Wilkie v. Schwan's Sales Enterprises, Inc.
Citation | 541 F. Supp. 1193 |
Decision Date | 11 June 1982 |
Docket Number | No. K 82-12.,K 82-12. |
Parties | Ralph WILKIE, Plaintiff, v. SCHWAN'S SALES ENTERPRISES, INC., a foreign corporation, Defendant. |
Court | U.S. District Court — Western District of Michigan |
Michael C. Bingen, Kalamazoo, Mich., for plaintiff.
Paul Taglia, St. Joseph, Mich., for defendant.
This case requires the Court to determine whether a dismissal for no progress under Michigan law constitutes an adjudication on the merits so that the doctrine of res judicata bars the subsequent reinstitution of an action thus dismissed.
On January 18, 1982, Plaintiff, Ralph Wilkie, filed suit in this Court against Defendant, Schwan's Sales, alleging that Defendant breached Plaintiff's employment contract by wrongfully terminating him in retaliation for his desire to obtain workers compensation for a medical condition which was surgically corrected. Defendant answered and on March 5, 1982, moved for judgment on the pleadings asserting that the instant Complaint must be dismissed as being barred by a prior judgment rendered in the St. Joseph County Circuit Court.
To warrant the grant of summary judgment, the moving party bears the burden of establishing the non-existence of any genuine issue of fact that is material to a judgment in his favor. Adickes v. S. H. Kress & Company, 398 U.S. 144, 147, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); United States v. Articles of Device ... Diapulse, 527 F.2d 1008, 1011 (CA 6 1976); Tee-Pak, Inc. v. St. Regis Paper Company, 491 F.2d 1193 (CA 6 1974). If no genuine issue as to any material fact is established, the moving party is entitled to judgment as a matter of law. Chavez v. Noble Drilling Company, 567 F.2d 287 (CA 6 1978); Irwin v. U. S., 558 F.2d 249 (CA 6 1977).
In determining whether or not there are issues of fact requiring a trial, "the inferences to be drawn from the underlying facts contained in the (affidavits, attached exhibits, and depositions) must be viewed in the light most favorable to the party opposing the motion." United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962); Bohn Aluminum & Brass Corporation v. Storm King Corporation, 303 F.2d 425 (CA 6 1962). Even if the basic facts are not disputed, summary judgment may be inappropriate when contradictory inferences may be drawn from them. United States v. Diebold, supra; E. E. O. C. v. United Association of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local 189, 427 F.2d 1091, 1093 (CA 6 1970). In making this determination, the Court must make reference to the entire record and all well pleaded allegations are to be accepted as true. Dayco Corporation v. Goodyear Tire and Rubber Company, 523 F.2d 389 (CA 6 1975); Holmes v. Insurance Company of North America, 288 F.Supp. 325 (D.C.Mich.1968); Mahler v. U. S., 196 F.Supp. 362 (D.C.Pa.1961). These guidelines will be adhered to as substantive issues of the motion are examined.
As the basis of jurisdiction in this suit is diversity of citizenship, the Court looks to state substantive law. Since the alleged injurious conduct occurred in Michigan, this Court is guided by Michigan law on the issue.
In Mango v. Plymouth Township Board of Trustees, 33 Mich.App. 715, 190 N.W.2d 285 (1971), the Court of Appeals defined res judicata as the doctrine which bars a subsequent action between the same parties when the facts or evidence essential to the maintenance of two actions are identical. "The doctrine of res judicata applies only when the issues and parties or their privies in the prior litigation are identical". Sheridan Drive Association v. Woodlawn Backproperty Owners Association, 29 Mich. App. 64, 68, 185 N.W.2d 107 (1970); Topps-Toeller, Inc. v. City of Lansing, 47 Mich. App. 720, 209 N.W.2d 843 (1973). In other words, a judgment, to constitute a bar to a claim in a subsequent action, must be rendered on the merits, on the same matter in issue, and between the same parties or their privies. Hewett Grocery Company v. Biddle Purchasing Company, 289 Mich. 225, 286 N.W. 221 (1939); Zak v. Gray, 324 Mich. 522, 37 N.W.2d 550 (1949); Hammitt v. Straley, 338 Mich. 587, 61 N.W.2d 641 (1954); Gomber v. Dutch Maid Dairy, 42 Mich.App. 505, 202 N.W.2d 566 (1972); Mazzola v. Vineyard Homes, Inc., 54 Mich.App. 608, 221 N.W.2d 406 (1974); Fry v. Kaiser, 60 Mich.App. 574, 232 N.W.2d 673 (1975).
Here, it is apparent that a prior judgment of dismissal was rendered by the St. Joseph County Circuit Court. A review of the Complaint filed in that suit reveals that the matters in issue there are the same as those raised in this suit and that the parties in both the state and federal litigation are exactly the same. The question which remains, however, is whether the state court judgment was a final judgment on the merits so that the elements of res judicata are established.
As noted by the Defendant, historically, the dismissal of a case on the no-progress calendar was considered to be without prejudice. See M.C.L.A. § 618.2; M.S.A. § 27.982. Since then, this statutory provision has been replaced by Michigan General Court Rule 501, which became effective on January 1, 1963. That Court Rule (GCR 1963 501.3) provides in pertinent part:
... If none of the parties or their attorneys appear at the time and place set for the general call and answer when their action is called, the court may direct the clerk to enter an order dismissing the action for want of prosecution. If at the call it is shown that the failure to take steps or proceedings is not due to the plaintiff's fault or lack of reasonable diligence on his part, the action will not be dismissed. The court may then order the action set down for final disposition at a specified date, or place it on the calendar for trial or hearing in due course, or make such other orders as may facilitate its prompt and just disposition.
Interestingly, at no place within the context of this Court Rule is it designated whether a no-progress dismissal is with or without prejudice. However, this Court Rule must be read in conjunction with GCR 1963, 504.2 which states:
.2 Involuntary Dismissal; Effect. For failure of the plaintiff to comply with these rules or any order of court, a defendant may move for dismissal of an action or of any claim against him. After the plaintiff has completed the presentation of his evidence to the court in any action tried without a jury, the defendant, without waiving his right to offer evidence in the event the motion is not granted, may move for a dismissal on the ground that upon the facts and the law the plaintiff has shown no right to relief. Thereupon, the court as trier of the facts may determine them and render judgment against the plaintiff, or may decline to render any judgment until the close of all the evidence. If the court renders judgment on the merits against the plaintiff, the court shall make findings as provided in Rule 517. Unless the court in its order for dismissal otherwise specifies, a dismissal under this subdivision and any dismissal not provided for in this rule, other than a dismissal for lack of jurisdiction, operates as an adjudication upon the merits. (Emphasis supplied.)
In the instant case, the order of dismissal in the state court proceeding did not "otherwise specify" what type of dismissal was being entered. Thus, upon application of the aforestated Court Rule, the dismissal therein appears to be an adjudication upon the merits.
This finding, however, is contrary to the decision rendered by the Court of Appeals in Caughey v. Rozycki, 22 Mich.App. 317, 177 N.W.2d 257 (1970), where it was held that a dismissal for no progress does not operate as a meritorious adjudication on the merits and that suits so dismissed were not barred from subsequent reinstitution. There, the defendant contended that a previous no-progress dismissal under Rule 501.3 was a dismissal not provided for in Rule 504, and that because the order dismissing the plaintiff's action did not specify that the dismissal would be without prejudice, the dismissal by reason of Rule 504.2 operated as an adjudication upon the merits. Judge (now Justice) Levin reasoned for the Court:
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...an adjudication on the merits so that the doctrine of res judicata applies was recently addressed in Wilkie v. Schwan's Sales Enterprises, Inc., 541 F.Supp. 1193 (W.D.Mich.1982). After looking to the relevant provisions of the Michigan General Court Rules, GCR 1963 501.3, 504.2 and several ......
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...the Supreme Court has the authority to adopt rules of procedure for all courts of record in the state." Wilkie v. Schwan's Sales Enterprises, Inc., 541 F.Supp. 1193, 1197 (W.D.Mich.1982). See also Mich. Const. of 1963, Art. VI, § 5. Therefore, those rules should inform this court's decision......
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