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Auto-Owners Insurance Company v. Ferwerda Enterprises, Inc.
Citations: 784 N.W.2d 44; 2010 WL 2795387Docket: Docket Nos. 140735, 140738. COA No. 277574
Court: Michigan Supreme Court; July 15, 2010; Michigan; State Supreme Court
Auto-Owners Insurance Company initiated a legal dispute against Ferwerda Enterprises, Inc., which operates Holiday Inn Express Ludington, concerning the insurance company's obligation to defend the hotel in a lawsuit filed by the Bronkema family. The Court of Appeals had previously ruled that Auto-Owners declined to defend the hotel and found that the insurance company breached its contract. However, the Supreme Court of Michigan vacated these findings, clarifying that Auto-Owners had continued to defend the hotel while seeking a declaratory ruling. The Supreme Court remanded the case to the Mason Circuit Court to clarify whether the trial court had determined Auto-Owners’ claim to be "frivolous" under MCR 2.625(A)(2) and MCL 600.2591(3)(a)(i)-(iii). The trial court's previous ruling granting the defendants attorney fees suggested awareness of the legal standards for frivolous claims, but the record was unclear on whether Auto-Owners' actions met the statutory definition of "frivolous." The Supreme Court instructed the trial court to specify its findings based on MCR 2.625(A)(2) and MCL 600.2591, particularly the definitions of "frivolous," and allowed for additional argument and hearings as necessary. The trial court must submit its clarified record, including any transcripts, within 56 days. The Supreme Court denied leave to appeal on all other matters, indicating a lack of persuasion regarding the remaining questions. The Court retained jurisdiction over the case.