Bethany Bloch v. Kevin James Hiszak

CourtMichigan Court of Appeals
DecidedNovember 21, 2023
Docket362039
StatusUnpublished

This text of Bethany Bloch v. Kevin James Hiszak (Bethany Bloch v. Kevin James Hiszak) 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
Bethany Bloch v. Kevin James Hiszak, (Mich. Ct. App. 2023).

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

BETHANY BLOCH, UNPUBLISHED November 21, 2023 Plaintiff-Appellant,

v No. 362039 Monroe Circuit Court KEVIN JAMES HISZAK, LC No. 2019-142512-NF

Defendant,

and

FARM BUREAU GENERAL INSURANCE COMPANY and SET SEG INSURANCE SERVICES,

Defendants-Appellees.

Before: BOONSTRA, P.J., and GADOLA and MALDONADO, JJ.

PER CURIAM.

In this action arising out of an automobile accident, plaintiff appeals as of right the trial court’s order denying her motions for case-evaluation sanctions under former MCR 2.403(O) from defendants,1 Farm Bureau General Insurance Company and SET SEG Insurance Services, and attorney fees under MCL 500.3148 from SET SEG only. We affirm.

1 The collective term “defendants,” will be used to refer to the two insurance companies. Defendant, Kevin James Hiszak, was dismissed with prejudice in a stipulated order after he settled for his policy limit of $20,000. Hiszak is not a party to this appeal.

-1- I. BACKGROUND FACTS AND PROCEDURAL HISTORY

Plaintiff was employed as a bus driver for Bedford Township School District, which carried an automobile insurance policy under the no-fault act, MCL 500.3101 et seq., with SET SEG. Plaintiff had a personal no-fault policy with Farm Bureau. Both policies included coverage for underinsured motorist (UIM) benefits. On May 28, 2019, Plaintiff was driving a school bus when defendant, Kevin James Hiszak, crashed his car into the bus. As a result, plaintiff’s left clavicle was fractured and required surgery. She was unable to work at all until September 3, 2019. Between then and October 18, 2019, plaintiff was cleared to work as a door monitor for about half of her pay. Plaintiff was cleared to drive a bus again by a doctor on October 18, 2019. However, plaintiff did not return to driving a bus until February 2020 because of her inability to pass the physical examination required. She continued driving until the COVID-19 pandemic shut down the schools in March 2020. Because of the continuing pain she experienced from driving, plaintiff decided to retire rather than return to work.

Plaintiff filed a complaint for UIM benefits against SET SEG and Farm Bureau because Hiszak had only $20,000 in coverage for the third-party claim against him. Plaintiff also sued SET SEG for first-party personal protection insurance (PIP) benefits because she was injured while driving for work. In response, SET SEG contended it had not paid plaintiff any wage-loss benefits because she never submitted a claim for such and it was unclear how much she was owed. SET SEG noted plaintiff was receiving workers’ compensation benefits and had returned to work in September 2019, although in a limited role. Absent a claim from plaintiff and an explanation of how much she made, what benefits she was receiving, and how much money she was requesting, SET SEG asserted it had inadequate proof of the claim or amount of the loss. As for the UIM claim, SET SEG and Farm Bureau disputed priority and apportionment of the loss.

The parties engaged in case evaluation on May 19, 2021, which resulted in the following award: “As to the PIP claim: [SET SEG] to pay plaintiff $15,000. As to the UIM claim: defendants to pay plaintiff $25,000 to be apportioned according to the policies.” Plaintiff and Farm Bureau rejected the award, while SET SEG filed a conditional acceptance of it (SET SEG would have accepted the award if plaintiff accepted). Notice of the parties’ decisions was provided in July 2021. Because there was not an agreement the case proceeded to trial. SET SEG and Farm Bureau stipulated Farm Bureau would pay 36.5% of any UIM benefits, while SET SEG would be responsible for the remaining 63.5%.

The jury rendered a verdict in favor of plaintiff. The jury found Hiszak was negligent, proximately caused plaintiff’s injury, and was 100% at fault for the accident. The jury also found plaintiff was entitled to third-party no-fault benefits and suffered $79,500 of present and future noneconomic damages. As for the PIP benefits, the jury found plaintiff sustained an accidental bodily injury, it arose out of the use of a motor vehicle, and she suffered work loss. The jury calculated the work loss sustained by plaintiff to be $47,600. The jury was asked if any of that was overdue, the jury answered “yes,” and determined plaintiff was owed $9,880 in interest.

After trial, plaintiff moved for attorney fees from SET SEG under MCL 500.3148(1), asserting SET SEG’s refusal to pay PIP benefits was unreasonable. Plaintiff also moved for case- evaluation sanctions from both defendants under former MCR 2.403(O), arguing she achieved a better result than the case-evaluation award. SET SEG argued it reasonably delayed payment

-2- because of bona fide factual disputes, so it was not liable for attorney fees under MCL 500.3148(1). Defendants both argued they were not responsible for case-evaluation sanctions because MCR 2.403 had since been amended and no longer allowed for such sanctions. Plaintiff insisted the trial court should enforce the former version of the court rule because case evaluation concluded before the amendment went into effect on January 1, 2022. The trial court agreed with defendants on both claims and denied plaintiff’s motions. This appeal followed.

II. ATTORNEY FEES UNDER MCL 500.3148(1)

Plaintiff argues the trial court clearly erred when it found SET SEG’s decision to delay or deny payment of PIP benefits was reasonable. We disagree.2

A. STANDARD OF REVIEW

This Court reviews de novo issues of statutory interpretation. Moore v Secura Ins, 482 Mich 507, 516; 759 NW2d 833 (2008). In the context of MCL 500.3148, “[w]hether an insurer acted reasonably when it delayed paying a claim presents a mixed question of law and fact.” Beaumont Health v Mich Auto Ins Placement Facility, ___ Mich App ___, ___; ___ NW2d ___ (2023) (Docket No. 361109); slip op at 3. “ ‘What constitutes reasonableness is a question of law, but whether the defendant’s denial of benefits is reasonable under the particular facts of the case is a question of fact.’ ” Id. at ___; slip op at 3, quoting Ross v Auto Club Group, 481 Mich 1, 7; 748 NW2d 552 (2008). This Court reviews de novo questions of law, but we review findings of fact for clear error. Moore, 482 Mich at 516. “A decision is clearly erroneous when the reviewing court is left with a definite and firm conviction that a mistake has been made.” Beaumont Health, ___ Mich App at ___; slip op at 3 (quotation marks and citation omitted).

B. LAW AND ANALYSIS

The trial court did not clearly err when it found SET SEG’s delay or refusal to pay PIP benefits to plaintiff was reasonable, and therefore, the trial court did not err when it denied plaintiff’s motion for attorney fees under MCL 500.3148(1).

The statute at issue in this case, MCL 500.3148(1), “constitutes an exception to the American rule, which provides that attorney fees generally are not recoverable from the losing party as costs in the absence of an exception set forth in a statute or court rule expressly authorizing such an award.” Wasenko v Auto Club Group, ___ Mich App ___, ___; ___ NW2d ___ (2023) (Docket No. 361452); slip op at 3 (quotation marks and citation omitted). In relevant part, MCL 500.3148(1) states, “an attorney is entitled to a reasonable fee for advising and representing a claimant in an action for personal or property protection insurance benefits that are overdue.” It

2 SET SEG asserts we should decline to consider this issue, and this entire appeal, because of plaintiff’s failure to provide all of the relevant transcripts.

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Cite This Page — Counsel Stack

Bluebook (online)
Bethany Bloch v. Kevin James Hiszak, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bethany-bloch-v-kevin-james-hiszak-michctapp-2023.