John N. Kenney v. Samuel C. Liston
233 W. Va. 620
| W. Va. | 2014Background
- Liston was a passenger when Kenney rear-ended his vehicle; Kenney was intoxicated with BAC 0.328.
- The case was bifurcated into two phases: compensatory damages first, punitive damages second.
- Plaintiff sought full medical expense recovery; bills were discounted or written off by providers due to insurer arrangements.
- Circuit court allowed collateral source evidence; held discounts/write-offs are collateral sources and not deductible from damages.
- Jury awarded $325,272.92 in compensatory damages; past medical expenses were about $74,061.
- Punitive damages phase yielded $300,000; defense argued lack of assets, insurer may cover excess verdict.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Collateral source write-offs admissibility | Write-offs are collateral benefits; full billed value remains recoverable. | Discounts/write-offs reduce recoverable damages. | Collateral source rule applies; plaintiff may recover full reasonable value notwithstanding write-offs. |
| Punitive damages evidence on insurance | Insurance and excess coverage are relevant to post-verdict payment possibilities. | Evidence/instructions improperly speculate about coverage beyond policy limits. | Trial court properly allowed inquiry and a limiting instruction; no error in punitive verdict. |
| Limiting instruction under Shamblin | Jury should be informed there may be excess coverage to pay verdict. | Instruction comment on evidence; improper under Rule 51. | Court did not err; door was opened by defense; instruction is proper within discretion. |
| Damages verdict form objection | Not necessary to challenge verdict form lines; otherwise preserved. | Two lines on damages form were improper. | Objections not preserved; not considered on appeal. |
Key Cases Cited
- Ratlif v. Yokum, 280 S.E.2d 584 (W.Va. 1981) (collateral source rule generally precludes offsetting collateral payments)
- Shamblin v. Nationwide Mut. Ins. Co., 396 S.E.2d 766 (W.Va. 1990) (insurance bad faith and excess verdicts determine responsibility beyond policy limits)
- Howell v. Hamilton Meats & Provisions, Inc., 257 P.3d 1130 (Cal. 2011) (reasonable value vs. billed/paid amounts; discounts not automatically recoverable)
- Long v. City of Weirton, 214 S.E.2d 832 (W.Va. 1975) (measure of special medical expenses is reasonable value, not actual payment)
- Jordan v. Bero, 210 S.E.2d 618 (W.Va. 1974) (future medical expenses measured by reasonable value, not incurred costs)
- Reed v. Wimmer, 465 S.E.2d 199 (W.Va. 1995) (measures damages by reasonable value of medical services)
- Ilosky v. Michelin Tire Corp., 307 S.E.2d 603 (W.Va. 1983) (collateral source rule and damages discussed)