MARY ELIZABETH AASTAD V HARVEY JESSIE-LEE EDWARDS
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STATE OF MICHIGAN
COURT OF APPEALS
MARY ELIZABETH AASTAD,
UNPUBLISHED
November 18, 2010
Plaintiff-Appellant,
V
HARVEY JESSIE-LEE EDWARDS, CHERRYL
ARDENIA SANDERS, and AUTO OWNERS
INSURANCE COMPANY,
No. 293101
Ingham Circuit Court
LC No. 07-001506-NI
Defendants-Appellees.
Before: SAWYER, P.J., and FITZGERALD and SAAD, JJ.
PER CURIAM.
Plaintiff appeals an order that granted Auto Owners Insurance Company’s motion for
summary disposition. For the reasons set forth below, we affirm.
I. FACTS
On June 29, 2005, plaintiff sustained injuries because Harvey Edwards struck her car
with a sport utility vehicle owned by Cherryl Sanders. AAA insured the SUV with a policy limit
of $50,000 per injured person. Plaintiff had an automobile policy with Auto Owners that
included underinsured motorist coverage. On October 24, 2007, plaintiff filed a complaint
against Edwards and Sanders and alleged negligence claims against Edwards and asserted that
Sanders is also liable as the owner of the vehicle. Plaintiff and defendants accepted the case
evaluation award of $50,000, and the trial court entered a final judgment reflecting that award on
January 27, 2009.
Thereafter, on March 3, 2009, plaintiff filed a motion to amend her complaint to add
Auto Owners as a defendant. Specifically, plaintiff alleged that her damages were in excess of
$50,000, but that the $50,000 award exhausted the AAA policy limits and Auto Owners refused
to pay additional underinsured motorist benefits. The trial court granted plaintiff’s motion to
amend the complaint and, thereafter, Auto Owners filed a motion for summary disposition.
Specifically, Auto Owners maintained that plaintiff’s claims fall outside the limitations period in
the insurance policy and that a motion to amend a complaint to add a new party does not relate
back to the original filing date of the action. In response, plaintiff contended that allegations
against a new party may relate back to the original complaint but, in any case, Auto Owners
should be equitably estopped from relying on the limitations defense because Auto Owners
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induced plaintiff to believe that it would not enforce the limitations period. After oral argument,
the trial court granted summary disposition to Auto Owners.1
II. ANALYSIS
Plaintiff’s Auto Owners policy states that, for an underinsured motorist claim, the insured
must present a claim for compensatory damages according to the conditions of the policy and the
insured must “conform with any applicable statute of limitations for bodily injury claims in the
state in which the accident occurred.” (Emphasis removed.) Pursuant to MCL 600.5805(10), a
party must file a bodily injury claim in Michigan within three years of the injury. Accordingly,
plaintiff had to file her claim no later than June 29, 2008.
A. Relation Back Doctrine
As noted, plaintiff filed a motion to amend her complaint to add Auto Owners as a
defendant on March 3, 2009. As a preliminary matter, and as the trial court recognized, it should
not have granted plaintiff’s motion to amend her complaint because a final judgment had already
been entered in the case. The judgment entered on January 27, 2009 constituted a final order that
disposed of all of the claims in plaintiff’s original complaint and the court’s file was closed.
Plaintiff did not move for relief from judgment under MCR 2.612, but merely sought, in an ex
parte motion, to amend the complaint to add a claim against Auto Owners more than a month
after the final judgment was entered. Accordingly, the trial court should have denied plaintiff’s
motion as untimely.
Nonetheless, were we to assume the trial court’s ruling to allow the amendment was
legally correct, we hold that the trial court correctly granted summary disposition to Auto
Owners. Contrary to plaintiff’s claim, the addition of a party to the complaint does not relate
back to the original complaint plaintiff filed against Edwards and Sanders on October 24, 2007.
MCR 2.118(D) provides that “[a]n amendment that adds a claim or a defense relates back to the
date of the original pleading if the claim or defense asserted in the amended pleading arose out of
1
As this Court explained in Ligons v Crittenton Hosp, 285 Mich App 337, 342: 776 NW2d 361
(2009):
This Court reviews de novo a trial court’s grant or denial of summary
disposition under MCR 2.116(C)(7). Holmes v Michigan Capital Med Ctr, 242
Mich App 703, 706; 620 NW2d 319 (2000). If there are no factual disputes and
reasonable minds cannot differ regarding the legal effect of the facts, the decision
whether a plaintiff's claim is barred is a question of law. Terrace Land Dev Corp
v Seeligson & Jordan, 250 Mich App 452, 455; 647 NW2d 524 (2002).
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the conduct, transaction, or occurrence set forth, or attempted to be set forth, in the original
pleading.” However, our courts have repeatedly held that “the relation-back doctrine does not
extend to the addition of new parties.” Employers Mut Cas Co v Petroleum Equipment, Inc, 190
Mich App 57, 63; 475 NW2d 418 (1991), citing Gardner v Stodgel, 175 Mich App 241, 249; 437
NW2d 276 (1989). And, contrary to plaintiff’s citation to Hayes-Albion Corp v Whiting Corp,
184 Mich App 410; 459 NW2d 47 (1990), our Supreme Court again ruled in Miller v Chapman
Contracting, 477 Mich 102, 105-108; 730 NW2d 462 (2007), that an amendment that adds an
additional party does not relate back to the original filing of the complaint. Because the
amendment would not and does not relate back to the earlier suit and because plaintiff did not
file a claim against Auto Owners by the three-year statutory deadline, her claim is barred by the
limitations period in the policy.
B. Equitable Estoppel
In the trial court, plaintiff argued that Auto Owners should be equitably estopped from
relying on the statute of limitations defense because Auto Owners induced her to believe that it
would not enforce the limitations period policy provision. It is well settled that, “unless a
contract provision violates law or one of the traditional defenses to the enforceability of a
contract applies, a court must construe and apply unambiguous contract provisions as written.”
Rory v Continental Ins Co, 473 Mich 457, 461; 703 NW2d 23, 26 (2005). Moreover, to the
extent plaintiff urges this Court to adopt a form of “equitable tolling,” this Court has specifically
opined that “[a]pplication of the doctrine of equitable tolling to contractual limitations periods
would be inconsistent with the deference afforded to parties’ freedom to contract, including the
freedom to avoid, by contract, what might otherwise be an applicable rule of law.” Liparoto
Const, Inc v General Shale Brick, Inc, 284 Mich App 25, 31-32; 772 NW2d 801 (2009). Again,
the Auto Owners policy explicitly states that the time limit for filing an underinsured motorist
claim is three years from the date of the accident, as set forth in MCL 600.5805(10). Under an
equitable estoppel theory, plaintiff was required to establish that “(1) defendant’s acts or
representations induced plaintiff to believe that the limitations period clause would not be
enforced, (2) plaintiff justifiably relied on this belief, and (3) she was prejudiced as a result of
her reliance on her belief that the clause would not be enforced.” McDonald v Farm Bureau Ins
Co, 480 Mich 191, 204-205; 747 NW2d 811 (2008). Here, not only was the contract language
clear and unambiguous, Auto Owners clearly stated in a letter to plaintiff’s counsel dated June
18, 2007 that the time limitation for plaintiff to bring an action was three years from the date of
the accident, and the letter specifically set forth the filing deadline of June 29, 2008.2 That Auto
Owners continued to communicate with plaintiff about a potential claim for underinsured
motorist benefits throughout the underlying litigation is quite beside the point because Auto
2
Indeed, Auto Owners explicitly identified the filing deadline in direct response to an inquiry by
plaintiff’s attorney. Specifically, the letter from Auto Owners stated that “[t]he time limitation
for Ms. Aastad to either settle her underinsured claim with Auto-Owners Insurance Company or
to bring action against Auto-Owners Insurance Company will be 3 years from the date of
accident which would be June 29, 2008.”
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Owners clearly and straightforwardly advised plaintiff precisely when the limitations period
would expire and plaintiff simply failed to file a claim within that time. Accordingly, the trial
court correctly granted summary disposition to Auto Owners.3
Affirmed.
/s/ David H. Sawyer
/s/ E. Thomas Fitzgerald
/s/ Henry William Saad
3
For the first time on appeal, plaintiff contends that the limitations period should be judicially
tolled, starting from the time she notified Auto Owners of a potential claim for underinsured
motorist benefits. Plaintiff cites Tom Thomas Org, Inc v Reliance Ins Co, 396 Mich 588; 242
NW2d 396 (1976) to support her assertion. We need not address plaintiff’s claim because she
did not raise it in the trial court. Walters v Nadell, 481 Mich 377, 387-388; 751 NW2d 431
(2008). We note, however, that the Michigan Supreme Court rejected the judicial tolling theory.
See McDonald, 480 Mich 197-201.
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