Michigan Court of Appeals; Docket No. 186678; Published
Judges Saad, Griffin, and Cherry; Unanimous; Opinion by Judge Saad
Official Michigan Reporter Citation: 223 Mich App 1; Link to Opinion 
STATUTORY INDEXING:
Calculation of Survivor’s Loss Benefits and Maximums [§3108(1)]
Social Security Survivor’s Benefits [§3109(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous published Opinion by Judge Saad, the Court of Appeals reversed the trial court and held that a no-fault insurer was entitled to seek reimbursement for certain survivor's loss benefits it paid to decedent's children where those benefits had been paid without any offset for social security benefits received by those children. The insurance company in this case had decided not to offset social security benefits because the issue of the validity of such an offset was pending before the Michigan Supreme Court in Profit v Citizens Insurance Company [Item No. 1443]. The insurance company paid the benefits upon the specific condition that it would seek reimbursement if the Supreme Court reversed the Court of Appeals in Profit and upheld the validity of the set off. When the Supreme Court subsequently reversed the Profit decision, the insurance company sought reimbursement in an amount equal to the social security benefits that it had not previously withheld. In reversing the trial court, the Court of Appeals ruled that the beneficiaries of these survivor's loss benefits accepted payment with the express understanding that a set off would be sought if the Profit decision was reversed. Therefore, once reversal occurred, the insurance company was legally entitled to pursue reimbursement.
In upholding the right of the insured to seek reimbursement, the Court of Appeals also rejected the argument that reimbursement could only be made from the date the Supreme Court reversed Profit. The court held that profit must be applied retrospectively as it did not involve a new rule of law. Rather, it interpreted the law in its original form. Therefore, the insurer's right to reimbursement was retroactive to the commencement of the claim.
