THE INSURANCE CODE OF 1956
Act 218 of 1956
500.3148 Attorney's fee; restrictions.
Sec. 3148.
(1) Subject to subsections (4) and (5), an attorney is entitled to a reasonable fee for advising and representing a claimant in an action for personal or property protection insurance benefits that are overdue. The attorney's fee is a charge against the insurer in addition to the benefits recovered, if the court finds that the insurer unreasonably refused to pay the claim or unreasonably delayed in making proper payment. An attorney advising or representing an injured person concerning a claim for payment of personal protection insurance benefits from an insurer shall not claim, file, or serve a lien for payment of a fee or fees until both of the following apply:
(a) A payment for the claim is authorized under this chapter.
(b) A payment for the claim is overdue under this chapter.
(2) A court may award an insurer a reasonable amount against a claimant as an attorney fee for the insurer's attorney in defending against a claim that was in some respect fraudulent or so excessive as to have no reasonable foundation. A court may award an insurer a reasonable amount against a claimant's attorney as an attorney fee for defending against a claim for which the client was solicited by the attorney in violation of the laws of this state or the Michigan rules of professional conduct.
(3) To the extent that personal or property protection insurance benefits are then due or thereafter come due to the claimant because of loss resulting from the injury on which the claim is based, an attorney fee awarded in favor of the insurer may be taken as an offset against the benefits. Judgment may also be entered against the claimant for any amount of an attorney fee awarded that is not offset against benefits or otherwise paid.
(4) For a dispute over payment for allowable expenses under section 3107(1)(a) for attendant care or nursing services, attorney fees must not be awarded in relation to future payments ordered more than 3 years after the trial court judgment or order is entered. If attendant care or nursing services are subsequently suspended or terminated, attorney fees on future payments may be again awarded for not more than 3 years after a new trial court judgment or order is entered.
(5) A court shall not award a fee to an attorney for advising or representing an injured person in an action for personal or property protection insurance benefits for a treatment, product, service, rehabilitative occupational training, or accommodation provided to the injured person if the attorney or a related person of the attorney has, or had at the time the treatment, product, service, rehabilitative occupational training, or accommodation was provided, a direct or indirect financial interest in the person that provided the treatment, product, service, rehabilitative occupational training, or accommodation. For purposes of this subsection, circumstances in which an attorney has a direct or indirect financial interest include, but are not limited to, the person that provided the treatment, product, service, rehabilitative occupational training, or accommodation making a direct or indirect payment or granting a financial incentive to the attorney or a related person of the attorney relating to the treatment, product, service, rehabilitative occupational training, or accommodation within 24 months before or after the treatment, product, service, rehabilitative occupational training, or accommodation is provided.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
PopularName Notes:
Act 218
PopularName Notes:
Essential Insurance
PopularName Notes:
No-Fault Insurance
Notes of Decisions
Cited in
334
cases (
82 in the last 5 years), 1977–2026 · leading case:
Moore v. Secura Ins., 759 N.W.2d 833 (Mich. 2008).
Moore v. Secura Ins., 759 N.W.2d 833 (Mich. 2008).
· cites it 85× “3142 and MCL 500.3148, we reverse. Because the jury awarded plaintiff only $98.”
Ivezaj v. Auto Club Ins., 737 N.W.2d 807 (Mich. Ct. App. 2007).
· cites it 32× “33 in attorney fees pursuant to MCL 500.3148(1). After adjusting plaintiffs $121,000 verdict by adding the $40,333.”
Beach v. State Farm Mut. Auto. Ins., 550 N.W.2d 580 (Mich. Ct. App. 1996).
· cites it 25× “§ 500.3148(1); M.S.A. § 24.13148(1), even though the court believed that defendant's refusal to pay was unreasonable.”
Bonkowski v. Allstate Ins., 761 N.W.2d 784 (Mich. Ct. App. 2008).
· cites it 17× “5 hours at $500 an hour) pursuant to MCL 500.3148, and $525,126.35 in statutory interest pursuant to MCL 600.”
Univ. Rehab. All., Inc. v. Farm Bureau Gen. Ins., 760 N.W.2d 574 (Mich. Ct. App. 2008).
· cites it 24× “[MCL 500.3148(1).] An insurer's delay in making payments under the no-fault act is not unreasonable if it is based on a legitimate question of statutory construction, constitutional law, or factual uncertainty.”
Bronson Methodist Hosp. v. Auto-Owners Ins., 295 Mich. App. 431 (Mich. Ct. App. 2012).
· cites it 8× “Plaintiff cross-appeals that portion of the trial court’s order denying its motion for attorney fees under MCL 500.3148. We consolidated the appeals and affirm in part, reverse in part, and remand.”
Ross v. Auto Club Grp., 748 N.W.2d 552 (Mich. 2008).
· cites it 8× “The court also awarded attorney fees under MCL 500.3148(1), the no-fault act's attorney-fee provision.”
Augustine v. Allstate Ins., 807 N.W.2d 77 (Mich. Ct. App. 2011).
· cites it 7× “Plaintiff subsequently sought attorney fees pursuant to MCL 500.3148(1) due to defendant’s “unreasonable delay” in making benefit payments.”
Borgess Med. Ctr. v. Resto, 730 N.W.2d 738 (Mich. Ct. App. 2007).
· cites it 28× “3142 and attorney fees under MCL 500.3148. Defendant filed its answer on September 3, 2004, neither admitting nor denying most of plaintiff's allegations, professing a lack of present knowledge.”
Moore v. Secura Ins., 741 N.W.2d 38 (Mich. Ct. App. 2007).
· cites it 32× “[1] A jury awarded plaintiff $50,000 in noneconomic damages on the uninsured motorist claim, and $42,755 for unpaid wage loss for the PIP claim.”
Brown v. Home-Owners Ins., 828 N.W.2d 400 (Mich. Ct. App. 2012).
· cites it 8× “3142 and MCL 500.3148.” In response, defendant argued that a legitimate question of statutory interpretation existed and that, therefore, attorney fees should not be awarded to plaintiff.”
— Mich. Comp. Laws § 500.3148(1) — 232 cases
Moore v. Secura Ins., 759 N.W.2d 833 (Mich. 2008).
“3142 and MCL 500.3148, we reverse. Because the jury awarded plaintiff only $98.”
Ivezaj v. Auto Club Ins., 737 N.W.2d 807 (Mich. Ct. App. 2007).
“33 in attorney fees pursuant to MCL 500.3148(1). After adjusting plaintiffs $121,000 verdict by adding the $40,333.”
Univ. Rehab. All., Inc. v. Farm Bureau Gen. Ins., 760 N.W.2d 574 (Mich. Ct. App. 2008).
“[MCL 500.3148(1).] An insurer's delay in making payments under the no-fault act is not unreasonable if it is based on a legitimate question of statutory construction, constitutional law, or factual uncertainty.”
Beach v. State Farm Mut. Auto. Ins., 550 N.W.2d 580 (Mich. Ct. App. 1996).
“§ 500.3148(1); M.S.A. § 24.13148(1), even though the court believed that defendant's refusal to pay was unreasonable.”
Ross v. Auto Club Grp., 748 N.W.2d 552 (Mich. 2008).
“The court also awarded attorney fees under MCL 500.3148(1), the no-fault act's attorney-fee provision.”
— Mich. Comp. Laws § 500.3148(2) — 46 cases
Beach v. State Farm Mut. Auto. Ins., 550 N.W.2d 580 (Mich. Ct. App. 1996).
“§ 500.3148(1); M.S.A. § 24.13148(1), even though the court believed that defendant's refusal to pay was unreasonable.”
— Mich. Comp. Laws § 500.3148(4) — 2 cases
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