Adams v. Nat'l Bank of Detroit
Adams v. Nat'l Bank of Detroit
Opinion of the Court
The question presented is whether the exclusive remedy provision of the Workers’ Disability Compensation Act
Adams, an employee of the National Bank of Detroit, was erroneously arrested on a charge of making fraudulent withdrawals from nbd. The withdrawals had actually been made by another nbd employee, Michael Ansara Adams.
The jury awarded the Adams estate $1,529,154.41 for false arrest, negligence, gross negligence, wilful and wanton misconduct, and intentional infliction of emotional distress. The jury further found that there was no cause of action for malicious prosecution. The Court of Appeals affirmed.
I would hold that the Adams estate may maintain an action for false imprisonment (false arrest), and join in remand to the trial court. There is, however, no separate cause of action for negligence, gross negligence, or wilful and wanton misconduct in causing Adams’ false arrest.
i
The workers’ compensation act provides benefits for diminution or loss of earning power caused by
The exclusive remedy provision of the workers’ compensation act bars recovery for physical or mental injury resulting from accident,
The exclusive remedy provision does not bar a claim for defamation because "the gist of an action for defamation is injury to reputation, irrespective of any physical or mental harm.” Foley v Polaroid Corp (Foley I), 381 Mass 545, 551-552; 413 NE2d 711 (1980);
In Prosser and Keeton’s words, the cause of action for false imprisonment "protects the personal interest in freedom from restraint of movement.”
In Moore v Federal Dep’t Stores, 33 Mich App 556, 559; 190 NW2d 262 (1971), the Court of Appeals concluded that the exclusive remedy provision did not bar a claim for false imprisonment. The Court said that "the gist of an action for false imprisonment is unlawful detention irrespective of any physical or mental harm.” The Court agreed with Moore "that her humiliation, embarrassment, and deprivation of personal liberty are not the type of 'personal injury’ ” covered by the workers’ compensation statute.
A claim for false imprisonment does not implicate the safety of the workplace. As with claims seeking recovery for physical, mental, or emotional injury resulting from employer discrimination in violation of civil rights acts — which are not barred by the exclusive remedy provision, Boscaglia v Michigan Bell Telephone Co, 420 Mich 308, 315; 362 NW2d 642 (1984) — the "evil” at which the action for false imprisonment is aimed is different from failures to maintain workplace safety, for which workers’ compensation benefits are provided.
ii
Collective corporate knowledge and intent are not real issues in the estate’s claim for false imprisonment because an nbd employee, Mary Miller Mach, possessed the requisite state of mind to cause false imprisonment. An actor can commit an
More specifically, a hostile intent to invade the interests of another is not an essential element of false imprisonment. "Although intent is necessary, malice, in the sense of ill will or a desire to injure, is not. There may be liability although the defendant believed in good faith that the arrest was justified, or that the defendant was acting for the plaintiff’s own good.” Prosser & Keeton, Torts (5th ed), § 11, p 53.
Even more specifically, a defendant cannot escape liability for false imprisonment on the basis of a mistake concerning the plaintiff’s identity. In Prosser and Keeton’s words:
Even if intent to confine the individual is necessary, it need not be with knowledge of who the plaintiff is; and, as in the case of other intentional interferences with the person or property, an innocent, and quite reasonable mistake of identity will not avoid liability. [7d]
The California Court of Appeals observed concerning intent in false imprisonment:
We do point out, however, that, contrary to the view expressed by defendants, plaintiff was not*340 required to allege that defendants knew plaintiff and specifically acted with the intent to have him arrested. . . . The doctrine of transferred intent has long been recognized to apply to the tort of false imprisonment. . . . Under this doctrine the intention to confine any person is a sufficient intent to render one liable to the person actually confined. It is immaterial that the actor did not know the identity of the person he intended to confine; nor does it matter that the actor intended to affect some person other than the one actually confined. . . . Thus an allegation that the defendant intended to induce an arrest of someone would have been sufficient.[18 ] [Du Lac v Perma Trans Products, Inc, 103 Cal App 3d 937, 944; 163 Cal Rptr 335 (1980). Emphasis in original.]
In the instant case, the jury could reasonably conclude that nbd — through its employee Mary Miller Mach — intended to cause the false arrest of Michael Adams. Mach gave Adams’ name to the West Bloomfield Police Department when Officer Mero called seeking information "[i]n order to arrest the suspect . . . .” In the context in which Mary Miller Mach named Adams as the suspect, it being substantially certain that an arrest would follow from her disclosure, it is not a defense that nbd meant to cause the arrest of another Michael Adams or that nbd had no desire to confine the Michael Adams whose estate brings this action.
The Adams estate presented sufficient evidence of all the elements of false imprisonment. The elements are: an act committed with the intention of confining another,
Nbd claims that the trial court erred in submitting the false imprisonment claim to the jury because its actions were not sufficient to meet the standard for instigation of, or participation in, a false arrest, and because the confinement was incident to a valid arrest pursuant to a facially valid warrant.
A person is not subject to liability for false arrest where the person merely gives information to the police and the police use their own judgment in deciding whether to make an arrest, Lewis v Farmer Jack Div, Inc, 415 Mich 212, 219, n 3; 327 NW2d 893 (1982). The trier of fact could properly find that this case is not within that rule.
It appears that nbd did more than simply provide information to the police, and the trier of fact could find that the police did not use their independent judgment in making the decision to arrest. Nbd’s internal security department conducted the investigation leading to the arrest. The West Bloomfield officer in charge of the case testified
Nor is nbd relieved of liability merely because the arrest was made pursuant to a facially valid arrest warrant.
iv
The estate seeks to recover for loss resulting from Adams’ suicide. The chain of causation test, stated in Hammons v Highland Park Police, 421 Mich 1; 364 NW2d 575 (1984), is, in my opinion, preferable to the rule stated in the concurring opinion
MCL 418.131; MSA 17.237(131).
Unpublished per curiam opinion, decided December 12, 1991 (Docket No. 112711).
See n 11.
The mistake in identifying Adams as the culprit was neither "outrageous” nor done with bad purpose or intent, and, therefore, the Adams estate may not maintain an action for intentional infliction of emotional distress.
See also Mounteer v Utah Power & Light Co, 823 P2d 1055, 1057 (Utah, 1991), and Foley v Polaroid Corp (Foley I), 381 Mass 545, 551; 413 NE2d 711 (1980), discussed in notes 8 and 9.
Sewell v Bathey Mfg Co, 103 Mich App 732, 736; 303 NW2d 876 (1981). Similarly see Mounteer v Utah Power & Light Co, n 4 supra, stating that Utah’s worker’s compensation act provides compensation for "diminution or loss of earning power caused by a physical or mental injury or by death sustained in the work place”; Foley 1, n 4 supra, stating that the Massachusetts’ workers’ compensation act covers "physical and mental injuries arising out of employment.”
The workers’ compensation act does not define a chapter 3 personal injury, and thus does not identify specific injuries. A 1980 amendment provides that certain disabilities and conditions shall be compensable if caused by the employment in a "significant manner.” MCL 418.301(2); MSA 17.237(301)(2). The act does, however, define a chapter 4 personal injury concerning diseases or disabilities due to causes and conditions characteristic of and peculiar to the business of the employer. MCL 418.401(l)(b); MSA 17.237(401)(l)(b).
See Beauchamp v Dow Chemical Co, 427 Mich 1; 398 NW2d 882 (1986), in which this Court held that the exclusive remedy provision bars recovery by an employee for accidental injury and not for an intentional tort, and declared that where the employer knew that the injury was substantially certain to occur from the employer’s intentional act, the employer may be found to have committed an intentional tort. In Beauchamp, the plaintiff sought recovery for physical and mental injury resulting from exposure to "Agent Orange” during employment with Dow Chemical.
The Legislature amended the exclusive remedy provision in response to Beauchamp to provide that the worker’s exclusive remedy against the employer "for a personal injury or occupational disease” is recovery of benefits provided by the workers’ compensation act, and that the only exception is an intentional tort, and to provide that an intentional tort occurs when the worker is injured "as a result of a deliberate act of the employer and the employer specifically intended an injury.” 1987 PA 28, amending MCL 418.131(1); MSA 17.237(131X1).
I see no need to decide whether the amendment is retroactive because the amendment concerns the standard for determining the line between an accidental and intentional tort where the interest of the worker is freedom from physical and mental injury. The amendment does not bar or concern intentional torts where physical or mental injury is only incidental to the primary interest protected, such as the interests protected by the actions for defamation (reputation), malicious prosecution (unwarranted litigation), and false imprisonment (unlawful arrest or confinement). See n 14.
Other jurisdictions have recognized that not all harms occasioned by the employment relationship qualify as compensable injuries under the Act. Such harm includes: injuries to reputation resulting from libel, malicious prosecution and false imprisonment, invasion of privacy, and false arrest. [Battista v Chrysler Corp, 454 A2d 286, 289 (Del Super, 1982).]
In Foley I, the court "recognized the conceptual problem inherent in the employee’s including physical and mental injury as elements of damage in the defamation claim.” Foley, supra at 552. The "conceptual problem” was that the plaintiff was seeking recovery for physical and mental injuries, for which compensation is provided under the act, in addition to seeking damages for harm to his reputation. The court concluded that "to block the main thrust of this action because of peripheral items of damages, when a compensation claim could not purport to give relief for the main wrong of injury to reputation, would be incongruous, and outside the obvious intent of the exclusiveness clause.” Id.
In Mounteer, the court said that courts have developed a test to determine whether a cause of action arising out of a work-related injury is barred by the exclusive remedy provision. The test asks whether physical or mental injury is an indispensable element of the tort. If physical or mental injury is not an indispensable element, a cause of action based on that tort is not barred. Thus, a cause of action for intentional infliction of emotional distress is barred because emotional harm is an indispensable element of that tort. Foley I and Mounteer, supra. A cause of action for false imprisonment is not barred because neither physical nor mental injury is an essential element of that tort.
Foley I, supra at 552. See also Battista, n 7 supra at 289.
See part n and accompanying text.
Because an action for false imprisonment can be maintained without regard to the degree of fault of the actor, a separate cause of action for negligence, gross negligence, and wilful and wanton misconduct in causing Adams’ false arrest cannot be maintained.
Prosser & Keeton, Torts (5th ed), § 11, p 47.
Battista, n 7 supra at 289; Foley v Polaroid Corp (Foley II), 400 Mass 82; 508 NE2d 72 (1987); Redican v Kmart Corp, 734 SW2d 864 (Mo App, 1987).
The holding in Moore cannot properly be questioned on the basis
The question whether harm to the liberty interest is the kind of harm covered by the workers’ compensation act is antecedent to the issue in Beauchamp.
Suppose that during the course of employment, an employer broke the eyeglasses of a worker or bashed in the windshield of his automobile, and that the worker filed a claim for trespass to chattels against his employer, and that the employer claimed that the exclusive remedy provision barred the claim. The court would first consider whether broken eyeglasses or windshields are the kind of harm for which recovery is provided under the workers’ compensation act. That was the inquiry in Behl v General Motors, 25 Mich App 490; 181 NW2d 660 (1970), in which the Court set aside an award of workers’ compensation because it concluded that damage to a hearing aid is not a "personal injury” within the meaning of the workers’ compensation act.
Although the act of an employer in breaking eyeglasses or a windshield or a hearing aid may have been intentional within the meaning of Beauchamp or § 131 as amended, it is not the kind of harm for which workers’ compensation benefits are payable. See n 6.
In Dockins v Ingles Markets, Inc, 306 SC 287; 411 SE2d 437 (1991), the South Carolina Supreme Court followed Foley I as clarified in Foley II and held that a worker’s cause of action for slander was not barred by the exclusive remedy provision because the gist of the action is injury to reputation, and that the worker could recover for emotional injuries that resulted from the slander.
In Mounteer, supra, the worker developed posttraumatic stress disorder after a mine fire broke out while he was on duty. After the worker returned to work, the employer’s fire investigator accused him
Prosser & Keeton, n 12 supra, pp 34-37; 1 Restatement Torts, 2d, § 8A, p 15; Bradley v American Smelting & Refining Co, 104 Wash 2d 677, 683; 709 P2d 782 (1985).
See also Murphy v Nassau Co, 154 Misc 2d 605, 607; 585 NYS2d 951 (1992) ("The best of intentions will not legalize a false arrest and it matters not whether the arresting party has good or bad motives, good or bad faith, malice or lack thereof. These elements are immaterial in an action for false arrest”); Zayre of Virginia, Inc v Gowdy, 207 Va 47, 51; 147 SE2d 710 (1966) ("To maintain an action for false imprisonment it is not necessary to show malice, ill will or the slightest wrongful intention, and neither the good faith of a defendant nor that of his employee will defeat a plaintiff’s right to recover”).
See also 1 Harper, James & Gray, Torts (2d ed), § 3.7, p 291 ("Nor will a mistake in the identity of the plaintiff constitute a defense. The intention to confine another person will make the defendant liable to the person actually confined although there is no desire or intent on the part of the defendant to harm the plaintiff”); 1 Restatement Torts, 2d, § 43, comment a, p 66 ("To make the actor liable for false imprisonment under the rule stated in § 35, it is not necessary that his act be done with the intention of imposing a confinement upon the other. It is enough if he intends to confine a third person and the other is in fact confined”).
See Wilson v Bonner, 166 Ga App 9, 15; 303 SE2d 134 (1983). The court said that "[i]f there has been a mistake made as to the name in
The Restatement, n 18 supra, equates intent with knowledge that a harm will result from one’s actions.
Id., §35, p 52.
Maliniemi v Gronlund, 92 Mich 222, 227; 52 NW 627 (1892).
See Lewis, supra at 218, n 2, stating the general rule that liability for false arrest cannot flow from a lawful arrest.
The Michigan Court of Appeals said:
While a complaining witness is immune from liability for false arrest where a valid complaint was issued, this immunity does not extend to instances where the complaining witness does not act reasonably: for example, when he knew, or should have known, that, were it not for his mistake, the arrest warrant would not have been issued. [Raudabaugh v Baley, 133 Mich App 242, 248; 350 NW2d 242 (1983). See also Wilson v Bonner, n 19 supra.]
The view stated in the concurring opinion finds some support in 2
Concurring in Part
(concurring in part and dissenting in part). I agree with Justice Brickley’s conclusion that under these circumstances some employee must act with the requisite intent to impute an intentional tort to a corporation. Because the jury instruction regarding composite knowledge allowed the factfinder to determine liability without a finding of the intent requisite to discrete claims, I also agree that reversal of the verdict is required.
However, I agree with Justice Levin that, viewed in a light most favorable to the plaintiff, the evidence is sufficient to support a claim of instigation of false imprisonment and that the liberty interest protected is not subject to the exclusive remedy provision of the workers’ compensation act.*
Because we believe that, on the basis of these facts and the current state of the
I. FACTS
A
In September of 1991, nbd became aware of the fact that one of its temporary contract employees,
Information not provided by nbd when it filed its complaint included the suspect’s date of birth,
Ms. Mach was then serving as a supervisor in nbd’s security department and was required to keep abreast of all cases in the office. She originally testified that the first time she became aware of the Adams file was when she received a telephone call from Officer Mero. However, a stamp
Moreover, Ms. Mach’s testimony indicated that she was aware that, at the time of her conversation with Mero, the suspect was a contract employee. She also indicated that nbd’s procedures required her to keep her superiors aware of any developments and any investigation pertaining to
Mach knew that the suspect was a temporary employee, yet she released information regarding a permanent employee. She clearly was aware of the distinction from the fact that she failed to notify her supervisor about her conversation with Officer Mero.
Ms. Mach’s statement that the security file pertaining to the investigation could not be located when Officer Mero called is open to serious question. In this file was a form containing the name Michael Adams and listing a phone number. This, however, was not the telephone number of the actual suspect; rather, it was decedent’s home phone number. The plaintiff argues that the only person who could have confused the actual suspect and the decedent was Ms. Mach. Thus, plaintiff argues, the fact that decedent’s home phone number was in the file provides dramatic support for plaintiff’s claim that Mach was in possession of the file at the time she provided the erroneous information to Officer Mero.
Mr. Schwaller also testified that under nbd procedures, a person releasing information of this type should have either the index cards or the file. If the person had neither, the information was not to be released.
Finally, Carl Carter, NBD’s Vice President for Corporate Security, testified that he agreed that the information Ms. Mach provided the officer should not have been given. As a result of the erroneous information provided by Ms. Mach, Officer Mero called Mr. Adams and arranged for him to turn himself in to the West Bloomfield police. However, before the date set for his arraignment, Mr. Adams went to his superiors at the bank to advise them that a mistake had been made. Completely distraught over the accusations lodged against him and his impending arrest, Mr. Adams
Mr. Adams went to the police department on October 14, 1981. He was arrested, handcuffed, and later arraigned in district court.
His arrest and the accusations leading to his arrest had an immediate and devastating effect on him. The pain was compounded by nbd’s failure to provide an apology. Jean Ristagno, a vice president of nbd, testified that she was aware that Mr. Adams wanted an apology. Mr. Schwaller testified that he and another employee were advised not to interview Mr. Adams or make an apology. Furthermore, testimony from psychiatrists indicated that his depression increased because of this treatment by fellow employees. He went to work on October 14, 1981, emotionally distressed. By the following Monday, five days after his arrest, he went to the Sinai Hospital emergency room for treatment of distress that he was experiencing as a result of the accusations. During the remainder of October, he attempted to return to work, but was never able to complete his entire shift.
On October 29, 1981, Mr. Adams’ anxiety required him to take a medical leave. During the months that followed, he spent over one month as an inpatient at the Sinai Hospital psychiatric unit, and underwent additional weeks of treatment in Sinai’s outpatient program.
In March of 1982, he was examined by a psychiatrist from nbd who pronounced him fit to return
ii
There are two conceptual hurdles that the plaintiff must clear: (1) whether, on the basis of these facts, liability for an intentional tort may be imputed to the corporate entity, and (2) if that proposition is true, whether on these facts an intentional tort exists.
A
Even if one accepts Justice Brickley’s test, we contend that more than enough evidence exists in this case for the proper imposition of corporate intentional tort liability.
Justice Brickley maintains that showing that a corporation committed an intentional tort requires something more than mere knowledge. He quotes the following as supporting authority:
The intent with which tort liability is concerned is not necessarily a hostile intent, or a desire to do*350 any harm. Rather it is an intent to bring about a result which will invade the interests of another in a way that the law forbids. [Prosser & Keeton, Torts (5th ed), § 8, p 36.]
Note, however, that the same authority interprets intent to also extend to those consequences the actor believes are substantially certain to follow from what he does. Id.
Prosser and Keeton also delineate the three most basic elements of intent. They state the following:
(1) it is a state of mind
(2) about consequences of an act (or omission) and not about the act itself, and
(3) it extends not only to having in the mind a purpose (or desire) to bring about given consequences but also to having in mind a belief (or knowledge) that given consequences are substantially certain to result from the act. [Id. at 34. Emphasis added.]
Justice Brickiey’s analysis suggests that the actor must intend or desire the explicit or precise outcome that arises from his tortious act. We disagree. A deliberate act is simply a voluntary one.
According to Ms. Mach’s testimony, she released information to Officer Mero without possession of the file or the benefit of actual knowledge. In so doing, she claimed that she complied with nbd procedures. Contrary to her testimony, three nbd agents testified that because Mach was not the investigator in charge of this case, and according to her testimony did not have the file or actual knowledge, she violated nbd policy when she released the information to Mero. In addition, a jury may reasonably infer from the facts that Mach knowingly and intentionally gave out erroneous information because she knew that the suspect was a temporary employee. A stamp on the nbd investigation file indicated that Ms. Mach reviewed the file on September 29, 1981, more than one week before her telephone conversation with Officer Mero. Equally important, Mr. Michalski testified that he advised Ms. Mach of what was happening in his Adams investigation on a daily basis. Moreover, Ms. Mach’s own testimony provides support for the jury’s conclusion. Ms. Mach further testified that nbd procedures required her to keep her superiors advised of any cases involving nbd employees. When asked why she had failed to notify her superiors of her conversation with Officer Mero, she responded that she was not required to because the investigation centered on a contract employee, not an nbd employee.
Mach made a conscious decision to disregard nbd’s procedure for releasing information in order to provide Mero with the facts necessary to effect
Unfortunately, the outrageous character of nbd’s conduct in this case is not confined to Ms. Mach. Mr. Schwaller testified that he and another employee were advised not to interview or make an apology to Mr. Adams. Therefore, even if one accepts Justice Brickley’s view that Ms. Mach’s actions were merely negligent and that nbd should not be held liable, the corporation’s decision to erect a wall of silence around Mr. Adams was without question an intentional act. The decision to maintain corporate silence was made at a time when it was clear to most that Mr. Adams was suffering emotionally from Ms. Mach’s intentional delivery of incorrect information to the West Bloomfield police.
Assuming, arguendo, that collective knowledge may not be imputed to a corporation unless an individual employee possesses the requisite state of mind, there is sufficient evidence to support the jury’s determination that the corporation had committed, through its officers or employees, an intentional tort. Thus, under Justice Brickley’s test, the corporation should be held liable for the consequences flowing from it._
The theories of liability upon which the plaintiff was successful are intentional infliction of emotional distress, false arrest, and gross negligence.
Furthermore, we hasten to point out that this case was filed in 1982, and thus is a pre-1987 amendment case. Consequently, it is governed by our holding in Beauchamp v Dow Chemical Co, 427 Mich 1, 25; 398 NW2d 882 (1986). There, the Court stated:
An intentional tort "is not . . . limited to consequences which are desired. If the actor knows that the consequences are certain, or substantially certain, to result from his act, and still goes ahead, he is treated by the law as if he had in fact desired to produce the result.” It does not matter whether the employer wishes the injury would not occur or does not care whether it occurs. If the injury is substantially certain to occur as a consequence of actions the employer intended, the employer is deemed to have intended the injuries as well. [Id. at 21-22. Emphasis added.]
Justice Brickley maintains that the plaintiff has failed to demonstrate that any individual had the requisite intent to satisfy a claim for an intentional tort. We disagree. The Court also maintains
The elements for the intentional infliction of emotional distress are set forth in Roberts v Auto-Owners Ins Co, 422 Mich 594; 374 NW2d 905 (1985). We believe the plaintiff has introduced sufficient facts to satisfy the Roberts standard. See also Gonyea v Motor Parks Federal Credit Union, 192 Mich App 74; 480 NW2d 297 (1991). The leading Michigan case involving false arrest is Lewis v Farmer Jack Div, Inc, 415 Mich 212; 327 NW2d 893 (1982). However, the elements of false arrest are more clearly set forth in 1 Restatement of Torts, Second.
CONCLUSION
We disagree with Justice Brickley’s conclusion that nbd is not responsible for the intentional torts alleged and proved by the plaintiff.
While we would affirm the decision of the Court of Appeals, because there is not a majority for that result, we join with Justices Levin and Boyle in directing remand to the trial court for further proceedings regarding the plaintiff’s claim of false imprisonment.
We have been asked to determiné whether the Court of Appeals erred in affirming a jury verdict of $1,529,154.41 for the plaintiff. The parties have presented seven issues. We will address two: (1) whether this suit is barred by the exclusive remedy provision of the Workers’ Disability Compensation Act, MCL 418.131; MSA 17.237(131), and (2) whether knowledge of various employees of the defendant corporation could be amalgamated and imputed to the corporation to constitute the state of mind necessary for finding that it committed an intentional tort.
We hold that the plaintiff has failed to establish
i
In October of 1981, Michael Bret Adams, the decedent, was erroneously arrested for making fraudulent withdrawals from the defendant National Bank of Detroit. The fraudulent withdrawals were actually made by Michael Ansara Adams, a temporary employee working for nbd. During the investigation, an nbd employee gave the West Bloomfield Township police the address and phone number of the decedent instead of the actual suspect. As a result, the decedent was arrested. Although the error was quickly discovered and the charges dropped, the decedent suffered lasting trauma, became severely depressed, was hospitalized for a period of time, and ultimately committed suicide.
The inspector in charge of the investigation was Richard Michalski. Whenever nbd conducted an investigation, it was recorded and described in a loss prevention file. The loss prevention file in this case included Michael Ansara Adams’ complete file from Arrow Temporary Services and included his social security number, address, home phone number, date of birth, and description. Michalski sent a report to the West Bloomfield Police; however, he did not include the date of birth or telephone number of the suspect,
In order to arrest the suspect, Officer Mero of the West Bloomfield Township Police Department called nbd to get the suspect’s phone number and address. Because Michalski was unavailable, he spoke to Michalski’s supervisor, Mary Miller Mach, and asked her for the information. Mach testified that because she could not find index cards that cross-indexed the file, she could not retrieve the file. She testified that she searched the desks of the investigators and secretaries in the department,
Evidence was presented that Mach violated nbd procedure when she obtained the requested information from a source other than the loss prevention file. According to several security department personnel, when nbd initiated a complaint, only the investigator handling the complaint was supposed to give out information to the police, except if another investigator had the file in hand, or had personal knowledge of the case. Further, the plaintiff presented evidence that it was standard procedure in the loss prevention department for an investigator to keep his supervisor informed and for that supervisor to review the file after an investigation was started. A notation on the file indicates that Mach reviewed the file on September 29, 1981.
After obtaining the information from Mach, Sergeant Mero contacted the decedent and advised him to turn himself in. When the decedent next went to work, he told his supervisor what had happened. His supervisor took him to see Richard Wolfe, the assistant vice president in charge of the item check processing group, in which the decedent worked. The decedent told Wolfe of the warrant for his arrest, and told him that he was innocent. Wolfe called the security department and described the situation to Albert Schwaller, the security manager. Schwaller called the West Bloomfield police, and they confirmed that there was a warrant for Michael Adams’ arrest. Schwal-ler informed Wolfe,
Michalski never apologized to the decedent, nor was he aware that anyone else had done so. Schwaller stated that the security department had been advised not to apologize or interview the decedent because he was satisfied with the explanation that had been given to him. After his
In the circuit court, the plaintiff
The trial court also ruled that Officer Mero and the township were immune from suit.
The Court of Appeals, in an unpublished per curiam opinion, decided December 12, 1991 (Docket No. 112711), unanimously affirmed the jury verdict. It found that the plaintiff’s action was not barred by either the exclusive remedy or
ii
The defendant argues that it is error to allow a jury to combine the knowledge of disconnected facts possessed by individual employees and to impute this knowledge to a corporation to find it liable for intentional torts.
With regard to the issue of the knowledge of a corporation, the trial judge gave the following instruction:
A corporation is liable for the acts or failure to act of its officers, employees or agents, in the performance of their duties.
When a person representing a corporation is doing a thing which is in connection with and pertinent to that part of the corporation business which he is employed or authorized or selected to*363 do, then that which is learned or done by that person pursuant thereto, is in the knowledge of the corporation.
The knowledge possessed by a corporation about a particular thing is the sum total of all of the knowledge which its officers and agents were authorized and charged with the doing of a particular thing acquired, while acting under and within the scope of their authority. [Emphasis added.]
The plaintiff argues that this instruction is correct.
This Court has recognized the rule embodied in the trial judge’s instruction in Upjohn Co v New Hampshire Ins Co, 438 Mich 197; 476 NW2d 392 (1991). In Upjohn, the issue was whether the defendant was obligated to indemnify Upjohn for damages and expenses arising from leaks from underground storage tanks holding toxic chemicals. The specific question was whether the discharge of chemicals was "sudden” and "accidental” as required by the policy. This Court found that it was not and held that Upjohn should have expected that the tanks were leaking. We based this conclusion on the fact that Upjohn’s records indicated that readings on fluid levels in the tank showed levels that did not coincide with the amount of fluid being pumped into the tank. Id., pp 201-203. This Court found that, on the basis of these recorded fluid levels, Upjohn had sufficient information available to cause it to expect the release of chemicals from the tanks even though the reduced levels did not alone indicate a leak. Id., pp 212, 214. In support of this conclusion, we cited the rule that a corporation is held to possess the collective knowledge of its employees and that it cannot plead ignorance on the ground that no employee possessed all relevant knowledge so as to
This same rule has been applied by other courts to establish corporate criminal guilt. A leading case upon which we based our decision in Upjohn, is United States v TIME-DC, Inc, 381 F Supp 730 (WD Va, 1974). In TIME-DC, the defendant trucking company was charged with violating the Interstate Commerce Act, which prohibited drivers from operating a motor vehicle when their ability to drive was impaired. To prove a violation of this act, it was necessary to prove that the defendant acted knowingly and wilfully. The court held that the corporation was deemed to hold the collective knowledge of its employees. Id., p 738.. Thus, because various employees collectively held information that indicated that a certain employee would violate the law if he drove, the corporation was deemed to know this. Id., p 739. Furthermore, the court cited the proposition that a defendant is deemed to have knowledge of a regulatory violation if the means were present to detect the infraction. Id. The court also found that the defendant acted wilfully. First, it noted that in order to find a violation of a regulatory statute, it was not necessary to prove "an evil purpose or specific criminal intent in order to establish willfulness.” Id., p 740. Rather, it was enough to show that the defendant had disregarded the statute or was
In general, it is appropriate to consider the collective knowledge of a corporation to determine whether a corporate defendant has committed a crime. See United States v Bank of New England, 821 F2d 844, 856 (CA 1,1987), cert den 484 US 943 (1987),
The intent with which tort liability is concerned is ... an intent to bring about a result which will invade the interests of another in a way that the law forbids. [Prosser & Keeton, Torts (5th ed), § 8, P 36.]
The defining characteristic of an intentional tort is an awareness that the act is being committed and an intent to invade the interests of another. Proof of this awareness and intent does not necessarily follow from a showing that the corporation possessed knowledge.
We note that some courts have recognized the flaw in the logic of deeming a corporation to intend an act on the basis of collective knowledge. For example, the United States District Court for the Southern District of New York has held, with respect to a fraud claim, that a corporation only can be held to have a particular state of mind when it is possessed by an individual. First Equity Corp of Florida v Standard & Poor’s Corp, 690 F Supp 256, 260 (SD NY, 1988), aff’d 869 F2d 175 (CA 2, 1989). In United States v LBS Bank, 757 F Supp 496 (ED Pa, 1990), in determining whether a corporation was guilty of conspiracy to defraud the government, the United States District Court for
Furthermore, cases in which courts have imputed intent to a corporation support our conclusion. For example, in People v American Medical Centers, 118 Mich App 135, 140; 324 NW2d 782 (1982), a medical clinic was convicted of medical fraud. Although the Court noted the collective knowledge rule of TIME-DC, supra, and stated that the combined knowledge of the employees could be imputed to the corporation to find it liable for fraudulent acts, it based its conclusion on evidence that the individual employees intended to commit fraud. Id., p 156. In United States v Shortt Accountancy Corp, 785 F2d 1448 (CA 9, 1986), cert den 478 US 1007 (1986), the court affirmed an accounting firm’s conviction for making and subscribing false tax returns. It found that one employee who actually subscribed some of the returns did not have the intent to file a false return, but that another employee, who caused the first employee to do so, did have the requisite intent. That intent was imputed to the eorporation. Id., p 1454._
We do not find that the collective intent instruction is erroneous per se. Rather, we hold that it is erroneous to use it to find the defendant guilty of an intentional tort. In order to find that intentional torts have been committed, it must be shown that the tortfeasor has the necessary state of mind. Under the collective knowledge standard, we can conclude that the defendant corporation knew that Michael Ansara Adams was the real suspect because some of its employees were aware of this. We can conclude that it knew that the decedent was not the suspect for the same reason. However, we cannot deem the corporation to have possessed the necessary intent to have committed intentional torts on the basis of this logic.
Accordingly, while we recognize that the collective knowledge instruction may be appropriate in other contexts, such as when determining whether a corporation was negligent, or whether it committed a crime, we find that it is error to allow a jury to rely upon it to establish the state of mind requisite to the commission of an intentional tort of a corporation. We hold that intent to commit tortious acts cannot be imputed to a corpora
hi
The next question we must address is whether the exclusive remedy provision of the Workers’ Disability Compensation Act bars the plaintiff’s action. The defendant argues that the plaintiff’s suit should be barred by the wdca because the sole remedy for the injuries suffered by the decedent should be workers’ compensation benefits. The Court of Appeals found that the suit was not barred, both because the plaintiff had alleged intentional torts and because the decedent’s injuries did not arise "out of and in the course of” his employment. The wdca provides:
An employee, who receives a personal injury arising out of and in the course of employment by an employer who is subject to this act at the time of the injury, shall be paid compensation as provided in this act. [MCL 418.301(1); MSA 17.237(301X1). Emphasis added.]
In order for an injury to be compensable, it must arise out of and in the course of employment. If an injury does not, then it is not compensable under the workers’ compensation scheme. However, when an employee receives a personal injury during the course of his employment, the wdca is meant to be his sole remedy. The wdca further provides:_
*370 The right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer for a personal injury or occupational disease. [MCL 418.131(1); MSA 17.237(131)(1), 1987 PA 28, § 1. Emphasis added.]
This Court has stated that "the language [of the act] expresses a fundamental tenet of workers’ compensation statutes that if an injury falls within the coverage of the compensation law, such compensation shall be the employee’s only remedy . . . .” Farrell v Dearborn Mfg Co, 416 Mich 267, 274; 330 NW2d 397 (1982). See also Szydlowski v General Motors Corp, 397 Mich 356, 358; 245 NW2d 26 (1976).
A
The first issue to be addressed is whether the trial court had jurisdiction to determine that the exclusive remedy provision did not bar this suit on the basis that decedent’s injuries did not arise out of and in the course of his employment.
This Court has addressed this issue in Szydlow-ski, supra. While undergoing treatment for work-related injuries, the plaintiff in that case died as a result of drugs that were improperly administered by his employer. The Court held that whether the plaintiff’s death arose out of employment could only be determined by the workers’ compensation bureau. Id., p 359. Although this Court has narrowed the scope of this rule in subsequent cases, when the issue is whether injuries arose "out of and in the course of employment,” the rule remains unchanged: the bureau must make the initial determination. See Sewell v Clearing Machine Co, 419 Mich 56, 62; 347 NW2d 447 (1984); see also
The Court of Appeals has decided many cases that deal with this issue. It has been stated by more than one panel that in cases in which it is clear that the employer-employee relationship between the parties is unrelated to the cause of action, the cause of action may be commenced in circuit court without an initial determination by the bureau. See Genson v Bofors-Lakeway, 122 Mich App 470, 474; 332 NW2d 507 (1983).
The logic of the rule articulated by the Court of Appeals is appealing; however, we find it unnecessary to determine whether this Court should adopt it because it is unclear whether the injuries suffered by the decedent in this casé arose out of his employment. We observe that a nexus of some sort exists between the decedent’s injury and his employment. It is not for this Court to determine whether this nexus is sufficient to bring the injuries suffered under the coverage of the wdca. Under these circumstances, that determination must be made by the bureau.
The plaintiff asserts that the defendant should be estopped from claiming that the decedent’s injuries arose out of and in the course of employment and bases this argument on the fact that, while the decedent was on medical leave following
Equitable estoppel "arises when one by his acts, representations, or admissions, or by his silence when he ought to speak out, intentionally or through culpable negligence induces another to believe certain facts to exist and such other rightfully relies and acts on such belief, so that he will be prejudiced if the former is permitted to deny the existence of such facts.” Lichon v American Ins Co, 435 Mich 408, 415; 459 NW2d 288 (1990), quoting Fleckenstein v Citizens Mutual Automobile Ins Co, 326 Mich 591, 599-601; 40 NW2d 733 (1950). The United States Court of Appeals for the Sixth Circuit has stated that "[cjourts apply equitable estoppel to prevent a party from contradicting a position taken in a prior judicial proceeding.” Edwards v Aetna Life Ins Co, 690 F2d 595, 598 (CA 6, 1982).
B
This Court has determined, and our Legislature has expressly provided, that an employee’s suit against his employer for intentional tort is not precluded by the wdca. The question we must now address is whether the exclusive remedy bar applies in view of the circumstances presented. Section 13 of the wdca currently provides:
The right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer for a personal injury or occupational disease. The only exception to this exclusive remedy is an intentional tort. An intentional tort shall exist only when an employee is injured as a result of a deliberate act of the employer and the employer speciñcally intended an injury. An employer shall be deemed to have intended to injure if the employer had actual knowledge that an injury was certain to occur and willfully disregarded that knowledge. The issue of whether an act was an intentional tort shall be a question of law for the court. This subsection shall*374 not enlarge or reduce rights under law. [MCL 418.131(1); MSA 17.237(131X1), 1987 PA 28, §1. Emphasis added.]
This portion of the exclusive remedy provision was added in 1987. The provision was amended in response to this Court’s decision in Beauchamp v Dow Chemical Co, 427 Mich 1; 398 NW2d 882 (1986).
Beauchamp addressed for the first time the question whether the then-existing exclusive remedy provision of the wdca barred an employee’s action for an intentional tort. We found that it did not, and held that whether a tort was intentional was to be determined by applying the "substantial certainty” standard. Id., p 25. Under this standard, the employee had to show that the employer intended the act that caused the injury, and knew that injury was substantially certain to occur as a result of the act. Id., pp 21-22. In response, the Legislature amended the wdca, and supplied the language that currently exists. The amendment provides that intentional tort actions are not barred by the wdca, but also establishes a stricter test to determine whether an intentional tort has been committed: The employee must show that the employer not only intended the act that caused the injury, but that the employer specifically intended an injury. MCL 418.131(1); MSA 17.237(131)(1). However, an employer will be deemed to have intended an injury if it had actual knowledge that an injury was certain to occur and wilfully disregarded that knowledge. Id.
The cause of action in this case arose before these amendments were enacted. However, the plaintiff prevailed in both the circuit court and the Court of Appeals under the standard articulated in § 131, and only on appeal in this Court is it argued
The plaintiff alleged (1) that the defendant falsely accused the decedent of committing larceny through false pretenses and that it falsely imprisoned him, (2) that it maliciously prosecuted him, (3) that it intentionally inflicted emotional distress, and (4) that it was negligent, grossly negligent, and engaged in wilful and wanton misconduct. In support of count one, the plaintiff alleged that the defendant unjustly and falsely accused him of a crime and that it restrained and detained him against his will without reasonable cause. In support of count two, the plaintiff alleged that the criminal charges against him were malicious and without probable cause, and were dismissed in his favor. In support of count three, the plaintiff alleged that the defendant’s conduct was abusive and outrageous, and was an intentional invasion of his mental and emotional tranquility.
Although the plaintiff alleged intentional torts, the facts of this case, even taken in a light most favorable to the plaintiff, do not establish them. The plaintiff has not established that the defendant possessed the requisite state of mind. The plaintiff can show that the corporation had the knowledge that Michael Ansara Adams was the suspect in the fraudulent withdrawals. He can show that the corporation had the knowledge that Michael Bret Adams was not the suspect. However, it simply cannot be shown that the defendant corporation intended to provide the decedent’s name, and was substantially certain that injury would result, as Beauchamp requires. Id., pp 20-21. Nor can it be shown that the defendant corpora
The plaintiff urges, in the alternative, that the necessary state of mind can be found in individual employees of the defendant. The plaintiff introduced extensive evidence that showed that Mach had at some point been aware that the real suspect was a temporary employee named Michael Ansara Adams because she had reviewed the file and Michalski had described the investigation to her. Nevertheless, she retrieved the decedent’s phone number and address and gave it to the police. In addition, the plaintiff introduced evidence that, even though the decedent informed high-ranking employees of the defendant that he was not the culprit, and they had been apprised of, and had access to, information that confirmed his assertions, they still directed him to the West Bloomfield police. The plaintiff argues that this evidence demonstrates that these individual employees possessed the requisite state of mind to find that they committed intentional torts, and that that state of mind can be imputed to the corporation.
However, the plaintiff has failed to make a showing that any of these individuals had the requisite intent necessary to prove the commission of intentional torts. As we noted, under Beau-champ, to overcome the exclusive remedy bar, it must be shown that the defendant intended the act that caused the decedent’s injuries, and was substantially certain that injury would result from that act. Under § 131, as amended, it would have to be shown that the defendant committed a deliberate act, knowing that injury would result, and
The act that set the events in motion that caused the decedent’s injuries was providing his phone number and address to the police. While the evidence clearly shows that Mach intended to give a name to the police, there is no evidence that she intended to give the decedent’s name.
Although the plaintiff presented evidence that Mach had been informed that the actual suspect was a contract employee, and had been given other information that should have alerted her that she was providing information about the wrong person, plaintiff did not show that Mach was aware of this fact when she gave the information to the police.
We acknowledge that the plaintiff presented evidence from which the jury was entitled to infer that Mach had the file with all the information in front of her when she was speaking to Officer Mero. However, we find this inference alone insufficient to sustain a finding that she intentionally provided the decedent’s name with the awareness that he was not the target of the investigation. Contrary to the assertions of Justice Mallett, we do not suggest that in order for a person to commit an intentional tort, the person must "intend or desire the explicit or precise outcome that arises from his tortious act.” Ante, p 350. How
We note that plaintiff presented evidence that Mach intentionally violated the nbd policy governing disclosure of evidence to the police when she obtained the decedent’s phone number and address from the personnel records. However, contrary to the assertions of Justice Mallett, this alone is not proof that she committed an intentional tort. Although such a policy is designed in part to prevent erroneous arrests like that in this case, the fact that Mach intentionally violated it still is not sufficient to make the necessary showing. Arguably, she should have been aware of the possibility that something like this could happen if she gave out information without the file. However, demonstrating a violation of the policy does not amount to a showing that she was substantially certain, or was actually certain and wilfully disregarded the knowledge that the decedent’s injuries would result from that violation. Violating a policy like this one alone cannot be the basis for intentional tort liability. If a person intentionally breaks the speed limit while driving on a wet road and then collides with another car, he has not committed an intentional tort, even though he has intentionally broken the law. In such a situation, although the driver should be aware that speed limits are designed in part to prevent accidents, and that accidents are likely to occur when drivers speed on wet roads, the outcome is not so certain that the
Nor does the evidence establish that Schwaller or Wolfe committed intentional torts. Although the plaintiif presented evidence that they had access to information that showed that the decedent was not the suspect in the case, and that they were informed by the decedent that he was innocent, there is no evidence that, at the time they directed him to the police station, they were aware that he was not the actual suspect. The evidence does not indicate that they sent him to the police with the intent that he be wrongfully arrested, or that they had any idea that he would be injured by their actions, let alone that they had any certainty that he would be. Indeed, with regard to all the employees in question, the evidence strongly indicates that the only reason this erroneous arrest ever occurred is that the employees of the defendant did not realize the mistake they were making. The evidence shows that nbd’s employees made errors, albeit grave ones with tragic consequences. Although arguably the plaintiif presented evidence that proved that these employees were negligent, he presented evidence insufficient
Justice Mallett asserts that the "corporation’s decision to erect a wall of silence around Mr. Adams was without question an intentional act.” Ante, p 352. The only evidence of such a decision is Schwaller’s statement that he was instructed not to apologize to the decedent because the decedent was satisfied with the explanation that had been given to him. Indeed, Schwaller testified that he did not apologize. In addition, both Michalski and Mach testified that they did not apologize. However, Cynthia McCree, an assistant manager, and Jean Ristagno, her superior, both testified that they and other employees of the defendant made many attempts to comfort and reassure the decedent, both before and after the arrest. Although some employees of the defendant did not apologize, it is a mischaracterization of the evidence to suggest that there was a wall of silence around the decedent. Furthermore, while it is certainly insensitive and foolish for the defendant not to have offered a formal apology to Michael Adams, this failure, which is essentially a passive response, cannot fairly be characterized as an act that is substantially certain to result in the kind of severe emotional distress that the decedent ultimately suffered.
Justice Levin asserts that the exclusive remedy provision of the wdca does not bar the plaintiff’s false imprisonment claim. He opines that the wdca only applies to physical and mental injuries. Ante, p 334. He further asserts that the basis of a false imprisonment claim, interference with the liberty interest, is neither a physical nor mental injury. Thus, he concludes that it is not covered by the wdca. Ante, p 336.
Furthermore, the authorities that Justice Levin cites in support of these propositions are not persuasive. We decline to follow the decisions of our sister state courts, interpreting their own workers’ compensation statutes, on this particular issue. In support of his conclusion that an action for false imprisonment is not barred by the wdca, Justice
Nor do we find the reasoning of Moore v Federal Dep’t Stores, 33 Mich App 556; 190 NW2d 262 (1971), persuasive. Moore predated not only the current amendment of the exclusive remedy provision, but also this Court’s opinion in Beauchamp, supra. Our Beauchamp decision was intended to clear up the confusion surrounding the issue whether suits for intentional torts were barred by the wdca. A number of Court of Appeals cases predating Beauchamp, including Moore, had addressed this issue, with mixed and conflicting results.
Further, we question whether it is correct to conclude that the injury underlying a false arrest claim is not covered by the wdca. There is no language in the statute that compels such an interpretation. No cases from this Court have so held, and we decline to do so in this case. It would be a remarkable pronouncement that a test that is currently based on the state of mind of the perpetrator should be converted to a test that is based upon the nature of the injury.
IV
Accordingly, we hold that, in determining whether a corporation has committed an intentional tort, the collective knowledge of the corporation’s employees cannot be amalgamated to establish the requisite intent, when no employee or agent possesses that state of mind. The evidence did not establish that any employee possessed the requisite state of mind; thus, the trial court erred in finding that the exclusive remedy provision of the wdca did not bar this action. Furthermore, we hold that the lower courts did not have jurisdiction to determine whether the decedent’s injuries arose out of and in the course of employment. Thus, they erred in exercising jurisdiction over the plaintiff’s tort claims, in the absence of a finding by the wcab that the injuries did not arise out of and in the course of employment. Therefore, we reverse the decisions of the Court of Appeals and the trial court, and remand the case to the circuit court for proceedings consistent with this opinion.
My agreement is based upon my belief that MCL 418.131; MSA 17.237(131), as amended by 1987 PA 28, is to be given prospective application.
The bank on occasion hired employees on a temporary basis to perform certain services from a company called Arrow Temporary Services. Michael Ansara Adams was one of those persons paid, not by the bank, but by the agency, and for whom the bank did not maintain a personnel file.
Physical descriptions were given of Mr. Adams that showed he was well over six feet tall and weighed about 160 pounds. His home address was known as well as his birthday, phone number, and social security number.
The stamp indicates that Ms. Mach should have reviewed the entire file. Thus, had Ms. Mach followed bank procedures and reviewed the entire file, she would have been aware that the perpetrator of the fraudulent withdrawals was a contract employee, not a full-time employee of nbd.
Nbd’s written procedures provide the following:
When nbd is the complainant in a criminal prosecution, any records or documents needed by law enforcement personnel for successful prosecution can be and should be provided by the investigator assigned to the investigation without being served with a subpoena. However, when it is necessary for nbd to produce records or documents relating to legal proceedings, where nbd is not the complainant, a subpoena must be served on nbd through the NBD Law Department. Subpoenas will be accepted if mailed.
It has long been established that a wrongdoer takes an injured person as he finds him, and, that, if the defendant’s wrongful conduct is proved by a preponderance of the evidence to be the proximate cause of the aggravation of a latent disability, he is liable for such aggravation regardless of whether he had knowledge of the disability. McNabb v Green Real Estate Co, 62 Mich App 500, 518; 233 NW2d 811 (1975), citing as supporting authority Schwingschlegl v City of Monroe, 113 Mich 683; 72 NW 7 (1897).
Three of Mr. Adams’ superiors, supervisor Hazel Kemp, vice president Jean Ristagno, and assistant manager Cynthia McCree, testified that they were aware that Mr. Adams was on a medical leave and was receiving treatment for his depression regarding his arrest.
See post at 360.
False Imprisonment
(1) An actor is subject to liability to another for false imprisonment if
(a) he acts intending to confine the other or a third person within boundaries fixed by the actor, and
(b) his act directly or indirectly results in such a confinement of the other, and
(c) the other is conscious of the confinement or is harmed by it. [i Restatement Torts, 2d, § 35, p 52.]
In Roberts, this Court set forth the definition for a tort:
(1) "extremely and outrageous” conduct,
(2) intent or recklessness,
(3) causation, and
(4) "severe emotional distress.” [Id. at 602.]
Thus, the plaintiff was required to prove by a preponderance of the evidence: (1) that nbd’s conduct was extreme and outrageous, (2) that nbd’s acts were intentional or reckless, (3) that such conduct of nbd was a proximate cause of Michael Adams’ emotional distress, and (4) that Michael Adams suffered severe emotional distress.
Justice Brickley does not dispute the severity of the defendant’s
The remaining issues are: (3) whether the plaintiff can recover
Loss prevention files were organized numerically. In addition, the department kept a file of index cards to cross index them. There were two index cards for each investigation: One contained the name of the owner of the account that had been robbed and the other, the name of the alleged perpetrator. Both had the number of the loss prevention case. Michalski testified that, unless someone in the department was working with the cards or the file, they always were to be kept in the file cabinets. He concluded that, unless procedures were being violated, the file or the cards had to be either in the file cabinet or on the desk of the investigator or one of the five secretaries.
There was evidence presented that Mach actually may have had the loss prevention file in front of her when she was talking to Officer Mero. One page in the loss prevention file contains the decedent’s home phone number, which had been partially scratched out. The plaintiff argued that because Mach was the only one who ever confused the two Michael Adams’, she is the only one who would have written the phone number in the file. They argue that the presence of this phone number in the file implies that Mach had the file in front of her while talking to Mero.
She testified that she did not "sit down and read every item in the file .... [T]hat would be impossible with the case load I have.”
Schwaller also testified that he had been aware of the investigation since it began, and that the actual suspect was a contract employee who worked in the transportation department. However, he testified that he did not remember this when Wolfe called him.
These other employees were Cynthia McCree, the assistant manager, her superior Jean Ristagno, the shift officer, and Connie Rumps, another assistant manager.
This action was initially commenced by the decedent. After the decedent’s death, his father, Amos Adams, continued the action in his name, along with a wrongful death claim.
The jury awarded damages of $253,154.41 to the estate, $540,000 to Geraldine Adams, the decedent’s mother, $236,000 to his father, and $250,000 each to Roshone and Walter Adams, the decedent’s brothers.
The trial court found that the township and Officer Mero were immune on September .27, 1985. The Court of Appeals affirmed this decision in an unpublished opinion (Docket Nos. 89523 and 89594). This Court denied leave to appeal the decision, 428 Mich 904 (1987), with Justices Archer and Levin showing that they would grant leave.
The plaintiff claims that this alleged error was not preserved for review. It is undisputed that the defendant objected to the instruction; however, the plaintiff argues that that the objection was made on incorrect grounds. We find that it is unnecessary to determine whether the error was properly preserved. While appellate review of such an error is usually foreclosed, such an error may be reviewed to prevent manifest injustice. The trial judge’s instruction, summarized below, would have allowed the jury to find that a corporation can be deemed to possess a certain state of mind based on imputed, disconnected facts. Because this is one of the most fundamental and control
In support of its argument, the defendant cites Smith v General Motors Corp, 192 Mich App 652; 481 NW2d 819 (1992). In Smith, the decedent was killed by a malfunctioning machine at the defendant’s plant. The plaintiff presented evidence that various employees knew that the machine needed to be modified to be operated safely and that it had not been modified. However, no employee had all of this information. Id., pp 655-656. The plaintiff claimed that the defendant had committed an intentional tort. She claimed that, because the corporation is charged with the combined knowledge of its employees, its failure to correct the defect in the machine constituted wilful disregard. The Court of Appeals acknowledged that the combined knowledge of corporate employees may be imputed to a corporation, citing Upjohn Co v New Hampshire Ins Co, 438 Mich 197; 476 NW2d 392 (1991). However, the Court stated that finding that the corporation possessed a state of mind that satisfies the standard of § 131 required more than a showing of knowledge or notice. It held:
A corporation may be liable for an intentional tort. To ñnd the requisite intent, however, there must be a human who acted with that intent in order to hold the corporation responsible. . . . Plaintiff’s analysis fails to consider the fact that no employee of defendant had the requisite state of mind that could be imputed to defendant. [Id., p 657. Emphasis added. Citation omitted.]
Defendant argues that this statement of the law is correct.
The Court of Appeals has also recognized and applied this rule. See, e.g., People v American Medical Centers, 118 Mich App 135; 324 NW2d 782 (1982); Gordon Sel-Way, Inc v Spence Bros, Inc, 177 Mich App 116; 440 NW2d 907 (1989), aff’d in part and rev’d in part on other grounds 438 Mich 488; 475 NW2d 704 (1991).
The trial judge based his instruction on language from Copeman Laboratories Co v General Motors Corp, 36 F Supp 755, 762 (ED Mich, 1941). In Upjohn, p 214, we relied upon the same case.
In Bank of New England, the bank was convicted of violating the Currency Transaction Reporting Act by failing to report lump-sum transfers of cash that exceeded $10,000. In order to show a violation, it had to be proven that the defendant knowingly and wilfully violated the act. The trial judge instructed the jury that knowledge could be proven either by showing that one employee knew of the reporting requirements or by showing that one employee knew one facet of the requirements, and others knew other facets, and thus that, combined, they were aware of the reporting requirements. Further, the judge instructed that the bank could be found to have acted wilfully if any employee acted wilfully, or if the bank as an organization consciously avoided learning about and observing the act’s requirements, and avoided informing its employees of its requirements. Id., p 855. The court approved the trial judge’s instructions, finding that the collective knowledge instruction was appropriate. Further, it approved the instruction regarding intent, noting that wilfulness in the context of federal statutory violations could be shown by demonstrating indifference to the requirements. Id. However, the court ultimately found sufficient evidence that the bank had acted wilfully on the basis of evidence that individual employees acted wilfully. Id., p 857.
It is now well settled that a corporation may be liable for a malicious tort or wrongful act of its officer or agent. These authorities repudiate the view that a corporation, being an artificial person, could not act from malice or have a malicious or other intent and therefore could not be liable for a tort which required a motive and intention. The malice of the corporation consists of the motives which prompt the action of its representatives; the requisite state of mind must necessarily be that of its employee or agent. [18B Am Jur 2d, Corporations, § 2129, pp 950-951.]
While we acknowledge that, under some circumstances, a corporation may be liable for the intentional torts committed by its agents, because this case does not present such' a situation, we decline to determine what fact situations would lead to such a conclusion.
In Sewell, a question arose regarding whether the defendant was actually the plaintiff’s employer, and thus able to invoke the exclusive remedy provision of the wdca. This Court held that the circuit court had jurisdiction to make this determination. Id., p 58. Although Sewell acknowledged Szydlowski, and the rule articulated therein, it held that the courts still have the power to decide more "fundamental issue[s],” such as whether the parties are employers or employees. Id., p 62.
Overruled on other grounds in Beauchamp v Dow Chemical, 427 Mich 1; 398 NW2d 882 (1986), discussed infra, pp 374-376.
The Edwards court was explicitly applying estoppel principles embodied in federal law. Edwards, p 598, n 4. However, this Court has cited the Edwards court’s definitions of the various kinds of estoppel with approval. See Lichon, supra, p 416.
Justice Mallett asserts that "a jury may reasonably infer from the facts that Mach knowingly and intentionally gave out erroneous information because she knew that the suspect was a temporary employee.” Ante, p 351. On the contrary, we find that such an inference is unreasonable in the absence of any evidence of a possible motive for such an act or even any evidence that Mach knew who the decedent was.
As one commentator notes, "The line [between intent and negligence] has been drawn by the courts at the point where the known danger ceases to be only a foreseeable risk which a reasonable person would avoid, and becomes in the mind of the actor a substantial certainty.” Prosser, supra, p 36.
The exclusive remedy provision that was in effect at the time of the events in question provided that "[t]he right to the recovery of benefits as provided in this act, shall be the employee’s exclusive remedy against the employer.” MCL 418.131; MSA 17.237(131), as added by 1969 PA 317. As discussed above, this Court, in Beauchamp, supra, interpreted this section as not barring actions for intentional torts. The Beauchamp Court described an intentional tort as resulting when an employer intends an act that causes an injury, and knows that injury was substantially certain to occur as a result of the act. Beauchamp, supra, pp 21-22.
Howland v Balma, 143 Cal App 3d 899; 192 Cal Rptr 286 (1983).
Battista v Chrysler Corp, 454 A2d 286, (Del Super, 1982).
Foley v Polaroid Corp, 381 Mass 545; 413 NE2d 711 (1980).
Mounteer v Utah Power & Light Co, 823 P2d 1055 (Utah, 1991).
See Cal Labor Code 3602; 19 Del Code Ann 2304; Mass Gen Laws Ann, ch 152, § 23; Utah Code Ann 35-1-60.
See Beauchamp, supra at 11, and the cases cited therein.
The part of the act relied upon by the Moore Court was superseded by the exclusive remedy provision that was in effect at the time the decision in Beauchamp, supra was rendered. 1969 PA 317. See also n 22.
Reference
- Full Case Name
- Adams v. National Bank of Detroit
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