MICHAEL F. SCHMIDT OBTAINS SUMMARY DISPOSITION ON MOTION FOR REHEARING

AMCO Insurance Company vs. Westborn Chrysler Jeep, Inc., Wayne County Circuit Court. We filed suit on behalf of AMCO Insurance Company against Westborn Chrysler Jeep, Inc. to enforce the Transfer of Rights of Recovery Condition of the insurance policy.  An underlying suit was filed by TD Auto Finance against Westborn Chrysler Jeep alleging that Westborn had breached the contract between TD Auto and Westborn regarding Westborn’s sale of a vehicle to an individual who turned out to be an imposter. TD Auto sued for recovery of the amount paid to Westborn pursuant to its Finance Agreement with Westborn of $73,164.88 plus interest, costs and attorney fees. AMCO defended the suit and settled the suit by TD Auto against Westborn pursuant to a policy of insurance issued by AMCO to Westborn. In the interim Westborn recovered the vehicle. Westborn refused to turn over the vehicle to AMCO after AMCO settled the TD Auto suit against Westborn. We then filed suit for AMCO against Westborn to enforce the policy provisions including the policy condition regarding Transfer of Rights of Recovery Against Others to Us. We then filed a motion for summary disposition against Westborn to recover the vehicle or its value at the time of recovery by Westborn. The trial court initially denied our motion on the basis that it was an improper subrogation attempt against its own insured.  We filed for reconsideration and the trial court issued a nine page written opinion granting our motion for reconsideration and ordered summary disposition in favor of AMCO on the basis that AMCO’s argument was correct, that the Transfer of Rights of Recovery Against Others to Us provision was not an improper subrogation provision, but rather an enforceable condition requiring Westborn to transfer to AMCO any and all sale and insurance proceeds received from the recovered vehicle.