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Moore v Auto-Club Insurance Association; (COA-PUB, 9/12/1988; RB #1179)

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Michigan Court of Appeals; Docket No. 99241; Published    
Judges Holbrook, MacKenzie, and Baguley; Unanimous; Per Curiam    
Official Michigan Reporter Citation:  173 Mich App 308; Link to Opinion alt   


STATUTORY INDEXING:  
Standards for Deductibility of State and Federal Governmental Benefits [§3109(1)]  
Other Benefits [§3109(1)]

TOPICAL INDEXING:
Not Applicable    


CASE SUMMARY:  
In this unanimous per curiam Opinion, the Court of Appeals ruled that a no-fault insurance company may properly setoff wage loss benefits received by plaintiff under the "Railroad Unemployment Insurance Act (45 USC §351-368)." The Court held that benefits payable under this federal statute are "governmental benefits" that may properly be setoff under §3109(1). These federal benefits meet the two-part test set forth in Jarosz v DAIIE (Item No. 702) in that they (1) serve the same purpose as no-fault benefits, and (2) are provided as a result of the same accident In characterizing these benefits as falling within the Jarosz test, the Court stated "plaintiff’s federal railroad unemployment insurance benefits were computed as a percentage of his gross earnings pursuant to 45 USC §352(a) and were clearly for the purpose of replacing wages lost during the period of disability.... The second prong of the test is also satisfied by the fact that both the no-fault and federal railroad retirement disability benefits were payable as a result of disability from injuries sustained in the automobile accident."

 


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