Michigan Court of Appeals; Docket Nos. 69520, 70751; Published
Judges Cynar, Weaver, and Pajtas; Unanimous; Per Curiam
Official Michigan Reporter Citation: 138 Mich App 520; Link to Opinion
STATUTORY INDEXING:
Requirement That Benefits Were Unreasonably Delayed or Denied [§3148(1)]
Bona Fide Factual Uncertainty / Statutory Construction Defense [§3148]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals reversed a trial court order requiring that Roadway pay one-half of plaintiff s attorney fees in a claim for no-fault benefits. Plaintiff was injured while unloading one of Roadway's trailers, and made claim from Roadway, as well as from his personal no-fault insurance carrier, DAIIE. Roadway refused to pay no-fault benefits and was granted summary disposition on the ground that the trailer was not subject to the security requirements of the No-Fault Act, and therefore, no coverage existed. The Court of Appeals reversed, holding Roadway liable instead of DAIIE, but the Michigan Supreme Court reversed that decision. Parks v DAIIE, 426 Mich 191 (1986); see Item No. 933.
On remand, the trial court entered judgment against DAIIE, but required that both DAIIE and Roadway equally share plaintiff’s attorney fees. On appeal, the Court of Appeals reversed, holding that Roadway had demonstrated a "bona fide question of statutory construction," and therefore its non-payment of benefits could not be characterized as an unreasonable refusal or unreasonable delay within the meaning of §3148(1).
Since Roadway was found not to be subject to Michigan's no-fault law, the Court of Appeals held that the trial court was without a basis for finding that plaintiff’s claim involved a priority dispute or that Roadway should have paid part or all of the benefits in accordance with the dispute resolution mechanism suggested in the case of Darnell v Auto-Owners (Item No. 831).