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157951 - Jawad A Shah, MD, PC v State Farm Mut Auto Ins Co

Jawad A. Shah, MD, PC, Integrated Hospital Specialists, PC, Insight Anesthesia, PLLC, and Sterling Anesthesia, PLLC,


Jonathan Green





(Appeal from Ct of Appeals)



(Genesee – Fullerton, J.)


State Farm Mutual Automobile Insurance Company,


Paul Hudson





Plaintiffs provided healthcare services to a patient (George Hensley) who was insured under a no-fault policy with defendant insurer.  Plaintiffs sued defendant for personal protection insurance (PIP) benefits under the no-fault act, but defendant filed a motion for summary disposition based on Covenant Medical Center, Inc v State Farm Mutual Auto Ins Co, 500 Mich 191 (2017).  Plaintiffs responded that Hensley had assigned to them the right to recover PIP benefits from defendant, but defendant countered that an anti-assignment clause in its no-fault policy precluded Hensley from assigning his rights under the policy without defendant’s approval.  The trial court granted defendant’s motion for summary disposition.  The Court of Appeals reversed in a published opinion, holding that the anti-assignment clause is unenforceable under Roger Williams Ins Co v Carrington, 43 Mich 252 (1880).  The Supreme Court has ordered oral argument on defendant’s application for leave to appeal to address whether the anti-assignment clause precluded Hensley from assigning his right to recover PIP benefits to plaintiffs.  This case will be argued at the same session as WA Foote Memorial Hospital v Mich Assigned Claims Plan, No. 156622.​