Source: http://az.findacase.com/research/wfrmDocViewer.aspx/xq/fac.20140630_0002294.DAZ.htm/qx
Timestamp: 2017-11-18 04:42:49
Document Index: 472826100

Matched Legal Cases: ['§ 636', '§ 636', '§ 500', '§ 6', '§ 145', '§ 6', '§ 145', '§ 6', '§ 145', '§ 145', '§ 146', '§ 6']

This Court "may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate." 28 U.S.C. § 636(b)(1). Pursuant to 28 U.S.C. § 636(b)(1), if a party makes a timely objection to a magistrate judge's recommendation, then this Court is required to "make a de novo determination of those portions of the [report and recommendation] to which objection is made." See also Schmidt v. Johnstone, 263 F.Supp.2d 1219, 1226 (D.Ariz. 2003) (reading the Ninth Circuit's decision in Reyna-Tapia as adopting the view that district courts are not required to review "any issue that is not the subject of an objection"); United States v. Reyna-Tapia, 328 F.3d 1114 (9th Cir.2003) (disregarding the standard of review employed by the district court when reviewing a report and recommendation to which no objections were made).
Defendant's Motion addresses several subjects. Defendant argues that Michigan law applies to Plaintiff's breach of contract and bad faith claims. Applying Michigan law, Plaintiff's claims for benefits are subject to Michigan's statutory one year back rule, which limits contract and tort claims for personal injury protection ("PIP") benefits from one year prior to the date on which the action is commenced. MCL § 500.3145(1).
Further, Michigan law does not recognize the tort of bad faith and as such, Plaintiff's claims for bad faith are barred. See Roberts v. Auto-Owners Ins. Co., 422 Mich. 594, 604, 374 N.W.2d. 905, 909 (Mich. 1985) (citation omitted). Compare Zilisch v. State Farm Mutual Auto. Inc. Co., 196 Ariz. 234, 237, 995 P.2d. 276, 279 (Ariz. 2000); Rawlings v. Apodaca, 151 Ariz. 149, 160, 726 P.2d. 565, 576 (1986) (Arizona law does allow a bad faith tort action). In the alternative, Defendant argues that even if the Court were to apply Arizona law to Plaintiff's bad faith claim, any claims that occurred before April 13, 2010 are barred by Arizona's two-year statute of limitations.
Choice of Law - Plaintiff's Breach of Contract Claim
One Year Limitations - Plaintiff's Breach of Contract Claim
Choice of Law - Plaintiff's Bad Faith Claim
Federal courts sitting in diversity must apply the forum state's choice of law rules. Love v. Associated Newspapers, Ltd., 611 F.3d 601, 610 (9th Cir. 2010). "Arizona courts apply the principles of the Restatement (Second) of Conflict of Laws (1971) ("Restatement") to determine the controlling law for multistate torts." Bates v. Superior Court of State of Ariz. In and For the County of Maricopa, 156 Ariz. 46, 48, 749 P.2d. 1367, 1369 (Ariz. 1988); Pounders v. Enserch E&C, Inc., 232 Ariz. 352, 354, 306 P.3d. 9, 11 (Ariz. 2013).
"Restatement § 6(2) lists the general factors relevant to choosing the applicable rule of law and § 145 gives further guidance for the application of the § 6 factors to tort issues." Bates, 156 Ariz. at 48-49, 749 P.2d. at 1369-70. Pursuant to § 145, in resolving multistate tort issues, the courts must apply the law of the state which "has the most significant relationship to the occurrence and the parties under the principles stated in § 6." Restatement (Second) Conflict of Laws § 145(1); Bates, 156 Ariz. at 48-49, 749 P.2d. at 1369-70.
In order to perform this analysis in accordance with Arizona law, this Court first considers the general tort choice of law principles of Restatement § 145 as well as the specific personal injury principles of Restatement § 146. See Bates, 156 Ariz. at 49, 749 P.2d. at 1370 (finding that pursuant to Arizona law, a bad faith refusal to provide benefits to an insured can create sufficient mental distress to qualify as a personal injury). Then, the Court applies the guidelines of both of those sections to the general principles listed in Restatement § 6(2). Lange v. Penn Mut. Life Ins. Co., 843 F.2d 1175, 1178-1179 (9th Cir. 1988) (citing Bates, 156 Ariz. at 48-50, 749 P.2d. at 1369-71).
The "place of injury" is where "the last event necessary for liability occurred (that is, the place where the injury manifested)." Pounders, 232 Ariz.at 356, 306 P.3d. at 13. The last event necessary for liability can only occur in one location, which "preserves the Restatement goals of certainty, predictability, and uniformity of result." Id.
Plaintiff moved to Tucson, Arizona in December 1996. Id. at 7. After moving to Tucson, Plaintiff was initially assisted by his girlfriend. Id. at 19-20. Defendant paid her for her services including shopping and transferring Plaintiff to and from his wheelchair. Id. at 20. Plaintiff's girlfriend moved in 1997 and Plaintiff subsequently experienced significant problems handling daily personal activities. Id. at 19-20. Plaintiff contacted Defendant and advised them that he needed help with "everything." Id. at 21. He gave examples of shopping and cleaning and was advised that these services were not covered. Id. As a result, Plaintiff believed that all services other than medical bills were no longer covered. Id. In the fall of 2011, Plaintiff met Andy Zimmer in Las Vegas. Id. at 18. Mr. Zimmer was receiving PIP benefits from a Michigan no fault insurance policy and he advised Plaintiff on the actual extent of his coverage. Id.
While Plaintiff may allege that Defendant failed to provide him with his full panoply of benefits originating from his time in Michigan, he did not begin to suffer mental and physical distress as a result of Defendant's alleged bad faith in the handling of his claim until after his girlfriend moved and Defendant allegedly provided him with misleading information regarding his benefits. These acts ...