What is a Lien on a Personal Injury Lawsuit?

What is a Lien on a Personal Injury Lawsuit?

Personal Injury Info

A lien is a third party’s legally enforceable right to take funds they are due out of the settlement before the plaintiff can receive any of the proceeds. In Virginia, several laws affect when a lien can reduce a personal injury settlement, creating uncertainty as to how much a plaintiff will ultimately receive. If you are facing a lawsuit, a personal injury lawyer can provide a customized analysis based on your situation.

How Liens Arise in Personal Injury Cases

The most common liens are related to medical care. When another party pays for some or all of the treatment of the plaintiff’s injuries, that entity– often an insurance company, healthcare provider, or government agency– could potentially have a lien for repayment.

Liens are created under state and federal laws, which can be contradictory. Under Virginia law, certain healthcare providers who provide medical services to personal injury victims have a lien on the patient’s claim against the negligent party. However, the lien is limited to a reasonable charge for the service. There are caps of $2,500 for a hospital or nursing home, $750 for each physician, nurse, physical therapist, or pharmacy, and $200 for each ambulance service.

Unlike many other states, Virginia does not allow insurers to assert liens for medical payments. However, there are many cases where this law is trumped by federal law. That means a lien by your medical or auto insurer may be invalid under Commonwealth statute, but a lien by Medicare or Medicaid may still be enforceable under federal law.

Liens can arise from other debts as well. For example, if there is a child support debt, that may need to be paid out before the victim receives any proceeds. Discuss your situation with a personal injury lawyer to find out what to expect in your case.

How to Handle Personal Injury Liens

It may seem unfair to have to pay back money related to an injury when you were the victim, but this policy is designed to prevent double-dipping. If your insurance policy pays your medical bills and then you are reimbursed by the at-fault party for those same bills, it would be a double recovery for you. Liens are meant to prevent this.

If you tackle your personal injury case on your own, you may be unaware of liens, and they could end up eating away at your proceeds. If you work with an experienced personal injury lawyer, they will attempt to negotiate the amounts that lienholders will accept; this can result in a significantly higher settlement. Often lienholders will accept a lower guaranteed amount, enabling a settlement rather than risk getting nothing if the case goes to trial.

Contact Us for a Free Consultation

At Rutter Mills, our team is committed to helping our neighbors in Newport News, Virginia Beach, and the surrounding communities recover the maximum compensation. Call today to schedule a free consultation.

Contact a Rutter Mills attorney to speak about your case today.

EXPERIENCE

Years Helping Our Clients

LOCATIONS

Convenient Offices

TEAM

Team members ready to help.

TESTIMONIALS

You don’t have to worry about the bills, just get healthy.

Dave Put His Trust in Us

Don’t Fall For The Insurance Company’s Games

Dave suffered serious injuries in a car accident. The defendant’s insurance company tried to offer him a low amount so Dave called Rutter Mills. We took over dealing with the insurance and got Dave the money he needed to get back on his feet.

They enabled me to be happy in life again.

Get Back On Track

Protecting Your Future

Glenn’s car accident changed his life, but not permanently thanks to the help of his Rutter Mills attorney. When the insurance companies wouldn’t help him, our team fought back and won.

I knew I needed Rutter Mills.

Fighting For What's Right

Getting Justice

On his way home from work at the shipyard, Dan was involved in an accident. He tried to file a claim on his own, but the insurance company wouldn’t give him the money he needed to put his life back on track. Dan knew he needed to call Rutter Mills.

They actually won my case 3 times!

Larena's Win

After her car accident, Larena asked her father, a local stevedore, for his advice on who to call. He recommended Rutter Mills. Her team of car accident experts at Rutter Mills fought back when the insurance companies tried to deny her the money she needed to recuperate from her injuries. We took her case to trial – and won. When the insurance company filed their appeals, we beat them again – two more times! Larena got the money she needed and the justice she deserved.

We’re going to immediately call Rutter Mills. That’s the people I trust with my baby girl.

Who Do You Trust With Your Family?

After a car accident, Jamaree’s first call was to her mom. She was shaken up and scared. Mom told her “We’re calling Rutter Mills. Her next was to Rutter Mills. Her Rutter Mills car accident team helped her get compensation “above & beyond” what she was expecting.

They lifted allot of stress off my shoulders. I recommend them to anybody because they WILL fight for you.

Who Can You Turn To?

Referrals From Friends and Family

After John was seriously injured in a motorcycle accident, he turned to the person he trusts most for a recommendation. His wife, a paralegal of 30 years, told him to call Rutter Mills on the advice of the lawyer she worked for.

They really care for you as a person. Words cannot describe what Rutter Mills did for me and for my case.

When You Need Someone In Your Corner

Don’t Go It Alone

When the insurance company tried to get Carol to sign paperwork after her car accident, she knew she needed a lawyer. Carol knew she needed Rutter Mills.

When I called Rutter Mills, I knew it was the right fit. They’re so interested in helping you get justice.

Getting The Justice You Deserve

When Mom Needs Strength

Taryn was in a car accident while she was pregnant. She knew she needed someone in her corner to protect her rights and her family’s future.

There’s attorneys, then there’s Rutter Mills.

We're Here When The Unexpected Happens

Priorities

A devasting accident changed Levon’s life forever. The physical and emotional toll left him scared and in pain. When the insurance company for the defendant contacted the family, they made an offer that did not even cover the cost of the medication, much less doctors’ bills, and physical therapy. They knew they needed to talk to a serious lawyer. Rutter Mills took care of the negotiation so Levon could focus on healing.

When you’ve got a serious injury, you need a serious lawyer. That’s why we chose Rutter Mills.

Motorcycle Accidents Change Everything

When Ed was injured in a motorcycle crash, he knew he needed a serious lawyer to protect his rights. The insurance companies were fighting him every step of the way. Rutter Mills helped prove Ed’s case and get him the money he needed to get on the road to recovery.

With the seriousness of the accident, I knew that we needed a serious lawyer. I needed Rutter Mills.

Carol & Levon's Story

They knew they needed a serious lawyer when Carol and her son were seriously injured. After the other party’s insurance company tried to get her to settle for less than she needed, Carol called Rutter Mills for help. We took on the insurance company so she could focus on healing.