Shiroka v. Farm Bureau General Insurance

740 N.W.2d 316, 276 Mich. App. 98
CourtMichigan Court of Appeals
DecidedJune 19, 2007
DocketDocket No. 269210
StatusPublished
Cited by11 cases

This text of 740 N.W.2d 316 (Shiroka v. Farm Bureau General 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
Shiroka v. Farm Bureau General Insurance, 740 N.W.2d 316, 276 Mich. App. 98 (Mich. Ct. App. 2007).

Opinion

PER CURIAM.

Defendant Farm Bureau General Insurance Company of Michigan appeals by leave granted the trial court’s order denying its motion for a change of venue. We reverse.

I. BASIC PACTS AND PROCEDURAL HISTORY

Plaintiff Agetina Shiroka’s claims arise out of injuries she sustained in an automobile accident with [100]*100defendant Robert Allen Kennedy. In late April 2005, Shiroka was driving her car in Macomb County when a car driven by Kennedy struck her car. Shiroka filed suit in the Wayne Circuit Court against Kennedy and Farm Bureau, the provider of her automobile insurance policy. The three-count complaint alleged that (1) Farm Bureau had unreasonably refused to pay or delayed in paying Shiroka the no-fault personal protection insurance (PIP) benefits she was owed pursuant to their contract for no-fault automobile insurance, (2) Farm Bureau was obligated to pay Shiroka’s uninsured motorist claim because Kennedy was uninsured and Shiroka had uninsured motorist coverage, and (3) Kennedy had failed to drive with reasonable care and was hable under a negligence theory for injuries he caused Shiroka.

Farm Bureau filed its answer and affirmative defenses, asserting general denials of liability. Kennedy, however, did not file a timely answer, and Shiroka filed a default against him. Although a review of the lower court’s electronic register of actions does not show that the trial court entered a default judgment against Kennedy, Shiroka did file a motion for entry of a default judgment against Kennedy, and both Farm Bureau and the trial court acknowledged that Kennedy was in default.

Following its answer, Farm Bureau filed a motion to change venue. Farm Bureau first pointed out that its insurance policy specifically provided that court actions regarding uninsured motorist coverage and benefits must take place in the venue of the county and state in which the policy was purchased. Because Shiroka’s insurance policy was purchased in Macomb County, Farm Bureau maintained that she was contractually required to pursue her claims in Macomb County and [101]*101not Wayne County. Second, Farm Bureau argued that MCL 600.1629(1), the statute regarding venue in tort actions, governed this case and that Macomb County was therefore the proper venue.

Shiroka filed her response, arguing that the venue provision in her contract with Farm Bureau was void pursuant to the governing caselaw. Shiroka further maintained that the tort venue statute was not the proper venue statute to apply in this case because her claims against Farm Bureau were contractual and not tort claims. Accordingly, Shiroka argued that MCL 600.1621, the venue statute for cases involving contract claims, governed the instant case and provided that Wayne County, a county in which Farm Bureau conducted business, was the appropriate venue.

At the hearing on Farm Bureau’s motion, the trial court indicated that Shiroka’s claims against Farm Bureau were contractual in nature. As such, the trial court reasoned, MCL 600.1621 applied and provided that venue was proper in Wayne County In response to Farm Bureau’s argument that Shiroka’s claim against Kennedy sounded in tort, the trial court pointed out that Kennedy, who never objected to venue, had defaulted. The trial court concluded that because the only claims remaining were contractual claims, the tort venue statute was inapplicable. Accordingly, the trial court entered an order denying Farm Bureau’s motion to change venue.

In late March 2006, Farm Bureau filed with this Court an application for leave to appeal the trial court’s order denying its motion to change venue, a motion for immediate consideration, and a motion for peremptory reversal. This Court entered an order granting Farm Bureau’s application for leave to appeal and motion for immediate consideration, but denying its motion for [102]*102peremptory reversal.1 Farm Bureau then moved to expedite the appeal, but in lieu of granting Farm Bureau’s motion, this Court entered an order staying the trial court proceedings.2

II. CHANGE OF VENUE

A. STANDARD OF REVIEW

Farm Bureau’s sole contention on appeal is that the trial court erred when it denied its motion to change venue to Macomb County because Shiroka’s claims include a tort cause of action, mandating the application of the tort venue statute, which provides that venue is proper in Macomb County. “This Court reviews a trial court’s ruling in response to a motion to change improper venue under the clearly erroneous standard.”3 A decision is clearly erroneous if the reviewing court is left with the definite and firm conviction that a mistake has been made.4 This Court reviews de novo the trial court’s interpretation of statutes governing venue.5

B. RULES OF STATUTORY INTERPRETATION

This appeal involves the interpretation of the venue statutes. “The primary goal of statutory interpretation is to ascertain and give effect to the intent of the Legislature.”6 Initially, this Court reviews the language [103]*103of the statute itself.7 “If the statute is unambiguous on its face, the Legislature is presumed to have intended the meaning plainly expressed and further judicial interpretation is not permitted.”8 “ ‘Only where the statutory language is ambiguous may a court properly go beyond the words of the statute to ascertain legislative intent.’ ”9

An ambiguity of statutory language does not exist merely because a reviewing court questions whether the Legislature intended the consequences of the language under review. An ambiguity can be found only where the language of a statute as used in its particular context has more than one common and accepted meaning. Thus, where common words used in their ordinary fashion lead to one reasonable interpretation, a statute cannot be found ambiguous.

C. THE INSURANCE CONTRACT VENUE PROVISION

We conclude that Farm Bureau’s claim that the venue provision in its insurance contract with Shiroka should control is without merit. Michigan precedent establishes that “contractual provisions establishing venue for potential causes of action that may arise after the contract is executed are unenforceable.”11 In Omne Financial, Inc v Shacks, Inc, the Michigan Supreme Court pointed out that such provisions are in conflict with existing court rules and statutory venue provisions.12 Accordingly, [104]*104given that the provision at issue is unenforceable, it plays no role in determining venue for this case.

D. CONTRACT VERSUS TORT

Venue is determined at the time the suit is filed and is not normally defeated by subsequent events.13 Shiroka’s complaint alleged that (1) Farm Bureau was obligated to pay her PIP benefits pursuant to their contract and the no-fault act, (2) Kennedy was liable for his third-party negligence, and (3) Farm Bureau was responsible for uninsured motorist benefits. Shiroka thus raised multiple causes of action,14

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740 N.W.2d 316 (Michigan Court of Appeals, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
740 N.W.2d 316, 276 Mich. App. 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shiroka-v-farm-bureau-general-insurance-michctapp-2007.