On April 28, 2010, the Pennsylvania Supreme Court clarified and reinforced the PaMVFRL’s (75 Pa. C.S.A. 1722) preclusion of recovery in UM/UIM actions of health or disability benefits previously paid or payable. Justice Saylor wrote the opinion for the majority in Tannenbaum v. Nationwide, concluding that recovery under UM/UIM policies may be offset by group benefits. including disability benefits, purchased by the insured, at least as long as the benefits are not subject to subrogation. In reaching this conclusion, the Supreme Court refused to employ the previous justification for application of the collateral source rule: that plaintiff had previously paid for the collateral benefits and therefore recovery without an offset of these benefits would not constitute a windfall recovery.
For more information on this important decision, or any other aspect of the Pennsylvania Motor Vehicle Financial Responsibility Law, do not hesitate to contact me.
John A. Livingood, Jr.