167772
Mich.Jul 27, 2026Background
- Canty sued Mason in tort under MCL 500.3135(3)(c) to recover medical allowable expenses after a car crash allegedly caused by Mason. 1
- Canty had waived PIP coverage under MCL 500.3107d because he had Medicare Parts A and B. 2
- Mason sought summary disposition to limit damages, arguing Canty had to mitigate by using Medicare and that MCL 500.3157 fee caps applied. 3
- The trial court denied summary disposition, but the Court of Appeals held Canty had to mitigate and that MCL 500.3157 applied. 4
- The Supreme Court affirmed the mitigation ruling but reversed on application of MCL 500.3157. 5
- Separate opinions agreed on mitigation but questioned whether Medicare or no-fault fee schedules should govern damages. 6
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does mitigation of damages apply to a Medicare-covered plaintiff's tort claim? 7 | Canty said 'without limit' bars any mitigation duty. | Mason said reasonable mitigation required seeking Medicare payment. | Mitigation applies; Canty had to seek Medicare payments. 8 |
| Do MCL 500.3157 reimbursement caps apply to MCL 500.3135(3)(c) tort damages? 9 | Canty argued they do not apply to tort damages. | Mason argued MCL 3107's prefatory language imports the caps. | MCL 500.3157 does not apply to this tort claim. 10 |
Key Cases Cited
- Buhl v Oak Park, 507 Mich 236 (Mich. 2021) (summary disposition under MCR 2.116(C)(10) is reviewed de novo 11)
- Wyandotte Electric Supply Co v Electrical Technology Sys., Inc., 499 Mich 127 (Mich. 2016) (statutory interpretation is reviewed de novo and plain meaning controls 12)
- In re Forfeiture of 2006 Saturn Ion, 514 Mich 399 (Mich. 2024) (courts avoid readings that render statutory language surplusage 13)
- Morris v Clawson Tank Co, 459 Mich 256 (Mich. 1998) (mitigation of damages is a common-law duty requiring reasonable efforts 14)
- Rasheed v Chrysler Corp., 445 Mich 109 (Mich. 1994) (defendant bears the burden on failure-to-mitigate as an affirmative defense 15)
- Janini v London Townhouses Condo Ass'n, 514 Mich 86 (Mich. 2024) (the Legislature is presumed aware of the common law when it legislates 16)
- Bazzi v Sentinel Ins Co., 502 Mich 390 (Mich. 2018) (statutes are construed in harmony with the common law absent clear abrogation 17)
- Marquis v Hartford Accident & Indemnity (After Remand), 444 Mich 638 (Mich. 1994) (mitigation applies in a no-fault work-loss context 18)
- Jostock v Mayfield Twp, 513 Mich 360 (Mich. 2024) (courts avoid constructions that render statutory text nugatory 19)
- Andary v USAA Cas. Ins. Co., 512 Mich 207 (Mich. 2023) (discusses the 2019 no-fault reforms and Medicare-related coverage issues 20)
