Michigan Court of Appeals; Docket No. 77-1273; Published
Judges Riley, T. M. Burns, and Cynar; Unanimous
Official Michigan Reporter Citation: 83 Mich App 159; Link to Opinion 
STATUTORY INDEXING:
Workers Comp Liens Regarding Auto Tort Claims [§3116]
TOPICAL INDEXING:
Workers Disability Compensation Act (MCL 418.1, et seq.)
CASE SUMMARY:
In an unanimous decision by Judge Riley, this panel of the Court of Appeals rejected the holding in Wrobel v Wayne County Road Commission (item number 56) and held that a worker's compensation carrier is not entitled to be subrogated to an insured employee's third party no-fault automobile tort claim. The Court reasoned that where an employee is injured in an accident covered by the no-fault law, the employee's right to recover tort damages is limited to noneconomic damages. The worker's compensation carrier has only paid to the injured employee economic loss benefits. The Court embraced the holding and logic of Murray v Ferris (item number 29) and held that such a reimbursement requirement violates equal protection. The scheme sets up a classification of insureds who are required to repay their comp benefits solely on the basis of the severity of their injuries. The Court held that the previous Supreme Court decision in Peikey v Elsea Realty, 394 Mich 485 (1975) did not control the disposition of this case in that Peikey was decided prior to the introduction of the no-fault law.
Judge T. M. Burns filed a separate concurring opinion wherein he stated that he had reassessed his concurrence in Wrobel, supra, and was persuaded that his concurrence in that case was incorrect. Accordingly, he joined with the majority opinion in this case.
