Wayne County Circuit Court; Unpublished
Judge Sharon Tevis Finch; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]
TOPICAL INDEXING:
Extra Contractual / Mental Anguish Damages
CASE SUMMARY:
In a lawsuit seeking recovery of no-fault first party benefits, Judge Finch did not permit a jury instruction concerning exemplary or punitive damages. However, relying upon Kewin v Massachusetts Mutual, 79 Mich App 639 (1977), Judge Finch did instruct the jury that damages for mental anguish could be awarded.
The plaintiff in this case had sustained injuries to his back and head in an automobile accident. Subsequently, the plaintiff began treating with a psychiatrist and by the time of trial had received psychiatric treatments on more than 80 occasions. The claims adjuster for the first party carrier testified that the plaintiff’s no-fault benefits were terminated based upon the adjuster's belief that a psychiatric disability could not be related to an automobile accident. The plaintiff’s psychiatrist testified to the contrary and the no-fault carrier had no medical information or evidence which would dispute the psychiatrist's opinion. As a result of the termination of benefits, plaintiff was placed in financial distress and had to rely upon loans and assistance from family members.
Included in the jury's verdict was an award of $20,000 for mental anguish. Judge Finch allowed interest at the rate of 12 percent per annum on the overdue no-fault benefits and also awarded an attorney fee consisting of approximately 20 percent of the jury verdict.
