Medical Provider Can Aggregate No-Fault Claims for Circuit Court Jurisdiction
A Southeast Michigan physician group aggregated No-Fault claims involving 39 different patients from separate motor vehicle crashes into one lawsuit filed against two defendant insurance companies for non-payment. The plaintiff medical provider alleged that jurisdiction lay with the circuit court because the amount of non-payment exceeded the $25,000 jurisdictional minimum, with a total unpaid balance of more than $200,000.
The defendant insurance companies moved for summary disposition under MCR 2.116(C)(8) and MCR 2.116(C)(10). They argued the following:
The individual patients treated were involved in separate and unrelated auto accidents;
Non-payment was due to several factors, including unreasonable fees and over-billing; and
While all patients were insured by one of the defendant insurance companies, none were insured by both.
The trial court agreed with the defendants and dismissed all 39 claims. Plaintiff argued on appeal that the circuit court granted summary disposition in error. The appellate court referred to a Supreme Court opinion that “absent bad faith in the pleadings, the amount in controversy is determined from the prayer for relief in the plaintiff’s pleadings.” Hodge v State Farm Mut Auto Ins Co, 499 Mich 211, 223-224 (2016). Since bad faith was not a factor, the circuit court had jurisdiction. Further, the circuit court was found to misapply Boyd v Nelson Credit Ctrs, 132 Mich App 774 (1984). The appellate court held that the single plaintiff in this case could aggregate claims to determine jurisdiction.
The circuit court also relied on an unpublished per curiam appellate opinion in Priority Patient Transp LLC v Farmers Ins Exch, but unpublished appellate decisions are not binding. However, the Priority court ruling was instructive in that it recognized that a single plaintiff could aggregate claims to achieve a claim amount needed for jurisdiction.
The appellate court reversed the trial court’s order granting summary disposition to the defendants and remanded for further proceedings.
The case is Michigan Head & Spine Institute v Auto-Owners Ins. Co. and Home-Owners Ins. Co. Released September 2, 2021, No. 354765 in Oakland Circuit Court, LC No. 2020-181621-NF.
Click on the link to read the Michigan Court of Appeals ruling and the dissenting opinion.
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Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.
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