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Auto-Owners v Biddis #2; (COA-PUB, 2/10/1983; RB #614)

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Michigan Court of Appeals; Docket No. 60257; Published  
Judges Bronson, T. M. Burns, and Allen; Unanimous; Per Curiam  
Official Michigan Reporter Citation: 123 Mich App 232; Link to Opinion alt   


STATUTORY INDEXING:  
PIP Insurer’s Right to Reimbursement for Claims Paid Arising Out of Uninsured Vehicle Injuries [§3177(1)]

TOPICAL INDEXING:
Not Applicable   


CASE SUMMARY:  
This Opinion is a continuation of the litigation summarized in Auto-Owners v Biddis (item number 427). In this second decision, the Court of Appeals held that a no-fault insurer who was assigned a no-fault claim by the Assigned Claims Facility pursuant to §3177 of the No-Fault Act, was entitled to recover reimbursement for attorney fees as part of the total recovery sought against the uninsured motorist. Section 3177 of the Act states that an insurer who is assigned a claim can recover from the owner or registrant of the uninsured vehicle "such benefits paid and appropriate loss adjustment costs incurred. . . .” The Court held that the words "loss adjustment costs" in this statute gave sufficient authorization to the trial judge to award attorney fees to the assigned insurer. The Court held that "to deny the insurer recovery of reasonable attorney fees would impose on the system costs which we believe the legislature has directed uninsured motorists to bear." Therefore, because the trial judge refused to grant attorney fees, the Court reversed and remanded "with instructions to proceed consistent with this opinion."


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