Gardner v. Norman, 2025 UT 47
Supreme Court of Utah
October 30, 2025
JSH Attorney: Jonathan P. Barnes, Jr.
Facts: Norman was driving a marked Salt Lake City police vehicle when he rear-ended Gardner’s car. Gardner went to the emergency room and saw an eye doctor. The hospital billed Gardner $7,175.77 for the emergency room visit. But as required by an existing contract between Gardner’s health insurance and the hospital, the amount his insurance paid to fully satisfy the bill was $4,395.75. For Gardner’s eye exam, the amount billed by the hospital and paid by his insurance was $92.
Gardner brought a negligence claim against Norman, seeking special damages for his past medical expenses and general damages for pain and suffering. Gardner sought $7,267.77 in special damages, representing the gross charges listed on the initial bill he received from the hospital. Norman moved to exclude all evidence of the gross charge. The district court denied Norman’s motion, ruling that “the insurance company payment and discount that were received as a benefit to the plaintiff fit under the collateral source doctrine.” Gardner moved to exclude any evidence or mention of the negotiated charges he or his insurance actually paid for medical services as opposed to the gross charges originally billed. The district court granted Gardner’s motion ruling that evidence of “insurance discounts” would be excluded from the trial.
At the conclusion of the bench trial, the court determined that Norman breached his duty of care and proximately caused Gardner’s injuries. In addition to general damages, the court awarded Gardner special damages for past medical expenses in the amount of $7,267.77—the gross charge initially billed by the hospital. Norman appealed. The Utah Supreme Court elected to retain the appeal, vacated the award, and remanded for a new trial on special damages.
Rationale: Negotiated charges are admissible under the collateral source rule because the gross charge does not accurately reflect the plaintiff’s past medical expenses; neither the plaintiff nor his or her insurance were ever obligated to pay that amount. Special damages must reflect the actual loss resulting from the tortfeasor’s conduct. Under the collateral source rule, the fact that a third party bore that loss is inadmissible and cannot be used to reduce a plaintiff’s recovery. But that rule does not alter the fundamental principle that special damages are limited to the actual loss resulting from the injury. Because the difference between the gross charge and the negotiated charge was not a benefit to the plaintiff from a collateral source, the rule does not apply.
Holding: The collateral source rule does not require exclusion of the negotiated charges for a plaintiff’s medical care.
Jonathan P. Barnes, Jr. is a clerkship-trained appellate lawyer with significant experience handling federal and state appeals in all types of civil litigation, including insurance bad faith, medical malpractice, governmental liability, premises liability, employment, family law, and torts. In addition to briefing and arguing appeals, Jon also assists trial counsel with crafting litigation strategy, preserving the record for appeal, and preparing and arguing complex motions.
jbarnes@jshfirm.com | 602.263.4552 | jshfirm.com/jbarnes