Who Might Have Lien on Personal Injury Settlement?

  • November 16, 2020

A lien is a request for reimbursement. Personal injury lawyers deal with liens from individuals and groups that have helped to pay for an injured client’s treatment.

Examples of groups that might become lien holders

  • A provider of health insurance
  • Medicare
  • Medicaid
  • A workers’ compensation insurer

How could one person have a lien, and a reason to ask for reimbursement from a personal injury lawyer?

An individual might have agreed to help with a friend or relative’s recovery. For example, some person might have paid for the client’s at-home physical therapy system. They can later ask for reimbursement after the damages are paid out. The fact remains that they helped when the claimant did not have the funds to be treated and that is one of the reasons that all liens have to be paid out first.

How is payment of the lien holder handled?

The lien holder contacts the claimant’s lawyer. Lien holders are supposed to get their money before any of the funds from a settlement or a court-ordered award go to the associated claimant/plaintiff. Every personal injury attorney is expected to honor that obligation.

Do lien holders always receive the amount of money that was stated in the first request to a given client’s lawyer?

No, smart lawyers make a point of negotiating with the lien holder. An experienced attorney would contact the person seeking the reimbursement, and would do so before the client had received any money.

In that way, the same attorney could indicate that the client’s chances for receiving a large compensation or court-ordered award were rather small. Faced with such information, the lien holder’s determination to stick with the initial demand would probably diminish.

In other words, the lien’s size would probably get smaller. Consequently, lien holders’ chances for obtaining all of the money that had been paid out to someone with a personal injury tends to be rather small. Still, lawyers cannot simply ignore a lien holder’s request for reimbursement of money paid out.

A personal injury lawyer in Oak Park would have broken the law by ignoring such a request. So, that same lawyer would suffer some form of punishment. For instance, he or she might be deprived of the opportunity to support a client in a courtroom.

Any potential client should keep that fact in mind. Each should learn about any considered lawyer’s readiness to appear in court.

However, irrespective of the injuries that you have received in the accident, it is important that you call on the services of a lawyer that has enough experience in such aspects of the claims.