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154442 - Ali Bazzi v Sentinel Insurance Co

Ali Bazzi,
Stacey  L. Heinonen
(Appeal from Ct of Appeals)
(Wayne – Popke, L.)
Genex Physical Therapy, Inc. and Elite Chiropactic Center, PC,
Intervening Plaintiffs-Appellants,
Transmedic, LLC,
Intervening Plaintiff-Appellee,
Sentinel Insurance Company,
Defendant/Third-Party Plaintiff-Appellee,
Mary Massaron
Citizens Insurance Company,
Hala Baydoun Bazzi and Mariam Bazzi,
Third-Party Defendants-Appellees.


Plaintiff Ali Bazzi was injured in an automobile accident while driving a vehicle owned by his mother, and insured under a no-fault automobile insurance policy issued by defendant Sentinel Insurance Company. Plaintiff filed suit against Sentinel seeking personal injury protection (PIP) benefits. Sentinel rescinded the policy, claiming that it was procured by fraud. Sentinel then filed a motion for summary disposition on the PIP claims asserted by plaintiff. The trial court denied the motion on the basis of the innocent third-party rule, which provides that an insurer may not rescind a no-fault insurance policy because of a material misrepresentation made in the application for insurance where there is a claim involving an innocent third party. Sentinel sought interlocutory appellate review, which the Court of Appeals denied. The Supreme Court remanded the case to the Court of Appeals for consideration as on leave granted. On remand, the Court of Appeals, in a published opinion, held that the innocent third-party rule did not survive the Supreme Court’s decision in Titan Ins Co v Hyten, 491 Mich 547 (2012). Therefore, the Court of Appeals reversed the ruling of the trial court and remanded for further proceedings. Plaintiff and two intervenors (healthcare providers that provided services to plaintiff) sought leave to appeal in the Supreme Court, which has granted leave to appeal to address whether the innocent third-party rule survived Titan.