AFSCME v. City of Detroit

Decision Date28 September 2005
Docket NumberDocket No. 253592.
Citation267 Mich. App. 255,704 N.W.2d 712
PartiesAMERICAN FEDERATION of STATE, COUNTY and MUNICIPAL EMPLOYEES ("AFSCME") Michigan Council 25, AFSCME Local 214, AFSCME Local 312, and Leamon Wilson, Plaintiffs-Appellees/Cross-Appellants, v. City of DETROIT, Mayor of the City of Detroit, Wayne County Executive, Macomb County Board of Commissioners Chairperson, Oakland County Executive, Regional Transit Coordinating Council, and Suburban Mobility Authority for Regional Transportation, Defendants-Appellants/Cross-Appellees.
CourtCourt of Appeal of Michigan — District of US

Martens, Ice, Klass, Legghio & Israel, P.C. (by Renate Klass), Royal Oak, for American Federation of State, County and Municipal Employees Michigan Council 25, AFSCME Local 312, AFSCME Local 214 and Leamon Wilson.

Bellanca, Beattie & De Lisle, PC (by James C. Zeman), Harper Woods, for the city of Detroit and the Mayor of the city of Detroit.

Wayne County Corporation Counsel (by Azzam E. Elder and Nancy Rade), Detroit, for the Wayne County Executive.

Miller, Canfield, Paddock and Stone, PLC (by Joseph F. Galvin, Michael P. McGee, and Matthew P. Allen), Detroit, for the Regional Transit Coordinating Council, the Macomb County Board of Commissioners Chairperson, and the Oakland County Executive.

Avery E. Gordon and Zausmer, Kaufman, August & Caldwell, PC (by Mark J. Zausmer), Detroit, Farmington Hills, for the Suburban Mobility Authority for Regional Transportation.

Before: FORT HOOD, P.J., and GRIFFIN and DONOFRIO, JJ.

PER CURIAM.

This litigation arises out of an attempt by the leaders of three counties in the Metropolitan Detroit area, acting in concert with the mayor of the city of Detroit, to create a transit system entitled Detroit Area Regional Transportation Authority (DARTA) to serve the tri-county area. Plaintiff labor unions and individual plaintiff Leamon Wilson (plaintiffs)1 filed a complaint challenging the creation of DARTA. Plaintiffs named the corporate entities that comprised DARTA as defendants: the Regional Transit Coordinating Council (RTCC), an entity created by statute to collect funds and coordinate transit services; and Suburban Mobility Authority for Regional Transportation (SMART), the current operating transit system. Plaintiffs also named the leaders of the counties involved in the creation of DARTA, the Oakland County Executive, the Wayne County Executive, the chairperson of the Macomb County Board of Commissioners, and the mayor of the city of Detroit. After entertaining oral argument on the cross-motions for summary disposition on multiple occasions and after ordering supplemental briefing, the trial court essentially concluded that the RTCC did not have the authority to participate in DARTA and that any involvement with DARTA was effectively invalidated. However, the trial court declined the invitation to declare the entire DARTA agreement null and void. We affirm the trial court's conclusion that the RTCC was not entitled to transfer its powers to DARTA, and we reverse the trial court's conclusion that the DARTA agreement could be severed. On January 12, 1989, the mayor of the city of Detroit, the chairperson of the Macomb County Board of Commissioners, the Oakland County Executive, and the Wayne County Executive adopted articles of incorporation for the Regional Transit Coordinating Council premised on the statutory authority found in MCL 124.404a. The articles of incorporation provided that the purposes of the RTCC were: (a) to establish and direct public transportation policy within its designated area; (b) to apply for and distribute grants; (c) to adopt transportation plans and coordinate service functions; and (d) to conduct all activities and exercise all powers authorized by the act. Article IV provided that each member of the RTCC shall have one vote in all matters before the council, and any action was to occur by unanimous vote of all four members. Additionally, a council member could not designate another representative to serve in his or her place on the council.

In the spring of 2003, the RTCC, SMART, and the city of Detroit proposed an interlocal and intergovernmental agreement designed to create DARTA, the Detroit Area Regional Transportation Authority, a Michigan public body corporate. The agreement proposed that the parties utilize existing constitutional and statutory law to establish more effective and efficient public transportation services. The agreement provided, in relevant part:

Under this agreement the Parties agree to transfer to DARTA such existing powers, duties, functions, responsibilities and authority possessed by one or more of the Parties believed essential to the provision of quality public transportation services.
Under this agreement DARTA may not and shall not levy taxes and DARTA may not and shall not bind any unit of state, county, city, township or village government to any obligation without the express consent of the individual unit.

Although the articles of incorporation of the RTCC provided for four members, each receiving an individual vote to make unanimous decisions, the DARTA agreement modified the manner in which the authority's board would operate. The DARTA agreement provided that additional board members would be appointed by the original four executives and would operate by majority vote. The authority's board also was responsible for the selection and retention of a chief executive officer. Moreover, there was no indication that the RTCC would continue to exist upon execution of the DARTA agreement. This agreement provided that the RTCC would transfer "any other authority, powers, duties, functions and responsibilities of the RTCC necessary to implement this Agreement."

Plaintiffs filed suit to preclude the transfer of authority by the RTCC to DARTA. It was alleged that defendant RTCC lacked the authority to enter into an interlocal agreement based on the Urban Cooperation Act (UCA), MCL 124.501 et seq., because the RTCC was not a public agency for the purposes of the UCA. Additionally, plaintiffs alleged that DARTA was not formed in compliance with the intergovernmental transfers of functions and responsibilities act (ITFRA), MCL 124.531 et seq., because the RTCC was not a political subdivision as contemplated by that statute.2 Because the transfer of authority of the RTCC was not appropriate, plaintiffs alleged that the RTCC could not transfer its functions to DARTA. The trial court agreed and denied defendants' motion for summary disposition. However, on the basis of severability provisions contained in the agreement, the trial court rejected plaintiffs' further assertion that the entire DARTA agreement was null and void.

This litigation requires us to apply the rules of statutory construction, the standard for granting summary disposition, and the rules of contract construction. Issues of statutory construction present questions of law that are reviewed de novo. Cruz v. State Farm Mut. Auto. Ins. Co., 466 Mich. 588, 594, 648 N.W.2d 591 (2002). The goal of statutory construction is to discern and give effect to the intent of the Legislature by examining the most reliable evidence of its intent—the words of the statute. Neal v. Wilkes, 470 Mich. 661, 665, 685 N.W.2d 648 (2004). If the statutory language is unambiguous, appellate courts presume that the Legislature intended the plainly expressed meaning, and further judicial construction is neither permitted nor required. DiBenedetto v. West Shore Hosp., 461 Mich. 394, 402, 605 N.W.2d 300 (2000). Under the plain meaning rule, "courts should give the ordinary and accepted meaning to the mandatory word `shall' and the permissive word `may' unless to do so would frustrate the legislative intent as evidenced by other statutory language or by reading the statute as a whole." Browder v. Int'l Fidelity Ins. Co., 413 Mich. 603, 612, 321 N.W.2d 668 (1982). Michigan recognizes the maxim "expressio unius est exclusio alterius; that the express mention in a statute of one thing implies the exclusion of other similar things." Bradley v. Saranac Community Schools Bd. of Ed., 455 Mich. 285, 298, 565 N.W.2d 650 (1997). However, "this maxim is merely an aid to interpreting legislative intent and cannot govern if the result would defeat the clear legislative intent. . . ." Grand Rapids Employees Independent Union v. Grand Rapids, 235 Mich.App. 398, 406, 597 N.W.2d 284 (1999). The legislative history of an act may be examined "to ascertain the reason for the act and the meaning of its provisions." DeVormer v. DeVormer, 240 Mich.App. 601, 607, 618 N.W.2d 39 (2000). Legislative history is valuable when it evidences a legislative intent to repudiate a judicial construction or considers alternatives in statutory language. In re Certified Question (Kenneth Henes Special Projects v. Continental Biomass Industries, Inc), 468 Mich. 109, 115 n. 5, 659 N.W.2d 597 (2003)

. However, legislative history is afforded little significance when it is not an official view of the legislators and cannot be utilized to create an ambiguity where one does not otherwise exist. Id.

We review de novo summary disposition decisions. In re Capuzzi Estate, 470 Mich. 399, 402, 684 N.W.2d 677 (2004). The moving party has the initial burden to support its claim for summary disposition under MCR 2.116(C)(7) or (10) by affidavits, depositions, admissions, or other documentary evidence. Quinto v. Cross & Peters Co., 451 Mich. 358, 362, 547 N.W.2d 314 (1996). The burden then shifts to the nonmoving party to demonstrate a genuine issue of disputed fact exists for trial. Id. To meet this burden, the nonmoving party must present documentary evidence establishing the existence of a material fact, and the motion is properly granted if this burden is not satisfied. Id. Affidavits, depositions, and documentary evidence offered in support of, and in...

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