Koenig v. City of South Haven

562 N.W.2d 509, 221 Mich. App. 711
CourtMichigan Court of Appeals
DecidedApril 30, 1997
DocketDocket 180870
StatusPublished
Cited by15 cases

This text of 562 N.W.2d 509 (Koenig v. City of South Haven) 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
Koenig v. City of South Haven, 562 N.W.2d 509, 221 Mich. App. 711 (Mich. Ct. App. 1997).

Opinion

Per Curiam.

Plaintiffs appeal as of right from the trial court’s order granting defendant City of South Haven’s motion for summary disposition. Plaintiffs also appeal from the judgment entered pursuant to a jury verdict finding no cause of action in favor of the individual defendants. Plaintiffs argue that the trial court erred in excluding certain testimony from lay and expert witnesses. Finally, plaintiffs contend that the trial court erred in failing to take judicial notice of certain Michigan statutes. On cross appeal, defendants allege that the trial court erred in denying their motions for a directed verdict and summary disposition. We find that the trial court erred in granting defendant City of South Haven’s motion for summary disposition. We also find that the trial court erred in failing to grant defendants’ motion for a directed verdict with regard to plaintiffs’ claim of gross negligence against the individual defendants. We affirm with regard to all other issues.

In this case, on May 10, 1990, in South Haven, Michigan, a large wave swept Jennifer Lynn Koenig off a pier extending into Lake Michigan. Although she was alive when rescued, she suffered severe and permanent injuries due to prolonged exposure and *715 anoxia. She died in July 1995. At the time of the accident, the weather was drizzly, cold, and windy, and Lake Michigan was “wavy.” In their complaint, plaintiffs, the parents of the deceased, alleged that defendants had assumed a duty to erect barricades that, during periods of dangerous lake conditions, would prevent access to the pier off which the deceased was swept.

In support of their claim that defendants had a contractual duty to prevent access to the pier in times of inclement weather, plaintiffs presented a document entitled “Memorandum of Understanding” (MOU) between the Detroit District Corps of Engineers and defendant City of South Haven. Plaintiffs alleged that the MOU obligated defendants to lock the gates to the pier when danger to persons or property warranted the closing. Plaintiffs further alleged that Jennifer Koenig, as an individual using the pier during inclement weather, was a third-party beneficiary of that contract.

For an individual to sue on a contract to which the individual is not a party, it must be determined that the individual was an intended third-party beneficiary of the contract. Rhodes v United Jewish Charities of Detroit, 184 Mich App 740, 744; 459 NW2d 44 (1990). Third-party beneficiary law in Michigan is controlled by statute. MCL 600.1405; MSA 27A.1405 provides in pertinent part:

Any person for whose benefit a promise is made by way of contract, as hereinafter defined, has the same right to enforce said promise that he would have had if the said promise had been made directly to him as the promisee.
(1) A promise shall be construed to have been made for the benefit of a person whenever the promisor of said *716 promise has undertaken to give or to do or refrain from doing something directly to or for said person.

The test for whether a person is a third-party beneficiary of a contract is objective; “the subjective intent of the parties to the contract is irrelevant.” Alcona Community Schools v Michigan, 216 Mich App 202, 205; 549 NW2d 356 (1996). Where the contract is primarily for the benefit of the parties thereto, the fact that a third party is incidentally benefited does not confer rights on that person as a third-party beneficiary. Id. The law presumes that a contract has been executed for the benefit of the parties thereto, thus plaintiffs had the burden of proving that the decedent was an intended beneficiary of the contract. Malesev v Garavaglia, 12 Mich App 282, 286; 162 NW2d 844 (1968); Moore Constr Co, Inc v Clarksville Dep’t of Electricity, 707 SW2d 1, 9 (Term App, 1985). The contract itself reveals the parties’ intentions. Rhodes, supra.

In granting summary disposition for defendant City of South Haven on plaintiffs’ third-party beneficiary claim, the trial court stated:

Applying the objective test, we see that the City merely undertook the responsibility to manage the operation of the fence. The Corps of Engineers and the City made a promise to each other, not to every citizen who visits the South Haven North Pier. . . .
Thus, we hold that plaintiff does not have [third-party beneficiary] status. This issue is not a question of fact, and therefore, will not go before the jury at trial. On the [third-party beneficiary] theory the plaintiff has failed to state a claim upon whether [sic: which] relief can be granted so summary disposition is proper.

*717 Upon review de novo, Borman v State Farm Fire & Casualty Co, 198 Mich App 675, 678; 499 NW2d 419 (1993), aff’d 446 Mich 482; 521 NW2d 266 (1994), we disagree with the trial court and reverse its order of summary disposition with regard to this issue.

In contending that the mou was intended to benefit individuals such as the decedent, who used the pier during inclement weather, plaintiffs relied exclusively on the language of the MOU. Section I of the agreement stated:

Purpose: This Memorandum of Understanding establishes general guidelines concerning the furnishing of assistance by the City of South Haven in regulating the use of Federal Navigation structures within the City of South Haven, Michigan, during periods of inclement weather or when danger to persons or property exists, as authorized herein.

Pursuant to Section m of the mou, the Corps of Engineers was to furnish and install fence-type barricades at the entrance to the piers, and the City of South Haven was “granted responsibility for coordinating and controlling entrance to the existing Federal navigational structures at the South Haven Harbor, during period [sic] of inclement weather.” Section m(c) conferred upon the city the responsibility of determining when the gates were to be opened and closed.

Section v of the MOU stated as follows:

Federal Pier Regulations: The public shall be restricted from the North and South Federal Piers in the City of South Haven during periods of inclement weather and when great danger to persons or property exists, said times to be determined by the city manager, or a person designated by him. Gates will be locked during each emergency and reopened immediately thereafter.

*718 The MOU became effective on January 27, 1972.

In our extensive research of third-party beneficiary law in Michigan and other jurisdictions, we were unable to find a case with a fact pattern similar to the instant situation. As noted by defendants, most cases involving third-party beneficiary rights confer those benefits on a particular class of individuals. However, we note that the statute does not limit potential third-party beneficiaries to narrowly defined groups, but allows such status to “[a]ny person for whose benefit a promise is made by way of contract . . .

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Bluebook (online)
562 N.W.2d 509, 221 Mich. App. 711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koenig-v-city-of-south-haven-michctapp-1997.