Collateral Source Rule – Prohibiting an Injured Plaintiff from having Its Cake and Eating It too

The collateral source rule is the source of unnecessary confusion. This rule is aimed at preventing an injured-plaintiff from having its cake and eating it too – from receiving a windfall from the defendant-tortfeasor based on compensation the plaintiff received from collateral sources. The collateral source rule allows an injured plaintiff to present all of its damages to the trier of fact (jury) irrespective of payment the injured party received from a collateral source (e.g., insurance, social security, etc.). Evidence of payments the injured plaintiff received from a collateral source is inadmissible at trial due to the confusion that could result...