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"The collateral source rule provides, as a general proposition, that a party may recover full compensatory damages from a tortfeasor regardless of the payment of any amount by any independent party (a 'collateral source'), such as an insurance carrier." Bushong v. Park, 837 A.
The collateral source rule is an evidentiary principle that enables an injured party to recover compensatory damages from a tortfeaser without regard to payments the injured party received from a source independent of a tortfeaser. Johnson v. Weyerhaeuser Co., 134 Wash.
The mechanics of this statute are that: (1) amounts paid to a plaintiff from a collateral source can and do reduce the amount of the verdict, and this reduction will be applied by the court following the jury verdict; (2) but in nearly all instances, evidence of payments from collateral sources will not be presented to ...
The collateral source rule prevents a monetary award from being reduced if the costs are covered by another source. The rule may prohibit evidence of such payments from being presented in court. Every U.S. state has a collateral source rule and their details vary.
The Common Law's collateral source rule (CSR) holds that in order to be considered compensation for tortious harm, benefits received by the tort victim must be: 1) directly inspired by the tortious harm and; 2) bestowed by the tortfeasor or by someone acting on the tortfeasor's behalf.
In law, the collateral source means someone other than the defendant who pays the victim's damages. A common example is a car accident victim whose medical bills are paid by health insurance.
There are a few exceptions to the collateral source rule. They usually involve medical malpractice claims and/or cases that involve unpaid medical bills. Your personal injury lawyer can provide more explanation about these fine points of the law.
In some cases, the collateral source exercises a lien or right of subrogation and is reimbursed for the overlap between the benefits and the damages. In many cases, however, the effect of the collateral-source rule is to allow victims to receive double compensation for their injuries.