Michigan Court of Appeals; Docket No. 78-136; Published
Judges R. B. Burns, Holbrook, and Bashara; Unanimous
Official Michigan Reporter Citation: 90 Mich App 251; Link to Opinion
STATUTORY INDEXING:
Replacement Service Expense Benefits: Nature of the Benefit [§3107(1)(c)]
Wage Loss for Temporarily Unemployed Persons / Qualifications [§3107a]
Reasonable Proof Standard [§3142(1)]
Requirement That Benefits Were Overdue [§3148(1)]
TOPICAL INDEXING:
Legislative Purpose and Intent
CASE SUMMARY:
In an unanimous Opinion by Judge R. B. Burns, the Court of Appeals held that replacement service expenses under §3107(b) of the statute are not properly recoverable for expenditures which are associated with the generation of income. Those kinds of losses are part of work loss benefits and not replacement service benefits. Accordingly, where the plaintiff was a self-employed grocer, and plaintiff had to hire someone to assist him in running the store, that expense was income associated and was not properly a part of replacement service benefits.
In addition, the Court held that even though a plaintiff is "temporarily unemployed" and thus entitled to utilize the provisions of §3107a, the plaintiff may still request that the trier of fact consider what plaintiff would have earned after the temporary unemployment would have ended. Thus, if the trier of fact would have found that plaintiff would have returned to work when called back after a layoff, the jury could consider any increases in wages and overtime that plaintiff would have received but for the injuries. The Court held that §3107a merely provides for work loss benefits during unemployment and does not purport to limit benefits after temporary unemployment would have ended.
Finally, the Court suggested that where the plaintiff does not provide reasonable proof of the fact and the amount of the loss then interest and attorney fees are not properly recoverable under §3142 and §3148 of the statute.