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See also Collateral source rule and all its subcategories. Compensatory damages are subject to the collateral source rule, which states that 'payments to the injured party from a collateral source are not allowed to diminish damages recoverable from the tortfeasor.' Hardi v. Mezzanotte, 818 A.2d 974, 984 (D.C. 2003). This collateral source rule applies when either (1) the source of the benefit is independent of the tortfeasor or (2) the plaintiff contracted for the possibility of a double recovery. Hardi, 818 A.2d at 984.

The collateral source rule explicitly permits compensatory damages to include written-off amounts. Hardi, 818 A.2d at 984. In Hardi, the health care provider reduced the required payment pursuant to a contractual agreement with the injured plaintiff's insurance company. Id. Just as the defendant argues here, Dr. Hardi argued that the plaintiff should not be able to recover written-off amounts. Id. at 984-85. The court ruled that the collateral source rule applied and the injured plaintiff should receive the benefit of the agreement 'including any reduction in payments that the insurance carrier was able to negotiate [for the plaintiff].' Id. The court relied in part on a case where ...

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