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Shepherd v State Farm Mutual Automobile Insurance Company and Rosezenia; (COA-UNP, 7/21/1998; RB #2010)

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Michigan Court of Appeals; Docket No. 198339; Unpublished  
Judges Gribbs, Cavanagh, and Saad; Unanimous; Per Curiam  
Official Michigan Reporter Citation:  Not Applicable; Link to Opinion alt  


STATUTORY INDEXING:   
Not Applicable   

TOPICAL INDEXING:   
Cancellation and Rescission of Insurance Policies   


CASE SUMMARY:  
In this unanimous unpublished per curiam Opinion, the Court of Appeals, stating very few facts, rejected defendant's fraud defense which was premised upon plaintiff’s alleged misrepresentation. The court said, "on this record, it cannot be reasonably inferred from the established facts that plaintiff made misrepresentations to defendant, knew or had reason to know of his wife's misrepresentations, actively participated in defrauding defendant, or otherwise engaged in improper conduct relative to his wife's application for insurance. Therefore, under current law, plaintiff is an innocent third party to his wife's misrepresentation."

However, the court went on to express concerns regarding the innocent third party rule in the spousal context. The court stated "we so ruled because we are obliged to follow existing law, but in so doing, we recognize that existing law allows or perhaps encourages fraud. ...We believe the Legislature needs to examine the 'innocent third party' rule in the spousal (and perhaps infra-familial) context."

Judge Cavanagh concurred in the result only.


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