People v. Schultz

178 N.W. 89, 210 Mich. 297
CourtMichigan Supreme Court
DecidedJune 7, 1920
DocketDocket No. 120
StatusPublished
Cited by9 cases

This text of 178 N.W. 89 (People v. Schultz) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Schultz, 178 N.W. 89, 210 Mich. 297 (Mich. 1920).

Opinions

Bird, J.

(dissenting). An indictment was returned by the grand jury of Wayne county against defendant, G. Lewis Carter and Myron D. White, charging them with having, on the 20th day. of June, 1917, and on divers other days and times between that date and [298]*298September 1, 1917, at the city of Detroit, unlawfully, falsely, deceitfully and fraudulently combining, conspiring, confederating and agreeing together by divers false pretenses and subtle means and devices to obtain and acquire unto themselves of and from the city of Detroit a sum of money, to wit: $88,000, and to cheat and defraud the city of Detroit thereof. Defendant elected to, and did, have a separate trial, at which he was convicted. The proceedings are before us for review on exceptions before sentence.

In order to avoid repetition, a statement of the case will be made in connection with the assignment that the trial court was in error in refusing to direct a verdict for defendant on the ground that the proofs did not make a case for the jury.

1. The case made by the people was, in substance, that the mayor, in September, 1914, sent a communication to the common council calling its attention to the work of the international joint commission appointed for the purpose of inquiring into the pollution of the waters of the Great Lakes by sewage. This communication led to the employment by the city of Charles W. Hubbell, an experienced engineer, to make an investigation of the sewer conditions in Detroit. Mr. Hubbell entered upon the work and after several months of investigation made a report of his work to the council with certain recommendations, among which was one advising the purchase of sufficient land for a pumping station on the low lands lying along Connors creek.

Up to July 1, 1917, Hubbell, the engineer, had indicated no particular location on Connors creek which he desired purchased. It appears that he had concluded in his own mind the desirable location but had disclosed it to no one. Soon after July 1st he took the defendant, by reason of his position as chairman of the sewer committee, to the particular site which [299]*299he had selected, showed it to him and advised the purchase of the same. There was a large sign thereon showing it was for sale by Harry W. Leach, a real estate dealer. Several days later Mr. Hubbell saw the defendant and inquired if any action had been taken towards purchasing the tract and the defendant replied that he had it under consideration. Soon after this inquiry, G. Lewis Carter, a lawyer in whose office defendant had desk room, opened negotiations with Leach for the purchase of the premises. These negotiations resulted in Carter’s getting an option thereon for $59,000. Carter represented to Leach that he was negotiating for a client named White who desired it for manufacturing purposes. Leach requested Carter to go out and examine the tract, but Carter refused, saying he was satisfied with the location, what he was interested in was the price. As soon as Carter obtained the option he interviewed Hubbell, and advised him that he had a client who had a tract along Connors creek which he desired to sell, and inquired if it would be suitable for his purpose, at the same time submitting to him a sketch and description of the property and fixing the price at $98,000. Upon examination of the description by Hubbell he discovered it was the particular property he had selected, and the property which he had shown to Schultz, the defendant.

Following this, and on July 24, 1917, George H. Fenkell, commissioner of public works, sent a communication to the council asking permission to purchase certain lands in the Connors creek district, describing them, for $98,000. This communication was acted upon at once. Defendant, who was alderman and chairman of the sewer committee, offered a resolution authorizing the department of public works to purchase the premises for the sum of $98,000. This resolution was referred' to the sewer committee, of which [300]*300defendant was chairman. On July 31st the committee reported to the council that it had the resolution under consideration, that it believed the price was reasonable and recommended the purchase of the lands at that price. This recommendation, under the rules of the council, was laid on the table for one week. At the meeting of August 7th defendant moved that the report be taken from the table. This motion prevailed and the report was referred back to the sewer committee. On August 28th the committee again reported the resolution and recommended that the purchase be made for the sum of $98,000. The resolution was then adopted.

On September 4th Alderman Lodge moved a reconsideration of the vote authorizing the purchase of the premises, but this was lost. At this same meeting, a communication was received from the mayor vetoing the resolution authorizing the department of public works to purchase the property, expressing the opinion therein that all real property purchased for the city should be obtained by condemnation proceedings. An attempt was then made to override the mayor’s veto, but the attempt failed and the city attorney was authorized to begin condemnation proceedings to obtain the property.

In explanation of some of the matters stated herein it was shown:

(а) That the communication which Fenkell sent to the council asking authority to purchase the premises for $98,000 was prepared either by defendant or at his office and left at Fenkell’s office for him to sign. Up to this time Fenkell was not aware of the particular tract selected.

(б) That defendant was a real estate dealer and had for some time and up to July 6, 1917, occupied a portion of Carter’s office.

(c) That defendant saw Leach’s sign on the property when Hubbell, the engineer, showed him,the prem[301]*301ises, and that both defendant and Carter were well acquainted with Leach.

(d) That Leach would have sold the property to Fenkell for the city for $59,000, the same as he did to Carter.

(e) Testimony was offered tending to show that White was a myth.

As is usual in cases of this character the proofs relied upon to establish the conspiracy were circumstantial. The facts and circumstances shown were ample, if believed, to justify an inference that defendant and Carter were working together in pursuance of a common understanding to purchase the site and resell it to the city at an advanced price and retain the difference for themselves. Of course, it is possible that the several acts of defendant and Carter had no relation to each other, but they are also susceptible of a different inference. Just what inference should be drawn therefrom was a question which, was clearly within the province of the jury. They having reached a conclusion thereon adverse to defendant’s. contention, it must close the inquiry upoiV this phase of the case.

2. It is further argued that defendant should have had a directed verdict, as a matter of law, because it was not shown that defendant made any false representation of a material fact, or made any agreement to make such representation. We are unwilling to concede that there was no evidence of false pretenses upon the part of the defendant. One may practice false pretenses by act as well as by word. It was said in People v. Clark, 10 Mich. 310, that “it is not essential that the pretenses by which a fraud is accomplished be expressed in words.

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Bluebook (online)
178 N.W. 89, 210 Mich. 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-schultz-mich-1920.