collateral source rule

collateral-source rule. Torts. The doctrine that if an injured party receives compensation for the injuries from a source independent of the tortfeasor, the payment should not be deducted from the damages that the tortfeasor must pay. • Insurance proceeds are the most common collateral source. — Also termed collateral-benefit rule. [Cases: Damages 59. C.J.S. Damages §§ 167, 169–170, 172, 174.]

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