Desiree Durga v. Memberselect Insurance Company
Court
Michigan Court of Appeals
Decided
August 13, 2025
Jurisdiction
SA
Importance
46%
Practice Areas
Case Summary
If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports. STATE OF MICHIGAN COURT OF APPEALS DESIREE DURGA and JUSTIN DURGA, UNPUBLISHED August 13, 2025 Plaintiffs-Appellees, 9:04 AM v No. 371891 Benzie Circuit Court MEMBERSELECT INSURANCE COMPANY, LC No. 23-012025-CZ Defendant-Appellant. Before: O’BRIEN, P.J., and BOONSTRA and WALLACE, JJ. PER CURIAM. This action arises out of a motor vehicle accident that occurred in June 2023, when plaintiff Desiree Durga was driving a Chevrolet Silverado that was involved in a collision with another motor vehicle. This accident resulted in extensive damage to the Silverado, which was insured by defendant MemberSelect Insurance Company (MemberSelect). Plaintiffs alleged that defendant breached their automobile insurance contract when it rescinded their policy based upon an allegation that Desiree Durga made a fraudulent misrepresentation in the application process. The trial court entered a July 2, 2024 amended order granting plaintiffs’ motion for summary disposition on their breach of contract claim pursuant to MCR 2.116(C)(10) and denying defendant’s cross-motion for summary disposition in which it had argued that it was entitled to rescind the policy. On July 9, 2024, the court entered an order of judgment in favor of plaintiffs in the amount of $82,476.04, and this appeal of right by defendant followed. We affirm. I. FACTS As a result of plaintiff Justin Durga having two or more substance abuse convictions in seven years, his Michigan operator’s license was mandatorily revoked from June 9, 2007 “until requirements have been met.” MCL 257.303(2)(c). -1- In June 2012, plaintiff Justin Durga’s wife, Desiree, applied to obtain automobile insurance from defendant MemberSelect for a Jeep Grand Cherokee that she owned.1 According to plaintiff Desiree Durga, “[a]t that time I fully disclosed to AAA that my husband, Justin Durga, did not have a valid driver’s license.”2 Defendant’s insurance records reflect that plaintiffs have been “AAA Insured” since June 29, 2012. While defendant MemberSelect claims that Desiree Durga’s application for insurance contained a material misrepresentation, it has not produced a copy of her June 2012 application in this case. In response to a request for production of documents seeking to have defendant “[p]roduce the application for insurance that Plaintiff(s) filed with Defendants for the Policy,” defendant responded “This application for insurance no longer exists.” In the lower court, MemberSelect relied upon two documents, a “New Declaration Certificate” (certificate), and an “Automobile Application Addendum and Authorization” (addendum), the latter of which was only signed by AAA sales representative, Jeanine Michalski, at 9:53AM on February 25, 2013. Under a line item labeled “Driver Type,” the certificate states that Desiree Durga is “ASSIGNED”3 and Justin Durga is “NOT LICENSED”; and under another line item labeled “Years Licensed” it states “7” for Desiree Durga and “0” for Justin Durga. Contrarily, in the addendum, next to a line asking “Do all drivers have a valid driver’s license including drivers 16 years of age with a graduated license?” the box marked “Yes” is checked. Again, the addendum reflects a signature by Jeanine Michalski on the “Sales Representative” line, but the “Signature of Applicant” line above it is blank. In her affidavit, Desiree Durga’s avers that “I never stated that Justin Durga had a valid driver’s license, nor did I ever prepare or sign this Addendum.” The addendum indicates that the Durgas carried automobile insurance with Farmers Insurance Exchange through March 15, 2013, and consistent with the certificate, it appears MemberSelect first insured Desiree Durga’s Jeep for the February 25, 2013-August 25, 2013 policy term. This policy was renewed and continued for ten years through the February 25, 2023- August 25, 2023 term at issue in this litigation. Desiree Durga’s affidavit also avers that “every renewal from AAA or MemberSelect continued to state that Justin Durga was not licensed—as 1 The policy of insurance that was in effect on the date of the accident was issued by defendant MemberSelect. In various documents prepared by defendant in this matter, including documents sent to plaintiffs, it refers to itself as “MemberSelect Insurance Company,” “AAA In
Case Details
Case Details
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Status
Decided
Date Decided
August 13, 2025
Jurisdiction
SA
Court Type
federal
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Case Summary
AI-generated comprehensive summary with legal analysis
Case Overview
In the case of Desiree Durga v. Memberselect Insurance Company, the Michigan Court of Appeals addressed significant issues regarding the breach of an automobile insurance contract and the conditions under which an insurance policy may be rescinded. The court's decision, rendered on August 13, 2025, revolved around allegations of fraudulent misrepresentation concerning the driver's license status of Justin Durga.
Legal Issues
The court considered several critical legal questions:
- Did Memberselect Insurance Company breach the insurance contract by rescinding the policy?
- Was the trial court correct in granting summary disposition in favor of the plaintiffs?
- Can the defendant rescind the insurance policy based on alleged fraudulent misrepresentation?
Factual Background
Key facts that shaped the case include:
- Desiree Durga disclosed her husband’s lack of a valid driver’s license during the insurance application process.
- Memberselect Insurance could not produce the original insurance application from June 2012, undermining its claims of misrepresentation.
- The insurance policy was renewed multiple times with acknowledgment of Justin Durga's unlicensed status.
Court's Analysis
The court's reasoning focused on several points:
- The defendant failed to provide sufficient evidence of alleged misrepresentation, particularly as it could not produce the original application.
- The court noted that the terms 'not licensed' and 'unlicensed' are commonly understood to mean lacking permission to act, and Justin Durga was appropriately described as 'unlicensed' due to the revocation of his license.
- The court applied the summary disposition standards under MCR 2.116(C)(10), concluding that there were no genuine issues of material fact that warranted a trial.
Holdings and Decision
The court affirmed the trial court's ruling, leading to the following key holdings:
- The trial court's decision granting summary disposition in favor of the plaintiffs is affirmed, indicating that the insurer breached the contract by rescinding the policy without valid grounds.
- The court ruled that the defendant is not entitled to rescind the insurance policy based on insufficient evidence of fraudulent misrepresentation.
Legal Precedents
Several cases were cited to support the court's reasoning:
- Farmers Ins Exch v. Anderson, 206 Mich App 214 (1994) - Discussed definitions of licensing status.
- Hyten v. 491 Mich 555 - Outlined the burden of proof for fraudulent misrepresentation.
- Bazzi v. Sentinel Ins Co, 502 Mich 410 - Reinforced the need for equitable considerations in rescission cases.
Practical Implications
The ruling in Desiree Durga v. Memberselect Insurance has significant implications for:
- Insurance Law: It underscores the necessity for insurers to provide clear evidence when alleging misrepresentation.
- Contract Law: The decision highlights the importance of adhering to the terms of insurance contracts and the conditions for rescission.
- Fraud Law: The case illustrates the stringent requirements for proving fraudulent misrepresentation in insurance applications.
This decision serves as a precedent for future cases involving insurance fraud and policy rescission, emphasizing the need for clear and convincing evidence to support claims of misrepresentation.
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Case Details
Legal case information
Status
Decided
Date Decided
August 13, 2025
Jurisdiction
SA
Court Type
federal
Legal Significance
Case importance metrics
Metadata
Additional information
Quick Actions
Case management tools