The No-Fault Act; “Owner” (MCL 500.3101(3)(l)); Chop v Zielinski; Twichel v MIC Gen Ins Corp; Priority for payment of personal protection insurance (PIP) benefits; MCL 500.3114(1) & (3); Distinguishing Turner v Farmers Ins Exch

The court held that defendants-Enterprise Leasing Company of Detroit and Nexen were both “owners” of the vehicle involved in the accident (the Transit), and that Enterprise was first in priority to pay plaintiff-Abraham’s PIP benefits. Thus, it reversed the trial court’s order granting Enterprise’s summary disposition motion and denying defendant-State Farm’s countermotion for summary disposition. At the time of the accident, Abraham was driving the Transit, which was provided to her by Nexen, her employer. The first issue was “whether Nexen and Enterprise constitute ‘owners’ of the Transit[.]” As to Nexen, the court concluded it could be an owner “under MCL 500.3101(3)(l)(i) if it had use of the Transit for more than 30 days, regardless of whether the rental agreement in effect at the time of the accident was for only 28 days.” It noted that before “that agreement, Nexen had several other rental agreements with Enterprise, each for 28 days, related to the Transit.” The record showed it rented the Transit from Enterprise starting in 6/18 and kept it into 1/19. Further, “Nexen did not return the Transit to Enterprise at the end of each rental agreement. Instead, Nexen kept possession of the Transit and Enterprise simply rewrote the rental agreement. Thus, the arrangement between Nexen and Enterprise gave Nexen use of the vehicle for approximately six months before the accident, a period significantly longer than the 30 days required by MCL 500.3101(3)(l)(i). Consistent with Twichel, and despite the 28-day period established by the individual rental agreements, because Nexen had use of the Transit for more than 30 days before the accident,” it qualified as an owner under MCL 500.3101(3)(l)(i). As to Enterprise, “reading MCL 500.3101(3)(l)(i) and (3)(l)(iii) as a whole, there must be a single lease providing the requisite use (30 days or more) of the Transit to Nexen for Enterprise to be excluded from the definition of ‘owner’ of the Transit. Because the lease” here did not do so, Enterprise was also an owner. Lastly, the court agreed with State Farm that Enterprise was first in priority to pay “Abraham’s PIP benefits because Enterprise insured the Transit.” While Enterprise relied on Turner, this case was distinguishable. Because Nexen did “not have a no-fault insurer of its own, Enterprise is the other insurer at issue, and Enterprise is self-insured and owns the Transit, it is an insurer of the furnished vehicle.” Remanded.