Court ruling sets precedent for Michigan PIP claims
Michigan’s Court of Appeals ruled on Oct. 22 that Farmers Insurance Exchange can recover over $1 million from Hudson Insurance Company in a personal protection insurance dispute. The decision establishes that insurers assigned claims through the Michigan Automobile Insurance Placement Facility possess independent reimbursement rights separate from injured parties’ recovery options.
The case stems from a 2016 accident involving Syrja Lekli, who drove a leased Peterbilt truck for B&W Cartage Company. Farmers paid $967,521 in benefits through the placement facility after Great American’s policy exclusion applied and sought total reimbursement of $1,089,319 from Hudson. The appellate court rejected Hudson’s arguments that prior rulings and legal doctrines prevented Farmers from collecting payment.
The ruling clarifies that assigned insurers maintain statutory reimbursement authority under Michigan law regardless of whether injured parties could have recovered directly from higher-priority insurers. The decision affects how Michigan insurance companies process priority claims and reimbursement requests under the state’s protection system.
