Smith v. Mahoney & Richards

SEITZ, Justice:

I. Introduction

The collateral source rule excludes from a jury’s consideration payments or compensation received by a tort plaintiff from a source independent of the wrongdoer. Even though the rule might result in the wrongdoer paying for expenses already paid to the plaintiff by a third party, the law has historically allowed the plaintiff a double recovery, reasoning that imposing maximum liability has a deterrent effect, and the wrongdoer should not benefit from the plaintiffs good fortune of having another source of compensation.

When a plaintiff claims medical expenses as…