Michigan Court of Appeals; Docket #302482; Unpublished
Judges Murphy, Fitzgerald, and Meter; unanimous; per curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Requirement that Benefits Were Unreasonably Delayed or Denied [§3148(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous unpublished per curiam Opinion, the Michigan Court of Appeals vacated the trial court's Order awarding attorney fees and remanded for further proceedings to allow the trial court to engage in a fact-specific inquiry to determine the reasonableness of State Farm's refusal/delay in paying plaintiff's claims for no-fault benefits.
The plaintiff in this case was injured in a motorcycle/motor vehicle collision that occurred on July 4, 2008. Plaintiff's injuries included an amputation of his left leg. State Farm paid some of plaintiff's claims for no-fault benefits, but the plaintiff ultimately filed a lawsuit because of disputes over the payment of home modifications, attendant care, case management services, and other miscellaneous expenses. The case proceeded through discovery and, shortly before trial, State Farm agreed to pay approximately $30,000 in relation to many of the disputed expenses. However, the case proceeded toward trial on expenses related to home modifications, attendant care, and penalty interest. The jury ultimately found that the plaintiff incurred $2,500 in allowable expenses for home modifications and $8,500 for attendant care expenses. The jury found that some of the expenses were overdue and awarded penalty interest to the plaintiff. Following the verdict, the trial court granted plaintiff's motion for attorney fees under MCL 500.3148(1). However, in awarding plaintiff attorney fees, the trial court never made any determination regarding the reasonableness of defendant's delay or refusal to pay.
In vacating the trial court's order regarding the attorney fee award, the Court of Appeals found that under the plain language of MCL 500.3148 and the Supreme Court's holding in Moore v Secura Ins, 482 Mich 507 (2008), a trial court must engage in a fact-specific inquiry to determine whether the insurer unreasonably refused to pay the claim or unreasonably delayed in making proper payment. The Court of Appeals ultimately concluded that while the trial court addressed the reasonableness of the attorney fees requested, it failed to specifically address the reasonableness of State Farm's actions.
