Definition
The Howell rule, from Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th 541, limits plaintiffs with health insurance to recovering the amount actually paid for medical services by the insurer, not the full billed amount.
In California Rear-End Collision Cases
The Howell rule affects California rear-end collision cases where the victim has health insurance. If a medical provider billed $50,000 for treatment but the health insurer negotiated the payment down to $20,000, the plaintiff can recover only $20,000 in economic damages for that medical treatment — not $50,000. This rule can significantly affect the economic damage component of rear-end collision settlements.
California Law Context
California rear-end collision law applies this concept within the framework of Vehicle Code Section 21703's rebuttable presumption of fault, the eggshell plaintiff rule, pure comparative fault from Li v. Yellow Cab Co. (1975), the two-year statute of limitations under CCP Section 335.1, and uncapped economic and non-economic damages.
Frequently Asked Questions
What is Howell Rule in California rear-end collision law?
The Howell rule, from Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th 541, limits plaintiffs with health insurance to recovering the amount actually paid for medical services by the insurer, not the full billed amount.
How does Howell Rule affect a California rear-end collision claim?
The Howell rule affects California rear-end collision cases where the victim has health insurance. If a medical provider billed $50,000 for treatment but the health insurer negotiated the payment down to $20,000, the plaintiff can recover only $20,000 in economic damages for that medical treatment — not $50,000. This rule can significantly affect the economic damage component of rear-end collision settlements.
How does this interact with California's pure comparative fault system?
Howell Rule interacts with California's pure comparative fault system from Li v. Yellow Cab Co. (1975) in rear-end collision cases. Even when Howell Rule reduces or complicates the plaintiff's claim, California's pure comparative fault allows recovery so long as the plaintiff was not 100% at fault. Recovery is reduced proportionally by any plaintiff fault, but the Howell Rule principle generally operates to preserve the plaintiff's right to recover.