Anesthesia Servs Affiliates v. Allstate Prop and Casualty Ins Co

CourtMichigan Court of Appeals
DecidedOctober 6, 2025
Docket369778
StatusUnpublished

This text of Anesthesia Servs Affiliates v. Allstate Prop and Casualty Ins Co (Anesthesia Servs Affiliates v. Allstate Prop and Casualty Ins 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
Anesthesia Servs Affiliates v. Allstate Prop and Casualty Ins Co, (Mich. Ct. App. 2025).

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

ANESTHESIA SERVICES AFFILIATES, UNPUBLISHED October 06, 2025 Plaintiff-Appellant, 9:25 AM

and

MICHIGAN AMBULATORY SURGICAL CENTER and PHASE ONE REHAB, LLC,

Intervening Plaintiffs-Appellants,

v No. 369778 Wayne Circuit Court ALLSTATE PROPERTY AND CASUALTY LC No. 22-007561-CZ INSURANCE COMPANY,

Defendant-Appellee.

Before: RIORDAN, P.J., and O’BRIEN and GARRETT, JJ.

RIORDAN, P.J. (concurring in part and dissenting in part).

I concur with the majority that this Court has jurisdiction over this appeal. However, I respectfully dissent from the majority’s ruling that the trial court erred by granting summary disposition in favor of defendant Allstate Property and Casualty Insurance Company. I would instead conclude that the trial court correctly granted summary disposition in favor of defendant.

I. FACTS AND PROCEEDINGS

In July 2020, Teresa Davis was involved in a motor-vehicle accident in Detroit, allegedly suffering various injuries. At the time, she was insured by defendant. In March 2021, plaintiff Anesthesia Services Affiliates (“plaintiff ASA”), as assignee of Davis, sued defendant in the district court. Plaintiff ASA alleged that defendant violated the no-fault act, MCL 500.3101 et seq., by failing to pay for $15,500 in medical services that it provided to Davis. The case was transferred to the trial court in about June 2022, where Michigan Ambulatory Surgical Center and

-1- Phase One Rehab, LLC, as assignees of Davis, joined the case as intervening plaintiffs and added similar claims against defendant.

In May 2023, defendant moved for summary disposition under MCR 2.116(C)(10), asserting that “[n]umerous material misrepresentations were made prior to and during the course of this litigation that Davis knew were false and she intended Defendant to act upon in an effort to collect for benefits that she did not need . . . .” According to defendant, these misrepresentations included falsely claiming in her application for benefits that she had never complained to a medical professional about knee or shoulder pain, notwithstanding that she sought medical treatment for knee and shoulder pain in 2019; falsely claiming that she was unable to drive after the accident despite video surveillance showing otherwise; and claiming excessive costs for attendant-care services. These allegations were supported by substantial documentary evidence. 1 Defendant argued that in light of Davis’s fraud in seeking personal protection insurance (PIP) benefits, as well as the antifraud provision in the no-fault policy issued to Davis stating that the policy was void for fraud relating to “[r]eporting a claim or providing information during the claims settlement process,” the healthcare-provider plaintiffs could not recover from defendant. In support of this argument, defendant cited Bahri v IDS Prop Cas Ins Co, 308 Mich App 420, 424-425; 864 NW2d 609 (2014), which held that when an insured commits fraud in connection with a claim for PIP benefits, the claims of both the insured and his or her healthcare providers are barred pursuant to a standard antifraud provision in the no-fault policy.2

Plaintiffs responded that Williams v Farm Bureau Mut Ins Co of Mich, 335 Mich App 574, 582-583; 967 NW2d 869 (2021), limited Bahri to cases of fraud in the inducement and, as a result, “Defendant’s Motion is futile as post-procurement fraud cannot be the basis to seek dismissal or rescission.” That is, plaintiffs contended, “Bahri is no longer good law so much as Defendant relies upon it in the instant Motion.”

In October 2023, the trial court denied the motion in a written order, stating, “Question of Fact.” Defendant moved for reconsideration, again arguing that it was entitled to summary disposition because “Davis made a number of material misrepresentations . . . in furtherance of an elaborate scheme of fraud.” Defendant also observed that in the past few months, the district court and the trial court itself had repeatedly dismissed claims of other healthcare providers against defendant arising from the same accident because of Davis’s fraud. Defendant asserted that the trial court “must render a consistent determination to promote judicial economy [and] consistency . . . .” Defendant thus requested that the trial court grant its motion for reconsideration and grant summary disposition in its favor. The trial court seemingly agreed, entering a written order granting the motion on the basis of “Fraud in the inducement of the contract.”

1 Defendant alleged several additional acts of misrepresentations that are not necessary to catalogue here. 2 Defendant also argued that it was entitled to summary disposition because Davis’s alleged injuries were not caused by the accident. See Douglas v Allstate Ins Co, 492 Mich 241, 257; 821 NW2d 472 (2012). However, the trial court did not rule on that issue, and it is not before us on appeal.

-2- This appeal followed. On appeal, plaintiffs argue that the trial court erred by granting summary disposition in favor of defendant on the basis of fraud in the inducement, as that legal ground was never raised by defendant in the trial court. Plaintiffs also argue that the trial court’s ruling cannot be sustained on the alternate basis of postprocurement fraud, as Williams held that postprocurement fraud cannot operate as a basis to invoke an antifraud provision in a no-fault policy. Following oral argument, we invited supplemental briefing from the parties on “whether the holding in [Bahri] that an insured’s false statements to an insurer made after procuring a no- fault insurance policy may be used to void or rescind the policy[] was properly limited by [Williams] . . . .” Anesthesia Servs Affiliates v Allstate Prop & Cas Ins Co, unpublished order of the Court of Appeals, entered January 13, 2025 (Docket No. 369778). The parties filed the supplemental briefs as requested, with defendant arguing that Bahri remains good law and plaintiffs countering that Williams properly limited Bahri. Plaintiffs also argue that because MCL 500.3112 of the no-fault act was amended in 2019 to provide healthcare providers with a direct cause of action against no-fault insurers, healthcare providers such as plaintiffs no longer “stand in the shoes” of the insured and thus cannot be barred from reimbursement because the insured committed fraud.

II. STANDARD OF REVIEW

“This Court reviews de novo a circuit court’s decision on a motion for summary disposition under MCR 2.116(C)(10).” Charter Twp of Canton v 44650, Inc, 346 Mich App 290, 308; 12 NW3d 56 (2023). “Summary disposition under MCR 2.116(C)(10) is proper if there is no genuine issue about any material fact and the moving party is entitled to judgment as a matter of law.” Id. “A genuine issue of material fact exists when the record, giving the benefit of reasonable doubt to the opposing party, leaves open an issue upon which reasonable minds might differ.” Id. at 308- 309 (quotation marks and citation omitted). Similarly, “[t]his Court reviews de novo decisions regarding . . . issues of statutory interpretation.” Lear Corp v Dep’t of Treasury, 299 Mich App 533, 536; 831 NW2d 255 (2013). “The proper interpretation of a contract and the legal effect of a contractual clause are questions of law that we review de novo.” Sherman-Nadiv v Farm Bureau Gen Ins Co of Mich, 282 Mich App 75, 78; 761 NW2d 872 (2008).

“We review a trial court’s decision on a motion for reconsideration for an abuse of discretion.” Frankenmuth Ins Co v Poll, 311 Mich App 442, 445; 875 NW2d 250 (2015).

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Related

Douglas v. Allstate Insurance Company
821 N.W.2d 472 (Michigan Supreme Court, 2012)
Titan Insurance Company v. Hyten
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Romain v. Frankenmuth Mutual Insurance
762 N.W.2d 911 (Michigan Supreme Court, 2009)
Jones v. Enertel, Inc
656 N.W.2d 870 (Michigan Court of Appeals, 2003)
Kopp v. Zigich
707 N.W.2d 601 (Michigan Court of Appeals, 2005)
Frankenmuth Insurance Company v. Poll
875 N.W.2d 250 (Michigan Court of Appeals, 2015)
Sherman-Nadiv v. Farm Bureau General Insurance
761 N.W.2d 872 (Michigan Court of Appeals, 2008)
General Motors Corp. v. Department of Treasury
803 N.W.2d 698 (Michigan Court of Appeals, 2010)
Lear Corp. v. Department of Treasury
831 N.W.2d 255 (Michigan Court of Appeals, 2013)
Bahri v. IDS Property Casualty Insurance
864 N.W.2d 609 (Michigan Court of Appeals, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
Anesthesia Servs Affiliates v. Allstate Prop and Casualty Ins Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anesthesia-servs-affiliates-v-allstate-prop-and-casualty-ins-co-michctapp-2025.