Michigan Court of Appeals; Docket No. 204533; Unpublished
Judges Sawyer, Holbrook, and Collette; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Cancellation and Rescission of Insurance Policies
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals affirmed the trial court's decision to dismiss the reimbursement claim of American Fellowship against Richard Robbins based on Mr. Robbins' alleged misrepresentations in the procurement of an automobile insurance policy which then subsequently paid benefits to his wife, Michelle, who was injured in an automobile accident. Michelle was previously determined to be entitled to benefits under the policy, because she was an "innocent third party" who was not a participant in the misrepresentation.
After paying benefits to her, American Fellowship sought reimbursement from Richard Robbins for the amount of no-fault benefits paid to Michelle. The American Fellowship policy contained language that if it was discovered that the insured gave false or incomplete statements when applying for insurance, the insured's remedies included payment of a higher premium, cancellation or rescission. The contract did not state that the insurer could also pursue a claim for reimbursement.
The court specifically rejected the argument of American Fellowship that it was entitled to reimbursement "under the doctrine of innocent misrepresentation." For that doctrine to apply, the loss suffered by the party who relied on the misrepresentation must inure to the benefit of the party who made the misrepresentation. In this regard, the court stated,
“While payment of benefits to Michelle Robbins was, practically speaking, beneficial to Richard Robbins, he was not paid benefits under the contract of insurance. In other words, any injury suffered by American did not inure to the benefit of Richard Robbins."
