Scholle v. Ehrichs.

2024 CO 22. No. 22SC639. Reduction of Damages—Collateral Source Evidence—Subrogation Against Insureds.

April 22, 2024

In this medical malpractice case, the Supreme Court considered the interrelationship between the collateral source statute, CRS § 13-21-111.6, and the Health Care Availability Act (HCAA), CRS §§ 13-64-101 to -503. Specifically, the Court examined whether the contract exception to the collateral source statute applies in a post-verdict proceeding under the HCAA seeking to reduce a jury’s damages award in a medical malpractice action.

The Court concluded that the contract exception to the collateral source statute prohibits a trial court from considering evidence regarding a plaintiff’s insurance contract liabilities when making its good cause determination under the HCAA and that CRS § 13-64-402 does not compel a different result.

Accordingly, the Court reversed that portion of the division majority’s opinion, affirmed the rest of the judgment, and remanded for the trial court to recalculate interest and enter judgment accordingly.