Collateral Source Rule Insurance Payment Offset Information
Historical rule: the defendant could not: present evidence of the plaintiff's insurance or other benefits (the defendant could not: argue that the plaintiff was already compensated by insurance). Florida's modification: Florida has partially abrogated the collateral source rule (under §768.76: the court shall reduce damages by: the amount of collateral source payments), but the plaintiff may: present evidence that they have: paid premiums or earned benefits (the reduction is offset by: the amount the plaintiff paid for the collateral source coverage). Effect: if the plaintiff's health insurance paid $50,000 of medical bills: the damages are reduced by $50,000 (under §768.76), but the plaintiff may: argue the reduction should be offset by: the premiums paid for that insurance.
Florida Legal Definition
The collateral source rule in Florida is governed by Florida Statutes §768.76 (Collateral Sources of Indemnity). Under §768.76(1): the court shall reduce damages by: the total of all amounts which have been paid for the benefit of the claimant from all collateral sources. Under §768.76(2): the amount of reduction shall be: offset by: premiums or costs paid by or on behalf of the claimant. Under Florida case law: the statute changed the traditional common law rule (which prohibited: any reduction for collateral sources). Under Florida practice: the reduction is calculated after the verdict (the court applies the reduction to the jury's award). Under Florida practice: the defendant may not: mention collateral sources to the jury (the reduction is applied by the court post-verdict).
How It's Used in Practice
Attorneys manage collateral source issues. For plaintiffs: document all premiums paid for insurance and benefits, present the premium evidence to offset any reduction, argue the reduction should be minimized, and protect the full verdict amount. For defendants: identify all collateral source payments (insurance, disability, and employer benefits), calculate the reduction under §768.76, present the collateral source evidence post-verdict, and seek the maximum reduction. The attorney advises: Florida has partially abrogated the collateral source rule; damages are reduced by collateral payments but offset by premiums; document all premiums; the reduction is applied post-verdict by the court.
Key Takeaways
- §768.76: FL collateral source reduction statute.
- Damages reduced by collateral payments (insurance, etc.).
- Offset by premiums paid by plaintiff.
- Reduction applied post-verdict by court.
- Defendant may not mention to jury.
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Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC