Last month, an appellate court in Connecticut issued a written opinion in a car accident case showing how a plaintiff’s award after a favorable personal injury case can be reduced – sometimes unfairly. In the case, Marciano v. Jimenez, the court ultimately determined that the plaintiff’s award should not be reduced due to the right of subrogation, which may result in the insurance company seeking payment from the plaintiff for previously paid benefits.
After an accident, medical costs are usually incurred. Often, an insurance company, or some other “collateral source,” will pay for these costs. Later, if the injured party seeks compensation for their injuries through a personal injury lawsuit and is successful, they will receive compensation for these very same injuries.
Some of that compensation may be designated for the pain and suffering caused as a result of the accident, but other amounts will likely be awarded to reimburse the injured party for the cost of the medical treatment they needed following the accident. If a collateral source paid these medical bills, that party may seek reimbursement from the injured party. This is called subrogation. A recent case serves as a good example.