Iqbal v. Bristol West Ins. Group

• Decision Date: 14 February 2008
• Docket Number: Docket No. 275847.
• Citation: 278 Mich.App. 31,748 N.W.2d 574
• Parties: Wasim IQBAL, Plaintiff-Appellee, and Oakwood Hospital and Heritage Hospital, Intervening Plaintiffs, v. BRISTOL WEST INSURANCE GROUP, Defendant-Appellant, and Auto Club Insurance Association of Michigan and Citizens Insurance Company of America, Defendants-Appellees.
• Court: Court of Appeal of Michigan — District of US

748 N.W.2d 574

278 Mich.App. 31

Wasim IQBAL, Plaintiff-Appellee, and Oakwood Hospital and Heritage Hospital, Intervening Plaintiffs, v. BRISTOL WEST INSURANCE GROUP, Defendant-Appellant, and Auto Club Insurance Association of Michigan and Citizens Insurance Company of America, Defendants-Appellees.

Docket No. 275847.

Court of Appeals of Michigan.

Submitted February 5, 2008, at Detroit.

Decided February 14, 2008, at 9:00 a.m.

Hathaway & Hathaway (by Daniel A. Hathaway), Allen Park, for Wasim Iqbal.

Plunkett & Cooney, P.C. (by Ernest R. Bazzana and Hans H.J. Pijls), Detroit, for Bristol West Insurance Company.

Schoolmaster, Hom, Killeen, Siefer, Arene & Hoehn (by Elaine I. Harding), Detroit (John A. Lydick, of counsel), Bingham Farms, for Auto Club Insurance Association of Michigan.

Before: FITZGERALD, P.J., and MURPHY and BORRELLO, JJ.

MURPHY, J.

Defendant Bristol West Insurance Group appeals by delayed leave granted orders of the trial court granting summary disposition in favor of plaintiff and the remaining parties and against Bristol in this case arising out of a motor-vehicle accident in which plaintiff, the driver of a car that was rear-ended at a stoplight, was injured. Plaintiff received medical treatment for his injuries from intervening plaintiffs Oakwood Hospital and Heritage Hospital. Plaintiff resided with his sister and fell under the umbrella of a household no-fault insurance policy issued by Bristol. The vehicle, which was titled and registered in the name of plaintiff's brother, was insured by defendant Auto Club Insurance Association of Michigan.¹ Bristol argued that plaintiff should be considered the "owner" of the vehicle under MCL 500.3101(2)(g)(i) because he had the use of his brother's vehicle for a period greater than 30 days. Therefore, according to Bristol, plaintiff was required to maintain insurance on the vehicle under the no-fault act, MCL 500.3101 et seq., despite the fact that plaintiff's brother already had the vehicle insured by Auto Club. Bristol contended that, because plaintiff failed to insure the vehicle under MCL 500.3101(1), plaintiff was not entitled to collect personal protection insurance (PIP) benefits pursuant to MCL 500.3113(b). The trial court concluded that the issue regarding whether plaintiff was the "owner" of the vehicle under MCL 500.3101(2)(g)(i) was irrelevant for purposes of analysis under MCL 500.3113(b), where the vehicle was specifically insured by plaintiff's brother. Because the language in MCL 500.3113(b) precluding recovery of PIP benefits links the security or insurance requirement to the vehicle only and not the person, the trial court correctly ruled that plaintiff was entitled to PIP benefits because the vehicle was in fact insured, regardless of whether plaintiff was the "owner" of the vehicle. Accordingly, we affirm.

I. Basic Facts and Procedural History

Plaintiff did not hold record title to any vehicle, and in January of 2004, he was residing with his sister in her home. She owned a Ford Explorer that was insured by Bristol. The accident occurred on January 15, 2004, when plaintiff was driving his brother's car, which was insured by Auto Club. Plaintiff was stopped at a red light waiting for a fire truck to pass when he was rear-ended. As a result of the accident, plaintiff suffered a back injury and was hospitalized for 10 days. He received cortisone shots and epidurals along with physical therapy. Plaintiff eventually underwent back surgery at Oakwood and received follow-up care at Heritage. He was not covered by any health insurance policy at the time. Plaintiff sought PIP benefits for the payment of his hospital and medical bills, as well as for payment to his mother, who acted as his caregiver following the accident and surgery.

The car plaintiff was driving when he was rear-ended was a 2000 BMW that was titled in his brother's name. In his answers to interrogatories, plaintiff indicated that the BMW "belonged to my brother but I had primary possession." Bristol seized on this response in support of its proposition that plaintiff should be considered an owner of the car. Plaintiff testified in his deposition that he had his brother's permission to drive the BMW when his brother did not need it. He had his own set of keys. Plaintiff's brother would indicate ahead of time if he needed the BMW, but otherwise plaintiff could use the car at will, without asking permission each time. Plaintiff had been using the BMW "[o]ff and on since March of 2003." The BMW was often in the repair shop, so plaintiff could not use it during those intervals. Also, his brother had a second car that plaintiff was not permitted to drive, and when that vehicle was in the shop, his brother used the BMW, precluding plaintiff's use. Plaintiff indicated that he used the BMW several times a week. He sometimes drove the car to class, but he also carpooled with friends to class. Plaintiff occasionally used the BMW to go out on dates. He also used various additional vehicles owned by other family members. Plaintiff indicated that the BMW was "the extra car that the entire family had" at its disposal, as his brother also permitted other family members to drive the BMW. Plaintiff did not have a set of keys for any other family vehicle except the BMW.

After plaintiff filed suit to recover PIP benefits, Citizens moved for summary disposition, arguing that Bristol, as a matter of statutory priority, was required to handle the claim for no-fault benefits because of plaintiff's status as a resident in the home of his sister, who was insured through Bristol, and that plaintiff, therefore, was not eligible to receive no-fault benefits from Citizens by way of the Michigan Assigned Claims Facility (MACF). Auto Club then filed a motion for summary disposition, concurring in Citizens' motion that Bristol was responsible for paying no-fault benefits to plaintiff. Intervening plaintiffs Oakwood and Heritage also filed motions for summary disposition, maintaining that Bristol was responsible for paying plaintiff's hospital costs as part of the PIP benefits owing to plaintiff. Plaintiff likewise filed a motion for summary disposition against Bristol, echoing the arguments presented by the other parties.

In response to these motions, Bristol argued that plaintiff was the constructive owner of the BMW. Bristol contended that plaintiff was an "owner" of the vehicle, as that term is defined in MCL 500.3101(2)(g)(i), because he had use of the car for more than 30 days; therefore, plaintiff was required to obtain insurance on the vehicle under MCL 500.3101(1), and his failure to do so precluded recovery of PIP benefits under MCL 500.3113(b). Bristol asserted that, minimally, there existed a genuine issue of material fact concerning the issue of ownership.

The trial court ruled against Bristol on all the motions, entering judgments in favor of Citizens and Auto Club, a judgment in favor of plaintiff in the amount of $41,592, and a judgment in favor of Oakwood and Heritage in the amount of $68,871, which was later reduced to $66,871. Bristol moved for reconsideration, again arguing that whether plaintiff was an "owner" of the BMW at the time of the accident was a question of fact for the jury, but the motion was denied. The trial court found that the issue regarding whether plaintiff was the "owner" of the vehicle under MCL 500.3101(2)(g)(i) was irrelevant for purposes of analysis under MCL 500.3113(b), where the vehicle was specifically insured by plaintiff's brother. The trial court subsequently denied Bristol's motion for relief from judgment.

II. Standard of Review

This Court reviews de novo a trial court's decision on a motion for summary disposition. Kreiner v. Fischer, 471 Mich. 109, 129, 683 N.W.2d 611 (2004). We similarly review an issue of statutory construction, which constitutes a question of law, de novo on appeal. Mt Pleasant v. State Tax Comm., 477 Mich. 50, 53, 729 N.W.2d 833 (2007).

III. Principles of Statutory Construction

The primary goal in construing a statute is to effectuate the Legislature's intent, and the first step in the process of interpreting a statute and divining legislative intent is to examine the language of the statute. Mt Pleasant, supra at 53, 729 N.W.2d 833. The words contained in a statute provide us with the most reliable evidence of the Legislature's intent. Shinholster v. Annapolis Hosp., 471 Mich. 540, 549, 685 N.W.2d 275 (2004). In ascertaining legislative intent, this Court gives effect to every word, phrase, and clause in the statute. Id. We must consider both the plain meaning of the critical words or phrases, as well as their placement and purpose in the statutory scheme. Id. This Court must avoid a construction that would render any part of a statute surplusage or nugatory. Bageris v. Brandon Twp., 264 Mich.App. 156, 162, 691 N.W.2d 459 (2004). "The statutory language must be read and understood in its grammatical context, unless it is clear that something different was intended." Shinholster, supra at 549, 685 N.W.2d 275 (citation and internal quotation omitted). "If the statutory language is unambiguous, the Legislature is presumed to have intended the meaning expressed in the statute and judicial construction is not permissible." Mt Pleasant, supra at 53, 729 N.W.2d 833. An unambiguous statute must be enforced as written. Shinholster, supra at 549, 685 N.W.2d 275. "A necessary corollary of these principles is that a court may read nothing into an unambiguous statute that is not within the manifest intent of the Legislature as derived from the words of the statute itself." Roberts v. Mecosta Co. Gen. Hosp., 466 Mich. 57, 63, 642 N.W.2d 663 (2002).

IV. Analysis

The purpose of the Michigan no-fault act is to broadly provide coverage for those injured in motor vehicle accidents without regard to fault. Cole v. Auto-Owners Ins. Co., 272 Mich.App. 50, 55, 723 N.W.2d 922 (2006). Under the no-fault act, "[t]he owner or...