Karaczewski v Farbman Stein & Co., 478 Mich 28 (2007)
Mr. Karaczewski was hired by Farbman Stein & Co in Southfield in 1984. In 1986 he was transferred to Fort Lauderdale, Florida and became a Florida resident. In 1995, he fell from a ladder in the course of his employment with the defendant and suffered a disabling injury. After receiving some workers’ compensation benefits in Florida, he filed a workers’ compensation claim in Michigan. In Michigan, he could receive benefits for additional future surgeries, something that was not afforded to him under Florida law.

The magistrate found that the Plaintiff was entitled to benefits under the laws of Michigan, despite being a resident of Florida and his injury occurring in Florida, because his contract of hire was made in Michigan. On appeal by the defendants, the WCAC affirmed the magistrate’s decision, relying on Boyd v W G Wade Shows, 443 Mich 515 (1993). The Court of Appeals affirmed.

The Michigan Supreme Court reversed the Court of Appeals and expressly overruled their previous decision in Boyd on the basis that the plain language of Sec. 845 of the WDCA conferring jurisdiction to Michigan for out-of-state injuries only if (1) the employee is a resident of Michigan when the injury occurs and (2) the contract of hire was made in Michigan.

The Supreme Court expressly said that Sec. 845 addresses jurisdiction only for out-of-state injuries and the overruling of Boyd only affects resident of other states who are injured outside of Michigan.

Therefore, for an out-of-state injury to be compensable in Michigan, the requirements are based on the clear and unambiguous language of Sec. 845. The employee must be a resident of Michigan at the time of the injury AND the contract for hire must have been made in Michigan.