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Court holds no fault insurer doesn't owe fees after late payment of wage loss

The Court of Appeals in Ademi v. State Farm, et al., held that a plaintiff could not collect attorneys fees after winning a survivor's loss PIP claim.   The plaintiff's husband died in a Texas truck accident.  He was a resident of Michigan, insured in Michigan.  Three insurers disputed which of them should be the priority insurer for the incident, however, ultimately two agreed that PIP benefits were owed and paid the widow.  Her attorneys sought attorneys fees for the several year delay in payment, arguing that the defendants were unreasonable in delaying payment while they contested priority.  The Court of Appeals ruled that no fees were payable because there were flaws in the widow's wage loss documentation that justified the insurer's delay.  The Court did not explain why the widow's submission did not warrant at least some payment during the interim.

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