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Gause v Travelers Indemnity Company; (GCC-UNP, 7/15/1976; RB #22)

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Genesee County Circuit Court; File No. 74-33271-CK; Unpublished     
Judge Harry McAra 
Official Michigan Reporter Citation: Not Applicable; Link to Opinion alt   


STATUTORY INDEXING:
Not Applicable

TOPICAL INDEXING:
Not Applicable   


CASE SUMMARY:
The court held that in light of the fact that one of the announced purposes of the no-fault law was to reduce litigation in auto accident cases, the insurer of a negligent driver has the duty to negotiate in good faith the claim of serious impairment of a body function before rejecting such claim. The court premised its holding upon the theory that the insured party is a third party beneficiary of the insurance contract between the insured driver and the insurer, and as such, can enforce the insurer's obligation under basic insurance law to negotiate in good faith with the insured party. The defendant insurance company has appealed the decision.


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