Legal Challenge to No-Fault Law -Update

September 28, 2018.

A lawsuit challenging the constitutionality of Michigan’s No Fault statute, brought by Mayor Duggan and eight other Michigan residents, was filed in the Eastern District of Michigan Federal Court on August 23, 2018. The lawsuit names Patrick McPharlin, head of the State’s Department of Insurance and Financial Services, as the Defendant. The Department of Insurance and Financial Services oversees the State’s insurance system.


Plaintiffs seek to have the Michigan No-Fault Insurance Act declared unconstitutional under the U.S. and Michigan Constitutions, and asks the Court to give the State 6 months to fix the issues with the current law or return to a system used by the majority of states. An order was entered granting the State until Monday, October 1, 2018 to respond to the lawsuit. How the State chooses to respond to the lawsuit will determine the next phase of the litigation.

 


- Lawrence Garcia

Corporation Counsel for the City of Detroit