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No. 134393, 134406
| William Miller, |
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Plaintiff-Appellee, |
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| v |
(Appeal from Ct of Appeals) |
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(Wayne - Breck, D.) |
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| Allstate Insurance Company, |
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David B. Landry |
Defendant-Cross-Defendant-Appellant, |
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Michelle E. Mathieu |
| and |
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| PT Works, Inc., |
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Cross-Plaintiff-Appellee. |
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| ------------------------------------------------------------------ |
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| William Miller, |
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Plaintiff-Appellee, |
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| v |
(Appeal from Ct of Appeals) |
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(Wayne - Breck, D.) |
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| Allstate Insurance Company, |
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Defendant-Cross-Defendant-Appellee, |
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| and |
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| PT Works, Inc., |
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Barry A. Steinway |
Cross-Plaintiff-Appellant. |
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| __________________________________________ |
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Click to view briefs in Adobe format:
134393 - Defendant-Cross-Defendant-Appellant's Brief on Appeal>>
134406 - Defendant-Cross-Defendant-Appellee's Brief on Appeal>>
134406 - Cross-Plaintiff-Appellant's Brief on Appeal>>
American Institute of Architects Michigan, American Council of Engineering Companies of Michigan, and Michigan Society of Professional Engineers' Amici Curiae Brief>>
Attorney General of the state of Michigan's Amicus Curiae Brief>>
Insurance Institute of Michigan's Amicus Curiae Brief>>
International Association of Special Investigation Units, The Michigan Chapter of the International Association of Special Investigation Units, and Property Casualty Insurers Association of America's Amici Curiae Brief>>
Michigan Physical Therapy Association's Amicus Curiae Brief>>
Preferred Medicine, Inc., Joanna Rohl, and Fatmeh Chehab's Amici Curiae Brief>>
State Bar of Michigan Business Law Section's Amicus Curiae Brief>>
State Bar of Michigan Health Care Law Section's Amicus Curiae Brief>>
Background
William Miller was insured by Allstate Insurance under a no-fault automobile insurance policy. After he was injured in automobile accidents, Miller was referred to PT Works for physical therapy. PT Works billed Allstate $29,150 for these services, but Allstate refused to pay. Allstate argued that PT Works is unlawfully engaged in the corporate practice of medicine because it is incorporated under the Business Corporations Act instead of the Professional Services Corporation Act (PSCA), and because PT Works’ shareholders are not licensed therapists as required by the PSCA, although PT Works employs licensed therapists. Miller sued Allstate for no-fault benefits, then assigned his claim to PT Works which, in turn, sued Allstate. Allstate moved to dismiss the case. Because a no-fault carrier is obligated to pay only for “lawful” medical treatment, Allstate argued that it was not required to pay PT Works for its services to Miller. But the trial court denied Allstate’s motion, ruling that physical therapy services are not “professional services” as defined in the PSCA. As a result, the company was properly incorporated under the Business Corporations Act, the trial court concluded. The Court of Appeals affirmed the lower court ruling on alternate grounds in two published opinions. The appeals court concluded that PT Works was required to be incorporated under the PSCA because physical therapists are required to be licensed under the public health code, and the PSCA defines “professional services” to include any person who is required to be licensed. But the Court of Appeals also concluded that Miller’s physical therapy treatment was not “unlawful” under the no-fault act because the therapy itself was performed by a duly licensed physical therapist employed by PT Works. The court found that the essence of lawful treatment is whether the person providing the treatment is licensed, and “treatment itself has nothing to do with corporate formation issues.” Both Allstate and PT Works appeal to the Supreme Court.
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