Donna Waechter v. Tamika Smith
329103
| Mich. Ct. App. | Nov 8, 2016Background
- On May 1, 2013, Donna Waechter was injured in a car accident while driving a 2007 BMW she purchased in 2012; Diane Spahn cosigned and both Spahn and Waechter were the only owners on the title.
- Gregg Waechter (ex-husband) had an auto insurance policy through Citizens that listed Gregg as the sole named insured and listed Donna as a principal driver; Gregg was not an owner of the BMW.
- Spahn did not insure the BMW; she separately had a State Farm policy on a different vehicle (a Buick).
- Beaumont Health System sued State Farm for reimbursement of medical services provided to Waechter; Waechter sued Citizens and State Farm for PIP benefits.
- State Farm moved for summary disposition under MCR 2.116(C)(10), arguing Waechter was ineligible for PIP under MCL 500.3113(b); trial courts granted the motions and cases were consolidated on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Waechter is entitled to PIP benefits where the BMW’s owners (Waechter and Spahn) did not maintain coverage, but a non-owner (Gregg) had a policy covering the vehicle | Waechter: Citizens insured the BMW via Gregg’s policy, so the vehicle had security and she is entitled to PIP | State Farm/Citizens: MCL 500.3113(b) bars recovery because none of the vehicle’s owners maintained required security | Court: MCL 500.3113(b) bars recovery when no owner maintains the required coverage; Waechter not entitled to PIP |
| Whether Beaumont can recover from State Farm under the priority rules (MCL 500.3114(4)) because Spahn had a separate State Farm policy on another car | Beaumont: MCL 500.3114(4) gives priority to the insurer of a vehicle owned/registered by the owner occupied; Spahn’s State Farm coverage on a different vehicle creates liability | State Farm: Priority scheme in MCL 500.3114 applies only if claimant is entitled to PIP; Waechter is ineligible under MCL 500.3113(b), so no liability to Beaumont | Court: Because Waechter is ineligible for PIP under 3113(b), 3114(4) priority is irrelevant and Beaumont cannot recover from State Farm |
Key Cases Cited
- Iqbal v. Bristol West Ins. Group, 278 Mich App 31 (owner need not personally procure coverage if vehicle itself is covered by an owner)
- Barnes v. Farmers Ins. Exch., 308 Mich App 1 (when no owner maintains required coverage, owners may not recover PIP)
- Pennington v. Longabaugh, 271 Mich App 101 (summary-disposition standard under MCR 2.116(C)(10))