Attorneys Lauren A. Frederick and Brian A.Catrinar successfully obtained summary disposition in a no-fault priority dispute between the plaintiff’s personal auto insurer and the insurer of a city-sponsored transportation van. At issue was whether the van at issue was being operated in the business transporting passengers pursuant to MCL 500.3114(2). Also at issue was the novel priority issue of whether the van fit the definition of a “bus” under the no-fault act, thereby triggering an exception to MCL 500.3114(2). Using the “primary purpose/incidental nature test,” Judge Chabot of the Oakland County Circuit Court held that the city-sponsored transportation van was being operated in the business of transporting passengers at the time of the accident, and that it did not qualify as a bus to trigger any of the exceptions set forth in MCL 500.3114(2). Therefore, the insurer for the city-sponsored van was first in the order of priority for payment of the plaintiff’s no-fault benefits.
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