HB1822
To Require A Plaintiff's Verdict In A Tort Action To Be Reduced Due To Payment By A Collateral Source.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
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AI-Generated Summary
House Bill 1822 mandates that in tort actions, a court must reduce a plaintiff's awarded damages by the amount they have received or will receive from collateral sources, such as other individuals, corporations, insurance companies, or funds. The bill aims to prevent double recovery for the same injury or damage by adjusting the verdict to reflect compensation already provided by external parties. However, the bill specifically excludes payments from benefits that were paid for by, or on behalf of, the plaintiff under a private contract from this mandatory reduction. Following the reduction, the court is directed to enter the final judgment based on the adjusted amount. This legislation effectively limits the total compensation a plaintiff may recover when third-party sources have already provided financial indemnity.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be defendants in tort actions and their liability insurance providers. By requiring that jury awards be reduced by the amount of compensation already provided by collateral sources, defendants are relieved of the financial burden of paying for damages that have already been covered, thereby lowering their overall litigation and settlement costs.
Who Might Suffer?
Plaintiffs in tort actions who have received compensation from third-party sources (excluding those they personally contracted and paid for) would be negatively impacted by this bill. These individuals would see their jury-awarded damages reduced, effectively limiting the total compensation they can receive for their injuries, property damage, or the loss of a loved one.
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