Rohrabaugh v. Huron-Clinton Metropolitan Authority Corp.
Rohrabaugh v. Huron-Clinton Metropolitan Authority Corp.
Opinion of the Court
This action arose out of injuries sustained by plaintiff while skating at a roller rink operated by defendant Huron-Clinton Metropolitan Authority Corporation (hereafter referred to as Authority). Defendant moved for accelerated judgment and dismissal on the basis of governmental immunity, MCLA 691.1401 et seq.; MSA 3.996(101) et seq., and the trial court granted
Plaintiff initially challenges the constitutionality of the governmental immunity statute. This Court has frequently been faced with such arguments and has declined to hold the statute unconstitutional.
We must now turn to the question of whether the operation of this outdoor roller skating facility, located in a municipal park, constitutes a governmental function which in turn, by operation of statute, renders the Authority immune from liability. MCLA 691.1407; MSA 3.996(107). The Supreme Court in the recent governmental immunity cases concluded that the language of this statute "Obviously * * * must be construed as an 'affirmation’ of case-law precedent on the subject of the state’s immunity”. Thomas, supra, at 11. The Court did recognize that in applying the traditional common law test of governmental immunity there will be many incidences in which "governmental activities have never been examined in terms of whether they constitute governmental function” and areas in which "the case-law precedent is less than clear”. Thomas, supra, at 11. This is such a case.
Michigan courts have traditionally treated the operation of recreational parks as a governmental function. Royston v Charlotte, 278 Mich 255; 270 NW 288 (1936), Matthews v Detroit, 291 Mich 161; 289 NW 115 (1939), Penix v St Johns, 354 Mich 259; 92 NW2d 332 (1958). In the same year that Penix was decided, however, the Court also held that the operation of an entertainment hall was a proprietary function. Dohm v Township of Acme, 354 Mich 447; 93 NW2d 323 (1958). The determination of whether the operation of this facility constituted a governmental function depends upon a proper characterization of the nature of this operation.
Defendant submitted affidavits that indicated that a 50-cent admission fee was imposed in order to have some control over users and to control some of the cost of operation, including maintenance, wages and other expenses. Expenses of the park are apparently met by general tax revenues of the Authority.
A review of Michigan authority reveals a recent case which at first glance appears to be on point. Smith v Board of Commissioners of the Huron-Clinton Metropolitan Authority, 49 Mich App 280; 212 NW2d 32 (1973).
"The problem, so refined, is whether defendant operated the 'Island Queen’ 'primarily for the purpose of producing a pecuniary profit for the state’. Considering the undisputed fact that the boat was operated during the four years immediately prior to plaintiffs injuries at a deficit, the only possible conclusion is that it was not for the purpose of profit.
"Considering both the statutory definition4 and the four-year deficit, it was not reversible error for the trial court to conclude that defendant’s operation of the 'Island Queen’ was a governmental function, immune from tort liability under MCLA 691.1407; MSA 3.996(107).” 49 Mich App at 283-284.
This decision in Smith is troubling to this panel and we do not need to say how we would have decided that case. We do note the following appropriate remarks made by Judge T. M. Burns dissenting in Smith:
"More importantly, however, the majority, in determining the question of the defendant’s liability by relying exclusively upon whether a pecuniary profit was made in operating the excursion boat, place prospective injured plaintiffs at the mercy of a governmental agency’s management skills and business practices. For example, in Matthews v City of Detroit, 291 Mich 161,*685 167-168; 289 NW 115, 118 (1939), a plaintiff visited the Detroit Zoological Park. The city operated a miniature railroad within the park to transport visitors to various points of interest. As here, there was no charge for admission to the park, but fare on the railroad was five cents. The park was maintained at the city’s expense; however, the operation of the railroad was profitable, though offset by the greater expense of maintaining the park. Plaintiff paid the five-cent fare and was transported via the railroad to an exhibit on the grounds. While attempting to step off the car, however, the engine jerked and plaintiff was tossed to the platform and injured. Plaintiff brought suit against the city and recovered a jury verdict. The City of Detroit appealed alleging inter alia the defense of governmental immunity. In rejecting this argument and affirming the plaintiff’s verdict, the Court stated:
" 'It is our conclusion that while the city of Detroit was maintaining the zoological park in its purely governmental capacity, nevertheless in its operation of the miniature railroad, with a resultant profit therefrom, it was exercising a proprietary function; and was liable for negligence arising from such operation.’
"To grant relief in one case and deny it in the case at bar merely upon the happenstance a profit was turned by a governmental agency is both illogical and unconscionable. I can perceive of no sound reason why plaintiffs should not have their day in court.” 49 Mich App at 284-285.
Smith can be distinguished, however. Obviously, the use of the excursion boat in Smith was an adjunct to use of the park. Without the park the excursion was of little or no value. The use of the excursion boat was in conjunction with the governmental function of operating a park (it may not have competed with private business) and was more nearly akin to the business of operating a park.
Operation of a roller rink is intrinsically a different function. People would come to the park to
"This Court has considered the question of determining the particular capacity in which a defendant city was acting where there was involved a dual use of property. Matthews v Detroit, 291 Mich 161 [289 NW 115 (1939)]; Lisiecki v Detroit Wayne Joint Building Authority, 364 Mich 565 [111 NW2d 803 (1961)]; Munson v County of Menominee, 371 Mich 504 [124 NW2d 246 (1963)]. The rule from these cases is that if the object and purpose of the legislature in conferral of the powers involved is for public purposes exclusively, then the municipality is deemed to be acting in a governmental capacity. However, if the grant of power is for purposes of private advantage and emolument, then even though the public derives some benefit therefrom the municipality stands on the same footing as any private individual without the shield of governmental immunity.” 373 Mich at 205.
Several years earlier the Court observed that: "[generally speaking, the nature of the function involved and the particular facts attending its exercise have been deemed of controlling significance”. Dohm, supra, at 449-450. The fact that the municipal authority operates a roller rink on the premises of a public park should not shield this activity from liability. Operation of a roller rink, particularly where admission and rental charges for skates are made, is not a governmental function.
The trial court’s grant of accelerated judgment
See Krause v Ohio, 31 Ohio St 2d 132; 285 NE2d 736 (1972), appeal dismissed, 409 US 1052; 93 S Ct 557; 34 L Ed 2d 506 (1972), upholding Ohio’s governmental immunity doctrine, reversing the lower court’s finding of an equal protection violation in Krause v Ohio, 28 Ohio App 2d 1; 274 NE2d 321 (1971).
Defendant submitted the following financial statement regarding the operation of the park:
YEAR REVENUE EXPENSES
1968 $310,489.19 $633,526.02
1969 307,656.40 731,517.93
1970 356,347.41 792,845.54
1971 364,712.05 915,915.99
1972 337,654.42 857,961.13
1973 435,779.54 891,097.00
Apparently no figures were submitted for the roller rink alone. Unfortunately, the trial court placed heavy emphasis on the fact that the park as a whole lost money and concluded:
"The roller rink is merely a small part of the larger whole, Metropolitan Beach Park. While it is true that defendant did not file figures for the roller rink itself, it is clear from Mr. Hogan’s affidavit that the Park as a whole operates in the red to the tune of six figures.
"Further the charge is nominal. Taking these two factors into consideration, it is clear that the proprietary function does not apply. See Smith v Board of Commissioners of the Huron-Clinton Metropolitan Authority, 49 Mich App 280 [212 NW2d 32] (1973).”
Interestingly enough the instant case involves the same defendant as in Smith. See, also, Huron-Clinton Metropolitan Authority v Boards of Supervisors of Five Counties, 300 Mich 1; 1 NW2d 430 (1942).
MCLA 691.1413; MSA 3.996(113) provides:
"The immunity of the state shall not apply to actions to recover for bodily injury or property damage arising out of the performance of a proprietary function as herein defined.
Proprietary function shall mean any activity which is conducted primarily for the purpose of producing a pecuniary profit for the state, excluding, however, any activity normally supported by taxes or fees. No action shall be brought against the state for injury or property damage arising out of the operation of proprietary function, except for injury or loss suifered on or after July 1, 1965.”
Dissenting Opinion
(dissenting). I respectfully dissent.
I am not convinced the case law cited in support of the majority’s decision requires a finding that the roller rink was operated as a proprietary function. Matthews v Detroit, 291 Mich 161; 289 NW 115 (1939), was decided by an equally divided Court, and hence is of limited precedential value. The more recent opinion from this Court, Smith v Board of Commissioners of the Huron-Clinton Metropolitan Authority, 49 Mich App 280; 212 NW2d 32 (1973), is factually similar to the case at bar.
The majority argues that the roller rink is proprietary because it could exist separate from the park. It is true that the operation of the rink does not solely depend upon the other available facilities. On the other hand, the economics of the rink shows that it functions in direct relation to its locale.
It was undisputed at the trial that the roller rink charges fees substantially less than those in effect at privately owned rinks. There was no evidence showing that the rink fees covered its costs, let alone produced any profit for the defendant. The rink is just one of the many attractions in the overall park.
The unique cost structure and need to control
I would affirm.
Reference
- Full Case Name
- Rohrabaugh v. Huron-Clinton Metropolitan Authority Corporation
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- Published