Insurer Failed to Properly Plead Rescission as an Affirmative Defense; Summary Disposition was Improper
In this case, the Defendant no-fault insurer was granted summary disposition by the Trial Court on the basis of rescission. The insurer claimed that the Plaintiff’s policy was void ab initio because she made material misrepresentations in her application regarding the use of her vehicle. The Court of Appeals reversed the order of summary disposition finding that the Defendant insurer failed to properly assert rescission as an affirmative defense and later failed to move to amend its affirmative defenses once specific facts supporting rescission.
The defendant insurer filed fifty-four (54) boilerplate affirmative defenses at the outset of the case. None of these affirmative defenses specifically included rescission based on a material misrepresentation committed by the Plaintiff. The material misrepresentations were identified during discovery when the insurer found out that the plaintiff was using her vehicle for business purposes (instead of personal use) several months after the insurer filed its responsive pleadings. The insurer could have, but did not, seek leave to amend its affirmative defenses.
The Court of Appeals reversed the summary disposition holding that the insurer should have moved to amend its affirmative defenses. The insurer was obligated to adequately assert rescission, including the specific facts for rescission, in an amendment to its affirmative defenses.
Click on the link to read the court ruling in Richardson v Integon National Ins Co.
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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.
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