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Swartout v State Farm Mutual Automobile Insurance Company; (COA-PUB, 11/18/1986; RB #965)

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Michigan Court of Appeals; Docket No. 86547; Published  
Judges T. M. Burns, Gillis, and Kelly; Unanimous; Per Curiam  
Official Michigan Reporter Citation: 156 Mich App 350; Link to Opinion alt    


STATUTORY INDEXING:  
Work Loss Benefits: Nature of the Benefit [§3107(1)(b)]  
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]  
Work Loss Benefits: Loss of Earning Capacity [§3107(1)(b)]

TOPICAL INDEXING:
Not Applicable    


CASE SUMMARY:  
In this 2-1 Opinion by Judge Kelly, the Court of Appeals held that a student nurse who was injured in an automobile accident approximately two months before her graduation and, as a result of those injuries, was not able to obtain her degree until the following June, and thus not able to obtain a job until receiving her degree, had alleged sufficient facts entitling her to jury determination of her claim for no-fault wage loss benefits under §3107(b). Plaintiff did go on to receive her degree one year after she was scheduled to graduate and then obtained employment with a local hospital. When defendant filed its motion for summary disposition, plaintiff countered with an affidavit from her employer stating that she would have been employed by the hospital no later than July 27,1981, had she received her nursing degree by that time. The rate of pay to which plaintiff would have been entitled was also specified in the affidavit

The Court of Appeals held that plaintiff’s complaint stated more than a cause of action for loss of earning capacity. Rather, plaintiff had stated a cause of action for loss of actual income. Therefore, based upon the decisions in Gerardi v Buckeye Union (Item No. 176) and Gobler v Auto-Owners (Item No. 809), plaintiff should have survived defendant's motion for summary disposition. Accordingly, the trial court's decision was reversed.

Judge Gillis filed a dissenting opinion. He would find that plaintiff’s claim was one for loss of earning capacity as opposed to lost wages. In addition, Judge Gillis would not award plaintiff no-fault benefits for any longer than the actual period of her physical disability (i.e., two months) rather than for the one year delay in starting her new job.


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