Timmie Dewight Collins Jr v. Vincent Michael Nizzi

CourtMichigan Court of Appeals
DecidedJanuary 20, 2022
Docket354510
StatusUnpublished

This text of Timmie Dewight Collins Jr v. Vincent Michael Nizzi (Timmie Dewight Collins Jr v. Vincent Michael Nizzi) 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
Timmie Dewight Collins Jr v. Vincent Michael Nizzi, (Mich. Ct. App. 2022).

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

TIMMIE DEWIGHT COLLINS, JR., UNPUBLISHED January 20, 2022 Plaintiff-Appellant,

v Nos. 354510; 354871 Grand Traverse Circuit Court VINCENT MICHAEL NIZZI and MICHAEL LC No. 2019-035000-NI ANTHONY NIZZI,

Defendants,

and

AUTO-OWNERS INSURANCE COMPANY,

Defendant-Appellee.

Before: SAWYER, P.J., and SERVITTO and RICK, JJ.

PER CURIAM.

In Docket No. 354510, plaintiff appeals as of right the trial court’s entry of judgment in favor of plaintiff, following a jury trial, on whether plaintiff was entitled to additional personal injury protection (PIP) benefits under Michigan’s no-fault statute, MCL 500.3101 et seq. The judgment awarded plaintiff $366.67 for medical mileage. The jury found that plaintiff was not entitled to additional PIP benefits for replacement services and wage loss. In Docket No. 354871, plaintiff appeals as of right the trial court’s denial of plaintiff’s motion for costs and no-fault attorney fees. We affirm the jury’s verdicts and the trial court’s denial of attorney fees, but vacate the trial court’s denial of court costs and remand for further proceedings.

On May 17, 2018, plaintiff Timmie Collins, Jr., was involved in a car accident in which his car was struck from behind by a vehicle owned by defendant Michael Nizzi and driven by defendant Vincent Nizzi. Plaintiff maintained that he sustained injuries and was entitled to PIP benefits from his insurer, defendant Auto-Owners Insurance Company, which initially paid benefits, but then stopped. Plaintiff’s complaint included claims against the Nizzi defendants for negligence, and a claim against Auto-Owners for recovery of first-party PIP benefits. Plaintiff

-1- settled his claims against the Nizzi defendants and the case proceeded to trial on plaintiff’s claim against Auto-Owners.

A jury found that plaintiff sustained an accidental bodily injury arising from the May 2018 auto accident, and incurred allowable expenses arising from his injury, but did not incur any allowable expenses that had not already been paid by Auto-Owners. In particular, the jury found that plaintiff did not incur additional replacement services or work loss arising out of the accidental bodily injury. However, the jury found that Auto-Owners failed to reimburse plaintiff for 668 miles, and that this amount was overdue. Consistent with the jury’s verdict, the trial court entered a judgment awarding plaintiff $366.67 for medical mileage, inclusive of interest. The trial court subsequently denied plaintiff’s motion for no-fault attorney fees. The court also denied plaintiff’s motion for recovery of costs on the basis of its conclusion that plaintiff was not the prevailing party entitled to costs.

I. RECOVERY OF NO-FAULT ATTORNEY FEES

Plaintiff first argues that the trial court erred by denying his motion for recovery of no-fault attorney fees pursuant to MCL 500.3148(1). Plaintiff notes that the jury found that he was entitled to $313.96, plus interest, and that this amount was overdue. Plaintiff argues that he is entitled to no-fault attorney fees because Auto-Owners did not present any evidence to rebut the presumption that its failure to pay this amount was unreasonable. We disagree.

In Ross v Auto Club Group, 481 Mich 1, 7; 748 NW2d 552 (2008), this Court explained:

The no-fault act provides for attorney fees when an insurance carrier unreasonably withholds benefits. The trial court’s decision about whether the insurer acted reasonably involves a mixed question of law and fact. 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. [Citations omitted.]

“A finding is clearly erroneous where this Court is left with the definite and firm conviction that a mistake has been made.” Adanalic v Harco Nat’l Ins Co, 309 Mich App 173, 194-195; 870 NW2d 731 (2015) (citation omitted).

The trial court did not err by determining that plaintiff was not entitled to no-fault attorney fees even though the jury found that payment for mileage was overdue.

MCL 500.3148(1) provides:

An attorney is entitled to a reasonable fee for advising and representing a claimant in an action for personal or property protection insurance benefits which are overdue. The attorney’s fee shall be a charge against the insurer in addition to the benefits recovered, if the court finds that the insurer unreasonably refused to pay the claim or unreasonably delayed in making proper payment.

Our Supreme Court has held that MCL 500.3148(1) establishes two prerequisites for an award of attorney fees. First, the benefits must not have been “paid within 30 days after an insurer

-2- receives reasonable proof of the fact and of the amount of loss sustained.” Moore v Secura Ins, 482 Mich 507, 517; 759 NW2d 833 (2008). Second, the trial court must determine if the insurer “unreasonably refused to pay the claim or unreasonably delayed in making proper payment.” Id. “[A]n insurer’s refusal to pay benefits is not unreasonable [i]f the insurer’s refusal or delay in payment is the product of a legitimate question of statutory construction, constitutional law, or a bona fide factual uncertainty.” Id. at 520 (quotation marks and citation omitted); see also Gobler v Auto-Owners Ins Co, 428 Mich 51, 66; 404 NW2d 199 (1987). Thus, attorney fees are not warranted when the benefits “were reasonably in dispute, or, stated slightly differently, benefits [were] not yet overdue.” Moore, 482 Mich at 519. When an insurance company refuses to tender payment of benefits, a rebuttable presumption will arise that requires the insurance company to justify its refusal. Slocum v Farm Bureau Gen Ins Co of Mich, 328 Mich App 626, 643; 939 NW2d 717 (2019). The determinative inquiry “is not whether the insurer is ultimately held responsible for benefits, but whether its initial refusal to pay was unreasonable. Ross, 481 Mich at 11.

According to plaintiff, the jury’s finding that the mileage benefit was overdue necessarily meant that the initial refusal to pay was unreasonable.1 We disagree. A finding that a benefit is owing and overdue does not require a trial court to find that the initial failure to pay was unreasonable. Id. The trial court found that Auto-Owners’ initial decision to refuse to pay mileage was not unreasonable. The court focused on the total amount sought, and the relatively small award for mileage, and found that the failure to pay was an oversight that was not significant.

Plaintiff submitted his request for reimbursement of his medical mileage at some point after October 2, 2019, and Auto-Owners’ claims adjuster, Amanda Service, sent plaintiff a letter on October 18, 2019, denying payment. Therefore, the reasonableness of Auto-Owners’ denial is properly reviewed as of the date of Service’s response, or October 18, 2019. At that point, Auto- Owners had already suspended payment on all of plaintiff’s claims for no-fault benefits while the claim was under investigation. Contrary to plaintiff’s argument on appeal, the decision to put plaintiff’s claim under investigation was reasonable under the circumstances.

At trial, conflicting evidence was presented about the continued severity of plaintiff’s injuries and recommended courses of treatment. Several physicians indicated that some of plaintiff’s ailments were degenerative in nature, that plaintiff’s injuries were not that severe, that they consisted only of “soft tissue” injuries, and that they should have resolved within six months after the accident.

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Timmie Dewight Collins Jr v. Vincent Michael Nizzi, Counsel Stack Legal Research, https://law.counselstack.com/opinion/timmie-dewight-collins-jr-v-vincent-michael-nizzi-michctapp-2022.