In re Carroll

832 N.W.2d 276, 300 Mich. App. 152
CourtMichigan Court of Appeals
DecidedApril 2, 2013
DocketDocket No. 292649
StatusPublished
Cited by12 cases

This text of 832 N.W.2d 276 (In re Carroll) 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
In re Carroll, 832 N.W.2d 276, 300 Mich. App. 152 (Mich. Ct. App. 2013).

Opinion

ON REMAND

M. J. KELLY, J.

This case returns to us on remand from our Supreme Court. In re Carroll, 493 Mich 899 (2012). We previously had determined that, under MCL 500.3107(l)(a), respondent, Auto Club Insurance Association, had to pay the entire fee of petitioner, Alan A. [156]*156May, for services rendered as the conservator of Edward Carroll’s estate. See In re Carroll, 292 Mich App 395, 407; 807 NW2d 70 (2011). We are called upon to again address this issue, but to do so in light of our Supreme Court’s recent decisions in Johnson v Recca, 492 Mich 169; 821 NW2d 520 (2012), and Douglas v Allstate Ins Co, 492 Mich 241; 821 NW2d 472 (2012). After reviewing those decisions, we conclude that a conservator’s fees do not necessarily constitute fees for an injured person’s care, recovery, or rehabilitation, even when the injured person would not have needed the conservator’s services were it not for his or her injuries. Instead, the conservator’s fees will be compensable under MCL 500.3107(l)(a) only to the extent that the conservator’s services were directly related to the injured person’s care, recovery, or rehabilitation. Because May has not challenged the probate court’s finding that only $99 of his fee was related to Carroll’s care, recovery, or rehabilitation, we must affirm the probate court’s order.

I. BASIC PACTS

Carroll was permanently disabled after he suffered a closed head injury in an automobile accident in 1982. In re Carroll, 292 Mich App at 397. Carroll’s wife cared for him until she died in November 2008. Id. at 398. Because Carroll was incapable of managing his own property, the probate court appointed May to be Carroll’s conservator in December 2008. Id.

In March 2009, May petitioned the probate court for an order compelling Auto Club — Carroll’s no-fault vehicle insurer — to pay him $6,816.70 in fees for services rendered. Id. Auto Club argued that it had no obligation to pay May’s fees because his fees were not allowable expenses under MCL 500.3107(1)(a). In re Carroll, 292 Mich App at 398. The probate court examined May’s [157]*157itemized bills and determined that the majority of his services were not related to Carroll’s care, recovery, or rehabilitation, as required under MCL 500.3107(1)(a). Accordingly, it ordered Auto Club to pay $99 of May’s fee and it ordered Carroll’s estate to pay the remainder. In re Carroll, 292 Mich App at 398-399.

May then appealed in this Court.

On appeal, this Court did not examine the individual services that May performed for Carroll to determine whether the specific service was for Carroll’s care, recovery, or rehabilitation. Instead, we examined whether the appointment of a conservator to handle an injured person’s estate was generally the type of service that was reasonably necessary for the injured person’s care, recovery, or rehabilitation. Id. at 400. Relying on the expansive interpretation of the term “care” utilized by the Court in Heinz v Auto Club Ins Ass’n, 214 Mich App 195, 198; 543 NW2d 4 (1995), we concluded that, when a court determines that an injured person is so disabled that he or she requires a conservator to handle his or her estate, the services provided by the conservator necessarily qualify as services for the injured person’s care. In re Carroll, 292 Mich App at 400-403. That is, we concluded that a conservator’s fee will always be compensable under MCL 500.3107(1)(a) when the injured person’s need for a conservator was itself causally related to an automobile accident.

We rejected Auto Club’s contention that the conservator’s services were not compensable under MCL 500.3107(1)(a) because the services were, in effect, replacement services under MCL 500.3107(1)(c). We recognized that the issue was complicated by the nature of the conservator’s services: a conservator manages the injured person’s property and business affairs, which the injured person would likely have performed [158]*158on his or her own behalf but for the accident. In re Carroll, 292 Mich App at 403-405. Nevertheless, we concluded that a conservator’s services were closer to the “care” referred to in MCL 500.3107(1)(a) than to the “ordinary living activities” that are compensated under MCL 500.3107(1)(c). In re Carroll, 292 Mich App at 404. Indeed, we characterized a conservator’s services as “extraordinary professional services ....” Id.

Finally, we rejected Auto Club’s contention that our Supreme Court’s decision in Griffith v State Farm Mut Auto Ins Co, 472 Mich 521; 697 NW2d 895 (2005), mandated a different result. We acknowledged that our Supreme Court had narrowly interpreted MCL 500.3107(1)(a) to require a direct link between the good or service provided and the injured person’s need for care, but distinguished Griffith on the facts. See In re Carroll, 292 Mich App at 406. Specifically, we noted that there are some services that, although one might be able to characterize them as replacement services in the broadest sense, because the services are so intimately connected to the injured person’s care, are compensable under MCL 500.3107(1)(a):

The conservator’s services here are more akin to attendant care provided by a nursing assistant who handles the injured person’s intimate hygiene needs; in that situation, although the injured person would normally have handled those needs on his or her own, as a result of the injury he or she is no longer able to do so. Because expenses incurred to have someone perform those hygiene services are reasonably incurred for the injured person’s care, recover, or rehabilitation, the nursing assistant’s services are compensable under MCL 500.3107(1)(a). Similarly, because the need for the conservator was causally connected to Carroll’s injury and the expense is reasonably necessary for his care, it too is compensable under MCL 500.3107(l)(a). [In re Carroll, 292 Mich App at 407 (citations omitted).]

[159]*159We then held that May’s entire fee was related to Carroll’s care under MCL 500.3107(1)(a). For that reason, we reversed the probate court’s opinion and order and remanded for further proceedings. In re Carroll, 292 Mich App at 407.

Auto Club then sought leave to appeal in our Supreme Court. Our Supreme Court initially held the application in abeyance pending its decisions in Johnson and Douglas. In re Carroll, 493 Mich 899. After it released those opinions, the Court, in lieu of granting leave to appeal, vacated our judgment and remanded the case back to this Court for reconsideration in light of those decisions. Id.

II. FIRST PARTY NO-FAULT BENEFITS

A. STANDARD OF REVIEW

This Court reviews de novo the proper interpretation of the no-fault act, MCL 500.3101 et seq. Johnson, 492 Mich at 173.

B. NATURE OF THE BENEFITS

“A person injured in an automobile accident is entitled to a variety of personal protection insurance benefits — often referred to as PIP benefits — from his or her insurance carrier under MCL 500.3107.” In re Carroll, 292 Mich App at 400. The statutory PIP benefits include “four general categories of expenses and losses: survivor’s loss, allowable expenses, work loss, and replacement services.” Johnson,

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Cite This Page — Counsel Stack

Bluebook (online)
832 N.W.2d 276, 300 Mich. App. 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-carroll-michctapp-2013.