Michigan Supreme Court Vacates Court of Appeals Ruling in MCCA Transparency Case
LANSING – The Michigan Supreme Court issued an order today vacating a recent decision by Michigan Court of Appeals, which held that the Michigan Catastrophic Claims Association (MCCA) was not subject to the Michigan Freedom of Information Act (FOIA). The FOIA statute applies to all entities that are considered to be a “public body.” The Supreme Court remanded the case to the Court of Appeals instructing that Court to specifically address the issue of whether the MCCA is a “public body.” The Supreme Court also instructed the Court of Appeals to address whether a statute passed by the legislature years ago that purported to exempt the MCCA from the reach of FOIA was constitutionally enacted.
In response to a request for comment to the Court’s unanimous decision, CPAN General Counsel George Sinas stated:
“What the Supreme Court has asked the Court of Appeals to decide will impact a much broader universe than auto no-fault insurance. The definition of what constitutes a ‘public body’ gets to the very heart of ensuring that the doors which have been opened by Michigan’s FOIA law will remain open so that the public will be able to access information possessed by entities created by the legislature.
“The Michigan Catastrophic Claims Association is an entity that was created by the legislature pursuant to a statute that requires all Michigan insurance companies to be members of that association and which defines the legal responsibilities and authority of the association.
“When the Michigan legislature publicly creates such entities through its legislative power, the entity created should be considered a ‘public body’ and therefore be subject to FOIA. This allows that all interested citizens who are impacted by that entity to have the ability to learn the truth about the way it operates. Therefore, the issues framed by the Michigan Supreme Court go to the very essence of what the Michigan FOIA law was intended to accomplish. There is no question that the MCCA was not only created by the legislature, but that it affects – in a substantial way – all Michigan citizens who own, operate or use motor vehicles. Therefore, the MCCA should be considered a ‘public body’ and subject to the reach of FOIA.”
