Traverse City State Bank v. Ranger Insurance

This is an action to recover on an insurance policy covering an airplane which was illegally converted by a lessee. Defendant insurance company issued its policy to the owner of the plane and added an endorsement covering the interest of plaintiff bank which held a lien on the plane as the result of its loan to the owner. We are asked to decide if the action is barred by the applicable statute of limitation. The trial judge ruled that it was, and granted the defendant’s *152motion for accelerated judgment under GCR 1963, 116.1(5).

The proofs show that the plane was illegally converted on September…