Keith Bronner v. City of Detroit, 968 N.W.2d 310

On Sept. 25, 2014, a City of Detroit bus struck a GFL (then Rizzo) garbage truck; passenger Keith Bronner sought PIP benefits.
The City self‑insured its buses under MCL 500.3101(5) and paid roughly $58,000 in PIP benefits before Bronner sued.
The City had a services contract with GFL containing an indemnification clause requiring GFL to indemnify the City for liabilities caused by GFL’s negligence.
After Bronner sued, the City filed a third‑party claim against GFL; the trial court ordered GFL to reimburse the City $107,529.29 following settlement.
The Court of Appeals reversed, holding the indemnity agreement was precluded by Michigan’s no‑fault scheme; the Michigan Supreme Court reversed the Court of Appeals and upheld the indemnity agreement.
Justice Viviano concurred, agreeing with the result but urging a narrower, text‑focused (field‑preemption) analytical framework and warning against overreliance on broad statutory purpose.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether an insurer (here a municipal self‑insurer) may enforce a contractual indemnity with a vendor to recover no‑fault PIP benefits the insurer paid for injuries caused by the vendor	City: indemnity is a valid, ordinary contract term; it does not alter insurance availability or beneficiaries’ rights and is therefore enforceable	GFL: indemnity improperly shifts the City’s statutory no‑fault obligations and is void as contrary to the no‑fault act and public policy	Supreme Court: Enforceable. An agreement requiring a vendor to reimburse an insurer for mandatory benefits it paid due to the vendor’s negligence does not relate to vehicle insurance availability or the payment of no‑fault benefits and therefore does not conflict with the Insurance Code.

Citizens Ins. Co. of Am. v. Federated Mut. Ins. Co., 448 Mich 225 (1995) (no‑fault policy term cannot unilaterally shift owner’s statutory responsibility to an operator/borrower).
State Farm Mut. Auto. Ins. Co. v. Enterprise Leasing Co., 452 Mich 25 (1996) (lease provisions shifting required no‑fault coverage from vehicle owner to renter are unenforceable).
Universal Underwriters Ins. Co. v. Kneeland, 464 Mich 491 (2001) (upheld a borrower’s agreement to assume nonmandatory collision damages; draws a limit to anti‑shifting rules).
Cruz v. State Farm Mut. Auto. Ins. Co., 466 Mich 588 (2002) (contract provisions affecting payment procedures—e.g., EUOs—must be harmonized with statutory duties; permissible if consistent with no‑fault goals).
Terrien v. Zwit, 467 Mich 56 (2002) (public‑policy invalidation of contract provisions is a question of law reviewed de novo).