244 So. 3d 800
La. Ct. App.2017Background
- Plaintiff Dustin Patterson was injured in a 2014 car accident; the other driver (Cloinger) was found 100% at fault by a jury.
- Patterson settled pretrial with Cloinger, Cloinger’s liability insurer (State Farm), and vehicle owner CLOCO for $50,000, and received $60,000 in UM benefits from his insurer ANPAC tendered pretrial — total pretrial receipts = $110,000 (stipulated to be credited against any ANPAC judgment).
- At trial against ANPAC (plaintiff’s UM carrier), the jury awarded $13,632.63 for past medicals, $5,000 for future medicals, and $5,000 for pain and suffering (total $23,632.63).
- Before trial, the court granted ANPAC’s motion in limine excluding evidence of medical charges above the contractual discounted amounts paid by Patterson’s health insurer (Blue Cross); medical providers had billed $63,072.88 but accepted $13,632.63, a $49,440.25 write‑off.
- Patterson argued the collateral source rule entitled him to recover the full undiscounted medical charges (including write‑offs) because he paid premiums to obtain the insurance that produced the discounts; the trial court relied on Hoffman in excluding the write‑offs.
- The appellate court held the limine ruling was erroneous (collateral source applies where plaintiff’s patrimony was diminished by premiums), but the error was harmless because the increased award (if allowed) would still be less than Patterson’s $110,000 pretrial recoveries; judgment affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether evidence of medical charges in excess of insurer‑paid, contracted rates (the "write‑off") may be presented to the jury | Patterson: collateral source rule permits recovery of full billed charges (including write‑offs) because he paid premiums and thus suffered patrimonial diminution | ANPAC: Balance Billing Act and Hoffman limit collateral source application; plaintiff cannot recover write‑offs negotiated by insurer or barred by statute | Court: Trial court erred to exclude write‑offs; collateral source applies where plaintiff paid for benefits via premiums (Hoffman limited to its facts) |
| Whether the evidentiary error was prejudicial (requires reversal) | Patterson: seeks increase of jury award to undiscounted medical amounts | ANPAC: even if error, pretrial settlements ($110,000) exceed any increased award so plaintiff suffered no prejudice | Court: Error harmless — revised damages would still be less than $110,000; judgment affirmed |
Key Cases Cited
- Hoffman v. 21st Century North America Insurance Co., 209 So.3d 702 (La. 2015) (supreme court decision limiting collateral source application to attorney‑negotiated write‑offs in that case)
- Bozeman v. State, 879 So.2d 692 (La. 2004) (articulates collateral source rule and its policy rationale, including patrimonial diminution analysis)
- Rabun v. St. Francis Medical Center, Inc., 206 So.3d 323 (La. App. 2 Cir. 2016) (explains Balance Billing Act effect on providers but distinguishes it from collateral source analysis for plaintiffs)
- Griffin v. Louisiana Sheriff's Auto Risk Ass'n, 802 So.2d 691 (La. App. 1 Cir. 2001) (applies collateral source to contractual write‑offs procured by insurer where plaintiff paid premiums)
- Anderson v. Ochsner Health System, 172 So.3d 579 (La. 2014) (discusses Balance Billing Act prohibiting providers from collecting amounts above contracted reimbursement)