Michigan's "Mini-Tort" Liability Limit Increased
Michigan’s No-Fault Act's "mini-tort" liability limit increased to $1,000.00 effective October 1, 2012, due to the passage of House Bill 5362 which amended MCL 500.3135.
The so-called mini-tort is an exception to the rule contained in Michigan's No-Fault Act that an at-fault driver cannot be sued by the accident victim. Prior to the amendment, property damage liability was limited to damages up to $500 as a recovery for the out-of-pocket costs for repairs to a damaged vehicle, to the extent that they were not otherwise covered by insurance. Effective October 1st, this limit has been increased to $1,000.
The amendment also now prevents uninsured owners from seeking mini-tort damages from at-fault drivers. Specifically, MCL 500.3135(4)(e) now states, "[d]amages shall not be assessed if the damaged motor vehicle was being operated at the time of the damage without the security required by section 3101."
Remaining unchanged is the comparative fault provision contained in MCL 500.3135(4). This provision requires that damages be assessed on the basis of comparative fault, and specifically provides that "damages shall not be assessed in favor of a party who is more than 50% at fault."
The law's effective date is specifically identified as October 1st and makes no reference as to retroactivity. As such, this amendment to MCL 500.3135 should be applied to any cause of action that arises on or after October 1, 2012.