Perreira v. Rediger case brief

Perreira v. Rediger case brief summary
778 A.2d 429 (N.J. 2001)

SYNOPSIS:
In companion cases, appellant tortfeasors challenged Superior Court, Appellate Division (New Jersey), declaration that respondent health insurer for injured parties (plaintiffs in underlying lawsuits) could recover medical expenditures from the tortfeasors. The tortfeasors argued that recovery was precluded by the amended collateral source rule of N.J. Stat. Ann. § 2A:15-97.

OVERVIEW: In companion cases involving the same health insurer, the injured parties' medical expenses were paid by the health insurer and they eventually recovered other damages in settlements with the tortfeasors. The health insurer sought to recover its medical expense outlays from the tortfeasors and their liability insurers. The tortfeasors argued that recovery was barred under the collateral source rule, and New Jersey's high court agreed.

HOLDING:
The court noted that N.J. Stat. Ann. § 2A:15-97 modified the common law rule, to reduce injured parties' recoveries by amounts recovered under liability policies.

ANALYSIS:
Both the plain language of the statute, which did not mention health insurers, and the legislative history indicated an intent to relieve liability insurers, but not health insurers, from the common law rule. Subrogation was not a common law right of New Jersey health insurers, and contractual reimbursement provisions authorized by insurance regulations were beyond the agency's powers to authorize.

OUTCOME: The court reversed the judgment and reinstated the trial court judgments.


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