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Insurance — collateral source rule

By: WISCONSIN LAW JOURNAL STAFF//March 7, 2012//

Insurance — collateral source rule

By: WISCONSIN LAW JOURNAL STAFF//March 7, 2012//

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Wisconsin Supreme Court

Civil

Insurance — collateral source rule

An injured party is entitled to recover the reasonable value of medical services, which, under the operation of the collateral source rule, includes written-off medical expenses. “We conclude that the policy distinction between negligence and UIM cases upon which the court of appeals relied does not justify diverging from our case law and limiting the collateral source rule. The holding in Graser that was addressed to the specific factual scenario in that case is not implicated here, where the dispute centers on written-off medical expenses and not a waived subrogation right. The potentially troublesome language in Graser is the court of appeals’ sweeping statement that “the collateral source rule, which finds its genesis in tort law, is inapplicable to claims made by an insured under his or her UIM policy.” 254 Wis. 2d 851, ¶1. This holding is at odds with Wisconsin law on damages, the collateral source rule, and the purpose and function of UIM coverage.”

Affirmed.

2009AP2848 Orlowski v. State Farm Mut. Auto. Ins. Co.

Crooks, J.

Attorneys: For Appellant: Goss, Thomas E., Jr., Milwaukee; For Respondent: Kukor, Kevin J., Milwaukee; Stachowiak, Keith R., Milwaukee

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