Weston v AKHappytime, LLC, d/b/a Alex Hotel & SuitesAnnotate this Case
Petitioner Lorna Weston was seriously injured when she slipped and fell on ice in a hotel parking lot. Medicare covered her medical expenses, settling the providers’ bills by paying less than one-fifth of the amounts billed. When she later sued the hotel for negligence, the hotel sought to bar her from introducing her original medical bills as evidence of her damages, arguing that only the amount Medicare actually paid was relevant and admissible. The superior court agreed and excluded the evidence. The Alaska Supreme Court granted Weston's petition for review the following questions: (1) whether evidence of medical expenses was properly limited to the amounts actually paid, or whether the amounts billed by the providers - even if later discounted - were relevant evidence of damages; and (2) whether the difference between the amounts billed by the providers and the amounts actually paid was a benefit from a collateral source, subject to the collateral source rule. The Supreme Court concluded that the amounts billed by the providers were relevant evidence of the medical services’ reasonable value. Furthermore, the Court concluded the difference between the amounts billed and the amounts paid was a benefit to the injured party that was subject to the collateral source rule; as such, evidence of the amounts paid was excluded from the jury’s consideration but was subject to post-trial proceedings under AS 09.17.070 for possible reduction of the damages award.