First-Party Auto (PIP)

Court/Case No: Macomb County Circuit Court/15-787-NF

Tried/Argued Before: Judge

Demand: $825,779.32 for Plaintiffs and $120,855 for Intervening Plaintiff

Verdict: $0 – Summary Disposition granted

Name of Judge(s): Honorable James Biernat

Keys to the Case:

Detailed briefing, thorough research, and expertise in interpreting the No-Fault Act and recent precedents such as Bazzi v Sentinel, ___ Mich App ___; ___ NW2d ___ (2016) (Docket No. 320518) enabled defense counsel to establish that the insured’s misrepresentations in her insurance application, regarding her marital status and how many drivers resided in her household, permitted Everest to rescind the policy notwithstanding the claims of so-called innocent third-parties.

This was an action for no-fault benefits filed by Plaintiffs, Ronald and Timothy McClusky, against State Farm and Everest.  Plaintiffs were the husband and son of an Everest insured.  State Farm insured the actual vehicle involved in the accident.  In December of 2015, State Farm initially filed a Motion for Summary Disposition based on priority and we counter-filed stating that the policy was procured on the basis of fraud and misrepresentation (insured failed to mention husband and son on her application for insurance).  State Farm’s Motion for Summary Disposition was granted.  We filed a Motion for Reconsideration and included an Affidavit from our adjuster regarding the materiality of the misrepresentation and it was also denied.  After Bazzi came out, we filed a Motion for Leave to file a Renewed Motion for Summary Disposition.

Judge Biernat granted Everest National Insurance Company’s Renewed Motion for Summary Disposition dismissing Everest; Plaintiffs’ claims totaled $825,779.32 and Intervening Plaintiff’s claim totaled $120,855.00 (and Plaintiff Ronald McClusky was scheduled to undergo an additional surgery this month).

Defense SW attorney(s) Involved in Case: