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### STATE OF MICHIGAN

COURT OF APPEALS

AUTO CLUB INSURANCE ASSOCIATION,

Plaintiff-Appellant, UNPUBLISHED July 19, 2016

v No. 326597 Oakland Circuit Court BRISTOL WEST PREFERRED INSURANCE COMPANY, LC No. 2014-140083-NF

Defendant-Appellee.

Before: R IORDAN , P.J., and S AAD and M. J. K ELLY , JJ.

P ER C URIAM

. In this action for reimbursement of benefits paid under the no -fault act, see MCL 500.3101 et seq. , plaintiff, Auto Club Insurance Association, appeals by right the trial court’s order granting the motion for summary disposition by defendant, Bristol West Preferred Insurance Company. Because the trial court erred when it deter mined that Bristol West was not liable to reimburse Auto Club, we reverse.

Aaron Starkey suffered injuries in a motorcycle accident. He claimed that a silver SUV cut in front of him and caused him to lose control of his motor cycle and crash. Tianna Hunter, who drove the silver SUV, stated that Starkey attempted to spee d past her and lost control of his motorcycle. She said she never changed lanes. Tianna Hunter’s mother insured the SUV with Bristol West.

In September 2012, Starkey sued H unter, her unidentified insur er, and others for damages arising from the motorcycle accident. Hunter did not respond b ecause she believed she was simply a witness and not a party. Because Hunter did not respo nd, Starkey did not know who insured Hunter’s vehicle and the Assigned Claims Facility assig ned his no-fault claim to Auto Club. Auto Club participated in the underlying litigation. Hu nter and her mother testified at depositions. After her deposition in September 2013, Hunter’s mother notified Bristol West of the litigation for the first time.

In November 2013, Auto Club settled the underlying litigation with Starkey and Beaumont Hospital, which had intervened to receive payment for services it provided Starkey. The trial court dismissed the suit after the settlement. Later that same month, Starkey filed another lawsuit; he sued, Hunter, her mother, and another perso n. It is undisputed that neither Hunter nor her mother notified Bri stol West of this subsequent lawsuit.-2- In April 2014, Bristol West inf ormed Hunter and her mother tha t it would not provide coverage for the accident. The trial court also entered a defa ult against Hunter and the other defendants in the second suit.

In April 2014, Auto Club sued Bristol West for reimbursement o f the claims that it had paid on behalf of Bristol West’s insured. Auto Club moved for summary disposition under MCR 2.116(C)(10) on the ground that Bristol West was the insurer wi th higher priority and clearly had an obligation to reimburse Auto Club. Bristol West answered an d moved for summary disposition under MCR 2.116(I)(2). Bristol West argued that St arkey was ineligible for benefits and that it had no obligation to cover Hunter or her mother bec ause they failed to notify it of the accident and subsequent lawsuits. The trial court agreed with Bristol West and granted Bristol West’s motion.

Auto Club then appeal ed in this Court.

Auto Club argues that the trial court erred when it denied its motion for summary disposition and granted Bristol West’s motion. Specifically, i t argues that it has an absolute right to reimbursement under the no-fault act. This Court reviews de novo a trial court’s decision on a motion for summar y disposition. Pransky v Falcon Gp, Inc , 311 Mich App 164, 173; 874 NW2d 367 (2015). This Court also revie ws de novo whether the trial court properly selected, interpreted, and applied the re levant statutory provisions. Id.

Before the trial court and on appeal, Bristol West argues that it has no obligation to provide no-fault insurance benefits because its insured failed to provide it with notice of the accident and underlying litigation, which prejudiced its abilit y to defend. It relies on the defense provided by MCL 257.520(f)(6), which is part of the financial r esponsibility act. See MCL 257.501 et seq. This Court has stated that the Legislature incorporated the r equirements of the financial responsibility act into the no-fault act. See State Farm Mut Auto Ins Co v Roe , 226 Mich App 258, 268; 573 NW2d 628 (1997). However, our Supreme C ourt has since held that appellate courts have erred by i ncorporating the statutory requ irements of the financial responsibility act into the no-fault act because the requiremen ts stated under MCL 257.520(f) only apply to a “motor vehicle liability policy” and the act de fines a “motor vehicle liability policy” as one certified under MCL 257.518 or MCL 257.519. See Titan Ins Co v Hyten , 491 Mich 547, 559-560; 817 NW2d 562 (2012), quoting, in relevant pa rt, MCL 257.520(a) and MCL 257.520(f). Because Bristol West did not present any evidence that the policy at issue was certified under the financial responsibility act, the defense s tated under MCL 257.520(f)(6) does not apply.

Under the no-fault act, an insurer assigned to handle a no-fau lt claim under the assigned claims plan is “entitled to reimbursement from the defaulting i nsurers to the extent of their financial responsibility.” MCL 500.3172(1). Because the right to obtain reimbursement is statutory and not part of a s ubrogation action, the assigned-cl aims insurer’s right to reimbursement cannot be defeated by defenses that might apply t o the underlying claim for coverage. See Williams v Enjoi Transp Solutions , 307 Mich App 182, 187-188; 858 NW2d 530 (2014). Thus, even if lack of notice might be a valid ground f or denying coverage, it is not a defense to Auto Club’s right to reimbursement under MCL 500.317 2(1). Consequently, the trial court erred when it determined t hat—as a matter of law—Bristol West could not be liable to-3- reimburse Auto Club under MCL 500.3172(1) on the ground that it s insured did not give it proper notice.

Reversed and remanded for entry of an order granting Auto Club ’s motion for summary disposition. We do not retain ju risdiction. As the prevailing party, Auto Club may tax its costs. MCR 7.219(A).

/s/ Michael J. Riordan /s/ Henry William Saad /s/ Michael J. Kelly