Phillips v. Mirac6/7/2002
FOR PUBLICATION
In this appeal, we must determine whether the statutory cap on recoverable damages set forth in MCL 257.401(3) violates the Michigan Constitution. This provision limits a plaintiff's recovery in an action against a lessor of a motor vehicle, absent negligence by the lessor, when bodily injury or death occur from an accident involving a motor vehicle leased for thirty days or less. We find that the damages cap provision of MCL 257.401(3) does not violate a party's right to a jury trial, to equal protection, or to due process of law, under the Michigan Constitution. Consequently, we hold that the statute is constitutional. Because the trial court found the statute unconstitutional, we reverse and remand.
I. Facts and Procedural History
This action arises from an automobile accident in October 1997 that resulted in the death of Regeana Diane Hervey, a passenger in the automobile driven by Da-Fel Reed. Reed had rented the automobile involved in the accident for a period of thirty days or less from defendant Mirac, Inc., doing business as Enterprise Rent-A-Car. Plaintiff Margaret Phillips, who is the decedent's mother and the personal representative of the decedent's estate, commenced this action against defendant on the basis of statutory ownership liability under section 401 of the Motor Vehicle Code (MVC), MCL 257.401. The parties stipulated that under Michigan law, defendant is responsible for Reed's authorized operation of the rented automobile. Plaintiff did not allege that defendant was negligent in leasing the automobile to Reed.
A jury trial commenced in November 1999, and the jury returned a verdict in favor of plaintiff. Both plaintiff and defendant presented orders for entry of judgment. Plaintiff sought entry of judgment for $250,000, plus statutory interest, fees, and costs, while defendant sought entry of judgment for $20,000, pursuant to MCL 257.401(3) (subsection 401(3)), plus statutory interest, fees, and costs. After oral argument concerning the constitutionality of the statutory cap on recoverable damages in subsection 401(3), the trial court determined that this provision is unconstitutional under the Michigan Constitution because it violates the right to a jury trial and the equal protection and due process clauses. Thus, on April 26, 2000, the trial court entered judgment in favor of plaintiff in the amount of $250,000, plus interest, fees, and costs. This appeal ensued.
II. Standard of Review
The constitutionality of a statute is a question of law that this Court reviews de novo. Tolksdorf v Griffith, 464 Mich 1, 5; 626 NW2d 163 (2001); Proctor v White Lake Twp Police Dep't, 248 Mich App 457, 461; 639 NW2d 332 (2001). "A statute is presumed constitutional, unless its unconstitutionality is readily apparent." Tolksdorf, supra; McDougall v Schanz, 461 Mich 15, 24; 597 NW2d 148 (1999); Proctor, supra at 461-462. A statute is not unconstitutional merely because it is undesirable, unfair, or unjust. Doe v Dep't of Social Services, 439 Mich 650, 681; 487 NW2d 166 (1992); In re Juvenile Commitment Costs, 240 Mich App 420, 440; 613 NW2d 348 (2000).
III. Analysis
On appeal, defendant maintains that the trial court's finding that subsection 401(3) violates a party's right to a jury trial, to equal protection, and to due process of law was error. Subsection 401(3) provides in pertinent part:
Unless the lessor, or his or her agent, was negligent in the leasing of the motor vehicle, the lessor's liability under this subsection is limited to $20,000.00 because of bodily injury to or death of 1 person in any 1 accident and $40,000.00 because of bodily injury to or death of
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