In personal injury cases, one of the biggest questions that a jury must determine is how much a plaintiff should get, if anything, in damages. Damages are usually the collection of costs like medical bills, lost wages, pain and suffering, damage to property, and other expenses that a plaintiff has incurred. In some instances, however, the amount that the plaintiff was initially charged for an expense is not the same as the amount that was ultimately paid. For example, perhaps a car dealership quoted the plaintiff a certain price, but the plaintiff’s friend agreed to cover half the cost. In these types of situations, a common question in calculating damages is whether the jury should look at the total expense incurred or the total expense paid.
In a recent Tennessee car accident case, the Tennessee Court of Appeals addressed this precise question. At the time, A.S. and L.S. were driving their vehicle when they were hit by a truck driven by a Tennessee Department of Transportation employee. The employee turned in front of their car without giving them time to stop, and they experienced both physical injuries and damage to their property. At the time of trial, A.S. and L.S. both presented evidence of their medical bills to support their claim for damages based on medical expenses. The Department of Transportation argued that both plaintiffs had received medical discounts on their bills, and the amount of those discounts should be provided to the jury under a Tennessee statute that provided for the presentation of “actual damages.”
In response, A.S. and L.S. argued that the collateral source rule prevented defendants from using evidence that a debt had been reduced or forgiven. The idea behind the rule is that the true measure of the damages a plaintiff has faced is the damages that were billed, even if those bills were later decreased. Ultimately, the jury was allowed to review evidence of the full amount billed, and the Department of Transportation appealed.