Ingham County Circuit Court; Docket No. 76-19669-CZ; Unpublished
Judge Jack W. Warren; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Calculation of Survivor’s Loss Benefits and Maximums [§3108(1)]
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]
Social Security Disability Benefits [§3109(1)]
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]
Bona Fide Factual Uncertainty / Statutory Construction Defense [§3148]
TOPICAL INDEXING:
Legislative Purpose and Intent
CASE SUMMARY:
In a lengthy written opinion following a nonjury trial, Judge Jack Warren held:
1. That under §3108 of the no-fault act the $20 per day substituted service expense benefits for dependents of a deceased insured is included in the monthly survivors' loss benefits and is thus subject to the maximum monthly ceiling applicable thereto. In so holding, Judge Warren specifically disagreed with the opinion of Kalamazoo County Circuit Judge Borsos on this issue in Moshier v Financial Indemnity (item number 25).
2. That §3109(1) of the no-fault statute which permits a setoff of governmental benefits against no-fault benefits, is not unconstitutional. Judge Warren noted that a split of authority exists on this issue in the Court of Appeals (O'Donnell, etc) but ruled that "until such time as the Supreme Court holds §3109 unconstitutional, this Court considers this section constitutional legislation."
3. That the $1,000 funeral expense maximum in §3107(a) can be properly reduced by Social Security burial benefits and that such social security benefits are to be subtracted from the $1,000 maximum and not from the actual funeral expense. Thus, where the deceased's burial expenses were approximately $1,700, and Social Security contributed $255, the no-fault carrier need only pay $745 in funeral benefits.
4. That under §3108 of the no-fault act, the $ 1,000 per month survivors' loss benefit applies to all dependents, regardless of number, and is not a separate limitation for each individual dependent. Also, the sum received by each dependent from social security can be deducted from the monthly no-fault survivors' loss benefits pursuant to the dictates of §3109(1).
5. That where the no-fault carrier did not make payment of no-fault benefits because of the disputes discussed above, the statutory 12 percent interest pursuant to §3143 was assessable and recoverable.
6. That attorney fees under §3148 were not recoverable inasmuch as a "difficult action of statutory interpretation is involved, and thus, the delay was not entirely unreasonable.'' In so holding, Judge Warren cited Richards v American Fellowship (item number 101).
