Pena-Cruz — Court adopts implied-permission test and remands no-fault dispute

Case
Tiburcio Pena-Cruz and Jonathan Pena-Garcia v State Farm Mutual Automobile Insurance Company
Court
Michigan Court of Appeals
Judge
Colleen A. O’Brien (Rick Snyder, 2015); Stephen L. Borrello (Jennifer Granholm, 2003); Mark T. Boonstra (Rick Snyder, 2012)
Date Decided
October 2, 2026
Docket No.
364284
Topics
No-Fault Insurance, PIP Benefits, Implied Permission, Unlawful Taking
Source
Read the full opinion

Background

Tiburcio Pena-Cruz and his son, Jonathan Pena-Garcia, were involved in a serious collision while Tiburcio was driving an F-150 owned solely by his wife, Maria Garcia-Lopez. Maria and Tiburcio had lived apart for about two years. Maria had given Jonathan permission to use the truck, but she had neither expressly permitted nor expressly forbidden Tiburcio from driving it. Tiburcio, who lacked a driver’s license and had never previously driven the F-150, took the wheel after Jonathan said he was tired.

After State Farm refused to pay Tiburcio no-fault benefits, he sued. State Farm sought summary disposition under MCL 500.3113(a), arguing that Tiburcio was disqualified because he had unlawfully taken the truck and knew or should have known that fact. The circuit court found a genuine factual dispute based on Jonathan’s permission and Maria’s failure expressly to prohibit Tiburcio from driving. Following an earlier appeal, the Michigan Supreme Court vacated the Court of Appeals’ prior decision and remanded for reconsideration in light of Swoope v Citizens Insurance Company of the Midwest.

The Court’s Holding

The Court of Appeals held that when a vehicle’s owner neither expressly permits nor expressly forbids a driver from taking the vehicle, courts must determine whether the driver had the owner’s implied permission. That inquiry considers all facts and circumstances surrounding the taking, including the owner’s words and conduct, the driver’s prior use of the vehicle, and any course of conduct involving the owner’s knowledge and acquiescence. Although the inquiry is viewed from the driver’s perspective, the decisive question is whether the owner impliedly authorized the taking.

The court rejected both sides’ proposed shortcuts. Jonathan’s permission mattered only to the extent it affected Tiburcio’s understanding of whether Maria had authorized him to take the truck. Tiburcio’s lack of a license likewise was relevant only insofar as it informed his understanding of whether Maria would permit the taking; unlawful operation does not itself establish an unlawful taking under MCL 500.3113(a).

Because the circuit court relied exclusively on a chain-of-permissive-use theory and did not apply the new totality-of-the-circumstances test, the Court of Appeals vacated its ruling and remanded. The appellate court expressed no opinion on whether a genuine issue of material fact ultimately exists or whether the case should proceed to trial.

Key Takeaways

  • When an owner is silent about a driver’s use of a vehicle, MCL 500.3113(a) requires an inquiry into whether the driver had the owner’s implied permission.
  • Permission from an authorized intermediary does not by itself establish that the owner authorized the driver’s taking.
  • A driver’s unlicensed or otherwise illegal operation is relevant only if it bears on whether the driver understood the owner to have authorized the taking.

Why It Matters

The published decision supplies a test for no-fault cases that do not fit the established express-permission or express-prohibition categories. Courts must examine the full context from the driver’s perspective instead of treating the owner’s silence, an intermediary’s permission, or unlawful driving as independently dispositive.

The ruling also reinforces the distinction between unlawfully taking a vehicle and unlawfully operating it. Only the former triggers the taking requirement in MCL 500.3113(a), together with the statute’s knowledge component.

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