Earlier this month, the Michigan Supreme Court issued an interesting opinion illuminating the jurisdictional issues that can arise in personal injury cases. In the case, Hodge v. State Farm Mutual Automobile Insurance Company, the plaintiff was a woman who was injured when she was struck by a vehicle insured by State Farm.
After the accident, the plaintiff filed a lawsuit in a district court. In Michigan, as in Indiana and many other states, the court system is broken down according to several factors, one of which is the “amount in controversy,” or the amount sought by the plaintiff. In this case, the plaintiff was seeking $25,000, which was the upper limit of a Michigan district court.
At trial, the plaintiff presented evidence of damages far in excess of the $25,000. State Farm attempted to prevent the plaintiff from presenting this evidence, arguing that it wasn’t proper because the limit she could recover was $25,000. The court denied the request and allowed all of the plaintiff’s evidence of injuries. After the trial, she was awarded roughly $85,000, and the court then reduced the recovery amount to the jurisdictional limit of $25,000.