Michigan Court of Appeals; Docket No. 56566; Published
Judges Allen, Bronson, and Wahis; Unanimous
Official Michigan Reporter Citation: 127 Mich App 324; Link to Opinion 
STATUTORY INDEXING:
Liability for Excess Economic Loss Caused by Insured Tortfeasors [§3135(3)(b)]
Liability of Non-Motorist Defendants [§3135]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous Opinion by Judge Bronson, the Court of Appeals considered several issues on appeal from a jury verdict in favor of plaintiff against the Department of Highways. One of those issues concerned whether the trial court erred in reducing plaintiff’s award for lost future earnings by the amount representing income taxes which might have to be paid on those earnings. The lower court apparently ruled that the no-fault statutory provision of §3135(2)(c) authorized such a reduction.
In reversing the trial court, the Court of Appeals stated that §3135(2)(c) does not apply to authorize deduction of prospective taxes in a case against the State Highway Department, because this section applied only to actions arising from the negligent ownership, maintenance or loss of a motor vehicle. This action arose out of the negligent maintenance of a highway, the no-fault statutory provision for a reduction of excess work loss damages by the amount of taxes that would have been payable was not applicable to this case.
