The Michigan No-Fault Insurance Act provides that a person injured in a car accident can recover his or her attorney fees, if the insurer unreasonably refuses to pay PIP benefits or unreasonably delays in making proper payment. MCL 500.3148(1). The No-Fault Insurance Law also allows insurers to recover their attorney fees, where a claimant engages in improper conduct by presenting a claim that was “in some respect fraudulent” or “so excessive as to have no reasonable foundation.” MCL 500.3148(2).
The Michigan Court of Appeals recently affirmed a circuit court decision awarding attorney fees to an insurer, where the claimant had filed claims for 12 hours of attendant care on days when evidence indicated he was able to carry on the activities of normal life; the Court of Appeals noted that the claimant argued that they were merely minor errors and the great bulk of the claim submissions were accurate, but the Court noted that “the misrepresentations consisted of much more than a few days out of the year.” Therefore, the lower court properly found that the claims could be considered “in some respect fraudulent” and affirmed the lower court’s award of attorney fees in favor of the insurance company. The case is Bullman v Auto-Owners Insurance Company, Michigan Court of Appeals unpublished case 326788, decided June 16, 2016.
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