W A Foote Memorial Hosp. v. Mich. Assigned Claims Plan

Decision Date31 August 2017
Docket NumberNo. 333360,333360
Parties W A FOOTE MEMORIAL HOSPITAL, doing business as Allegiance Health, Plaintiff–Appellant, v. MICHIGAN ASSIGNED CLAIMS PLAN and Michigan Automobile Insurance Placement Facility, Defendants–Appellees, and John Doe Insurance Company, Defendant.
CourtCourt of Appeal of Michigan — District of US

321 Mich.App. 159
909 N.W.2d 38

W A FOOTE MEMORIAL HOSPITAL, doing business as Allegiance Health, Plaintiff–Appellant,
v.
MICHIGAN ASSIGNED CLAIMS PLAN and Michigan Automobile Insurance Placement Facility, Defendants–Appellees,
and
John Doe Insurance Company, Defendant.

No. 333360

Court of Appeals of Michigan.

Submitted August 9, 2017, at Grand Rapids.
Decided August 31, 2017, 9:00 a.m.


Miller Johnson (by Joseph J. Gavin ) for W A Foote Memorial Hospital.

Hewson & Van Hellemont, PC (by Robert D. Steffes and Nicholas S. Ayoub ), for the Michigan Assigned Claims Plan and the Michigan Automobile Insurance Placement Facility.

Before: Boonstra, P.J., and Ronayne Krause and Swartzle, JJ.

Boonstra, P.J.

321 Mich.App. 164

Plaintiff appeals by right the trial court’s order denying its motion for summary disposition and granting the cross-motion for summary disposition filed by defendants the Michigan Assigned Claims Plan and the Michigan Automobile Insurance Placement Facility (collectively, defendants). We affirm and remand for further proceedings consistent with this opinion.

I. PERTINENT FACTS AND PROCEDURAL HISTORY

This case arises out of an automobile accident that occurred on September 4, 2014. Zoie Bonner was a passenger in a 2003 Ford Taurus driven by her boyfriend, Philip Kerr, when it rear-ended another vehicle. The Taurus was owned by Bonner’s aunt or uncle and was insured under an automobile insurance policy issued by Citizens Insurance Company of the Midwest (Citizens). The police report generated by the Jackson Police Department concerning the accident identified the applicable insurance for the Taurus as "Citizens Insurance." It also contained Kerr’s name, a description of the vehicle, the vehicle registration number, and

321 Mich.App. 165

the vehicle identification number. It did not, however, identify Bonner as a passenger in the Taurus or as an injured party. Bonner did not seek immediate medical attention, but she was treated for rib pain by plaintiff’s emergency department the following day. Bonner’s emergency department chart indicates that she told medical providers that she was involved in a motor vehicle accident the previous day in which she was a passenger in a vehicle that had rear-ended another vehicle. It does not appear that any employees of plaintiff asked Bonner about applicable automobile insurance. Plaintiff provided Bonner with medical services valued at $9,113.

During the year following the accident, plaintiff repeatedly attempted to contact Bonner to obtain information concerning applicable insurance coverage. Plaintiff

909 N.W.2d 41

sent letters, telephoned Bonner, and hired a private investigator eight months after the accident. The private investigator eventually made contact1 with Bonner in June 2015. Bonner stated that neither she nor her boyfriend had automobile insurance but that her aunt owned the vehicle that Kerr had been driving. Neither plaintiff nor its investigator obtained any contact information for Bonner’s aunt or boyfriend, apparently failing even to obtain Bonner’s aunt’s or Kerr’s name. They also did not obtain the police report from the accident.

On September 3, 2015 (one day before the one-year anniversary of the accident), plaintiff filed a claim with defendants, seeking no-fault personal protection insurance benefits (also called personal injury protection benefits or PIP benefits) on Bonner’s behalf under

321 Mich.App. 166

Michigan’s no-fault insurance act, MCL 500.3101 et seq . Under the no-fault act, an injured person may seek PIP benefits from defendants within one year of the injury when no personal protection insurance applicable to the injury can be identified. MCL 500.3172(1) ; MCL 500.3145.2 The following day, and before any response from defendants, plaintiff filed suit requesting that the trial court enter a judgment declaring that defendants had a duty to promptly assign its claim to an insurer and that, upon assignment, the insurer would be responsible to process and pay the claim.

On September 17, 2015, defendants responded to plaintiff’s claim with a letter indicating that it was unable to process the claim without additional information. The letter requested that additional information be forwarded to defendants and stated that the claim would be reviewed once complete information was received. In October 2015, defendants answered plaintiff’s complaint, asserting, among other defenses, that plaintiff had failed to state a claim for which relief could be granted, that plaintiff had not submitted a completed claim for PIP benefits, that defendants did not owe benefits because they were not "incurred" by Bonner, and that plaintiff was precluded from obtaining relief because plaintiff had "failed to obtain primary coverage within the obligation of the primary carrier(s)" to the detriment of defendants.

Bonner was deposed in December 2015. She testified that her aunt owned the vehicle and maintained insurance on it,3 although she did not know the name of the

321 Mich.App. 167

insurer. Citizens was subsequently identified as the insurer of the vehicle. Plaintiff attempted to submit a claim for PIP benefits to Citizens, but Citizens denied the claim as being beyond the one-year deadline contained in MCL 500.3145.

Defendants moved for summary disposition under MCR 2.116(C)(10), arguing that plaintiff’s claim was ineligible for assignment because applicable insurance had been identified and because plaintiff could have recovered PIP benefits from Citizens if it had acted in a timely fashion. Plaintiff responded and also moved for summary disposition, arguing that defendants were required to promptly assign plaintiff’s claim at the time of the claim application unless the claim was obviously ineligible

909 N.W.2d 42

and that defendants had failed to do so. Plaintiff argued that the subsequent discovery of information concerning the Citizens policy did not alter this obligation.

After a hearing on the parties’ motions, the trial court denied plaintiff’s motion for summary disposition and granted defendants’ motion for summary disposition, reasoning that plaintiff had failed to demonstrate that it could not have identified applicable insurance at the time it submitted its application for PIP benefits to defendants. Further, plaintiff could have learned of the Citizens policy if it had filed suit directly against Bonner for the unpaid medical bills, if it had obtained proper information from Bonner at the time of treatment, if it had obtained the police report concerning the automobile accident, or if it had followed up on information that Bonner’s aunt owned the vehicle in question.

This appeal followed. During the pendency of this appeal, our Supreme Court issued its opinion in Covenant Med. Ctr., Inc. v. State Farm Mut. Auto Ins. Co. , 500 Mich. 191, 895 N.W.2d 490 (2017). Covenant reversed

321 Mich.App. 168

decisions of this Court that had recognized that healthcare providers could maintain direct causes of action against insurers to recover PIP benefits, instead holding that no such statutory cause of action exists. Id ., at 195–196, 895 N.W.2d at 493. On August 1, 2017, defendants filed motions with this Court for immediate consideration and for leave to file a nonconforming supplemental authority brief addressing Covenant and its effect on this case. This Court granted the motions and accepted the supplemental briefs that had been submitted by both plaintiff and defendants.4

II. STANDARD OF REVIEW

This Court reviews de novo the grant or denial of motions for summary disposition under MCR 2.116(C)(10). See Johnson v. Recca , 492 Mich. 169, 173, 821 N.W.2d 520 (2012). MCR 2.116(C)(10) provides that a trial court may grant judgment on all or part of a claim when "[e]xcept as to the amount of damages, there is no genuine issue as to any material fact, and the moving party is entitled to judgment or partial judgment as a matter of law." "A genuine issue of material fact exists when the record, giving the benefit of reasonable doubt to the opposing party, leaves open an issue upon which reasonable minds might differ." West v. Gen. Motors Corp. , 469 Mich. 177, 183, 665 N.W.2d 468 (2003). We also review de novo questions of statutory interpretation, see Saffian v. Simmons , 477 Mich. 8, 12, 727 N.W.2d 132 (2007), as well as whether a judicial decision applies retroactively, McNeel v. Farm Bureau Gen. Ins. Co. of Mich. , 289 Mich.App. 76, 94, 795 N.W.2d 205 (2010).

321 Mich.App. 169

III. ANALYSIS

Plaintiff argues that the trial court improperly granted defendants’ motion for summary disposition and instead should have granted summary disposition in favor of plaintiff because defendants were obligated to assign its claim to an insurer under MCL 500.3172(1). Because we hold that Covenant controls this issue and applies to this case, we disagree. We therefore affirm the trial court’s...

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