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The Collateral Source Rule and State-Provided Services

BY Ashley Reitz Peinhardt
October 29, 2012

As discussed last month, most states adhere to the collateral source rule to preclude defendants in medical malpractice suits from presenting the jury with evidence that public benefits, such as state-provided special education and therapy, may be available to the plaintiff. Not all states have fallen in line with this general rule, however. In addition, state legislatures are often called upon to reduce or reshape the influence of the collateral source rule on those things juries may consider when awarding damages.

The Minority Approach

In Florida Physician's Insurance Reciprocal v. Stanley, 452 So.2d 514 (Fla. 1984), the Supreme Court of Florida held that the collateral source rule did not preclude the introduction of evidence relating to the availability of state-provided special education. Appeal was taken from judgment in favor of defendants in the medical malpractice action, brought by parents alleging that the defendants' negligence caused their child's retardation and cerebral palsy. The appellate court had found error in the trial court's decision to allow the defendant to cross-examine the plaintiff's expert about the existence of state-provided special education and therapy. The Florida Supreme Court reversed and reasoned that the collateral source rule should be limited to those benefits earned in some way by the plaintiff.

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