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Fed Judge Says Govt. Doesn't Have to Pay for FBI Agent Smashing Up $750000 Ferrari

DETROIT — Having immunity has its benefits.

U.S. District Judge Avern Cohn of Detroit has dismissed a lawsuit by a suburban Detroit insurance company that was trying to get the government to pay up after an FBI agent smashed up a stolen $750,000, 1995 F50 Ferrari that was in government custody, the Associated Press reported.

The judge ruled that federal law grants immunity to the feds if the property is being held by law enforcement, AP reported.

The judge concluded that the wreck was “certainly unfortunate,” but the government can’t be sued in these matters, AP’s Ed White  reported.

AP reported that the insurance company, Motors Insurance of Southfield, Mi., believes the FBI agent and the prosecutor in the car were taking the Ferrari for a joyride when the agent lost control in 2009 in Lexington, Ky.

AP reported that the car was stolen in Rosemont, Pa., in 2003 and eventually recovered in Kentucky.

AP reported that an email released to the insurance company showed that Assistant U.S. Attorney J. Hamilton Thompson was invited for a “short ride” before the car was moved from the impound garage.

“Reforming” no-fault insurance in Michigan: the GOP's gift to ...

NOTE: updated to correct info about Sen. Joe Hune, Rep. Pete Lund and the House & Senate versions of the bill .

Michigan’s no-fault auto insurance is the GOP’s current target for reform. In what can only be described as a gift to auto insurance companies, they are looking to remove the requirement for unlimited lifetime coverage for victims of auto accidents. The claim is that this will save Michigan insurance purchasers (i.e., auto owners) so much money that our pockets will be filled and the world will be set right once again.

Problem is, it’s a bunch of lies. The fact is that, outside of Metro Detroit, the average cost to Michiganders for auto insurance is similar to the national average of $1,000 per year or less for a single vehicle. However, if a person is involved in a catastrophic car accident requiring lifetime care, the proposed lifetime cap will shift the costs to our social welfare system, ensuring that all of us pay more in the end. In fact, according to a recent study , Michigan Medicaid costs could rise by $30 million in the first year if this cap goes through.

A new study concludes that Michigan’s Medicaid program could spend an additional $30 million during the first year if the state Legislature approves bills to change the state’s 39-year-old no-fault automobile insurance law.

One of the provisions of the four-bill legislative package would allow drivers to choose different coverage levels for personal injury protection, or PIP, including one as low as $50,000.

Michigan drivers now pay $145 annually and receive lifetime unlimited injury and rehabilitation benefits.

“Our major conclusion based on the findings of our report is there is no compelling reason to reduce the coverage at this time,” said Jane Powers, vice president of Public Sector Consultants, the Lansing firm that conducted the study.

Interestingly, the sponsor of the Senate version of the bill delivering this gift to insurance companies, Sen. Joe Hune, has frequently talked in interviews about benefit choices starting at $250,000. However, when legislation was introduced, the lowest coverage level was $50,000. The Senate bill is SB 649 .

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