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Grau v DAIIE, et at.; (KCC-UNP, 9/5/1984; RB #772)

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Kent County Circuit Court; Docket No. 8340266-CK; Unpublished  
Judge Robert A. Benson; Written Opinion  
Official Michigan Reporter Citation:  Not Applicable; Link to Opinion alt    


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

TOPICAL INDEXING:
Social Security Disability and Death Benefits    


CASE SUMMARY:  
This written Opinion by Judge Robert Benson of the Kent County Circuit Court dealt with the setoff of social security disability benefits from uncoordinated no-fault wage benefits where such social security benefits are also being setoff against other collateral wage loss disability benefits received by plaintiff. The plaintiff in this case was a teacher for the Grand Rapids Public School System. She was injured in an automobile accident on her way to supervise a school concert Defendant DAIIE paid no-fault wage-loss benefits pursuant to an uncoordinated no-fault policy. Plaintiff’s employer, the Grand Rapids Board of Education, paid disability benefits under a collective bargaining agreement for the same period. Both contracts provided for a setoff of any social security benefits received by plaintiff. The plaintiff subsequently received an award of social security disability benefits in the amount of $5,499.15, after attorney fees, for a closed period. Defendant DAIIE and the school board both attempted to offset the social security award from their respective benefits. Therefore, plaintiff stood to loose $10,998.30 in total benefits by recovering $5,499.15 in social security benefits.

Judge Benson refused to allow the double offset He based his decision on the case of Farm Bureau Insurance v Horace Mann Insurance, 131 Mich App 98 (1983) and Federal Kemper v Health Insurance Administration (item number 738). Pursuant to those decisions, Judge Benson held that each defendant was entitled to one-half of the social security offset.


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