July 10, 2005

A case involving the Vocationally Disabled (f/k/a Vocationally Handicapped) provisions.

The Michigan Supreme Court has issued a decision in BAILEY V OAKWOOD HOSPITAL/ SECOND INJURY FUND. This case is a Chapter 9 case involving the Vocationally Disabled (f/k/a Vocationally Handicapped) provisions. The issue was: Can an employer/carrier that fails to provide the Fund with timely notice of the Fund's potential exposure receive reimbursement from the Fund nevertheless? The Supreme Court held the Fund is liable for reimbursement, even if the notice was late. The decision was 5 -2 with Justice Kelly authoring the majority opinion. Justice Markman and Justice Cavanagh dissented.