Legal Question in Personal Injury in California
interpertation of civil code
I was in an auto accident and the hospital has put a lien on my auto insurance company stating ca civil code 3045.4 says the hospital gets 50 % of my settlement amount, and I have spoken to an attorney and he says the hospital gets 50% after his fees/costs if I hire him. I read the code and it looks like 50% of the full settlement. Can you clarify which is correct.
3 Answers from Attorneys
Re: interpertation of civil code
If you recover money under your own insurance policy, no money is due. Money is due only from a culpable (i.e. the one responsible) third party. What you're asking is "who has priority of liens, the attorney or the medical provider?" I think your attorney is correct. The medical provider's lien is "not effective unless a written notice" is provided in the form required by �3045.3. As your attorney has the first-in-line lien if you signed a retainer agreement, the settlement amount is reduced by your attorney's fees and costs, and the medical provider may look to 50 percent of that reduced recovery from the person who caused the injury. Section 3045.4 says that prior liens are to be paid first (i.e. attorney's fees and costs).
Re: interpertation of civil code
In rereading your message, it appears you did not yet hire the attorney. Since you're on notice of the hospital lien already, the hospital would take first, and your attorney would be left to take a piece of the remaining crumbs.
Re: interpertation of civil code
The code section providing for 50% of your recovery applies only upto the full amount the lien for medical services. Often these liens can be reduced significantly.