In Howel v. Hamilton, 179 Cal.App.4th 686 (2009), the court was presented with the issue of whether a post-judgment order by the trial court reducing a judgment of special damages. for the plaintiff because her providers had accepted as full payment an amount less than what was actually billed was in violation of the collateral source rule.
In layman terms what the collateral source rule.states is that, a party who has been made whole already from a collateral source, such as a plaintiff receiving benefits from his/her own private health insurance policy should still be allowed to, in addition, to that recovery be able to recover from the defendant tortfeasor. In other words, the defendant is still liable for all damages incurred as a direct cause of his act...
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