On August 1, 2010, the Michigan Supreme Court overturned the six-year-old Kreiner vs. Fisher decision by a 4-3 vote. Kreiner, as you may recall from the June, 2010, issue of Insurance & Services Checkup, placed strict limitations on non-economic (pain and suffering) damages for people injured in automobile accidents. 

Michigan’s no-fault law provides unlimited, lifetime medical and rehabilitation benefits. In exchange for these generous benefits, restrictions on lawsuits attempting to recover non-economic (pain and suffering) damages were enacted. With Kreiner overturned, these restrictions are largely removed. Now, plaintiffs will simply need to prove that their ability to lead a “normal life” for any period of time due to their injury was affected, not destroyed.    This new standard will be far more quickly and easily cleared by juries for Plaintiffs than those created under Kreiner. 

Proponents of this decision maintain the new ruling will restore victim’s rights and eliminate the court-imposed hurdles created under Kreiner. Some have even predicted that insurance companies, no longer able to rely on favorable court rulings, will be forced to settle auto injury claims more fairly and quickly.  

Opponents, on the other hand, warn of a flood of new litigation and higher auto insurance premiums for Michigan drivers.   Trial lawyers, they contend, will be the biggest winners of all.

Unfortunately, only time will tell which camp is correct.