Brandon Jensen and Rebecca Jensen v. Crete Carrier Corporation and Michael Beale

CourtDistrict Court, D. Utah
DecidedNovember 10, 2025
Docket1:23-cv-00105
StatusUnknown

This text of Brandon Jensen and Rebecca Jensen v. Crete Carrier Corporation and Michael Beale (Brandon Jensen and Rebecca Jensen v. Crete Carrier Corporation and Michael Beale) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandon Jensen and Rebecca Jensen v. Crete Carrier Corporation and Michael Beale, (D. Utah 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH, NORTHERN DIVISION

BRANDON JENSEN and REBECCA JENSEN,

Plaintiffs, ORDER DENYING IN PART MOTION IN LIMINE TO EXCLUDE DAMAGES BASED ON GROSS MEDICAL BILLS

v. Case No. 1:23-cv-00105-TC-JCB CRETE CARRIER CORPORATION and MICHAEL BEALE, Judge Tena Campbell Magistrate Judge Jared C. Bennett Defendants.

Before the court is a motion in limine to exclude damages based on gross medical bills filed by Defendants Crete Carrier Corporation (Crete) and Michael Beale. (ECF No. 124.) The court denies that motion in part. The court declines to exclude the expert testimony of Dr. Zachary McCormick but clarifies that the Defendants may introduce evidence concerning typical medical billing discounts for self-pay or uninsured individuals. BACKGROUND In this action, Plaintiffs Brandon Jensen and Rebecca Jensen claim that Mr. Beale, while turning his semi-trailer truck into the entrance to Crete’s terminal, negligently caused a collision that injured Mr. Jensen. The Plaintiffs plan to introduce the testimony of Dr. McCormick, their medical expert, who will opine that Mr. Jensen’s future medical expenses will cost approximately $777,955. Dr. McCormick bases his estimates on the “historical cost of care available to me from the University of Utah.” (McCormick Report, Ex. 2 to Defs.’ Mot. Limine re: Gross Medical Bills, ECF No. 124-2 at 44.) It is unclear from Dr. McCormick’s expert report whether this historical cost of care represents gross charges, payer-specific negotiated charges, or some other amount.1 Under federal law, hospitals must publish “a list of the hospital’s standard charges for

items and services provided by the hospital.” 45 C.F.R. § 180.10. This list must include: 1) the gross charge; 2) the discounted price for individuals who self-pay; 3) the payer-specific negotiated charge, which is the amount a hospital has negotiated with a third-party (such as an insurance company); and 4) the “[d]e-identified maximum” and “[d]e-identified minimum[,]” figures that represent the highest and lowest charge a hospital has negotiated with all third-party payers. Id. §§ 180.20, 180.50(b). It is “typical in the [healthcare] industry” for a health insurer to negotiate “a lower rate for health care services for its policy holders than any member of the uninsured general public is able to bargain for, resulting in a discounted medical bill.” Tschaggeny v. Milbank Ins. Co., 163 P.3d 615, 618 (Utah 2007). The Defendants argue that the court should exclude Dr. McCormick’s report for failure to

comply with the Utah Supreme Court’s opinion in Gardner v. Norman, No. 20240344, 2025 WL 3030153 (Utah Oct. 30, 2025), which was issued just over a week ago. In that decision, the Court held that the proper measurement of special damages for past medical expenses is the negotiated—not the gross—charge for services. Id. at *8. Although Dr. McCormick’s report focuses on future, not past, medical expenses, the Defendants argue that the same logic applies and that any estimates for future services based on gross charges are inadmissible under Gardner.

1 For the purposes of this order, the court assumes that Dr. McCormick’s expert report is based on gross charges. The court denies without prejudice the Defendants’ challenge to his report to the extent that their challenge is based on the lack of foundation about whether the figures represent gross charges or payer-negotiated charges. The court will question Dr. McCormick about the source of his figures before determining the admissibility of his testimony. The Defendants also maintain that Dr. McCormick’s report lacks foundation due to his failure to explain whether his estimates are based on gross charges or other rates. The Plaintiffs counter that the Court in Gardner expressly declined to address the admissibility of evidence of gross charges to prove future medical expenses: “And we express no

opinion on the relevance or admissibility of this evidence on other issues, such as noneconomic damages or future medical expenses.” Id. (quotation omitted). The Plaintiffs represent that when the Utah Supreme Court issued the Gardner decision, the Plaintiffs “offered to waive Mr. Jensen’s claim for past medical expenses in exchange for Defendants not seeking to introduce evidence of Mr. Jensen’s past medical expenses.” (Pls.’ Resp. Mot. Limine re: Gross Medical Expenses, ECF No. 128 at 2.) But the Defendants refused this offer. (Id.) LEGAL STANDARD Because the court has jurisdiction to hear this action under 28 U.S.C. § 1332, Utah substantive law governs this case. See Erie R. Co. v. Tompkins, 304 U.S. 64, 78–79 (1938) (holding that when cases come before federal courts through diversity jurisdiction, federal courts

apply the substantive law of the state where they sit). But “[i]f the state’s highest court has not addressed the issue presented, the federal court must determine what decision the state court would make if faced with the same facts and issue.” Armijo v. Ex. Cam, Inc., 843 F.2d 406, 407 (10th Cir. 1988) (noting that to predict what a state’s highest court would do, federal courts should consider “state court decisions, decisions of other states, federal decisions, and the general weight and trend of authority”). ANALYSIS The dispute between the parties presents an issue of first impression. The court disagrees with the Defendants that “evidence of gross charges for an injured party’s medical bills … is now clearly inadmissible.” (ECF No. 124 at 2.) As noted above, the Utah Supreme Court was clear that its decision in Gardner concerned only the admissibility of such evidence to prove past medical expenses, not future medical expenses. Gardner, 2025 WL 3030153, at *8. But the court also takes issue with the Plaintiffs’ suggestion that “[i]f the Utah Supreme Court wanted

the bar on gross charges to extend to future medical expenses, it certainly could have held as such.” (ECF No. 128 at 4.) Future medical expenses were simply not at issue in Gardner. See Gardner, 2025 WL 3030153, at *1 (discussing only the plaintiff’s past medical expenses for an emergency room visit). The Court’s circumspection indicates nothing more than judicial restraint and the desire to avoid an advisory opinion based on hypothetical facts. But here, this court must squarely address the issue because Mr. Jensen has requested future medical expenses. This court must therefore determine how the Utah Supreme Court would rule on the admissibility of gross charges to prove future medical expenses if it were presented with similar facts. To make this determination, the court looks foremost to the holding and reasoning in

Gardner. There, the Utah Supreme Court first summarized the basic principles Utah law on special damages, noting that “a plaintiff may recover medical expenses that are reasonable and necessary[,]” id. at *4 (quoting Wilson v. IHC Hosps., Inc., 289 P.3d 369, 382 (Utah 2012)), and that “evidence is required to show that the medical expenses accurately reflect the necessary treatment that resulted from injury and that the charges are reasonable.” Id. (quoting Gorostieta v. Parkinson, 17 P.3d 1110, 1118 (Utah 2000)). Under Utah law, a plaintiff is limited to recovering the lesser of the reasonable value of the services (regardless of the amount paid or charged) or the amount paid (if the plaintiff paid less than the exchange rate). See Restatement (Second) of Torts § 911 cmt. h (A.L.I. 1979).

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Brandon Jensen and Rebecca Jensen v. Crete Carrier Corporation and Michael Beale, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandon-jensen-and-rebecca-jensen-v-crete-carrier-corporation-and-michael-utd-2025.