Smitter v. Thornapple Township
494 Mich. 121
| Mich. | 2013Background
- Plaintiff Robert Smitter was injured while working two jobs: Thornapple Township firefighter and General Motors employee.
- Township paid WDCA wage-loss benefits at 80% of after-tax wage, plus $800/week sickness & accident benefits funded by the township.
- Township did not coordinate the disability policy benefits with WDCA benefits, and paid the full wage-loss benefits.
- Second Injury Fund reimbursement sought under MCL 418.372 based on dual employment; issue is how to calculate fund's reimbursement when benefits are uncoordinated.
- Statutory framework involves MCL 418.351, MCL 418.354, and MCL 418.372; Rahman v Detroit Bd of Ed (2001) governs coordination in dual-employment, later overruled by this decision.
- The Court holds coordination is mandatory except narrow circumstances, and fund reimbursement is based on coordinated benefits; Rahman is overruled to the extent inconsistent with this opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is coordination of benefits mandatory in a dual-employment WDCA case? | Smitter/Thornapple argue Rahman allowed non-coordination. | Fund argues coordination is mandatory, reducing employer liability. | Coordination is mandatory except narrow exceptions; fund reimburses based on coordinated amounts. |
| How is the Second Injury Fund’s liability computed when the injury employer provided less than 80% of wages? | Fund should reimburse based on uncoordinated amounts? | Fund liability tied to coordinated portion after apportionment. | Fund reimburses the coordinated portion; remaining liability allocated to injury employer per MCL 418.372. |
| Does MCL 418.354(15) (volunteer firefighters) permit uncoordinated benefits in dual-employment cases? | Smitter may be a volunteer firefighter; waiver applies. | Waiver applies only to designated volunteer categories and conditions. | Except for those narrowly defined categories, coordination is mandatory; Rahman overruled. |
Key Cases Cited
- Rahman v Detroit Bd of Ed, 245 Mich App 103 (2001) (coordination limited to injury-employer benefits; fund not to subsidize non-coordinated extra benefits)
- Hoste v Shanty Creek Mgmt, Inc, 459 Mich 561 (1999) (defined 'contract of hire' and volunteer status for WDCA purposes)
- Terrien v Zwit, 467 Mich 56 (2002) (statutory interpretation aids; coordination context)
- Lawrence v Toys R Us, 453 Mich 112 (1996) (fund is liable for wage-loss benefits tied to lost wages at concurrent employment)