Michigan Court of Appeals; Docket # 349465; Published
Judges Sawyer, Letica, and Redford; Per curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Release and Settlements
SUMMARY:
In this unanimous published per curiam decision, the Court of Appeals affirmed the trial court’s summary disposition order dismissing the plaintiff’s first-party action to recover no-fault PIP benefits on the basis of an assignment. The plaintiff, Physiatry and Rehab Associates, filed a lawsuit seeking PIP benefits from the defendant, Westfield Insurance Company, on the basis of an assignment it obtained from its patient, Mohammed Alhalemi. Prior to this lawsuit, Alhalemi filed his own first-party action against Westfield, and after reaching a settlement agreement, Alhalemi executed a release, “releasing and discharge[ing] Westfield . . . from any and all past, present and future claims and demands for no-fault [PIP] insurance benefits arising out of [the underlying motor vehicle collision].” Because Physiatry and Rehab Associates failed to give notice to Westfield of its assignment prior to the settlement in Alhalemi’s separate action, its lawsuit against Westfield was barred.
Mohammed Alhalemi was injured in a motor vehicle collision and received treatment from Physiatry and Rehab Associates. Alhalemi then filed a first-party action against his automobile insurer, Westfield Insurance Company, which ultimately settled for $45,000. After reaching the settlement agreement, Alhalemi agreed to release Westfield from any and all past, present, and future claims for PIP benefits against it. Physiatry and Rehab Associates then initiated its own lawsuit against Westfield on the basis of an assignment it had obtained from Alhalemi, but the trial court ultimately granted summary disposition in Westfield’s favor, because of the release in Alhalemi’s settlement agreement.
The Court of Appeals affirmed, determining that the release operated to extinguish all claims related to the underlying motor vehicle collision, and that Physiatry and Rehab Associates failed to present any evidence that it notified Westfield of its assignment prior to the settlement.
In sum, Alhalemi entered into a settlement which release all claims, past, present, and future that he had against defendant and agreed to pay all medical bills arising from the accident from the settlement. Moreover, plaintiff points us to no evidence that a written copy of the assignment was ever provided to defendant before the settlement agreement was entered into. Accordingly, defendant was properly granted summary disposition.
