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Featherly v AAA Insurance Company; (COA-PUB, 4/19/1982; RB #519)

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Michigan Court of Appeals; Docket No. 58774; Published  
Judges Kaufman, Brennan, and Tahvonen; Per Curiam  
Official Michigan Reporter Citation: 119 Mich App 132; Link to Opinion alt   


STATUTORY INDEXING:  
Work Loss Benefits: Calculation of Benefits [§3107(1)(b)]  
Standards for Deductibility of State And Federal Governmental Benefits [§3109(1)]  
State Workers Compensation Benefits [§3109(1)]

TOPICAL INDEXING:
Workers Disability Compensation Act (MCL 418.1, et seq.)   


CASE SUMMARY:  
In this per curiam Opinion, the Court dealt with the issue of calculating wage loss benefits when a government benefits subtraction is involved. The Court held that the 15 percent tax adjustment required by §3107(b) applies to pre-accident earnings but that a setoff of workers' compensation benefits under §3109(1) is to be deducted from the net benefits as limited by the monthly statutory maximum. Thus, where the plaintiff’s income was well in excess of the statutory maximum, the trial court erred in concluding that workers' compensation benefits received by plaintiff were to be setoff against the actual loss income less the 15 percent tax adjustment as opposed to setting off the workers' comp against the then existing maximum monthly benefits of $1,475. This conclusion is consistent with the reasoning employed by the Court of Appeals in Zmudczynski v League General (item number 341) dealing with calculation of benefits under a voluntary coordinated benefits provision.

[Author's Comment: This reverses item number 411.]


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