BSP won summary judgment in a federal court opinion clarifying when vehicle-rental companies in Michigan are obligated to provide no-fault coverage. The court ruled in favor of U-Haul Co. of Arizona against a plaintiff truck renter seeking no-fault PIP benefits under Michigan’s No-Fault Act for an accident that occurred in Tennessee. BSP successfully argued that, although the truck was rented from a location in Michigan, the undisputed evidence showed that the truck had not been operated in Michigan for more than 30 days in the calendar year that the accident occurred, and the truck was therefore excluded from the PIP coverage requirements under Michigan law. The court agreed with BSP’s argument that the Michigan law was clear on its face. Accordingly, the court declined to ignore the clear legislative mandate of the No-Fault Act and granted summary judgment.
Click here to see a copy of the motion.