What is the collateral source rule?

The collateral source rule is a legal principle that is used to protect victims in Washington who are injured due to someone else’s negligent behavior. Under this rule, a person who has suffered an injury can receive compensation from a third party that is not involved in the accident, such as their health insurance, without having to repay the negligent party for those expenses. This protects victims from having to pay out-of-pocket for medical bills and lost wages resulting from the injury. Generally speaking, the collateral source rule is applied in a negligence case, when a plaintiff is injured due to the defendant’s carelessness or recklessness. The plaintiff is entitled to receive any compensation from a third-party payer, such as health insurance, disability insurance, workers’ compensation benefits, and other forms of compensation, without having to repay the negligent party for those expenses. In Washington, courts have also held that the collateral source rule applies to punitive damages, so that a plaintiff in an accident case may receive punitive damages without having to reimburse a negligent party for any of their costs. This means that victims of negligence can be adequately compensated for their injuries, with the negligent party being held fully accountable for their actions.

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What is the collateral source rule?

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