The MBL Appeals team obtained a key clarification from the Michigan Supreme Court this past week in C Spine v Progressive. The No-Fault industry closely watched this matter to see how the Court would handle claims from medical providers who sell or finance their medical debt while still pursuing litigation in Michigan.
Previously, the Michigan Court of Appeals had ruled these providers — even after selling their claims to medical financers and retaining no interest in the bills — could still bring suit as a “real party in interest.”
MBL Partner Kaitlyn Cramer handled the appeal to the Michigan Supreme Court, arguing before the Court that this ruling ignored several key No-Fault doctrines, most notably, the “One Year Back” Rule.
While the Supreme Court agreed with the Court of Appeals that the providers can still bring suit, they adopted Cramer’s rationale that any attempt to amend a provider’s Complaint to reflect this “ownership change” of the medical debt should still be accompanied by a corresponding revocation or rescission of the assignment, and that the trial court must review those filings to ensure compliance with the “One Year Back” rule. The case was therefore remanded to the trial court for further proceedings.
The Opinion is linked here: https://www.courts.michigan.
Dated: July 16, 2025
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