Michigan Court of Appeals; Docket #300471; Unpublished
Judges Murphy, Fitzgerald, and Meter; unanimous; per curiam;
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Uninsured Motorist Benefits – Exclusions From Uninsured Motorist Benefits
CASE SUMMARY:
In this unanimous unpublished per curiam Opinion, the Michigan Court of Appeals affirmed the trial court's order denying Farm Bureau's motion for summary disposition seeking to dismiss plaintiff's claim for uninsured motorist benefits on the basis that the subject insurance policy contained an "escape clause" that excluded coverage. Specifically, the Court of Appeals affirmed the trial court's decision on the basis that Farm Bureau's uninsured motorist policy was primary to the plaintiff's claim and that any coverage the plaintiff may have had through a State Farm policy was only available upon exhaustion of the primary coverage provided under the Farm Bureau policy.
The plaintiff in this case was severely injured while riding as a passenger in a vehicle operated by John Powers. Mr. Powers' vehicle was struck by an uninsured vehicle owned by Matthew Vaughn and operated by David Vaughn. At the time of the accident, Farm Bureau insured the Powers vehicle and provided uninsured motorist coverage with a policy limit of $500,000. Furthermore, plaintiff was insured under her own automobile insurance policy through State Farm which provided her uninsured motorist coverage up to $100,000.
Plaintiff ultimately filed suit against Farm Bureau, seeking payment of uninsured motorist benefits. Farm Bureau moved for summary disposition arguing that its insurance policy contained an "escape clause" that excluded coverage. The plaintiff opposed Farm Bureau's motion and argued that she did not have uninsured motorist coverage available under her State Farm policy, because State Farm's coverage was excess, meaning that it did not apply until Farm Bureau's coverage was exhausted. The language of the escape clause specifically stated, "If there is other uninsured motorist coverage available to an insured, other than you or any of your relatives, for bodily injuries such insured sustains while occupying your covered auto, this coverage will not apply." On the other hand, plaintiff's uninsured motorist policy through State Farm stated in pertinent part, "Except as provided in item 2 above, the uninsured motor vehicle coverage provided by this policy applies as excess coverage."
In affirming the trial court's order denying Farm Bureau's motion for summary disposition, the Court of Appeals found that the excess "other insurance" clause within the State Farm uninsured motorist policy meant that State Farm was not liable for uninsured motorist coverage when other uninsured motorist coverage applies. The court ultimately found that a condition precedent to the availability of State Farm's uninsured motorist benefits was the exhaustion of any primary coverage provided by Farm Bureau. In this regard, the court ultimately held:
This is an excess "other insurance" clause and limits State Farm's liability when other uninsured motor vehicle coverage applies. "[A] policy containing an excess 'other insurance' clause is not considered to be other valid and collectible primary insurance . . . ." St Paul Fire & Marine Ins Co v American Home Assurance Co, 444 Mich 560, 575; 514 NW2d 113 (1994). '"Where an excess clause is inserted in a typical . . . liability insurance policy the usual intent of the insurer is that the policy will afford only secondary coverage when the loss is covered by 'other insurance.'" Id. at 576, quoting Jones v Medox, Inc, 430 A2d 488, 491 (DC App, 1981). Under these circumstances, plaintiff does not have other available, i.e. "readily obtainable; accessible," uninsured motorist coverage through State Farm. Rather, State Farm's uninsured motorist coverage is only available upon exhaustion of the primary coverage provided by Farm Bureau. In other words, there is a condition precedent to the availability of State Farm's uninsured motorist benefits, i.e., the exhaustion of primary coverage provided by Farm Bureau. Consequently, Farm Bureau's escape clause does not apply."
