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No-Fault News Bulletin MICHIGAN COURT OF APPEALS CLARIFIES NO-FAULT LIABILITY OF OUT-OF-STATE INSURERS By: Laura J. Garlinghouse, Esq.
The plaintiff motorcyclist was a Michigan resident who was injured in an accident with a motor vehicle owned by a non-Michigan resident. The non-resident was insured by Amex, a Washington company. Amex had filed a certification in Michigan pursuant to MCL 500.3163, under which it agreed to be governed by Michigan's no-fault act if an accident occurred in Michigan involving its insured's vehicle. The plaintiff was covered under his parents' no-fault policy with Geico. In a suit brought against both Amex and Geico, both insurers argued that the other was the priority insurer. The trial court granted summary disposition in favor of Geico. On appeal, Amex argued that by filing a certification under MCL 500.3163, Amex only agreed to be subject to the no-fault act if its own insured sustained personal injuries or property damage. The Court of Appeals rejected Amex's argument and held that under the plain language of MCL 500.3163, an out-of-state insurer that files certification is subject to the act for any accidental injury or property damage in Michigan arising out of the ownership or use of a vehicle by its insured. The Court further reasoned that the statute allows "claimants" to recover benefits, which shows that the legislature contemplated that an out-of-state insurer could be liable for injuries or damage other than to its own insured. Amex was therefore subject to the no-fault act. Because an injured motorcyclist first seeks no-fault benefits from the owner of the other motor vehicle involved in the accident, Amex was the priority insurer. This case is important because it is the first to define an out-of-state insurer's obligations to a Michigan resident in connection with an in-state accident. It is not yet known whether Amex will seek leave to appeal this decision to the Michigan Supreme Court. Laura J. Garlinghouse, Esq., practices in the Grand Rapids office of Foster,
Swift, Collins & Smith. lgarlinghouse@fosterswift.com; |
General Litigation Group
Scott L. Mandel Paul J. Millenbach pmillenbach@fosterswift.com Attorneys
Zachary W. Behler
Mark J. Colon
Pamela C. Dausman
Nichole J. Derks
Laura J. Garlinghouse
Michael G. Harrison
Lawrence Korolewicz
Joseph E. Kozely
Richard C. Kraus
Donald E. Martin
Kirsten M. McNelly
Thomas R. Meagher
Nicholas B. Missad
John P. Nicolucci
Frank H. Reynolds
Joshua K. Richardson |
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