Arambula v. Wells

1999

Venue: CA Ct. App.

Facts: Plaintiff gets injured in a rear-end collision. He misses a bunch of work, but since he works for a family-owned business, they keep paying him (he owns 15% of it, by the way).

Posture: Verdict for the plaintiff at trial. The trial judge instructs the jury not to compensate for lost earnings because he continued to get paid.

Issue: Should tortfeasors receive a windfall because other people help out their victims?

Holding: No. Remanded for a new trial on lost wages damages.

Rule: The "collateral source" rule: plaintiffs can still recover full damages even though they have already received compensation from other sources.

Reasoning: If we allow this line of reasoning, it'll just keep people from wanting to help one another out, because they'd be effectively handing money back to tortfeasors.

Dicta: There's no such thing as "double compensation" where pain and suffering are concerned.