Retroactive Application of Covenant May Be Revisited

In Covenant Medical Center, Inc v State Farm Mut Auto Ins Co, 500 Mich 191 (2017), the Michigan Supreme Court held that the No-Fault Act (as it read from 1973-2019) did not confer providers with standing to file their own suits against no-fault carriers.

Therefore, providers who sued before June 11, 2019 (when MCL 500.3112 was amended to confer standing on providers) without assignments, based solely on the No-Fault Act itself, do not have standing.

In W A Foote Memorial Hospital v Michigan Assigned Claims Plan, 504 Mich 985 (2019), the Court held that Covenant Medical Center, Inc v State Farm Mut Auto Ins Co, 500 Mich 191 (2017) applies retroactively to all pending cases.

However, an Order entered by the Supreme Court this week in VHS Huron Valley Sinai Hosp v Sentinel Ins Co, ___ NW2d ___ (Mich, 2020) (Docket No. 157316), suggests that the W A Foote holding may be in doubt, and that the retroactive application of Covenant could be revisited. Sentinel was represented by Secrest Wardle throughout.

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