37th Judicial District Court; Docket No. 780172; Unpublished
Judge Sherman P. Faunce III
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Tolling of Limitations Upon Submission of Claim [§3145]
Tolling of Limitations for Estoppel [§3145]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In a lengthy written Opinion dealing with the statute of limitations contained in §3145 of the statute, Judge Faunce ruled that in spite of the Court of Appeals decision in Richards v American Fellowship (item number 101) §3145 does not require the existence of a so-called "formal denial" by the insurance company as a precondition to the running of the one year statute of limitations. Judge Faunce held that even though the Richards decision stated that the one year statute is "tolled until liability was formally denied," it was the insurer's undue delay in Richards denying its liability, not the absence of a "formal denial" that was the basis of the conclusion in that the statute had not run against the plaintiff.
Judge Faunce stated that the one year statute of limitations contained in §3145 should and has been strictly construed by our appellate courts. This is necessary to avoid litigating stale claims and in discouraging delay on the part of claimants in submitting their claim for benefits.
However, an insurer who reasonably delays in the processing of a claim should not be permitted to reap the benefits of the one year statute of limitations. Thus, the proper focus is not upon whether or not there has been a "formal denial" but whether or not the conduct of the insurance company constitutes an undue delay in the processing of the insured's claim thus estopping the insurance company from asserting the one year statute of limitations contained in §3145.
Judge Faunce ruled that there was a disputed question of fact as to this inquiry and therefore postponed a decision on defendant's motion for accelerated judgment until a factual determination by the trier of fact.
