The San Francisco Chronicle reports that the California Supreme Court has agreed to hear the appeal of a company whose insurer was ordered to pay the full cost of treating an accident victim.
The outcome of the Supreme Court's decision in Howell v. Hamilton Meats, will likely have a major impact on almost every personal injury matter in Marin County and all over California, by affecting how medical damages are calculated.
For many years, California courts have unfairly limited a victim's recovery of medical damages to the "discounted amount" paid by the insurance company. The discounted amount is the actual payment amount a hospital is willing to accept from an insurance company in exchange, for example, for business or prompt payment. This amount is often significantly less than the victim's actual medical bills.
In a rare victory for accident victims, in November the state appeals court in San Diego determined that an injured person who has insurance could recover the full cost of treatment from the person responsible for the injury.
In Howell v. Hamilton Meats, a woman - Rebecca Howell - was injured when a truck made an illegal U-turn and hit her car. Her medical bills for surgery and treatment at 2 separate hospitals totaled $190,000, but the hospitals agreed to accept $60,000 from Howell's insurer. In a 3-0 decision, the state appeals court determined that Howell was entitled to the full $190,000, in part because it was her foresight in getting health insurance that allowed for the discount in the first place. The court reasoned that Hamilton Meats shouldn't reap the benefits of Howell's planning.
The California Supreme Court granted review of this decision on March 11.
As a California Personal Injury attorney concerned that accident victims receive the full compensation they deserve, I will be following this case closely and reporting on how the California Supreme Court's ruling will affect the recovery of medical damages.
