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Michigan Supreme Court considers limiting No-Fault insurance attorney fees

No-Fault lawyer says it would be tougher to help those with small cases, predicts insurance companies will save millions

Michigan Lawyers Weekly covers the possible devastating effect of a Michigan Supreme Court amendment to the Michigan Court Rules, that would limit No-Fault attorney contingency fees. This amendment would affect all car accident injury victims in Michigan.

Michigan Auto Law weighs in: “It would make it impossible for insured people, medical providers or hospitals who have been improperly denied payment by no-fault insurers to bring suit against the insurers in the vast majority of instances,” he said.

“Most improper denials are for relatively small sums, probably under $7,500, and the penalty attorney fees allowed by [No-Fault Act] Section 3148 make it possible to hire an attorney to force the insurers to properly pay those smaller claims. If the proposed rule overrides the Statute, then the insurers get a free pass on the smaller claims. No attorney can afford to handle lawsuits for one-third of $7,500.”

Read the full Michigan Lawyers Weekly story here: Michigan Supreme Court considers limiting No-Fault attorney fees

November 1, 2010

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This entry was tagged: attorney fees , Michigan Supreme Court
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