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MI Insurance Law - Appeal of UM Health System to the MI Supreme Court

Every day as a Detroit personal injury lawyer, represented are clients who have sustained severe personal injury in car accidents. Each motorist is required under Michigan State Law to have no-fault insurance, which covers them in the event of an auto collision. However, if an individual does not have no-fault insurance coverage, they could be left to bear the burden of all medical expenses and property damage. These are just the circumstances of a recent case being debated by the Michigan Supreme Court regarding the medical care of a single-car accident victim who did not carry Michigan no-fault auto insurance at the time of the incident.

Michigan resident Nicholas Morgan was a passenger in a vehicle involved in a single-car auto accident, where he sustained severe personal injury. Immediately following the incident, emergency medical services rushed Morgan to the University of Michigan Hospital for medical attention. Through the Assigned Claims Facility, Morgan filed an application to receive no-fault insurance benefits almost a year after after theMichigan car accident. Titan Insurance Company was assigned to Morgan, to service his insurance claims–however, this was not done until after a year past his hospital discharge.

Immediately, the University of Michigan Health System filed a lawsuit against Titan Insurance Company, looking for reimbursement for Morgan’s previous medical treatment, amounting to $69,957.19. The insurance company responded by filing a motion to dismiss the claim, as it is prohibited under the statutory one-year-back provision, as decided by the Michigan Supreme Court in 2006. Under this rule, recovery of any no-fault personal injury benefits is limited to claims which are submitted within one year from the date of service. However, the Michigan legal counsel for UofM answered by citing the statue that provides that “the state and its political subdivisions are exempt from statutes of limitations when seeking to recover costs expended for maintenance, care, and treatment of persons in state institutions.”

Both the Washtenaw County Circuit Court and the Michigan Court of Appeals agreed with Titan Insurance Company, maintaining that they were bound by the 2006 Supreme Court decision. However, the minority voiced opinions that the 2006 case was wrongly decided and should not affect the outcome of this decision. Now, the Michigan Supreme Court is faced with deciding not only if the 2006 case was correctly decided, but also if the University of Michigan can recover medical costs even though it has been over a year.

Being injured in a car accident is a scary and difficult process for anyone to go through. As these incidents can result in life-changing personal injury, it is certain that an injured individual will have several questions on a variety of topics, including medical care and insurance issues. For answers, as well as the best legal advice and legal representation, it is vital to contact a hard-working Detroit personal injury attorney. Doing so immediately can help ensure the most successful outcome for your personal injury claim.