Injured? Contact Sinas Dramis for a free consultation.


Grooms v MIC General Insurance Corporation; (COA-UNP, 12/14/1993; RB #1682)


Michigan Court of Appeals; Docket No. 138337; Unpublished  
Judges Neff, Marilyn Kelly, and White; Unanimous; Per Curiam  
Official Michigan Reporter Citation:  Not Applicable; Link to Opinion alt   

Not Applicable

Private Contract (Meaning and Intent)  
Underinsured Motorist Coverage: Underinsured Motorist Coverage in General  
Underinsured Motorist Coverage: Setoffs Applicable to Underinsured Motorist Cases   

In this unanimous unpublished per curiam Opinion, the Michigan Court of Appeals reversed the trial court's order granting summary disposition in favor of plaintiff with respect to a claim for underinsured motorist benefits.  

Plaintiff was injured while riding as a passenger in a car struck by another vehicle. The tortfeasors had third-party liability coverage with limits in the amount of $50,000. Plaintiffs' claim with the tortfeasors was settled for $47,500. Plaintiff submitted a claim with her own no-fault automobile insurance carrier, defendant MIC General, seeking underinsured motorist benefits under her policy, which contained coverage limits of $20,000 per person. Defendant denied the claim under a setoff clause which provided that its obligation to provide underinsured motorist benefits "shall be reduced by all sums paid because of the bodily injury by or on behalf of persons or organizations who may be legally responsible."   

The trial court ruled that the setoff clause was illusory and defeated the reasonable expectations of the insured. However, the Court of Appeals, in reliance of the case of Nankervisv Auto Owners Insurance, 198 Mich App 262 (1993) (Item No. 1594), the court found the setoff clause to be clear, unambiguous and did not defeat the reasonable expectations of the insured. Therefore, the Court of Appeals reversed the ruling of the trial court and ordered judgment to be entered in favor of defendant.  

Judge Neff concurred in the result only.  

Michigan auto accident attorney Stephen Sinas is the lead editor of the appellate case summaries published on this site regarding the Michigan auto insurance law. To learn more about how Stephen Sinas and how the Sinas Dramis Law Firm can help you if you have been injured in a Michigan auto accident, visit

Copyright © 2024  Sinas Dramis Law Firm, George Sinas, Stephen Sinas.
All Rights Reserved.
Login (Publishers Only)