United States District Court, Western District of Michigan; Case No. l:92-CV-778;
Judge Douglas W. Hillman; Unpublished
Official Federal Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Compulsory Insurance Requirements for Owners or Registrants of Motor Vehicles Required to Be Registered [§3101(1)]
Ways to Provide Required Security [§3101(3) + 3101(4)]
Nature and Scope of PPI Benefits (Property Damage and Loss of Use) [§3121(1)]
State and Federal Claims [§3121]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this Opinion, the Court granted defendant United States' motion to dismiss in a subrogation claim brought by plaintiff insurance companies for property damage to the property of their insured.
This case arose out of an accident involving a United States Army Reserve vehicle. An inoperable Army truck was being towed by another truck when it broke loose and crashed into a retail clothing store causing property damage to the building. Plaintiff Westfield and Frankenmuth insured the building and paid claims to the property owner. The insurance companies brought suit as subrogees of the building owner under the Federal Torts Claims Act.
The plaintiff insurers brought tort claims against the United States Government as subrogees of their insureds. The first issue addressed was whether the no-fault act applied to actions brought against the federal government, because, if so, the tort immunity provisions of §3135(2) would operate to bar the claims. The court ruled that the no-fault act was applicable, despite the fact that United States Government vehicles are not subject to Michigan vehicle registration and insurance requirements.
The plaintiff insurers argued in the alternative that if the Michigan no-fault act was applicable, the United States government should be considered an uninsured entity under §3101 of the Michigan no-fault act, since its vehicles are not covered under any policy of insurance, and therefore, not immune from tort liability. However, federal law provides the United States will be liable for claims arising out of federal government employees operating motor vehicles and, therefore, the court found that the United States Government is to be treated as a "self-insured entity" for purposes of the Michigan no-fault act.
While the court found that the United States Government is subject to the application of the Michigan no-fault act, it ruled that the United States government was not liable for no-fault first party property protection coverage under §3121. The court noted that the United States government has not waived immunity for claims based upon strict liability and the Michigan no-fault property damage provision, §3121 is one of strict liability. As the United States has not waived its immunity for claims brought under strict liability, it cannot be held liable for property damage claims brought under the Michigan no-fault act.
