Kennedy v. LOCAL 38, UNITED BREWERY, FLOUR, CEREAL, SOFT DRINK, AND DISTILLERY WORKERS OF AMERICA

143 N.W.2d 596, 3 Mich. App. 700, 1966 Mich. App. LEXIS 715
CourtMichigan Court of Appeals
DecidedJuly 12, 1966
DocketDocket 1,149
StatusPublished
Cited by8 cases

This text of 143 N.W.2d 596 (Kennedy v. LOCAL 38, UNITED BREWERY, FLOUR, CEREAL, SOFT DRINK, AND DISTILLERY WORKERS OF AMERICA) 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
Kennedy v. LOCAL 38, UNITED BREWERY, FLOUR, CEREAL, SOFT DRINK, AND DISTILLERY WORKERS OF AMERICA, 143 N.W.2d 596, 3 Mich. App. 700, 1966 Mich. App. LEXIS 715 (Mich. Ct. App. 1966).

Opinion

Lesinski, C. J.

Plaintiff appeals claiming that the common pleas court of Detroit erred in granting-defendants’ motion to dismiss which was based upon the defense that the statute of limitations barred plaintiff’s claim.

Plaintiff became a temporary member of Local 38, United Brewery, Flour, Cereal, Soft Drink, and Distillery Workers of America, CIO, a labor association, and International Union of United Brewery, Flour, Cereal, Soft Drink and Distillery Workers of America, CIO, hereafter referred to as Local,38, *702 on July 20, 1944, when he commenced employment in the brewery industry. .In April of 1947, plaintiff was initiated a full member of Local 38. Plaintiff was continuously employed in the brewery industry from July 20, 1944, to October, 1952.

On July 10, 1950, the brewery companies and distributors of Detroit, Michigan, entered into a collective bargaining agreement with the defendants, including locals 3, 38 and 181, whereupon the Detroit Brewers and Distributors Retirement Plan and Trust was established. The purpose of this plan was to provide retirement benefits for all eligible employees, including plaintiff. The City National Bank, a Michigan banking corporation, was appointed trustee of the retirement plan and trust.

Under the retirement plan, the first 5 years of an employee’s service must be deducted in computing his retirement benefits. A terminating employee must make his claim for benefits within 1 year after the benefits are payable. A terminating employee who receives benefits, or takes a withdrawal card without receiving any benefits, and later returns to the industry, shall return to the industry as a new employee and shall be required to complete an additional 5 years of service before qualifying for additional benefits under the plan. The plan also provides that if an eligible employee leaves the industry and does not take out a withdrawal card, then only the original 5-year period will be deducted from his service in computing his retirement benefits upon his return to the industry.

In October of 1952, work was not available to the plaintiff in the brewery industry. Thinking he was protecting his rights as a union member, including his retirement benefits, plaintiff took out a withdrawal card from the union. He obtained temporary employment outside the brewery industry.

*703 In June, 1953, plaintiff returned to the industry, submitted his withdrawal card to defendant Local 38, and commenced paying union dues again. He continued in the employment of the industry until January, 1965.

In January, 1965, plaintiff, having reached the age of 62, retired and applied for benefits under the retirement plan. On February 8, 1965, plaintiff received a cheek from the Detroit Brewers and Distributors Retirement Plan and' Trust for his retirement benefits. In computing plaintiff’s benefits, two 5-year periods, or 10 years, were deducted from the total years of service.

Plaintiff instituted present action on March 12, 1965, alleging defendants, Local 38 and City National Bank, trustee, were agents of plaintiff in the negotiation and operation of the retirement plan. It was further alleged that defendants breached their fiduciary duty in negligently failing to advise plaintiff of his rights under the retirement plan, i.e., that the taking of a withdrawal card would terminate plaintiff’s rights under said retirement plan and necessitate a new 5-year period of employment in the industry before again becoming eligible for benefits. In response to plaintiff’s action of March 12, 1965, defendants filed their motion to dismiss. From the granting of defendants’ motion by the lower court, plaintiff appeals.

The issue raised here is whether a cause of action accrues upon a negligent breach of duty by an agent at the time of the breach or when substantial harm from the breach is felt.

Plaintiff contends that the present case falls into the class of cases where it has been held that if there is no injury to plaintiff at the time of defendant’s wrongdoing, the cause of action does not accrue until the injury occurs. Plaintiff claims that he was not *704 injured until lie applied for benefits in January, 1965. Since this action was commenced in March, 1965, plaintiff concludes that the statute has not run against him. He cited as authority Rodibaugh v. Caterpillar Tractor Company (1964), 225 Cal App 2d 570 (37 Cal Rptr 646); Hanna v. Fletcher (1956), 97 App DC 310 (231 F2d 469, 58 ALR2d 847), certiorari denied, sub nom. Gichner Iron Works, Inc., v. Hanna, 351 US 989 (76 S Ct 1051, 100 L ed 1501); Smith v. City of Seattle (1898), 18 Wash 484 (51 P 1057, 63 Am St Rep 910). It is significant to note that in the cases cited by plaintiff, no injuries resulted at the time of the wrongdoing. We believe these cases are distinguishable from the present case.

The test to determine when the statute of limitations begins to run may be stated as follows, 54 CJS, Limitations of Actions, § 168, p 122:

“The test to determine when the statute of limitations begins to run against an action sounding in toft is whether the act causing the damage does or does not itself constitute a legal injury, that is, an injury giving rise to a cause of action because it is an invasion of some right of plaintiff.”

In an action brought against the county recorder to recover damages based upon the alleged negligence of the recorder in omitting certain statutory requisites in indexing a chattel mortgage which subsequently' caused substantial damage to plaintiff, it was held that the cause of action accrued from the time of the negligent act of the recorder, and not from the time plaintiff sustained substantial harm in the loss of his security. Baie v. Rook (1937), 223. Iowa 845 (273 NW 902, 110 ALR 1062).

In a New Jersey suit brought by a client against defendant, an attorney, for negligently making a false report or an incorrect report of title to certain real property, the question arose as to whether the cause of action accrued at the time of the breach of *705 duty or subsequently when the client sustained substantial damages resulting from said breach. The New Jersey court in Sullivan v. Stout (1938), 120 NJL 304 (199 A 1, 118 ALE 211) citing from 17 ECL 766, § 132 said as follows (pp 306, 307):

“An action by a client for the misfeasance or nonfeasance of his attorney is based on the latter’s breach of duty, and not on the consequential damages subsequently resulting. In such cases the general rule is that in the absence of fraudulent concealment by the attorney, the statute begins to run at the time of the neglect or misconduct and not from the time when the wrong is discovered or the consequential damages are felt.”

See, also, Aachen & Munich Fire Ins. Co. v. Morton (CCA 6, 1907), 156 F 654.

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Bluebook (online)
143 N.W.2d 596, 3 Mich. App. 700, 1966 Mich. App. LEXIS 715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-local-38-united-brewery-flour-cereal-soft-drink-and-michctapp-1966.