SENATE BILL No. 1429

 

 

September 28, 2004, Introduced by Senators CROPSEY, BISHOP, SCHAUER, EMERSON, BERNERO and BRATER and referred to the Committee on Government Operations.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending section 3135 (MCL 500.3135), as amended by 2002 PA              

                                                                                

    697.                                                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3135.  (1) A person remains subject to tort liability                  

                                                                                

2   for noneconomic loss caused by his or her ownership, maintenance,           

                                                                                

3   or use of a motor vehicle only if the injured person has suffered           

                                                                                

4   death, serious impairment of body function, or permanent serious            

                                                                                

5   disfigurement.                                                              

                                                                                

6       (2) For a cause of action for damages pursuant to                           

                                                                                

7   subsection (1) filed on or after July 26, 1996, all of the                  

                                                                                

8   following apply:                                                            

                                                                                

9       (a) The issues of whether an injured person has suffered                    

                                                                                

10  serious impairment of body function or permanent serious                    

                                                                                


                                                                                

1   disfigurement are questions of law for the court if the court               

                                                                                

2   finds either of the following:                                              

                                                                                

3                                                                                (i) There is no factual dispute concerning the nature and                           

                                                                                

4   extent of the person's injuries.                                            

                                                                                

5       (ii) There is a factual dispute concerning the nature and                    

                                                                                

6   extent of the person's injuries, but the dispute is not material            

                                                                                

7   to the determination as to whether the person has suffered a                

                                                                                

8   serious impairment of body function or permanent serious                    

                                                                                

9   disfigurement.  However, for a closed-head injury, a question of            

                                                                                

10  fact for the jury is created if a licensed allopathic or                    

                                                                                

11  osteopathic physician who regularly diagnoses or treats                     

                                                                                

12  closed-head injuries testifies under oath that there may be a               

                                                                                

13  serious neurological injury.                                                

                                                                                

14      (b) Damages shall be assessed on the basis of comparative                   

                                                                                

15  fault, except that damages shall not be assessed in favor of a              

                                                                                

16  party who is more than 50% at fault.                                        

                                                                                

17      (c) Damages shall not be assessed in favor of a party who was               

                                                                                

18  operating his or her own vehicle at the time the injury occurred            

                                                                                

19  and did not have in effect for that motor vehicle the security              

                                                                                

20  required by section 3101 at the time the injury occurred.                   

                                                                                

21      (3) Notwithstanding any other provision of law, tort                        

                                                                                

22  liability arising from the ownership, maintenance, or use within            

                                                                                

23  this state of a motor vehicle with respect to which the security            

                                                                                

24  required by section 3101 was in effect is abolished except as               

                                                                                

25  to:                                                                         

                                                                                

26      (a) Intentionally caused harm to persons or property.  Even                 

                                                                                

27  though a person knows that harm to persons or property is                   


                                                                                

1   substantially certain to be caused by his or her act or omission,           

                                                                                

2   the person does not cause or suffer that harm intentionally if he           

                                                                                

3   or she acts or refrains from acting for the purpose of averting             

                                                                                

4   injury to any person, including himself or herself, or for the              

                                                                                

5   purpose of averting damage to tangible property.                            

                                                                                

6       (b) Damages for noneconomic loss as provided and limited in                 

                                                                                

7   subsections (1) and (2).                                                    

                                                                                

8       (c) Damages for allowable expenses, work loss, and survivor's               

                                                                                

9   loss as defined in sections 3107 to 3110 in excess of the daily,            

                                                                                

10  monthly, and 3-year limitations contained in those sections.  The           

                                                                                

11  party liable for damages is entitled to an exemption reducing his           

                                                                                

12  or her liability by the amount of taxes that would have been                

                                                                                

13  payable on account of income the injured person would have                  

                                                                                

14  received if he or she had not been injured.                                 

                                                                                

15      (d) Damages for economic loss by a nonresident in excess of                 

                                                                                

16  the personal protection insurance benefits provided under                   

                                                                                

17  section 3163(4).  Damages under this subdivision are not                    

                                                                                

18  recoverable to the extent that benefits covering the same loss              

                                                                                

19  are available from other sources, regardless of the nature or               

                                                                                

20  number of benefit sources available and regardless of the nature            

                                                                                

21  or form of the benefits.                                                    

                                                                                

22      (e) Damages up to $500.00 to motor vehicles, to the extent                  

                                                                                

23  that the damages are not covered by insurance.  An action for               

                                                                                

24  damages pursuant to this subdivision shall be conducted in                  

                                                                                

25  compliance with subsection (4).                                             

                                                                                

26      (4) In an action for damages pursuant to subsection (3)(e):                 

                                                                                

27      (a) Damages shall be assessed on the basis of comparative                   


                                                                                

1   fault, except that damages shall not be assessed in favor of a              

                                                                                

2   party who is more than 50% at fault.                                        

                                                                                

3       (b) Liability shall not be a component of residual liability,               

                                                                                

4   as prescribed in section 3131, for which maintenance of security            

                                                                                

5   is required by this act.                                                    

                                                                                

6       (5) Actions under subsection (3)(e) shall be commenced,                     

                                                                                

7   whenever legally possible, in the small claims division of the              

                                                                                

8   district court or the municipal court.  If the defendant or                 

                                                                                

9   plaintiff removes the action to a higher court and does not                 

                                                                                

10  prevail, the judge may assess costs.                                        

                                                                                

11      (6) A decision of a court made pursuant to subsection (3)(e)                

                                                                                

12  is not res judicata in any proceeding to determine any other                

                                                                                

13  liability arising from the same circumstances as gave rise to the           

                                                                                

14  action brought pursuant to subsection (3)(e).                               

                                                                                

15      (7) As used in this section, "serious impairment of body                    

                                                                                

16  function" means an objectively manifested impairment of an                  

                                                                                

17  important body function that  affects the person's general                  

                                                                                

18  ability to lead his or her normal life  affected the person's               

                                                                                

19  normal life in a manner, and for a time, that was not clearly               

                                                                                

20  minorThe changes made by the amendatory act that added this              

                                                                                

21  sentence apply to any case pending on, or filed on or after, July           

                                                                                

22  22, 2004.                                                                   

                                                                                

23      Enacting section 1.  This amendatory act is curative and                    

                                                                                

24  intended to correct any misinterpretation of existing law and               

                                                                                

25  legislative intent in the Michigan supreme court decision in                

                                                                                

26  Kreiner v Fischer and Straub v Collette and Heil-Wylie, ____ Mich           

                                                                                

27  ____ (2004); 683 NW2d 611.