{"id":243822,"date":"2025-05-15T23:12:05","date_gmt":"2025-05-15T23:12:05","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/what-is-the-collateral-source-rule-in-personal-injury-cases\/"},"modified":"2025-05-15T23:12:05","modified_gmt":"2025-05-15T23:12:05","slug":"what-is-the-collateral-source-rule-in-personal-injury-cases","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=243822","title":{"rendered":"What is the Collateral Source Rule in Personal Injury Cases?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-b9755\"><span class=\"eKaei\"><span>The purpose of civil compensatory damages is to \u201cmake the victim whole.\u201d But what if the victim is able to recover more than his out-of-pocket special damages because he has a third party to pay for his medical care?<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<div class=\"cCHaL\" id=\"viewer-7na8v\">\n<div class=\"NEgOL pnHHu\">\n<figure class=\"x1rs8\" data-hook=\"figure-IMAGE\">\n<div data-hook=\"image-viewer\" class=\"VNeeD\">\n<div style=\"--dim-height:3648;--dim-width:5472;--ricos-image-default-border-color:unset\" id=\"7na8v\" class=\"qiXex jjsJu KnSpt\" data-hook=\"image-viewer-7na8v\"><wow-image id=\"11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg\" class=\"undefined DDPnW\" data-image-info=\"{&quot;containerId&quot;:&quot;7na8v&quot;,&quot;displayMode&quot;:&quot;fill&quot;,&quot;isLQIP&quot;:true,&quot;isSEOBot&quot;:false,&quot;lqipTransition&quot;:&quot;blur&quot;,&quot;encoding&quot;:&quot;AVIF&quot;,&quot;imageData&quot;:{&quot;width&quot;:5472,&quot;height&quot;:3648,&quot;uri&quot;:&quot;11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg&quot;,&quot;name&quot;:&quot;&quot;,&quot;displayMode&quot;:&quot;fill&quot;}}\" data-motion-part=\"BG_IMG\" data-bg-effect-name=\"\" data-has-ssr-src=\"https:\/\/www.gaynellwilliamslaw.com\/post\/true\" data-animate-blur=\"\"><img decoding=\"async\" src=\"https:\/\/static.wixstatic.com\/media\/11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg\/v1\/fill\/w_147,h_98,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_avif,quality_auto\/11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg\" alt=\"\" style=\"width:100%;height:100%;object-fit:cover;object-position:50% 50%;max-width:100%\" data-pin-url=\"https:\/\/www.gaynellwilliamslaw.com\/post\/what-is-the-collateral-source-rule-in-personal-injury-cases\" data-pin-media=\"https:\/\/static.wixstatic.com\/media\/11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg\/v1\/fill\/w_5000,h_3333,al_c,q_90,usm_0.66_1.00_0.01\/11062b_9e4c381728e04360a7989ffd7d78dc4d~mv2.jpeg\" draggable=\"false\"\/><\/wow-image><\/div>\n<p><button class=\"ZWWBG\" type=\"button\" data-hook=\"image-expand-button\" aria-label=\"Expand image\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewbox=\"0 0 19 19\" class=\"ylExO\"><path d=\"M15.071 8.371V4.585l-4.355 4.356a.2.2 0 0 1-.283 0l-.374-.374a.2.2 0 0 1 0-.283l4.356-4.355h-3.786a.2.2 0 0 1-.2-.2V3.2c0-.11.09-.2.2-.2H16v5.371a.2.2 0 0 1-.2.2h-.529a.2.2 0 0 1-.2-.2zm-6.5 6.9v.529a.2.2 0 0 1-.2.2H3v-5.371c0-.11.09-.2.2-.2h.529c.11 0 .2.09.2.2v3.786l4.355-4.356a.2.2 0 0 1 .283 0l.374.374a.2.2 0 0 1 0 .283L4.585 15.07h3.786c.11 0 .2.09.2.2z\" fill=\"#000\" fill-rule=\"nonzero\"\/><\/svg><\/button><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-9kpoo\"><span class=\"eKaei\"><span>That issue was at the crux of the Louisiana Supreme Court\u2019s seminal decision in Bozeman v. State, 03-1016 (La. 07\/02\/04); 879 So.2d 692, in which the court upheld the Louisiana Second Circuit Court of Appeal\u2019s holding that the victim was not allowed to recover the \u201cwrite-off\u201d amount between what the healthcare provider charged for its<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-350rl\"><span class=\"eKaei\"><span>services and what her insurer, Medicaid, paid for those services because the victim did not part with any of her patrimony to receive the Medicaid benefits. Bozeman at 705.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-fiuiq\"><span class=\"eKaei\"><span>But what if the victim did pay for health insurance? Would the plaintiff be able to recover the difference between what the healthcare provider charged and what it was paid by Medicare or a private insurer such a Blue Cross? Bozeman declares that the victim is entitled to the \u201cbenefit of the bargain\u201d and may reap the harvest which results from<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-2m1av\"><span class=\"eKaei\"><span>having health insurance. Id. at 706.<\/span><\/span><\/p>\n<\/div>\n<p><h2 class=\"fxP4f nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-dc520\"><span class=\"CWBiH\"><strong style=\"font-weight:700\"><span>What about VA Benefits?<\/span><\/strong><\/span><\/h2>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-c810k\"><span class=\"eKaei\"><span>While Bozeman makes it clear that the plaintiff insured by Medicaid cannot recover the write-off amount from healthcare providers, what about the plaintiff whose medical care is provided by the Veterans Administration, for which the plaintiff does not pay a monetary premium?<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-cat0s\"><span class=\"eKaei\"><span>In Smith v. Roy O. Martin Lumber Co., 03-1441 (La. App. 3 Cir. 04\/14\/04); 871 So.2d 661, the plaintiff filed a disputed worker\u2019s compensation claim. While the claim was pending, he underwent back surgery at the Veterans Administration (VA) hospital for the work-<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-b46jd\"><span class=\"eKaei\"><span>related injury. The plaintiff was never charged for the surgery. The VA did not intervene in the claim, nor did it informally request reimbursement for the surgery from the worker\u2019s comp claim proceeds.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-28ich\"><span class=\"eKaei\"><span>The Third Circuit Court of Appeal affirmed the trial court\u2019s ruling that the injured worker was entitled to the costs associated with his back surgery at the VA because he had a \u201cnatural obligation\u201d to pay the VA.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-8nhe3\"><span class=\"eKaei\"><span>In the same vein as Smith, courts have concluded that a plaintiff, not the tortfeasor, should be allowed the benefit of healthcare services received from sources for which he did not pay.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-3uj0h\"><span class=\"eKaei\"><span>The following is a list of other types of cases in which the collateral source rule has been applied to the benefit of the injured party:<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-21knh\"><span class=\"eKaei\"><span>1. Medicare payments &#8211;\u00a0Womack v. Traveler&#8217;s Insurance Co., 258 So. 2d 562 (La. App. 1st Cir., 1972).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-6v3n3\"><span class=\"eKaei\"><span>2. Sick leave and annual leave payments &#8211;\u00a0Dunlap v. Armendariz, 265 So. 2d 352 (La. App. 4th Cir., 1972).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-drag4\"><span class=\"eKaei\"><span>3. Retirement pension payments &#8211;\u00a0Adam v. Schultz, 250 So. 2d 811 (La. App. 4th Cir., 1971).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-6n14g\"><span class=\"eKaei\"><span>4. Free medical services rendered as a professional courtesy &#8211;\u00a0Spizer v. Dixie Brewing Co., 210 So. 2d 528 (La .App. 4th Cir., 1968).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-9qlon\"><span class=\"eKaei\"><span>5. Federal Social Security Benefits &#8211;\u00a0Doerle v. State, 147 So. 2d 776 (La. App. 3rd Cir., 1962).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-ffsqm\"><span class=\"eKaei\"><span>6. Insurance paid for by the employer for the employee as a result of a collective bargaining agreement in a F.E.L.A. case &#8211;\u00a0Hall v. Minnesota Transfer Ry. Co., 322 F. Supp. 92 (D. Minn., 1971).<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-4rj05\"><span class=\"eKaei\"><span>7. Suits brought under the Jones Act and\u00a0Longshoremen&#8217;s and Harbor Worker&#8217;s Compensation Act\u00a0&#8211;\u00a0Tipton v. Socony Mobil Oil Co., 375 U.S. 34, 85 S. Ct. 1, 11 L. Ed. 2d 4 (1963).\u00a0<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-asii4\"><span class=\"eKaei\"><span>Bozeman v. State, 03-1016 (La. 07\/02\/04); 879 So.2d 692, 698-699.<\/span><\/span><\/p>\n<\/div>\n<p><h2 class=\"fxP4f nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-a7v1c\"><span class=\"CWBiH\"><strong style=\"font-weight:700\"><span>Is evidence of payment by a collateral source admissible in court?<\/span><\/strong><\/span><\/h2>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-8tonj\"><span class=\"eKaei\"><span>In Fuselier v. Everest Nat&#8217;l Ins. Co., 2021 U.S. Dist. LEXIS 139121 (W.D. La. July 26, 2021) the plaintiff filed a motion in limine to preclude the defense from introducing into evidence the fact that his past, present and future medical bills were paid by his worker\u2019s compensation insurance and that he was receiving an insurance-negotiated reduction on those bills. The trial court ruled for the plaintiff and granted the motion as to his future medical bills, as well as past medical bills paid by health insurance or plaintiff\u2019s counsel; however, the \u201cwrite off\u201d amount was not admissible.<\/span><\/span><\/p>\n<\/div>\n<p><h2 class=\"fxP4f nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-ct4ci\"><span class=\"CWBiH\"><strong style=\"font-weight:700\"><span>Worker\u2019s Compensation<\/span><\/strong><\/span><\/h2>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-753c7\"><span class=\"eKaei\"><span>In Simmons v. Cornerstone Invs., LLC, 2018-0735 (La. 05\/08\/19); 282 So. 3d 199, the Court held that, as plaintiff\u2019s patrimony was not diminished because he did not pay for the worker\u2019s compensation insurance, he could not recover the \u201cwrite-off\u201d amount.<\/span><\/span><\/p>\n<\/div>\n<p><h2 class=\"fxP4f nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-dmlur\"><span class=\"CWBiH\"><strong style=\"font-weight:700\"><span>Attorney Payments for Medical Treatment<\/span><\/strong><\/span><\/h2>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-8d8hq\"><span class=\"eKaei\"><span>In Hoffman v. 21st Century N. Am. Ins. Co., 2014-2279 (La. 10\/02\/15); 209 So. 3d 702 the Louisiana Supreme Court held that the collateral source rule did not apply to attorney-negotiated write-offs or discounts for medical expenses obtained as a product of the litigation process. Hoffman at 706.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-7lrk\"><span class=\"eKaei\"><span>The plaintiff in Hoffman was awarded $2,478.00 in special (out-of-pocket) damages arising out of injuries sustained in an <\/span><a target=\"_blank\" href=\"https:\/\/www.gaynellwilliamslaw.com\/post\/things-to-do-after-an-automobile-accident\" rel=\"noopener\" class=\"q2QVv oiVLY\" data-hook=\"web-link\"><u style=\"text-decoration:underline\"><span>auto accident<\/span><\/u><\/a><span>.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-f0uae\"><span class=\"eKaei\"><span>He appealed, arguing that he should have received $4,528.00 in medical specials because that is how much he was charged by his healthcare providers.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-48ha1\"><span class=\"eKaei\"><span>As evidence of his out-of-pocket damages, the plaintiff introduced into evidence a $3,000 statement from an imaging center which indicated he had been charged $1,500 each for two (2) MRIs; however, the defense introduced a statement from the imaging center which showed an \u201cATT W\/O\u201d of $1,025.00 for each study. Hoffman at 704.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-2el15\"><span class=\"eKaei\"><span>The plaintiff argued that, under the collateral source rule, he was entitled to the amount written off in accordance with his attorney\u2019s negotiated discount with the provider. Id.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-cmfr7\"><span class=\"eKaei\"><span>In ruling in favor of the defense, and denying the plaintiff\u2019s request to receive the written off amount, the Supreme Court focused on the fact that the plaintiff had not lost any of his patrimony to receive the benefit; in fact, he was not even aware of the arrangement between his attorney and the imaging center. Hoffman at 706.<\/span><\/span><\/p>\n<\/div>\n<p><h3 class=\"zHVzV nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-ecf44\"><span class=\"CWBiH\"><strong style=\"font-weight:700\"><span>Conclusion<\/span><\/strong><\/span><\/h3>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-70rmd\"><span class=\"eKaei\"><span>The collateral source rule is a mechanism by which a plaintiff is allowed to benefit from the fact that he has insurance for his accident-related injuries; however, he must pay for that insurance with some part of his patrimony. If the insurance has not been earned by the plaintiff, such as Medicaid, worker\u2019s compensation insurance or an attorney-negotiated discount, then the collateral source rule does not apply and the plaintiff is only able to recover the actual amounts paid for healthcare necessitated by the acts of the tort-feasor.<\/span><\/span><\/p>\n<\/div>\n<p><h4 class=\"KCZRD nYVpd d-MNq GX0-h\" dir=\"auto\" id=\"viewer-dpsa5\"><span class=\"CWBiH\"><span>CONTACT US TODAY<\/span><\/span><\/h4>\n<\/p>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-2q9l4\"><span class=\"eKaei\"><a target=\"_blank\" href=\"https:\/\/www.gaynellwilliamslaw.com\/\" rel=\"noopener\" class=\"q2QVv oiVLY\" data-hook=\"web-link\"><u style=\"text-decoration:underline\"><span>Gaynell Williams LLC Attorney at Law<\/span><\/u><\/a><span> offers a free initial consultation to discuss your case. The first consultation can be in person or it can be virtual, on the Internet. Call Gaynell Williams today at (504) 302-2462 for a free consultation as soon as possible. We will work around your schedule. New Orleans lawyers Gaynell Williams LLC Attorney at Law have offices in Gretna and Downtown New Orleans by appointment only.<\/span><\/span><\/p>\n<\/div>\n<div data-breakout=\"normal\">\n<p class=\"e3Vej UGrRC d-MNq GX0-h\" dir=\"auto\" id=\"viewer-12l89\"><span class=\"eKaei\"><span>This information has been provided for informational purposes only and is not intended and should not be construed to constitute legal advice. Please consult your attorney in connection with any specific situation under Louisiana law and the applicable state or local laws that may impose additional obligations on you.<\/span><\/span><\/p>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>The purpose of civil compensatory damages is to \u201cmake the victim whole.\u201d But what if the victim is able to recover more than his out-of-pocket special damages because he has a third party to pay for his medical care? That issue was at the crux of the Louisiana Supreme Court\u2019s seminal decision in Bozeman v. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":243823,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[3608,85001,9579,1140,7318,14527],"dealstore":[],"offerexpiration":[],"class_list":["post-243822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-cases","tag-collateral","tag-injury","tag-personal","tag-rule","tag-source"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the Collateral Source Rule in Personal Injury Cases? - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=243822\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the Collateral Source Rule in Personal Injury Cases? - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"The purpose of civil compensatory damages is to \u201cmake the victim whole.\u201d But what if the victim is able to recover more than his out-of-pocket special damages because he has a third party to pay for his medical care? 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