Michigan Court of Appeals; Docket No.100264; Published
Judges McDonald, Holbrook, and Thomas; Unanimous; Per Curiam
Official Michigan Reporter Citation: 173 Mich App 37; Link to Opinion
STATUTORY INDEXING:
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
This unanimous per curiam Opinion interprets the wage loss provisions of §3107(b) with respect to those individuals who earned income during a portion of a 30 day disability period. The Court rejected the method of calculation utilized by the Auto-Club which would have reduced a claimant's wage loss benefits by any amounts earned during a 30 day disability period. The Court held that it is only income earned during the actual period of disability that can offset wage loss benefits payable for that specific period. In this regard, the Court held:
"We agree with the plaintiff and find that defendant has misinterpreted §3107(b). We do not believe the Legislature intended work loss benefits to be offset with income made outside the period for which work loss benefits are being received. The plain language of the statute supports this interpretation. This section speaks to a sustained' work loss period, within a 30 day period. The earned income to be offset must be of this 'same period.' Thus, we believe the income subject to offset must be earned within the sustained work loss period, whether this 30 days or any lesser period. The last phrase of this section indicates that the Legislature was not concerned with a calculated maximum based solely on 30 days, but used the 30 day period as a mere framework to be adjusted pro-rata for lesser periods of work loss and earned income. We believe the 30 day period included in this statute merely serves as a reference point to assess the maximum benefit. This period is not absolute and is to be adjusted according to the actual work loss period."