Another case on Hanif

Codner v. Wills (2009) 2009 WL 4915839 is not published but it is a case that is worth looking at for personal injury lawyers due to its treatment of Hanif issues. It was decided by Division Six of the Second Appellate District in Ventura with Justice Perren writing the opinion.

Codner was driving a motorcycle when he collided with a car driven by Wills near the exit of In-N-Out Burger in Ventura. Liability was disputed and cross-complaints were filed by Wills and In-N-Out. In-N-Out settled with Codner before trial. Even though the trial court approved the settlement, In-N-Out participated at trial. The jury found Wills was 100% at fault and awarded damages of $3,084,305.29.

Wills appealed, challenging several rulings during trial. He also claimed the trial court erred in denying his post-verdict to reduce the award for past medical expenses to the amount that Codner’s insurer actually paid. In-N-Out also cross-appealed.

Wills relied on Hanif v. Housing Authority (1988) 200 Cal.App.3d 635 to support his request for a reduction in past medical expenses. The opinion does not cite the recently published case of Howell v. Hamilton Meats & Provisions, Inc. (2009) 179 Cal.App.4th 686. The court concluded that Wills had not met his burden of showing that the plaintiff did not remain liable for the full costs of medical services. Wills provided statements from Accent, a “financial recovery company” (aka bill collector), showing that Codner’s medical providers assigned their claims to Accdent for a reduced sum.

The court stated,

“The amount for which a medical provider is willing to sell and a third party is willing to buy an account receivable has little if any bearing on the value of the services rendered to the plaintiff and provides no basis for concluding that [plaintiff] does not remain liable for payment of the full amount of the services provided.”

(Opn., pg. 14)

Because Wills failed to eliminate the possibility that Codner had potential liability for the full cost of medical services provided, he had not carried his burden. Thus, it appears here the determinative issue was whether the plaintiff had potential liability, which might have been established in contractual agreements between plaintiff and his insurer. Lack of financial liability could also have been established by obtaining an acknowledgment from plaintiff, Accent, or the medical providers that Codner was off the hook for the excess sum.