No Fault Rule Deadline Tolled Until Claim is Denied
One of the significant changes to the Michigan No Fault Statute, as amended in 2019, was a provision that the one-year statute of limitations for filing a Michigan No Fault (PIP) lawsuit is tolled until the no fault insurer has formally denied a no-fault personal injury protection (PIP) claim.
In the recently decided Michigan Court of Appeals case of Encompass Healthcare PLLC vs Citizens Insurance Company, the Trial Court failed to abide by this new rule. The insurer wanted to rely upon its Explanation of Rights notice as the required formal denial. This was deemed insufficient. The Court of Appeals felt that the amendment to the law was clear: the applicable statute of limitations is tolled “until the date the insurer formally denies the claim.” The running of the statute of limitations begins after the formal denial. This case was the first reported appellate decision applying MCL § 500.3145. An auto insurer must formally deny a no-fault PIP claim for the statute of limitations to begin to run.
Click on the link to read the court ruling in Encompass Health Care, PLLC v Citizens Ins. Co.
About Alexander & Angelas, P.C.
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.
A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio.
Alexander & Angelas, P.C. measures its performance based upon three key metrics: aging of claims, indemnity expense, and legal defense costs. The firm refuses to over-litigate cases merely to increase legal fees and strives to resolve matters within one year from initial case assignment.
Visit Alexander & Angelas online at https://www.alexanderandangelas.com/ for more information. Partner Peter A. Angelas is available to discuss a confidential matter.
