Truck Driver Wins PIP Priority Dispute
The Michigan Court of Appeals has ruled that a truck driver was improperly classified as an independent contractor in a No-Fault insurance priority dispute. This required a reversal of summary disposition granted in favor of the insurance company.
The Plaintiff in this case was working as a truck driver engaged in interstate transportation. He was driving from Michigan to Kansas when he was involved in a motor vehicle accident causing personal injuries. The Plaintiff filed a lawsuit seeking PIP benefits against several insurance carriers including the insurance carrier for the trucking company. This insurer, Carolina Casualty, moved for summary disposition arguing that the Plaintiff was an independent contractor and that Plaintiff’s personal insurer (AAA) was responsible for paying PIP benefits. The Trial Court granted Carolina Casualty’s Motion for Summary Disposition. The Court of Appeals reversed, finding that the Plaintiff was an employee for purposes of MCL § 500.3114(3).
Whether an individual was an employee or an independent contractor at the time of the accident is highly fact specific. Generally, Michigan courts look at the economic realities test to determine a person’s employment status. The economic realities test looks at several factors including the right to hire and fire, who controls the individual’s work, who provides the equipment for the individual, who provides the materials to the individual to complete the work, amongst several other factors.
Under the economic realities test, the Plaintiff was an employee of the trucking company and Carolina Casualty, its insurer, owed PIP benefits. The Court of Appeals reasoned that “at the time of the incident, plaintiff operated a truck owned and supplied by [trucking company], performing cargo deliveries at the direction of the company.” “Considering the totality of the circumstances, the economic reality is that plaintiff functioned as an employee of [trucking company]. Accordingly, Carolina [Casualty], as the insurer of the vehicle operated by plaintiff, holds first priority [for payment of PIP benefits] under MCL § 500.3114(3).”
Read entire case at:
Gorgis v Auto Club Ins Ass’n
Read entire case at:
Smith v Beaumont Health
About Alexander & Angelas, P.C.
Attorney Peter A. Angelas represents litigants in complex, high severity civil liability litigation across Michigan. His practice areas include automobile and trucking negligence claims, insurance litigation, premises liability, motor carrier liability, commercial litigation, construction defect litigation, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogationclaims, workers’ compensation, employment law, and marine liability.
Mr. Angelas practices in all state and federal courts in Michigan, including WayneCounty (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac),Washtenaw County (Ann Arbor), and Genesee County (Flint).
A 24/7 Emergency Hotline is available (800-219-0007). When an accident requires an immediate response to protect evidence, members of the firm quickly launch aninvestigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan.
