Back in April I commented on a pending bill in Missouri to abolish the collateral source rule. In that post, I explained what this means and why, if adopted, the new law would be "bad news" for torts victims.
Today I am happy to report that Missouri's Governor has vetoed the bill. Go here for more information. Reportedly, the Governor concluded that the bill would be unfair to those who purchase insurance, which is exactly right. Tort reformers always argue that the collateral source rule is unfair because it allows plaintiffs to recover more that what they should in compensation. But this argument is based on a simplistic approach that does not take into account the fact that plaintiffs have paid for insurance. Thus the Governor is right that the new bill would essentially penalize those who have been paying for insurance all along and unduly benefit the wrongdoers.