Phinney v. Perlmutter

564 N.W.2d 532, 222 Mich. App. 513
CourtMichigan Court of Appeals
DecidedJune 16, 1997
DocketDocket Nos. 175485, 175857 and 176940
StatusPublished
Cited by158 cases

This text of 564 N.W.2d 532 (Phinney v. Perlmutter) 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
Phinney v. Perlmutter, 564 N.W.2d 532, 222 Mich. App. 513 (Mich. Ct. App. 1997).

Opinion

Wahls, P.J.

Defendant Marion Perlmutter hired plaintiff, Carolyn Phinney, as a senior research associate at the Institute of Gerontology (lOG) at the University of Michigan. At the time, Perlmutter was a research scientist at the lOG, and defendant Richard Adelman was the director of the institute. Plaintiff accused Perlmutter of stealing her research. Adelman appointed defendant Lois Verbrugge to conduct an investigation. The investigators found that Perlmutter was not guilty of scientific misconduct. Perlmutter was also found not guilty in two other investigations concerning allegations that she committed plagiarism. In the meantime, plaintiff lost her job at the lOG.

Plaintiff sued, alleging that Perlmutter had defrauded her of her research and that Adelman and defendant University of Michigan Board of Regents retaliated against her for reporting Perlmutter’s misconduct. The jury agreed with plaintiff and awarded her $133,000 in damages against Perlmutter for fraud and $989,200 against Adelman for retaliatory discrimination. The trial court, sitting as the Court of Claims, found no cause of action against the board of regents with regard to plaintiffs claim under the Whistle- *521 blowers’ Protection Act (wpa), MCL 15.361 el seq.; MSA 17.428(1) et seq.

In Docket No. 175485, which involved the fraud claim, Perlmutter appeals and plaintiff cross appeals the judgment against Perlmutter. We affirm in part and remand for a recalculation of the amount of prejudgment interest to which plaintiff is entitled.

In Docket No. 175857, the retaliation claim against Adelman, Adelman appeals and plaintiff cross appeals the judgment against Adelman. We affirm in part and remand for a recalculation of the amount of prejudgment interest to which plaintiff is entitled.

In Docket No. 176940, the claim against the board of regents, plaintiff appeals and the board of regents cross appeals the trial court’s order finding no cause of action against the board of regents. We affirm.

DOCKET NO. 175485

I

Perlmutter argues that the trial court lacked subject-matter jurisdiction because plaintiff’s claim involves rights arising under federal copyright law. We disagree.

Whether a court has subject-matter jurisdiction is a question of law. Universal Am-Can Ltd v Attorney General, 197 Mich App 34, 37; 494 NW2d 787 (1992). The burden is on the plaintiff to establish jurisdiction. Id. Although the jurisdictional issue here was never resolved by the trial court, a challenge to subject-matter jurisdiction may be raised at any time, even for the first time on appeal. Lehman v Lehman, 312 Mich 102, 105; 19 NW2d 502 (1945); Ass’n of Businesses Advocating Tariff Equity v Public Service Comm, 192 Mich App 19, 24; 480 NW2d 585 (1991).

*522 In general, a federal court does not have original jurisdiction over a case in which the complaint presents a state-law cause of action. Franchise Tax Bd v Laborers Vacation Trust, 463 US 1, 10; 103 S Ct 2841; 77 L Ed 2d 420 (1983). Here, plaintiffs complaint alleges a state-law claim of fraud. See Hi-Way Motor Co v Int'l Harvester Co, 398 Mich 330, 336; 247 NW2d 813 (1976); Baker v Arbor Drugs, Inc, 215 Mich App 198, 208; 544 NW2d 727 (1996). Accordingly, a federal court does not have subject-matter jurisdiction over this claim. Franchise Tax Bd, supra.

In addition, plaintiffs claim was not preempted by the Copyright Act. Before an action for infringement may be made under the federal Copyright Act, a publication must be registered. 17 USC 411(a); Marshall & Swift v BS & A Software, 871 F Supp 952, 957 (WD Mich, 1994). This is a jurisdictional requirement. Id., p 958; Carter v Helmsley-Spear, Inc, 861 F Supp 303, 331 (SD NY, 1994), modified on other grounds 71 F3d 77 (CA 2, 1995). Here, plaintiff never claimed that any of the works written by her, whether alone or as a joint author, were duly registered with the Register of Copyrights. In addition, defendants have provided no evidence of such registration. Thus, assuming arguendo that plaintiffs complaint can be construed to allege a violation under the Copyright Act, a federal court would not have had jurisdiction to hear such a claim. Marshall & Swift, supra, p 958; Carter, supra, p 331. Accordingly, the trial court had jurisdiction to hear plaintiffs claim.

n

Perlmutter argues that the trial court abused its discretion by permitting plaintiff to file a fourth *523 amended complaint. We disagree. Amendment is generally a matter of right rather than grace. Patillo v Equitable Life Assurance Society of the United States, 199 Mich App 450, 456; 502 NW2d 696 (1992). A trial court should freely grant leave to amend if justice so requires. MCR 2.118(A)(2). Leave to amend should be denied only for particularized reasons, such as undue delay, bad faith, or dilatory motive on the movant’s part, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party, or where amendment would be futile. Horn v Dep’t of Corrections, 216 Mich App 58, 65; 548 NW2d 660 (1996). This Court reviews a grant or denial of a motion for leave to amend pleadings for abuse of discretion. Id. Here, Perlmutter has identified no prejudice that occurred because of the trial court’s decision other than the generalized assertion that justice was not done. The trial court did not abuse its discretion in granting plaintiff leave to amend her complaint. Patillo, supra, p 456.

m

Perlmutter argues that plaintiff’s claim was barred by the statute of frauds. We disagree. Assuming arguendo that plaintiff’s claim is inextricably bound to her contract claim, an agreement for an indefinite term of employment is generally regarded as not being within the proscription of the statute of frauds. Toussaint v Blue Cross & Blue Shield of Michigan, 408 Mich 579, 612, n 24; 292 NW2d 880 (1980). Employers are not protected against jury resolution of a claim of an oral agreement for an indefinite term. Id. Because plaintiff testified that Perlmutter offered her a position that could turn into a “long term research career” if they *524 were successful in bringing in grant money, the trial court did not err in denying defendant’s motion for summary disposition. Id.

IV

Perlmutter argues that the trial court erred in denying her motion for a directed verdict based on governmental immunity. We disagree. Viewing the evidence in the light most favorable to plaintiff, Hatfield v St Mary's Medical Center, 211 Mich App 321, 325; 535 NW2d 272 (1995), Perlmutter made job promises to plaintiff with knowledge of their falsity and with the intent that plaintiff would act on those promises.

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Bluebook (online)
564 N.W.2d 532, 222 Mich. App. 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phinney-v-perlmutter-michctapp-1997.