Verdict in Personal Injury Case May Limit Future Attorney-Physician Protections

Plaintiff attorneys seeking compensation for the injuries and medical treatment of clients in personal injury claims have long relied on Letters of Protection to prevent discovery of the terms, conditions, practices and fees found in the agreements with treating physicians. These LOPs have generally been accepted by the judiciary.

That acceptance was codified by the Texas Legislature in 2001 through what was called the “paid and incurred statute.” This effectively limited plaintiffs in personal injury litigation to only showing the jury the medical bills that were actually paid by the insurer. Prior to the statute, plaintiffs could show the jury the total amount of medical expenses even though what the insurer paid was discounted based on CPT codes and usual and customary practices.