Hinkle v. Wayne County Clerk

                                                                       Michigan Supreme Court
                                                                       Lansing, Michigan 48909
____________________________________________________________________________________________
                                                                  Chie f Justice                   Justices
                                                                  Maura D. Corrigan                Michael F. Cavanagh




Opinion
                                                                                                   Elizabeth A. Weaver
                                                                                                   Marilyn Kelly
                                                                                                   Clifford W. Taylor
                                                                                                   Robert P. Young, Jr.
                                                                                                   Stephen J. Markman
____________________________________________________________________________________________________________________________

                                                                                   FILED DECEMBER 10, 2002





                GARY HINKLE, Executor of the Estate

                of MARILYN J. HINKLE-CALCUTT,


                         Plaintiff,


                v                                                                                  No. 119566


                WAYNE COUNTY CLERK, COUNTY OF WAYNE,

                and WAYNE COUNTY COMMISSION,


                         Defendants/Third-Party

                         Plaintiffs/Appellees,


                v


                BILLY CALCUTT,


                         Third-Party Defendant, 


                and


                RANDALL WOKAS,


                     Third-Party Defendant-

                     Appellant. 

                ________________________________

                PER CURIAM


                         This appeal arises from postjudgment proceedings in a


                dispute over a partial refund owed by a hospital that was

overpaid for the care of plaintiff’s decedent, Marilyn J.


Hinkle-Calcutt.


       We hold that MCR 2.614(A)(1), commonly described as the


automatic stay provision, does not apply to voluntary payments


in satisfaction of a judgment.                 Therefore, we reverse the


judgment of the Court of Appeals to the extent that it holds


to the contrary.




                                          I


       While the plaintiff’s decedent was a patient at Harper-


Grace       Hospital,     two   insurance      companies    made    duplicate


payments for her care.             Harper-Grace was prepared to issue a


refund, but her surviving spouse, Billy J. Calcutt, and the


executor of her estate, Gary Hinkle, could not agree on which


of them should receive the money.1             Rather than choose between


Calcutt and Hinkle, the hospital deposited the disputed funds


with       the   Wayne    County   Clerk.      Calcutt    sued,    and    Hinkle


intervened.          In    1989,    the   trial   court    granted       summary


disposition against Hinkle and awarded the funds to Calcutt.2


        Hinkle appealed to the Court of Appeals. However, he did


not attempt to obtain a stay of execution from the trial



       1
      The coverages were not coordinated, so the refund would

not be to the insurers.

       2
      The full procedural history of this decade-old dispute

is quite complex. For present purposes, we are describing

only those portions that are pertinent to today’s issue.

Neither do we address the merits of the underlying controversy

regarding whether the refund should go to Hinkle or Wokas.


                                          2

court. 


      After entry of the order of summary disposition, the


county clerk asked Calcutt’s attorney, Randall Wokas, when he


would withdraw the funds.              Thereafter, Wokas removed the


funds, before the expiration of the twenty-one-day automatic


stay under MCR 2.614(A)(1).3


        The Court of Appeals reversed the trial court’s judgment,


and ordered that the funds be divided between Hinkle and


Calcutt.      Hinkle, however, was unable to obtain the estate’s


share of the funds because the county clerk had previously


disbursed them to Wokas.


        At that point, Hinkle filed the instant suit against the


Wayne      County   Clerk,   Wayne    County,     and   the       Wayne   County


Commission, alleging that the county had improperly disbursed


the   money.4       The   county     defendants    filed      a    third-party


complaint against Calcutt and Wokas, contending, in part, that


they acquired the funds in violation of MCR 2.614(A)(1).


Wokas moved for summary disposition under MCR 2.116(C)(7),


arguing that the county defendants’ active fault precluded


their recovery.        The trial court, on reconsideration of an


earlier ruling, granted Wokas’ motion for summary disposition.


        The county defendants appealed and Wokas cross-appealed.



      3

        Wokas’ removal of the funds spawned contempt

proceedings detailed in In re Contempt of Calcutt, 184 Mich

App 749; 458 NW2d 919 (1990).

      4
       Hinkle ultimately entered into a settlement agreement

with the county defendants.


                                      3

The Court of Appeals reversed the trial court decision that


granted summary disposition to Wokas.5


      Wokas has applied to this Court for leave to appeal.


                                 II


      A trial court’s decision to grant or deny a motion for


summary disposition is a question of law that we review de


novo. Veenstra v Washtenaw Country Club, 466 Mich 155, 159;


645 NW2d 643 (2002).      The interpretation of a court rule is


likewise a question of law and is reviewed de novo.              CAM


Construction v Lake Edgewood Condominium Ass’n, 465 Mich 549,


553; 640 NW2d 256 (2002). 


                                 III


      This Court applies principles of statutory interpretation


to the interpretation of court rules.           When the language is


unambiguous, we must enforce the meaning plainly expressed,


and   judicial    construction   is     not   permitted.   Grievance


Administrator v Underwood, 462 Mich 188, 193-194; 612 NW2d 116


(2000). 


                                 IV


      The issue presented is whether the county defendants


violated MCR 2.614(A)(1) by voluntarily disbursing the funds


during the twenty-one-day automatic stay of execution provided


by the court rule.    The trial court agreed with Wokas that the


county did not wrongfully distribute the funds, but the Court




      5
          245 Mich App 405; 631 NW2d 27 (2001).


                                 4

of Appeals held to the contrary.          That Court determined that


Wokas’ knowledge that a claim of appeal had been filed, and


that an informal request had been made to maintain the funds


in the clerk’s office, rendered Wokas responsible for the


unavailability of funds to satisfy the judgment after the


appellate decision in Hinkle’s favor.              The Court of Appeals


charged Wokas with notice of MCR 2.614(A)(1), the provision


for an automatic stay of execution pending appeal.             Thus, the


Court found that Wokas was responsible for the funds having


been mistakenly paid to Calcutt and Wokas.6


       The Court of Appeals erred in finding a violation of the


automatic twenty-one-day stay provided by MCR 2.614(A)(1).


That    paragraph      precludes   execution   on     a   judgment,   not


voluntary payment by a party willing to satisfy a judgment.


Nothing in the plain language of the rule restrains a party


liable for a judgment and the party entitled to satisfaction


of   the    judgment    from    expediting   the    resolution   of   the


litigation by effecting payment without resorting to formal


methods of execution.          MCR 2.614(A)(1) states: 


            Except as provided in this rule, execution may

       not issue on a judgment and proceedings may not be

       taken for its enforcement until the expiration of

       21 days after its entry.      If a motion for new

       trial, a motion to alter or amend the judgment, a

       motion for judgment notwithstanding the verdict, or

       a motion to amend or for additional findings of the

       court is filed and served within 21 days after

       entry of the judgment, execution may not issue on



       6

       The trial court had limited Wokas’ liability to

$23,500, the amount that he collected as attorney fees. 


                                     5

       the judgment and proceedings may not be taken for

       its enforcement until the expiration of 21 days

       after the entry of the order on the motion, unless

       otherwise ordered by the court on motion for good

       cause. Nothing in this rule prohibits the court

       from enjoining the transfer or disposition of

       property during the 21-day period.


The language of the rule expressly limits execution on a


judgment, not voluntary payments.          Because this case involved


a voluntary payment, the rules governing execution were not


applicable.7


       The Court of Appeals reliance on the proceedings in In re


Calcutt was misplaced.          In that case, the Court of Appeals


expressly       stated   that   the    purported   violation   of   MCR


2.614(A)(1) was not dispositive of the claim that Wokas and


Calcutt violated an order of the Court of Appeals.             Id. at


755.        The comments of the Court in Calcutt regarding the


effect of MCR 2.614(A)(1) were dicta. Neither MCR 2.614(A)(1)


nor MCL 600.6001 et seq. prohibited voluntary compliance with


the trial court’s order granting summary disposition in favor


of Calcutt.      Hinkle failed to obtain an order to preserve the


status quo and cannot now complain that the status quo was not


maintained.





       7

       Execution refers to the coercive process for the

collection of judgments. Regulations on coercive collection

are imposed because direct attachment of a debtor’s property

is disfavored. George v Sandor M Gelman, PC, 201 Mich App

474, 477; 506 NW2d 583 (1993).    Chapter 60 of the Revised

Judicature Act, MCL 600.6001 et seq., regulates the

involuntary payment of judgments.


                                      6

                              V


     We reverse the judgment of the Court of Appeals insofar


as it reversed the order of summary disposition in favor of


Wokas.   The county clerk’s voluntary payment of the judgment


was not contrary to MCR 2.614(A)(1).   We therefore reinstate


the trial court order granting summary disposition for Wokas.


     In light of our resolution of this issue, we find it


unnecessary to reach the remaining claims.


                               Maura D. Corrigan

                               Elizabeth A. Weaver

                               Clifford W. Taylor

                               Robert P. Young, Jr.

                               Stephen J. Markman





                              7

                 S T A T E    O F    M I C H I G A N


                             SUPREME COURT





GARY HINKLE, executor of the estate
of MARILYN J. HINKLE-CALCUTT,

      Plaintiff,

v                                                           No. 119566

WAYNE COUNTY CLERK, COUNTY OF WAYNE,
and WAYNE COUNTY COMMISSION,

      Defendants/Third-Party
      Plaintiffs/Appellees,

v

BILLY CALCUTT,

      Third-Party Defendant,

and

RANDALL WOKAS,

     Third-Party Defendant-
     Appellant.
___________________________________

KELLY, J. (dissenting).

      I   believe   that   this     case   is   not   appropriate   for

disposition by per curiam opinion.              Whether the Court of

Appeals correctly construed MCR 2.614 is a question of some

significance, not only to the parties, but to the bench and


the bar in general. Full briefing and oral argument would aid


the Court greatly in analyzing and resolving the complex


issues presented.   Therefore, I would not resolve this matter


by per curiam opinion, but would grant leave to appeal.


                               Marilyn Kelly

                               Michael F. Cavanagh





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