Sanchez v. Strickland
200 Cal. App. 4th 758
| Cal. Ct. App. | 2011Background
- Trial court reduced Pedro Hueso's past medical expenses from the amount billed to the amount paid under Medicare/Medicaid; the reduction concerning Medi-Cal was not challenged by plaintiffs.
- Defendants argued the appeal was untimely and that Hanif was extended to Medicare bills; plaintiffs contended the amended judgment constituted a substantial modification restarting the appellate period.
- The jury originally awarded $1,339,569 for past medical expenses; after adjustments, the amended judgment reduced Pedro Hueso's recovery to $169,862.55, reflecting his 30% fault.
- An April 28, 2010 amended judgment increased Pedro Hueso’s award by acknowledging a $7,020 gratuitous writeoff by a medical provider (Vibra Healthcare), but this amount was later subjected to fault reduction.
- The court ultimately held that Howell applies to Medicare writeoffs, enabling recovery of the writeoff amount as part of collateral source benefits, net of the plaintiff’s fault.
- The final disposition modified the amended judgment to $174,776.55 for Pedro Hueso, reflecting the writeoff adjustment, and affirmed the judgment as modified.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of appeal after amended judgment | Amendment caused substantial modification restarting appeal period | Amendment did not substantially modify; timing untimely | Amended judgment contained substantial modification; timely appeal |
| Collateral source rule as to Medicare benefits | Medicare payments should be treated as collateral source benefits; reductions inconsistent with Howell | Howell applies; Medicare writeoffs reduce damages | Howell extends to Medicare; damages reduced to reflect Medicare payments |
| Gratuitous writeoffs recoverability | gratuitous writeoffs should be recoverable under collateral source rule | No recovery for gratuitous writeoffs beyond insurance-based reductions | Gratuitous writeoffs recoverable; adjust verdict accordingly |
Key Cases Cited
- Howell v. Hamilton Meats & Provisions, Inc., 52 Cal.4th 541 (Cal. 2011) (collateral source rule; private insurance treatment extends to Medicare/writeoffs)
- Hanif v. Housing Authority, 200 Cal.App.3d 635 (Cal. App. 1988) (collateral source rule and recovery of value of medical services)
- Arambula v. Wells, 72 Cal.App.4th 1006 (Cal. App. 1999) (gratuitous payments and collateral source rule)
- Dakota Payphone, LLC v. Alcaraz, 192 Cal.App.4th 493 (Cal. App. 2011) (substantial modification test for amended judgments restarting appeal period)
- Stone v. Regents of University of California, 77 Cal.App.4th 736 (Cal. App. 1999) (definition of substantial modification to judgments)
- CC-California Plaza Associates v. Patter & Goldstein, 51 Cal.App.4th 1042 (Cal. App. 1996) (materially affect the rights of the parties in judgment amendments)