Antoine Lee sued Farmers Insurance Exchange for PIP benefits. Lee did not have any car or no fault coverage, so Farmers was assigned to pay his PIP benefits under Michigan's Assigned Claims Plan. Farmers argued that it was not required to re-pay benefits that duplicated the payments made by Medicare on Lee's behalf. The lower courts rejected this argument, correctly pointing out that Medicare is NEVER the primary insurer for auto injuries if there is legally-applicable PIP coverage. The Court of Appeals also awarded attorneys' fees, holding that Farmers position was "unreasonable."
The Michigan Supreme Court overturned this decision this month, sending the case back to the lower court to reexamine the attorney fee holding. It did not address the Medicare payment issue, leaving that aspect of the Court of Appeals' decision intact, yet it offered no explanation for remanding on the issue of fees.