Michigan Court of Appeals; Docket No. 312872; Published
Judges O’Connell, Wilder and Meter; Unanimous, Per Curiam
Official Michigan Reporter Citation: ___ Mich App ___; Link to Opinion 
STATUTORY INDEXING:
Reimbursement to Servicing Insurer or ACF [§3172(3)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous published per curiam Opinion regarding Defendant Farm Bureau’s claim for reimbursement under MCL 500.3172(1), the Court of Appeals held that Farm Bureau was entitled to be reimbursed from Defendant American Guarantee for benefits paid by Farm Bureau as the servicing insurer, because the plaintiff's underlying claim for no-fault benefits was no longer at issue, and there was no dispute that American Guarantee was the priority insurer under MCL 500.3114(5)(a).
The plaintiff in this case had ambulatory difficulties and was confined to a motorized scooter wheelchair. He was injured while being transported to a dialysis appointment by defendant Enjoi Transportation. At the time the plaintiff was injured, he was situated in his wheelchair scooter. At some point during the transport, he fell from the scooter and sustained injuries. Following the accident, the plaintiff sought to recover no-fault benefits from defendant American Guarantee and Liability, which insured the Enjoi Transportation vehicle. American Guarantee denied the claim, contending that the plaintiff’s injuries did not “arise out of the ownership, operation, or maintenance of a motor vehicle as a motor vehicle,” and/or alternatively, that the plaintiff “did not suffer any accidental bodily injuries” on the date of the accident. Following American Guarantee’s denial, the plaintiff sought no-fault benefits through the assigned claims facility, which assigned plaintiff’s claim to defendant Farm Bureau. Farm Bureau adjusted the claim, paid benefits to the plaintiff, and subsequently sought reimbursement from American Guarantee. At oral argument, American Guarantee apparently conceded that the plaintiff’s entitlement to benefits was no longer an issue, and that the only remaining dispute concerned whether Farm Bureau was entitled to reimbursement. The Court held that Farm Bureau was entitled to be reimbursed under the language of MCL 500.3172(1). In so holding, the Court reasoned:
MCL 500.3172(1) indicates that the insurer to which the claim is assigned “is entitled to reimbursement from the defaulting insurers to the extent of their financial responsibility.” Here, American Guarantee’s “financial responsibility” is necessarily tied to manner in which Farm Bureau, as the initial adjusting insurer, adjusted the claim.
The Court then noted that “[b]ecause American Guarantee admitted that it insured the Enjoi vehicle at the time of the incident, the court properly determined that American Guarantee had priority to pay for Williams’s benefits. The strength of Williams’s underlying claim for no-fault benefits was no longer at issue. Therefore, there was no genuine issue of material fact that Farm Bureau was entitled to reimbursement from American Guarantee, and the trial court correctly granted summary disposition to Farm Bureau.”
