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Medical provider's PIP claim is dismissed because insured's claim resulted in previous ruling of "full payment."

State Farm was sued by Michigan Head & Spine Institute after it provided more than $25,000.00 in care to a State Farm insured, Ashford Garley.  Garley had previously sued for PIP benefits in his own right.  A jury concluded that he had suffered an accident-related injury, but also held that no medical expenses were owed.  The MH & S records had been submitted in Garley's case, but the bills had not.  The trial judge concluded that Garley and MH & S were "in privity" such that it and Garley were obligated to join all of their claims in a single action--and that as a result the provider was bound by the verdict in Garley's case. 

The higher court affirmed the trial judge and dismissed the provider's lawsuit.  Since the provider had standing to intervene in Garley's lawsuit but did not, it could not claim prejudice resulting from the fact that it's rights were foreclosed in an action where it had not been a party.

Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
Toll Free: 1-800-678-1307
Fax: 231-929-7262