Michigan Supreme Court; Docket No. 59774; Published
Judge Halford I. Streeter; Per Curiam
Official Michigan Reporter Citation: 404 Mich 51; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Motor Vehicle Code (Financial Responsibility Act) (MCL 257.501, et seq.)
CASE SUMMARY:
In a per curiam decision the Michigan Supreme Court reversed the decision of the trial court and the Court of Appeals which upheld a provision in an automobile owner's liability insurance policy excluding recovery for bodily injury by the insured owner who was a passenger in the car as against a driver who was driving with the owner's permission. The Supreme Court held that such exclusions are violative of public policy because their operation prevents the coverage which is required by specific sections of the financial responsibility law [MCLA 257.520(b)(2)]. Accordingly, the Court ruled there was residual liability insurance coverage and a legal defense available to the driver of the insured vehicle from which the owner of said vehicle could seek tort compensation.
