing that, according to agency law, when the principal dies and the agent acts without knowledge of the death of his principal, the actions of the agent can be ratified by the successor personal representative who steps into the shoes of the principal who has died. The personal representative of plaintiffs estate, Mar[6]*6sha Miller, was present to testify at the hearing and she filed an affidavit which stated that after learning of the death of her sister on September 1, 1987, she discussed the settlement of the instant lawsuit with Cohen. Moreover, as personal representative of the estate, she authorized Mr. Cohen to proceed with the settlement or otherwise ratify the settlement.

After the hearing on this matter, the lower court issued a written opinion. The court first concluded that there had been an insufficient showing that there had been any fraud perpetrated on the court by plaintiffs attorney or any members of plaintiffs family. In addition, the court concluded that, based upon agency principles, the subsequent ratification of the settlement agreement by the personal representative of plaintiff’s estate was effective. Therefore, the parties were bound by the terms of the settlement agreement even though plaintiff’s death occurred before the time the agreement was placed on the record. The court’s opinion in pertinent part stated:

Defendant correctly asserts that an attorney’s authority to act on behalf of a client terminates upon the death of the client. Wright v Estate of Treichel, 36 Mich App 33; 193 NW2d 394 (1971). The argument is made on Plaintiffs behalf, however, that the settlement agreement should be upheld based upon the appointment of Marsha Miller as personal representative of Plaintiffs estate and Miller’s subsequent ratification of the settlement agreement. That argument is based on 2 Restatement Agency, 2d §84(2), p 213, which identifies what acts can be ratified as follows:

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Henritzy v. General Electric Company
451 N.W.2d 558 (Michigan Court of Appeals, 1990)

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Bluebook (online)
451 N.W.2d 558, 182 Mich. App. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henritzy-v-general-electric-company-michctapp-1990.