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WILMA J. GRAY
°
(State Bar No. 188386)
L. MAPLE LAY (State Bar No. 267714) TT i
MCNAMARA, NEY, BEATTY, SLATTERY, FILED
BorGES & AMBACHER LLP ALAMEDA COUNTY
1211 Newell Avenue
Post Office Box 5288 OC! 21 2011
Walnut Creek, CA 94596
Telephone: (925) 939-5330
Facsimile: (925) 939-0203
Attorneys for Defendant
ISLAND PACIFIC SUPERMARKETS, INC.
SUPERIOR COURT OF CALIFORNIA, COUNTY OF ALAMEDA
LLP
CIVIL -UNLIMITED JURISDICTION
AMBACHER
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1] JAMES LUTTRELL, Case No. RG09-469504
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Plaintiff, SUPPLEMENTAL BRIEF IN SUPPORT
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OF DEFENDANT’S MOTION TO SET
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13 VS. ASIDE JUDGMENT AND POST VERDICT
CREEK.
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MOTION FOR REDUCTION OF PAST
SLATTERY,
14 ISLAND PACIFIC SUPERMARKETS, MEDICAL SPECIAL DAMAGES AND
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(925)
WALNUT
INC., and DOES 1-100, OFFSET
ATTORNEYS
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TELEPHONE:
Defendants.
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16 RESERVATION NO.: R-1186704
BEATTY,
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17 - Date: 10/31/2011
Time: 8:30 A.M.
P.O.
NEY,
18 Dept.: 21
19 Judge: Hon. Wynne Carvill
McNAMARA,
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21 Defendant ISLAND PACIFIC SUPERMARKETS, INC. (hereafter referred to as
22 “Defendant”) hereby submits a Supplemental Brief based upon new case law to be considered by
23 the Court when ruling upon Defendant’s Motion to Set Aside Judgment, Post-Verdict Motion for
24 Reduction of Past Medical Special Damages and for Offset, to address the impact of the
25 California Supreme Court’s recent decision inHowell v. Hamilton Meats & Provisions, Inc..
26 /I/
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET ,
I. EXECUTIVE SUMMARY
Following the trial of this matter, the jury awarded Plaintiff James Luttrell $256,109.50
for “past medical expenses.” As the Court is aware, Defendant seeks to set aside that portion of
the Judgment, which was entered on May 20, 2011, for the purpose of reducing the past economic
damages. In light of the state of the case law, Defendant contends that this Court should impose
the Howell standards and require that the award for Plaintiff's past medical expenses be limited to
the amounts accepted as payment in full by Plaintiff's medical care providers.
If. POINTS AND AUTHORITIES
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A. Howell Limits Plaintiff's Recovery to Only Those Medical Expenses
AMBACHER
Paid by his Insurance and Accepted as Payment in Full by the Medical
LO Care Providers.
The California Supreme Court in ruling upon Howell v. Hamilton Meats & Provisions,
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12 Inc., decisively held that a plaintiff, such as James Luttrell, is limited to recovering only those
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13 medical expenses actually paid by his or her insurer, and which was accepted as payment in full
CREEK,
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SLATTERY,
by the medical care providers. The California Supreme Court specifically held:
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(925)
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ATTORNEYS
15 We agree with the Hanif court that a plaintiff may recover as
TELEPHONE:
economic damages vo more than the reasonable value of the
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medical services received and is not entitled to recover the
17 reasonable value if his or her actual loss was less. (Hanif, supra,
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200 Cal.App.3d at p. 641.) California decisions have focused on
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“reasonable value” in the context of /imiting recovery to reasonable
expenditures, not expanding recovery beyond the plaintiff’s actual
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loss or liability.To be recoverable, a medical expense must be both
incurred and reasonable. (Citations omitted.)
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21 The rule that a plaintiff's expenses, to be recoverable, must be both
incurred and reasonable accords, as well, with our damages statutes.
22 “Damages must, in allcases, be reasonable ... .” (Civ. Code, §
3359.) But if the plaintiff negotiates a discount and thereby
23 receives services for less than might reasonably be charged, the
24 plaintiff
greater
has
amount
not suffered
and
a pecuniary
therefore cannot
loss or
recover
other detriment
damages for that
in the
25 amount. (Id., §§ 3281, 3282.) The same rule applies when a
collateral source, such as the plaintiff's health insurer, has
26 obtained a discount for its payments on the plaintiff's behalf.
(Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th
27 541, 555 (italics in original, emphasis in bold added).)
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET
The plaintiff in Howell attempted to distinguish herself as having private medical
insurance, as opposed to the plaintiff in Hanif v. Hanif v. Housing Auth. of Yolo County (1988)
200 Cal.App.3d 635, 641, who had Medi-Cal insurance. (Howell, 52 Cal. 4th at 556.) Yet, the
California Supreme Court for the Howell case found the distinction to be “unpersuasive.” (/d.)
The Howell plaintiff's medical care providers had pre-existing agreements with her insurance _
company (PacifiCare), and plainly limited the amounts PacifiCare would pay to the medical care
providers for each service rendered. The Supreme Court determined that the Howell plaintiff
“cannot meaningfully be said ever to have incurred the full charges.” (Howell, 52 Cal. 4th at
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556.)
AMBACHER
Here, Plaintiff James Lutrell 1s exactly like the plaintiff in Hanif, whose holding has been
affirmed in Howell. Plaintiff James Lutrell was at the time of the subject accident eligible for an
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was receiving Medi-Cal insurance, and presented evidence at trial of the “reasonable value” of the
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past medical expenses rendered in his case. These values were in excess of the amount actually
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SLATTERY,
paid by Medi-Cal to the health care providers, on the plaintiffs behalf. There was no evidence
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(925)
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15S present at trial that Mr. Luttrell personally would be lable for the difference between the
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16 reasonable value of the medical services and the actual paid value. In fact, the medical providers
BEATTY,
had each written off the balance between the amount billed and the amount actually paid on the
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18 plaintiff's behalf. Per the decisions in Howell and Hanif, Mr. Luttrell’s recovery for the value
19 of past medical services must be limited to the amounts actually paid.
McNAMARA,
20 B. Plaintiff Has Been Awarded Damages for Past Medical Expenses in
Excess of the Amounts Actually Paid, Which Was Irrelevant and
21 Unreliable.
22 Howell specifically remarked on the unreliability of a medical care provider’s billed price
23 for services rendered:
24 As we have seen, a medical care provider’s billed price for particular services is
not necessarily representative of either the cost of providing those services or their
25 market value. Within a single hospital’s chargemaster, for example, “[m]ark-ups
tend to vary by service line, with high cost items receiving a lower mark-up than
26 low cost items.” (Citations omitted.) (Howell, 52 Cal. 4th at 564-565.)
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET
Additionally, Howell stated that where a provider has accepted less than a billed amount
as payment in full, “evidence of the full billed amount is not itself relevant on the issue of past
medical expenses.” (/d. at 567.)
Therefore, evidence of the gross amount on Plaintiff James Luttrell’s medical bills must
be considered both unreliable and irrelevant, particularly as cited in support in Plaintiffs
Opposition to the instant Motion for Reduction and Plaintiffs own Motion for New Trial. This is
especially true for Plaintiff's medical bills for all of the disputed medical care providers listed in
Trial Exhibit 19, and in particular St. Rose Hospital, which accepted as full payment, an amount
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considerably less than the original billed amount. Pursuant to well settled law, as confirmed by
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the California Supreme Court in Howell, Plaintiffis limited to recovering only the actual amounts
i paid for his past medical expenses.
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12 C. Defendant Is Entitled to a New Trial Based on Excessive Damages, or
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in the Alternative, a Reduction of the Past Medical Special Damages.
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[f ajury awards damages for past medical expenses greater than the amounts actually paid
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SLATTERY,
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(925)
WALNUT
to those providers of past medical care, a defendant is entitled to a new trial based on excessive
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damages, or a reduction of those past medical expenses. Specifically, Howell elaborated:
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Where a trialjury has heard evidence of the amount accepted as full
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payment by the medical provider but has awarded a greater sum as
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P.O.
damages for past medical expenses, the defendant may move for a
NEY,
new trialon grounds of excessive damages. (Code Civ. Proc., §
19 657, subd. 5.) A nonstatutory “Hanif motion” is unnecessary. The
McNAMARA,
trial court, if itgrants the new trial motion, may permit the plaintiff
20 to choose between accepting reduced damages or undertaking a
new trial. (Id., § 662.5, subd. (b).) (Howell, 52 Cal. 4th at 567.)
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22 At the trial of the Luttrell matter, evidence was presented to the Jury by Stipulation of the
23 total amount of past medical expenses charged for the treatment of James Luttrell. The
24 Stipulation was marked and admitted as Trial Exhibit 19. However, the amounts stated on
25 Exhibit 19 were not the actual amounts accepted as payment in full by James Luttrell’s medical
26 care providers. The Jury then returned a Judgment awarding damages for past medical expenses
27 in excess of the amounts actually paid, and which must be reduced, according to the law of the
28 state of California as most recently stated in Howell.
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET
If. CONCLUSION
Based on the foregoing, Defendant respectfully requests that the Court modify the
Judgment in this case, particularly the recoverable damages for past medical expenses. The Court
should reduce the past medical expenses to $63,508.56, which represents the total of the amounts
actually paid by Plaintiff, Medicare, or Medi-Cal. (This is a reduction of $192,600.94.) As fully
explained in Defendant’s moving papers, Hanif and its progeny of cases, and now the California
Supreme Court’s decision in Howell, clearly demonstrate that a plaintiff in a personal injury
action can only recover the actual amount he or she paid, or the actual amounts paid on his or her
LLP
behalf.
AMBACHER
Therefore, the Judgment in this case should be revised to reflect the following sums:
REVISED DAMAGES (Question No. 5)
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(a) Past medical expenses from Exhibit 19:
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Washington Hospital $28,222.68
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Park Central Care $20,146.24
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St. Rose Hospital $11,301.99
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Danville Rehabilitation $ 1,127.15
WALNUT
ATTORNEYS
Dr. W. Stearns $ 475.67
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Dr. N. Kannan $ 607.88
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Dr. P. Kudaravalli $ 842.57
BEATTY,
Dr. D. Allen $ 123.04
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17 American Med Response $ 477.24
Dr. S. Gustaveson $_ 184.10
P.O.
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Subtotal $ 63,508.56
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McNAMARA,
(b) Future medical expenses: $116,664.50
20 Total Economic Damages $180,173.06
(e) Past non-economic loss, including pain
21 and suffering: $ 30,000.00
(f) Future non-economic loss, including pain
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and suffering $ 10,000.00
23 Total Non-Economic Damages $ 40,000.00
24 REVISED Total Damages $220,173.06
25 The number of Revised Total Damages is reduced by the 5% contributory negligence
26 which the Jury attributed to Plaintiff James Luttrell, to $209,164.41. As explained above, that
27 number is further reduced by the offset of $10,000.00, previously paid to Plaintiff on November
28 10, 2010 by Peerless Insurance Company.
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET
The Judgment in this matter, should be amended accordingly, and a new Amended
Judgment should be entered in the amount of $199,164.41.
Dated: October 20 »2011 MCNAMARA, NEY, BEATTY, SLATTERY,
BORGES & AMBACHER LLP
wy DopeLe
Wilma J. Gray Cc)
L. Maple Lay
Attorneys for Defendant, ISLAND PACIFIC
SUPERMARKETS, INC.
LLP
AMBACHER
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CA
939-5330
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CREEK,
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SLATTERY,
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(925)
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ATTORNEYS
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TELEPHONE:
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BEATTY,
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SUPPLEMENTAL BRIEF IN SUPPORT OF DEFENDANT’S POST VERDICT MOTION FOR REDUCTION OF
PAST MEDICAL SPECIAL DAMAGES AND OFFSET
PROOF OF SERVICE BY MAIL (C.C.P. §§ 1013a, 2015.5)
Thereby declare that Iam a citizen of the United States, am over the age of eighteen years,
and not a party to the within action; my business address is 1211 Newell Avenue, Walnut Creek,
California 94596.
On this date I served the foregoing SUPPLEMENTAL BRIEF IN SUPPORT OF
DEFENDANT'S MOTION TO SET ASIDE JUDGMENT AND POST VERDICT
MOTION FOR REDUCTION OF PAST MEDICAL SPECIAL DAMAGES AND OFFSET
on the parties in said action, by placing a true copy thereof enclosed in a sealed envelope
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addressed as listed below for mailing. I am readily familiar with this firm's practice of collection
AMBACHER
10 and processing correspondence for mailing. Under that practice, itwould be deposited with the
11 United States Postal Service on that same day with postage thereon fully prepaid, in the United
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12 States Post Office mail box at Walnut Creek, California, addressed as follows:
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939-5330
13.
CREEK,
Attorneys For Plaintiff, James Luttrell:
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SLATTERY,
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(925)
Howard Melamed, Esq.
WALNUT
Attorney at Law
ATTORNEYS
15 319 Lennon Lane
TELEPHONE:
Walnut Creek, CA 94598
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BEATTY,
Phone: 925-932-0417
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Fax: 925-256-9542
P.O.
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I declare under penalty of perjury under the lawsof the State of California that the
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foregoing is true and correct and that this declaration was executed on October 20, 2011 at
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Walnut Creek, California.
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23 Diane Gordon
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