Michigan Court of Appeals; Docket No. 165787; Published
Judges Fitzgerald, Cavanagh, and Pannucci; Unanimous; Per Curiam
Official Michigan Reporter Citation: 214 Mich App 106; Link to Opinion 
STATUTORY INDEXING:
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]
State Workers Compensation Benefits [§3109(1)]
Social Security Disability Benefits [§3109(1)]
TOPICAL INDEXING:
Legislative Purpose and Intent
Social Security Disability and Death Benefits
CASE SUMMARY:
In this unanimous published per curiam Opinion dealing with ah issue of apparent first impression, the Court of Appeals held that a no-fault insurance company is entitled to deduct both federal social security death benefits and state workers' compensation benefits against no-fault survivor's loss benefits under the provisions of §3109(1) of the Michigan No-Fault Act.
The decedent in this case was killed in an automobile accident, and his dependents received federal social security survivors' benefits, as well as state workers' compensation benefits, the sum total of which exceeded the statutory maximum no-fault benefit applicable at the time of the injury. The plaintiff contended that the no-fault insurance company could offset either the federal social security benefits or the state workers' compensation benefits but not both. In support of this conclusion, the plaintiff focused upon the language of §3109(1) of the act which states that "benefits provided or required to be provided under the laws of any state OR the federal government shall be subtracted from the personal injury benefits otherwise payable for the injury." (emphasis added)
The Court of Appeals rejected the argument that the word "or" only permitted a set off of one type of governmental benefit. As used in this context, the Court of Appeals stated "it is clear that the Legislature intended to have the clauses read in the conjunctive," and, therefore, "the word 'and' can be substituted for the disjunctive 'or'." Thus, a set off of both governmental benefits was appropriate.
