Michigan follows “Sutton Rule” (see Oklahoma). The fire insurer is not entitled, as subrogee, to bring an action against the tenant to recover for amounts paid to landlord for fire damage to rental premises caused by the tenant’s negligence in absence of an express agreement between the landlord and tenant to the contrary. The landlord and tenant are co-insureds under the fire policy. N.H. Ins. Group v. Labombard, 399 N.W.2d 527, 531 (Mich. App. 1986). However, more recent decisions indicate that the Labombard decision applies only to negligence cases – not to cases based on breach of contract. Laurel Woods Apartments v. Roumayah, 734 N.W.2d 217 (Mich. App. 2007). In Roumayah, the lease stated, “Tenant shall also be liable for any damages to the Premises…that is caused by the acts or omissions of Tenant or Tenant’s guests.” The Court held that the tenant was contractually liable for “any damage” caused by their acts, and that this was not limited to negligent acts. The landlord was allowed to pursue the tenant based on a breach of the lease agreement, notwithstanding Labombard. This was later extended to specifically include subrogation claims. American States Ins. Co. v. Hampton, 2008 WL 4724279 (Mich. App. 2008).