Michigan Court of Appeals; Docket No. 181214; Unpublished
Judges Doctoroff, Hood, and Gribbs; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to opinion 
STATUTORY INDEXING:
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]
Social Security Disability Benefits [§3109(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals held that Auto Owners’ claim for reimbursement of no-fault benefits pursuant to a social security disability set off was permissible because the Supreme Court decision in Profit v Citizens Insurance Company of America, 444 Mich 281; 506 NW2d 514(1993) (Item No. 1632) was retroactive.
In Profit, the Supreme Court held that social security disability benefits should be subtracted from work loss benefits otherwise due under the no-fault insurance policy as governmental benefits set offs within the meaning of §3109(1). The Supreme Court held that social security benefits are not other health and accident coverage within the meaning of §3109a. The Supreme Court decision reversed the prior decision of the Court of Appeals on the same issue.
In this case, the Court of Appeals held that the Supreme Court decision in Profit, supra, was not a new rule of law, in that it did not overrule established precedent and did not decide an issue of first impression, or overrule clear precedent, in that the Supreme Court in Profit made clear that it was following past precedent in ruling that the benefits are subject to mandatory set off.
Based upon the fact that Auto Owners had clearly indicated its intention to pay the no-fault benefits subject to a reservation of rights to seek reimbursement of its claimed set off, the Court of Appeals remanded to the trial court for entry of summary disposition in favor of Auto Owners Insurance. However, the Court of Appeals limited the recovery of the claimed set off to the lump sum retroactive workers' compensation award that the insured expected to receive.
