United States District Court, Eastern District of Michigan; Case #15-10442
Hon. Terrence Berg
Official Michigan Reporter Citation: Not Applicable; Opinion Not Available 
STATUTORY INDEXING:
Disqualification for Uninsured Owners or Registrants of Involved Motor Vehicles or Motorcycles [§3113(b)]
Exception for Occupants [§3114(4)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this Federal written Opinion involving a declaratory action seeking a determination of coverage for a Florida accident, Judge Terrence Berg held that a default judgment against defendant-insureds was properly entered because defendant-insureds failed to respond to the suit or otherwise failed to appear.
Plaintiff in this case issued a no-fault policy to Kristin and David Epplett of Spring Lake, Michigan. All the defendants are individuals domiciled or residing in Florida. Kristin and David Epplett are defendant Trevor Epplett’s parents. Trevor was not a named insured on his parent’s Michigan no-fault policy with plaintiff, Amica Mutual, but was listed as a driver of the Epplett’s four insured vehicles. While in Florida, Trevor was driving a 2000 Ford Explorer with the other defendants as passengers, when the Explorer was in an accident. The Explorer was not one of the vehicles insured by plaintiff under the no-fault policy issued to Trevor’s parents. Defendants filed claims for no-fault benefits. Plaintiff sought a declaration that it did not owe benefits to defendants. When defendants did not answer or otherwise respond to plaintiff’s complaint, plaintiff sought and obtained defaults against each defendant. Plaintiff then filed this motion for default as to all defendants. Defendants did not appear in this action or respond in any way.
Judge Berg granted plaintiff’s motion for default judgment, holding Amica did not owe PIP benefits to defendants. In finding that default was proper, the judge said:
“Here, Defendants were personally served with the Complaint and have failed to answer or otherwise respond. The Clerk has properly entered a default against each Defendant and, as a result, Defendants are bound on the issue of liability as to the factual allegations in the Complaint.”
Judge Berg then concluded the allegations were deemed admitted. He reasoned:
“In short, Plaintiff’s allegations that (1) these nonresident Defendants were involved in a motor vehicle accident in Florida on September 28, 2015 in which (2) Defendant Epplett was driving an uninsured vehicle are deemed admitted. Because the vehicle Defendant Epplett was driving was not covered under his parent’s insurance policy issued by Plaintiff when he and the remaining Defendants were involved in an accident in Florida, Defendant Epplett is not entitled to Michigan no-fault benefits from Plaintiff. … Default judgment is therefore appropriate against Defendant Epplett because it is undisputed that he was the owner of the uninsured vehicle involved in the crash. … The remaining Defendants are also not entitled to such benefits from Plaintiff because Plaintiff was not Defendant Epplett’s or the vehicle’s insurer on the day of the accident.”
