54-A District Court; Docket No. 75-272; Unpublished
Judge Terrance A. Clem; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Workers Comp Liens Regarding Auto Tort Claims [§3116]
TOPICAL INDEXING:
Workers Disability Compensation Act (MCL 418.1, et seq.)
CASE SUMMARY:
In a written Opinion, Judge Terrance A. Clem held that a workers' compensation carrier was not entitled to be reimbursed out of a no-fault tort recovery that was limited to noneconomic losses. Judge Clem adopted the rationale and holding of the Court of Appeals decision in Flower v Gensterblum (item number 126). Judge Clem distinguished the pre-no-fault decision of Pelkey v Elsea Realty, 394 Mich 485 (1975), which held that a workers' comp carrier could receive reimbursement out of that share of a tort settlement allotted to pain and suffering. Judge Clem noted that when Pelkey was decided a tort action could be brought for economic as well as noneconomic losses. Thus, any settlement would include both kinds of damages. Since no-fault was enacted, tort settlements with insured tortfeasors only include noneconomic losses. Thus, the workers' compensation carrier cannot share in those proceeds.