One of the more difficult issues that can evolve during a personal injury case is the assertion of liens by a healthcare insurance carrier and provider, Medicaid and Medicare, and workers’ compensation insurance carrier, or for past due child support obligations. In short, liens are a property interest held by a third-party against the financial recovery awarded for personal injury settlement or final judgment obtained. In other words, a Plaintiff may be required to pay a portion of their settlement proceeds to a third-party for a related lien.
This can sometimes be a surprise to an injured party, because after years of litigation they believe the fight it over. However, counsel for the plaintiff may need to challenge and negotiate down a lien to ensure a larger net recovery for the injured client. This article will discuss some of the common liens that may affect the potential net recovery by a plaintiff in a personal injury case.