Miller v. State Farm Mut Automobile Ins Co

In Miller v. State Farm Mut Automobile Ins Co, 410 Mich. 538; 302 N.W.2d 537 (1981), the Supreme Court of Michigan discussed the issue of the proper method of calculating the amount of support a plaintiff would have received from the decedent if the decedent had not died. The Court stated that in analyzing the question, "our obligation is to discover and give effect to the Legislature's intention in enacting 3108 as best we can determine it from the language employed in 3108 and the no-fault act as a whole, and in light of such legislative history as is available." Id. at 556. The Court determined that the "fund of 'tangible things of economic value'" was not limited to wages. Miller, 410 Mich. at 556-557. In today's complex economic system, the "tangible things of economic value" which many persons contribute to the support of their dependents include hospital and medical insurance benefits, disability coverage, pensions, investment income, annuity income and other benefits. Had it been the intent of the Legislature to limit survivors' benefits to a sum equal to what eligible dependents would have received from wages and salary alone, it could be expected to have said so. It chose instead the far broader category of "contributions of tangible things of economic value" which, on its face, suggests the inclusion of benefits derived for family support from other and different sources. Id. at 557. In Miller, the defendant insurance company argued that the "contribution of tangible things of economic value" should be reduced by income-related taxes that the decedent would have paid and by an amount determined to be the decedent's "personal consumption factor." Regarding the question whether benefits should be reduced by income-related taxes the decedent would have had to pay, the Court stated: Tax liability associated with income is an inescapable fact of our modern economic life. In measuring the financial loss actually incurred by surviving dependents, it would be unrealistic to fail to acknowledge that surviving dependents would not have received for their support that portion of the deceased's income that he would have been required to pay in taxes. Moreover, the adjustment for such taxes can be accurately based on readily ascertainable information, without unnecessary administrative delays or time-consuming factual disputes. Id. at 564.