Michigan Court of Appeals; Docket No. 29314; Published
Judges Beasley, V. J. Brennan, and J. R. McDonald; Unanimous
Official Michigan Reporter Citation: 77 Mich App 565; Link to Opinion 
STATUTORY INDEXING:
Social Security Disability Benefits [§3109(1)]
General / Miscellaneous [§3109]
TOPICAL INDEXING:
Legislative Purpose and Intent
CASE SUMMARY:
In the second reported decision on the subject, the Michigan Court of Appeals affirmed its prior decision in O'Donnell v State Farm, 70 Mich App 478 (1976) and held that §3109(1) of the No-Fault Statute permitting a deduction from no-fault benefits of amounts equal to social security benefits received by plaintiff was unconstitutional as violative of equal protection. The court further held that such a deduction was not rendered valid under the theory that it was part of a private contract of insurance between plaintiff and the no-fault carrier. The court held that inasmuch as the contract provision was nearly identical to the statutory language and that it was based on language approved by the insurance commissioner, the contract provision is void as a matter of public policy.
