Kirksey v. Manitoba Public Insurance
191 Mich.App. 12, 477 N.W.2d 442 (1991)
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Rule of Law:
Under Michigan's no-fault act, work-loss benefits are calculated based on the income an injured person proves they would have earned had the accident not occurred, which may include prospective higher earnings from a different job, not just the income earned at the time of injury.
Facts:
- From 1977 to 1986, Arnold Kirksey was a truck driver for Motorways Direct.
- In 1985, Motorways' business slowed, forcing it to reduce employee hours.
- Motorways laid Kirksey off from January to June 1986.
- During the layoff, from May 15 to June 20, 1986, Kirksey worked for another trucking company run by Marion White.
- White was pleased with Kirksey's performance and offered him continuous, full-time employment at any time.
- Kirksey returned to Motorways when recalled, seeking full-time hours and benefits, but knew he could go back to work for White if necessary.
- Upon his return to Motorways, Kirksey's hours were sporadic for nine weeks.
- On August 26, 1986, Kirksey fell from a truck while working for Motorways and sustained a severe back injury.
Procedural Posture:
- Arnold Kirksey (plaintiff) filed a lawsuit against Manitoba Public Insurance Corporation (defendant) in a Michigan district court to recover no-fault work-loss benefits.
- A jury in the district court returned a verdict in favor of Kirksey, which was revised to total $13,632.
- Manitoba Public Insurance Corporation (appellant) appealed the judgment to the circuit court.
- The circuit court reversed the district court's jury verdict, finding in favor of the defendant insurance company.
- Kirksey (appellant) then appealed the circuit court's reversal to the Michigan Court of Appeals.
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Issue:
Does § 3107(b) of the Michigan no-fault act permit an injured person to recover work-loss benefits based on a higher income they can prove they would have earned in the future, rather than the income they were earning at the exact time of the accident?
Opinions:
Majority - Marilyn Kelly, P.J.
Yes. Section 3107(b) of the Michigan no-fault act permits an injured person to recover work-loss benefits based on income they would have earned in the future. The court reasoned that the plain language of § 3107(b) defines work loss as 'loss of income from work an injured person would have performed ... if he had not been injured,' which is inherently forward-looking. Nothing in the statute limits the calculation to the person's earnings at the moment the injury occurred. The court found that if an injured person can 'show convincingly' that they would have changed jobs and earned a higher income, they are entitled to benefits reflecting that increased amount. Here, Kirksey provided sufficient evidence beyond a 'bare assertion'; his claim was corroborated by the testimony of his prospective employer, Marion White, who confirmed a standing job offer for steady work. The circuit court erred by focusing on § 3107a (temporary unemployment), as the case was tried and argued to the jury under the broader 'would have performed' standard of § 3107(b).
Analysis:
This decision clarifies that work-loss benefits under Michigan's no-fault act are not static and limited to the claimant's earnings at the time of injury. It establishes a forward-looking standard that allows for the recovery of prospective earnings, provided the claimant can meet a heightened evidentiary burden. The ruling empowers plaintiffs to argue for benefits based on promotions, new job offers, or career changes they would have made but for the injury. However, by requiring more than a 'bare assertion' and emphasizing the need for corroborating evidence, the court also sets a practical limit on purely speculative claims, thereby balancing the remedial purpose of the act with the need for reliable proof.
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