Under South Carolina’s collateral source rule (discussed in depth here by the American Bar Association), compensation received by an injured party from a source wholly independent of the wrongdoer won’t reduce the amount owed by the wrongdoer.
The only requirement for qualification as a collateral source is that the source of the compensation be entirely independent of the wrongdoer. This means:
- Wrongdoer has not contributed to the payment;
- Payments were not made on behalf of the wrongdoer.
So if a plaintiff’s access to health care insurance for coverage of medical bills doesn’t reduce a defendant’s liability for the cost of those injuries. Plaintiff’s typically cannot obtain double recovery, however, so in that instance, the insurer would be entitled to collect the excess judgment. Continue reading