Michigan Court of Appeals; Docket No. 77-949; Published
Judges Cavanaugh, Maher, and N. J. Kaufman; Unanimous
Official Michigan Reporter Citation: 83 Mich App 135; Link to Opinion 
STATUTORY INDEXING:
Work Loss Benefits: Nature of the Benefit [§3107(1)(b)]
Work Loss Benefits: Mitigation Requirement [§3107(1)(b)]
TOPICAL INDEXING:
Legislative Purpose and Intent
CASE SUMMARY:
In a decision with important implications, the Court of Appeals unanimously held that an insured is entitled to no-fault wage loss benefits under §3107(b) for work lost because of a disabling injury even though the physical disability had ended but the lost wages continued as a result of the plaintiff losing his job during the period of disability and not being able to find new employment.
In this case the plaintiff was disabled by an automobile accident in September 1974 and began receiving medical expenses and wage loss benefits from the defendant In June 1976 the plaintiff’s physician advised plaintiff and defendant that the plaintiff could resume full and normal activity. However, during the plaintiff’s disability his employer had hired another to fill his job and plaintiff could find no other work. The court stated, ". . . The legislature had the workers' compensation act before it, and, had it chosen to do so, could easily have adopted that act's limitation of benefits to the period of disability. The legislature chose not to so limit its act, and instead created a statute which requires no more than that the work be lost as a direct consequence of the injury."
In its holding, the Court ruled that the Michigan common law rule of damages recognizes that loss of earning capacity is a separate category from actual lost earnings and that under the common law rule a plaintiff is not precluded from recovering damages for wages lost after termination of the disability but 0 where the consequences of the disability continue. In any event, the Court ruled that whatever the common law rule of damages may be, work loss as defined by §3107(b) is not equated with loss of earning capacity.
