Torts Bar Practice Exam

Collateral source payments refer to benefits received by a plaintiff from sources other than the defendant, such as insurance company payments, governmental benefits, or other financial assistance. In tort law, the collateral source rule generally states that a defendant cannot have the damages they are liable for reduced by the amount the plaintiff has received from these external sources.

The rationale behind this rule is to ensure that plaintiffs are fully compensated for their losses, regardless of how those losses are mitigated through other means. This means that the existence of collateral source payments does not affect the damages awarded to a plaintiff; the defendant remains responsible for the total amount of damages incurred by the plaintiff.

Therefore, in a situation where a plaintiff receives collateral source payments, these funds do not negate or reduce the damages that the defendant is obligated to pay. The defendant must compensate the plaintiff fully for their injuries, providing a clear picture of how the collateral source rule operates within the framework of tort law.