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No. 134798
| Department of Transportation, |
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Patrick F. Isom |
Plaintiff-Appellee, |
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| v |
(Appeal from Ct of Appeals) |
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(Wayne - MacDonald, K.) |
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| Initial Transport, Inc., and Employers Mutual |
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George F. Curran III |
| Insurance Company, |
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Mark J. Zausmer |
Defendants-Appellants, |
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Carson J. Tucker |
| and |
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| Great West Casualty Company and Kirk |
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| National Leasing Company, a/k/a Kirk |
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| Nationalease Company, |
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| Defendants. |
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| __________________________________________ |
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Click to view briefs in Adobe format:
Plaintiff-Appellee's Brief in Opposition to Application for Leave to Appeal>>
Plaintiff-Appellee's Supplemental Brief>>
Defendants-Appellants' Application for Leave to Appeal>>
Defendants-Appellants' Reply Brief>>
Defendants-Appellants' Supplemental Brief>>
Insurance Institute of Michigan's Amicus Curiae Brief>>
North Central Cooperative, LLC's Amicus Curiae Brief>>
Background
On October 6, 2003, a semi-tractor owned by Initial Transport, Inc. struck a cement barrier on the entrance ramp from northbound I-75 to eastbound I-94. The cargo tank trailer being hauled by the semi exploded, and the resulting conflagration did enormous damage to the overpass. MDOT’s repair costs, including environmental cleanup, traffic control, and highway reconstruction, came to around $3.5 million. MDOT sued Initial Transport and its insurance carrier, Employers Mutual Insurance Company, to recover these costs. At the time of the accident, Initial Transport had a $1 million property protection policy, consistent with the $1 million cap on liability established by Michigan’s no-fault act at MCL 500.3121(5). MDOT asked for the full $3.5 million, citing the Motor Carrier Safety Act at MCL 480.11a, the Owner Liability Statute at MCL 257.401, and negligence/strict liability principles. The defendants responded by moving for summary disposition on the portion of the claim exceeding $1 million, citing the no-fault cap. The trial court ruled in favor of the defendants, noting that the no-fault act is the exclusive remedy available to a tort claimant for property damage caused by a motor vehicle. In a split published opinion, the Court of Appeals reversed the trial court. The majority concluded that the $1 million cap did not apply to the defendants, because the financial responsibility minimums set forth in the Motor Carrier Safety Act effectively created an exception to the no-fault cap for hauling hazardous materials. The majority also ruled that statutory interest was payable on the portion of the $1 million that the Employers Mutual had failed to immediately pay after MDOT presented adequate proof of loss. The dissenting judge agreed with the majority regarding the interest owed, but would have applied the $1 million no-fault cap. The defendants appeal.
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