Tommie McMullen v. Citizens Insurance Company
332373
| Mich. Ct. App. | Jun 13, 2017Background
- Plaintiff was a passenger in a stolen Mercury Sable that crashed; vehicle donated to Purple Heart, later owned by dealer KBS Auto Sales.
- KBS maintained a Markel no-fault policy; Farmers was assigned as insurer of last resort for plaintiff.
- Plaintiff was not a named beneficiary under any no-fault policy and did not live with a named beneficiary.
- The trial court granted summary disposition in favor of Markel and denied Farmers’ cross-claim; Farmers sought reconsideration and summary disposition on cross-claim, which were denied.
- Court reversed and remanded, holding Markel is insurer of highest priority and Mercury was a covered auto under Markel’s policy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Priority of PIP payment under MCL 500.3114(4). | Markel is the insurer of highest priority as owner’s insurer. | Farmers argues Markel is not owner’s insurer priority due to registration issues. | Markel is insurer of highest priority; Mercury was covered auto; reversal and remand for Farmers' benefit. |
| Dealer-vehicle registration and “covered auto” status under no-fault. | Mercury, owned by a dealer, should be treated as covered auto. | Mercury need not be registered if dealer plates are used; special plate requirement governs. | Mercury was required to be registered; vehicle was a covered auto under Markel’s policy. |
| Effect of related cases MEEMIC, Parks, and Titan on the outcome. | Precedent supports priority for owner’s insurer. | Certain cases distinguish the instant facts from Parks and MEEMIC. | Distinguishing MEEMIC and Parks supports Markel’s priority in this case. |
Key Cases Cited
- Farmers Ins Exch v Farm Bureau Gen Ins Co of Mich, 272 Mich App 106 (2006) (insurer of owner may have priority under MCL 500.3114(4) when vehicle not insured)
- Titan Ins Co v American Country Ins Co, 312 Mich App 291 (2015) (insurer of other vehicles owned by same entities can owe priority)
- Parks v Detroit Auto Inter-Ins Exch, 426 Mich 191 (1986) (assumed MCL 500.3114(4) not apply; dicta not binding)
- MEEMIC Ins Co v Mich Millers Mut Ins, 313 Mich App 94 (2015) (owner insurer not liable where vehicle not driven; distinguishable on facts)