Relates to bills as prima facie proof of damages

BILL NUMBER:S5262C

Title of bill

An act to amend the civil practice law and rules, in relation to bills as prima facie proof of damages

Purpose of bill

The current law provides for admissibility of certified bills up to $1,000 for auto repairs, thereby saving time and eliminating costs for patties to litigation and the court system. This legislation would update and expand CPLR 4533-a.

Summary of provisions of bill

This legislation would amend CPLR 4533-a (a) to increase the amount of certified bills that are admissible from $2,000 to $10,000.

The legislation would also add CPLR 4533-a (b) to provide for the admissibility of certified bills for expenses relating to supplies and services of medical facilities and providers paid pursuant to the workers' Compensation Law, Article 51 of the Insurance Law, and other third party carriers such as Blue Cross, Medicare, and Medicaid.

Justification

Historically, this Rule traces back to 1966 when it provided for the admissibility of certified paid bills of up to $2,000 for auto repairs. This proved beneficial to the parties, the public and the courts in that the necessity of bringing in a witness to prove an almost invariably undisputed item reduced litigation cost and saved the court time. Over the years the concept and the legislation were expanded to include services as well as repairs of varying nature, with advance notice to the adverse party, trial has been expedited, the cost of proof reduced and the necessity of inconveniencing providers largely eliminated.

However, services and repairs did not necessarily include supplies, an omission now covered, and the maximum amended amount allowed - $2,000, has fallen behind inflationary costs. The increased amount of $10,000 remedies this. Limiting the number of bills of each provider to one was intended to eliminate many hills at trial, but did not take into account expenses after the bill of particulars, so provision is made for any subsequent bill for continued expenses, the total not to exceed $10,000.

Notice to opposing counsel is increased from 10 to 21 days before trial to more adequately allow for checking the bills against discovery information or, if occasionally need be, to subpoena witnesses. Common law requires proof of reasonableness of the bill which the certified bill provides. However, reasonableness no longer is the standard for those items charged in accordance with statute or government rule. Most

medically related expenses are regulated by statutes, regulations or insurance allowances rather than reasonable value. For Worker Compensation and No Fault and other such third-party providers, prima facie evidence of the expenses and of "their reasonableness" will be the itemized records of payment, certified (or attested by deposition if needed when certification is not forthcoming). The amount of these types of bills - like hospital bills under CPLR 4518 (b) - are not capped. These bills are not recoverable by the patty, but are recoverable as liens by statute or rule.

Legislative history

04/27/09 REFERRED TO CODES 05/18/09 AMEND AND RECOMMIT TO CODES 05/18/09 PRINT NUMBER 5262A 01/06/10 REFERRED TO CODES 02/23/10 1ST REPORT CAL.154 02/24/10 2ND REPORT CAL. 03/01/10 ADVANCED TO THIRD READING

Fiscal implications for state and local governments

It is anticipated that the court system will benefit in that time and costs related to court proceedings will be reduced.

Effective date

This act shall take effect on the ninetieth day after it shall have become law.