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Smith v. Shaw4/12/2005
Opinion Vote: AFFIRMED.
White, C. J., Wolff, Stith, Teitelman and Limbaugh, JJ., concur.
Price, J., not participating.
Opinion:
Charles G. Shaw ("Motorist") appeals from the judgment entered on the jury's verdict in favor of Joshua Smith ("Passenger") in Passenger's personal injury suit against Motorist arising from an automobile accident. Motorist was the driver of the vehicle that struck the vehicle in which Passenger was riding. Passenger's driver was insured by Farmers/Mid-Century ("Farmers"), which settled with Passenger before he filed suit against Motorist. Farmers paid Passenger the bodily injury liability limit of $25,000 and the underinsured motorist ("UIM") benefit of $25,000 available under the driver's insurance policy.
A jury trial on Passenger's claims against Motorist resulted in a $200,000 verdict in Passenger's favor. Motorist moved the trial court to credit the verdict by both the $25,000 bodily injury benefits and the $25,000 UIM benefits that Passenger had received from Farmers. The trial court, however, credited only the bodily injury benefits and awarded Passenger actual damages of $175,000 and $41,337.70 in prejudgment interest. Motorist appeals, arguing that the trial court erred in refusing to also credit the judgment for the $25,000 UIM benefits. Motorist also asserts the trial court erred in overruling his motion to amend the judgment to eliminate the award of prejudgment interest. After opinion by the Court of Appeals, Western District, this Court granted transfer. Mo. Const. art. V, sec. 10. This Court finds no error and affirms the judgment of the trial court.
I. Should the judgment have been credited for the UIM benefits?
Motorist's first point asserts that the trial court erred in refusing to credit the judgment by the $25,000 UIM benefits that Farmers paid Passenger because the UIM benefits did not constitute a collateral source payment in that Passenger did not incur any expense, obligation, or liability in securing the Farmers policy under which the UIM benefits were paid.
This issue presents an issue of law, and this Court gives de novo review to questions of law. Delta Air Lines, Inc. v. Dir. of Revenue , 908 S.W.2d 353, 355 (Mo. banc 1995).
The collateral source rule is an exception to the general rule that damages in tort are compensatory only. Washington ex rel. Washington v. Barnes Hosp. , 897 S.W.2d 611, 619 (Mo. banc 1995). The collateral source rule prevents a tortfeasor from reducing his liability to an injured personby proving that payments were made to the person from a collateral source. Id. The collateral source rule is not a single rule, but is instead a combination of rationales applied to a number of different circumstances to determine whether evidence of mitigation of damages should be precluded from admission. Id.
The application of the collateral source rule prevents an alleged tortfeasor from attempting to introduce evidence at trial that the plaintiff's damages will be covered, in whole or in part, by the plaintiff's insurance. Id. The rule expresses the policy that a "wrongdoer should not benefit from the expenditures made by the injured party in procuring the insurance coverage." Duckett v. Troester , 996 S.W.2d 641, 648 (Mo. App. 1999).
Motorist asserts that the collateral source rule should not be applied to prevent a credit to the judgment in this case because Passenger incurred no expense, obligation, or liability in obtaining the UIM benefits. Motorist's arguments regarding the collateral source rule in this context, however, are irrelevant. The collateral source rule is a rule of evidence . Motorist
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