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Liens are asserted by hospitals, health insurance, auto insurance, Veterans Benefits, Medicare, Medicaid, Workers' Compensation, hospitals, doctors and others. They can file a claim in court against the settlement to ensure that they receive payment out of your settlement or judgment.
A personal injury lien in California is the legal right of a third party to take a portion of the proceeds recovered in a settlement or jury verdict. Liens may be necessary when injured victims need medical treatment but do not have the funds or insurance coverage to pay for it while waiting for their case to resolve.
If your lawyer makes a mistake in your matter, you can sue the lawyer for malpractice.
If you receive an accident settlement from the at-fault driver's insurance, the medical lien must be paid from the settlement. If your insurance does not pay the bills, you may have significant medical debt. The hospital may begin collection efforts.
Takeaway: If an attorney wants to create a valid attorney's lien under California law, the attorney will need to: (1) have an express provision in the fee agreement regarding the lien (express), or (2) have language in the fee agreement providing that the attorney will be paid for services rendered from the judgment ...