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Southeast Michigan Surgical Hospital LLC v. Allstate Insurance Co
Citation: Not availableDocket: 323425
Court: Michigan Court of Appeals; August 9, 2016; Michigan; State Appellate Court
Original Court Document: View Document
The Michigan Court of Appeals case involves Southeast Michigan Surgical Hospital, LLC, and Jamie Letkemann as plaintiffs-appellees against Allstate Insurance Company as the defendant-appellant. The court's decision, influenced by the precedent set in Bazzi v. Sentinel Ins Co, led to the reversal of the trial court's ruling. The appellate court determined that the innocent third-party doctrine is no longer applicable due to the Supreme Court's ruling in Titan Ins Co v. Hyten. The trial court erred in denying Allstate's motion for summary disposition after finding that the insurance policy was obtained through fraud. Material misrepresentations by Kreklau in the insurance application were deemed significant enough to induce Allstate to offer reduced premiums, thus validating Allstate's rescission of the policy regarding Letkemann. Consequently, Letkemann is barred from claiming no-fault benefits under the rescinded policy, which also extends to Southeast Michigan Surgical Hospital. The court rejected alternative grounds presented by the plaintiffs to affirm the trial court's decision. Judge Sawyer concurred in part but dissented regarding the majority's view on Bazzi, asserting it was correctly decided and opposing the call for a conflict panel. Ultimately, the court directed a remand for entry of an order granting Allstate’s motion for summary disposition.