181 Mich. App. 178 | Mich. Ct. App. | 1989
ON REMAND
This case comes before us on remand from the Supreme Court. 431 Mich 855; 426 NW2d 183 (1988). In our earlier opinion, we affirmed an order of the Workers’ Compensation Appeal Board requiring the employer in this case, defendant, General Motors Corporation, to pay a portion of the attorney fees incurred by an employee, plaintiff, Luella Gilroy, in obtaining workers’ compensation benefits from defendant after having received sickness and accident benefits under an insurance plan provided by defendant. 166 Mich App 609; 420 NW2d 829 (1987). In that
In this case, no arrangements were made for reimbursement to the disability insurer for any sickness and accident benefits payable to plaintiff. In our earlier opinion we observed, after quoting with agreement certain language in the opinion of the wcab, that no truly independent insurance company would intentionally fail to obtain an assignment from a worker for reimbursement of sickness and accident payments in the event of the worker’s entitlement to workers’ compensation benefits, and we concluded that, "under the facts in this case, defendant stands in the place of the disability insurance carrier.” 166 Mich 614. In our earlier opinion we stated:
Under the circumstances in this case, we do not believe that the disability insurance carrier can be*182 characterized as an insurer independent of defendant since no truly independent insurance company would intentionally fail to take an assignment from a worker for reimbursement of sickness and accident payments in the event of the worker’s entitlement to workers’ compensation benefits. Under such a scenario, a disability insurer which agrees with an employer not to take an assignment from a worker helps to circumvent the proper payment by the employer of a worker’s attorney fees incurred in obtaining workers’ compensation benefits, even while the employer reaps the substantial benefit of a coordination credit for any disability payments made by the insurer. In this case, because defendant stands in the place of the disability insurance carrier, defendant, under §821, is required to pay a portion of plaintiffs attorney fees incurred in securing workers’ compensation benefits. [Id., pp 615-616.]
The Supreme Court, which originally denied defendant’s application for leave to appeal, 430 Mich 872 (1988), upon reconsidering defendant’s request, remanded this case for reconsideration as on rehearing granted, directing this Court to retain jurisdiction over the case while, in turn, remanding it to the Bureau of Workers’ Disability Compensation "so that the parties can make a supplemental record as to the contractual relationship between the defendant and the insurance carrier, which relation resulted in the carrier’s foregoing its right of reimbursement. . . .” 431 Mich 855; 426 NW2d 183 (1988). Such a supplemental record was generated at hearings conducted on January 27, 1989, and February 3, 1989, by a magistrate of the Bureau of Workers’ Disability Compensation.
The hearings conducted by the magistrate on remand serve only to reinforce our earlier conclusion that defendant stood in the place of the disability insurance carrier in this case. They re
Affirmed.