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Miller v Allstate Insurance Company and PT Works, Inc.; (COA-PUB, 9/19/2006, RB #2785)

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Michigan Court of Appeals; Docket No. 259992; Published
Judges Jansen, Murphy, and Fort Hood; unanimous
Official Michigan Reporter Citation: 272 Mich. App. 284, Link to Opinion courthouse graphic


STATUTORY INDEXING:
Lawfully Rendered Treatment [3157]

TOPICAL INDEXING:

Not applicable


CASE SUMMARY:
In this unanimous published opinion by Judge Murphy, the Court of Appeals held that even though a chiropractic service provider may have been improperly incorporated, it was entitled to payment for treatment one of its licensed therapists lawfully provided to defendant insurance company’s insured. The only issue in this case is whether PT Works is entitled to payment for chiropractic treatment one of its therapist’s rendered to defendant’s insured. Defendant argued that because PT Works was incorporated under the Business Corporation Act rather the Professional Service Corporation Act, the chiropractic treatment was not lawfully rendered. Because the treatment was not lawfully rendered, defendant could not be charged for the services under MCL 500.3157.

The Court of Appeals affirmed summary disposition for PT Works. In so ruling, the court noted that under §3157, “only treatment lawfully rendered, including being in compliance with licensing requirements, is subject to payment as a no-fault benefit.” According to the court, §3157 only requires that the actual treatment be lawfully rendered; the statute does not focus on the underlying treater’s corporate structure. In this regard, the court stated:

Assuming, without deciding, that PT Works was improperly incorporated and that its shareholders must be licensed physical therapists, the no-fault act, and particularly MCL 500.3157, does not bar recovery of benefits for services rendered, where the treatment itself was lawfully rendered by licensed physical therapists. MCL 500.3157, by its plain and unambiguous language, requires that the treatment itself be lawfully rendered. Reference to the terms ‘rendering’ and ‘treatment’ clearly places the focus on the act of actually engaging in the performance of services, here conducting physical therapy sessions, rather than on some underlying corporate formation issues that have nothing to do with the rendering of treatment. A clinic or institution is lawfully rendering treatment when licensed employees are caring for and providing services and treatment to patients despite the possible existence of corporate defects irrelevant to treatment.”
(emphasis in original)


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