Smith v. Jeppsen
277 P.3d 224
Colo.2012Background
- Smith sued Jeppsen for negligence seeking past and future medical expenses; insurer State Farm intervened and paid medical expenses for Smith.
- Trial court initially allowed evidence of both billed amounts and insurer payments of medical expenses.
- Effective date of section 10-1-135 is August 11, 2010; recovery remained pending as of that date in this case.
- Section 10-1-135(10)(a) is argued to apply post-verdict only, but the court held it applies pre-verdict as well.
- Court held the statute applies prospectively to pending recoveries and codifies the pre-verdict collateral source rule by excluding collateral source payments evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 10-1-135 apply prospectively here? | Smith argues no retroactivity; recovery was pending before 2010. | Jeppsen argues statute should not affect pre-August 2010 actions. | Yes; applies prospectively. |
| Does 10-1-135(10)(a) apply to pre-verdict submissions? | Smith contends statute governs post-verdict only. | Jeppsen contends it applies post- and pre-verdict. | Yes; applies pre-verdict. |
| Does subsection 10-1-135(10)(a) codify the pre-verdict collateral source rule? | Codification favors exclusion of collateral-source evidence. | Codification not intended to alter pre-verdict rule. | Yes; codifies pre-verdict collateral source rule. |
Key Cases Cited
- Carr v. Boyd, 123 Colo. 350, 229 P.2d 659 (1951) (pre-verdict collateral source rule established; benefits from collateral sources excluded from damages)
- Eichel v. New York Central Railroad Co., 375 U.S. 253 (1963) (collateral source evidence is inadmissible to reduce damages and prejudicial if admitted)
- Volunteers of America v. Gardenswartz, 242 P.3d 1080 (Colo. 2010) (pre-verdict collateral source rule recognized; exclusionary principle applied)
- Moyer v. Merrick, 155 Colo. 73, 392 P.2d 653 (1964) (early Colorado collateral source rule; benefits from outside source not to be considered)
- Wal-Mart Stores, Inc. v. Crossgrove, 2012 CO 31, 276 P.3d 562 (Colo. 2012) (pre-verdict collateral source evidentiary issue consistent with rule)