REVISED JUDICATURE ACT OF 1961
Act 236 of 1961
600.6303 Payment of plaintiff's expense or loss by collateral source; notice to contractual lien holder; failure to exercise right of subrogation; contracts to which subsection (3) applicable; “collateral source” defined; benefits from collateral source as payable or receivable.
Sec. 6303.
(1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to establish that the expense or loss was paid or is payable, in whole or in part, by a collateral source shall be admissible to the court in which the action was brought after a verdict for the plaintiff and before a judgment is entered on the verdict. Subject to subsection (5), if the court determines that all or part of the plaintiff's expense or loss has been paid or is payable by a collateral source, the court shall reduce that portion of the judgment which represents damages paid or payable by a collateral source by an amount equal to the sum determined pursuant to subsection (2). This reduction shall not exceed the amount of the judgment for economic loss or that portion of the verdict which represents damages paid or payable by a collateral source.
(2) The court shall determine the amount of the plaintiff's expense or loss which has been paid or is payable by a collateral source. Except for premiums on insurance which is required by law, that amount shall then be reduced by a sum equal to the premiums, or that portion of the premiums paid for the particular benefit by the plaintiff or the plaintiff's family or incurred by the plaintiff's employer on behalf of the plaintiff in securing the benefits received or receivable from the collateral source.
(3) Within 10 days after a verdict for the plaintiff, plaintiff's attorney shall send notice of the verdict by registered mail to all persons entitled by contract to a lien against the proceeds of plaintiff's recovery. If a contractual lien holder does not exercise the lien holder's right of subrogation within 20 days after receipt of the notice of the verdict, the lien holder shall lose the right of subrogation. This subsection shall only apply to contracts executed or renewed on or after the effective date of this section.
(4) As used in this section, "collateral source" means benefits received or receivable from an insurance policy; benefits payable pursuant to a contract with a health care corporation, dental care corporation, or health maintenance organization; employee benefits; social security benefits; worker's compensation benefits; or medicare benefits. Collateral source does not include life insurance benefits or benefits paid by a person, partnership, association, corporation, or other legal entity entitled by law to a lien against the proceeds of a recovery by a plaintiff in a civil action for damages. Collateral source does not include benefits paid or payable by a person, partnership, association, corporation, or other legal entity entitled by contract to a lien against the proceeds of a recovery by a plaintiff in a civil action for damages, if the contractual lien has been exercised pursuant to subsection (3).
(5) For purposes of this section, benefits from a collateral source shall not be considered payable or receivable unless the court makes a determination that there is a previously existing contractual or statutory obligation on the part of the collateral source to pay the benefits.
History: Add. 1986, Act 178, Eff. Oct. 1, 1986
Compiler's Notes:
Section 3 of Act 178 of 1986 provides:
“(1) Sections 2925b, 5805, 5838, and 5851 of Act No. 236 of the Public Acts of 1961, as amended by this amendatory act, shall not apply to causes of action arising before October 1, 1986.
“(2) Sections 1483, 5838a, and 6304 of Act No. 236 of the Public Acts of 1961, as added by this amendatory act, shall apply to causes of action arising on or after October 1, 1986.
“(3) Sections 1629, 1653, 2169, 2591, 2912c, 2912d, 2912e, 6098, 6301, 6303, 6305, 6306, 6307, 6309, and 6311 of Act No. 236 of the Public Acts of 1961, as added by this amendatory act, shall apply to cases filed on or after October 1, 1986.
“(4) Sections 1651 and 6013 of Act No. 236 of the Public Acts of 1961, as amended by this amendatory act, shall not apply to cases filed before October 1, 1986.
“(5) Chapter 49 of Act No. 236 of the Public Acts of 1961, as added by this amendatory act, shall apply to cases filed on or after January 1, 1987.
“(6) Chapter 49a of Act No. 236 of the Public Acts of 1961, as added by this amendatory act, shall apply to cases filed in judicial circuits which are comprised of more than 1 county on or after July 1, 1990 and shall apply to cases filed in judicial circuits which are comprised of 1 county on or after October 1, 1988.”
Notes of Decisions
Cited in
52
cases (
6 in the last 5 years), 1986–2025 · leading case:
Zdrojewski v. Murphy, 657 N.W.2d 721 (Mich. Ct. App. 2003).
Zdrojewski v. Murphy, 657 N.W.2d 721 (Mich. Ct. App. 2003).
· cites it 16× “MCL 600.6303 provides, in part: (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to establish that the expense or loss…”
Velez v. Tuma, 821 N.W.2d 432 (Mich. 2012).
· cites it 10× “8 The 6 In medical malpractice cases, the collateral source rule requires a circuit court to reduce a jury’s award of economic damages by the amount already paid by collateral sources, such as insurers or other providers.”
Greer v. Advantage Health, 852 N.W.2d 198 (Mich. Ct. App. 2014).
· cites it 16× “COLLATERAL SOURCE RULE OF MCL 600.6303 Defendants’ argument that insurance discounts are collateral source payments under MCL 600.”
State Auto. Mut. Ins. Co. v. Fieger, 730 N.W.2d 212 (Mich. 2007).
· cites it 12× “" MCL 600.6303(1). If the court determines that a portion of the past economic damages was paid by a collateral source, then the court must reduce the judgment by that amount.”
Jimkoski v. Shupe, 763 N.W.2d 1 (Mich. Ct. App. 2008).
· cites it 4× “6303, in pertinent part, sets forth the circumstances under which a jury award is to be set off by a collateral-source payment: *12 (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings,…”
Amlotte Ex Rel. Amlotte v. United States, 292 F. Supp. 2d 922 (E.D. Mich. 2003).
· cites it 10× ““Collateral source” is defined in Mich. Comp. Laws § 600.6303 , which states as follows: (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other…”
Greer v. Advantage Health, 880 N.W.2d 786 (Mich. 2016).
· cites it 16× “2 Under the common-law rule, an injured person was allowed to retain the proceeds of insurance paid to him or her as a policyholder and recover a second time from a tortfeasor. 3 The justifications underlying the common-law rule included its punishment objective and deterrent…”
Rogers v. City of Detroit, 579 N.W.2d 840 (Mich. 1998).
· cites it 6× “§ 600.6303(1); M.S.A. § 27A.6303(1), states in pertinent part: *854 In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to…”
Wesche v. Mecosta Cnty. Road Comm'n, 746 N.W.2d 847 (Mich. 2008).
· cites it 2× “However, this Court has held that other statutory and common-law limitations on the amount of damages apply to wrongful death actions.”
Young v. Nandi, 740 N.W.2d 508 (Mich. Ct. App. 2007).
· cites it 5× “Next, defendants argue that health care insurance benefits paid on Young’s behalf should have been considered collateral source benefits under MCL 600.6303 because plaintiff did not comply with the statute’s notice requirements.”
Jenkins v. Patel, 684 N.W.2d 346 (Mich. 2004).
· cites it 2× “ncluding reasonable medical, hospital, funeral, and burial expenses for which the estate is liable; reasonable compensation for the pain and suffering, while conscious, undergone by the deceased person during the period intervening between the time of the injury and death; and…”
— Mich. Comp. Laws § 600.6303(1) — 16 cases
State Auto. Mut. Ins. Co. v. Fieger, 730 N.W.2d 212 (Mich. 2007).
“" MCL 600.6303(1). If the court determines that a portion of the past economic damages was paid by a collateral source, then the court must reduce the judgment by that amount.”
Zdrojewski v. Murphy, 657 N.W.2d 721 (Mich. Ct. App. 2003).
“MCL 600.6303 provides, in part: (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to establish that the expense or loss…”
Wesche v. Mecosta Cnty. Road Comm'n, 746 N.W.2d 847 (Mich. 2008).
“However, this Court has held that other statutory and common-law limitations on the amount of damages apply to wrongful death actions.”
Jenkins v. Patel, 684 N.W.2d 346 (Mich. 2004).
“ncluding reasonable medical, hospital, funeral, and burial expenses for which the estate is liable; reasonable compensation for the pain and suffering, while conscious, undergone by the deceased person during the period intervening between the time of the injury and death; and…”
— Mich. Comp. Laws § 600.6303(2) — 7 cases
Greer v. Advantage Health, 852 N.W.2d 198 (Mich. Ct. App. 2014).
“COLLATERAL SOURCE RULE OF MCL 600.6303 Defendants’ argument that insurance discounts are collateral source payments under MCL 600.”
— Mich. Comp. Laws § 600.6303(3) — 7 cases
Zdrojewski v. Murphy, 657 N.W.2d 721 (Mich. Ct. App. 2003).
“MCL 600.6303 provides, in part: (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to establish that the expense or loss…”
Rogers v. City of Detroit, 579 N.W.2d 840 (Mich. 1998).
“§ 600.6303(1); M.S.A. § 27A.6303(1), states in pertinent part: *854 In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to…”
Young v. Nandi, 740 N.W.2d 508 (Mich. Ct. App. 2007).
“Next, defendants argue that health care insurance benefits paid on Young’s behalf should have been considered collateral source benefits under MCL 600.6303 because plaintiff did not comply with the statute’s notice requirements.”
Greer v. Advantage Health, 852 N.W.2d 198 (Mich. Ct. App. 2014).
“COLLATERAL SOURCE RULE OF MCL 600.6303 Defendants’ argument that insurance discounts are collateral source payments under MCL 600.”
State Auto. Mut. Ins. Co. v. Fieger, 730 N.W.2d 212 (Mich. 2007).
“" MCL 600.6303(1). If the court determines that a portion of the past economic damages was paid by a collateral source, then the court must reduce the judgment by that amount.”
— Mich. Comp. Laws § 600.6303(4) — 15 cases
Zdrojewski v. Murphy, 657 N.W.2d 721 (Mich. Ct. App. 2003).
“MCL 600.6303 provides, in part: (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity, or other economic loss, evidence to establish that the expense or loss…”
Greer v. Advantage Health, 852 N.W.2d 198 (Mich. Ct. App. 2014).
“COLLATERAL SOURCE RULE OF MCL 600.6303 Defendants’ argument that insurance discounts are collateral source payments under MCL 600.”
Greer v. Advantage Health, 880 N.W.2d 786 (Mich. 2016).
“2 Under the common-law rule, an injured person was allowed to retain the proceeds of insurance paid to him or her as a policyholder and recover a second time from a tortfeasor. 3 The justifications underlying the common-law rule included its punishment objective and deterrent…”
Jimkoski v. Shupe, 763 N.W.2d 1 (Mich. Ct. App. 2008).
“6303, in pertinent part, sets forth the circumstances under which a jury award is to be set off by a collateral-source payment: *12 (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings,…”
— Mich. Comp. Laws § 600.6303(5) — 3 cases
Velez v. Tuma, 821 N.W.2d 432 (Mich. 2012).
“8 The 6 In medical malpractice cases, the collateral source rule requires a circuit court to reduce a jury’s award of economic damages by the amount already paid by collateral sources, such as insurers or other providers.”
Jimkoski v. Shupe, 763 N.W.2d 1 (Mich. Ct. App. 2008).
“6303, in pertinent part, sets forth the circumstances under which a jury award is to be set off by a collateral-source payment: *12 (1) In a personal injury action in which the plaintiff seeks to recover for the expense of medical care, rehabilitation services, loss of earnings,…”
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