Order Michigan Supreme Court 

Lansing, Michigan 

May 16, 2008 Clifford W. Taylor,

 Chief Justice 

133466 & (70)(71) Michael F. Cavanagh 

133468 Elizabeth A. Weaver 

Marilyn Kelly 

Maura D. Corrigan 

UNITED STATES FIDELITY INSURANCE & Robert P. Young, Jr. 

Stephen J. Markman, GUARANTY COMPANY, Justices Plaintiff-Appellee, 

v SC: 133466 

 COA: 260604 

Oakland CC: 2003-051485-CK 

MICHIGAN CATASTROPHIC CLAIMS 

ASSOCIATION,

Defendant-Appellant, 

and 

MICHAEL MIGDAL, Individually and as 

Conservator for the Estate of DANIEL MIGDAL,

a Protected Person,

 Defendant. 

_________________________________________/ 

HARTFORD INSURANCE COMPANY OF THE
 MIDWEST, 

Plaintiff-Appellee, 

v SC: 133468 

 COA: 271199 

Oakland CC: 2006-071933-CK 

MICHIGAN CATASTROPHIC CLAIMS 

ASSOCIATION,

Defendant-Appellant. 

_________________________________________/ 

On order of the Court, the applications for leave to appeal the February 6, 2007 

judgment of the Court of Appeals are considered, and they are GRANTED. The parties 

shall include among the issues to be briefed whether MCL 500.3104(2) obligates the 

Michigan Catastrophic Claims Association (“MCCA”) to reimburse member insurers’ 

reimbursement claims without regard to the reasonableness of the member’s payments to 

PIP claimants. In addressing this issue, the parties shall consider: 
 _________________________________________ 

 

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(1) Whether factors to consider in determining whether the MCCA is precluded 

from questioning the reasonableness of the reimbursement claims in these cases include 

the MCCA’s failure to exercise to their full extent, before entry of the consent judgment 

in No. 133466 and the settlement agreement in No. 133468, its powers under MCL 

500.3104(7)(b) and (g) to: 

(a) require notice of claims likely to involve the MCCA; 

(b) require notice of subsequent developments likely to materially affect the 

MCCA’s interests; 

(c) establish claims procedures and practices for MCCA members; and, 

(d) if the MCCA considers a member’s claims procedures and practices 

inadequate, to undertake to adjust or assist in adjusting the claim, at the member’s 

expense, so as to ensure that member claims submitted to the MCCA for reimbursement 

are, in fact, reasonable; and 

(2) Whether, like the terms of declaratory judgments pertaining to PIP benefits 

payable in the future, the terms of consent judgments and settlement agreements 

pertaining to PIP benefits that embody terms that prove over time to call for 

reimbursement at a rate higher than the actual cost incurred are subject to: 

(a) reduction based on the requirement that an expense must be actually incurred 

before a no fault insurer is obliged to pay it; and 

(b) redetermination from time to time of the amounts properly allowable, based on 

a change in facts or circumstances after entry of the consent judgment or settlement 

agreement. Cf. Manley v DAIIE, 425 Mich 140, 157 (1986); Proudfoot v State Farm Mut 

Ins Co, 469 Mich 476, 483-484 (2003). 

The motions for leave to file briefs amicus curiae are GRANTED. The 

Commissioner of Insurance, Michigan Defense Trial Counsel, Inc., and the Michigan 

Association for Justice are invited to file briefs amicus curiae. Other persons or groups 

interested in the determination of the issues presented in this case may move the Court 

for permission to file briefs amicus curiae. 

p0513 

I, Corbin R. Davis, Clerk of the Michigan Supreme Court, certify that the 

foregoing is a true and complete copy of the order entered at the direction of the Court. 

May 16, 2008 

Clerk