Kootsillas v. City of Riverview

Sawyer, J.

(dissenting). I respectfully dissent.

The principal plaintiff, Jimmie Coleman, an employee of Waste Management Company, was injured in the course of his employment as a garbage truck operator while at a landfill operated by third-party defendant, City of Riverview. At issue here is whether Riverview is entitled to governmental immunity for the claims arising against it out of the operation of the landfill. Both parties raise as issues whether the operation of the landfill constituted a governmental function, thus entitling Riverview to the protections of governmental immunity, and whether operation of the landfill constituted a proprietary function, thus negating Riverview’s entitlement to governmental immunity. Additionally, Riverview also raises the issue whether the trial court erred in denying its request to amend its answer to add a third-party complaint against plaintiffs employer for purposes of invoking an indemnification clause.

With respect to the governmental immunity question, I am not persuaded that the trial court erred in holding that Riverview was entitled to the protections of governmental immunity in this case. A governmental agency is immune from tort liability when it is engaged in the exercise or discharge *575of a governmental function. MCL 691.1407(1); MSA 3.996(107X1). Furthermore, a governmental function is an activity that is expressly or impliedly authorized or mandated by law. MCL 691.1401(f); MSA 3.996(101)(f). City councils are specifically authorized by statute to establish and maintain garbage systems or plants for the collection and disposal of garbage. MCL 123.261; MSA 5.2681. Therefore, because operation of a garbage disposal system is expressly authorized by law, Riverview was engaged in a governmental function in operating the landfill and, therefore, entitled to governmental immunity.

Third-party plaintiff nevertheless argues that Riverview is not entitled to governmental immunity because the manner in which the landfill was operated constituted the exercise of a proprietary function rather than strictly a governmental function. Under MCL 691.1413; MSA 3.996(113), a governmental agency is not entitled to the protection of governmental immunity if it is engaged in a proprietary function. A proprietary function is defined by the statute as any activity that is conducted primarily for the purpose of producing a pecuniary profit for the agency, excluding those activities normally supported by taxes or fees. Riverview concedes that the landfill is operated to produce a profit, apparently achieved by allowing use of the landfill, for a fee, by other municipalities and private customers. Riverview maintains, and the trial court agreed, however, that the proprietary function exception does not apply because the activity is nevertheless one normally supported by taxes or fees. I agree.

Municipalities are authorized by statute to levy a tax, not to exceed three mills, known as a garbage tax, to pay for the collection and disposal of garbage in the city or village. MCL 123.261; *576MSA 5.2681. In order for an activity to be deemed a proprietary function it must, inter alia, be an activity that cannot normally be supported by taxes or fees. Hyde v Univ of Michigan Bd of Regents, 426 Mich 223, 258; 393 NW2d 847 (1986). Since the operation of a garbage disposal plant or system can be supported by taxes or fees, River-view’s operation of the landfill cannot be deemed a proprietary function.

For the above reasons, I would conclude that the trial court correctly determined that Riverview was entitled to the protections of governmental immunity and, therefore, properly granted summary disposition in favor of Riverview.

I would affirm.