Riley v. Northland Geriatric Center

391 N.W.2d 331, 425 Mich. 668
CourtMichigan Supreme Court
DecidedAugust 7, 1986
Docket75802, (Calendar No. 14)
StatusPublished
Cited by15 cases

This text of 391 N.W.2d 331 (Riley v. Northland Geriatric Center) 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
Riley v. Northland Geriatric Center, 391 N.W.2d 331, 425 Mich. 668 (Mich. 1986).

Opinions

Riley, J.

We granted leave to appeal1 in this case to consider whether Gusler v Fairview Tubular Products, 412 Mich 270; 315 NW2d 388 (1981), is a nullity in light of the subsequent grant of rehearing, 414 Mich 1102 (1982), and the ultimate dismissal of the appeal by stipulation of the parties on March 15, 1983, whether the defendant is barred by principles of res judicata from asserting a change in the law, and whether Gusler should be given retroactive effect.

We reverse the decision of the Court of Appeals and hold, consistent with Gusler, that the minimum rates cited in MCL 418.351; MSA 17.237(351) of the Workers’ Disability Compensation Act are not subject to MCL 418.355; MSA 17.237(355) adjustments. Moreover, because the earlier treatment of the res judicata issue by the Court of Appeals was based on the erroneous conclusion that Gusler was null and void, and because the retroactive effect of Gusler was never addressed, we remand this case to the Court of Appeals for consideration of these issues in light of our holding that Gusler is binding precedent._

[672]*672PACTS AND PROCEDURAL HISTORY

Plaintiff .originally filed a petition for hearing with the Department of Labor on July 15, 1980, alleging a back disability attributable to her work for defendant-employer. Following trial on that petition, the hearing referee concluded that the plaintiff had sustained a disabling injury arising out of and in the course of her employment and determined the plaintiffs weekly compensation wage in a decision dated October 6, 1981. It is alleged that no appeal was taken from this decision because the parties believed that Jolliff v American Advertising Distributors, Inc, 49 Mich App 1; 211 NW2d 260 (1973), lv den 391 Mich 780 (1974), governed determination of the minimum weekly compensation rate.

However, on December 30, 1981, this Court filed its opinion in Gusler, supra, expressly overruling Jolliff, holding that the minimum weekly compensation rates in § 351 were not subject to the adjustments prescribed in § 355. As a result of Gusler, the defendant filed a petition for determination of rights with the bureau, seeking an order reducing plaintiffs weekly rate of compensation. In a decision and order dated May 26, 1983, the hearing referee directed the reduction of plaintiffs weekly benefits in accordance with Gusler, thus rejecting plaintiff’s argument that res judicata barred such reduction.

Plaintiff appealed this decision to the Workers’ Compensation Appeal Board, and, in a decision mailed December 8, 1983, the board reversed the referee’s decision and order, holding that res judi-cata did in fact bar a reduction in plaintiffs workers’ compensation rate.

The Court of Appeals granted defendants’ application for leave to appeal on April 4, 1984, and [673]*673subsequently, in an opinion dated January 2, 1985, Riley v Northland Geriatric Center, 140 Mich App 72; 362 NW2d 894 (1985), affirmed the Workers’ Compensation Appeal Board, holding that Gusler was not binding authority. The Court of Appeals opined that, inasmuch as this Court had granted a rehearing in Gusler, the subsequent dismissal of the appeal on the basis of the stipulation by the parties rendered that opinion a nullity. The Court of Appeals concluded by affirming the appeal board’s order that interest be paid at a rate of twelve percent per annum. Selk v Detroit Plastic Products, 419 Mich 1; 345 NW2d 184 (1984); Selk v Detroit Plastic Products (On Resubmission), 419 Mich 32; 348 NW2d 652 (1984).2

DISCUSSION

For purposes of this appeal, the history of the minimum rate controversy begins with the Court of Appeals opinion in Jolliff where the Court of Appeals held that the adjustment provisions of §3553 applied to both minimum and maximum [674]*674weekly rates. Several years later, a different Court of Appeals panel affirmed the Jolliff opinion in Gusler v Fairview Tubular Products, 92 Mich App 164; 284 NW2d 487 (1979). On appeal to this Court, we ruled in Gusler that the minimum rates provided for in §351 4 were not subject to the [675]*675adjustments provided for in § 355 of the Workers’ Disability Compensation Act.

We disagree with this interpretation and hold that no adjustment to the minimum rates prescribed in § 351 is authorized because none was intended by the Legislature. We reach that conclusion because of 1) the Legislature’s failure to make specific provision for adjustment of minimum rates while explicitly doing so with respect to maximum rates, 2) an analysis of the history of the provision in question, and 3) the internal conflicts and plainly absurd results which plaintiff’s construction of the statute would effect. [412 Mich 285.]

This Court recognized that the holding was "not unlike the announcement of a new rule of law” and that, in the interest of fairness, the opinion would not affect disability payments already made (nor would a recipient be obligated to repay any overcompensation), but that benefits due and not yet paid or to be awarded after the date of the opinion would be in accord with the Gusler ruling. Id. at 298. In this Court’s order, issued pursuant to the Gusler opinion decided December 30, 1981, we reversed and remanded the case to the Workers’ Compensation Appeal Board for proceedings in conformity with the filed opinion. We subsequently granted a timely filed motion for rehearing on August 5, 1982. However, on March 15, 1983, before any action was taken on rehearing, this Court dismissed the appeal upon stipulation by the parties.5 414 Mich 1102 (1982)._

[676]*676In the instant case, the Court of Appeals, in granting leave to appeal, raised the issue, sua sponte, whether Gusler had any force or effect in light of this Court’s grant of the rehearing and, thereafter, dismissal of the appeal pursuant to stipulation by the parties. In deciding this issue, the Court of Appeals looked to GCR 1963, 866,6 specifically §3, as authority for ruling that, because the Gusler opinion and judgment were not issued due to the stipulation to dismiss, the Gusler opinion was a nullity and, thus, inapplicable to the instant case.

We find GCR 1963, 866 to be dispositive of this situation. GCR 1963, 866.3(a) provides as follows:
"Entry. The clerk shall enter an order or judgment pursuant to an opinion as of the date the opinion is filed with him.”
Gusler was filed and entered on December 30, 1981. The "entry” of an order or judgment, however, is not the same as the date of its "issuance.” GCR 1963, 866.3(d) provides:
"Execution or Enforcement. Unless otherwise ordered by the Court, an order or judgment is effective when it is issued under (b)(1), (b)(2), or (c) and execution is to be obtained in the trial court.”
An order or judgment does not become effective, and is therefore of no precedential value, until it is "issued” in conformity with either subsection (b) or (c). People v Phillips, 416 Mich 63, 74; 330 NW2d 366 (1982). Compare

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Riley v. Northland Geriatric Center
391 N.W.2d 331 (Michigan Supreme Court, 1986)

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Bluebook (online)
391 N.W.2d 331, 425 Mich. 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/riley-v-northland-geriatric-center-mich-1986.