Montgomery Ward & Co., Inc v. Anderson

Facts

Shirley Anderson (plaintiff-appellee) was shopping at Montgomery Ward & Co.’s (defendant-appellant) store. While at the store, she suffered a fall and was badly injured. Store personnel sent her to the hospital, where her bill for surgical and other medical-services expenses totaled $24,512.45. She reached an agreement with the hospital to have her bill discounted by fifty percent. Anderson sued Montgomery Ward & Co. for damages. At trial, Anderson presented the bill for $24,512.45 (which did not reflect the discount) as proof of her medical expenses. Montgomery Ward moved in limine to prohibit Anderson from presenting the total amount billed by the hospital as evidence. Instead, Montgomery Ward requested that the evidence be limited to the amount that reflected the discount from the hospital. The trial court ruled that the negotiated discount from the hospital was a collateral source, and allowed the entire total amount billed to be admitted into evidence. Montgomery Ward appealed to the Supreme Court of Arkansas, arguing that the trial court’s ruling on its motion in limine was erroneous.