Collateral Source Rule

Pronunciation: kuh-LAT-er-ul SORS ROOL

Torts › Damages

Definition

Benefits plaintiff receives from sources independent of tortfeasor do not reduce defendant's liability. Insurance payments, sick leave, gifts, medical benefits from employment don't offset damages. Prevents tortfeasor from benefiting from plaintiff's foresight in obtaining insurance or other benefits. Some states modified by statute.

Related terms

• Economic Damages — Compensatory damages for quantifiable monetary losses. Includes past and future medical expenses, lost wages, lost earning capacity, property…
• Damages — The fourth and final element of negligence, requiring proof that the plaintiff suffered actual harm or loss. Damages…
• Joint and Several Liability — A doctrine holding multiple defendants each liable for the full amount of plaintiff's damages when they act in…

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