What is the collateral source rule?

The collateral source rule is a concept of law related to personal injury claims in Hawaii. Basically, it states that if an injured person receives compensation from a third party, such as insurance, for the costs associated with an injury, that money cannot be used to reduce the amount of damages for which the defendant is liable. For example, if a plaintiff in a personal injury lawsuit has medical insurance, and the insurance pays some of the costs related to the injury, the defendant cannot use the insurance payments to reduce the damages they would otherwise owe. In other words, the defendant cannot benefit from the payments made by the collateral source. The collateral source rule can also apply to other types of compensation, such as disability payments or worker’s compensation. In most cases, these payments cannot be used to reduce the damages the defendant owes to the injured person. In Hawaii, the collateral source rule is based on the idea of fairness. The defendant should not be able to benefit from compensation provided by third parties, as this would be an unfair advantage. The rule protects the injured party and ensures that they are adequately compensated for their losses.

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What is the collateral source rule?

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