Maine Revised Statutes Title 24 Sec. 2906 – Collateral sources
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1. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.
A. “Claimant” means any person who brings a personal injury action and, if such an action is brought through or on behalf of an estate, the term includes the decedent or, if such an action is brought through or on behalf of a minor, the term includes the minor’s parent or guardian. [PL 1989, c. 931, §3 (NEW).]
B. “Collateral source” means a benefit paid or payable to the claimant or on the claimant’s behalf under, from or pursuant to a contract, agreement or plan executed, renewed or implemented on or after the effective date of this Act, including:
(1) An accident, health or sickness insurance, income or wage replacement insurance, income disability insurance, workers’ compensation insurance, casualty or property insurance, including automobile accident and homeowner’s insurance benefits, or any other insurance benefits, except life insurance benefits;
(2) A contract or agreement of a group, organization, partnership or corporation to provide, pay for or reimburse the cost of medical, hospital, dental or other health care services or provide similar benefits; or
(3) A contractual or voluntary wage continuation plan or payments made pursuant to such a plan provided by an employer or otherwise or any other system intended to provide wages during a period of disability. [PL 1989, c. 931, §3 (NEW).]
C. “Damages” means economic losses paid or payable by collateral sources for wage losses, medical costs, rehabilitation costs, services and other out-of-pocket costs incurred by or on behalf of a claimant for which that party is claiming recovery through a tort suit. [PL 1989, c. 931, §3 (NEW).]
[PL 1989, c. 931, §3 (NEW).]
Terms Used In Maine Revised Statutes Title 24 Sec. 2906
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Decedent: A deceased person.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Professional negligence: means that:
A. See Maine Revised Statutes Title 24 Sec. 2502registered mail: when used in connection with any requirement for notice by mail shall mean either registered mail or certified mail. See Maine Revised Statutes Title 1 Sec. 72 Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident. Verdict: The decision of a petit jury or a judge.
2. Collateral source payment reductions. In all actions for professional negligence, as defined in section 2502, evidence to establish that the plaintiff‘s expense of medical care, rehabilitation services, loss of earnings, loss of earning capacity or other economic loss was paid or is payable, in whole or in part, by a collateral source is admissible to the court in which the action is brought after a verdict for the plaintiff and before a judgment is entered on the verdict. After notice and opportunity for an evidentiary hearing, 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 and the collateral source has not exercised its right to subrogation within the time limit set forth in subsection 6, the court shall reduce that portion of the judgment that represents damages paid or payable by a collateral source.
[RR 2015, c. 1, §26 (COR).]
3. Federal benefits. The court shall also reduce the judgment by the amount of Medicare, Medicaid or Social Security disability benefits paid or payable to the plaintiff for the plaintiff’s expenses or losses, provided that the court enters an order requiring the defendant to indemnify and make whole the plaintiff for any subrogation claim made for those benefits and for the costs, including attorney’s fees, for that indemnification claim, as the court finds are reasonably required to enforce this provision.
[PL 1989, c. 931, §3 (NEW).]
4. Offsetting reduction. The court may reduce the reduction in subsection 2 by an amount equal to:
A. The claimant’s payments over the 2-year period immediately predating the personal injury to the collateral source in the form of payroll deductions, insurance premiums or other direct payments by the claimant, as determined by the court to be appropriate in each case; and [PL 1989, c. 931, §3 (NEW).]
B. The portion of the total costs incurred by the plaintiff in the action, including discovery, witness fees, exhibit expenses and attorney’s fees. This reduction is calculated as the amount that is the same percentage of the total costs incurred by the plaintiff in the action as the amount paid or payable by the collateral source is of the total verdict. [PL 1989, c. 931, §3 (NEW).]
[PL 1989, c. 931, §3 (NEW).]
5. Limit. The reduction made under this section may not exceed the amount of the judgment for economic loss or that portion of the verdict that represents damages paid or payable by a collateral source.
[PL 1989, c. 931, §3 (NEW).]
6. Notice of claim or verdict required. No later than 10 days after a verdict for the plaintiff, the plaintiff’s attorney shall send notice of the claim or verdict by registered mail to all persons known to the attorney who are entitled by contract or law to a lien against the proceeds of the plaintiff’s recovery. If a lienholder does not notify the court of the lienholder’s right to subrogation within 30 days after receipt of the notice, the lienholder loses the right of subrogation.
[PL 1989, c. 931, §3 (NEW).]
7. Preexisting obligation required. For purposes of this section, benefits from a collateral source are not considered payable 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.
[PL 1989, c. 931, §3 (NEW).]
SECTION HISTORY
PL 1989, c. 931, §3 (NEW). RR 2015, c. 1, §26 (COR).