Michigan Court of Appeals; Docket No. 58924; Published
Judges Walsh, Cynar, and Hood; Unanimous
Official Michigan Reporter Citation: 117 Mich App 67; Link to Opinion 
STATUTORY INDEXING:
Requirement that Benefits Were Unreasonably Delayed or Denied [§3148(1)]
Presumption of Unreasonableness [§3148]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous Opinion by Judge Cynar, the Court of Appeals issued one of its most significant holdings regarding the recovery of attorney fees under §3148 of the statute. Essentially, the Court adopted a new test which provides that where benefits are not paid within the statutory 30 day period, a rebuttable presumption of unreasonable refusal or delay arises. The burden then shifts to the insurer to explain and justify the refusal or delay. Furthermore, it is not adequate grounds to award attorney fees simply because the recalcitrant insurance company makes payments prior to being instructed to do so by a court. In enunciating this new test, the Court of Appeals stated:
"Section 3142 provides that personal protection benefits are overdue if not paid within 30 days after an insurer receives reasonable proof of the fact and the amount of the loss sustained.
Where benefits are not paid within the statutory period, we think a rebuttable presumption of unreasonable refusal or delay arises. It is then the burden of the insurer to explain and justify the refusal or delay. It then becomes the trial court's duty to determine if the refusal or delay is unreasonable. This procedure follows logically from the language of the statutory provisions in question."
