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Kellum v DAIIE; (WCC-UNP, 8/28/1978; RB #116)

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Wayne County Circuit Court; Docket No. 77-706-300-AV; Unpublished   
Judge George T. Martin; Written Opinion   
Official Michigan Reporter Citation: Not Applicable; Link to Opinion alt   


STATUTORY INDEXING:
Work Loss Benefits: Nature of the Benefit [§3107(1)(b)]
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]
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 appealing a decision of the Common Pleas Court, Wayne County Circuit Judge George T. Martin held that an insured plaintiff was entitled to recover wage loss benefits pursuant to §3107(b) of the no-fault act for as long a time as he remained injured and unable to return to work in spite of the fact that subsequent to his injury and during his disability plaintiff’s fellow employees went on a strike which lasted for nine weeks.
In so concluding, Judge Martin held that §3107(b) must be interpreted to require the establishment of an injury which precludes employment, the establishment of either the amount of income that the injured person was earning at the time of the injury, or based upon the newly added §3107a, the rate of earning for the last month worked prior to the injury. Once established, these elements justify payment until such time as the injury is no longer disabling.

The Court rejected the contention that periods of time subsequent to the injury during which the claimant would not have been able to earn income should be deducted from benefits payable to the claimant. Judge Martin reasoned that such a construction was necessary to avoid the chaotic situation where insurance companies would be arguing that claimants would not have been able to work because of subsequent illnesses, machinery breakdowns, temporary layoffs, business failures, pending demotions, etc.

Judge Martin also ruled that where no-fault benefits are overdue, the 12 percent statutory interest provided in §3142 of the act is due and owing. The only condition necessary to award that statutory interest is the nonpayment of benefits 30 days after reasonable proof of the fact and amount of loss has been provided.

Finally, Judge Martin remanded the case back to the Common Pleas Court for fact finding as to whether the nonpayment of benefits was unreasonable. If so, actual attorney fees would be due and owing pursuant to 53148.


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