City loses declaratory judgment action addressing coverage for off-duty cop

In Diedo v. City of Inkster, an injury claimant sued the City for a declaratory judgment decision on coverage of an off-duty police officer.  The injury claimant apparently became involved in some form of dispute with the cop, a chase ensued, and an alleged assault occurred.  The City defended the off-duty copy up until the eve of trial and then represented that it owed no insurance coverage for any injuries he may have caused.

The victim sought a Declaratory Judgment of coverage in a separate action and the judge issued a ruling.  The City objected, arguing that the suit was improper and should have been dismissed based on governmental immunity.  The Court of Appeals agreed with the lower court that immunity did not prevent an action, in contract, to determine the extent of the City's insurance obligation--since the victim's action in tort would still be governed by the pertinent immunity statute.