The Appellate Division, Second Department Takes a Difficult Look at the Collateral Source Rule

In Kihl v. Pfeffer, the Appellate Division, Second Department recently took a look at the application of the collateral source rule.  One of the defendants in the case was attempting to get a reduction on the jury’s award of over $1 million in the plaintiff’s future medication expenses based on her husband’s current health plan.  The question on appeal was whether
the evidence established with reasonable certainty that the plaintiff would
continue receiving health coverage toward her future medication
expenses, warranting a collateral source reduction.

The Second Department weighed five factors and held that the evidence did not establish reasonable certainty of the coverage continuing for the plaintiff’s expected lifetime.  The Court provided an excellent discussion of the standard "reasonable certainty" as stated in CPLR 4545(c).

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