HOUSE BILL No. 4329

 

February 18, 2009, Introduced by Reps. Melton, Knollenberg and Lahti and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3135 (MCL 500.3135), as amended by 2002 PA 697.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3135. (1) A person remains subject to tort liability for

 

noneconomic loss caused by his or her ownership, maintenance, or

 

use of a motor vehicle only if the injured person has suffered

 

death, serious impairment of body function, or permanent serious

 

disfigurement.

 

     (2) For a cause of action for damages pursuant to subsection

 

(1) filed on or after July 26, 1996, all of the following apply:

 

     (a) The issues of whether an injured person has suffered

 

serious impairment of body function or permanent serious

 

disfigurement are questions of law for the court if the court finds


 

either of the following:

 

     (i) There is no factual dispute concerning the nature and

 

extent of the person's injuries.

 

     (ii) There is a factual dispute concerning the nature and

 

extent of the person's injuries, but the dispute is not material to

 

the determination as to whether the person has suffered a serious

 

impairment of body function or permanent serious disfigurement.

 

However, for a closed-head injury, a question of fact for the jury

 

is created if a licensed allopathic or osteopathic physician who

 

regularly diagnoses or treats closed-head injuries testifies under

 

oath that there may be a serious neurological injury.

 

     (b) Damages shall be assessed on the basis of comparative

 

fault, except that damages shall not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (c) Damages shall not be assessed in favor of a party who was

 

operating his or her own vehicle at the time the injury occurred

 

and did not have in effect for that motor vehicle the security

 

required by section 3101 at the time the injury occurred.

 

     (3) Notwithstanding any other provision of law, tort liability

 

arising from the ownership, maintenance, or use within this state

 

of a motor vehicle with respect to which the security required by

 

section 3101 was in effect is abolished except as to:

 

     (a) Intentionally caused harm to persons or property. Even

 

though a person knows that harm to persons or property is

 

substantially certain to be caused by his or her act or omission,

 

the person does not cause or suffer that harm intentionally if he

 

or she acts or refrains from acting for the purpose of averting


 

injury to any person, including himself or herself, or for the

 

purpose of averting damage to tangible property.

 

     (b) Damages for noneconomic loss as provided and limited in

 

subsections (1) and (2).

 

     (c) Damages for allowable expenses, work loss, and survivor's

 

loss as defined in sections 3107 to 3110 in excess of the daily,

 

monthly, and 3-year limitations contained in those sections. The

 

party liable for damages is entitled to an exemption reducing his

 

or her liability by the amount of taxes that would have been

 

payable on account of income the injured person would have received

 

if he or she had not been injured.

 

     (d) Damages for economic loss by a nonresident in excess of

 

the personal protection insurance benefits provided under section

 

3163(4). Damages under this subdivision are not recoverable to the

 

extent that benefits covering the same loss are available from

 

other sources, regardless of the nature or number of benefit

 

sources available and regardless of the nature or form of the

 

benefits.

 

     (e) Damages up to $500.00 $1,000.00 to motor vehicles, to the

 

extent that the damages are not covered by insurance. An action for

 

damages pursuant to this subdivision shall be conducted in

 

compliance with subsection (4).

 

     (4) In an action for damages pursuant to subsection (3)(e):

 

     (a) Damages shall be assessed on the basis of comparative

 

fault, except that damages shall not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (b) Liability shall not be a component of residual liability,


 

as prescribed in section 3131, for which maintenance of security is

 

required by this act.

 

     (5) Actions under subsection (3)(e) shall be commenced,

 

whenever legally possible, in the small claims division of the

 

district court or the municipal court. If the defendant or

 

plaintiff removes the action to a higher court and does not

 

prevail, the judge may assess costs.

 

     (6) A decision of a court made pursuant to subsection (3)(e)

 

is not res judicata in any proceeding to determine any other

 

liability arising from the same circumstances as gave rise to the

 

action brought pursuant to subsection (3)(e).

 

     (7) As used in this section, "serious impairment of body

 

function" means an objectively manifested impairment of an

 

important body function that affects the person's general ability

 

to lead his or her normal life.