209 So. 3d 702
La.2015Background
- Hoffman was injured in a 2010 rear-end collision with Elzy in Baton Rouge; Century insured Elzy.
- A bench trial in 2012 found Elzy 100% at fault and awarded Hoffman $6,978 total, including $2,478 in past medical expenses.
- Hoffman presented $4,528 in past medical bills; MRI charges showed $3,000 but only $950 was paid;律师 arranged a write-off/discount on the MRI bills.
- Plaintiff argues the collateral source rule allows recovery of the full billed amount, including the write-off.
- The trial court noted the attorney had an arrangement with the provider for a discount; Hoffman did not incur the write-off personally.
- Court holds attorney-negotiated medical discounts are not subject to the collateral source rule; only the amount actually paid ($950) is recoverable, arguing this avoids windfall and aligns with tort-damage principles.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Collateral source rule applies to attorney-negotiated write-offs? | Hoffman seeks full billed amount under collateral source rule. | Write-offs are not payments/benefits independent of the tortfeasor. | No; write-offs are not within collateral source rule. |
| Amount recoverable for disputed MRI charges? | Full $3,000 MRI charges should be recoverable. | Only amounts actually paid should be recoverable. | $950 recoverable (amount paid/accepted). |
| Policy basis for excluding attorney-negotiated discounts? | Discounts reflect victim’s diminished patrimony due to attorney involvement. | Attorney fees are not damages; no diminished patrimony from discounts. | Adopt bright-line rule excluding attorney-negotiated discounts from collateral source recovery. |
| Windfall/double recovery concerns? | Not applicable; recovery limited to actual incurred expenses to avoid windfall. |
Key Cases Cited
- Kansas City Southern Ry. Co. v. Kansas City S. Ry., 846 So.2d 739 (La. 2003) (collateral source rule context and policy guidance)
- Bozeman v. State, 879 So.2d 692 (La. 2004) (collateral source rule and medical write-offs)
- Bellard v. American Cent. Ins. Co., 980 So.2d 654 (La. 2009) (double recovery concerns; scope of collateral source rule)
- Gagnard v. Baldridge, 612 So.2d 732 (La. 1993) (damages framework and tort recoveries)
- Cutsinger v. Redfern, 12 So.3d 945 (La. 2009) (scope of collateral source rule; evidentiary concerns)
- Bozeman v. State (repeat), 879 So.2d 692 (La. 2004) (reaffirmation of write-off treatment)