SMDA SECURES LANDMARK SUPREME COURT DECISION REGARDING INSURANCE COVERAGE FOR CHILDREN OF DIVORCED PARENTS

On July 22, 2026, the Michigan Supreme Court released its decision in Frownfelter v Esurance, Docket Nos. 168356 and 168357, wherein the Court overturned its 2013 decision in Grange v Lawrence, and set forth a new standard for determining the domicile of children of divorced parents within the auto insurance context. 

Under the new standard, domicile is determined by looking to the reality of the child’s living situation. In other words, when a child of divorced parents is involved in an auto accident, they now draw no-fault auto insurance benefits from the parent with whom they were actually living at the time of the accident. 

Under the prior standard set forth by the Supreme Court thirteen years ago, the child custody order controlled. This was the case even if the parents had strayed from the terms of this order in the years following their divorce. Accordingly, if a child custody order provided that physical custody was with the child’s father, but the parents had agreed amongst themselves that the child was to live with the mother, the child would be forced to claim no-fault benefits under the father’s policy. 

The rule created even more confusion where, as is often the case, the child custody order provided for the parents to have split custody. In this situation, the child’s domicile rotated between the parents, and was based on whichever house the child had spent the night at last. Therefore, even if a child spent 29 days at its mother’s house, and 1 day at its father’s house, the father’s house would be the child’s domicile had the 1 night the child spent at father’s house been night before the accident. 

The practical consequence of this rule was that it did not allow parents to make informed decisions as to the insurance coverage they were purchasing for their children. This was compounded by the fact that the Grange rule was not well known, and it was common for the parent with whom the child did not primarily live to purchase less insurance coverage, thinking that the child would be covered under the other parent’s insurance. 

SMDA attorney Sean Serafini authored the brief that was submitted on appeal to the Supreme Court and he argued the case before the Court on April 9, 2026. 

“The Supreme Court’s reversal of this rule corrects what was an unworkable and unrealistic standard, and provides clarity to both parents and insurance companies,” said Serafini. “It is also notable that this was a 7-0 unanimous decision. For most Courts, including many past iterations of this Court, a unanimous opinion was unheard of. However, for this Court, it seems to be increasingly common. This Court has become an example for other courts across this country of what can be accomplished when party lines and allegiances are set aside in favor of reaching the right decision; even when that means overruling older caselaw.”

Mr. Serafini’s oral argument before the Supreme Court can be viewed here, and the Court’s full decision is available to read here.  

ABOUT SMDA LAW

This decision comes during SMDA’s 20^th anniversary. The firm was established in 2006 by Phillip Serafini (Sean’s father), Jeffrey Michalowski, and Pat Derkacz. Since its inception, the firm has remained in Macomb County. Sean Serafini joined the firm in 2023. Phil and Sean primarily operate the firm’s personal injury and auto no-fault practice, while Jeff specializes in estate planning and probate, and Pat focuses on disability insurance appeals while also handling auto no-fault cases. 

All three founding partners are still in practice, and Phil and Sean are actively engaged in changing Michigan law for the better. This is the second time in the past year that Sean Serafini has won an appeal that has resulted in new law, following the Court of Appeals’ November 2025 decision in McPherson v Alten Homes. That decision closed a loophole that allowed companies to escape liability by obfuscating liability through multiple LLCs and other corporate entities. That case is available to read here. Additionally, in September 2025, Phil Serafini was invited to testify before the Senate Insurance and Finance Committee regarding insurance reform and insurer bad faith. A video of his presentation is available here.  

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Contact Information:

SMDA LAW, PC

44444 Mound Rd #100

Sterling Heights, MI 48314

Phone: (586) 264-3756

Toll Free: (866) 529-3537

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