The
plaintiff was injured while he was a passenger on a Detroit city bus that was
hit by a garbage truck owned by GFL Environmental USA, Inc. The City, a self-insured entity under the
no-fault act, paid the plaintiff personal protection insurance (PIP) benefits.
The City had a trash collection services contract with GFL that
contained an indemnification provision.
The City sued GFL for indemnification of the PIP benefits paid to the
plaintiff as a result of GFL’s driver’s negligence. Both GFL and the City moved for summary
disposition. The trial court ruled that
the City was contractually entitled to indemnification and granted the City’s motion
and denied GFL’s motion. The Court of
Appeals reversed in an unpublished opinion, concluding that because the
indemnification provision is unenforceable under the no-fault act, the City is
precluded from obtaining indemnification from GFL. The
Supreme Court has ordered oral argument on the application to address whether
the Court of Appeals erred in holding that the no-fault insurance act, MCL
500.3101 et seq., precluded the City from seeking
contractual indemnification from GFL for the City’s payment of PIP benefits.