STATE FARM MUT. AUTO. INS. CO. v. ENTERPRISE LEASING CO.

Docket Nos. 100032, 100033, 101473, 102396, Calendar Nos. 3-5.

549 N.W.2d 345 (1996)

452 Mich. 25

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Plaintiff-Appellant, v. ENTERPRISE LEASING COMPANY, Defendant-Appellee. ENTERPRISE LEASING COMPANY OF DETROIT, d/b/a Enterprise Rent-A-Car, and the Travelers Insurance Company, Plaintiffs-Appellees, v. Majid SAKO, Defendant-Appellee, and State Farm Mutual Automobile Insurance Company, Defendant-Appellant. AUTO CLUB INSURANCE ASSOCIATION, Plaintiff-Appellant, v. SNAPPY CAR RENTAL, INC., an Ohio Corporation, Hattie Francis, Robert Daniel and Ruth Stephens, Defendants-Appellees.

Supreme Court of Michigan.

Decided June 25, 1996.


Attorney(s) appearing for the Case

Romain, Donofrio, Kuck & Egerer, P.C. by Ernst W. Kuck and Pat M. Donofrio, Southfield, for State Farm Mutual Automobile Insurance Company.

Gofrank & Kelman by Thomas M. Douglas, Southfield, for plaintiffs-appellees Enterprise Leasing Company.

Barnett & Rich, P.C. by Gordon J. Barnett, Jr., Ann Arbor, for plaintiff-appellant Auto Club Insurance Association.

Gofrank & Kelman by Thomas M. Douglas, Southfield, for defendant-appellee Enterprise Leasing Company.

Draugelis & Ashton by John A. Ashton and Richard Haynes, Plymouth, for defendant-appellant State Farm Mutual Automobile Insurance Company.

Siemion, Huckabay, Bodary, Padilla, Morganti & Bowerman, P.C. by Charles A. Huckabay, Southfield, for defendant-appellee Snappy Car Rental, Inc.

BEFORE THE ENTIRE BENCH.


BRICKLEY, Chief Justice.

In these three cases, we are called upon to determine whether Michigan's no-fault insurance act is violated by a car rental agreement purporting to shift the responsibility for providing primary residual liability coverage on the vehicle from the owner to the driver and the driver's insurer. We conclude that any such shifting provision is void. Vehicle owners, including the car rental companies in these cases, are required to provide primary...

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