Joseph v. Auto Club Insurance Association
491 Mich. 200
| Mich. | 2012Background
- The no-fault act’s one-year-back rule limits recovery to losses incurred within one year before suit, while separate timing rules govern when an action may be brought.
- The minority/insanity tolling provision, MCL 600.5851(1), extends the time to bring an action for minors or insane individuals but does not specify limits on damages recoverable.
- Plaintiff Doreen Joseph sustained injuries in 1977 and has received over $4 million in PIP benefits; she seeks additional benefits for services dating back to 1977.
- Plaintiff filed suit on February 27, 2009 seeking recovery for losses dating back 32 years.
- The circuit court denied partial summary disposition, relying on Regents v Titan Ins Co to toll the one-year-back rule.
- The Court resolves whether Regents correctly extended tolling to the one-year-back rule and ultimately reinstates Cameron, overruling Regents.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether minority/insanity tolling tolls the one-year-back rule | Joseph argues tolling extends damages beyond one year. | ACIA contends tolling does not affect the damages cap. | No; tolling does not affect the one-year-back damages limit. |
| Whether Regents correctly overruled Cameron | Regents correctly allowed tolling of damages. | Regents wrongly conflated timing with damages; Cameron should stand. | Regents is overruled; Cameron reinstated. |
| What the correct interpretation of MCL 500.3145(1) and MCL 600.5851(1) is | Statutes should be interpreted to save broader damages via tolling. | Statutes should be read as written: damages limited to one year back; timing tolling does not change damages. | Damages are limited to losses incurred within one year before filing. |
| Stare decisis implications of overturning Regents | Regents should stand to avoid disruption of reliance interests. | Stare decisis yields to clear statutory language; Regents was wrongly decided. | Stare decisis does not prevent overruling Regents; statutory text controls. |
Key Cases Cited
- Univ. of Mich. Regents v. Titan Ins. Co., 487 Mich. 289 (2010) (overruled Cameron; tolling of limitations discussed)
- Cameron v. Auto Club Ins. Ass'n, 476 Mich. 55 (2006) (minority/insanity tolling does not toll one-year-back rule)
- Liptow v. State Farm Mut. Auto. Ins. Co., 272 Mich. App. 544 (2006) (tolling for state political subdivisions analyzed; one-year-back rule applicable)
- Geiger v. Detroit Auto Inter-Ins Exch., 114 Mich. App. 283 (1982) ( Geiger held tolling applied to one-year-back rule; later overruled)
- Devillers v. Auto Club Ins. Ass'n, 473 Mich. 562 (2005) (two limitations in no-fault statute; supports statutory interpretation)
- Welton v. Carrier Ins. Co., 421 Mich. 571 (1984) (cited regarding construction of tolling and limitations)
- Sun Valley Foods Co. v. Ward, 460 Mich. 230 (1999) (statutory interpretation principles and plain language emphasis)