Senate Bill No. 171–Committee on Judiciary

February 11, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Provides for reduction of damages in action for personal injury or wrongful death based on payment received from collateral source. (BDR 3-337)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to damages in a civil action; providing for the reduction of damages a plaintiff may receive in an action for personal injury or wrongful death based on any payment the plaintiff receives from a collateral source; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 42 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. In an action for damages for personal injury or wrongful death,

1-4 the court shall, before the entry of judgment, hold a separate hearing to

1-5 determine whether the plaintiff, as a result of the personal injury, has

1-6 received a benefit from a collateral source.

1-7 2. If the court determines that the plaintiff has received a benefit

1-8 from a collateral source, the court shall reduce the amount of damages,

1-9 if any, awarded in the action by the amount of the benefit.

1-10 3. Except as otherwise provided in subsection 4, as used in this

1-11 section, "benefit from a collateral source" means any money, service or

1-12 other benefit that is paid, provided or reimbursed or is reasonably likely

1-13 to be paid, provided or reimbursed to the plaintiff for personal injury or

1-14 wrongful death pursuant to:

1-15 (a) A state or federal act that provides benefits for sickness, physical

1-16 injury, dental injury, emotional injury, disability, accidents, loss of

1-17 earnings or workers’ compensation;

2-1 (b) A policy of insurance that provides benefits for sickness, physical

2-2 injury, dental injury, emotional injury, disability, accidents or loss of

2-3 earnings;

2-4 (c) A contract or agreement of a group, organization, partnership or

2-5 corporation that provides benefits for sickness, physical injury, dental

2-6 injury, emotional injury, disability, accidents or loss of earnings; or

2-7 (d) Any other publicly or privately funded program that provides

2-8 benefits for sickness, physical injury, dental injury, emotional injury,

2-9 disability, accidents or loss of earnings.

2-10 4. A benefit from a collateral source does not include a benefit

2-11 received by the plaintiff pursuant to subsection 3 if:

2-12 (a) The provider of the benefit is entitled to recover any amount of the

2-13 benefit from the plaintiff; or

2-14 (b) The provider of the benefit is subrogated to the rights of the

2-15 plaintiff and the provider exercises the right of subrogation by serving a

2-16 notice of lien on the plaintiff before the settlement of or the entry of

2-17 judgment in the action.

2-18 5. The plaintiff shall provide notice of his action for damages for

2-19 personal injury or wrongful death to any statutory holder of a lien.

2-20 Sec. 2. NRS 42.020 is hereby amended to read as follows:

2-21 42.020 1. [Except as otherwise provided in subsection 2, in any] In

2-22 an action for damages for personal injury or wrongful death caused by

2-23 medical malpractice, the court shall, at the time of making the reduction

2-24 required pursuant to section 1 of this act, also reduce the amount of

2-25 damages, if any, awarded in the action [must be reduced] by the amount of

2-26 any prior payment made by or on behalf of the provider of health care

2-27 against whom the action is brought to the injured person or to the claimant

2-28 to meet reasonable expenses [of] for medical care, other essential goods or

2-29 services , or reasonable living expenses.

2-30 2. [In any action described in subsection 1 in which liability for

2-31 medical malpractice is established or admitted, the court shall, before the

2-32 entry of judgment, hold a separate hearing to determine if any expenses

2-33 incurred by the claimant for medical care, loss of income or other financial

2-34 loss have been paid or reimbursed as a benefit from a collateral source. If

2-35 the court determines that a claimant has received such a benefit, the court

2-36 shall reduce the amount of damages, if any, awarded in the action by the

2-37 amount of the benefit. The amount so reduced must not include any amount

2-38 for which there is a right of subrogation to the rights of the claimant if the

2-39 right of subrogation is exercised by serving a notice of lien on the claimant

2-40 before the settlement of or the entry of judgment in the action. Notice of the

2-41 action must be provided by the claimant to any statutory holder of a lien.

2-42 3.] If future economic damages are awarded in an action for medical

2-43 malpractice, the award must be paid, at the election of the claimant:

3-1 (a) In a lump sum which has been reduced to its present value as

3-2 determined by the trier of fact and approved by the court; or

3-3 (b) Subject to the provisions of subsection [5,] 4, by an annuity

3-4 purchased to provide periodic payments.

3-5 As used in this subsection, "future economic damages" includes damages

3-6 for future medical treatment, care or custody, and loss of future earnings.

3-7 [4.] 3. If the claimant elects to receive periodic payments pursuant to

3-8 paragraph (b) of subsection [3,] 2, the award must not be reduced to its

3-9 present value. The amount of the periodic payments must be equal to the

3-10 total amount of all future damages awarded by the trier of fact and

3-11 approved by the court. The period for which the periodic payments must be

3-12 made must be determined by the trier of fact and approved by the court.

3-13 Before the entry of judgment, each party shall submit to the court a plan

3-14 specifying the recipient of the payments, the amount of the payments and a

3-15 schedule of periodic payments for the award. Upon receipt and review of

3-16 the plans, the court shall specify in its judgment rendered in the action the

3-17 recipient of the payments, the amount of the payments and a schedule of

3-18 payments for the award.

3-19 [5.] 4. If an annuity is purchased pursuant to paragraph (b) of

3-20 subsection [3,] 2, the claimant shall select the provider of the annuity. Upon

3-21 purchase of the annuity, the claimant shall:

3-22 (a) Execute a satisfaction of judgment or a stipulation for dismissal of

3-23 the claim with prejudice; and

3-24 (b) Release forever the defendant and his insurer, if any, from any

3-25 obligation to make periodic payments pursuant to the award.

3-26 [6.] 5. As used in this section [:

3-27 (a) "Benefit from a collateral source" means any money, service or other

3-28 benefit which is paid or provided or is reasonably likely to be paid or

3-29 provided to a claimant for personal injury or wrongful death pursuant to:

3-30 (1) A state or federal act which provides benefits for sickness,

3-31 disability, accidents, loss of income or workers’ compensation;

3-32 (2) A policy of insurance which provides health benefits or coverage

3-33 for loss of income;

3-34 (3) A contract of any group, organization, partnership or corporation

3-35 which provides, pays or reimburses the cost of medical, hospital or dental

3-36 benefits or benefits for loss of income; or

3-37 (4) Any other publicly or privately funded program which provides

3-38 such benefits.

3-39 (b) "Medical] , "medical malpractice" has the meaning ascribed to it in

3-40 NRS 41A.009.

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