The collateral-benefit rule is a legal principle in tort law that states if an injured person receives compensation for their injuries from a source other than the wrongdoer, that compensation should not reduce the amount the wrongdoer must pay. Essentially, it ensures that any payments received from insurance, government benefits, or other sources do not diminish the liability of the party responsible for the injury.
The collateral-benefit rule is primarily used in civil law cases, particularly in personal injury claims. It plays a crucial role in determining the damages a plaintiff can recover. This rule is significant in cases involving accidents, medical malpractice, and other torts where an injured party may receive compensation from various sources. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates drafted by legal professionals.
Here are a couple of examples of abatement:
Example 1: A person injured in a car accident receives $20,000 from their health insurance to cover medical expenses. Under the collateral-benefit rule, if they sue the at-fault driver for $50,000 in damages, they can still recover the full $50,000 without deducting the $20,000 received from the insurance.
Example 2: A worker injured on the job receives workers' compensation benefits. If they later sue their employer for negligence, the benefits received will not reduce the amount they can claim for damages in the lawsuit. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Strictly applies the collateral-benefit rule in personal injury cases. |
| Florida | Allows some deductions for benefits received in certain circumstances. |
| New York | Generally follows the collateral-benefit rule, but with specific exceptions. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Collateral-source rule | Another name for the collateral-benefit rule. | No difference; they are synonymous. |
| Mitigation of damages | The obligation of a plaintiff to minimize their losses. | Mitigation relates to reducing losses, while the collateral-benefit rule pertains to compensation received. |
If you believe the collateral-benefit rule applies to your situation, consider the following steps:
Browse our library of 85,000+ state-specific legal templates.
It is a legal principle that prevents compensation received from other sources from reducing the damages owed by a wrongdoer.