Neumann v. State Farm Mutual Automobile Insurance

447 N.W.2d 786, 180 Mich. App. 479, 1989 Mich. App. LEXIS 586
CourtMichigan Court of Appeals
DecidedJuly 12, 1989
DocketDocket 109108
StatusPublished
Cited by13 cases

This text of 447 N.W.2d 786 (Neumann v. State Farm Mutual Automobile Insurance) 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
Neumann v. State Farm Mutual Automobile Insurance, 447 N.W.2d 786, 180 Mich. App. 479, 1989 Mich. App. LEXIS 586 (Mich. Ct. App. 1989).

Opinion

Per Curiam.

Plaintiff appeals as of right from the decision of the Otsego Circuit Court granting summary disposition to defendant. MCR 2.116(0(10). We affirm.

On April 9, 1986, plaintiff was involved in an automobile accident and suffered physical injuries. Defendant, plaintiff’s no-fault insurer, reimbursed him for his medical expenses, including travel costs incurred in obtaining medical treatment. In regards to the travel cost, defendant’s policy is to reimburse claimants for the actual costs incurred, assuming the costs are documented and are otherwise reasonable. Where the claimant provides no proof of actual travel costs, defendant pays at the rate of nine cents per mile. Here, plaintiff reported his mileage without submitting any evidence of actual travel costs, so defendant reimbursed him at the standard rate.

Plaintiff commenced the instant action against defendant in the Otsego Circuit Court, 1 claiming that he had not been sufficiently reimbursed for his travel expenses. By way of an amended complaint, plaintiff asserted that his actual travel expenses exceeded the amounts paid by defendant and requested that defendant be ordered to (i) set a reasonable rate for mileage, (ii) adopt a formula for calculating such a rate for future cases, and (iii) pay damages._

*482 On July 10, 1987, defendant moved for summary disposition pursuant to MCR 2.116(0(10), no genuine issue of material fact. The basis of this motion was that information obtained during discovery revealed that plaintiffs actual travel costs (including the pro rata share of gasoline, maintenance, insurance, and depreciation expenses) amounted to only 7.96 cents per mile. Plaintiff opposed the motion, claiming that defendant’s calculations did not account for all travel expenses incurred, but he submitted no documentary evidence in support of that position.

On July 22, 1987, plaintiff filed a motion, requesting that the trial court delay deciding defendant’s summary disposition motion pending further discovery. By an order dated August 25, 1987, the court denied plaintiff’s request.

On October 22, 1987, the trial court issued a written opinion granting summary disposition to defendant. The court held:

Plaintiff has not contraverted [sic] the evidentiary material and affidavits of defendant as required by MCR 2.116(G)(4), thus the Court finds there exists no genuine issue of material fact that the plaintiff is entitled to more than nine cents a mile for his trips for medical treatment as he did not actually incur expenses in excess of the same.

The court also explained its reasons for not delaying its decision to allow for additional discovery. The court reasoned, in part, that "all of the information available with respect to the expenses which the plaintiff actually incurred are presumably within his possession or knowledge or within his ability to obtain the same.” For that reason and others, the court concluded that plaintiff failed to show he had a chance of uncovering facts *483 supporting his position or opposing defendant’s motion so as to justify further delay.

Defendant thereafter submitted a proposed order for summary disposition which plaintiff opposed as to form. Along with his objections to entry of the order, plaintiff presented, among other things, an affidavit from a certified mechanic which enumerated various maintenance costs that could be "reasonably anticipated” from the operation of an automobile. Plaintiff also attached his own affidavit which detailed numerous maintenance expenses he has incurred or might incur outside the period of medical treatment but which would allegedly be caused in part by the miles he travelled to and from the doctors’ offices. The trial court overruled plaintiff’s objections at a December 14, 1987, hearing.

On December 17, 1987, the court entered an order granting summary disposition to defendant for the reasons stated in its October 22, 1987, opinion.

Subsequently, plaintiff filed a motion for "new trial/rehearing/reconsideration and/or relief from judgment.” Plaintiff claimed that summary disposition as to this entire complaint was improper because he also requested that defendant adopt a set formula for calculating reasonable mileage in the future. Plaintiff further contended that the affidavits filed with his objections to the proposed summary disposition order raised material issues of fact and that defendant’s mileage rate was "pitifully poor.” Plaintiff included a laundry list of items which, he claimed, should be accounted for in calculating a reasonable mileage rate (e.g., wiper blades, tires, washing and waxing of vehicle, antifreeze, etc.).

On April 28, 1988, the trial court issued a writ *484 ten opinion denying plaintiff’s various motions. The court ruled:

This Court, in its opinion and order heretofore referred to, found that there is no genuine issue of material fact that plaintiff had not actually "incurred” health care mileage at a rate greater than nine cents per mile. This Court was and is of the opinion and does specifically rule that plaintiffs entitlement to payment for the reasonable transportation expenses incurred for the purpose of obtaining medical treatment is limited to plaintiffs actual expenses. As the statute requires the incurrence, such actual expense is a precondition to the obligation to pay the same. Thus, the Court looked solely to the amount of expenses plaintiff incurred. The Court understood at the time that the plaintiff, as a necessary cornerstone or predicate to his lawsuit, was alleging that his actual costs incurred were more than nine cents but notwithstanding the same, plaintiff was establishing the rate at nine cents. The Court gleaned the same from Count i, which was plaintiff’s individual claim. Because of the statutory language, and since plaintiff did not incur expenses in excess of nine cents, there is no genuine issue of material fact with respect to Counts i and/or n. The Court specifically finds that defendant has no obligation to create any formula or method of calculation. None is created by statute, rule, regulation, or case law. Defendant only has the obligation to pay the expenses incurred with the upper limitation that they be reasonable. Plaintiffs additional material made a part of the motion for reconsideration does not establish that the costs incurred for medical treatment was more then [sic] nine cents per mile. The additional cost of annual license plate fees and annual registration fees does not bring the cost to a sum greater than nine cents per mile. Further, the affidavit of Roger Duffiney does not comply with MCR 2.119(B)(1)(a), (b), (c). Further, his affidavit does not establish plaintiff actually incurred the costs that he sets forth *485 therein. Plaintiff set forth in detail, as heretofore discussed, his expenses incurred. They do not include the material set forth in Duffiney’s affidavit. The wear and tear on a car which shortens its life expectancy was established by plaintiff’s testimony concerning its purchase price and present value, thereby establishing a depreciation factor. Plaintiff may not have been necessarily limited to the depreciation figure as the ceiling on the wear and tear of his vehicle.

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Bluebook (online)
447 N.W.2d 786, 180 Mich. App. 479, 1989 Mich. App. LEXIS 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neumann-v-state-farm-mutual-automobile-insurance-michctapp-1989.