First Party (PIP)

Court/Case No: 14-000264-NF

Tried/Argued Before: Judge

Demand: $104,206.19

Verdict: Dismissal of Claims and $63,000.00 in Sanctions

Name of Judge(s): Honorable David J. Allen

Keys to the Case:

Plaintiff filed a lawsuit for No-Fault benefits, underinsured motorist benefits, and uninsured motorist benefits against Auto-Owners, arising out of a March 27, 2013 accident.  Throughout the course of discovery, Auto-Owners uncovered extensive fraud by Plaintiff and the medical providers.  Specifically, Plaintiff testified that he was paid by “Abdul” of AAA Transportation to attend medical appointments at numerous facilities after his accident.  Plaintiff further testified that he accepted payment from “Abdul” in the amount of forty ($40.00) to fifty ($50.00) dollars per appointment for each appointment that he attended.  Plaintiff also testified that he did not receive any treatment at one particular facility.

Auto-Owners filed a Counter-Claim against Plaintiff, Intervening Plaintiff Omega PT, LLC, and Plaintiff AAA Medical Transportation, LLC.  The Counter-Complaint requested, among other things, that the Court award Auto-Owners costs, fees, and expenses pursuant to MCR 2.625(A)(2), MCL 600.2591(2), and/or MCR 2.114(E).

In addition, Auto-Owners filed a Motion for Summary Disposition, which was granted, dismissing with prejudice any and all claims made by Plaintiff, Intervening Plaintiff Omega PT, LLC, Plaintiff AAA Medical Transportation, LLC, Intervening Plaintiff First National Rehabilitation, and Intervening Plaintiff Great Lakes Transportation 1, LLC.   The trial court denied Auto-Owners’ request for sanctions.  Auto-Owners appealed the denial of sanctions.

On appeal, the Court addressed Auto Owners’ request to sanction Plaintiff, Omega PT, LLC, and AAA Medical Transportation, LLC, for pursuing a frivolous lawsuit.  Appellate attorney, Sidney Klingler, successfully argued the issue of whether the trial court should have awarded sanctions in addition to granting Defendant’s Motion for Summary Disposition based on fraud. The Appellate Court held that the trial judge should have at least considered sanctions against Plaintiff and AAA Medical Transportation when ruling on the dispositive motion, remanding for further consideration.

Upon remand, Javon David obtained $63,000 in sanctions against Plaintiff and AAA Medical Transportation, LLC, jointly and severally, following a Motion for Sanctions, Costs, and

Defense SW attorney(s) Involved in Case: