Helfman v. GE Group Life Assurance Company et al

Filing 121

ORDER Re 113 Request for Writ of Garnishment. Signed by District Judge Victoria A. Roberts. (LVer)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
JOEL HELFMAN
Plaintiff,

CASE NUMBER: 06-13528
HONORABLE VICTORIA A. ROBERTS

v.
GE GROUP LIFE ASSURANCE COMPANY,
a foreign corporation, GENWORTH LIFE AND
HEALTH INSURANCE COMPANY, a foreign
corporation, AND SUN LIFE ASSURANCE
COMPANY OF CANADA, a foreign corporation,
Defendants.
/

ORDER
Genworth Life and Health Insurance Company’s (f/k/a GE Group Life Assurance
Company) (“Genworth”) filed a Request for Writ of Garnishment. (Doc. # 113). The
Court already denied Genworth’s request to garnish long-term disability benefits owed
to Plaintiff Joel Helfman by Sun Life Assurance Company of Canada. (Doc. # 111).
Then, the Court held Michigan law exempted Plaintiff’s disability benefits from
garnishment. See MCL 600.6023(1)(f), 600.4031. Now, Genworth seeks to garnish an
award of attorney fees to Plaintiff, from Sun Life, in the amount of $46,641.94, in partial
satisfaction of a $107,133.33 judgment entered by this Court against Helfman in favor of
Genworth. (See Doc. # 112).
Plaintiff objects to the request. (Doc. # 114). He says Genworth is precluded
from garnishing his attorney fees from Sun Life by the same provisions the Court relied

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upon before, to exempt Plaintiff’s long term disability payments from garnishment.
Plaintiff reasons, MCL 600.6023(1)(f) “goes beyond just shielding the actual
benefits that are paid under a disability policy,” and also covers his attorney fees
because they are “owing from Sun Life [ ] ‘on account of the disability’ of Plaintiff.” (Doc.
# 114 at 3 (quoting MCL 600.6023(1)(f))). He states, “[w]ere it not for the Plaintiff’s
disability, the attorneys’ fees which have been ordered by this Court would not have
been incurred.” (Id.).
Genworth responds that Plaintiff misreads the statute. (Doc. # 117). It argues
that MCL 600.6023 shields disability benefits only, and not attorney fees from
garnishment.
The Court agrees with Genworth. MCL 600.6023(1)(f) reads:
The following property of the debtor and the debtor’s dependents shall be
exempt from levy and sale under any execution: ...Any money or other
benefits paid, provided, or allowed to be paid, provided, or allowed, by any
stock or mutual life or health or casualty insurance company, on account
of the disability due to injury or sickness of any insured person, whether
the debt or liability of such insured person or beneficiary was incurred
before or after the accrual of benefits under the insurance policy or
contract, except that the exemption does not apply to actions to recover
for necessities contracted for after the accrual of benefits.

The plain language of this statutory provision, read in tandem with MCL
600.4031(1) (statutory provisions relating to exemptions from execution are applicable
to garnishment claims), reveals that it is intended to exempt disability benefits from
garnishment, nothing else. “Any money” is modified by “or other benefits,” which plainly
limits the applicability of the exemption to benefits, monetary or non-monetary, paid or
provided on account of disability due to the injury or sickness of an insured person.
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Plaintiff’s attorney fees are not benefits; they are owed under ERISA because Plaintiff
achieved partial success in his law suit against Sun Life.
The Court OVERRULES Plaintiff’s Objection and GRANTS Genworth’s Request
for Writ of Garnishment.
IT IS ORDERED.

/s/ Victoria A. Roberts
Victoria A. Roberts
United States District Judge
Dated: June 14, 2011
The undersigned certifies that a copy of this
document was served on the attorneys of
record by electronic means or U.S. Mail on
June 14, 2011.
s/Linda Vertriest
Deputy Clerk

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