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GALLOWAY v. NORTHWEST AIRLINES, INC.
737 F.Supp. 418 (1989)
Emma GALLOWAY, Personal Representative of the Estate of Eddie L. Galloway, Plaintiff,
v.
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.
ORDERJULIAN 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. IThe 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:
1. Northwest's Motion to Dismiss pertained to State Farm's claims for subrogation in the following two cases: Galloway v. Northwest Airlines, Inc., 88-CV-71347-DT; Schweitzer v. Northwest Airlines, Inc., 88-CV-72737-DT. 2. On August 7, 1989, State Farm filed a second responsive pleading that was identical in all respects to its first responsive pleading. 3. On August 15, 1989, State Farm filed an unauthorized pleading in which it maintained that its claims of subrogation are supported by Citizens Insurance Co. v. Tuttle,411 Mich. 536, 309 N.W.2d 174 (1981). However, Tuttle did not address whether the reimbursement sections of the No-Fault Act, sections 500.3116 and 500.3127, preclude an insurer from holding a nonmotorist tortfeasor ultimately accountable for the cost of repair damages to the insured's motor vehicle. Rather, the Tuttle decision merely focused on whether a nonmotorist tortfeasor could invoke the immunity provisions of section 500.3135(2) of the No-Fault Act. In fact, the Tuttle court noted that the tort immunity provision, section 500.3135, was unrelated to, and not coextensive with, the reimbursement provision, section 500.3116, of the No-Fault Act. 4. With respect to damage sustained to a moving vehicle, the insured may elect to purchase collision insurance or take the risk of absorbing such damages. Michigan law requires, however, that insurers offer optional collision insurance that will cover any damage to a motor vehicle. See M.C.L.A. § 500.3037. 5. This Court notes that under the No-Fault Act, a motorist who can properly invoke the tort immunity provision, see M.C.L.A. § 500.3135(2), and his no-fault insurer, are subject to limited "[d]amages up to $ 400.00 to motor vehicles, to the extent that the damages are not covered by insurance." M.C.L.A. § 500.3135(2)(d)(West 1983). See Heard v. State Farm Insurance,414 Mich. 139, 324 N.W.2d 1 (1982). Northwest may not take advantage of this limitation on recovery for damage to motor vehicle since it is not immune from tort under section 500.3135(2).
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