18th Judicial District Court; Docket No. DC-8601; Unpublished
Judge Thomas G. Smith; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]
Requirement That Benefits Were Unreasonably Delayed or Denied [§3148(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In a written Opinion which followed a jury verdict in favor of plaintiff for PIP benefits, Judge Smith ruled that where a PIP carrier had cut off plaintiff’s wage loss benefits on the basis of an adjuster's conversation with plaintiff’s father which indicated that plaintiff would have returned to school in the fall, the insurance company's actions were "unreasonable" and thus they are liable for plaintiff’s attorney fees under §3148 of the no-fault act The Court ruled that the inquiry of the insurance company in this case was insufficient to warrant their discontinuation of benefits.
The Court awarded attorney fees in the approximate amount of one third of the plaintiff’s verdict. The Court also awarded the statutory 12 percent interest pursuant to §3142 of the no-fault statute and ruled that the insurance company cannot avoid paying the statutory interest on the basis of an "honest controversy."
