McAvoy v. H B Sherman Co.

We granted leave to *463appeal primarily to consider the constitutionality of 1975 PA 341 — the "70% statute”. This legislation requires a carrier (self-insurer, insurer or accident fund)2 to pay a worker compensation benefits before the basic fact-finding and legal review procedures have been completed. Also, the legislation fails to provide a full refund for carriers who have been wrongly forced to pay benefits, so it is confiscatory in fact. The legislation violates Const 1963, art 1, § 17 which insures that "[n]o person shall * * * be deprived of * * * property, without due process of law”.

If…