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Farmers Insurance Exchange v. AAA of Michigan

6/3/2003

ldren to and from school constituted an incidental or small part of her day care business. Furthermore, a conclusion that the day care provider's incidental driving of the children to school did not constitute the operation of a vehicle in the business of transporting passengers under § 3114(2), is consistent with this Court's observations that the Legislature intended § 3142(2) to apply in "commercial" situations. State Farm, supra at 114.


IV. Conclusion


In sum, we hold that the applicability of § 3114(2) of the no-fault act depends on a primary purpose/incidental nature inquiry with respect to whether a motor vehicle is operated in the business of transporting passengers. Under the facts of the present case, § 3114(2) does not apply, and thus plaintiff is first in priority to pay the no-fault benefits in question. Accordingly, we reverse and remand to the district court for entry of judgment in favor of defendant.


Reversed and remanded for further action consistent with this opinion. We do not retain jurisdiction.


Joel P. Hoekstra


Michael R. Smolenski


Karen Fort Hood






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