Smith v. Jeppsen

2012 CO 32, 277 P.3d 224, 2012 WL 1493568, 2012 Colo. LEXIS 331
CourtSupreme Court of Colorado
DecidedApril 30, 2012
Docket11SA51
StatusPublished
Cited by20 cases

This text of 2012 CO 32 (Smith v. Jeppsen) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Jeppsen, 2012 CO 32, 277 P.3d 224, 2012 WL 1493568, 2012 Colo. LEXIS 331 (Colo. 2012).

Opinions

Justice RICE

delivered the Opinion of the Court.

¶1 In this original proceeding under C.A.R. 21, we determine whether section 10-1-185, C.R.S. (2011), applies prospectively to this action and precludes admission of evidence of the amounts paid by the plaintiffs insurance company pursuant to the plaintiff's medical expense coverage. We hold that the trial court was correct in applying section 10-1-185 here because the statute pertains to cases pending recovery as of August 11, 2010. Further, we hold that the trial court correctly excluded from evidence the amount of the insurance company's payments because section 10-1-135(10)(a) codifies the common law pre-verdiet evidentiary component of the collateral source rule and unambiguously requires the exelusion. Therefore, we discharge the rule to show cause.

[226]*226I. Facts and Procedural History

¶2 This original proceeding regarding the admissibility of evidence of the amounts paid by a collateral source arises out of the negligence action plaintiff Donald Francis Smith filed against defendant Michael D. Jeppsen after Smith and Jeppsen were involved in an automobile accident. Smith sought to recover, among other damages, the cost of past and future medical expenses resulting from the crash. Jeppsen admitted liability, and the parties agreed that the proper measure of Smith's medical expense damages should be the necessary and reasonable value of the medical services rendered. The parties disagreed, however, as to whether the trial court, in determining reasonable value, could consider evidence of the amounts billed to and paid by a collateral source: Smith's insurance company.

¶3 Both parties filed motions with the trial court regarding the admissibility of evidence of the amounts paid by Smith's insurer. The trial court ruled on November 25, 2009, that the parties could submit relevant evidence of both the amount billed by the healthcare providers for the medical services, and the amount paid by Smith's insurer for those services.

¶4 On January 28, 2010, Smith petitioned this Court for a rule to show cause pursuant to C.A.R. 21 to preclude enforcement of the trial court's November 25, 2009 order. Specifically, Smith requested that this Court vacate the portion of the order ruling that the parties could present evidence of the amounts paid by his insurer. We first issued the rule, but later discharged it as improvidently granted and instructed the trial court to consider the effect, if any, of section 10-1-135, effective as of August 11, 2010, on the admissibility of the "amounts paid" evidence.

¶5 After additional briefing regarding the impact of section 10-1-185, the trial court ruled on January 18, 2011, that subsection 10-1-185(10)(a) bars the admission of any evidence of collateral source payments, discounts, and write-offs-including evidence of the amounts paid by Smith's insurance company. Jeppsen and his insurer, State Farm Mutual Automobile Insurance Company (collectively "Petitioners"), then filed the C.A.R. 21 petition underlying this opinion. Petitioners requested that this Court vacate the trial court's January 18, 2011 order holding that subsection 10-1-185(10)(a) applies prospectively and precludes admission of evidence regarding the actual amounts paid for Smith's medical treatments. We issued a rule to show cause and now discharge the rule.

II. Jurisdiction and Standard of Review

¶6 C.A.R. 21 authorizes this Court to exercise its original jurisdiction and review an interlocutory order of the trial court for an abuse of discretion when appellate review of the order would be inadequate. CAR. 2l1(a)(1); Hall v. Levine, 104 P.3d 222, 224 (Colo.2005). Exercise of this original jurisdiction is within our sole discretion. C.AR. 21(a)(1). We generally elect to hear C.AR. 21 cases that raise issues of first impression and that are of significant public importance. Stamp v. Vail Corp., 172 P.3d 437, 440 (Colo.2007) (citing Wesp v. Everson, 33 P.3d 191, 194 (Colo.2001)). We have previously exercised our original jurisdiction to review questions of statutory interpretation. Id.; see also, e.g., Bd. of Cnty. Comm'rs v. PUC, 157 P.3d 1083, 1085-86 (Colo.2007).

¶7 The trial court issued an interlocutory order applying section 10-1-185 and exelud-ing from evidence the amount paid by Smith's insurer pursuant to Smith's medical expense coverage. This case raises an issue of first impression and of public importance because this Court has yet to interpret seetion 10-1-185 with respect to the statute's bearing on the admissibility of collateral source evidence. Thus, review of the trial court's interlocutory order under C.A.R. 21 for an abuse of discretion is appropriate.

III. Applicability of Section 10-1-135

¶8 Section 10-1-185 applies prospectively here because recovery in the underlying case was pending as of the effective date of the statute. Additionally, although the bulk of section 10-1-185 addresses post-verdict subrogation, the plain language of subsection 10-1-135(10)(a) indicates that the subsection applies to pre-verdict evidence [227]*227submissions. As such, we hold that the trial court did not abuse its discretion when it applied subsection 10-1-185(10)(a).

A. Prospective Application of Section 10-1-135

¶9 Petitioners argue that the trial court improperly applied section 10-1-135 retroactively to this 2008 case because Smith's negligence claim accrued, and Smith's insurer paid the medical expenses resulting from the accident, prior to the statute's August 11, 2010 effective date. We disagree.

¶ 10 A statute is presumed to operate prospectively absent clear legislative intent that it apply retroactively. § 24-202, C.R.S. (2011); Ficarra v. Dep't of Regulatory Agencies, 849 P.2d 6, 14 (Colo.1993). This means that a statute applies to transactions that take place after the section's effective date unless the legislature clearly intends otherwise. In re Estate of DeWitt, 54 P.3d 849, 854 (Colo.2002).

¶ 11 The "transaction" to which section 10-1-185 pertains is a "recovery made on or after the applicable effective date" of the act. Ch. 164, see. 2 12, § 10-1-185, 2010 Colo. Sess. Laws 575, 580 (emphasis added); see also, I 1 (effective date of section 10-1-185 is August 11, 2010). Thus, section 10-1-135 will apply to this action if recovery was pending as of August 11, 2010. The legislature defines "recovery" for the purposes of section 10-1-185 as "a monetary award from a third party through either settlement or judgment to compensate an injured party for bodily injury sustained as a result of an act or omission of the third party." § 10-1-185(2)(d). Recovery has yet to occur in this case because the parties have not settled, nor has the trial court issued a final judgment. As such, section 10-1-185 applies to this action because recovery remains pending.

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Cite This Page — Counsel Stack

Bluebook (online)
2012 CO 32, 277 P.3d 224, 2012 WL 1493568, 2012 Colo. LEXIS 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-jeppsen-colo-2012.