Strasburg v. Union Pac. R.R. Co.
Annotate this CaseAppellee was employed as a carman for Union Pacific Railroad Company when he was injured by a chair that collapsed, causing injury to his back. Appellee filed a Federal Employers' Liability Act action against Union Pacific and also filed suit against the manufacturer of the chair, Steelcase, Inc. Appellee settled his case against Steelcase. The claim against Union Pacific proceeded to trial. A jury verdict was entered for Appellee in the amount of $1,032,375. The district court allowed Union Pacific to set off the verdict in the amount of $425,000 because of the settlement reached with Steelcase. The court also enforced a medical lien in the amount of $139,845 against that settlement. Union Pacific appealed. The Supreme Court affirmed, holding that the district court (1) did not err in allowing a setoff of the portion of Appellee's medical bills that were written off by Appellee's medical providers as a result of negotiations between Union Pacific and the providers; and (2) did not abuse its discretion by not modifying the allocation of Appellee's settlement with Steelcase and setting off that reallocated amount from the verdict.
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