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Johnston v DAIIE; (COA-PUB, 1/25/1983; RB #612)

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Michigan Court of Appeals; Docket No. 58511; Published  
Judges Kelly, Cynar, and Cook; Unanimous; Per Curiam  
Official Michigan Reporter Citation: 124 Mich App 212; Link to Opinion alt    


STATUTORY INDEXING:  
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]  
Interest Penalty Additive to Judgment Interest [§3142]

TOPICAL INDEXING:
Civil Judgments and Interest (MCL 600.6013)   


CASE SUMMARY:  
Pursuant to the Supreme Court's opinion in Wood v DAIIE (item number 535), this panel of the Court of Appeals unanimously held that a plaintiff who recovered a judgment for overdue no-fault benefits was entitled to interest under §3142 of the no-fault statute as well as interest under the RJA. In addition, the Court held that plaintiff was entitled to interest at the rate of 12 percent per annum on his award of costs and attorney fees, said interest to run from the entry of judgment until the judgment is satisfied. Because the judgment in this case did not provide for this additional interest, it was amended.

In addition, the Court held that it was no defense to a claim for interest that the insurer "reasonably" denied the claim on the basis of prior appellate case law. The Court held that interest under the no-fault statute is not dependent upon reasonable or unreasonable conduct. This conclusion is squarely in conformity with the previous opinions in Cook v DAIIE - Amended Opinion (item number 501) and Nash v DAIIE (item number 580).


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