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Martino v. Dyer11/22/2000
The trial court granted the motion of an attorney seeking collection of a pro rata share of his fee from a hospital lien against his client's settlement. The effect of the trial court's order is to require the hospital to pay fees to an attorney it did not hire. We reverse the judgment.
Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Reversed and Remanded
Patricia J. Cottrell, J., delivered the opinion of the court, in which Ben H. Cantrell, P.J., M.S., and William C. Koch, Jr., J., joined.
OPINION
Anita Martino was injured in an automobile accident and received treatment for these injuries at Sumner Regional Medical Center (SRMC). Ms. Martino filed suit against Robert L. Dyer, the driver of the other vehicle involved in the collision, and informed SRMC that she was seeking damages from the other driver. Rather than filing a lawsuit against Ms. Martino to collect on its bill, the hospital held her outstanding accounts for some time. After she notified the hospital she was proceeding against the other driver, SRMC filed an amended Notice of Hospital Lien for the amount of $8,786.00 pursuant to Tenn. Code Ann. ยง 29-22-101. Ms. Martino and Mr. Dyer reached a settlement agreement for $42,500. Mr. Dyer's attorney delivered a check for this amount to Mr. Dalton, attorney for Ms. Martino. Mr. Dalton retained the $8,786.00 claimed by SRMC, despite inquiries from the hospital as to its status, and then filed a motion for attorney fees "for the collection of monies on behalf of Sumner Regional Medical Center in the amount of $8,786.00" requesting one-third of the amount of the hospital lien. The trial court granted this motion, ordering Mr. Dalton to pay $5,887.00 to SRMC. The trial court found that Mr. Dalton had already deducted his fee from the net settlement and ordered that the remaining $2,899.00 of the total money attached by the hospital lien be given to Ms. Martino as compensation. The trial court stated:
he amount due Sumner Regional Medical Center from . . . the settlement proceeds held in escrow is the amount of the lien filed less the amount of attorney fee charged Ms. Martino on the amount claimed by the lien. The attorney fee charged on the amount claimed by the lien should be the same percentage as was charged on the entire settlement. The amount of the attorney fee charged Ms. Martino on the amount of the lien of Sumner Regional Medical Center shall be refunded to Ms. Martino out of the proceeds of the settlement funds held in escrow by Attorney Dalton.
In essence, the trial court awarded Ms. Martino's counsel 33% of the hospital's recovery to be deducted from the hospital's payment.
I.
We begin our analysis with the statute creating hospital liens:
a) Every person, firm, association, corporation, institution, or any governmental unit, including the state of Tennessee, any county or municipalities operating and maintaining a hospital in this state, shall have a lien for all reasonable and necessary charges for hospital care, treatment and maintenance of ill or injured persons upon any and all causes of action, suits, claims, counterclaims or demands accruing to the person to whom such care, treatment or maintenance was furnished, or accruing to the legal representatives of such person in the case of his or her death, on account of illness or injuries giving rise to such causes of action or claims and which necessitated such hospital care, treatment and maintenance.
b) The hospital lien, however, shall not apply to any amount in excess of one-third (1/3) of the damages obtained or recovered by such person by judgment, settlement or compromise rendered
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