Michigan Supreme Court to Consider PIP Eligibility in Commercial Vehicle Dispute

Abdulla v Progressive Southeastern Insurance Co involves a first-party no-fault insurance dispute. Abdulla sustained injuries while driving a commercial tractor-trailer. A nonparty contractor, Tornado Trucking, held title to the tractor and held an insurance policy with Great American Insurance Company. At the time of the accident, Abdulla was hauling cargo for Land Trucking (the carrier), who held an insurance policy with Progressive. Abdulla resided with his family and his father held a policy with Auto Club. The policy did not name Abdulla as a named insured nor was the commercial tractor listed as a covered vehicle.

Abdulla sued all three insurers, and Auto Club moved for summary disposition, asserting that Abdulla could not receive PIP benefits under MCL 500.3113(b). Auto Club argued that Abdulla, as the “owner” of the tractor under MCL 500.31301(3)(1) was statutorily obligated to maintain PIP coverage for the tractor, which he did not do. The trial court denied Auto Club’s motion.

On appeal, the Court of Appeals held that the trial court did not err in denying Auto Club’s dispositive motion as MCL 500.3113(b) did not bar Abdulla’s suit and Abdulla did not own the tractor. Also, the trial court did not err in finding Auto Club to be the first-priority insurer.  Abdulla v Progressive Se Ins Co, ___ Mich App ___; ___ NW3d ___ (Docket Nos. 364797; 364866); slip op at 4-5. The Court of Appeals further concluded that none of the exceptions under MCL 500.3114 applied, directing Abdulla to look at the policy of “a relative domiciled in the same household.” Id. at __; slip op at 5. Judge Jansen dissented, explaining that Abdulla owned the tractor and his reliance on a relative’s coverage would undermine the no-fault act’s requirements under MCL 500.3101.

Auto Club applied for leave to appeal to the Michigan Supreme Court. On May 22, 2025, the Supreme Court issued a MOAA order indicating that it would consider Auto Club’s application. Abdulla v Progressive Se Ins Co, unpublished order of the Michigan Supreme Court, entered May 22, 2025 (Docket No. 167532-3). The Supreme Court is set to consider the following questions after supplemental briefing:

(1) whether the plaintiff was an “owner” of the motor vehicle at issue within the meaning of MCL 500.3101(3)(l)(i); and

(2) whether the plaintiff is entitled to personal protection insurance benefits as a relative of the named insured domiciled in the same household (MCL 500.3111, MCL 500.3114)

The Supreme Court invited amici who appeared at the application stage to file supplemental briefs amicus curiae, as well as CPAN (Coalition Protecting Auto No-Fault) and the Michigan Association for Justice to file briefs amicus curiae.