Featherly v AAA Insurance Company; (ICC-UNP, 4/1/1981; RB #411)

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Isabella County Circuit Court; Docket No. 79-009305-NI; Unpublished  
Acting Circuit Judge Alexander T. Strange, II; Written Opinion  
Offiicial Michigan Reporter Citation: Not Applicable; Link to Opinion alt   


STATUTORY INDEXING:  
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]  
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]  
State Workers Compensation Benefits [§3109(1)]

TOPICAL INDEXING:
Not Applicable   


CASE SUMMARY:  
In this written Opinion regarding the subtraction of government benefits from the maximum benefit limit under §3107(b), Judge Strange held that amounts received by the plaintiff in workers' compensation benefits and the statutory 15 percent income tax deduction should both be deducted from the plaintiff’s gross earnings rather than from the monthly statutory maximum. Therefore, plaintiff’s gross monthly earnings of $3,321 would first be reduced by the 15 percent income tax deduction bringing the "benefits payable" down to $2,822.85 per month. This figure is then to be reduced by the amount plaintiff received each month in workers' compensation benefits ($801.66). The remainder, $2,021.19 is in excess of the statutory benefit level ($1,475), thereby entitling plaintiff to recovery of the full monthly maximum in no-fault wage benefits.