Joseph A. Gill and Jani P. Gill v. Christopher Allen Waltz and Swift Transportation Company, LLC

Summary

The court held that a workers’ compensation insurer’s settlement of its subrogation claim with a third-party tortfeasor extinguishes the injured employee’s claim for economic damages arising from medical services covered by that settlement. The employee may still pursue noneconomic damages and economic damages not covered by workers’ compensation, but evidence of the billed or paid amounts for settled medical services is irrelevant and the collateral source rule is not implicated. The case was returned to the federal district court for further proceedings.