When one party sues another, sometimes there may be other parties that also want to be part of the lawsuit. There are specific laws that govern who may do so and when a party can join into a lawsuit. The Eastern District of Michigan District Court recently heard a case that illustrates this concept and gives an example of when it may apply.
No-Fault Personal Injury Protection
Michigan is a “no-fault” state. That means insurance policies will pay insured individuals after a car accident no matter who was at fault. In this case, a driver had personal injury protection benefits through a commercial insurer. Personal injury protection is meant to pay for injuries suffered by the driver after a car accident. The plaintiff was later in a car accident where he was injured. As part of treating his injuries, he saw physicians at a Michigan medical provider. Instead of paying the healthcare provider directly, the plaintiff assigned his right to collect on the bills to the healthcare provider. Now, the injured driver is suing his insurance company to collect the benefits he is owed. Thus, the healthcare provider filed a motion to join the lawsuit against the insurer to collect on the money they are owed for the healthcare services.
The trial court dismissed the healthcare provider’s action under recently decided Michigan case law that held that healthcare providers do not have their own cause of action against insurance companies for personal injury protection payments. Further, the court held that under the insurance policy itself, the consent of the defendant is necessary in order for the collection rights to be assigned.