Michigan Court of Appeals; Docket No. 48833; Published
Judges Cavanagh, Holbrook, and Piercey; Unanimous; Per Curiam
Official Michigan Reporter Citation: 100 Mich App 685; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Extra Contractual / Mental Anguish Damages
CASE SUMMARY:
In this per curiam Opinion, the Court of Appeals, relying on the Supreme Court decision in Kewin v Massachusetts Mutual, item number 338, held that mental anguish damages or exemplary damages may not be recovered from a no -fault insurer who unreasonably or wrongfully delayed payment of no-fault benefits. The Court held that the Kewin decision is applicable to insurance contracts under the No-Fault Act. As such, the general rule of Hadley v Baxendale, was equally applicable; "Only damages that arise naturally from the breach of contract or were within the contemplation of the parties at the time the contract was made are recoverable in commercial contract situations. Generally, damages for mental distress are not recoverable in breach of contract actions."
[Author's Comment: Two comments are in order with regard to this opinion; (1) there is no indication in the opinion that the plaintiff plead any theories of tort liability. It appears that the plaintiff only plead breach of contract. (2) Although the defendant argued that the interest and attorney fee provisions of the No-Fault Act (§3142 and §3148) constitute a plaintiff’s "exclusive remedy," the Court of Appeals did not base its decision on this exclusive remedy theory. Rather, the basis of the opinion appears to be the general contract principals as stated by, the Supreme Court in Kewin.]
