Coming to Construction Claims - The Collateral Source Rule | Smith Anderson

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In another significant opinion from the North Carolina appellate courts, the Court of Appeals recently expanded the application of the collateral source rule to negligence claims arising out of construction disputes in a case of first impression,
Carolina-A-Contracting, LLC v. J. Scott Campbell Construction Company, Inc., 2021-NCCOA-62 (Mar. 16, 2021). In general terms, the collateral source rule provides that a negligent party is not entitled to a credit for payments made by an independent source, such as an insurance company, to the injured party for the same injury. As the Court noted, this common-law rule is an exception to the general legal principle that there can only be one recovery for one injury.

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