Insurance Coverage Case Heard by Michigan Court of Appeals
On July 7, 2023, Peter Angelas of Alexander & Angelas participated in oral arguments before the Michigan Court of Appeals in Lansing, Michigan. The appellate panel consisted of three learned judges who had received extensive briefing from the four (4) litigants involved in the appeal. The Court of Appeals permitted sixty (60) minutes of argument which was often interrupted by probing and thoughtful questions from the appellate panel.
The underlying case involved a serious motor vehicle accident which occurred in the state of Ohio. This caused severe injury to the Plaintiff. Despite the MVA occurring in Ohio, Plaintiff sought Michigan no-fault (PIP) based on certain common law and statutory theories.
At the time of his accident, Plaintiff was operating a tractor registered to an LLC which he solely owned. Plaintiff’s LLC was under a long-term lease with a motor carrier domiciled in Ohio. He was under dispatch, trailering a load and earning income (business use) hauling for the motor carrier at the time of the Ohio MVA.
The motor carrier was insured by Great West Casualty. The motor carrier domiciled in Ohio was not required to have Michigan no-fault coverage. Thus, the Great West policy sold to the motor carrier did not include a Michigan no-fault endorsement. Our firm’s client was Lloyd’s of London which sold a “bobtail” policy to Plaintiff and his LLC. Although this bobtail policy included a Michigan no-fault endorsement, all coverage under this policy was excluded while the tractor was being operated for “business use” and not “bobtailing (operating without a trailer).” Finally, Plaintiff was insured by Farm Bureau Insurance which had sold him a personal line auto policy.
The trial court proceedings resulted in summary disposition for Great West Casualty and Lloyd’s of London. The case proceeded to trial and during trial a consent judgment was entered against Farm Bureau in the amount of $1.3 million. Farm Bureau took an appeal.
The questions on appeal were whether Plaintiff was an “owner” of the tractor at the time of the accident who had failed to have the proper insurance in effect, thus negating any right to no fault (PIP) benefits. Also considered was whether the outcome of the bodily injury tort trial in Ohio (which inexplicably found that Plaintiff had not suffered injuries related to the MVA) was applicable to negate the Michigan PIP claim. A ruling is now pending.
This case illustrates the complicated and fact specific analysis that goes into litigating insurance coverage claims. In these cases, it is important to obtain the specific facts required to determine the order of priority for paying a claim amongst potentially liable insurers and applying those facts to the applicable portions of the Michigan no-fault act. From the perspective of our client in this case, it was also important to emphasize the limited coverage provided by the bobtail insurance policy and establish that the applicable exclusions were clear and unambiguous which entitled the policy to be enforced as written.
Click on the link to view the oral argument which starts at 2:27:14. See 3:10:25 for the presentation by Mr. Angelas.
About Alexander & Angelas, P.C.
Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.
A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.
Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees and strives to resolve matters within one year from initial case assignment.
Visit Alexander & Angelas online at https://www.alexanderandangelas.com/ for more information. Partner Peter A. Angelas is available to discuss a confidential matter.
