Opinion ID: 723174
Heading Depth: 3
Heading Rank: 2

Heading: Distribution of Settlement Proceeds

Text: 19 The Maben heirs challenge the district court's finding that Norris Jr. was entitled to settlement proceeds. Citing In re Renaud, 509 N.W.2d 858 (Mich.Ct.App.), appeal denied, 519 N.W.2d 154 (Mich.1994), the Maben heirs contend that unacknowledged, illegitimate children are not entitled to share in wrongful death settlement proceeds under Michigan law. 20 In dicta in In re Renaud, 509 N.W.2d 858, the court equated the term children used in the Michigan Wrongful Death Act with the enumerated class of heirs born out of wedlock under the Michigan intestate succession statute. See Mich.Comp.Laws Ann. § 700.111(4) (1993). Renaud is cited in support of a holding that an unacknowledged illegitimate child could not recover under the Michigan Wrongful Death Act in Turner v. Grace Hospital, 530 N.W.2d 487 (Mich.Ct.App.1995). 21 The Michigan Wrongful Death Act provides that the deceased's children (without regard to legitimacy or acknowledgment) are entitled to share in proceeds from a wrongful death claim. Mich.Comp.Laws Ann. § 600.2922 (1985). The Michigan intestate succession statute, by contrast, limits inheritance by illegitimate children of deceased fathers. Mich.Comp.Laws Ann. § 700.111(4) (1996). To be considered an heir, the father of a child born out of wedlock must: 1) acknowledge the child through the filing of an acknowledgment of paternity; 2) join with the child's mother in a written request for correction of birth certificate; 3) enjoy a mutually acknowledged relationship before the child reaches age eighteen; or 4) be determined to be the father in a filiation order. Id. 22 The district court did not apply Renaud, reasoning that the Michigan Supreme Court would come to a different conclusion regarding the right of an afterborn illegitimate child to share in wrongful death settlement proceeds. The district court's legal conclusions are subject to de novo reivew. Paul Revere Life Ins. Co. v. Brock, 28 F.3d 551, 553 (6th Cir.1994). A federal court need not follow precedent established by an intermediate state appellate court when other persuasive data indicates the highest court of the state would decide otherwise. Pratt v. Brown Machine Co., 855 F.2d 1225, 1234, n. 11 (6th Cir.1988). In this case, there are several indicia that the Michigan Supreme Court would interpret and apply Michigan law so as to permit Norris Jr. to share in settlement proceeds. 23 Prior precedent indicates the Michigan Supreme Court would not apply the Renaud holding in this case. In Weber v. Aetna Casualty and Surety Co., 406 U.S. 164, 175 (1972), the United States Supreme Court invalidated a Louisiana statute which prohibited unacknowledged illegitimate children from receiving wrongful death damages. The Michigan Wrongful Death Act is subject to the same constitutional challenge if the term children is interpreted as it was in Renaud. Neither the Turner court nor the Renaud court addressed this dormant constitutional question. See Turner, 530 N.W.2d at 489 (stating the court reluctantly agrees with the holding of Renaud). 24 A Michigan Supreme Court holding contrary to Renaud, that children may be entitled to wrongful death benefits notwithstanding their inability to inherit, would bring the Michigan Wrongful Death Act in line with prior Michigan Supreme Court precedent interpreting similar statutes. The Michigan Supreme Court previously held that afterborn illegitimate children may recover wrongful death damages under state dram shop and workers' compensation statutes. La Blue v. Specker, 100 N.W.2d 445, 455 (Mich.1960) (holding afterborn illegitimate child entitled to share in proceeds of wrongful death damages under state dram shop legislation); Westfall v. J.P. Burroughs & Son, 274 N.W. 358, 360 (Mich.1937) (holding afterborn illegitimate child could recover workers' compensation wrongful death benefits). See Bettelon v. Metalock Repair Serv., 358 N.W.2d 608, 611 (Mich.Ct.App.1984) (holding afterborn child entitled to share in proceeds of workers' compensation wrongful death benefits when paternity established by competent and substantial evidence). 25 Moreover, Michigan courts have recognized judicial methods of proving paternity outside those enumerated in the intestate succession statute. The Michigan Supreme Court has held that a judicial determination of paternity entitled an illegitimate child to inherit notwithstanding his failure to satisfy the conditions of the intestate succession statute. Easley v. John Hancock Insurance Co., 271 N.W.2d 513 (Mich.1978). In In re Jones, 525 N.W.2d 493 (Mich.Ct.App.1994), the court considered an illegitimate infant's claim for inheritance proceeds. Citing Easley, the court concluded that judicial methods of establishing paternity pursuant to the Michigan Paternity Act also suffice for establishing a right to inherit. Id. at 497; In re Miller, 524 N.W.2d 246 (Mich.Ct.App.1994) (same). 2 26 Even the plain language and legislative history of the Michigan Wrongful Death Act indicate a legislative intent that the term children not be construed synonymously with defined statutory heirs under § 700.111. Prior to 1985, the Michigan Wrongful Death Act provided that only those who would be entitled to inherit the personal property of the deceased had he [sic] died intestate could recover wrongful death damages. Mich.Comp.Laws Ann. § 600.2922(2) (1939). The amended statute clearly differentiates between children and statutory heirs entitled to wrongful death damages: [t]he deceased's spouse, children, descendants, parents ..., and, if none of these persons survive the deceased, then those persons to whom the estate ... would pass under the laws of intestacy. Mich.Comp.Laws Ann. § 600.2922(a) (1985) (emphasis added). 27 Given the weight of precedent, the plain language, and the legislative history of the Michigan Wrongful Death Act, the district court did not err in holding other persuasive data indicated the Michigan Supreme Court would not follow Renaud and Turner. Therefore, Norris Jr. was rightfully included in the class of persons entitled to share in settlement proceeds under the Michigan Wrongful Death Act.