Michigan Court of Appeals; Docket No. 193120 ; Unpublished
Judges Taylor, Griffin, and Markey; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
General / Miscellaneous [§3116]
TOPICAL INDEXING:
Collateral Source Rule (MCL 600.6303)
CASE SUMMARY:
In this unpublished per curiam Opinion involving a highway liability claim against the Michigan Department of Transportation (MDOT), the Court of Appeals reversed the trial court and held that no-fault PIP benefits are a "collateral source " for which defendant MDOT is entitled to a set off under the provisions of MCLA 600.6303. The trial court had refused to allow MDOT to set off PIP benefits as a collateral source because plaintiff's no-fault insurance company (Auto Club Insurance Association [ACIA]) was attempting to assert a contractual lien on plaintiffs MDOT recovery. However, the Court of Appeals, relying upon Great Lakes American Life Insurance Company v Citizens Insurance Company [Item No. 1536] and Citizens Insurance Company v Pezzani & Reid Equipment Company, Inc. [Item No. 1670], held that a no-fault carrier is not entitled to assert contractual lien rights under §3116 of the statute. Section 3116 only permits a no-fault carrier to be reimbursed in three situations: (1) accidents occurring outside the state, (2) actions against uninsured owners or operators, or (3) intentional torts. Plaintiffs tort recovery against MDOT did not involve any of these three types of claims, therefore plaintiffs no-fault insurer was not entitled to a contractual lien on plaintiffs third party recovery, which meant that MDOT, as a tortfeasor, was entitled to a set off for these collateral benefits which were received by plaintiff without any obligation to repay said benefits. Thus, a collateral source set off was appropriate.