Michigan Court of Appeals; Docket #225743; Unpublished
Judges Meter, Markey and Owens; unanimous; per curiam
Official Michigan Reporter Citation: Not applicable, Link to Opinion 
STATUTORY INDEXING:
Exception for Commercial Vehicles [3114(2)]
TOPICAL INDEXING:
Not applicable
CASE SUMMARY:
In this unanimous unpublished per curiam opinion, the Court of Appeals dealt with a no-fault coverage dispute arising out of a van accident with respect to which several van occupants were killed and others injured. National Fleet Liquidators (NFL) provided the van as transportation home for drivers who would transport vehicles for NFL to tent sales at various locations. At issue was which of several insurance companies were liable for benefits due or previously paid to the injured parties. Resolution of that issue depended in part on whether the van’s occupants were independent contractors or NFL employees. The court found that they were independent contractors. The next issue was whether NFL was in the business of transporting passengers within the meaning of section 3114(2) of the No-Fault Act. In general, a party first turns to his own insurance company for receipt of no-fault benefits. However, certain exceptions exist to that general rule, one of which is contained in section 3114(2). That section provides that a person suffering accidental bodily injury while an operator or passenger “of a motor vehicle operated in the business of transporting passengers shall receive the personal insurance benefits to which the person is entitled from the insurer of the motor vehicle.” If this exception applies, the motor vehicle’s insurer is responsible for paying no-fault benefits. The Court of Appeals concluded that NFL was not in the business of transporting passengers. Rather, its primary business was the buying and selling of cars. NFL’s transportation of the drivers was merely incidental to its overall business. The court held, “Although utilizing drivers may have been integral to NFL’s chosen method of operation, NFL could have delivered the cars to their destination in another manner.” Therefore, the court concluded that NFL was not in the business of transporting passengers within the meaning of section 3114(2).
