BORRELLO, J.
Defendant, the Michigan Catastrophic Claims Association (MCCA), appeals by leave granted a December 26, 2012 trial court order granting partial summary disposition in favor of plaintiffs, the Coalition Protecting Auto No-Fault and others, pursuant to MCR 2.116(C)(8), and denying the MCCA's motion for summary disposition under MCR 2.116(C)(8) and MCR 2.116(C)(10). Plaintiffs cross-appeal the same order. For the reasons set forth in this opinion, we reverse and remand for entry of an order awarding summary disposition in favor of the MCCA.
This action involves plaintiffs' requests to inspect certain of the MCCA's records. Plaintiffs advance arguments premised on the Michigan Freedom of Information Act (FOIA), MCL 15.231 et seq., the common law, and the law of trusts. The MCCA was created by the Legislature to protect no-fault automobile insurers from catastrophic losses arising from their obligation to pay or reimburse no-fault policyholders' lifetime medical expenses. League Gen. Ins. Co. v. Mich. Catastrophic Claims Ass'n, 435 Mich. 338, 340-341, 458 N.W.2d 632 (1990). As a precondition to writing no-fault insurance in Michigan, every insurer must be a member of the MCCA. MCL 500.3104(1). Member insurers are required to pay annual premiums to the MCCA, MCL 500.3104(7), and in turn, the MCCA indemnifies its members for their "ultimate loss sustained under personal protection insurance coverage in excess [of a fixed statutory amount,]" MCL 500.3104(2).
On November 22, 2011, plaintiff Coalition Protecting Auto No-Fault (CPAN) sent the MCCA a FOIA request, seeking certain information concerning "all" open
On January 23, 2012, CPAN filed suit against the MCCA in the Ingham Circuit Court, seeking to compel the MCCA to disclose the requested information. Meanwhile, plaintiff Brain Injury Association of Michigan (BIAMI) and several individual plaintiffs (the BIAMI plaintiffs) commenced a separate lawsuit against the MCCA after it denied their FOIA request for similar information. On July 5, 2012, CPAN, the MCCA and the BIAMI plaintiffs stipulated to consolidate the cases and to allow CPAN to file an amended complaint.
CPAN alleged four counts in its amended complaint.
Shortly thereafter, the MCCA moved for summary disposition pursuant to MCR 2.116(C)(8) and MCR 2.116(C)(10), and CPAN filed a cross-motion for summary disposition pursuant to MCR 2.116(I)(2), which the trial court construed as a motion brought under MCR 2.116(C)(8). The BIAMI plaintiffs moved for summary disposition under MCR 2.116(C)(9) and MCR 2.116(C)(10), then later withdrew their (C)(10) motion. Despite the differences in plaintiffs' motions, the trial court ultimately granted partial summary disposition in favor of all plaintiffs under MCR 2.116(C)(8), denying plaintiffs' motions to the extent they sought disclosure of information concerning individual claimants. The court denied the MCCA's motion in its entirety.
The trial court ruled that the MCCA was a "public body" for purposes of FOIA because the MCCA was "created entirely by statute." The court concluded that MCL 500.134 did not exempt the MCCA's records from FOIA, stating:
The trial court also held that plaintiffs were entitled to the MCCA's records under Shavers, 402 Mich. at 554, 267 N.W.2d 72, the common law, and trust theories, explaining:
On January 16, 2013, the MCCA moved for leave to appeal the trial court's order in this Court and moved this Court to stay the proceedings pending its appeal. On March 8, 2013, this Court granted the MCCA leave to appeal and stayed the proceedings pending resolution of the appeal.
We review de novo a trial court's ruling on a motion for summary disposition. Maiden v. Rozwood, 461 Mich. 109, 118, 597 N.W.2d 817 (1999). "A motion under MCR 2.116(C)(8) tests the legal sufficiency of the complaint." Id. at 119, 597 N.W.2d 817. In deciding the motion, a trial court may only consider the pleadings and "[a]ll well-pleaded factual allegations
The MCCA contends that the trial court erred by holding that its records were not exempt from FOIA.
"Under FOIA, a public body must disclose all public records that are not specifically exempt under the act." Hopkins v. Duncan Twp., 294 Mich.App. 401, 409, 812 N.W.2d 27 (2011), citing MCL 15.233(1). In this case, even assuming that the MCCA is a public body for purposes of FOIA, the MCCA is not required to disclose any of its records because the records are expressly exempted from FOIA by statute.
Section 13 of FOIA, MCL 15.243, lists various types of records and information that a public body may exempt from the act's disclosure requirements. MCL 15.243(1)(d) provides that "[a] public body may exempt from disclosure as a public record under this act ... [r]ecords or information specifically described and exempted from disclosure by statute" (emphasis added). MCL 500.134, a section of the Insurance Code,
The MCCA argues that, read together, MCL 500.134(4) and (6) exempt its records from FOIA. Plaintiffs implicitly concede that the MCCA is an "association or facility" under MCL 500.134(6), but nevertheless contend that the statute does not carve out a wholesale exemption for the MCCA's records. Resolution of this issue requires that we construe the meaning of the relevant statutory provisions. "When interpreting the meaning of a statute, our primary goal is to discern the intent of the Legislature by first examining the plain language of the statute." Driver v. Naini, 490 Mich. 239, 246-247, 802 N.W.2d 311 (2011). "When the language is clear and unambiguous, we will apply the statute as written and judicial construction is not permitted." Id. at 247, 802 N.W.2d 311.
Plaintiffs make much of the fact that MCL 500.134(4) refers to "a record," while MCL 15.243(1)(d) applies to "records or information specifically described and exempted from disclosure by statute." We find this minimally differing language of no interpretive consequence. The statute fully exempts any and all of the MCCA's records from FOIA. It accomplishes this goal by employing the indefinite article "a" to identify which records are exempt from FOIA. The Legislature's use of the indefinite article "a" in MCL 500.134(4) clearly indicates its intent to exempt all of the MCCA's records in general.
The trial court erred by concluding that the phrase "pursuant to section 13" in MCL 500.134(4) meant that the MCCA's records were only exempt from FOIA if they fell within one of the enumerated exemptions in § 13. As noted, § 13(1)(d) permits another statute to exempt records from FOIA. In this case, MCL 500.134(4) and (6) exempt the MCCA's records from disclosure. As a result, it is not necessary for the MCCA's records to fall within any of the other § 13 exemptions. See King v. Mich. State Police Dep't, 303 Mich.App. 162, 177-178, 841 N.W.2d 914 (2013). The trial court's interpretation to the contrary rendered MCL 500.134(4) and (6) nugatory. When the Legislature enacted MCL 500.134, all the exemptions in § 13 existed.
Plaintiffs contend that § 13(1)(d) permits a statutory exemption for the production of specified records but it does not permit "a statutory exemption of the public
On cross-appeal, plaintiffs contend that MCL 500.134(4) cannot exempt the MCCA's records because the statute violates the state constitution. Although the trial court failed to address and decide this issue, CPAN raised it in the lower court and the issue involves a question of law concerning which the necessary facts have been presented. Therefore, we will address plaintiffs' constitutional arguments. See Duffy v. Dep't of Nat'l Resources, 490 Mich. 198, 209 n. 3, 805 N.W.2d 399 (2011) (noting that an issue not properly preserved for appeal may be addressed if it involves a question of law concerning which the necessary facts have been presented).
"[W]hen a party seeks our declaration that a statute violates the Constitution, we must operate with the presumption that the statute is constitutional unless its unconstitutionality is clearly apparent." UAW v. Green, 302 Mich.App. 246, 252, 839 N.W.2d 1 (2013) (quotation marks and citation omitted). "Every reasonable presumption or intendment must be indulged in favor of the validity of an act, and it is only when invalidity appears so clearly as to leave no room for reasonable doubt that it violates some provision of the Constitution that a court will refuse to sustain its validity." Phillips v. Mirac, Inc., 470 Mich. 415, 423, 685 N.W.2d 174 (2004) (quotation marks and citation omitted). Therefore, "the burden of proving that a statute is unconstitutional rests with the party challenging it." In re Request for Advisory Opinion Regarding Constitutionality of 2005 PA 71, 479 Mich. 1, 11, 740 N.W.2d 444 (2007).
Plaintiffs contend that MCL 500.134(4) violates the Michigan Constitution because the Legislature did not reenact and republish FOIA when it enacted MCL 500.134(4). Const. 1963, art. 4, § 25 provides: "No law shall be revised, altered or amended by reference to its title only. The section or sections of the act altered or amended shall be re-enacted and published at length."
MCL 500.134(4) did not revise, alter, or amend FOIA. Rather, FOIA contemplates statutory exemptions. Specifically, § 13(1)(d) provides in pertinent part that "[a] public body may exempt from disclosure as a public record under this act ... [r]ecords or information specifically described and exempted from disclosure by statute." MCL 15.243(1)(d). By including this language, the Legislature drafted FOIA in such a way that future statutory exemptions would not constitute revisions to or amendments of FOIA, but instead would work pursuant to FOIA. Therefore, when the Legislature enacted MCL 500.134(4), there was no duty to reenact and republish FOIA.
Plaintiffs also contend that MCL 500.134(4) violates the Title-Object Clause of the Michigan Constitution, Const 1963, art 4, § 24, which provides:
"The purpose of the Title-Object Clause is to ensure that legislators and the public receive proper notice of legislative content and [to] prevent[] deceit and subterfuge." Gen. Motors Corp. v. Dep't of Treasury, 290 Mich.App. 355, 388, 803 N.W.2d 698 (2010) (quotation marks and citation omitted). "The constitutional requirement should be construed reasonably and permits a bill enacted into law to include all matters germane to its object, as well as all provisions that directly relate to, carry out, and implement the principal object." Id. (quotation marks and citation omitted).
There are three types of challenges that may be brought under the Title-Object Clause:
In the trial court, CPAN advanced all three challenges; however, on appeal plaintiffs do not renew their multiple-object argument. Similarly, with respect to their change of purpose challenge, plaintiffs fail to provide a cognizable argument and they have therefore abandoned it for review. See Wilson v. Taylor, 457 Mich. 232, 243, 577 N.W.2d 100 (1998) ("It is not sufficient for a party simply to announce a position or assert an error and then leave it up to this Court to discover and rationalize the basis for his claims, or unravel and elaborate for him his arguments, and then search for authority either to sustain or reject his position.") (quotation marks and citation omitted). We therefore proceed by addressing plaintiffs' title-body challenge.
A title-body challenge tests "whether the title [of an act] gives fair notice to the legislators and the public of the challenged provision" contained in the act's body. H.J. Tucker & Assoc., Inc. v. Allied Chucker & Eng. Co., 234 Mich.App. 550, 559, 595 N.W.2d 176 (1999).
The fair-notice requirement is violated only "where the subjects [of the title and body] are so diverse in nature that they have no necessary connection...." People v. Cynar, 252 Mich.App. 82, 85, 651 N.W.2d 136 (2002) (quotation marks and citations omitted).
Enrolled Senate Bill 707, which was signed into law as 1988 PA 349, is titled in pertinent part:
The title indicates that part of the purpose of the act is to define the rights, powers, and immunities of associations involved in the insurance business. The MCCA is an association involved in the insurance business, and the FOIA exemption in MCL 500.134(4) concerns the rights, powers, and immunities of such associations. Therefore, it cannot be said that the title and body of the act are so "diverse in nature that they have no necessary connection" between each other and plaintiffs' title-object argument fails. Cynar, 252 Mich.App. at 85, 651 N.W.2d 136.
In sum, the plain language of MCL 500.134(4) and (6) exempts the MCCA's records from FOIA, and MCL 500.134(4) does not violate Const. 1963, art. 4, § 24 or Const. 1963, art. 4, § 25. The trial court therefore erred as a matter of law by holding that the MCCA was required to disclose any of its records under FOIA.
The MCCA next argues that the trial court erred as a matter of law by ruling that plaintiffs and "Michigan citizens" were entitled to inspect its records pursuant to the holding in Shavers, 402 Mich. at 554, 267 N.W.2d 72. We agree.
In Shavers, the Michigan Supreme Court addressed a constitutional challenge to the no-fault act. The Shavers Court held that the statutory obligation for all motorists to buy no-fault insurance was dependent on the right of all motorists to have no-fault insurance "available at fair and equitable rates." Id. at 599, 267 N.W.2d 72. Accordingly, the Court held that the obligation of motorists to buy no-fault insurance was unconstitutional if their right to have insurance available at fair and adequate rates was not protected by due process. Id. at 599-602, 267 N.W.2d 72. In determining what process was due, Shavers held that, at a minimum, the statutory scheme must ensure that insurance rates "are not, in fact, `excessive, inadequate or unfairly discriminatory'" and also ensure that "persons affected have notice as to how their rates are determined and an adequate remedy regarding that determination." Id. at 601, 267 N.W.2d 72, quoting MCL 500.2403(1)(d).
Contrary to the trial court's conclusion, Shavers is inapplicable in the present case. In response to Shavers, the Legislature amended the Insurance Code by enacting 1979 PA 145 and 1979 PA 147. Kreiner v. Fischer, 471 Mich. 109, 115-116, 683 N.W.2d 611 (2004), overruled on other grounds McCormick v. Carrier, 487 Mich. 180, 795 N.W.2d 517 (2010). In doing so, the Legislature corrected the no-fault act's constitutional deficiencies. Id. Moreover, the concerns identified in Shavers are not present in this case. Unlike the no-fault premiums at issue in Shavers, this case involves premiums that the MCCA charges to its member insurers. And, unlike the regulatory scheme that was deficient in
Furthermore, even assuming that the premiums are passed on to individual policyholders, Shavers does not stand for the broad proposition that policyholders are entitled to access every component of the cost they pay for no-fault insurance. Instead, Shavers mandated disclosure of limited ratemaking criteria to ensure that no-fault policyholders were treated fairly and equally. In this case, to the extent the MCCA's premiums are passed to policyholders, unlike in Shavers, they are subject to an extensive regulatory scheme.
In sum, Shavers is inapplicable in this case because the Insurance Code corrected the constitutional deficiencies identified in Shavers, Shavers did not stand for the broad proposition that policyholders have the right to access every component that comprises their insurance rates, and, unlike in Shavers, there is an effective regulatory scheme in place that governs the MCCA and the procedures the MCCA uses to determine its premiums. Accordingly, the trial court erred as a matter of law by holding that plaintiffs had a right to access the MCCA's records pursuant to Shavers.
Next, the MCCA argues that the trial court erred by concluding that Shavers "intertwined" with plaintiffs' right to access its records under the common law. Plaintiffs counter that the trial court correctly held that they had a common-law right to inspect the MCCA's records, and they rely on Nowack v. Auditor General, 243 Mich. 200, 219 N.W. 749 (1928), in support of their argument.
In Nowack, an editor and publisher of a newspaper sought a writ of mandamus to compel the defendant to permit him to inspect certain public records pertaining to the expenditure of public money. Id. at 201-202, 219 N.W. 749. Our Supreme Court explained that "[t]here is no question as to the common-law right of the people at large to inspect public documents and records. The right is based on the interest which citizens necessarily have in the matter to which the records relate." Id. at 204, 219 N.W. 749. The Court held that the plaintiff had a common-law right, as a citizen, to access the defendant's records in order to determine whether public money was being spent properly. Id. at 208, 219 N.W. 749.
Nowack illustrates this state's long-standing public policy that citizens have access to certain public records. However, by enacting FOIA and MCL 500.134(4) and (6), the Legislature clearly intended to supplant any preexisting common-law right to access the MCCA's records.
"The common law remains in force until it is affirmatively modified." Hamed v. Wayne Co., 490 Mich. 1, 22 n. 57, 803 N.W.2d 237 (2011). "The Legislature is presumed to know the common law, and any abrogation of the common law must be explicit." Id. A statutory scheme that is "comprehensive, providing in detail a course of conduct to pursue and the parties and things affected, and designates specific limitations and exceptions," indicates a legislative intention to supplant the common law on that subject. Kyser v. Kasson Twp., 486 Mich. 514, 539, 786 N.W.2d 543 (2010) (quotation marks and citations omitted).
While there is no published case-law in this state directly on point, the United States Supreme Court and federal courts have addressed conflicts between the federal common law and federal legislation
In Nixon v. Warner Communications, Inc., 435 U.S. 589, 591, 594, 98 S.Ct. 1306, 55 L.Ed.2d 570 (1978), the respondents claimed a federal common-law right to access recordings introduced at the trial of President Nixon's former advisors. The United States Supreme Court recognized a federal common-law right to access public information, stating that "the courts of this country recognize a general right to inspect and copy public records and documents, including judicial records and documents." Id. at 597, 98 S.Ct. 1306. Nevertheless, the Court denied the respondents' request on the ground that the Presidential Recordings Act provided an alternative method of accessing the records. Id. at 603-606, 98 S.Ct. 1306. In doing so, the Nixon Court established the principle that "a statutory disclosure scheme preempts the common law right" of access. Ctr. for Nat'l Security Studies v. U.S. Dep't of Justice, 331 F.3d 918, 936, 356 U.S.App. D.C. 333 (2003).
Federal courts have applied this principle to the federal FOIA. In United States v. El-Sayegh, 131 F.3d 158, 163, 327 U.S. App DC 308 (1997), the Court of Appeals for the District of Columbia Circuit applied Nixon and held that the media did not have a common-law right to access a withdrawn plea agreement because "[t]he appropriate device" to obtain disclosure was "a [federal FOIA] request addressed to the relevant agency." Id., citing Nixon, 435 U.S. at 605-606, 98 S.Ct. 1306.
Several years later, in Ctr. for Nat'l Security Studies, 331 F.3d 918, the same court reaffirmed the principle that the federal FOIA supplanted an individual's common-law right to access public information. In that case, the plaintiffs, public interest groups, sought to compel the Department of Justice to disclose information concerning "persons detained in the wake of the September 11 terrorist attacks...." Id. at 920. The plaintiffs argued in part that they had both a right under FOIA and a common-law right to access the information. Id. at 925, 936. The court rejected both arguments, holding that the information fell within a FOIA exemption and that FOIA supplanted the plaintiffs' common-law right. Id. at 932-933, 936-937. The court explained:
We find the principles set forth in Nixon, El-Sayegh, and Ctr. for Nat'l Security Studies instructive in this case. Like its federal counterpart, Michigan's FOIA provides a comprehensive statutory scheme that governs requests for public records held by public bodies. FOIA provides a
Plaintiffs appear to contend that, irrespective of FOIA's alteration of the common law, if the MCCA is considered a private entity, plaintiffs have a common-law right to inspect its records. However, even if we were to assume that the MCCA is a private entity, plaintiffs would not have the right to inspect its records. Nowack concerned the common-law right to access public records. See Nowack, 243 Mich. at 203-204, 219 N.W. 749; Breighner v. Mich. High Sch. Athletic Ass'n, Inc., 471 Mich. 217, 234, 683 N.W.2d 639 (2004) (explaining that "FOIA was enacted to continue the common-law right Michigan citizens have traditionally possessed to access government documents"); Booth Newspapers, Inc. v. Muskegon Probate Judge, 15 Mich.App. 203, 207, 166 N.W.2d 546 (1968) (noting that "[t]he Nowack decision has placed Michigan at the vanguard of those states holding that a citizen's accessibility to public records must be given the broadest possible effect") (emphasis added, quotation marks and citation omitted); In re Midland Publishing Co., Inc., 113 Mich.App. 55, 63, 317 N.W.2d 284 (1982) (citing Nowack and explaining that "Michigan has long recognized a common-law right to access to public records") (emphasis added). Thus, contrary to plaintiffs' argument, Nowack does not support the proposition that a citizen has a right to access private records.
Plaintiffs' argument that a "special interest" vests an individual with the right to inspect private records under Nowack is also without legal merit. While the Nowack Court referred to the plaintiff's "special interest" in the records of the auditor general, the Court did so only because the plaintiff sought to enforce his right to inspect the records by a writ of mandamus in his own name as opposed to one through the Attorney General. The Court explained:
Thus, the special interest addressed in Nowack did not vest the plaintiff with a right to access private documents. Rather, the inquiry into the plaintiff's special interest occurred only because the plaintiff sought to enforce his right to inspect public records by a writ of mandamus in his own name.
In sum, under the common law, citizens of this state had a right to access certain public records held by public entities as articulated in Nowack; however, by enacting FOIA and MCL 500.134(4) and (6), the Legislature created a comprehensive statutory scheme that governs access to public records in general and the MCCA's records in particular. In doing so, the Legislature clearly supplanted any preexisting common-law right of inspection that plaintiffs may have had in this case, and the trial court erred by concluding otherwise.
The MCCA argues that, to the extent the trial court ruled that plaintiffs were entitled to access its records under a trust theory, the court erred as a matter of law. After agreeing with plaintiffs' argument concerning Shavers, the trial court stated that "[t]his concept intertwines with the theories ... regarding ... resulting trusts."
Our Supreme Court described a resulting trust as follows:
To the extent the trial court held that plaintiffs are entitled to access the MCCA's records under a resulting trust theory, the trial court erred as a matter of law. A resulting trust is wholly unrelated to an individual's right to know how insurance premiums are calculated. Rather, a resulting trust concerns certain transfers of property to a third party. Id. Thus, the trial court erred by holding that Shavers "intertwined" with a resulting trust theory. Furthermore, plaintiffs did not transfer money to the MCCA. Instead, member insurers pay the MCCA's premiums. Moreover, even if the MCCA's premiums are reflected in plaintiffs' no-fault rates, plaintiffs cannot reasonably argue that they did not intend their insurers to obtain a beneficial interest in the rates they pay for no-fault insurance. Consequently, plaintiffs' resulting trust claim failed as a matter of law.
Similarly, to the extent the trial court held that the MCCA was required to disclose records under a constructive trust theory, it erred as a matter of law. A constructive trust is not an independent
In summary, plaintiffs' claims failed as a matter of law and plaintiffs are not entitled to access the MCCA's records. The MCCA's records are not subject to FOIA disclosure because the plain language of MCL 500.134(4) and (6) expressly exempt the records from FOIA and MCL 500.134(4) does not violate Const. 1963, art. 4, § 24 or Const. 1963, art. 4, § 25. In addition, plaintiffs were not entitled to access the MCCA's records pursuant to the holding in Shavers, 402 Mich. at 554, 267 N.W.2d 72, which is inapplicable in the instant case. Furthermore, plaintiffs did not have a right to access the MCCA's records under the common law because FOIA and MCL 500.134(4) and (6) supplanted the common law. Finally, plaintiffs' resulting and constructive trust theories failed as a matter of law. Given that all of plaintiffs' claims are clearly unenforceable as a matter of law and no factual development could justify recovery, the trial court erred by denying the MCCA's motion for summary disposition under MCR 2.116(C)(8) and in granting partial summary disposition in favor of plaintiffs. Wade, 439 Mich. at 163, 483 N.W.2d 26. Therefore, reversal and remand for entry of an order granting summary disposition in favor of the MCCA is appropriate.
Reversed and remanded for entry of an order awarding summary disposition in favor of the MCCA consistent with this opinion. A public question being involved, no costs awarded. MCR 7.219. We do not retain jurisdiction.
OWENS, P.J., and GLEICHER, J., concurred with BORRELLO, J.