Great American Insurance v. Queen

272 N.W.2d 659, 86 Mich. App. 362, 1978 Mich. App. LEXIS 2597

• Court: Michigan Court of Appeals
• Decided: October 3, 1978
• Docket: Docket 77-4457
• Status: Published

Opinions

Per Curiam.

The sole question in this case is whether a worker’s compensation carrier is entitled to be reimbursed from the injured employee’s recovery of noneconomic losses from the tortfeasors. The trial court held that they were not entitled to reimbursement and granted defendants’ motions for summary judgment.

Presently within this Court there exists a split of opinion on this issue. In Wrobel v Wayne County Road Comm, 79 Mich App 484; 261 NW2d 58 (1977), one panel of this Court relied upon the pre-no-fault case of Pelkey v Elsea Realty & Investment Co, 394 Mich 485; 232 NW2d 154 (1975), and held that the compensation carrier was entitled to reimbursement. However, more recently in Reliance Insurance Co v Messina Trucking, Inc, 83 Mich App 159; 268 NW2d 328 (1978), another panel of this Court distinguished Pelkey and held that reimbursement was not authorized. We believe that Reliance Insurance Co v Messina Trucking, Inc is the better reasoned opinion and we adopt its reasoning and result herein. It makes no sense to us to reimburse plaintiff for monies paid out for economic loss out of a later recovery for noneconomic loss. The two recoveries represent compensation for distinct losses, without providing any double recovery for the injured employee. To adopt plaintiff’s argument would be to deny complete recovery to a seriously injured employee, while permitting any other person who suffers serious injury to recover in full. We do not believe that the Legislature, in enacting the worker’s compensation and no-fault acts, intended such a result.

Affirmed. No costs, a public question being involved.