Penny v. ABA Pharmaceutical Co.

511 N.W.2d 896, 203 Mich. App. 178
CourtMichigan Court of Appeals
DecidedDecember 29, 1993
DocketDocket 139328
StatusPublished
Cited by13 cases

This text of 511 N.W.2d 896 (Penny v. ABA Pharmaceutical Co.) 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
Penny v. ABA Pharmaceutical Co., 511 N.W.2d 896, 203 Mich. App. 178 (Mich. Ct. App. 1993).

Opinion

Per Curiam.

In this products liability case, plaintiff alleges that she was injured as a result of in útero exposure to the drug diethylstilbestrol (des). Plaintiff’s mother was prescribed des to prevent a spontaneous abortion. Because of her inability to isolate the drug manufacturer of the product ingested, plaintiff based her claim on the alternative liability theory set forth in Abel v Eli Lilly & Co, 418 Mich 311, 329-331; 343 NW2d 164 (1984), reh den 419 Mich 1201 (1984), cert den 469 US 833 (1984). Under that theory, plaintiff was required to bring before the court all the manufacturers who may have manufactured the drug. On January 28, 1987, plaintiff filed suit against numerous manufacturers of DES.

Subsequently, the trial court entered an order extending until January 27, 1988, the time in which to serve all defendants. Apparently, defendant E. R. Squibb & Sons, Inc., was never served with a summons and complaint in this case. 1 On February 25, 1988, the Wayne County Clerk entered an order pursuant to MCR 2.102(E) dismiss *181 ing Squibb from the case for failure of service. Evidently, plaintiff did not become aware of this order of dismissal until August 12, 1988, when defendant Eli Lilly & Company filed a motion for summary disposition based upon the clerk’s order of Squibb’s dismissal, from this matter. The statute of limitations barred suit against Squibb in March 1988. 2

On November 3, 1989, the trial court granted summary disposition in favor of all defendants because plaintiff, in failing to serve the summons and complaint upon Squibb, failed to bring before the court all the actors who may have caused her injury as required by Abel, supra.

Following this Court’s denial of plaintiffs application for delayed appeal, the Supreme Court, in lieu of granting leave to appeal, remanded the case to this Court for consideration as on leave granted. 437 Mich 929 (1991).

The sole issue for our consideration is whether the trial court properly granted defendants’ motion for summary disposition in this matter.

Plaintiff first argues that Squibb submitted to the court’s jurisdiction by appearing in this matter, and thereby waived any defense based on lack of service of process. We agree.

A party who enters a general appearance and contests a cause of action on the merits submits to the court’s jurisdiction and waives service of process objections. In re Slis, 144 Mich App 678, 683; 375 NW2d 788 (1985). Generally, any action on the part of a defendant that recognizes the pending proceedings, with the exception of objecting to the *182 court’s jurisdiction, will constitute a general appearance. Only two requirements must be met to render an act adequate to support the inference that there is an appearance: (1) knowledge of the pending proceedings and (2) an intent to appear. Ragnone v Wirsing, 141 Mich App 263, 265; 367 NW2d 369 (1985). A party that submits to the court’s jurisdiction may not be dismissed for not having received service of process. MCR 2.102(E) (2).

We find that Squibb had knowledge of the pending proceedings and an intention to appear in this matter. Squibb’s attorney was appointed to the steering committee set up in this matter to facilitate all defendants’ defenses and for ease of communication between the parties. In addition to attending steering committee meetings, Squibb’s attorney was also present and participated in specifically allocated "des case motion days” set by the trial court. Furthermore, on January 8, 1988, Squibb’s counsel sent a letter to plaintiffs counsel, referencing this matter, indicating that a true copy of the court’s order granting a motion for extension of time within which to answer interrogatories was enclosed. Squibb was aware that plaintiff had filed this action against it, and it retained attorneys who appeared and participated. Squibb’s actions constituted a general appearance. Rag-none, supra. Under these circumstances, Squibb may not raise as a defense the lack of service of process. In re Slis, supra. Squibb submitted to the court’s jurisdiction, and, therefore, summary disposition was improper.

As an alternative ground for reversal, plaintiff argues that the doctrine of equitable estoppel prevents Squibb from raising a defense based on lack of service of process or on the statute of limitations. We agree that the doctrine of equitable *183 estoppel also mandates reversal of the trial court’s order granting defendants’ motion for summary disposition.

The doctrine of equitable estoppel rests on broad principles of justice. It is applicable to actions at law and in equity. In re Prichard Estate, 169 Mich App 140; 425 NW2d 744 (1988). Estoppel arises where a party, by representations, admissions, or silence, intentionally or negligently induces another party to believe certain facts. The other party must not only have justifiably relied on this belief, but also must be subject to prejudice if the first party is permitted to deny the facts upon which the second party relied. Schepke v Dep’t of Natural Resources, 186 Mich App 532, 534-535; 464 NW2d 713 (1990).

It is clear that even assuming Squibb was not served with a summons and complaint in this matter, it was aware of the pendency of the lawsuit against it and active in its defense. Squibb’s attorney was appointed to the steering committee set up in this matter to facilitate all defendants’ defenses and for ease of communication between the parties. In complex, multiparty cases, committee representation may be employed to facilitate court management and ease the burden of unwieldy numbers. In addition to attending the steering committee meetings, Squibb’s attorney was also present at and participated in specifically allocated "des case motion days” set by the trial court. Furthermore, on January 8, 1988, trial counsel for Squibb sent a letter to plaintiff’s counsel, referencing this matter, indicating that a true copy of the court’s order granting a motion for extension of time within which to answer interrogatories was enclosed. Clearly, its retained attorneys acted in a manner consistent with actively defending this lawsuit.

*184 On this record, we find that Squibb’s actions and inactions in this case misled plaintiff into believing that it had been properly served and had not been dismissed from this case; that it was a party actively defending.

After the summons had expired on January 27, 1988, with no return of service on Squibb, Squibb unilaterally sought a clerk’s order of dismissal from the Wayne County Clerk pursuant to MCR 2.102(E) for plaintiff’s failure to serve Squibb with a summons and complaint. The February 25, 1988, dismissal order, prepared by counsel for Squibb, stated as follows:

That this matter having come before the Court upon the expiration of the summons issued against e. r.

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Bluebook (online)
511 N.W.2d 896, 203 Mich. App. 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penny-v-aba-pharmaceutical-co-michctapp-1993.