Excess Economic Loss Damages
Excess economicloss damages consist of those past, present, and future out-of-pocket expenses that are not compensable by no-fault PIP benefits. The No-Fault Act provides that if an injured person suffers excess-economic-loss damages, then the injured person can recover those damages in the liability claim against the negligent driver who caused the accident.
For example, these excess-economic-loss damages would be recoverable if the injured person has a high income and the monthly no-fault wage loss benefit does not fully compensate that person for his or her full lost wages. Similarly, if the injured person is disabled permanently or for an extended period of time and, as a result, will sustain a loss of income beyond the three-year no-fault work loss benefit period, then excess-economic-loss could be recovered in the liability claim.
Excess Replacement Services no longer Compensable
Notably, however, the Michigan Supreme Court has recently limited a Plaintiff’s ability to collect certain excess economic damages. In the 2012 decision of Johnson v Recca, ____ Mich ____ (2012), the Court determined that tort damages for excess replacement service expenses are not recoverable under Section 3135(3)(c) of the No-Fault Act, because replacement services are not among the specific categories of damages listed in that section.
No Threshold Injury Requirement for Excess Economic Loss
With regard to claims for excess-economic-loss damages, it is very important to emphasize that the No-Fault Act and case law are very clear that an injured person need not prove a threshold injury (serious impairment of body function or permanent serious disfigurement) in order to recover excess-economic-loss damages.
Excess Economic Loss Claims not Barred by Comparative Negligence
It is also important to note that under the 1995 amendments to the No-Fault Act, liability claims for excess-economic-loss are not prohibited where the injured person was more than 50 percent comparatively negligent or where the injured person was the owner and operator of an uninsured motor vehicle involved in the accident.