GAF Sales & Service, Inc. v. Hastings Mutual Insurance

Plaintiffs appeal by leave granted from a January 23, 1995, order granting defendant’s motion for summary disposition in this action arising out of an insurance contract between the parties. We affirm.

The facts are not in dispute. The individual plaintiffs were originally employed by Cochlea Corporation. Cochlea manufactured sorting machines that inspect industrial fasteners to determine if they meet a predetermined quality standard. The machines rely on complex computer software. When Cochlea sold the machines, it did not sell the software that ran them. Instead, it granted the purchaser a…