Case Name: Estate of Gilmore v. Nationwide Insurance Company

Issue: Is a college student living on campus a "resident" of the household where her parents and brother lived at the time of the accident for purposes of determining coverage for a third-party claim?

Court: Michigan Court of Appeals, unpublished.

Holding: Julie Erke, an on-campus college student, was driving a speeding car which veered off the road, rolled over, and hit a tree and rock. Three of Erke’s passengers died, and another was seriously injured. The estates of the decedents sued Erke, alleging that her negligence in operating the vehicle caused the accident. In addition to Erke’s own primary insurance policy, her parents and brother had automobile insurance policies with Nationwide Insurance Company. Additional coverage for Erke was sought under the Nationwide policies.

Nationwide filed a declaratory action claiming Erke was not considered a "resident" of the family home for purposes of coverage. The trial court held that, although Erke was indeed living on campus at the time of the accident, she was considered a "resident" of the family home under the Nationwide policies. Therefore, additional coverage was available to her under those policies. In reaching its conclusion, the trial court considered (1) Erke's intent regarding her residency, (2) the address on Erke’s driver's license was that of her family home, (3) Erke maintained possessions at the family home, and (4) Erke used family home’s mailing address for numerous purposes.

The Court of Appeals held the determination of residency for purposes of insurance coverage must be examined under the totality of circumstances and relevant factors. This analysis includes consideration of the subjective or declared intent of the individual. While this case presented a "close call," the trial court’s analysis displayed sound, logical reasoning in providing the basis for its conclusion. Moreover, the Court of Appeals could not conclude "the evidence clearly preponderated in the opposite direction" of the trial court’s finding regarding Erke’s residency nor that Nationwide owed coverage to her.

Copyright 2004 Secrest, Wardle, Lynch, Hampton, Truex and Morley, P.C.

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