Michigan Court of Appeals; Docket No. 189722; Unpublished
Judges Cavanagh, Reilly, and White; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Private Contract (Meaning and Intent)
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals held that a residual liability policy insuring a motor vehicle which only provides coverage for property damage where the damage arises from the ownership, maintenance or use of the specific motor vehicle named under the policy. Citing Wakefield Leasing v Transamerica Insurance Company [Item No. 1811], the Court of Appeals stated,
"Damage arises out of the ownership, maintenance or use of a motor vehicle if (J) the accident arose out of the inherent nature of an automobile, being used as an automobile; (2) the accident arose within the territorial limits of the automobile, and the actual use, loading, or unloading of the vehicle had not terminated; and (3) the automobile did not merely contribute to the cause or condition which produced the damage, but rather, itself produced the injury."
In this case, the insured vehicle was not the instrumentality that caused the property damage, nor did the use of such vehicle produce the damage. Rather, the damage was caused by the failure of the driver of the insured vehicle to communicate certain hazards to the driver of another vehicle pulling a crane. Under these circumstances, the court stated, "Defendant's no-fault policy is not the legal equivalent of a bond guaranteeing the performance of the escort driver.”