Twichel v. MIC Gen. Ins. Corp., 469 Mich. 524

Summary

The Michigan Supreme Court considered whether the decedent was an owner of an uninsured vehicle under Michigan's no-fault statute and under an uninsured motorist insurance policy. The court held that he was an owner under the statutory definition because the purchase arrangement contemplated use of the vehicle for more than 30 days, and under the policy's ordinary meaning because he had possession, control, and dominion. The court therefore reversed the Court of Appeals and remanded for entry of judgment for the insurer.

Holdings

1. A person is an owner under MCL 500.3101(2)(g)(i) from the inception of an arrangement if the nature of the person's right to use the vehicle is such that the right will extend beyond thirty days; actual use for thirty days before the accident is not required. Sies was therefore an owner because his purchase arrangement contemplated permanent, exclusive use of the truck.
2. The policy's undefined term owned must be given its commonly understood meaning and is not governed by the statutory definition of owner. Possession, control, dominion, and authority supported the conclusion that Sies owned the vehicle, so the policy excluded uninsured-motorist benefits.
3. Sies also qualified as an owner under MCL 500.3101(2)(g)(iii) because he had the immediate right of possession under an installment sale contract; the phrase does not require a written contract, a retail sale, or a scheduled payment plan.

Questions Presented

1. Whether Sies was an owner of the uninsured vehicle under MCL 500.3101(2)(g)(i), thereby precluding personal protection insurance benefits under MCL 500.3113(b).
2. Whether Sies owned the vehicle within the ordinary meaning of the term as used in the insurance policy's uninsured-motorist exclusion, despite the absence of transferred legal title and full payment.
3. Whether Sies also qualified as an owner under MCL 500.3101(2)(g)(iii) because he had the immediate right of possession under an installment sale contract.

Disposition

reversed_and_remanded