Court Opinion

ID: 9576440
Source: CourtListenerOpinion
Date Created: 2023-08-21 21:24:25.162013+00
Date Added: 2024-06-11T13:07:42.434152
License: Public Domain

*712Michael J. Kelly, J.
(dissenting). I disagree with the majority’s conclusion that the antistacking clause violated rules three and six from Powers v DAIIE, 427 Mich 602; 398 NW2d 411 (1986). Review of the insurance policy and clause in question does not indicate that the antistacking clause violated any of the six rules for construction listed in Chief Justice Williams’ lead opinion in Powers, supra.
In DeMaria v Auto Club Ins Ass’n (On Remand), 165 Mich App 251; 418 NW2d 398 (1987), the Court reviewed an antistacking clause which was very similar to the clause in the instant case, and upheld that clause because it was unambiguous and clearly eliminated duplicate recovery. 165 Mich App at 254-255. Here, Farmers’ antistacking clause for other insurance policies is equally unambiguous and clearly eliminates multiple recovery under other insurance policies issued by Farmers. If anything, the clause in the instant case is more clearly worded and concise than the one in DeMaria.
Nor is it significant that Farmers’ clause was listed under the "Conditions” section of the insurance policy rather than in the "Exclusions” sections. The antistacking clause in DeMaria, supra, was entitled "Coverage Applicability Endorsement” and was found in the amendments and endorsements to the insurance contract. 165 Mich App at 254. Review of Farmers’ policy indicates that the Exclusions section listed specific situations where the policy coverage simply did not apply. However, the Conditions section contained several paragraphs, including the clause at issue, which did not eliminate policy coverage, but merely placed a cap on the amount of recovery in the case of overlapping insurance policies. Farmers’ antistacking clause was not deceptively placed, *713nor did it fail to make clear the coverage cap in the case of additional coverage under multiple policies issued by Farmers.
The trial court also erred by concluding that Farmers’ antistacking clause defeated the insured’s reasonable expectation of coverage. Contrary to the trial court’s holding, prevention of stacking of coverage does not defeat an insured party’s reasonable expectations of coverage. Bradley v Mid-Century Ins Co, 409 Mich 1, 57-58; 294 NW2d 141 (1980). In Bradley, our Supreme Court rejected the argument that "other insurance” clauses which barred duplicate recovery defeated the reasonable expectations of insured parties. Id. These clauses are enforceable to prevent stacking of insurance payments. Id. at 48.1 believe that the trial court clearly erred by concluding that Farmers Insurance Exchange’s antistacking clause was void.
I would reverse the trial court’s decision.