Justices focus on proprietary-function exception, burden at summary disposition and controlling precedents

Oct 8, 2026

Argument centered on whether the proprietary-function exception (primary pecuniary purpose) was properly treated at summary disposition, with counsel and justices debating Coleman, Dextrom and Lowry precedents and whether remand for an evidentiary hearing is required.

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The central legal question before the panel was whether the Court of Appeals erred in concluding no genuine issue of material fact existed on whether the beach operation's primary purpose was pecuniary. Counsel and justices debated whether the record's conflicting expert affidavits, public statements and accounting gaps required remand for an evidentiary hearing under Dextrom.

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