Silverman: Utah Supreme Court Takes Significant Step Toward Eliminating ‘Phantom Damages’
With the unanimous Utah Supreme Court ruling in Gardner v. Norman, Utah has joined a growing number of states recognizing that a plaintiff’s damages should reflect the negotiated charge that is actually paid for medical treatment rather than chargemaster rates, list prices or other gross charges not paid, according to Shook Partner Cary Silverman.
In an article for the Washington Legal Foundation titled “Utah Supreme Court Takes Significant Step Toward Eliminating ‘Phantom Damages,’” Silverman writes that the Court held that the amount paid for medical treatment, regardless of the source of the payment, “reflects the actual loss incurred and is the measure of special damages.” Silverman says that personal injury lawyers seek to present list prices rather than the actual amount paid for the plaintiff’s treatment to inflate damages.
“While the amount at issue was small in Gardner, 'phantom damages'—the amount that appears on an invoice that no one actually paid—can be hundreds of thousands of dollars in cases involving more significant injuries,” he says. “Presenting jurors with medical expenses at billed rates can also spiral into larger noneconomic damage awards because the inflated amounts make the injury appear more severe or because juries may arrive at a pain and suffering award through a multiplier of medical expenses. These excessive awards contribute to social inflation and nuclear verdicts.”
Read the article in the Washington Legal Foundation >>
In an article for the Washington Legal Foundation titled “Utah Supreme Court Takes Significant Step Toward Eliminating ‘Phantom Damages,’” Silverman writes that the Court held that the amount paid for medical treatment, regardless of the source of the payment, “reflects the actual loss incurred and is the measure of special damages.” Silverman says that personal injury lawyers seek to present list prices rather than the actual amount paid for the plaintiff’s treatment to inflate damages.
“While the amount at issue was small in Gardner, 'phantom damages'—the amount that appears on an invoice that no one actually paid—can be hundreds of thousands of dollars in cases involving more significant injuries,” he says. “Presenting jurors with medical expenses at billed rates can also spiral into larger noneconomic damage awards because the inflated amounts make the injury appear more severe or because juries may arrive at a pain and suffering award through a multiplier of medical expenses. These excessive awards contribute to social inflation and nuclear verdicts.”
Read the article in the Washington Legal Foundation >>
