Another Andary Analysis: Supreme Court Affirms Court of Appeals, Mostly

Almost a year ago, the Court of Appeals decided Andary, et al v USAA Casualty Ins Co, ___ Mich App ___; ___ NW2d ___ (2022) (Docket No. 356487), regarding the application of fee schedules that were added to the No-Fault Act in 2019.

 In a 2-1, published decision, the Court of Appeals held that the fee schedules do not apply retroactively as a matter of legislative intent, and even if the amendment were clearly drafted to apply retroactively, the Contracts Clause of the Michigan Constitution would prohibit it. The insurers almost immediately appealed to the Michigan Supreme Court.

 Today, the Supreme Court affirmed that the Legislature did not express a clear intent for the fee schedules to apply retroactively. Andary, et al v USAA Casualty Ins Co, ___ Mich ___; ___ NW2d ___ (2023) (Docket No. 164772). “[N]either MCL 500.3157(7) nor (10) applies to insureds injured while covered by an insurance policy issued before June 11, 2019.” Andary. ___ Mich at ___; slip op at 55.

 However, the Court found no constitutional problem with applying the fee schedule to post-amendment accidents; “the prospective application of the new fee schedule in MCL 500.3157(7) is reasonably and rationally related to a legitimate legislative purpose, regardless of the effectiveness or wisdom of the policy.” Andary. ___ Mich at ___; slip op at 54.

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