Advisacare Healthcare Solutions Inc v. Auto Owners Insurance Co

CourtMichigan Court of Appeals
DecidedJune 8, 2026
Docket366353
StatusUnpublished

This text of Advisacare Healthcare Solutions Inc v. Auto Owners Insurance Co (Advisacare Healthcare Solutions Inc v. Auto Owners Insurance Co) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advisacare Healthcare Solutions Inc v. Auto Owners Insurance Co, (Mich. Ct. App. 2026).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

ADVISACARE HEALTHCARE SOLUTIONS, UNPUBLISHED INC, doing business as ADVISACARE, June 08, 2026 2:55 PM Plaintiff-Appellee,

v Nos. 366353; 366546 Kent Circuit Court AUTO OWNERS INSURANCE COMPANY, LC No. 18-004210-NF

Defendant,

and

HOME-OWNERS INSURANCE COMPANY,

Defendant-Appellant.

ON REMAND

Before: SWARTZLE, P.J., and MURRAY and ACKERMAN, JJ.

PER CURIAM.

This consolidated appeal arises from a third-party action brought under Michigan’s no- fault insurance act, MCL 500.3101 et seq. Plaintiff, AdvisaCare Healthcare Solutions, Inc., doing business as AdvisaCare, sought payment of personal protection insurance (PIP) benefits for attendant care services provided to Carol Schulz and Sandra Schulz after they were injured in a motor vehicle accident. After a two-day trial, the jury awarded AdvisaCare $149,196.83 in allowable expenses and $101,528.27 in penalty interest, for a total award of $250,725.10 against defendant Home-Owners Insurance Company. In Docket No. 366546, Home-Owners appeals by delayed leave granted the judgment entered following the jury’s verdict. In Docket No. 366353, Home-Owners appeals of right the trial court’s order granting AdvisaCare’s motion for attorney fees and costs under MCR 2.405 and MCL 500.3148.

-1- As can be seen from the prior appellate proceedings, the parties raise a myriad of procedural rules—contained in statute, court rules, and caselaw—to support their respective positions.1 Added to that, they both claim entitlement to a more equitable position, for whatever that is worth (most of the issues are legal ones, where equity has no role). And as can be seen from our two prior opinions, and the Supreme Court’s remand order, we have equivocated on the correct answer to these questions. Below we provide a timeline for what occurred in the trial court and a short background of the prior appellate proceedings, and then resolve the questions submitted on remand from the Supreme Court. Ultimately, we reverse the trial court’s denial of Home-Owners’ motion for a directed verdict, and remand for entry of judgment against Auto-Owners.

I. BACKGROUND

First, we discuss the timeline of relevant events in the trial court. In November 2017, Sandra and Carol Schulz filed a declaratory judgment action against their auto insurer, Home- Owners, after attempts to obtain reimbursement for services provided to them by AdvisaCare went partially unpaid. That case was filed in Ottawa Circuit Court. AdvisaCare then filed its complaint against Auto-Owners, the wrong insurer, in Kent Circuit Court in May 2018, seeking reimbursement for the same services. In its answer to the complaint, Auto-Owners asserted as affirmative defenses that AdvisaCare’s claims may be “barred in whole or in part by the applicable statute of limitations, one-year back rule, doctrine of laches, and/or statute of repose . . . .” Auto- Owners also stated in its answer to the complaint that it was not the Schulzes’ insurer. There is no dispute that Home-Owners and Auto-Owners are sister insurance companies under the umbrella Auto-Owners Insurance Group.

In June 2018, attorneys for the Schulzes, AdvisaCare, and Auto-Owners stipulated to change the venue of the Ottawa Circuit Court case to Kent Circuit Court so that it could be consolidated with AdvisaCare’s case against Auto-Owners. The parties stipulated, among other things, that the PIP benefits that the Schulzes sought included payment of the attendant care services provided by AdvisaCare, that the defendant in AdvisaCare’s Kent Circuit Court case was the same as the defendant in the Ottawa Circuit Court case, that the defense attorney in both cases was the same, and that both cases involved legal and factual issues that were nearly identical. The Ottawa Circuit Court granted the parties’ request, and in August 2018, the Kent Circuit Court consolidated the two cases upon the parties’ identical stipulations.

During discovery, and contrary to its answers to AdvisaCare’s complaint, in its July 2018 responses to AdvisaCare’s request for admissions, Auto-Owners admitted that Carol and Sandra were covered under a “no-fault automobile policy issued through Auto-Owners Insurance Company,” and also admitted, upon information and belief, that it was the insurer of highest priority for no-fault benefits. Realizing the mistake in that admission, in November 2018, Auto- Owners provided supplemental answers to the request to admit, attempting to deny what it had previously admitted on the coverage issue. Then, three months later in a February 2019 deposition,

1 See AdvisaCare Healthcare Solutions Inc v Home-Owners Ins Co, unpublished per curiam opinion of the Court of Appeals, issued February 11, 2025 (Docket Nos. 366353 and 366546), vacated, AdvisaCare Healthcare Solutions Inc v Home-Owners Ins Co, 28 NW3d 322 (2025). We assume the reader is familiar with the other material facts from our prior opinions.

-2- the adjuster for the Schulzes’ claim testified that it was Home-Owners, not Auto-Owners, that had a contract with the Schulzes.

In an attempt to clarify the situation, AdvisaCare moved in April 2019 to substitute Home- Owners for Auto-Owners. The trial court granted the motion, concluding that given the close relation of the two parties (with even Auto-Owners’ counsel confusing the companies), justice required the substitution. Home-Owners then filed an answer and affirmative defenses to AdvisaCare’s complaint, which included the one-year back rule defense and a challenge to the lack of a valid assignment from either Carol or Sandra. Trial ensued. After AdvisaCare presented its case, Home-Owners moved for a directed verdict, arguing that AdvisaCare lacked standing and all of its claims were barred by the one-year back rule. The trial court denied the motion, opining that, as to the one-year back rule, Home-Owners was substituted for Auto-Owners, not an added new party. After denying Home-Owners’ post-trial motion, the court entered a judgment awarding AdvisaCare damages and attorney fees against Home-Owners.

In our initial opinion, we reversed “the trial court’s denial of a directed verdict on the issue of AdvisaCare’s standing to pursue PIP benefits for attendant care services provided to Carol, vacate[d] the trial court’s award of attorney fees under MCL 500.3148, and remand[ed] to the trial court for further proceedings consistent with this opinion.” AdvisaCare Healthcare Solutions Inc v Home-Owners Ins Co, unpublished per curiam opinion of the Court of Appeals, issued February 11, 2025 (Docket Nos. 366353 and 366546), p 1. Two of the conclusions reached in that opinion were that Home-Owners’ substitution for Auto-Owners did not relate back to the filing of the complaint, but that conclusion did not result in the one-year rule barring AdvisaCare’s claim, as the time commenced under the statute when AdvisaCare received the assignment. See AdvisaCare Healthcare Solutions Inc, unpub op at 4. We also held that there was no standing for AdvisaCare to pursue benefits on behalf of Carol, since she had not assigned the right to pursue benefits until after AdvisaCare filed its complaint. Id. at 5.

Our second opinion was issued on Home-Owners’ motion for reconsideration.

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Advisacare Healthcare Solutions Inc v. Auto Owners Insurance Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advisacare-healthcare-solutions-inc-v-auto-owners-insurance-co-michctapp-2026.