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Ruffin and William Beaumont Hospital v Auto Club Insurance Association (COA-UNP, 11/18/2010, RB #3148)

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Michigan Court of Appeals; Docket #292687; Unpublished
Judges O’Connell, Bandstra, and Murray; unanimous; per curiam
Official Michigan Reporter Citation: Not applicable, Link to Opinion alt
On 1/31/2012, the Michigan Supreme Court DENIED Leave to Appeal; Link to Order alt


STATUTORY INDEXING: 
Not applicable

TOPICAL INDEXING:  
Attorney Fee Liens


CASE SUMMARY: 
In this unanimous unpublished per curiam opinion, the Court of Appeals reversed the trial court’s award of attorney fees to plaintiff’s counsel that was to be paid out of PIP benefits payable for medical expenses incurred by plaintiff at Beaumont Hospital.  The trial court awarded plaintiff’s counsel a fee of $15,600, representing 52 hours of service at $300 per hour, which the court ordered should be paid from PIP benefits paid to the hospital. 

In reversing the trial court, the court distinguished this case from the recent published decision in Miller v Citizens Ins Co, and held that “equitable principles weigh against the attorney fee award.”  The court noted that much of the work done in getting the hospital bill paid was not performed by plaintiff’s attorney, but rather by a financial advocate who was jointly assisting Beaumont Hospital and the plaintiff.  Moreover, payment of the bills was actually approved about the time the lawsuit was filed, leaving little, if anything, to be resolved by the suit.  In addition, Beaumont Hospital had written to plaintiff’s counsel and informed him that the hospital did not require his services and would not pay his fee.  The court also diminished the significance of the litigation filed by plaintiff’s counsel, which it characterized as follows:  “The bulk of the litigation concerned counsel’s claim for fees, and the claim against defendant was ultimately dismissed.  Under these circumstances, the trial court abused its discretion in awarding an attorney fee chargeable against the medical expenses paid.”

In an Order dated 6/28/2011 the Michigan Supreme Court ordered that this case be held in abeyance pending the decision of the Supreme Court in the case of Miller v. Detroit Medical Center (RB#3128) which is pending on appeal before the Supreme Court.  Link to Order alt


Michigan auto accident attorney Stephen Sinas is the lead editor of the appellate case summaries published on this site regarding the Michigan auto insurance law. To learn more about how Stephen Sinas and how the Sinas Dramis Law Firm can help you if you have been injured in a Michigan auto accident, visit SinasDramis.com.

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