No-fault reform battle reaches court

As the no-fault auto insurance reform nears a year old, survivors of catastrophic auto accidents are turning to the courts.

Last Thursday, Washtenaw County Judge Archie Brown ruled in favor of Stephen Gedda, a survivor who requires 24/7 care after a 2011 crash left him on a ventilator and paralyzed.

State Farm cut Gedda’s medical payment in September as a result of legislated changes to no-fault auto insurance coverage in Michigan.

As a part of that reform to lower car insurance rates, the Michigan State Legislature enacted a law in July 2021 that slashed the pay of medical providers by 45 percent.

In his ruling, Judge Brown said that law is “unconstitutional” and required State Farm to pay the market rate for Gedda’s at-home medical aid. A State Farm source told FOX-2 of Detroit that it is reviewing its appeal options.

A dozen similar cases across the state have challenged the retroactivity of the no-fault reform, Attorney Wayne Miller of Miller & Tischler, P.C. said. Miller has represented two clients himself in Genesee and Kent counties. He argued that people who were receiving full care before July 2021 should continue receiving full care.

Miller estimated that 60 percent of judges have ruled in favor of the auto accident survivors.

But the decisions, such as the one in Washtenaw County, have taken place at the trial court level, meaning they are not binding in other courts; they set no precedent.

Only one lawsuit, the Andary case, has reached the Michigan Court of Appeals.

“The court ruling from Judge Brown is insightful and it’s great to hear a judge being so forthright about the impact of the law,” Michigan Brain Injury Provider Council President Tom Judd said. “...The problem is, it’s at a trial level, which means that that judge’s ruling really only applies to that one case. So it can’t be applied all across the place.”

Lawmakers argued the no-fault reform would lower car insurance rates – the highest in the country – and provide people in Michigan with more insurance options. Before the reform, residents were automatically registered into a lifetime unlimited coverage plan.

Lawmakers also have touted the $400 refund checks provided to auto insurance owners as a result of the reform. The money was taken from the Michigan Catastrophic Claims Association multibillion-dollar fund that had been used to care for auto accident survivors.

But, as a result of the reform, since July nearly 100 medical care companies have gone out of business, forcing 1,568 people to lose their full care, according to the Michigan Brain Injury Provider Council.

Many have had to be moved into large nursing homes, where individual caregivers must work with nearly 10 to 12 people, Judd said.

Miller called it, quite simply, “a catastrophe.”

“Who on this planet could afford a 45-percent discount or decrease in their pay?” Miller asked. “… Unless they’re somebody like Dan Gilbert or Elon Musk, it’s devastating. It’s obviously devastating.

“It’s ridiculous public policy, “

In September, The Reminder highlighted the story of the Hastings Charter Township resident in need of 24/7 at-home medical attention, Jesus Arias, whose family wrestled with the nightmare of losing his caregivers.

In October and November, The Banner tracked the journey of Troy Hughes, a Middleville resident injured in a motorcycle accident, who was forced to move into a nursing center after his home of 13 years, Spectrum Neuro Rehabilitation, designed specifically for people with brain injuries, shut down.

“I just, I don’t understand why it’s so easy to take it away, but nobody can make it the other way – nobody can fix it,” said Teresa Hughes, the mother of Troy.

But recent court cases have offered a possible solution – and a way for people to fight.

Some decisions in these proceedings allow survivors to receive their full care again and, in the future, these rulings could lead to changes in the law.

“There’s going to be more of [the court cases] and (that stream will be) steady,” Miller said. “People need to do something because we’re desperate. People need their care. And we rely on our courts to protect the rights of catastrophically injured people from the devastation of this new law.”

This may be their only hope.

On March 16, Republican State House Speaker Jason Wentworth, R-Clare, squashed some hope when he said he did not foresee the law changing.

“I’ve spent an entire year looking at every idea that was proposed and working with our committee on options,” he said in a statement. “They all either move us back toward the old status quo or put the savings and refund checks for Michigan drivers at risk. At this point, it’s time to move on.”

Even with the hope offered by these cases, there are still drawbacks with the courts,

Judd said. For starters, it costs money to bring a lawsuit. With lengthy appeals, it also takes time.

“We’re talking about years before any legal decision is final,” Judd said.

Despite Wentworth’s comments, Judd said he still believes the most direct route to action will happen through the Legislature. He called it a “legislative-caused problem” and one that “requires legislative action.”

“We know that there are members within his caucus, the Republican Caucus, we know there are members within the Legislature that are not moving on, that are going to continue to fight and advocate for this,” Judd said.

“But what we need is our legislators to stand up to their leadership and say, ‘No, it is not time to move on. We need to fix this – and we need to fix it quickly.’ ”