People v. Whipple

The people appeal by leave granted an order of the Kalamazoo Circuit Court affirming an order of the 8th District Court dismissing a charge against defendant of fraudulent retention or use of building contract funds, MCL 570.152; MSA 26.332. We reverse and reinstate the charge. In doing so, we hold that a reasonable inference of appropriation arises from the payment of construction funds to a contractor and the subsequent failure of the contractor to pay laborers, subcontractors, materialmen, or others entitled to payment.

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This case arises out of a building contract entered into by James…