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Subject: August 17 2006 LBL Weekly Law Resume

Low, Ball & Lynch’s

WEEKLY LAW RESUME

August 17, 2006  Issue  By: Ray Coates

 

Damages - Evidence of Total Amount of Medical Bills

 

Greer v. Buzgheia

(August 1, 2006)

 

Court of Appeal, Third District

 

Under the cases of Hanif v. Housing Authority (1988) 200 Cal App. 3d 635 and Nishihama v. City and County of San Francisco (2001) 93 Cal App. 4th 298, a plaintiff in a tort action cannot recover more than the amount of medical expenses actually paid or incurred, even if the billable or market value of the medical expenses is a greater sum. Defendants have relied on these cases to exclude evidence of the amount of plaintiff’s medical bills exceeding the amount paid.

 

In this case, the question was whether a jury should receive evidence of the total amount of medical bills charged to plaintiff, not just the amount of medical bills actually paid. Plaintiff Robert Greer was injured when Defendant Hossam Ali Buzgheia’ vehicle collided with Greer’s vehicle. Greer filed suit against Buzgheia and claimed a low back injury, necessitating spinal fusion surgery. Greer incurred medical bills of $216,000. Prior to trial, Greer’s employer reached a compromise agreement with Greer’s medical providers to satisfy his entire medical tab for the sum of $132,984.92.

 

Defendant brought a motion in limine to exclude Greer from submitting evidence of medical bills exceeding the amount of money which the medical providers agreed to accept as payment in full. Defendant argued that the jury should not be permitted to hear evidence that the reasonable value of the medical services exceeded the amount paid, because no one was obligated to pay the difference. The trial court denied the motion.

 

At trial, the jury heard evidence of the amount of medical expenses billed and that the amount was reasonable. The special verdict form lumped medical expenses together with wage loss and other economic damage. Plaintiff prevailed and was awarded the total sum of $321,500. Defendant appealed. The Third District Court of Appeal affirmed the judgment.

 

On appeal, Defendant contended that the trial court erred by denying his motion in limine to limit the evidence of the amount of Greer’s medical bills to what was actually paid. The Third District held that the trial court correctly denied Defendant’s motion in limine and that a jury should receive evidence of the total amount of medical expenses charged to a plaintiff in addition to evidence of the amount actually paid. The Court of Appeal further held that a trial court may reduce the amount of medical expenses awarded to a plaintiff as economic damages in a post-trial motion pursuant to Hanif and Nishihama.

 

Interestingly, Defendant Buzgheia filed a post trial motion to reduce the amount of Greer’s economic damages. The post-trial motion was denied by the trial court because the verdict form presented to the jury did not separate an award of medical expenses from an award of lost earnings when awarding past economic loss to Greer. The Court of Appeal ruled that the trial court properly denied the post-trial motion because it was not possible to determine the amount of past medical expenses which the jury awarded to Greer. The judgment in favor of Greer was therefore affirmed.

 

COMMENT

 

This decision allows plaintiffs to introduce evidence of the billed or market amount of medical bills at trial, even though a plaintiff may not recover more than the actual amount paid. Defendants must now file a post-trial motion to reduce excessive awards of medical specials. We anticipate that this issue will eventually be addressed by the California Supreme Court.

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