Awaiting California Supreme Court to Reaffirm the Full Value of the Collateral Source Rule

Howell v. Hamilton Meats & Provisions, a case now awaiting a California Supreme Court decree that could have multibillion-dollar consequences is a chance for consumers to keep the longstanding benefit of the "collateral source" rule.

Legal analysts have been speculating - based on the comments of the justices hearing the case - about which way the California Supreme Court will go.

The issue is whether someone who suffers injuries in an auto collision or other incident is entitled to collect the full amount of the medical bills charged by doctors, hospitals and other care providers, or is limited to the amount actually paid by insurers for that treatment - often a fraction of the supposed bill.

That case stems from a 2005 San Diego County collision in which a Hamilton Meat truck seriously injured Rebecca Howell.   Howell's medical bills approached $200,000 but medical insurance settled with the care providers for $60,000 and the trial judge reduced the medical part of her judgment to that amount.  The "collateral source rule" prevents a wrongdoer from benefiting from a victim's foresight of having his or her own insurance, or similar benefit. (Often a victim's health insurer has a negotiated lower rate for medical services.)

In Howell, the full amount awarded by a jury was restored by an appellate court, and whatever happens in Howell's case will also settle several other cases hinging on the same issue. 

Recently, an insurer tried to reduce the full amount awarded to a client of Woodland Hills personal injury lawyer Barry P. Goldberg after a 3 week jury trial earlier this year.  After 4 mounths of aggravating and aggressive post-trial motions brought by the insurer to reduce the jury's award, all of the insurer's efforts were defeated by Mr. Goldberg. Not seeing any prompt rescue by the California Supreme Court, the insurer finally relented and paid the amount awarded by the jury, plus all of the victim's recoverable trial costs.

Mr. Goldberg can be contacted at his Woodland Hills office anytime (818) 222-6994.