Trial Lawyers' Bottom Line: Removing goods from a car counts as using a motor vehicle "as a motor vehicle" for the parked vehicle exception for PIP benefits.

Kemp hurt himself when removing items from his car.  He sought no-fault benefits, but the insurance company moved for summary disposition, arguing that his injury didn’t arise out of the ownership, operation, maintenance, or use of the parked vehicle, he didn’t meet the parked vehicle exception, and his injury didn’t have a causal relationship to the vehicle.  The trial court granted the motion, and the Court of Appeals affirmed. The question was whether Kemp had created a genuine issue of material fact under the parked-motor-vehicle exception in MCL 500.3106(1)(b). 

Trial Lawyers' Bottom Line: Healthcare provider cannot sue no-fault insurer directly for unpaid medical expenses; it must sue the patient-insured instead.

Jack Stockford was injured in a car accident and received treatment at Covenant Medical Center.  His medical expenses totaled $43,484.80.  Covenant sent a bill for this amount to Stockford’s insurer, State Farm, who refused to pay.  Stockford then sued State Farm for no-fault insurance benefits.  They settled for $59,000.  As a part of the settlement, Stockford released State Farm from liability for all allowable no-fault expenses, including medical bills and past claims.

Covenant sued State Farm in 2013 to receive payment for the billed medical expenses.  State Farm answered Covenant’s complaint by citing the settlement and release.  The circuit court granted State Farm summary disposition on the theory that Covenant’s claim was derivative of Stockford’s and thus extinguished by the release.  The Court of Appeals reversed, holding that State Farm’s liability to Covenant could not have been dismissed by State Farm’s settlement with Stockford because State Farm had received written notice of Covenant’s claim before the settlement.  The Supreme Court granted leave to appeal.