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Ferszt v Prestige Casualty Insurance Company; (USD-UNP, 8/31/1989; RB #1317)


United States District Court, Eastern District; Case No. 88-CV-72855-DT;    
Judge Lawrence P. Zatkoff; Unpublished    
Official Michigan Reporter Citation:  Not Applicable; Link to Opinion alt    

Not Applicable

Leased / Rented Vehicles
Private Contract (Meaning and Intent)     

In an unpublished memorandum opinion, U.S. District Judge Zatkoff enforced an unusual "other insurance clause" contained in a policy issued to a semi-truck owner, where the truck involved in the accident was covered by insurance issued by another insurer to a lessee of the truck, as required by Interstate Commerce Commission Rules. The trial court granted summary disposition in favor of the owner's insurer, whose policy only covered the truck when there was no other coverage available which would satisfy Michigan minimum insurance requirements, or where the truck was being used for the driver's personal use or "bobtailing" (i.e., being operated without a trailer).

This case arose out of an accident involving a leased semi-truck resulting in injuries to a passenger of the truck. The injured passenger brought a declaratory relief action against the insurer that issued a policy to the truck owner.
At the time of the accident, the truck was being operated by the owner pursuant to a lease arrangement. Since the lessee of the truck had applicable insurance coverage pursuant to ICC regulations which satisfied Michigan insurance requirements, the other insurance clause in the owner's policy was enforceable to exclude coverage.

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