Court Opinion

ID: 9670601
Source: CourtListenerOpinion
Date Created: 2023-08-24 03:23:20.534324+00
Date Added: 2024-06-11T18:16:05.557313
License: Public Domain

Murphy, J.,
(concurring). I concur in the result reached by the majority. I write separately because I do not share the majority’s disagreement with State Farm Mutual Automobile Ins Co v Snappy Car Rental, Inc, 196 Mich App 143; 492 NW2d 500 (1992).
In Snappy Car Rental, the defendant car rental company was self-insured. A provision in the defendant’s car rental agreement permitted the person renting the car to opt to provide primary residual liability insurance. The plaintiff in that case contended that the provision in the defendant’s car rental contract was void because the effect of the provision was to shift the responsibility of providing primary residual liability insurance to the permitted user. The plaintiff further argued that the provision was void because it is not specifically permitted by the no-fault act. This Court held that the provision of the rental agreement was not void as violative of the no-fault act because the provision simply stated the priority of coverage as contracted for by the person renting the car. Although the defendant was not permitted to contract away its statutory obligation to provide residual liability insurance as the owner of the *15car, nor its obligation to provide insurance coverage for permitted users, this Court was constrained to acknowledge that neither the no-fault act nor the financial responsibility act specifically requires an owner to provide primary residual liability insurance for permitted users. Rather, these coverage requirements may be met by the policies of more than one insurer. Snappy Car Rental, supra, 150; State Farm Mutual Automobile Ins Co v Auto-Owners Ins Co, 173 Mich App 51, 54-55; 433 NW2d 323 (1988).
The majority expresses disagreement with this Court’s decision in Snappy Car Rental, and Snappy Car Rental has on at least one other occasion raised concerns by this Court. See Citizens Ins Co of America v Federated Mutual Ins Co, 199 Mich App 345; 500 NW2d 773 (1993). I believe that this arises from confusion concerning the holding in Snappy Car Rental. The majority in this case states that "Snappy held that a person signing a short-term rental agreement for a vehicle can agree that his personal automobile insurance contract will provide primary liability coverage for accidents that occur while he has the rented vehicle and that such an agreement was not void.” Supra, p 13. The majority adds that absent the decision in Snappy Car Rental, it would hold that an owner’s policy is required to provide primary residual liability insurance for a permissive user, relying upon MCL 500.3101(1); MSA 24.13101(1) and MCL 257.520(b)(2); MSA 9.2220(b)(2).
Actually, Snappy Car Rental held merely that if a car rental company includes in its car rental contract an optional provision whereby the renter may provide primary residual liability, this provision is not void as violative of the no-fault act. A review of the statutory authority relied upon by the majority demonstrates that such a provision is *16not precluded. Section 3101(1) of the no-fault act, MCL 500.3101(1); MSA 24.13101(1), requires the owner of a motor vehicle to provide residual liability insurance. Section 520(b) of the Vehicle Code (the financial responsibility act), MCL 257.520(b); MSA 9.2220(b) requires the owner of a motor vehicle to provide insurance coverage for permitted users of the vehicle. While an exclusionary clause of an insurance policy that conflicts with the liability coverage required by the no-fault act is invalid, State Farm Mutual Automobile Ins Co v Ruuska, 412 Mich 321, 336; 314 NW2d 184 (1982), there is no indication that the provision in question in the car rental agreement conflicts with the coverage required by the no-fault act. The owner is still obligated to provide all the coverage required by the no-fault act. Again, the car rental agreement only dictates the priority of coverage. If the lessee or permissive user fails to abide by the terms of the rental agreement by neglecting to obtain adequate insurance coverage, or any insurance at all, the car rental company would remain liable to an injured party to provide residual liability coverage as required by MCL 500.3101(1); MSA 24.13101(1) and MCL 257.520(b)(2); MSA 9.2220(b) (2).
Our goal when interpreting a statute is to discern and give effect to the intent of the Legislature. Great Lakes Sales, Inc v State Tax Comm, 194 Mich App 271, 275; 486 NW2d 367 (1992). If the meaning of statutory language is clear, then judicial construction of the language is neither necessary nor permitted. Lorencz v Ford Motor Co, 439 Mich 370, 376; 483 NW2d 844 (1992). Because neither the no-fault act nor the financial responsibility act specifically requires an owner to provide primary residual liability insurance for permitted users, I do not believe that this requirement may be imposed upon the defendant.