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2016 IL App (1st) 150414
Ill. App. Ct.
2016
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Background

  • On June 24, 2008, Smith ran a stop sign and struck Klesowitch’s vehicle; Klesowitch sued for negligence and damages. Smith pled contributory negligence.
  • Plaintiff obtained summary judgment on defendant’s negligence/duty and breach, reserving proximate cause and damages for trial.
  • On the eve of trial plaintiff produced medical billing records (total billed = $83,788.34); portions of several bills had been written off or adjusted and were not actual payments.
  • Trial court admitted the full billed amounts into evidence over defense objection; jury awarded plaintiff $83,788.84 for medical expenses.
  • Defendant moved for remittitur/new trial arguing (1) partial summary judgment was improper or prejudicial, (2) late-disclosed bills should be excluded, and (3) written-off portions of bills lacked foundational proof of reasonableness/payment. Trial court denied relief; appeal followed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
1. Validity/effect of partial summary judgment on negligence SJ correctly decided defendant breached duty; court could decide duty/breach and leave causation/damages SJ was improper or prejudicial because genuine fact issues existed about plaintiff’s contributory negligence and it tainted the jury Affirmed: court properly entered partial SJ as to duty and breach under 735 ILCS 5/2-1005 and did not bar defendant from arguing contributory fault at trial
2. Failure to timely supplement discovery (undisclosed Ingalls bill) Defense waived by failing to contemporaneously object and secure a ruling Bill disclosure was untimely (disclosed day before trial); evidence should have been excluded as sanction Waived: defendant failed to preserve the discovery-timeliness objection; admission issue not sustained
3. Admissibility of written-off/adjusted ("satisfied") portions of medical bills Full billed amounts were admissible if proper foundation shows reasonableness or proof that bill was paid; plaintiff testified bills were paid Written-off/adjusted portions were not actually paid; plaintiff failed to lay foundation under Arthur/Wills to admit unpaid/discounted amounts Reversed in part: trial court abused discretion admitting written-off portions without proper foundation; those portions are not recoverable without foundation
4. Appropriate remedy for improper admission of written-off amounts If error, court can remit excessive verdict or order new trial on damages Amount awarded includes improperly admitted sums; ask remittitur to paid-only amounts or new trial Remanded: trial court must order remittitur for the written-off portions if plaintiff consents; if plaintiff refuses, reverse and remand for new trial on damages only

Key Cases Cited

  • Wrobel v. City of Chicago, 318 Ill. App. 3d 390 (Ill. App. Ct.) (duty/breach may be decided as a matter of law when no genuine factual dispute exists)
  • Arthur v. Catour, 216 Ill. 2d 72 (Ill.) (plaintiff may present full billed medical charges to jury but must meet foundational reasonableness requirements)
  • Wills v. Foster, 229 Ill. 2d 393 (Ill.) (clarifies application of collateral-source rule and foundational proof for discounted/written-off medical bills)
  • Peterson v. Lou Bachrodt Chevrolet Co., 76 Ill. 2d 353 (Ill.) (historic rule that free medical services were not recoverable; considered in context of modern approaches)
  • Tri-G, Inc. v. Burke, Bosselman & Weaver, 222 Ill. 2d 218 (Ill.) (if plaintiff refuses remittitur, the proper alternative is a new trial limited to damages)
Read the full case

Case Details

Case Name: Klesowitch v. Smith
Court Name: Appellate Court of Illinois
Date Published: Mar 17, 2016
Citations: 2016 IL App (1st) 150414; 52 N.E.3d 365; 402 Ill. Dec. 444; 1-15-0414
Docket Number: 1-15-0414
Court Abbreviation: Ill. App. Ct.
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    Klesowitch v. Smith, 2016 IL App (1st) 150414