Michigan Court of Appeals; Docket No. 224245; Published
Judges Cavanagh, Neff and MacKenzie; unanimous
Official Michigan Reporter Citation: 250 Mich. App. 35, Link to Opinion 
STATUTORY INDEXING:
Interest Penalty for Service Providers [3142]
Penalty Attorney Fees for Service Providers [3148]
TOPICAL INDEXING:
Intervention by Service Providers and Third Party Payors in PIP Claims
CASE SUMMARY:
In this unanimous published opinion by Judge Cavanagh, the Court of Appeals held that medical providers rendering medical and rehabilitation services to auto accident victims are entitled, under the no-fault statute to pursue, in their own names, claims for no-fault penalty interest under section 3142 of the Act and no-fault penalty attorney fees under section 3148 of the Act. With regard to the right of a medical provider to seek and recover penalty interest under section 3142, the court stated:
“MCL 500.3142 does not limit the right to seek penalty interest solely to the injured person and if the Legislature intended to limit the penalty interest provision, it could have done so.... Therefore, the trial court improperly denied plaintiff the right to attempt enforcement of the penalty interest provision, ... accordingly, we remand for determination of whether payments for medical services rendered by plaintiff were overdue.”
With regard to the right of a medical provider to pursue and recover claims for attorney fees under section 3148 of the statute, the court held that a medical provider was properly defined as a “claimant” within the meaning of section 3148(1) and therefore, could properly enforce the penalty attorney fee provisions of this section. In this regard, the court stated:
“Defendant contends that the word ‘claimant’ means that only the injured person may pursue attorney fees.... In this case, ... because plaintiff properly submitted a claim for personal protection insurance benefits for the benefit of defendant’s insured, plaintiff was entitled to such payment within the time limits imposed by the no-fault act. Consequently, plaintiff was a claimant within the plain meaning of the statute and, thus, had the right to attempt recovery of its attorney fees expended in pursuit of recovering overdue benefits. Therefore, the trial court improperly denied plaintiff the right to attempt enforcement of MCL 500.3148(1); accordingly, we remand for determination of whether defendant unreasonably refused or delayed payment of plaintiff’s claim.”
In reaching these conclusions, the court distinguished its earlier opinion in Darnell v Auto-Owners Insurance Company, 142 Mich App 1 (1985), which denied recovery of penalty interest and penalty attorney fees to a no-fault insurer who had been assigned a claim from the Assigned Claims Facility and was seeking recoupment from another insurer. The court noted that the plaintiff in the case at bar was not an Assigned Claims insurer. Rather, the court stated:
“Plaintiff was a health care provider that had the right to, and did, submit claims for medical benefits for the benefit of defendant’s insured.... Further, contrary to defendant’s arguments on appeal, the imposition of the no-fault penalty provisions in these circumstances furthers the purpose and goal of the no-fault act.... The goal of the no-fault system was ‘to provide victims of motor vehicle accidents assured, adequate, and prompt reparation for certain economic losses.’ The no-fault act does not, however, accomplish its purpose or goal by sanctioning actions of no-fault insurers that include unreasonable payment delays and denials of no-fault benefits which force the commencement of legal action by the injured person’s health care provider. Moreover, the no-fault act may not be used by a no-fault insurer as a vehicle to shift the burden of the injured person’s economic loss to a health care provider or as a weapon against rightful payees to a payee’s unjustified economic detriment. This case presents an example of the economic burden that is often imposed on health care providers who render services to an insurer’s injured party.”
