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Degrandchamp v. Michigan Mutual Insurance

Citations: 299 N.W.2d 18; 99 Mich. App. 664; 1980 Mich. App. LEXIS 2890Docket: Docket 47711

Court: Michigan Court of Appeals; August 27, 1980; Michigan; State Appellate Court

Narrative Opinion Summary

In this case, the plaintiff sought property protection insurance benefits from Michigan Mutual Insurance Company after his motorcycle was damaged in an automobile collision. The trial court ruled in favor of the plaintiff, granting summary judgment and asserting that motorcycles were not excluded from such benefits under the no-fault insurance act. The defendant appealed, contending that motorcycles were indeed excluded under MCL 500.3123(1)(a), which specifies that vehicles powered by means other than muscular power are ineligible for these benefits. The appellate court examined the statutory language and prior case law, acknowledging the distinction between 'vehicle' and 'motor vehicle' as recognized by the legislature, which suggested different intended meanings. This distinction was pivotal in reversing the trial court’s decision, as the appellate court concluded that motorcycles do fall under the exclusion. The court held that the plaintiff was not entitled to no-fault property damage benefits, reversed the lower court's ruling, and remanded the case for judgment in favor of the defendant, awarding costs to the defendant.

Legal Issues Addressed

Definition of 'Vehicle' and 'Motor Vehicle'

Application: The court distinguished between the terms 'vehicle' and 'motor vehicle,' indicating legislative intent to assign different meanings, which led to the inclusion of motorcycles under the definition of 'vehicle' for property protection benefits.

Reasoning: The court clarified that the definition of 'motor vehicle' is distinct from 'vehicle,' indicating that the legislature intended different meanings for these terms.

No-Fault Insurance Act Exclusions

Application: The court determined that motorcycles are excluded from property protection benefits under the no-fault insurance act, as defined by MCL 500.3123(1)(a).

Reasoning: The defendant appealed, arguing that motorcycles fall under the exclusion defined in MCL 500.3123(1)(a), which states that vehicles operated by power other than muscular power are excluded from such benefits.

Precedent and Legislative Interpretation

Application: The court referenced prior case law, such as Davidson v Johnson and Shavers v Attorney General, to interpret legislative intent and uphold the exclusion of motorcycles from no-fault coverage.

Reasoning: While a prior case, Davidson v Johnson, allowed recovery for motorcycle damages under residual liability insurance, its precedent was undermined by a subsequent ruling in Shavers v Attorney General, which upheld the constitutionality of excluding motorcycles from mandatory no-fault coverage.