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Michael F. Schmidt And Nate Peplinski Obtain Summary Disposition On Appeal Against Claim For Reimbursement Of Over $850,000 In No Fault Benefits Paid

Auto Owners Insurance Company v Integon National Insurance Company, Michigan Court of Appeals docket number 321396 (2015), Auto-Owners sought reimbursement from Integon of $838,610.48 in no fault benefits and $56,470.45 in legal expenses paid by Auto-Owners for catastrophic injuries incurred by Terry Dunn in a single vehicle accident while occupying a vehicle driven by his wife Laura Dunn. Auto-Owners had issued a no fault policy to Terry Dunn’s parents with whom he lived at the time of the accident. Auto-Owners argued that a North Carolina auto policy issued by Integon to Laura Dunn should be required to provide Michigan no fault coverage per MCL 300.3012, claiming that Integon had knowledge that Laura and Terry Dunn were moving to Michigan and required Michigan no fault coverage. The trial court had ruled that Integon had such notice and that Terry Dunn was a “named insured” and thus Integon owed reimbursement to Auto-Owners. We filed an appeal to the Michigan Court of Appeals and the Court of Appeals reversed the trial court and ordered entry of judgment in favor of Integon that Integon did not have notice that Laura and Terry Dunn had relocated to Michigan and did not need to reach the issue whether Terry Dunn was a “named insured”.