Muskegon County Circuit Court; Docket No. 85-19768-CR; Unpublished
Judge Michael Kobza; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Work Loss Benefits: Nature of the Benefit [§3107(1)(b)]
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]
Wage Loss for Temporarily Unemployed Persons / Qualifications [§3107a]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
This written Opinion by Judge Kobza deals with the issue of whether a no-fault insured's right to wage loss benefits ends when the place at which the insured used to work goes bankrupt The defendant, relying on MacDonald v State Farm (Item No. 798), argued that, because the plaintiff could not show that he "would have performed" any work after the date his former employer went bankrupt, the insured was not entitled to benefits under §3107(b). Plaintiff conceded that the insured was not entitled to benefits under §3107(b), but argued that benefits were payable under §3107a, which entitles a "temporarily unemployed" worker to no-fault benefits. Although §3107a is more commonly applied to situations in which the insured is unemployed at the time of the automobile accident, plaintiff argued that §3107a also applies where the insured was employed at the time of the automobile accident but later became unemployed due to strikes, plant closings and the like.
Judge Kobza agreed with plaintiff and granted plaintiff’s motion for summary disposition. He distinguished MacDonald and followed the circuit court cases of Gregory Johnson v Allstate (Item No. 424) and Kellum v DAIIE (Item No. 116). Judge Kobza held that as long as the insured remains disabled, he is entitled to no-fault benefits even though the job he had at the time of the injury is no longer available.
