Helfman v. GE Group Life Assurance Company et al

Filing 158

ORDER Regarding 154 Objection. Signed by District Judge Victoria A. Roberts. (LVer)

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

Case No: 06-13528
Honorable Victoria A. Roberts

GE GROUP LIFE ASSURANCE
COMPANY, ET AL,
Defendants.
_______________________________/
ORDER
Mr. Helfman filed an Objection to GE Group Life Assurance Company’s 4th
Request and Writ for Garnishment (Doc. #153). Defendant Genworth Life and Health
Insurance Company f/k/a GE Group Life Assurance Company (“Genworth Life”)
responded (Doc. #155).
The Court overrules Helfman’s objection and orders Sun Life Assurance to pay to
Genworth Life, all amounts it currently holds as interest payable to Helfman, pursuant to
this Court’s Order of November 5, 2012.
The Court ordered Sun Life to pay interest to Helfman because of its delay in
paying Helfman disability benefits to which he was entitled. The facts in this case are
set forth in prior Orders. Helfman now contends that under state law, the interest is “part
and parcel” of the disability payment and is not subject to garnishment. MCL
600.6023(1)(f).
On the other hand, Defendant contends that prejudgement interest, or interest on
prejudgment interest, is not exempt from garnishment inasmuch as the exemption
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statute exempts only “benefits...paid...on account of a disability.” MCL 600.6023(1)(f).
Neither party cites any cases.
The Court awarded interest based on its inherit discretion to award prejudgment
interest. Tiemeyer v Cmty. Mut. Ins. Co., 8 F.3d 1094, 1097 (6th Circ. 1993). The award
was based on general equitable principles, Shelby County Health Care Corp. V Majestic
Star Casino, 581 F.3d 355, 376 (6th Cir. 2009), and not because the Court believed
prejudgment interest was part of “benefits...paid..on account of a disability.”
Plaintiff’s objection is OVERRULED; Genworth can proceed to garnish the
interest award payable to Plaintiff.
IT IS ORDERED.

/s/ Victoria A. Roberts
Victoria A. Roberts
United States District Judge
Dated: December 19, 2012
The undersigned certifies that a copy of this
document was served on the attorneys of
record by electronic means or U.S. Mail on
December 19, 2012.
S/Linda Vertriest
Deputy Clerk

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