GALLOWAY v. NORTHWEST AIRLINES, INC.
737 F.Supp. 418 (1989)
Emma GALLOWAY, Personal Representative of the Estate of Eddie L. Galloway, Plaintiff,
NORTHWEST AIRLINES, INC., and McDonnell Douglas Corporation, Inc., Defendants.
Civ. No. 88-CV-71347-DT.
United States District Court, E.D. Michigan, S.D.
October 12, 1989.
Charles Brewer, Phoenix, Ariz., Stanley Chesley, Cincinnati, Ohio, Lee Kreindler, New York City, Gerald Lear and Thomas Meehan, Washington, D.C., and Richard Schaden, Birmingham, Mich., for plaintiffs' Steering Committee.
Carroll E. Dubuc, Laxalt, Washington, Perito and Dubuc, Washington, D.C., for defendant Northwest Airlines.
John J. Hennelly, Bryan, Cave, McPheeters & McRoberts, Los Angeles, Cal., and Donald E. Shely, Dykema Gossett, Detroit, Mich., for defendant McDonnell Douglas.
JULIAN ABELE COOK, Jr., Chief Judge.
On July 17, 1989, the Defendant, Northwest Airlines, Inc. (Northwest), filed a motion to dismiss, contending that the subrogation claims of the Plaintiff-Intervenor State Farm Mutual Insurance Company (State Farm),1 in which it attempts to obtain reimbursement and indemnification of benefits paid on behalf of its insureds Eddie Galloway and Sharon Schweitzer, are precluded by the terms of the Michigan Motor Vehicle No-Fault Act (No-Fault Act). In its response on August 2, 1989,2 State Farm does not contest that the No-Fault Act bars its claims for the personal injury
benefits which were paid to its insureds. However, State Farm takes the position that the No-Fault Act does not preclude its reimbursement claims for collision benefits which were paid for the destruction of a motor vehicle.
For the following reasons, Northwest's motion to dismiss State Farms' subrogation claims under the Michigan No-Fault Act is granted in part and denied in part.I
The facts are not in dispute. On August 16, 1987, the Northwest Flight 255 accident aircraft crashed and struck two vehicles that had been travelling northbound on Middlebelt Road near the Detroit Metropolitan Airport. One of the vehicles was operated by Eddie Galloway. The second vehicle was operated by Sharon Schweitzer. As a result of the collision between the two vehicles and the aircraft, Galloway and Schweitzer died and their respective vehicles were destroyed. State Farm represents that it made payments to the decedents' estates pursuant to the terms of its contract of insurance as follows: