Michigan Court of Appeals; Docket No. 113634; Unpublished
Judges Cynar, Marilyn Kelly, and T.G. Kavanagh; 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)]
Veterans / Military Benefits [§3109(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals vacated the decision of the trial court regarding a disputed governmental benefits setoff for United States Air Force active duty pay and disability retirement pay.
Plaintiff was injured in a motor vehicle accident occurring while he was on route to Air National Guard training.
Defendant insurance company argued that it was entitled to setoff, under §3109, the amount of income plaintiff received from the United States Air Force in active duty pay and disability retirement pay against the amount owed in work loss benefits. Plaintiff argued that the benefits did not meet the tests established by the Supreme Court in Jarosz v DAIIE, 418 Mich S65 (1984) that they serve the same purpose as the no-fault benefits, and were provided or are required to be provided as a result of the same accident.
On appeal from the circuit court order of summary disposition in favor of Auto Owners, the Court of Appeals vacated and remanded for further proceedings. The Jarosz, supra, decision requires a "particularized assessment of the questioned governmental benefit" to identify the ultimate beneficiary, the nature of the benefits, the reason for paying them, and the events triggering entitlement to them. A review of the record in this case revealed that the circuit court did not engage in such a "particularized assessment of the questioned governmental benefits." Accordingly, the circuit court order was vacated and the case was remanded for further proceedings.