The collateral-benefit rule, also known as the collateral-source rule, states that benefits received from a source other than the person responsible for the harm should not be deducted from the compensation received by the harmed individual.
The collateral-benefit rule, also known as the collateral-source rule, is a legal principle that prevents defendants from using compensation or benefits received by the plaintiff from sources other than the defendant as a defence to reduce the damages awarded. For instance, if a person sustains injuries in a car accident and their health insurance covers the medical expenses, the defendant cannot argue that they should not be liable for those costs because the plaintiff already received compensation from their insurance company. Similarly, if a person is injured at work and receives workers’ compensation benefits, the defendant cannot claim that they should not have to pay for the plaintiff’s lost wages because they are already receiving compensation from their employer. These examples demonstrate how the collateral-benefit rule safeguards plaintiffs from having their damages diminished solely due to compensation from another source. This rule ensures that defendants are held accountable for the full extent of the damages they caused, regardless of any other compensation received by the plaintiff.
The collateral-benefit rule is a legal principle that prevents a plaintiff from receiving compensation for damages that have already been compensated through other sources, such as insurance or other benefits.
In personal injury cases, the collateral-benefit rule may reduce the amount of compensation a plaintiff can receive if they have already received benefits from their insurance company or other sources for the same injury.
Yes, the collateral-benefit rule can be applied to various types of cases, not just personal injury cases. It can also be relevant in contract disputes or property damage cases, for example.
Yes, there are exceptions to the collateral-benefit rule. For instance, if the plaintiff has paid premiums for their insurance coverage, they may still be entitled to receive compensation for damages, even if they have already received benefits.
In workers’ compensation cases, the collateral-benefit rule may limit the amount of compensation a worker can receive if they have already received benefits from their employer’s insurance or other sources.
In some cases, the collateral-benefit rule can be waived if both parties agree to do so. However, this would typically require a written agreement or a specific provision in a contract.
The collateral-benefit rule generally applies to benefits that are related to the same injury or damages. It may not apply to unrelated benefits, such as disability benefits for a different injury.
Yes, the collateral-benefit rule can be challenged in court if there are valid grounds to do so. However, it is important to consult with a legal professional to determine the best course of action.
In medical malpractice cases, the collateral-benefit rule may limit the amount of compensation a plaintiff can receive if they have already received benefits from their health insurance or other sources for the same medical expenses.
Yes, the application of the collateral-benefit rule can vary in different jurisdictions. It is important to consult with a local attorney to understand how the rule is applied in your specific jurisdiction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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