Wayne County Circuit Court; Docket No. 78-807-043-NI; Unpublished
Judge James Montante
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)]
Conduct Establishing Unreasonable Delay or Denial [§3148]
Calculating Attorney Fees Based on Contingent Fee [§3148]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
Pursuant to a Motion for Partial Summary Judgment, Wayne County Circuit Court Judge James Montante held that under §3142 of the no-fault act where no-fault benefits are found to. be overdue, the no-fault insurer must pay the statutory 12 percent interest without regard to whether or not the insurer acted reasonably or unreasonably or in good faith or in bad faith.
In addition, the Court held that under §3148 of the act where a no-fault insurer discontinued paying no-fault benefits five months after receiving a report from plaintiff’s doctor that stated plaintiff would be disabled for at least three months and permanently disabled from heavy work, the action of the insurance company in this regard was unreasonable without some further investigation by the carrier of the plaintiff’s condition and his disability status. As such, the action of the insurance company entitled the plaintiff to recover his actual attorney fees, which in this case amounted to honoring a one-third contingency fee contract between plaintiff and his attorney.
