Panich v. Iron Wood Products Corp.

445 N.W.2d 795, 179 Mich. App. 136, 1989 Mich. App. LEXIS 400
CourtMichigan Court of Appeals
DecidedAugust 7, 1989
DocketDocket 113894
StatusPublished
Cited by55 cases

This text of 445 N.W.2d 795 (Panich v. Iron Wood Products Corp.) 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
Panich v. Iron Wood Products Corp., 445 N.W.2d 795, 179 Mich. App. 136, 1989 Mich. App. LEXIS 400 (Mich. Ct. App. 1989).

Opinions

Griffin, J.

Plaintiff appeals as of right from a lower court judgment granting defendant’s motion for summary disposition as to plaintiffs claim that defendant wrongfully destroyed evidence necessary for plaintiffs third-party tort action. We affirm.

i

On April 22, 1980, an electrical box on a lathe machine at defendant’s plant exploded causing [138]*138personal injuries to plaintiff, Thomas Panich. At the time of the accident, Panich was employed in defendant’s maintenance department and was attempting to reset the box. As a result of his injuries, plaintiff was off work for six to seven months. When he returned, the plaintiff learned that during his absence the defendant had disposed of the remains of the electrical box at a local landfill.

Plaintiff filed the instant action against defendant, Iron Wood Products Corporation, on January 18, 1982, alleging negligence and interference with an economic advantage. Plaintiff asserted in his complaint that his employer intentionally discarded the electrical box after knowing that the plaintiff had a potential third-party claim against the manufacturer of the box. Through discovery, however, the following facts became undisputed: (1) plaintiff never requested the defendant to save the electrical box; and (2) defendant never assumed an obligation to preserve the damaged box. Additionally, there was no evidence that plaintiff advised the defendant of his intention to file a third-party action until after the electrical box had been discarded.

On the basis of this record, the lower court granted defendant’s motion , for summary disposition under MGR 2.116(0(10), ruling that the defendant had no duty to preserve potential evidence for the benefit of its employee.

ii

On appeal, plaintiff argues that the common law and the Workers’ Disability Compensation Act, MCL 418.827, subds (1) and (5); MSA 17.237(827), subds (1) and (5), impose an affirmative duty on an employer to preserve evidence which might be [139]*139used in an employee’s third-party liability action. We disagree.

A motion for summary disposition under MCR 2.116(0(10) tests the factual support for a claim. The court must consider the pleadings, affidavits, depositions, admissions, and other documentary evidence available to it and grant summary disposition if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. A party opposing a motion brought under (C)(10) may not rest upop the mere allegations or denials in his or her pleadings, but must by affidavit, deposition, admission, or other documentary evidence set forth specific facts showing that there is, a genuine issue for trial. MCR 2.116(G)(4).

Plaintiff’s complaint sought recovery on two theories: negligence and intentional interference with an economic advantage. Addressing the negligence claim first, we note that the issue of duty is a question of law for the court to decide. Moning v Alfono, 400 Mich 425, 437; 254 NW2d 759 (1977), reh den 401 Mich 951 (1977). The existence of a duty is essentially a question of whether the relationship between the actor and the injured party gives rise to a legal obligation on the actor’s part for the benefit of the injured party. Id., pp 438-439. The existence of a legal duty is an essential element of every negligence action. Duvall v Goldin, 139 Mich App 342, 347; 362 NW2d 275 (1984), lv den 422 Mich 976 (1985).

The issue before us of whether an employer has a duty to preserve evidence for the benefit of an employee’s potential third-party suit is a matter of first impression in Michigan. We therefore turn to other jurisdictions for guidance.

In Coley v Arnot Ogden Memorial Hospital, 107 AD2d 67; 485 NYS2d 876 (1985), an employee of [140]*140the defendant hospital was standing on a ladder when it collapsed, causing her injuries. The defendant’s employees discarded the ladder after the accident, thus precluding the plaintiff from discovering the name of the ladder’s manufacturer and effectively negating her third-party products liability claim.

The New York court ruled that the defendant did not owe the plaintiff a duty to preserve the ladder and, thus, the plaintiff had no cause for action. Id., p 69. The court’s reasoning was based on the fact that the employer had innocently decided to discard the ladder to ensure the safety of others. Id. The court was unable to identify any duty owed and noted that the defendant had not assumed an obligation to preserve the ladder for plaintiff’s benefit. Id.

Other jurisdictions have ruled consistently in accord. See Stupka v Peoples Cab Co, 437 Pa 509; 264 A2d 373 (1970), Parker v Thyssen Mining Construction, Inc, 428 So 2d 615 (Ala, 1983), and Koplin v Rosel Well Perforators, Inc, 241 Kan 206; 734 P2d 1177 (1987).

We agree with these authorities and likewise hold that there is no common-law duty owed by an employer to preserve evidence for an employee’s potential third-party action.

hi

Plaintiff also asserts that the wdca, MCL 418.827 subds (1) and (5); MSA 17.237(827) subds (1) and (5),1 establishes a statutory duty on employ[141]*141ers to preserve evidence for the benefit of their employees. We disagree.

A cardinal rule of statutory construction is that the words and phrases in a statute are to be given their plain and ordinary meaning. Van Dam v Grand Rapids Civil Service Bd, 162 Mich App 135, 138; 412 NW2d 260 (1987). Common sense should be employed when construing a statute. People v Meadows, 175 Mich App 355; 437 NW2d 405 (1989).

Plaintiff argues that the wdca expressly or impliedly imposes a duty upon an employer to preserve evidence for the benefit of its employees’ third-party claims. We find no language in the statutory provision supportive of plaintiff’s posi[142]*142tion and note that plaintiffs strained and expansive construction is not buttressed by any legislative history or case law.

The role of the judiciary is to construe statutes as intended by the Legislature, not to rewrite them. No fair reading of the statute lends support to plaintiffs position that the Legislature intended to impose such a duty on employers. Although it is certainly in the employer’s interest to preserve evidence, since an employer’s workers’ compensation lien will be reimbursed by a third-party recovery, we hold that the statute does not impose such a duty on employers.

IV

The lower court also dismissed plaintiffs claim alleging intentional interference with an economic advantage. Initially, we note that only two jurisdictions have recognized the tort of intentional interference with a prospective civil action by spoliation of evidence: Smith v Superior Court for the County of Los Angeles, 151 Cal App 3d 491; 198 Cal Rptr 829 (1984), and Hazen v Municipality of Anchorage, 718 P2d 456 (Alas, 1986). These courts stated that the underlying basis of this new tort is the "idea of unreasonable interference with the interests of others.” Smith, p 496; Hazen, pp 463-464. Unlike in the instant case, the defendants in Smith and Hazen had assumed a duty to preserve evidence. Thus, the liability which arose was from the breach of an assumed duty.

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Bluebook (online)
445 N.W.2d 795, 179 Mich. App. 136, 1989 Mich. App. LEXIS 400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panich-v-iron-wood-products-corp-michctapp-1989.