Auto-Owners Insurance Company v. Ferwerda Enterprises, Inc.

Summary

The Michigan Supreme Court vacated portions of the Court of Appeals opinion that inaccurately described Auto-Owners' defense of Holiday Inn and the trial court's findings regarding Auto-Owners' contractual obligations. The Court remanded for clarification of whether Auto-Owners' claim was frivolous under MCR 2.625(A)(2) and MCL 600.2591, while denying leave to appeal in all other respects and retaining jurisdiction.

Holdings

1. The portions of the Court of Appeals' opinion stating that Auto-Owners declined to defend Holiday Inn and that the trial court found Auto-Owners breached its contract because it was obligated to defend were vacated because those statements were incorrect.
2. The Mason Circuit Court was required to clarify whether it found that Auto-Owners' claim was frivolous within the meaning of MCR 2.625(A)(2) and MCL 600.2591(3)(a)(i) through (iii), specifically as to Ferwerda Enterprises, Inc.

Questions Presented

1. Whether the Court of Appeals' remand opinion should be vacated to correct inaccurate statements regarding Auto-Owners' defense of Holiday Inn and the trial court's breach-of-contract finding.
2. Whether the record should be clarified regarding whether the trial court found Auto-Owners' claim frivolous under MCR 2.625(A)(2) and MCL 600.2591(3)(a)(i) through (iii).

Disposition

vacated