Case Name: SMITH v. LLOYD
Court: Michigan Court of Appeals
Jurisdiction: Michigan
Decision Date: 1974-11-25
Citations: 56 Mich. App. 576
Docket Number: Docket No. 16873
Parties: SMITH v LLOYD
Judges: Before: Bronson, P. J., and V. J. Brennan and Van Valkenburg, JJ.
Reporter: Michigan appeals reports; cases decided in the Michigan Court of Appeals.
Volume: 56
Pages: 576–580

Head Matter:
SMITH v LLOYD
Opinion of the Court
1. Administrative Law — Accident Claims Fund — Competing Claims — Setoff.
The Motor Vehicle Accident Claims Fund Act does not grant the power of setoff to the Secretary of State, nor can the Secretary of State compel judicial setoff of competing claims.
Concurrence by V. J. Brennan, J.
2. Administrative Law — Accident Claims Fund — Competing Claims — Setoff.
The Secretary of State has no power to unilaterally set off competing judgments even though, as director of the Motor Vehicle Accident Claims Fund, he has wide discretion in handling the defense of cases against uninsured motorists and can compel setoff of competing judgments in certain situations.
Reference for Points in Headnotes
[I, 2] 7 Am Jur 2d, Automobiles and Highway Traffic §§ 301, 302.
Appeal from Wayne, Charles S. Farmer, J.
Submitted Division 1 June 6, 1974, at Detroit.
(Docket No. 16873.)
Decided November 25, 1974.
Complaint by Hugh Smith, Helen Smith, Gene Bartley, and Carrie Bartley against Wilfred Lloyd for damages resulting from an automobile accident. Judgment for plaintiffs with a proviso for setoff against one of plaintiffs for his indebtedness to the Accident Claims Fund. Plaintiffs appeal.
Reversed and remanded for entry of judgment without the setoff.
Barbara & Wisok, P. C, for plaintiffs.
Frank J. Kelley, Attorney General, Robert A. Derengoski, Solicitor General, Joseph B. Bilitzke and Carl K. Carlsen, Assistants Attorney General, for the Motor Vehicle Accident Claims Fund.
Before: Bronson, P. J., and V. J. Brennan and Van Valkenburg, JJ.
Former circuit judge, sitting on the Court of Appeals by assignment pursuant to Const Í963, art 6, § 23 as amended in 1968.

Opinion:
Van Valkenburg, J.
Plaintiffs' motion to compel payment from the Motor Vehicle Accident Claims Fund was denied. The amount of the settlement reached in the present action was set off against the amount owing from plaintiff Hugh Smith to the Motor Vehicle Accident Claims Fund pursuant to a stipulated judgment in another case. Plaintiffs appeal.
The Motor Vehicle Accident Claims Fund Act does not grant the power of setoff to the Secretary of State nor can the Secretary compel judicial setoff of competing claims. Castro v Goemaere, 53 Mich App 78; 218 NW2d 395 (1974).
Reversed and remanded with instructions to enter judgment without the setoff. Costs to the plaintiffs.
Bronson, P. J., concurred.