This will be of no interest to patent practitioners, but to attorneys who prepare and try personal injury cases this case will have great significance.
House Bill 4, which was enacted by the Texas Legislature in 2003 was an omnibus tort reform bill which included an amendment to the Texas Civil Practice and Remedies Code adding section 41.0105, which states, “In addition to any other limitation under law, recovery of medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.”
In Self v. Wal-Mart Stores, Inc., 2:05cv301, Magistrate Judge Love was presented (in the context of a motion in limine asking to exclude evidence of what of the plaintiff's medical bills were "written off" by Medicare or Medicaid (the opinion isn't clear which applies in this case, and the issue would apply to private health insurance as well). The collateral source rule prohibited such evidence prior to 41.005 - the question was whether the new statute changed that. Judge Love noted that plaintiff's counsel conceded that the sponsors of the bill intended to do away with the collateral source rule, but it was unclear whether the winnowed-down version of the bill that was actually passed did that, i.e. whether "incurred" meant that full amount of the medical bill was recoverable or only the part that that was not written off. Judge Love reviewed Texas caselaw on the meaning of "actually incurred" in this context, and concluded that "[u]ntil the Texas legislature speaks more clearly to this issue, the Court is reluctant to overturn well-settled law that the language 'incurred' means the full amount of a plaintiff's medical bills, even when the amount is ultimately paid by insurance or written off.
Update: The Texas Legislature is considering an amendment to this section due in part to exactly the issues addressed by Judge Love. Yesterday CSHB 3281, by Representative Phil King (R - Weatherford), was passed out of the
House Civil Practices Committee yesterday with no dissenting votes.
The version that passed stipulates that Section 41.0105 of the Texas Civil
Practice and Remedies Code only applies to health care liability claims under
Chapter 74 (which would virtually eliminate the provision's applicability to cases in federal court). Click on Download 041907cshb3281.pdf
to download the Committee Substitute for HB 3281.
(Until the Committee report is filed, this language is unofficial). The bill now
goes to the House Calendars Committee to be scheduled for floor consideration.
Watch out for flying Sparks...
No, it's not from an Eastern District judge, but anytime a judge thinks enough of a motion to write an order in verse, it's worth reading. Download sparks_poem.pdf
Posted by Michael C. Smith on April 30, 2007 at 04:29 PM in Commentary | Permalink | Comments (0)