Brown v. Stewart

In Brown v. Stewart (1982) 129 Cal. App. 3d 331, the claim was made that 42 United States Code section 1396a(a)(25)(A) preempted Civil Code section 3333.1. Civil Code section 3333.1 allowed a defendant in a personal injury professional negligence action against a health care provider to introduce evidence of collateral source payments. It allowed the defendant to introduce evidence of amounts paid pursuant to the United States Social Security Act as a benefit to the plaintiff because of the injury. (Id. at p. 334.) It also provided that " 'no source of collateral benefits introduced pursuant to subdivision (a) shall recover any amount against the plaintiff nor shall it be subrogated to the rights of the plaintiff against a defendant.' " (Ibid., ) The Court concluded that Medi-Cal liens were not encompassed by the language of Civil Code section 3333.1 because they were neither an amount " 'payable as a benefit to the plaintiff pursuant to the United States Social Security Act,' " nor an amount " 'payable as a benefit to the plaintiff as a result of the personal injury pursuant to . . . any contract or agreement of any group, organization, partnership, or corporation to provide, pay for, or reimburse the cost of medical, hospital, dental, or other health care services.' " (129 Cal. App. 3d at pp. 334, 337, 339-340, ) We referred to 42 United States Code section 1396a(a)(25), and stated, "We cannot presume the Legislature intended to enact a provision in violation of federal supremacy principles . . . ." (Id. at p. 341.) The concurring opinion was more direct. It stated, "Civil Code section 3333.1 impermissibly trenches upon provisions of the Social Security Act having precedence by virtue of the supremacy clause of the United States Constitution. As the majority opinion emphasizes . . . 'the Social Security Act itself requires participating states in the Medicaid program to seek reimbursement for Medicaid payments from third party tortfeasors. . . . Plainly, no reimbursement can be successfully sought where, by reason of Civil Code section 3333.1, subdivision (b), 'no source of collateral benefits introduced pursuant to subdivision (a) shall recover any amount against the plaintiff nor shall it be subrogated to the rights of the plaintiff against a defendant.' 'State action must give way to federal legislation where a valid "act of Congress fairly interpreted is in actual conflict with the law of the State." ' " (Brown v. Stewart, supra, 129 Cal. App. 3d at p. 346 (conc. opn. of Blease, J.).)