Michigan Court of Appeals; Docket No. 29993; Published
Judges Maher, Borchard, and N. J. Kaufman; 2-1 (with Kaufman Dissenting)
Official Michigan Reporter Citation: 80 Mich App 125; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Private Contract (Meaning and Intent)
Uninsured Motorist Benefits: Setoffs Applicable to Uninsured Motorist Case
CASE SUMMARY:
The Court of Appeals, in a 2-1 decision with Judge Kaufman dissenting, upheld an uninsured motorist provision in Plaintiff’s no-fault policy which permits reduction of the insurer's liability under uninsured motorist coverage by whatever payments the insurer made to the injured party under personal protection coverage. The Court noted that uninsured motorist coverage is no longer mandatory in light of the no-fault statutes repeal of the uninsured motorist statute (MCLA 500.310). Similar provisions as those contained in Plaintiff’s policy are found in other state no-fault statutes and have been upheld in those other states. Due to the fact mat the policy language involved in this case is unambiguous in permitting such a setoff, the Court felt it should be allowed.
Judge Kaufman dissented on the grounds that such a policy clause is unconscionable and should be invalidated on the grounds that it renders the uninsured motorist coverage "totally worthless." Any amount obtainable under the uninsured motorist provision would be offset by its inclusion in the personal protection benefits.
