Mayor of Detroit v. Arms Technology, Inc.

669 N.W.2d 845, 258 Mich. App. 48
CourtMichigan Court of Appeals
DecidedAugust 7, 2003
DocketDocket Nos. 227669, 227685, 227686, 227687, 228710, 233688, 233689, 233906, 234263, 234359, 234567
StatusPublished
Cited by13 cases

This text of 669 N.W.2d 845 (Mayor of Detroit v. Arms Technology, Inc.) 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
Mayor of Detroit v. Arms Technology, Inc., 669 N.W.2d 845, 258 Mich. App. 48 (Mich. Ct. App. 2003).

Opinion

Per Curiam.

In these consolidated appeals, defendants appeal by leave granted the trial court’s decision denying their motions for summary disposition based on MCR 2.116(C)(8). We reverse.

i. facts and proceedings

The political subdivision plaintiffs in this case are among the numerous political subdivisions nationwide that have filed suit against firearms manufacturers, distributors, and retailers such as defendants, articulating theories under which defendants would be held liable as contributors to the level of gun violence experienced in their communities. While the cases in other jurisdictions lend some perspective to the issues raised, our focus is, and must be, whether plaintiffs’ claims are viable under Michigan law.

In April 1999, plaintiffs Wayne County Executive, Wayne County and others and the mayor of the city of Detroit and the city of Detroit filed separate complaints against manufacturers, distributors, and retailers of legal firearms, alleging that the methods used by defendants to market and distribute firearms con[52]*52stitute concerted, intentional, reckless, and negligent conduct that rises to the level of a public nuisance. Plaintiffs seek damages for public nuisance and negligence against defendants, alleging that defendants “have knowingly and deliberately, and for their own financial benefit, marketed and distributed guns in a manner that foreseeably injures” plaintiffs, their citizens, and their employees (the county did not claim injury to its employees). Plaintiffs allege that defendants’ conduct, described as a “careful strategy which couples manufacturing decisions, marketing schemes, and distribution patterns with a carefully constructed veil of deniability regarding particular point-of-sale transactions,” has “imposed . . . ongoing and permanent harm” on each plaintiff in the form of loss of life, serious injury, law enforcement expenses, and emergency response costs. Plaintiffs further allege that defendants’ conduct interferes significantly with the public health, safety, and welfare, and is “conduct which Defendants knew or should have known to be of a continuous and long-lasting nature that produces permanent and significant adverse effects,” thus creating a public nuisance. Plaintiffs also assert that defendants have violated their duty not to impose an unreasonable risk of foreseeable harm and have proximately caused harm. Accordingly, plaintiffs contend that defendants’ conduct also constitutes actionable negligence.

Plaintiffs allege that defendants rely on the diversion of guns from legitimate purchasers to an illegitimate secondary market through “straw” purchases,1 [53]*53multiple sales,* 2 3***sales to “kitchen table” dealers,3 and sales to corrupt dealers, and that defendants could reduce the flow of weapons to the secondary market by monitoring and guiding dealers and by limiting shipments to dealers who defendants know supply weapons to illegal purchasers. Rather than employing such measures, plaintiffs allege, defendants, with knowledge of the ease with which one can become a federally licensed firearms dealer, engage in “willful blindness” that results in profit for defendants. Plaintiffs quote Robert Haas, former senior vice-president of marketing and sales for defendant Smith and Wesson Corp., as stating that the manufacturers are aware of the funneling of their products into the illegal market but have not taken steps to supervise or screen distributors or retailers to ensure responsible distribution.

Plaintiffs also allege that defendant dealers have “negligently or intentionally acted to create and maintain the illegitimate secondary market” by openly making sales without requiring purchasers to complete the necessary paperwork, failing to conduct mandated background checks before sales, and permitting purchases when the dealer knows or should [54]*54know that the gun is going to be diverted to the secondary market for illegal activity.

The complaints contain various statistics concerning gun violence throughout Wayne County and the country and the accessibility of guns to youths and felons. Additionally, the complaints cite data from the Bureau of Alcohol, Tobacco, and Firearms (atf) that traces firearms used in crimes to retail sales that occurred less than three years before the crime, which, according to plaintiffs, is strong evidence that the weapons have been illegally trafficked. Plaintiffs allege that thousands of guns have flowed into the illegal secondary market and that defendants have done nothing to decrease these unlawful sales. Defendants, plaintiffs assert, have failed to ensure that retailers selling their products have adequately secured their premises, causing thousands of guns to reach the unlawful market after having been stolen from licensed dealers, and have failed to make the serial numbers on their products more tamperproof, thereby making it more difficult to track unlawful sales.

All defendants, plaintiffs claim, have made or sold firearms used to commit crimes in either Detroit or Wayne County. Plaintiffs assert that defendants had actual or constructive knowledge that citizens and law enforcement officers would be injured or killed because of their actions and that plaintiffs would suffer economic harm in the form of loss of tax revenue as a result.

In December 1999, defendants filed a motion for summary disposition of plaintiffs’ complaints, pursu[55]*55ant to MCR 2.116(C)(8).4 In addition to challenging the validity of plaintiffs’ causes of action, defendants argued that MCL 123.1102, which prohibits local regulation of firearms, bars plaintiffs’ actions because litigation constitutes regulation within the meaning of MCL 123.1102. In a written opinion, the trial court granted defendants’ motion to dismiss plaintiffs’ negligence claims because plaintiffs failed to establish that defendants owed them a legally cognizable duty. Plaintiffs have not appealed the trial court’s dismissal of their negligence claims.

The trial court denied defendants’ motion regarding plaintiffs’ public nuisance claims. The trial court first determined that because plaintiffs alleged that defendants acted willfully, not just negligently, and because the creation of a public nuisance can be intentional, dismissal of plaintiffs’ negligence claims was not fatal to plaintiffs’ public nuisance claims. The trial court also rejected defendants’ argument that public nuisance relates to the use of land, not products, concluding that private nuisance is related to the use of land but that public nuisance is not similarly limited. Furthermore, the trial court characterized plaintiffs’ claims as allegations of nuisance per accidens, not nuisance per se, and stated that the proper remedy for nuisance per accidens is regulation. Accordingly, the trial court rejected defendants’ argument that MCL 123.1102 prohibits plaintiffs’ claims. Moreover, the trial court rejected defendants’ assertion that [56]*56plaintiffs cannot recover the costs of municipal services as damages, and further found that plaintiffs’ claims were not so remote that defendants should not be held liable.

After the trial court rendered its opinion, several defendants filed applications for leave to appeal the trial court’s decision to this Court.

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Cite This Page — Counsel Stack

Bluebook (online)
669 N.W.2d 845, 258 Mich. App. 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayor-of-detroit-v-arms-technology-inc-michctapp-2003.