In February, lawyers in the Mississippi House of Representatives passionately debated whether or not to approve House Bill 481 (nicknamed the “Phantom Damages Bill”), a proposed tort reform law that would significantly impact personal injury litigation in our state. This bill would change how injured plaintiffs seeking compensation in Mississippi courts can prove their injuries. If passed, House Bill 481 would allow personal injury plaintiffs to only claim medical damages for medical bills they paid for. Individual injury plaintiffs in Mississippi can claim compensation for all their medical expenses, regardless of who paid for them. Our current rule exists in large part thanks to the collateral source doctrine.
The Collateral Source Doctrine
In personal injury cases there is a long-standing legal principle, referred to as the “collateral source doctrine”, that prohibits personal injury defendants from introducing evidence in court that the injured party (i.e. the plaintiff) has already received compensation for their injuries from some source other than the defendant. This rule exists because, in the United States, a personal injury plaintiff’s recovery from the defendant(s) named in their lawsuit is not reduced if the plaintiff also receives compensation from a collateral source. For example, suppose an injured plaintiff’s insurance paid for medical treatments that the plaintiff needed due to his or her injuries. In that case, the plaintiff can still recover the cost of those treatments from a negligent defendant.
Arguments for and Against Proposed House Bill 481
A recent article from the Jackson Free Press summarizes the key arguments made in the Mississippi House of Representatives for and against the proposed Phantom Damages Bill. Essentially, opponents of the bill argued that if the Phantom Damages Bill were passed, it would eliminate the collateral source doctrine, which has played an essential role in personal injury litigation in our state for years. They also noted that the bill would primarily hurt poor individuals who can not afford health insurance or their medical bills and that hospitals and doctors would be negatively impacted. On the other hand, proponents of the bill claim that this proposed tort reform measure is essential because it will prevent unscrupulous personal injury plaintiffs from holding up false medical bills in court and being awarded phantom damages.
Eventually, lawmakers in the House passed the Phantom Damages Bill 63-56, and the bill is now in the Senate’s hands.
Need Legal Advice?
Were you or a loved one injured due to someone else’s negligence? If so, personal injury attorney Derek L. Hall is here to help you recover the compensation you are legally entitled to. At Derek L. Hall, PC, we handle a wide variety of personal injury cases, including car accidents, premises liability, medical malpractice, and product liability. To be as transparent as possible about our legal services, our firm offers prospective clients a free, no-obligation initial consultation during which we will discuss your case, outline your legal options, and let you know precisely what you can expect when you work with our firm. To schedule your free consultation, contact our Jackson office at (601) 202-2222.
