Sunahara v. State Farm Mutual Automobile Insurance Co.
280 P.3d 649
| Colo. | 2012Background
- Sunahara, insured with State Farm, was injured in a Mallard-driver collision; he had UIM coverage under his policy.
- State Farm paid about $14,000 to satisfy Sunahara's medical bills, though providers billed over $50,000.
- Mallard settled with his insurer for $100,000, the policy limit.
- Sunahara pursued a UIM claim; discovery sought the insurer's unredacted claim file, including reserves, settlement authority, and liability assessments.
- Trial court admitted evidence of the amounts paid by the collateral source; Sunahara unsuccessfully moved to compel disclosure of the unredacted claim file; the jury found Sunahara 25% at fault with various damages, including past economic damages of $0.
- The court of appeals affirmed; the supreme court held inadmissible the amounts paid evidence under the collateral source rule, and upheld the non-discoverability of the redacted claim file, remanding for a new trial on past economic damages only, while affirming the non-discoverability under Silva for reserves and fault evaluations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Collateral source evidence admissibility | Sunahara argues amounts paid by State Farm should be inadmissible under the collateral source rule | State Farm contends the evidence is admissible under Kendall as determining reasonable value | Admissibility rejected; pre-verdict collateral source evidence excluded; remand for new trial on past economic damages. |
| Discoverability of unredacted claim file | Sunahara seeks redacted fault assessments and reserve data to prove liability and damages | Silva protects reserves, settlement authority, and fault assessments from discovery | Denied; reserves, settlement authority, and underlying liability assessments not discoverable in UIM action; remand limited to damages. |
Key Cases Cited
- Kendall v. Hargrave, 142 Colo. 120 (Colo. 1960) (reasonable value rule; collateral source context)
- Crossgrove v. Wal-Mart Stores, Inc., 276 P.3d 562 (Colo. 2012) (pre-verdict collateral source component controls; discovery limits in collateral source cases)
- Silva v. Basin Western, Inc., 47 P.3d 1184 (Colo. 2002) (reserves/settlement authority not discoverable in third-party claims; extends to related internal assessments in first-party actions (context))
- Sunahara v. State Farm Mut. Auto. Ins. Co., No. 09CA0599, slip op., 2010 WL 1796501 (Colo. App. 2010) (unpublished; collateral source and discovery issues reviewed by Supreme Court)
- Silva v. Basin Western, Inc., 47 P.3d 1184 (Colo. 2002) (distinguishes third-party vs. first-party claims; informs discovery scope of insurer reserves and fault data)