Opinion ID: 1985364
Heading Depth: 3
Heading Rank: 2

Heading: Auto-Owners Insurance Co v. Perry

Text: Michael Campbell died on October 3, 1991, as a result of injuries suffered in an automobile accident. Decedent's ex-wife, Betty Perry, filed a claim with Auto-Owners Insurance Company for survivors' loss benefits for her's and Mr. Campbell's three children. Mr. Campbell's survivors were also paid social security survivors' loss benefits. Pursuant to M.C.L. § 500.3108; MSA 24.13108, [3] Auto-Owners paid the survivors' loss benefits to Mr. Campbell's surviving children. After Auto-Owners had begun making payments, it informed the claimants that setoff adjustments might be necessary, considering the receipt of duplicate payments of survivors' loss benefits from the Social Security Administration. [4] This Court released Profit on September 29, 1993. The opinion reversed the Court of Appeals decision that had prompted Auto-Owners to refrain from setting off the social security benefits. We held that social security survivors' benefits are to be subtracted from no-fault benefits payable for an automobile injury. Auto-Owners requested that Ms. Perry reimburse it for the overpayment, and, when Ms. Perry failed to reimburse, Auto-Owners filed the present lawsuit. Auto-Owners subsequently moved for summary disposition. When the trial court denied the motion, Auto-Owners appealed. The Court of Appeals reversed the judgment of the trial court and held that Auto-Owners was entitled to set off the amount of social security survivor payments from the amount Auto-Owners had paid defendant in survivors' loss benefits. It also held that Auto-Owners was entitled to full reimbursement of the amount that was overpaid to the survivors. [5] Defendant, Ms. Perry, argues that this Court's decision in Profit announced a new rule or decided an issue of first impression and, therefore, should not be applied retroactively. Additionally, Ms. Perry argues that Auto-Owners brought its complaint under the sole theory of mistake and that both the trial court and the Court of Appeals found that Auto-Owners had not met its burden of proof under a theory of mistake. Therefore, Ms. Perry contends that the Court of Appeals erroneously granted Auto-Owners relief. We combine these cases to determine if our decision in Profit should be applied retroactively so that plaintiff insurance companies in the present cases can obtain reimbursement for the amounts they overpaid in no-fault personal protection insurance benefits because they did not subtract social security benefit payments from the amount paid in no-fault personal protection insurance benefits.