Florida Supreme Court On Evidence Of Collateral Source Benefits

Ruling Makes It More Difficult for Defendants to Deal with Claims for Future Medical Expenses at Trial

It is not uncommon for a defendant in a product liability case at trial to be faced with an inflated and exaggerated claim for future medical expenses for the injured plaintiff. In those instances, the defendant will want to show that the plaintiff will be entitled to receive benefits from collateral sources in the future, which reduces the overall amount the plaintiff can recover from the defendant if it is found liable.

The Florida Supreme Court recently handed down a decision we believe will change the way personal injury claims are tried in Florida. In general, benefits awarded to the plaintiff from collateral sources are not admissible at trial under Florida law. This type of evidence is regarded as highly prejudicial to the plaintiff's case. However, there are exceptions to this exclusionary rule, and in the past a defendant in a personal injury case was able to introduce evidence of benefits the plaintiff will receive from Medicare.

The Florida Supreme Court in John Joerg, Jr., etc., et al. v. State Farm Mutual Automobile Insurance Co., No. SC13-1768 (October 15, 2015), has made one exception even more narrow. In Joerg, it was held that all defendants are precluded from introducing evidence regarding collateral source benefits that plaintiffs may receive in the future from social legislation, such as Medicare and Medicaid. The decision receded from the Court's prior decision in Florida Physician's Insurance Reciprocal v. Stanley, 452 So. 2d 514 (Fla. 1984), which had allowed limited admission of evidence concerning certain free or low-cost future collateral source benefits. Given the fact that most plaintiffs will be entitled to receive Medicare benefits at a certain stage in their lives, the Joerg decision has significant ramifications. This is particularly concerning to those who defend product liability cases stemming from serious accidents, which often involve claims for future medical expenses.

Background

Florida law generally holds that evidence of collateral source benefits is not admissible because it will likely confuse the jury. However, Florida Statute §768.76 requires the court to reduce the jury verdict by any collateral source benefits received by the plaintiff. There is no reduction of collateral source benefits for which a subrogation or reimbursement right exists, and the reduction shall be offset to the extent of...