By Zach Gorchow
Gongwer New Service
A pizzeria cannot obtain property protection insurance benefits from the insurer of a parked vehicle that was propelled into the restaurant after another vehicle struck it, the Court of Appeals has ruled.
On Nov. 25, 2022, Kaleigh Gibson took a Ford Escape insured by State Farm Mutual Auto Insurance Company to a Hungry Howie's in Battle Creek and parked it. Jeffrey Gibbs crashed his Ford Transit into the Escape while Gibson was not in the vehicle. He apparently had fallen asleep.
The crash flung the empty Escape into the Hungry Howie's, causing damage. Gibbs later died.
Fremont Insurance Company and Frankenmuth Insurance Company, the insurers for the Hungry Howie's, filed in the Calhoun Circuit Court for no-fault property protection insurance benefits in Fremont Insurance Company v. State Farm Mutual Auto Insurance Company.
The Calhoun court dismissed the case in favor of State Farm, ruling that the Escape was not "involved in the accident" and thus not subject to an insurance claim. Fremont and Frankenmuth appealed.
Court of Appeals Judge Matthew Ackerman, in an opinion signed by Judge Kirsten Frank Kelly and Judge Philip Mariani (COA Docket No. 371046), upheld the lower court. Ackerman said there are a series of Michigan Supreme Court rulings which help define what it means for a vehicle to be "involved in the accident" under the no-fault statute.
Under these precedents, a parked vehicle is not in use as a motor vehicle and the same as a gasoline pump, a wall or a tree.
"Here, the vehicle was not being used as a motor vehicle at the time of the accident and was merely struck and propelled forward – it was entirely passive," Ackerman wrote. "Under this line of authority, the Escape was not 'involved in the accident' under MCL 500.3125, and defendant is not liable for PPI benefits."
The decision was dated Thursday.
Gongwer New Service
A pizzeria cannot obtain property protection insurance benefits from the insurer of a parked vehicle that was propelled into the restaurant after another vehicle struck it, the Court of Appeals has ruled.
On Nov. 25, 2022, Kaleigh Gibson took a Ford Escape insured by State Farm Mutual Auto Insurance Company to a Hungry Howie's in Battle Creek and parked it. Jeffrey Gibbs crashed his Ford Transit into the Escape while Gibson was not in the vehicle. He apparently had fallen asleep.
The crash flung the empty Escape into the Hungry Howie's, causing damage. Gibbs later died.
Fremont Insurance Company and Frankenmuth Insurance Company, the insurers for the Hungry Howie's, filed in the Calhoun Circuit Court for no-fault property protection insurance benefits in Fremont Insurance Company v. State Farm Mutual Auto Insurance Company.
The Calhoun court dismissed the case in favor of State Farm, ruling that the Escape was not "involved in the accident" and thus not subject to an insurance claim. Fremont and Frankenmuth appealed.
Court of Appeals Judge Matthew Ackerman, in an opinion signed by Judge Kirsten Frank Kelly and Judge Philip Mariani (COA Docket No. 371046), upheld the lower court. Ackerman said there are a series of Michigan Supreme Court rulings which help define what it means for a vehicle to be "involved in the accident" under the no-fault statute.
Under these precedents, a parked vehicle is not in use as a motor vehicle and the same as a gasoline pump, a wall or a tree.
"Here, the vehicle was not being used as a motor vehicle at the time of the accident and was merely struck and propelled forward – it was entirely passive," Ackerman wrote. "Under this line of authority, the Escape was not 'involved in the accident' under MCL 500.3125, and defendant is not liable for PPI benefits."
The decision was dated Thursday.
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