Landon v. Titan Insurance

651 N.W.2d 93, 251 Mich. App. 633
CourtMichigan Court of Appeals
DecidedSeptember 10, 2002
DocketDocket 230596
StatusPublished
Cited by15 cases

This text of 651 N.W.2d 93 (Landon v. Titan Insurance) 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
Landon v. Titan Insurance, 651 N.W.2d 93, 251 Mich. App. 633 (Mich. Ct. App. 2002).

Opinion

Smolensk, J.

In this first-party no-fault insurance benefits case, plaintiff appeals as of right from the trial court’s grant of summary disposition in favor of *635 defendant. We reverse and remand for farther proceedings consistent with this opinion.

Plaintiff, Vickie Landon, was involved in an automobile accident on July 28, 1998, at the intersection of Sprinkle Road and Franklin Road in Kalamazoo, Michigan. At that time, plaintiff did not own her own vehicle, she carried no automobile insurance, and she did not live with any relative who carried automobile insurance. Further, at the time of the accident, plaintiff was driving a 1985 Buick automobile owned by her friend Janice Roe. Although the vehicle carried valid license plates, it was uninsured. Therefore, under MCL 500.3172, the Michigan Assigned Claims Facility named defendant to handle any no-fault claims arising from the accident.

Five months before the accident, in February 1998, Roe had allowed the insurance to expire on the Buick, through nonpayment of the premium. Roe decided to sell the vehicle because she was not driving it, it was uninsured, and she had two other vehicles. Because Roe lived in a rural area, she thought that more people would see the vehicle if it were parked in plaintiff’s yard. Therefore, Roe obtained plaintiff’s permission to park the vehicle in her yard. To the best of her recollection, Roe parked the vehicle in plaintiff’s yard in late June or early July 1998, while plaintiff was not at home. Plaintiff testified that she returned from vacation shortly after the Fourth of July holiday, and that Roe’s vehicle was parked in her yard when she returned.

Roe acknowledged that the vehicle was uninsured while parked in plaintiff’s yard. However, she testified that plaintiff did not know about the vehicle’s uninsured status. Roe testified that she tried to telephone *636 plaintiff to inform her that the vehicle was uninsured, but she was never able to contact plaintiff with that information. Furthermore, both Roe and plaintiff testified that they never discussed whether plaintiff was permitted to use the vehicle while it was parked in plaintiffs yard. Therefore, Roe neither gave plaintiff express permission to use the vehicle, nor expressly prohibited plaintiff from doing so. However, during her deposition, Roe equivocated about whether she would have granted plaintiff permission to use the vehicle, had the two discussed the topic. On the one hand, Roe testified that she trusted plaintiff, and that she would not have had any problem loaning plaintiff her vehicle. On the other hand, Roe testified that she would have been concerned about the lack of insurance on the vehicle, and that she probably would have told plaintiff not to drive it for that reason.

Because Roe had only one set of keys to the vehicle, she left the vehicle unlocked and placed the keys under the floor mat. Roe intended that potential purchasers could use the keys to take the vehicle for a test-drive. 1 According to plaintiff, she did not believe that she was expected to accompany potential purchasers on test-drives. Rather, plaintiff believed that she could simply give potential purchasers the keys to Roe’s vehicle. While plaintiff conceded that Roe probably did not expect her to use the vehicle herself, she also testified that, when she used the vehicle on the day of the accident, she did not think that Roe would have a problem with her driving it. Furthermore, plaintiff testified that she had probably driven *637 Roe’s vehicle on prior occasions, before Roe parked it in plaintiff’s yard. 2

In the trial court, defendant filed a motion for summary disposition, arguing that MCL 500.3113(a) prohibited plaintiff’s claim for personal protection insurance (pip) benefits because plaintiff had “unlawfully” taken Roe’s vehicle on the date of the accident. The trial court agreed, concluding that plaintiff “did unlawfully take Ms. Roe’s vehicle.” The trial court reasoned that: (1) Roe had not given plaintiff express permission to use the vehicle, (2) plaintiff did not have any expectation that she could drive the vehicle, clearly understanding that the vehicle was on her property only to be sold, and (3) plaintiff was given the authority to allow potential buyers to test-drive the vehicle, but plaintiff was not herself a potential buyer and was not test-driving the vehicle at the time of the accident. On the basis of those facts, the trial court concluded that plaintiff “exceeded her authority and unlawfully took Ms. Roe’s vehicle.” Accordingly, the trial court granted defendant’s motion for summary disposition, precluding plaintiff’s claim for pip benefits. Plaintiff appeals as of right from that order.

This Court reviews de novo a trial court’s grant of summary disposition under MCR 2.116(C)(10). Smith v Globe Life Ins Co, 460 Mich 446, 454; 597 NW2d 28 (1999). We must consider the affidavits, pleadings, depositions, admissions, and documentary evidence filed in the action or submitted by the parties in the light most favorable to the party opposing the motion. Id. Summary disposition is properly granted under *638 MCR 2.116(C)(10) if the affidavits or other documentary evidence show that there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law. Id.

Plaintiff first argues that the trial court erred in ruling, as a matter of law, that she had “unlawfully” taken Roe’s vehicle for purposes of MCL 500.3113(a). The statute provides, in pertinent part:

A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed:
(a) The person was using a motor vehicle or motorcycle which he or she had taken unlawfully, unless the person reasonably believed that he or she was entitled to take and use the vehicle. [MCL 500.3113(a).]

Under this statutory provision, coverage for PIP benefits will be denied if “(1) a person takes a vehicle unlawfully and (2) that person did not have a reasonable basis for believing that she could take and use the vehicle.” Mester v State Farm Mut Ins Co, 235 Mich App 84, 87; 596 NW2d 205 (1999), citing Bronson Methodist Hosp v Forshee, 198 Mich App 617, 626; 499 NW2d 423 (1993). The trial court granted defendant’s motion for summary disposition, primarily on the basis of a conclusion that plaintiff “did unlawfully take” Roe’s vehicle on the day of the accident. Therefore, resolution of the present case turns on what it means to “unlawfully” take a vehicle in the context of subsection 3113(a).

The phrase “taken unlawfully” is not defined in the no-fault act itself. Mester, supra at 87; Butterworth Hosp v Farm Bureau Ins Co, 225 Mich App 244, 247; 570 NW2d 304 (1997). However, defendant argues that there are two ways that a person can take another’s *639 vehicle “unlawfully,” for purposes of subsection 3113(a).

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Bluebook (online)
651 N.W.2d 93, 251 Mich. App. 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/landon-v-titan-insurance-michctapp-2002.