Michigan Court of Appeals Favors Medical Provider in Ruling Asserting Lack of Proper Licensing

Plaintiff filed a claim with her no-fault insurer for personal injury protection (PIP) after she was injured in a motor vehicle accident. The no-fault insurer denied Plaintiff’s claim asserting that the owner of Plaintiff’s medical provider was not licensed to practice medicine in Michigan and, therefore, unable to render lawful medical treatment.

MCL §450.4904(2) requires that the members and managers of a professional legal liability corporation (PLLC) be licensed in the state of Michigan. MCL §500.3157 requires that treatment giving rise to a claim for PIP benefits must be rendered lawfully.

In the soon-to-be published case of Grady v. Wambach, _____ Mich. App.___ No. 354091 (2021), the Michigan Court of Appeals reversed the trial court’s ruling and remanded the case. The Michigan Court of Appeals opined that Defendant insurer lacked statutory standing to question the formation of the medical provider’s PLLC.

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