Gongwer News Service
A plaintiff in a lawsuit can cure real party in interest defects after it files litigation, the Michigan Supreme Court ruled last Thursday.
Justices were split 4-1 in C-Spine Orthopedics, PLLC v Progressive Michigan Insurance Company (MSC Docket Nos. 165537-8), which involved two different auto no fault disputes.
In both, the plaintiffs assigned away their claim for personal injury protection benefit collection. In one case, it was the medical provider. In the other, it was the driver who carried the insurance policy.
The real party in interest defects are not always fatal to a lawsuit, Justice Elizabeth Welch wrote in the majority opinion, signed by Justice Kyra Harris Bolden, Justice Richard Bernstein and Chief Justice Megan Cavanagh.
“The plaintiff may fix such a problem by joining or substituting the proper party, amending their complaint, seeking and obtaining the equitable remedy of rescission, or taking other actions during litigation to cure a real party in interest defect,” the opinion says. “A plaintiff seeking PIP benefits who cures a real party in interest defect is still subject to the one-year-back rule.”
Justice Brian Zahra dissented, writing that he does not think the real party interest claims can be cured after litigation has been filed.
Justice Kimberly Thomas and Justice Noah Hood did not participate in the case.
A plaintiff in a lawsuit can cure real party in interest defects after it files litigation, the Michigan Supreme Court ruled last Thursday.
Justices were split 4-1 in C-Spine Orthopedics, PLLC v Progressive Michigan Insurance Company (MSC Docket Nos. 165537-8), which involved two different auto no fault disputes.
In both, the plaintiffs assigned away their claim for personal injury protection benefit collection. In one case, it was the medical provider. In the other, it was the driver who carried the insurance policy.
The real party in interest defects are not always fatal to a lawsuit, Justice Elizabeth Welch wrote in the majority opinion, signed by Justice Kyra Harris Bolden, Justice Richard Bernstein and Chief Justice Megan Cavanagh.
“The plaintiff may fix such a problem by joining or substituting the proper party, amending their complaint, seeking and obtaining the equitable remedy of rescission, or taking other actions during litigation to cure a real party in interest defect,” the opinion says. “A plaintiff seeking PIP benefits who cures a real party in interest defect is still subject to the one-year-back rule.”
Justice Brian Zahra dissented, writing that he does not think the real party interest claims can be cured after litigation has been filed.
Justice Kimberly Thomas and Justice Noah Hood did not participate in the case.
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