Three Year Statute of Limitations Affirmed in UM/UIM Coverage Dispute
Plaintiff was an injured driver in an October 2, 2016 motor vehicle accident in which the driver of the other vehicle was unknown. The plaintiff’s insurance policy with defendant insurance company included a provision for uninsured/underinsured (UM/UIM) motorist coverage.
The court noted that UM/UIM benefits are not required under the no-fault act and are therefore interpreted by the unambiguous language in the insurance policy. In this case, the policy required that a claim for benefits be made within three years of the date of loss.
The plaintiff filed a complaint alleging negligence against the unknown driver and also brought a claim for UM/UIM benefits against the insurance company on October 3, 2019, one day beyond the statute of limitations. The defendant moved for summary disposition based on MCL 600.5805(2), which the court granted. The plaintiff tried to argue that he brought a claim for breach of contract, which has a six-year statute of limitations under MCL 600.5807(9).
The dispute over timing was based in part on communications between the plaintiff’s lawyer and the defendant insurance company, although the plaintiff attorney’s correspondence contained contradictory statements in regard to a claim for UM benefits. Plaintiff sought permission to amend his complaint but never submitted an amended complaint to the court. The trial court held that the plaintiff failed to state a claim for breach of contract.
The appellate court determined that the plaintiff’s claim for breach of contract did not provide sufficient evidence or allegations that the insurance company in fact breached the contract and affirmed the motion for summary disposition.
The case is Elias Yaghnam v. John Doe v. Michigan Insurance Company, unpublished order of the Michigan Court of Appeals. Released July 15, 2021, No. 353547 in Wayne Circuit Court, LC No. 19-013227-NI.
Click on the link to read the case summary.
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