Edward W. Ostrowski v. The United States Department of Labor, Office of Workers Compensation Programs

Plaintiffs in this case appeal from a judgment requiring them to reimburse the Federal Employees’ Compensation Fund out of damages previously awarded to them in a state court tort action against third parties.

In 1973, Michigan adopted a “no fault” automobile insurance system which limited these plaintiffs to recovery for noneconomic losses (such as pain and suffering) in their suit against third party tortfeasors. See Mich.Comp.Laws Ann. § 500.3135 (Supp. 1981). The question presented for our review is whether this modification in Michigan’s tort law prohibits the United States from obtaining…