When Does an Unlicensed Driver Qualify for PIP Benefits Under Michigan No-Fault Law?
In an unpublished Michigan Court of Appeals case, the appellate court looked at whether a vehicle involved in an accident had been taken unlawfully. The plaintiff was driving the vehicle. The plaintiff was an unlicensed driver. After the accident, the plaintiff sought PIP benefits from the no-fault insurer. The no-fault insurer moved for summary disposition arguing that the plaintiff had unlawfully taken the vehicle and that MCL section 5.3113(a) disqualified him from receiving PIP benefits.
The Court explained that the relevant inquiry was not whether the vehicle was being operated unlawfully, but whether the vehicle was “taken unlawfully” in the context of MCL section 5.3113(a). “While the legality of the taking must be viewed from the driver’s perspective, the determinative question is whether the owner impliedly permitted or authorized the drivers taking of the owner’s vehicle.” This requires an analysis of whether there had been an express prohibition against operating the vehicle or whether there was implied permission.
In this case, there was no express prohibition. Thus, the Court of Appeals remanded the case with instructions that the Trial Court should consider whether the owner of the vehicle had given the plaintiff implied permission to use the vehicle. (Generally, when an owner gives permission for someone to use a vehicle and that person allows a third person to use the vehicle, that constitutes implied consent unless there was an express prohibition against the third person operating the vehicle. In this case, the owner gave her son permission and the son gave the Plaintiff permission.)
This case illustrates the challenges an insurer might face when denying a PIP claim based upon the unlawful taking of a vehicle.
Read entire case at:
About Alexander & Angelas, P.C.
Attorney Peter A. Angelas represents defendants in civil liability litigation across Michigan. His practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
Mr. Angelas practices in all state and federal courts in Michigan, including Wayne County (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) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan.
