Allstate Insurance Company v Scheilan Faulhaber; (COA-UNP, 1/6/1987; RB #1000)

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Michigan Court of Appeals; Docket No. 90271; Unpublished    
Judges Danhof, Branson, and Gillespie; Unanimous; Per Curiam    
Official Michigan Reporter Citation:  Not Applicable; Link to Opinion alt     


STATUTORY INDEXING:    
Applicability of Limitations Period to Claims by Insurers Against Injured Persons [§3145]

TOPICAL INDEXING:
No-Fault Insurer Claims for Reimbursement    


CASE SUMMARY:  
In this unanimous per curiam Opinion, the Court of Appeals reversed a judgment by the trial court dismissing Allstate's action for reimbursement of no-fault benefits paid pursuant to an assigned claim.

JacLynn Faulhaber was injured in an automobile accident while occupying an automobile owned by the defendant, Scheilan Faulhaber. The vehicle was not insured with a policy of no-fault insurance, and as a result, Allstate paid no-fault benefits as an assigned claim. Allstate then, as subrogee to JacLynn Faulhaber, commenced the present action against defendant, requesting recoupment of the monies paid to Ms. Faulhaber. Defendant moved for summary disposition on the basis of the one-year statute of limitations set forth in MCLA 500.3145. Allstate argued for a six year statute of limitations. The trial court found that a three year statute applied and dismissed the action. During the pendency of this lawsuit the Legislature amended the No-Fault Insurance Act to provide for a specific statute of limitation for an action to enforce rights to indemnity or reimbursement against a third party. Prior to the enactment of the statutory amendment, there was no clear statute of limitations governing such actions. If applicable, the amended statute would not bar Allstate's claim.

The Court of Appeals ruled in this case that the new statute of limitation should apply, despite the fact that the enactment did not become effective until after Allstate made their last payment. The Court ruled that the amendment should be considered remedial or procedural, inasmuch as it was designed to correct an existing oversight in the law. As such, the amendment should be applied retroactively to Allstate's claim against defendant