At-fault drivers face increased liability in small claims court for damages not covered by the other driver’s no-fault insurance policy.
The no-fault act’s so-called mini-tort limit will increase from $500 to $1,000 under PA 158 of 2012, MCL 500. 3135(3)(e), signed into law yesterday by Gov. Rick Snyder.
The law also provides that mini-tort damages cannot be assessed if the damaged vehicle was being operated without the required insurance coverage.
Under MCL 500.3135(4), in a mini-tort action for damages:
(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 is not a component of residual liability, as prescribed in section 3131, for which maintenance of security is required by this act.
(c) The action 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.
(d) A decision of the court is not res judicata in any proceeding to determine any other liability arising from the same circumstances that gave rise to the action.
(e) Damages shall not be assessed if the damaged motor vehicle was being operated at the time of the damage without the security required by section 3101.
The Michigan Lawyer 