Michigan Court of Appeals; Docket No. 55749; Published
Judges Holbrook, Gillis, and Hoehn; Unanimous; Per Curiam
Official Michigan Reporter Citation: 123 Mich App 454; Link to Opinion 
STATUTORY INDEXING:
One-Year Notice Rule Limitation [§3145(1)]
One-Year Back Rule Limitation [§3145(1)]
Tolling of Limitations Upon Submission of Claim [§3145]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
This unanimous per curiam Opinion adopted the interpretation of Allstate v Frankenmuth (item number 464) regarding the time permitted under §3145(1) within which to bring a lawsuit for first party benefits. The Court held that if written notice of the accident has been properly given within one year, then a lawsuit may be commenced at any time within one year of the most recent allowable expense incurred, regardless of how long that may be after the accident date. However, that lawsuit can only recover for those expenses incurred within one year prior to the commencement of the suit In so holding, the Court reversed the trial court's interpretation of this section which relied on Dozier v State Farm (item number 268). In Dozier, the Court stated that §3145 is a one year statute of limitations which can be extended for up to one additional year by giving. In rejecting this interpretation, the panel noted, "This interpretation finds no support in the statute and has been rejected by recent panels of this Court."
The Court then went on to determine whether or not the "one year back rule" set forth in §3145(1) is tolled during that period of time the no-fault insurer is considering whether or not to pay the claim. Such had been the holding in the case of Richards v American Fellowship (item number 101) and a few other decisions. However, this panel rejected the Richards tolling rule in favor of a "literal reading of §3145(1)" as have other recent Court of Appeals decisions. Therefore, if an action is not filed within one year after a particular expense has been incurred, payment of that expense cannot be enforced, regardless of how long the insurance company was considering the claim.
