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STATE OF MICHIGAN
COURT OF APPEALS


ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN SELF INSURED WORKERS COMPENSATION FUND, Plaintiff-Appellant, v ACKER STEEL ERECTORS, INC., Defendant-Appellee.

UNPUBLISHED June 21, 2005

No. 250973 Jackson Circuit Court LC No. 02-003733-AV

Before: Owens, P.J., and Cavanagh and Neff, JJ. PER CURIAM. Plaintiff appeals by leave granted from a circuit court order affirming in part and reversing in part the order of the district court. The district court denied plaintiff's motion for summary disposition and granted defendant's motion for summary disposition, holding that plaintiff's amended by-laws affecting the annual return of members' escrowed premium surplus were not applicable because they were implemented after defendant's contract with plaintiff was renewed. The circuit court found that the by-laws did not apply but that defendant was not entitled to $5,010.89 in accumulated surplus funds. The instant case arises from legislation that required plaintiff to change its bylaws and operating procedures. We affirm in part, reverse in part, and remand for a determination of attorney fees. Plaintiff is a group self-insurer created in 1995 to provide workers' compensation coverage to members engaged in construction-related businesses. Pursuant to a master indemnity agreement on file with the Bureau of Workers' Disability Compensation (Bureau), businesses permitted to join plaintiff agreed to be jointly and severally liable for the payment of any lawful workers' disability compensation awards against any member of the fund. They also agreed that there would be no disbursements from the fund through dividends or distribution of accumulated reserves "except at the direction of the trustees after application to and approval by the bureau," and that funds would only be disbursed according to the rules, regulations, and bylaws of the fund, the agreement between the trustees and service agent, and rules of the Bureau with respect to self insurers. Before January 4, 1999, plaintiff refunded to its members in good standing, who had not withdrawn from the fund, premiums collected that were in excess of the amount necessary to pay claims and administrative expenses. Article IV,

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Michigan Law