20251106_C371046_34_371046.Opn.Pdf

CourtMichigan Court of Appeals
DecidedNovember 6, 2025
Docket20251106
StatusUnpublished

This text of 20251106_C371046_34_371046.Opn.Pdf (20251106_C371046_34_371046.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
20251106_C371046_34_371046.Opn.Pdf, (Mich. Ct. App. 2025).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

FREMONT INSURANCE COMPANY and FOR PUBLICATION FRANKENMUTH INSURANCE COMPANY, November 06, 2025 10:49 AM Plaintiffs-Appellants,

v No. 371046 Calhoun Circuit Court STATE FARM MUTUAL AUTO INSURANCE LC No. 2023-003115-CB CO,

Defendant-Appellee

and

JEFFREY LYNN GIBBS,

Defendant.

Before: K. F. KELLY, P.J., and MARIANI and ACKERMAN, JJ.

ACKERMAN, J.

When is a parked car “involved” in an accident for purposes of no-fault benefits? Does it depend on the type of benefit being sought—such as personal protection insurance (PIP) or property protection insurance (PPI)—or on the specific circumstances that gave rise to the claim? In this case, we address whether a properly parked vehicle that was struck by a moving car and propelled into a pizzeria was “involved in the accident” for purposes of assigning responsibility for PPI benefits under MCL 500.3125. We conclude that, under those circumstances, the parked vehicle functioned no differently than any other inanimate object and was not “involved in the accident.” We therefore affirm the trial court’s grant of summary disposition.

I. FACTS

The pertinent facts are straightforward and undisputed. On the evening of November 25, 2022, Kaleigh Gibson took a Ford Escape owned by Melissa Wells—who was insured through defendant State Farm Mutual Auto Insurance Company—to a Hungry Howie’s pizzeria in Battle

-1- Creek. Jeffrey Gibbs1 apparently fell asleep at the wheel of his Ford Transit and struck Wells’s parked Escape, pushing it into the Hungry Howie’s. Gibson later signed an affidavit stating that the Escape was properly parked in a marked space and that she “was not occupying, entering, or alighting from the Escape at the time it was hit by the other vehicle.”

Plaintiffs Fremont Insurance Company and Frankenmuth Insurance Company provided property insurance to the building owner and the pizzeria, respectively. After paying approximately $64,000 in benefits, they brought this subrogation action in Calhoun Circuit Court seeking no-fault PPI benefits from defendant. Before discovery closed, defendant moved for summary disposition, relying on Gibson’s affidavit to argue that the Escape was not “involved in the accident” within the meaning of Michigan’s no-fault statute. Plaintiffs countered that the trial court should instead grant summary disposition in their favor under MCR 2.116(I)(2). After argument, the trial court granted summary disposition to defendant, concluding that under Turner v Auto Club Ins Ass’n, 448 Mich 22; 528 NW2d 681 (1995), the Escape was not “involved in the accident.” Plaintiffs now appeal.

II. STANDARD OF REVIEW

We review de novo questions of statutory interpretation and rulings on a motion for summary disposition. Ford Motor Co v Woodhaven, 475 Mich 425, 438; 716 NW2d 247 (2006); Maiden v Rozwood, 461 Mich 109, 118; 597 NW2d 817 (1999). The motion in this case was brought under MCR 2.116(C)(10). Under that rule, the court “considers affidavits, pleadings, depositions, admissions, and documentary evidence filed in the action or submitted by the parties, MCR 2.116(G)(5), in the light most favorable to the party opposing the motion,” and may grant summary disposition if “there is no genuine issue in respect to any material fact, and the moving party is entitled to judgment as a matter of law.” Quinto v Cross & Peters Co, 451 Mich 358, 362; 547 NW2d 314 (1996). In requesting summary disposition under MCR 2.116(I)(2), plaintiffs conceded that there was no genuine issue of material fact and asked the court to apply the governing law in their favor based on the undisputed record.

III. ANALYSIS

Michigan’s no-fault insurance system provides two core benefits: personal protection insurance (PIP), which covers bodily injury, and property protection insurance (PPI), which covers property damage.2 Plaintiffs here seek PPI benefits. The statutory language at issue appears in both benefit schemes, and courts have often looked to one for guidance in interpreting the other.

1 When this case was initially filed, Gibbs was named as a defendant. He has since passed away and was dismissed from the case on February 21, 2024. While he remains nominally listed as a defendant, we refer to State Farm as the defendant in this opinion. 2 The acronym “PIP” is generally used to refer to personal protection insurance to avoid confusion with property protection insurance. See Roberts v Farmers Ins Exch, 275 Mich App 58, 66 n 4; 737 NW2d 332 (2007).

-2- A. STATUTORY LANGUAGE

The general rule of no-fault insurance in Michigan is that “the owner or registrant of a motor vehicle required to be registered in this state shall maintain security for payment of benefits under personal protection insurance and property protection insurance.” MCL 500.3101(1). PPI benefits are available “for accidental damage to tangible property arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle.” MCL 500.3121(1). The order of priority for PPI claims is governed by MCL 500.3125, which provides:

A person suffering accidental property damage shall claim property protection insurance benefits from insurers in the following order of priority: insurers of owners or registrants of vehicles involved in the accident; and insurers of operators of vehicles involved in the accident.

Plaintiffs contend that the Escape was “involved in the accident” under this provision, so defendant, as the insurer of the vehicle’s owner, is responsible for paying PPI benefits. Defendant disagrees, arguing that the Escape was not “involved” within the statutory meaning and therefore does not fall within § 3125’s order of priority.

Although not directly implicated in this case, key portions of this statutory language are repeated in the PIP provisions of the statute. For example, MCL 500.3105(1) provides that PIP benefits are payable “for accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle.” In the PIP context, however, that provision is expressly limited by the parked vehicle exclusion of MCL 500.3106(1), which states that “[a]ccidental bodily injury does not arise out of the ownership, operation, maintenance, or use of a parked vehicle as a motor vehicle” absent certain enumerated exceptions. Relevant here, the PIP framework also contains a provision to deter “free riders,” which bars PIP benefits to an uninsured owner or registrant of a motor vehicle that was “involved in the accident.” MCL 500.3113(b).

B. SUPREME COURT AUTHORITY

A series of Michigan Supreme Court decisions sheds light on when a vehicle is “involved in the accident” under the no-fault act. Defendant relies on this line of authority, and we agree that it compels the result here.

The series begins with Miller v Auto-Owners Ins Co, 411 Mich 633; 309 NW2d 544 3 (1981). There, the Court confronted a different paradox: Under MCL 500.3105(1), PIP benefits are available “for accidental bodily injury arising out of the . . . maintenance . . . of a motor vehicle as a motor vehicle,” but under MCL 500.3106(1), PIP benefits are not available for injuries that “arise out of the . . . maintenance . . . of a parked vehicle as a motor vehicle” absent certain narrow exceptions. “Since most, if not all, maintenance is done while the vehicle is parked, and since the

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