Johnson v. Recca
492 Mich. 169
| Mich. | 2012Background
- Plaintiff was struck by defendant's vehicle in July 2004 and pursued third-party tort damages for replacement services under MCL 500.3135(3)(c).
- Plaintiff lived with ex-mother-in-law (Johnson) and neither party had a vehicle or insurance at the time.
- Trial court granted summary disposition for defendant; Court of Appeals reversed to allow replacement services under 500.3135(3)(c).
- Supreme Court granted leave to decide if 500.3135(3)(c) includes replacement services incurred more than three years after the accident.
- Statutory question centers on whether replacement services are recoverable as part of PIP benefits in a third-party action under the no-fault act.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are replacement services recoverable under 500.3135(3)(c)? | Johnson argues replacement services fall within 500.3135(3)(c) as allowable expenses. | Markman majority argues replacement services are not listed in 500.3135(3)(c) and thus not recoverable. | No; replacement services are not recoverable under 500.3135(3)(c). |
| Are replacement services a subcategory of allowable expenses? | Johnson asserts replacement services are a separate category from allowable expenses. | Responds that replacement services are subsumed under allowable expenses per Griffith interpretation. | They are separate and distinct categories; not a subcategory of allowable expenses. |
| Does Griffith v State Farm bind the interpretation of replacement services? | Argues Griffith supports including replacement services as care-related allowable expenses. | Griffith does not place replacement services within allowable expenses; care must relate to injuries. | Griffith does not make replacement services an allowable expense; they are separate from allowable expenses. |
| Is the majority’s approach consistent with the no-fault scheme or appropriate policy considerations (absurd-results doctrine)? | Argues the majority misapplies statutory structure and creates absurd results. | Argues majority adheres to text and legislative organization. | The court rejects the “absurd results” approach for interpreting the statute. |
Key Cases Cited
- USF&G v Mich Catastrophic Claims Ass’n, 484 Mich 1 (2009) (enforces clear, unambiguous statutory provisions; statutory interpretation guided by plain meaning)
- Griffith v State Farm Mut Auto Ins Co, 472 Mich 521 (2005) (clarifies care vs. allowable expenses; replacement services not within ‘care’)
- Swantek v Auto Club of Mich Ins Group, 118 Mich App 807 (1982) (historical basis for excess ordinary and necessary services recoverability)
- Kreiner v Fischer, 471 Mich 109 (2004) (noting discussion of replacement services in tort; later overruled in part)
- Cameron v Auto Club Ins Ass’n, 476 Mich 55 (2006) (absurd results doctrine discussions; dissent cited on policy)
