Collateral Source Rule in Medical Malpractice Cases
By Kevin Davidson
Jun. 24, 2014 12:09p
The collateral source rule is the legal precept that can affect the amount recovered by an injured party in a claim for medical malpractice. This rule is normally used by doctors and insurance companies to put a limit on their financial liabilities if they lose a medical malpractice case or while discussing the settlement. In this article we will discuss how the collateral source rule is used in these cases.
How is the Collateral Source Rule Used in Medical Malpractice Cases?
The collateral source rule allows defendants, who lose a medical malpractice case, to set-off compensation payments for injuries suffered by the plaintiff or damage experienced due to medical malpractice.
In other words, if the insurance company is supposed to pay the plaintiff $20,000 for the injuries as well as another $100,000 following the trial, the collateral source rule can be used by the defendant to claim that they should only have to pay $80,000.
The collateral source law has already been made into law in a number of states. Although each state will determine how the rule is applied, it is normally applied similarly throughout the entire country. The collateral source rule is also applicable to any injuries due to negligence and is not limited to medical negligence cases.
Establishing Sources of Collateral
Since collateral sources are considered third parties, they have no involvement in the medical malpractice case itself or they are not a part of the case.
Sources of collateral include automobile and health insurance companies, other insurance companies, family members, friends, and other monetary providers. There is no standard list for sources of collateral. Sources of collateral can be any entity offering compensation to a person.
For instance, family members or friends can be considered sources of collateral if they provide monetary contributions for medical expenses, help in house repair due to the disability following the injury, or provide other services, such as transportation, repairing the house, and preparation of meals, among others.
Normally collateral sources offered by family members and friends are considered minor and are not included in a medical malpractice case. In its place, insurance benefits received will be included by defendants in these cases. It may also include wages paid even though the injured person was absent from work or considerable monetary contributions from third parties.
Defining Benefits From Collateral Sources
Benefits from collateral sources are generally monetary in nature and are meant to provide compensation to the injured individual for financial damage, like health-related expenses, lost wages, and other services.
These are benefits that were already received by the injured person. Collateral source benefits that were not received by the injured party will prevent defendants from invoking the collateral source rule. Benefits already received by the injured person are included when it comes to the collateral source rule.
This principle also has exclusions, especially when it comes to insurance payment. The collateral source rule is normally invoked by defendants based on promised insurance benefits that will be paid in the future.
If you or a loved one have been a victim of medical malpractice, you should speak with an attorney who is familiar with the medical malpractice laws in your state. Consult with a St. Louis medical malpractice attorney at the Zevan and Davidson Law Firm to gain a better understanding of your legal rights.
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