Howell v. Hamilton Meats & Provisions, Inc.

Rebecca Howell (plaintiff) was injured by an employee of Hamilton Meats & Provisions (defendant) and was billed $189,978.63 for medical treatment, but her private insurer, PacifiCare, had negotiated reimbursement agreements with the treating facilities that resulted in $130,286.90 of the billed amount being written off entirely. Hamilton admitted fault but argued Howell couldn't recover the written-off amount. The trial court agreed and deducted the write-off from the award; the appellate court, relying on the collateral-source rule, reversed, holding the deduction improper. Hamilton petitioned the California Supreme Court.