Cook v DAIIE; (WCC-UNP, 4/30/1980; RB #331)

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Wayne County Circuit Court; Docket No JZ9-909972-AV; Unpublished  
Judge William L. Cahalan; Written Opinion  
Official Michigan Reporter Citation: Not Applicable; Link to Opinion alt   


STATUTORY INDEXING:  
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]  
Interest Penalty Additive to Judgment Interest [§3142]  
Calculating Attorney Fees Based on Contingent Fee [§3148]

TOPICAL INDEXING:
Civil Judgments and Interest (MCL 600.6013)   


CASE SUMMARY:  
In a written Opinion regarding an appeal from the District Court, Judge William Cahalan ruled as follows:

1.    A victorious plaintiff in an action for first party benefits is entitled to recover both 12 percent interest under §3142 of the No-Fault Act and the six percent civil judgment interest under the RJA. Judge Cahalan ruled that the 12 percent interest on overdue payments is in the nature of exemplary damages. Such being the case, the money judgment interest of six percent as provided in MCLA 600.6013 is not superseded by the 12 percent provision of §3142. Thus, both kinds of interest are recoverable.

2.    An award of attorney fees under §3148 of the Act based on a contingency fee arrangement was within the limits of reasonableness as provided by GCR 928.2 and thus appropriate.