Our lawyers who specialize in Michigan No-Fault Insurance cases recently settled a very important lawsuit against AAA of Michigan Insurance. The lawsuit alleged that the insurance company was underpaying the victim for attendant care services at the rate of $12.00/hour, which was much too low for the necessary level of supervision. The lawsuit also alleged that the AAA Insurance adjuster committed fraud when she told the accident victim’s mother that she could not leave her job to care for her injured daughter.
The medical evidence and testimony clearly demonstrated the need for 24 hour attendant care for the daughter. Additionally, the rate of $12.00/hour was not reasonable in light of the care provided and the prevailing attendant care rates (link to article on attendant care rates) for such services in the area. Plaintiff’s expert witness was set to testify that the rate should be substantially higher and that the rate being paid by the insurance company fell well below community rates.
The matter was set for jury trial but settled just prior to the trial. The insurance company agreed to pay $18.00 per hour of attendant care for three years and an agreement that the rate for non-agency or family provided attendant care would never drop below that rate. The rate can be renegotiated after 3 years that is to a higher rate based upon economic conditions at the time. Additionally, the insurance company agreed to make a settlement payment of $175,000.00 representing past attendant care.