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156622 - WA Foote Memorial Hosp v Assigned Claims Plan

W A Foote Memorial Hospital, d/b/a Allegiance Health,


Joseph Gavin





(Appeal from Ct of Appeals)



(Kent – Johnston, D.)


Michigan Assigned Claims Plan and Michigan Automobile Insurance Placement Facility,


Lori McAllister







John Doe Insurance Company,




In Covenant Medical Center, Inc v State Farm Mutual Auto Ins Co, 500 Mich 191 (2017), the Supreme Court held that a healthcare provider has no cause of action under the no-fault act against a no-fault insurer for recovery of personal protection insurance (PIP) benefits, thereby overruling inconsistent Court of Appeals caselaw.  The issue in this case is whether Covenant applies retroactively to cases pending on direct review when it was issued.  The Court of Appeals, in a published opinion, held that Covenant applies retroactively to this case and affirmed the trial court’s grant of summary disposition in favor of defendants, albeit for different reasons than those stated by the trial court.  The Court of Appeals held that Spectrum Health Hospitals v Farm Bureau Mutual Ins Co of Mich, 492 Mich 503 (2012), “effectively repudiated” application of the “threshold question” and the “three-factor test” that were addressed in Pohutski v City of Allen Park, 465 Mich 675, 696 (2002).  The Supreme Court has ordered oral argument on plaintiff’s application for leave to appeal to address: (1) whether Covenant should be applied to this case; (2) whether the Court of Appeals correctly concluded that Pohutski has been “effectively repudiated” in the context of judicial decisions involving statutory interpretation, see Spectrum Health Hospitals v Farm Bureau Mutual Ins Co of Mich, 492 Mich 503 (2012); Wayne County v Hathcock, 471 Mich 445, 484 n 98 (2004); and Devillers v Auto Club Ins Ass’n, 473 Mich 562, 587 n 57 (2005); and (3) if Pohutski has not been effectively repudiated, whether the Pohutski framework should have been applied in Spectrum.  This case will be argued at the same session as Jawad A Shah, MD, PC v State Farm Mutual Auto Ins Co, No. 157951.​