Coverage for Settlement – Michigan

Citizens Ins. Co. of Am. v. Livingston Cnty. Road Comm'n
No. 164951, --- N.W.3d ---, 2024 WL 1979983 (Mich. May 3, 2024)

The Michigan Supreme Court reversed the Michigan Court of Appeals and held that the parties did not have a binding settlement agreement for a pollution coverage dispute.

The Livingston County Road Commission (Road Commission) was involved in an insurance coverage dispute with three of its insurers, Citizens Insurance Company of America, Amerisure Mutual Insurance Company and Auto-Owners Insurance Company (Insurers). The parties attended a pre-suit mediation to try to avoid litigation over the insurers' refusal to defend the Road Commission in an environmental contamination lawsuit. The parties reached an agreement but that agreement required approval by a county commission. The Insurers sued the Road Commission in an attempt to enforce the parties' pre-suit settlement or in the alternative to allow further discovery on the issue.