Attendant Care Company Cannot Bill More Than It Was Paying Independent Contractor

Shakeim Higgins was injured in a Michigan motor vehicle accident. He carried Michigan auto no-fault insurance with Geico. He was prescribed attendant care services. Higgins’ girlfriend was hired as an independent contractor by 5 Star Comfort Care to provide the attendant care at a rate of $10 per hour. 5 Star then attempted to bill Geico at $39.99 per hour. Geico only paid a partial amount. Thus, 5 Star filed a lawsuit for the unpaid PIP benefits. The Washtenaw County Circuit Court ultimately dismissed the case brought by 5 Star.

On appeal, 5 Star claimed that the language in Higgins’ assignment of rights demonstrated a contractual agreement to bill the patient (Mr. Higgins) at $39.99 an hour for attendant care services. The language was as follows: “[Higgins] hereby certifies that [he] has incurred charges for services provided by [5 Star] for which the rights, privileges and remedies for payment are hereby assigned.”

However, Geico argued that the charges in excess of the $10 paid to Higgins’ girlfriend were not charges that could be billed for under MCL 500.3107(1)(a) which is the applicable statute.  The Michigan Court of Appeals agreed and affirmed the Trial Court’s summary disposition ruling which had been favorable to Geico.

The appellate judges reasoned that the Assignment of Rights agreement upon which 5 Star relied was not a contract for attendant-care services. It did not establish that the patient, Mr. Higgins, had “incurred” a $39.99 per hour expense. Thus, 5 Star’s reliance on the Assignment of Rights was misplaced. Ultimately, the Michigan Court of Appeals held that 5 Star was not entitled to any additional PIP benefits.

Click on the link to read the court ruling in 5 Star Comfort Care LLC v. Geico Indemnity Co.

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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.

Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.

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