Walker v. Farmers Insurance Exchange

Defendant appeals as of right a declaratory judgment entered in favor of plaintiff. We affirm and hold that a no-fault automobile insurance carrier may not offset from its obligation to pay personal protection insurance benefits (pip) a judgment against its insured that is unrelated to such insurance benefits.

i

Plaintiff was injured in May 1991 when she slipped and fell from a vehicle insured by defendant. In December 1992, plaintiff sued defendant for nonpayment of no-fault medical and wage-loss benefits. Approximately one week before trial, defendant agreed to pay plaintiffs outstanding…