Linden v. Citizens Insurance Company of AmericaLinden v. Citizens Insurance Company of America
Case Information
*1 S T A T E O F M I C H I G A N C O U R T O F A P P E A L S HOWARD T. LINDEN, Conservator for the Estate FOR PUBLICATION of INDIA ARNE THOMAS a/k/a INIA ARNE November 13, 2014 THOMAS, 9:25 a.m.
Plaintiff-Appellee, v No. 312702
Ingham Circuit Court CITIZENS INSURANCE COMPANY OF LC No. 10-001572-NF AMERICA,
Defendant/Third-Party Plaintiff-
Appellant,
and
WILLIAM THOMAS and TAMAKIA THOMAS,
Third Party Defendants. Before: W ILDER , P.J., and F ITZGERALD and M ARKEY , JJ.
P ER C URIAM .
In this action for personal protection insurance (PIP) benefits under the no-fault act,
Plaintiff brought this action to recover PIP benefits on behalf of India Arne Thomas (India), for accidental bodily injuries arising out of a July 17, 2001 automobile accident. It is undisputed that India was a minor at the time of the accident. Plaintiff alleges that India sustained massive catastrophic brain damage and other extensive physical injuries in the *2 accident, resulting in her being confined to a wheelchair and requiring 24-hour per day life- sustaining medical care, monitoring, and supervision. It is also undisputed that no identifiable coverage applied to India’s injury and that written notice of India’s claim for PIP benefits was first given to the Michigan Assigned Claims Facility (MACF) on June 24, 2010.
The MACF assigned the claim to defendant, who denied PIP benefits on the basis that
plaintiff’s claim was time-barred under
This Court reviews de novo both questions regarding the interpretation and application of
statutes, and a decision to grant or deny a motion for summary disposition.
Coblentz v Novi
Mich 558, 567;
When considering a motion for summary disposition under MCR 2.116(C)(7), “the trial
court must accept as true the allegations of the complaint unless contradicted by the parties’
documentary submissions.”
Tenneco Inc v Amerisure Mut Ins Co
,
Defendant first argues that, under
The primary goal of interpreting statutory language is to effectuate the Legislature’s
intent.
Lafarge Midwest, Inc v Detroit
,
If construction of a statute is necessary, “a court must look to the object of the statute in
light of the harm it is designed to remedy and apply a reasonable construction that best
accomplishes the purposes of the statute.”
C D Barnes Assoc, Inc v Star Heaven, LLC
, 300 Mich
*3
App 389, 408; 834 NW2d 878 (2013). Every word of the statute is presumed to have some
meaning, so courts should avoid any construction that would render any part of the statute
surplusage or nugatory.
Whitman
,
Under the no-fault act, uninsured claimants may obtain PIP benefits through an assigned
claims plan.
A person claiming through an assigned claims plan shall notify the facility of his claim within the time that would have been allowed for filing an action for personal protection insurance benefits if identifiable coverage applicable to the claim had been in effect. The facility shall promptly assign the claim in accordance with the plan and notify the claimant of the identity and address of the insurer to which the claim is assigned, or of the facility if the claim is assigned to it. An action by the claimant shall not be commenced more than 30 days after receipt of notice of the assignment or the last date on which the action could have been commenced against an insurer of identifiable coverage applicable to the claim, whichever is later.
Defendant is correct that the first sentence of
The time that would have been allowed to file an action if identifiable coverage had been
available is governed by
An action for recovery of personal protection insurance benefits payable under this chapter for accidental bodily injury may not be commenced later than 1 year after the date of the accident causing the injury unless written notice of injury as provided herein has been given to the insurer within 1 year after the accident or unless the insurer has previously made a payment of personal protection insurance benefits for the injury. If the notice has been given or a payment has been made, *4 the action may be commenced at any time within 1 year after the most recent allowable expense, work loss or survivor’s loss has been incurred. However, the claimant may not recover benefits for any portion of the loss incurred more than 1 year before the date on which the action was commenced. . . .
As our Supreme Court has explained, the statute contains two distinct limitations on the time for commencing an action. Cameron v Auto Club Ins Ass’n , 476 Mich 55, 61, 70; 718 NW2d 784 (2006). Under the first half of the first sentence, a claimant may file an action for benefits not later than one year after the date of the accident causing injury. Id. Under the second half of the first sentence and the second sentence, a claimant may file an action for benefits at any time within one year of the most recent allowable expense if the claimant gave written notice of injury to the insurer within one year after the accident or the insurer previously paid PIP benefits for the injury. at 70 (stating that “in cases where the insured has given notice or the insurer has previously paid benefits,” the claimant “is subject to the separate and distinct period of limitations for filing suit that starts at the time of the most recent loss”).
Notably,
Except as otherwise provided in subsections (7) and (8), if the person first entitled to make an entry or bring an action under this act is under 18 years of age or insane at the time the claim accrues, the person or those claiming under the person shall have 1 year after the disability is removed through death or otherwise, to make the entry or bring the action although the period of limitations has run. This section does not lessen the time provided for in section 5852. [Emphasis added.]
There is no dispute on appeal that plaintiff is entitled to the protections of
Defendant argues that
In
Klida v Braman
, 278 Mich App 60; 748 NW2d 244 (2008), this Court decided the
meaning of the phrase “under this act” after a lengthy discussion and analysis. The Court
concluded that all civil actions are brought “under the RJA,” whether based on statute, common
law, or contract, and
We conclude that a reasonable construction of the phrase “under this act” contained within the minority tolling provision,MCL 600.5851(1) , that best accomplishes the statute’s purpose is that all civil actions are brought “under” the RJA, including plaintiff’s breach of contract action. We discern no persuasive reason to ascribe a legislative intent to limit the application ofMCL 600.5851(1) to causes of action arising from a purported violation of a specific statutory provision contained within the RJA or to causes of action for which the applicable statute of limitations is provided by the RJA. And, considering the RJA’s remedial character, the protective purpose of the minority tolling provision, as well as the harm it was designed to remedy—the deprivation of legal rights—we conclude that whether the cause of action arises by statute, common law, or contract, the minority tolling provision is applicable. To deny minors whose cause of action accrues during their disability the opportunity to pursue their otherwise unasserted legal rights would be the antithesis of the firmly-rooted public policy that such minors are to be protected until one year after they reach the age of majority. Such persons would be denied their legal rights simply because they labored under a legal disability. [ Klida , 278 Mich App at 74-75 (citation omitted).]
Accordingly, since there is no dispute that plaintiff’s action is a civil action, the
minority/insanity tolling provisions of
We must next consider whether the minority/insanity tolling provisions of
Unlike the statute of limitations, the one-year-back rule is not subject to the
minority/insanity tolling provisions of
The trial court nevertheless ruled that
Lastly, defendant argues that the trial court erred in concluding that the equitable doctrine
of
contra non valentem
precluded all time limitations of
Black’s Law Dictionary (9th ed), defines the doctrine of contra non valentem as follows: “The rule that a limitations or prescriptive period does not begin to run against a plaintiff who is unable to act, usu. because of the defendant’s culpable act, such as concealing material information that would give rise to the plaintiff’s claim.”
Plaintiff has failed to establish that the doctrine of is recognized and
applied in Michigan. Plaintiff asserts that the doctrine of
contra non valentem
is a venerable
common-law principle that has been recognized in this Court for at least 25 years and that it
precludes all time limitations in
Moreover, our Supreme Court has held that courts may not use their equitable powers to disregard the one-year-back rule on the basis that the statute itself is unfair. In Devillers , 473 Mich at 589, the Court rejected the view that “judges are omniscient and may, under the veil of equity, supplant a specific policy choice adopted on behalf of the people of Michigan by their elected representatives in the Legislature.” The Court explained the danger of such an approach under our constitutional system of separation of powers:
Indeed, if a court is free to cast aside, under the guise of equity, a plain statute such as § 3145(1) simply because the court views the statute as “unfair,” then our system of government ceases to function as a representative democracy. No longer will policy debates occur, and policy choices be made, in the Legislature. Instead, an aggrieved party need only convince a willing judge to rewrite the statute under the name of equity. While such an approach might be extraordinarily efficient for a particular litigant, the amount of damage it causes to the separation of powers mandate of our Constitution and the overall structure of our government is immeasurable. . . . [ Id. at 591.]
While acknowledging that “courts undoubtedly possess equitable power,” the Court stated that “such power has traditionally been reserved for ‘unusual circumstances’ such as fraud or mutual mistake.” at 590.
In this case, plaintiff has not alleged any unusual circumstance, such as fraud or mutual
mistake, which would provide a basis for invoking judicial equitable powers as a means to
disregard the plain language of
We affirm in part, reverse in part, and remand for proceedings consistent with this opinion. We do not retain jurisdiction. No taxable costs pursuant to MCR 7.219, neither party having prevailed in full.
/s/ Kurtis T. Wilder /s/ E. Thomas Fitzgerald /s/ Jane E. Markey
Notes
[1] Estate of India Arne Thomas v Citizens Ins Co , unpublished order of the Court of Appeals, issued July 15, 2013 (No. 312702).
[2] Following the enactment of 2012 PA 204, such claims are now filed through the Michigan automobile insurance placement facility.MCL 500.3171.
[3] The Court’s decision in
Cameron
was overruled by
Univ of Mich Regents v Titan Ins Co
Mich 289;
[4] In Devillers , Justice Cavanagh would have applied “equitable tolling,” which he considered another name for the doctrine of , to the one-year-back rule. Devillers Mich at 594 n 1 (Cavanagh, J., dissenting).