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The collateral source rule is a common law doctrine under which an injured party's damage award may not be reduced by payments, also intended to compensate the harm caused by the tortfeasor, received from third parties. Restatement (Second) of Torts § 920A cmt.
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.
Proponents of the collateral source rule argue that a defendant in a suit for damages should not escape the consequences of negligence or malpractice just because the damages were covered by the plaintiff's insurer or by government benefits.
802.08. Sub. (2) (b) allows the circuit court to convert a defendant's motion to dismiss for failure to state a claim into a summary judgment motion when the defendant has not filed an answer even though s. 802.08 requires that the pleadings be complete before a court can review a summary judgment motion.
The collateral source rule prevents the defendant from submitting evidence that your medical bills were covered by insurance. Likewise, the collateral source rule also prevents the defendant from trying to reduce the value of your claim because you received money from a third party.
807.05 Stipulations. No agreement, stipulation, or consent between the parties or their attorneys, in respect to the proceedings in an action or special proceeding shall be binding unless made in court or during a proceeding conducted under s.
The collateral source rule ?allows a plaintiff to seek full recovery from a tortfeasor even though an independent source has compensated the plaintiff in full or in part of the loss.?
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.