When a plaintiff receives a favorable verdict and a collateral source reduction for PIP proceeds occurs, the trial court must take into consideration the amount paid to purchase the collateral source benefits.

Forest was an automobile negligence action where the plaintiff was awarded $9,737 for past medical expenses. After the verdict, the defense filed a motion for a collateral source setoff of PIP medical expenses paid, or payable, and the court found the plaintiff was entitled to no award of damages. The plaintiff filed a motion to vacate the final judgment, arguing the setoff should be reduced by the amount of premiums paid by the plaintiff to obtain PIP coverage. However, the trial court denied the motion. The Fourth District Court of Appeal reversed and remanded, citing Florida Statute, 768.76(1), which states a collateral source reduction of damages "shall be offset to the extent of any amount which has been paid… on behalf of, the claimant…to secure her or his right to any collateral source benefit which the claimant is receiving as a result of her or his injury," and McKenna v. Carlson, 771 So.2d 55, 558 (Fla. 5th DCA 2000), which "allow[s] a reduction from the setoffs for the plaintiff's cost of obtaining PIP coverage..." Thus, a defendant should be aware that the trial court must determine the amount paid by a plaintiff in obtaining PIP coverage when determining a collateral source reduction.

Case Law Alert, 3rd Quarter 2013