862 N.W.2d 438
Mich. Ct. App.2014Background
- PIP benefits action under no-fault Act arising from a July 17, 2001 accident involving India Arne Thomas, who was a minor at the time.
- MACF received notice June 24, 2010; assigned to Citizens Ins Co of America which denied benefits as time-barred under MCL 500.3145(1) and MCL 500.3174.
- Plaintiff sued December 8, 2010; trial court partially granted plaintiff and denied defendant’s motions for summary disposition.
- MCR 600.5851(1) tolls the limitations for minors/insane individuals; one-year-back rule in MCL 500.3145(1) applies to PIP recoverable benefits.
- Bronson Methodist Hosp v Allstate Ins Co held MACF claims remain subject to the one-year-back rule; contra non valentem not recognized to toll all limitations.
- Court affirms in part, reverses in part, and remands for proceedings consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MCL 600.5851(1) tolls the no-fault one-year limit. | Thomas tolling applies under minority/insanity. | Tolling does not apply to no-fault actions. | Yes, tolling applies to the action. |
| Whether the one-year-back rule in MCL 500.3145(1) applies to MACF claims. | One-year-back rule should apply to MACF claims. | Bronson Methodist Hosp limits applicability. | One-year-back rule applies to MACF claims. |
| Whether MCL 500.3174 extends the recovery limitation despite the one-year-back rule. | Notice/assignment timing extends filing window. | Statutory language limits extension to the filing period, not the recovery cap. | Bronson method holds it does not extend the recovery limitation. |
| Whether contra non valentem tolling applies to the no-fault limitations. | Equitable tolling exists to protect minors. | Devillers rejects broad equitable tolling outside unusual circumstances. | Contra non valentem not recognized to toll all time limits. |
Key Cases Cited
- Cameron v Auto Club Ins Ass’n, 476 Mich 55 (2006) (established two-part limitation framework for no-fault actions)
- Joseph v Auto Club Ins Ass’n, 491 Mich 200 (2012) (clarified applicability of tolling to one-year and recovery periods)
- Bronson Methodist Hosp v Allstate Ins Co, 286 Mich App 219 (2009) (MACF claims subject to one-year-back rule; no extension of recovery cap by 500.3174)
- Devillers v Auto Club Ins Ass’n, 473 Mich 562 (2005) (rejected broad equitable tolling to override statutory limits)
- Klida v Braman, 278 Mich App 60 (2008) (holds tolling applies to civil actions under the RJA, including no-fault claims)