Michigan Court of Appeals; Docket No. 66609; Published
Judges Walsh, Beasley, and Sullivan; Unanimous
Official Michigan Reporter Citation: 127 Mich App 683; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Private Contract (Meaning and Intent)
Uninsured Motorist Benefits: Uninsured Motorist Coverage in General
Uninsured Motorist Benefits: Arbitration of Uninsured Motorist Claims
Uninsured Motorist Benefits: Physical Contact Requirement
CASE SUMMARY:
This unanimous opinion dealt with a claim for uninsured motorist benefits. The plaintiff claimed he was entitled to such benefits because his truck was run off the road by an unidentified automobile. There was no physical contact between the unidentified vehicle and the plaintiff’s truck. The uninsured motorist policy had a "physical contact requirement" the matter was submitted to arbitration and the arbitrators held that the "physical contact" requirement was not enforceable.
This panel of the Court of Appeals reversed and held that a physical contact requirement in an uninsured motorist policy was enforceable and not violative of public policy. Although the Court of Appeals had previously ruled that physical contact is not required in an action to recover first party no-fault benefits under §3105, the standards regarding the availability of the two kinds of benefits are dissimilar as are the basic purposes of no-fault coverage and uninsured motorist coverage. Because the arbitrators made a legal error which substantially affected the outcome of the case, the arbitration award was set aside.
