Supreme Court Leave Denial May Be Final Verdict on “Bahri Motions”

In Bahri v IDS Prop Cas Ins Co, 308 Mich App 420 (2014) the Court of Appeals held that a fraud provision in an insurance contract could bar a claim for PIP benefits when the policyholder made material misrepresentations in the presentation of their claim. The claimant in Bahri sought replacement services on a date that was before the date of the accident.

Bahri significantly expanded the use of summary disposition in PIP cases because under Bahri, if it was shown that the insured committed fraud in making any part of their claim, the entire policy could be void as a matter of law, resulting in dismissal of the suit.

The Court of Appeals subsequently limited Bahri by holding in Haydaw v Farm Bureau Ins Co, 332 Mich App 719 (2020) that such fraud provisions do not speak to misrepresentations made after a suit for no-fault benefits is filed (such as at a deposition or in interrogatory responses).

On June 2, 2021, the Michigan Supreme Court denied Farm Bureau’s leave application in Haydaw, Docket No. 162077. This indicates that recent Court of Appeals decisions limiting Bahri will continue to be controlling for the foreseeable future.

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