Michigan Court of Appeals; Docket No. 52273; Published
Judges Gillis, Bashara, and Sanborn; Per Curiam
Official Michigan Reporter Citation: 114 Mich App 53; Link to Opinion 
STATUTORY INDEXING:
12% Interest Penalty on Overdue Benefits – Nature And Scope [§3142(2), (3)]
Interest Penalty Additive to Judgment Interest [§3142]
Requirement That Benefits Were Unreasonably Delayed or Denied [§3148(1)]
Bona Fide Factual Uncertainty / Statutory Construction Defense [§3148]
TOPICAL INDEXING:
Civil Judgments and Interest (MCL 600.6013)
CASE SUMMARY:
In this per curiam Opinion, the Court of Appeals held that a successful PIP claimant may seek 12 percent interest under §3142 of the No-Fault Statute, as well as traditional RJA interest. However, the court stated that the 12 percent no-fault interest "is a penalty rather than interest," and as such, plaintiff must prove the defendant "unreasonably failed to pay the benefits." The court stated: "The same standard of reasonableness shall be used in determining whether plaintiff is entitled to the additional 12 percent interest and attorney fees.
The court noted that attorney fees are not recoverable where: "A refusal to pay benefits is based upon a legitimate question of statutory construction, constitutional law or a bona fide factual uncertainty." The court also stated that an evidentiary hearing must be held on the question of attorney fees to determine the amount of fees based upon the criteria set forth in Liddell v DAIIE (Item No. 377). The court remanded the case back to the trial court for the appropriate evidentiary hearing on the issues involved.
