Reynolds v. Miller

274 Mich. 354
CourtMichigan Supreme Court
DecidedJanuary 7, 1936
DocketDocket No. 45, Calendar No. 38,371
StatusPublished

This text of 274 Mich. 354 (Reynolds v. Miller) 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
Reynolds v. Miller, 274 Mich. 354 (Mich. 1936).

Opinion

Tot, J.

William H. Reynolds died November 25, 1932, leaving an estate with assets of the value of $3,116.31. Claims were filed against the estate in the probate court and allowed by commissioners on claims in the sum of $14,251.10, of which $2,443.23 was for labor claims, being for labor performed by 18 claimants, for the Lakeside Cranberry Company, of which decedent was the owner.

The labor claimants appealed to the circuit court from the decision of the commissioners on claims contending, that because William H. Reynolds was insolvent at the time the labor debts were contracted and because his estate, after his death, was insolvent, that therefore they, as labor claimants, were entitled to preference in payment of their claims against the' estate, by virtue of Act No. 94, § 1, Pub. Acts 1887 (3 Comp. Laws 1929, § 15930). The commissioners on claims had allowed these labor claims, but had disallowed the claimed preference.

The administratrix of the estate- filed her answer, categorically denying the allegations of the claim of appeal and reasons therefor.

Upon the trial in the circuit court, on said appeal, claimants introduced testimony which indicated the insolvency of William H. Reynolds at the .time the labor claims were contracted by him in his lifetime, and also submitted proof of the fact that his estate was now insolvent. There was no testimony offered by the administratrix in contradiction. She conceded the amount of the claims and the fact that they were for labor performed for the decedent during his lifetime, but denied their claim to preferment.

[357]*357It seems that the sole issue before the circuit court was whether the labor claimants were entitled to preference in payment from the assets of the estate of the decedent by reason of the statute referred to above.

The administratrix contended that the order of preference in which claims against the estate should be paid is controlled by Act No. 314, chap. 56, §§ 6, 7, Tub. Acts 1915, as amended (3 Comp. Laws 1929, §§ 15699, 15700), and that section 15930 has no application.

The trial judge took the case from the jury and entered judgment for the claimants, finding that they were “entitled to a preference in the payment of their labor debts as claimed.” The court thereupon issued an order directing the administratrix to file in the probate court a representation of the insolvency of the said estate, and that, “upon said representation being filed, the probate judge for the county of Alpena shall schedule the allowed labor claims of the above entitled appellants (claimants) as class three (referring to 3 Comp. Laws 1929, § 15699) and that said claims shall be paid in that order by the probate court.”

Motion for a new trial was made and denied. Whereupon the administratrix appealed to this court.

The statute, upon which appellees rely in their contention that their labor claims are preferred in payment, is Act No. 94, § 1, Pub. Acts 1887 (3 Comp. Laws 1929, § 15930), which, with its title, reads as follows:

“An act to make all debts for labor preferred claims against the estates of debtors becoming in[358]*358solvent, and give the same precedence over all debts not a lien on snch estates prior to the performance of snch labor.
“The People of the State of Michigan enact:
“Section 1. That all debts which shall be owing for labor by any person or persons or corporation at the time he, they or it shall become insolvent, shall be preferred claims against the estate of such insolvent debtor or debtors, and have precedence in the payment thereof over all debts owing by such insolvent debtor or debtors at the time of becoming, insolvent, which shall not have become a lien on such estate, or some portion thereof prior to the performance of the labor for which such debts for labor shall be owing.”

(For the complete language of this entire act see note to Fisher v. Wineman, 125 Mich. 642, 644 [52 L. R. A. 192]).

Appellant contends that the above quoted section has no application to claims against the estate of a deceased person, where the assets, after paying the necessary expenses of administration, shall not be sufficient to pay the debts against the estate, but that such claims must be paid as commanded by 3 Comp. Laws 1929, §§ 15699, 15700, which read as follows:

“Sec. 6. If the assets which the executor or administrator may have received, and which can be appropriated to the payment of debts, shall not be sufficient, he shall, after paying the necessary expenses of administration, pay the debts against the estate in the following order:
“1. The necessary funeral expenses as determined by the judge of probate;
“2. The expenses of the last sickness;
“3. Debts having a preference by the laws of the United States;
[359]*359“4. Debts due to other creditors, including any remainder of the funeral expenses over and above that determined as necessary by the judge of probate (Act No. 314, chap. 56, § 6, Pub. Acts 1915, as amended by Act No. 45, Pub. Acts 1929 [3 Comp. Laws 1929, § 15699]).
“Sec. 7. If there shall not be assets enough to pay all the debts of any one class, each creditor shall be paid a dividend in proportion to his claims; and no creditor of any one class shall receive any payment until all those of the preceding class shall be fully paid” (3 Comp. Laws 1929, § 15700).

We are called upon to decide whether the appel-lees are entitled to a preference in the payment of their claims against the estate. To make decision requires an interpretation, on the question involved, of the respective statutes above quoted.

The trial judge decided, in effect, that section 15930 was to be construed as a modification of section 15699, and that the labor claims involved should be scheduled as “class three” of section 15699. But we find that class three contained in that section reads as follows:

“3. Debts having a preference by the laws of the United States.”

Obviously, section 15930 does not refer to any debt having a preference by the laws of the United States. The construction adopted by the trial judge would modify and amend section 15699, and would impliedly repeal portions thereof. Did the legislature, by the enactment of section 15930, so intend?

It must be remembered that repeals by implication are not favored. In the case of Michigan Telephone Co. v. City of Benton Harbor, 121 Mich. 512, 517 (47 L. R. A. 104) the court said:

[360]*360“Repeals by implication are not favored. To this proposition it is unnecessary to cite authorities. The intent to repeal must very clearly appear, and courts will not hold to a repeal if they can find reasonable ground to hold the contrary.”

This court has held that only, when two acts are so incompatible that both cannot stand, does a later act repeal a former. Village of Highland Park v. McAlpine, 117 Mich. 666; In re Simmons, 248 Mich. 297. Is there such incompatibility between the acts under consideration?

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Related

In Re Simmons
226 N.W. 907 (Michigan Supreme Court, 1929)
Attorney General, Ex Rel. Owen v. Joyce
207 N.W. 863 (Michigan Supreme Court, 1926)
In re the Assignment of George T. Smith Middlings Purifier Co.
47 N.W. 342 (Michigan Supreme Court, 1890)
Village of Highland Park v. McAlpine
76 N.W. 159 (Michigan Supreme Court, 1898)
Michigan Telephone Co. v. City of Benton Harbor
80 N.W. 386 (Michigan Supreme Court, 1899)
Fisher v. Wineman
84 N.W. 1111 (Michigan Supreme Court, 1901)
In re McLennan's Estate
179 Mich. 595 (Michigan Supreme Court, 1914)

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Bluebook (online)
274 Mich. 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-v-miller-mich-1936.