PIP benefits; Statutory standing under MCL 500.3112; C-Spine Orthopedics, PLLC v Progressive MI Ins Co

The court concluded that it was compelled by binding precedent to reverse the trial court’s ruling granting summary disposition in favor of Allstate and remand under C-Spine Orthopedics. The lawsuit involves C-Spine’s efforts to collect PIP benefits based on certain assignments executed by B, “who was injured in a motor vehicle accident and had received medical treatment from C-Spine in relation to the injuries.” Allstate insured the car in which B “was riding when he was injured, and there is no dispute that Allstate is the responsible no-fault insurer. The trial court ruled that C-Spine was not the real party in interest and lacked standing at the time the action was filed.” It reasoned that C-Spine “had transferred all of its rights and interests in certain accounts receivable, including those in relation to services provided to [B], to third-party factoring companies before commencing the suit. C-Spine eventually obtained counter-assignments executed by the factoring companies, ostensibly conveying the accounts receivable back to C-Spine, but the trial court refused to consider the counter-assignments because they were not produced until after the close of discovery.” The court concluded “the trial court did not take into consideration the counter-assignments offered by C-Spine because they were produced after the close of discovery. And in C-Spine Orthopedics, the trial court effectively did not take into consideration the counter-assignments because they were not executed until after the litigation was commenced.” Applying C-Spine Orthopedics, the court concluded that C-Spine, “having statutory standing under MCL 500.3112, has standing in this case and is the real party in interest.” The court noted “that because the trial court did not take into consideration the counter-assignments given that they were not produced until after discovery, which ruling is not challenged on appeal, C-Spine Orthopedics would appear to dictate that the factoring companies be added to the suit on remand as necessary parties, MCR 2.205(A), to eliminate the risk of a second lawsuit by” those companies.