HOUSE BILL No. 5109

 

 

October 12, 2017, Introduced by Reps. Wittenberg, Marino, Lasinski, Chirkun, LaGrand, Moss, Brinks, Camilleri, Chang, Ellison, Green, Sabo, Liberati, Sowerby, Sneller, Pagan, Faris, Byrd, Hammoud, Scott, Geiss, Greimel, Rabhi, Robinson, Hertel, Zemke, Gay-Dagnogo and Jones and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3135 (MCL 500.3135), as amended by 2012 PA 158.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3135. (1) A person remains subject to tort liability for

 

noneconomic loss caused by his or her ownership, maintenance, or

 

use of a motor vehicle only if the injured person has suffered

 

death, serious impairment of body function, or permanent serious

 

disfigurement.

 

     (2) For a cause of action for damages pursuant to subsection

 

(1), filed on or after July 26, 1996, all of the following apply:

 

     (a) The issues of whether the injured person has suffered

 

serious impairment of body function or permanent serious

 

disfigurement are questions of law for the court fact if the court


finds either of the following:

 

     (i) There is no factual dispute concerning the nature and

 

extent of the person's injuries.

 

     (ii) There is a factual dispute concerning the nature and

 

extent of the person's injuries, but the dispute is not material to

 

the determination that there is no genuine issue of material fact

 

and no reasonable minds could differ regarding whether the injured

 

person has suffered a serious impairment of body function or

 

permanent serious disfigurement. However, for These questions are

 

fact-specific and must be determined on a case-by-case basis. For a

 

closed-head injury, a question of fact for the jury is created if a

 

licensed allopathic or osteopathic physician who regularly

 

diagnoses or treats closed-head injuries testifies under oath that

 

there may be a serious neurological injury.

 

     (b) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (c) Damages shall must not be assessed in favor of a party who

 

was operating his or her own vehicle at the time the injury

 

occurred and did not have in effect for that motor vehicle the

 

security required by section 3101 at the time the injury occurred.

 

     (d) The issue of whether the injured person has sustained a

 

serious impairment of bodily function is fact-specific and must be

 

determined on a case-by-case basis.

 

     (3) Notwithstanding any other provision of law, tort liability

 

arising from the ownership, maintenance, or use within this state

 

of a motor vehicle with respect to which the security required by


section 3101 was in effect is abolished except as to:

 

     (a) Intentionally caused harm to persons or property. Even

 

though a person knows that harm to persons or property is

 

substantially certain to be caused by his or her act or omission,

 

the person does not cause or suffer that harm intentionally if he

 

or she acts or refrains from acting for the purpose of averting

 

injury to any person, including himself or herself, or for the

 

purpose of averting damage to tangible property.

 

     (b) Damages for noneconomic loss as provided and limited in

 

subsections (1) and (2).

 

     (c) Damages for allowable expenses, work loss, and survivor's

 

loss, as defined in and replacement services under sections 3107 to

 

3110 in excess of the daily, monthly, and 3-year limitations

 

contained in those sections. The party liable for damages is

 

entitled to an exemption reducing his or her liability by the

 

amount of taxes that would have been payable on account of income

 

the injured person would have received if he or she had not been

 

injured.

 

     (d) Damages for economic loss by a nonresident in excess of

 

the personal protection insurance benefits provided under section

 

3163(4). Damages under this subdivision are not recoverable to the

 

extent that benefits covering the same loss are available from

 

other sources, regardless of the nature or number of benefit

 

sources available and regardless of the nature or form of the

 

benefits.

 

     (e) Damages up to $1,000.00 to a motor vehicle, to the extent

 

that the damages are not covered by insurance. An action for


damages under this subdivision shall must be conducted as provided

 

in subsection (4).

 

     (4) All of the following apply to an action for damages under

 

subsection (3)(e):

 

     (a) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (b) Liability is not a component of residual liability, as

 

prescribed in section 3131, for which maintenance of security is

 

required by this act.

 

     (c) The action shall must be commenced, whenever legally

 

possible, in the small claims division of the district court or the

 

municipal court. If the defendant or plaintiff removes the action

 

to a higher court and does not prevail, the judge may assess costs.

 

     (d) A decision of the court is not res judicata in any

 

proceeding to determine any other liability arising from the same

 

circumstances that gave rise to the action.

 

     (e) Damages shall must not be assessed if the damaged motor

 

vehicle was being operated at the time of the damage without the

 

security required by section 3101.

 

     (5) As used in this section, "serious impairment of body

 

function" means an impairment that satisfies all of the following

 

requirements:

 

     (a) It is objectively manifested, meaning it is observable or

 

perceivable from actual symptoms or conditions.

 

     (b) It is an impairment of an important body function, that

 

which is a body function of value, significance, or consequence to


the injured person.

 

     (c) It affects the injured person's general ability to lead

 

his or her normal life, meaning it has an influence on some of the

 

injured person's capacity to live in his or her normal manner of

 

living. There is no quantitative minimum as to the percentage of a

 

person's normal manner of living that must be affected, nor is

 

there an express temporal requirement as to how long an impairment

 

must last in order to have an effect on the person's general

 

ability to lead his or her normal life. However, temporal

 

considerations are not irrelevant.