## Facts

- Julius Oden, an ironworker employed by Streeter Associates, Inc. (general contractor), was injured during demolition/reconstruction work at an Anchor Glass facility in Chemung County, New York.
- A vertical steel support column fell and struck Oden; the column was apparently dislodged by a small hydraulic crane.
- The premises were owned by Chemung County Industrial Development Agency (IDA) and leased to Anchor Glass Container Corporation.
- Streeter contracted with J.P.W. Riggers & Erectors Inc. (JPW) to supply the crane; the crane operator, David E. Dyer, was provided to JPW through a staffing entity (Personnel Pool of Syracuse Inc.).
- Oden sued multiple defendants under Labor Law §§ 200, 240(1), 241(6), and common-law negligence; defendants asserted cross-claims and sought judgment over/indemnity against Streeter.
- After a bifurcated trial, the jury awarded: $5,752.75 past medical expenses; $20,000 pain and suffering; $27,550 past lost earnings; $66,000 lost pension benefits; and $80,000 future lost earnings and health/welfare benefits.
- At a post-verdict collateral-source hearing under CPLR 4545(c), the trial court found Oden would receive disability retirement benefits valued at $141,330 and reduced the total future economic-loss award ($146,000) by that amount.
- The Appellate Division modified, holding the disability retirement benefits could offset only the lost pension component, not future lost earnings and health/welfare benefits.

## Issues

1. Under CPLR 4545(c), may a court reduce the entire “economic loss” portion of a verdict by collateral-source payments, or only reduce the particular damage category that the collateral payments replace?

## Decision

- The Court of Appeals affirmed the Appellate Division.
- CPLR 4545(c) permits an offset only when the collateral-source payment corresponds to a specific category of economic loss for which the jury awarded damages.
- Disability retirement benefits could offset the award for lost pension benefits, but could not reduce the award for future lost earnings and health and welfare benefits.

## Legal Principles

- CPLR 4545(c) requires a category-by-category comparison between the elements of economic loss awarded and the collateral benefits the plaintiff will receive.
- A collateral-source reduction is authorized only to the extent the collateral benefit replaces the same type of loss compensated by the verdict.
- Because CPLR 4545(c) limits the common-law collateral source rule, it is construed narrowly and is not applied to reduce damages for losses the collateral benefit does not replace.
- The statutory aim is to prevent duplicative recovery without relieving a tortfeasor of responsibility for uncompensated economic loss.

## Conclusion

The Court held that CPLR 4545(c) does not authorize a global reduction of a verdict’s economic-loss component; a court may offset only those damages that are directly replaced by a corresponding collateral source, limiting the offset here to the lost pension award and preserving the award for future lost earnings and benefits.


Oden v. Chemung Cnty. Indus. Dev. Agency, 87 N.Y.2d 81 (1995)