Collateral Source Rule Legal Definition

What is the Collateral Source Rule?” 

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  • Collateral Source Rule
Collateral Source Rule Legal Definition

© By Chris Potter

Collateral Source Rule legal definition: Under collateral source rule, the reduction of damages awarded to an injured party cannot be reduced by the amount of compensation available to them through their insurance company or other independent sources. 

In other words, the collateral source rule is a law in state jurisdictions that prevents the reduction of damages awarded to a plaintiff for injury, illness, or disability by the amount already recovered from a third party such as an insurer.

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Collateral Source Rule in Medical Malpractice Cases

The collateral source rule affects medical malpractice and personal injury cases in much the same way. In the majority of courts, plaintiffs are required to share the monetary compensation they have received (or will receive) from third parties such as insurance companies or even friends and family. The collateral source rule differs from state to state, but generally, a defendant may ask for the rule to be placed in effect if it hasn’t been already. Contact a Pittsburgh medical malpractice lawyer today to review your case: 800-392-4529




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