Prism Lab LLC v. Allstate Insurance Company

CourtMichigan Court of Appeals
DecidedJune 17, 2025
Docket369636
StatusUnpublished

This text of Prism Lab LLC v. Allstate Insurance Company (Prism Lab LLC v. Allstate Insurance Company) 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
Prism Lab LLC v. Allstate Insurance Company, (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

PRISM LAB LLC, UNPUBLISHED June 17, 2025 Plaintiff, 3:17 PM

and

FLINT REGION ASC LLC,

Intervening Plaintiff-Appellant,

MICHIGAN CLINIC NEUROSURGERY PLLC,

Intervening Plaintiff,

v No. 369636 Wayne Circuit Court ALLSTATE INSURANCE COMPANY, LC No. 21-014505-NF

Defendant-Appellant.

Before: MALDONADO, P.J., and M. J. KELLY and RIORDAN, JJ.

PER CURIAM.

In this action to recover personal protection insurance (“PIP”) benefits under the no-fault act, MCL 500.3101 et seq., intervening plaintiff, Flint Region ASC LLC (“Flint Region”), appeals by right from the stipulated dismissal order as to intervening plaintiff, Michigan Clinic Neurosurgery PLLC (“MCN”), to challenge an earlier order granting summary disposition under MCR 2.116(C)(10) (no genuine issue of material fact) in favor of defendant, Allstate Insurance Company (“Allstate”), dismissing Flint Region’s claims to recover no-fault benefits for medical services provided to Allstate’s insured, Tauneesah Polk. We reverse and remand for further proceedings.

-1- I. BACKGROUND

This case arises from a motor vehicle accident involving Polk on April 16, 2020. When Polk was riding a bicycle, a city of Detroit bus collided with Polk’s left shoulder. Polk fell to the ground and sustained injuries. Polk was insured under a no-fault insurance policy with Allstate. Polk received treatment from Henry Ford Health System, as well as C-Spine Orthopedics, beginning in April 2020. Polk received medical treatment from plaintiff, Prism Lab LLC (“Prism”), from about October 15, 2020, until April 15, 2021.1 On March 24, 2021, Polk underwent a 360 Lumbar Fusion L5-S1 (hereinafter, “lumbar spinal fusion” or “surgery”), performed by a neurologic surgeon at MCN. The surgery was performed at Flint Region’s ambulatory surgical center. The surgeon was a consultant for C-Spine Orthopedics. Allstate refused to pay for the surgery.

As to the expenses, Flint Region posited the incurred medical expenses totaled $473,899.76. Adding the total amount of alleged interest, $56,867.97, as well as alleged attorney’s fees, $176,922.58, Flint Region sought $707,690.31 from Allstate. A health insurance claim form dated April 1, 2021, listed the “total charges” as $788,620. An invoice dated February 2, 2022, from Flint Region showed the total balance for the surgery was $464,011.01. According to an audited bill review by Tami Rockholt, RN, BSN, a nurse consultant for Allstate, Flint Region billed $624,529.64 for the surgery. According to a review of Flint Region’s billing by Rockholt, there were “numerous charges dated [March 24, 2021] from Flint Region ASC for various components of a surgical procedure,” but “no records . . . available for review.”

By way of background, Polk filed suit against Allstate seeking no-fault benefits. The matter was assigned Case Number 20-014951-NI and assigned to a judge (“the underlying action”). Polk’s complaint included claims against the city of Detroit and city bus driver, Vernon Turner.2 Prism, an assignee of Polk, also filed suit against Allstate to recover no-fault benefits for medical services. This matter was assigned Case Number 21-014505-NF and assigned to the same judge (“the instant action”).3 Flint Region and MCN moved to intervene in the instant action, contending they were owed payment by Allstate for medical services provided to Polk. The trial court granted the motion and ordered that the filing of an intervening complaint include “all pertinent records, bills, and their Initial Disclosures.” Flint Region and MCN4 filed their complaint against Allstate, alleging breach of contract and seeking declaratory relief for payment of no-fault benefits totaling $475,000 plus interest. Allstate answered and filed affirmative defenses.

1 Polk assigned her right to payment of these services to Prism. Allstate did not pay for the services. 2 Polk’s claims as to the city of Detroit and Turner were dismissed without prejudice by stipulation. 3 Prism’s claims against Allstate were dismissed without prejudice. 4 MCN’s claims against Allstate were dismissed with prejudice.

-2- Allstate moved to consolidate the underlying action and the instant action. The trial court initially made the underlying action the controlling case and dismissed the instant action. However, the trial court later reinstated the instant action, consolidated it with the underlying action, dismissed the underlying action without prejudice, and named the instant action the controlling case. On February 28, 2022, Flint Region and MCN completed initial disclosures.5 On September 15, 2022, Flint Region and MCN completed supplementary initial disclosures.6 On September 16, 2022, Allstate filed five motions for summary disposition, two of which are relevant to this appeal. Allstate moved for partial summary disposition under MCR 2.116(C)(10) as to Polk’s claims for expenses for her lumbar spinal fusion performed on March 24, 2021, asserting there was no causation between the surgery and the accident (“the causation motion”). This motion implicated Flint Region, which sought payment of no-fault benefits from Allstate. Allstate also moved for partial summary disposition under MCR 2.116(C)(10) as to Flint Region’s claims for medical expenses incurred from treating Polk (“the surgery bill motion”).7

Relevant to this appeal, Allstate moved to compel Flint Region and MCN to file initial disclosures under MCR 2.302(A)(1) on October 4, 2022, contending that neither party provided evidence to substantiate their claims for incurred medical expenses.8 At the motion hearing, Allstate’s counsel noted that the trial court ordered Flint Region to file “supplemental disclosure[s],” but Flint Region did not, despite requesting “like $600,000.” The trial court granted the motion, ordered Flint Region and MCN to “provide supplemental initial disclosures within fourteen (14) days,” and reopened discovery.

The trial court entered a scheduling order regarding Allstate’s motions for summary disposition, requiring: (1) responses to be filed on or before November 18, 2022, and (2) reply briefs to be filed on or before November 23, 2022. The trial court stated: “Failure to file a timely response may be considered consent to the relief requested.” Allstate also moved to compel Flint Region and MCN to file “more specific disclosures” because they “disclosed only [Polk] and [the surgeon]” and did not disclose “any biller” to “justify an amount of $473,899.76 for a single surgery.” Attached to Allstate’s motion was a copy of the supplementary initial disclosures.9

The trial court held a hearing regarding Allstate’s discovery motion. Counsel for Allstate stated that Flint Region’s “bill is like [$420,000] something” but Flint Region “did not disclose . . .

5 The lower court record included a proof of service for this document. 6 The lower court record included a proof of service for this document. 7 In the same motion, Allstate moved for partial summary disposition under MCR 2.116(C)(10) and (C)(5) as to Polk’s claims for expenses from C-Spine Orthopedics. These parties and claims are not relevant to the issues on appeal. 8 Exhibit E to Allstate’s Motion to Compel was a September 23, 2022 trial court order stating, in relevant part, “parties shall provide supplemental initial disclosures on or before [September 16, 2022].” 9 The supplementary initial disclosures were not filed separately in the lower court file. However, a proof of service was filed on September 15, 2022.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Douglas v. Allstate Insurance Company
821 N.W.2d 472 (Michigan Supreme Court, 2012)
O’neal v. St John Hospital & Medical Center
791 N.W.2d 853 (Michigan Supreme Court, 2010)
Nasser v. Auto Club Ins. Ass'n
457 N.W.2d 637 (Michigan Supreme Court, 1990)
Quinto v. Cross and Peters Co.
547 N.W.2d 314 (Michigan Supreme Court, 1996)
Sherman v. Sea Ray Boats, Inc
649 N.W.2d 783 (Michigan Court of Appeals, 2002)
Kemerko Clawson, LLC v. RXIV Inc.
711 N.W.2d 801 (Michigan Court of Appeals, 2006)
Hanks v. Slb Management, Inc
471 N.W.2d 621 (Michigan Court of Appeals, 1991)
Vicencio v. Ramirez
536 N.W.2d 280 (Michigan Court of Appeals, 1995)
Tamara Woodring v. Phoenix Insurance Company
923 N.W.2d 607 (Michigan Court of Appeals, 2018)
Auto-Owners Insurance Company v. Compass Healthcare Plc
928 N.W.2d 726 (Michigan Court of Appeals, 2018)
Taxpayers Allied for Constitutional Taxation v. Wayne County
537 N.W.2d 596 (Michigan Supreme Court, 1995)
Nelson v. Detroit Automobile Inter-Insurance Exchange
359 N.W.2d 536 (Michigan Court of Appeals, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
Prism Lab LLC v. Allstate Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prism-lab-llc-v-allstate-insurance-company-michctapp-2025.