37th Judicial District Court; Docket No. 78-2026CK; Unpublished
Judge George E. Montgomery; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Replacement Service Expense Benefits: Nature of the Benefit [§3107(1)(c)]
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]
Requirement That Benefits Were Unreasonably Delayed or Denied [§3148(1)]
Conduct Establishing Unreasonable Delay or Denial [§3148]
Calculating Attorney Fees Not Based on Contingent Fee [§3148]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In a written Opinion following a bench trial, Judge Montgomery awarded replacement service benefits pursuant to §3107(b) of the statute for services that were performed by family members of an unmarried injured plaintiff who took up the plaintiff’s household functions while he was hospitalized for auto accident injuries. In addition, Judge Montgomery awarded replacement service expenses for services rendered by those other family members who took care of the plaintiff after he was discharged from the hospital and confined to his home for convalescence. During the time that the injured plaintiff was hospitalized, these other family members had to do his household tasks such as laundry, lawn care, household functions, etc. After he came home, these relatives had to not only continue those tasks, but also assisted in taking care of the injured plaintiff. Judge Montgomery awarded post discharge replacement service expenses until the date the plaintiff returned to work.
Judge Montgomery also held that the defendant's insurance company acted "unreasonably" in its handling of this claim. Family members of the plaintiff had filed a requisite notice will within the first year of the accident. The claims adjuster did not act on their application for benefits and "in effect denied this claim without giving any reasons for this denial." The Court found that that action was "unreasonable and in bad faith." This was so because the defendant knew that by withholding the reason for denial, the plaintiff would be unable to perfect his claim.
As a result of the unreasonable conduct of the insurer, Judge Montgomery ruled that reasonable attorney fees were recoverable under §3148 of the Act. The total benefits recovered in this case amounted to approximately $3,600. However, the Court found that an attorney fee based on an hourly rate of $75 per hour for 80 hours or a total of $6,000 was "reasonable for the technical work performed in this case." In addition, Judge Montgomery awarded 12 percent interest under the terms of §3142 of the Act and an additional six percent statutory interest. However, no punitive damages were recoverable in this case inasmuch as there was no testimony that the plaintiff or members of his family experienced any problems with financial obligations as a result of nonpayment of no-fault benefits.
