Michigan Court of Appeals; Docket No. 83524; Published
Judges Danhof, R. M. Maher, and Kingsley; Unanimous; Per Curiam
Official Michigan Reporter Citation: 154 Mich App 745; Link to Opinion 
STATUTORY INDEXING:
No Lien as to Non Motorist Tort Recoveries [§3116]
TOPICAL INDEXING:
No-Fault Insurer Claims for Reimbursement
Private Contract (Meaning and Intent)
CASE SUMMARY:
In this unanimous Opinion by Judge Kingsley, the Court of Appeals addressed a claim by State Farm for reimbursement for personal protection insurance benefits paid through its insured when she fell off a hay wagon during a 4-H Club hayride. State Farm paid $76,574.42 in personal protection benefits, and then commenced this action against the parties it alleged were responsible for the accident which caused the injuries to State Farm's insured. State Farm alleged a claim of contractual subrogation pursuant to its insurance policy with its insured.
The trial court dismissed State Farm's claim for failure to state a claim on which relief could be granted. The basis of the trial court's decision was its interpretation of §3116(2) of the No-Fault Act, which provides three specific situations in which the right of reimbursement may occur in. the context of no-fault insurance benefits. Those situations were conceded by plaintiff to not apply to this case, and State Farm further conceded that it was required to pay benefits to its insured.
In support of its claim, State Farm alleged that its contractual right of subrogation controls, rather than the provisions of §3116 of the No-Fault Act.
In affirming the decision of the trial court, the Court of Appeals held that the reimbursement for personal protection insurance benefits paid for injuries arising from the operation of a "motor vehicle" as that term is defined in the statute, cannot be recovered except as provided in §3116(2). Thus, the subrogation provisions contained in State Farm's policy were deemed invalid.
