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RORY v. CONTINENTAL INS. CO.

Docket No. 126747. COA No. 5.

703 N.W.2d 23 (2005)

473 Mich. 457

Shirley RORY and Ethel Woods, Plaintiffs-Appellees, v. CONTINENTAL INSURANCE COMPANY, a/k/a CNA Insurance Company, Defendant-Appellant.

Supreme Court of Michigan.

Decided July 28, 2005.

Attorney(s) appearing for the Case

Hakim & Turfe (by David D. Turfe and Maroun J. Hakim), St. Clair Shores, MI, for the plaintiffs.

Garan Lucow Miller, P.C. (by Robert D. Goldstein and Jami E. Leach), Grand Blanc, MI, for the defendant.

Willingham & Cote, P.C. (by John A. Yeager, Matthew K. Payok, and Curtis R. Hadley), East Lansing, MI, for amici curiae Farm Bureau General Insurance Company of Michigan.

Law Offices of Robert June, P.C. (by Robert B. June), Ypsilanti, MI, for amici curiae the Michigan Trial Lawyers Association.

Michael A. Cox, Attorney General, Thomas L. Casey, Solicitor General, and David W. Silver, Assistant Attorney General, Lansing, MI, for amici curiae Linda A. Walters, Commissioner of the Office of Financial and Insurance Services, Department of Labor & Economic Growth.

YOUNG, J.

In this case, the trial court refused to enforce the one-year contractual limitations period contained in the insurance policy issued to plaintiffs. The trial court did so because it concluded that the one-year limitations provision was "unfair," unreasonable, and an unenforceable adhesion clause. The Court of Appeals affirmed, and defendant Continental Insurance Company (Continental) appeals.

This case raises two fundamental questions of contract...

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