In Alabama auto accident injury cases, the purpose is to compensate victims for actual losses caused by the defendant. A substantial part of that typically involves payment of reasonable and necessary medical expenses incurred by the injured party as a result of defendant’s negligence.
These medical bills have to be authenticated and there has to be competent medical testimony as to the necessity of those treatments. In some states, defendants can benefit from certain write-offs or adjustments that are deducted from the medical provider’s charges due to insurance contractors. However in Alabama, we follow the collateral source rule, which states benefits received by plaintiff from a wholly independent source (i.e., the insurance company), shouldn’t diminish the damages otherwise recoverable by the wrongdoer. So payments or credits received by a third-party payor aren’t credited against defendant’s liability.
California, where the case of Uspenskaya v. Meline was recently heard by the Third Appellate District in Sacramento, allows collateral source evidence as well, but there are some exceptions. Continue reading