State Farm avoids payment of $1.5 million dollars in "late" PIP expenses
Jelinda Burnette-Lipow was catastrophically injured in a car accident. State Farm owed her complete medical coverage. Unfortunately, her family and the Michigan Department of Community Health did not sue State Farm within one year of incurring the bulk of her expenses. Apparently the family did not consult an attorney and were unaware that the Republicans on the Michigan Supreme Court had changed the rules regarding whether a mentally incapacitated person would be allowed additional time beyond the "one-year back" rule in which to sue.
By the time the family and MDoC had filed suit, more than a year had passed since some $1.5 million dollars in expenses had been incurred. The Court of Appeals held that it was bound by the Republican majority's latest decision regarding "tolling" (extension of the statute of limitations where a child or mentally incompetent person has a claim). On the basis of that [4-3] decision of the high court, the Court of Appeals held that the Department of Corrections could not recover approximately $800,000.00 in services that it provided to Burnette-Liptow, and which were originally the obligation of State Farm.