What is a subrogation lien in a personal injury case? Subrogation liens allow other entities – often insurance companies – to legally request a portion of your final monetary settlement or award after a personal injury claim.
Subrogation liens can reduce the funds available to assist with your recovery. Fortunately, a personal injury lawyer may be able to lower the amount of the lien or determine if you must pay it after your case.
Find out more about this legal issue by contacting our team at the Morelli Law Firm. We’re ready to answer your questions when you call us or complete our online contact form.
What does Subrogation Mean in Personal Injury Claims?
Lawyers and insurance agents used the term subrogation (sometimes called subro) to refer to an insurance company’s right to request reimbursement after settling your injury claim.
Generally, insurance companies can only file for subrogation if they’ve already covered your claim. For example, let’s say you were in a car accident and broke your leg. Your insurance company stepped in to cover the costs of your emergency room visit and other treatment.
However, after the insurance company covered these expenses, you filed a personal injury claim against the driver who hurt you. The court decided the other driver was at fault. In this situation, the insurance company may seek compensation through subrogation.
What Is a Subrogation Lien?
What is a subrogation lien in a personal injury case? In this circumstance, subrogation liens are legal requests that attach to settlements or awards associated with personal injury claims. They allow third parties to request a portion of your monetary award.
Who Can File a Subrogation Lien in a Personal Injury Claim?
The regulations surrounding subrogation liens can vary by state. In New York, for example, the law limits the ability to file subrogation liens, preventing most insurance providers from filing this kind of request.
However, some parties can file these liens, including:
- Federal public health insurance providers
- Insurance providers involved in a no-fault settlement
- Agencies offering self-funded ERISA plans
Additionally, the New York workers’ compensation insurance agency may file a subrogation lien. Furthermore, legal codes in New York allow hospitals and most medical providers to put liens on personal injury settlements.
A personal injury lawyer can assess the specifics of your case, providing you with information about parties that could file a subrogation lien. Keep in mind that the usage of these liens varies by state and that exceptions may apply in some cases.
When do You Have to Pay Subrogation Liens in Personal Injury Cass?
If someone files a subrogation lien against your personal injury settlement, when do they receive money? Generally, the money comes out of your award or settlement before you receive any of the proceeds.
Do You Have to Adhere to a Subrogation Lien in a Personal Injury Case?
Many individuals feel frustrated by the financial losses represented by a subrogation lien. We understand the impact these liens can have on your final compensation. However, they are legal in most court systems.
Therefore, ignoring a subrogation lien can allow the party who issued the lien to seek compensation in court. You can face a lawsuit if you refuse to adhere to a legal subrogation lien.
Failure to pay your lien can even result in the court awarding the other party additional funds from your settlement or ward. Make sure you speak to a lawyer about required payments to avoid legal issues.
Can You Defend Against Subrogation in Your Personal Injury Case?
A personal injury lawyer may handle subrogation liens while handling your claim. Lawyers may go through several steps when dealing with liens, including:
Researching the Validity of the Lien
Your personal injury attorney can dig into the lien to ensure it’s valid and legal. Lawyers can challenge liens made by parties without a legal right to seek compensation from your personal injury settlement or verdict.
If your lawyer successfully challenges the lien in court, you do not have to pay out that portion of your financial award.
Negotiating a Lower Lien Amount
Your personal injury lawyer may also work to lower the overall amount of the lien. Taking this step allows you to keep more of your monetary award. However, in some cases, providers may only be able to secure a set percentage of your final settlement amount.
Checking the Statute of Limitations
Providers that file subrogation liens on a personal injury claim generally have to do so in a set amount of time. If they file a lien after their statute of limitations expires, your lawyer can block the lien.
How Should You Respond to a Subrogation Lien?
What should you do if you receive paperwork for a subrogation lien for your personal injury claim? First, the experts recommend that you contact your lawyer to allow them to look over the document and assess its validity.
Sometimes, your lawyer may advise you to sign the documents, especially if you have to sign them to continue receiving medical treatment. However, always allow a lawyer to check the legality of a lien before you agree to the terms of the document.
Ensure you contact your lawyer after you receive any subrogation lien and do your best to track all expenses and payments associated with your case for the best results.
Speak to Us About a Subrogation Lien in a Personal Injury Case
What is a subrogation lien in a personal injury case? These liens can allow organizations to seek a portion of your compensation after resolving your claim, reducing your total financial award.
You can learn more about subrogation liens with a personal injury lawyer from our team at the Morelli Law Firm. We’re ready to answer your questions when you complete our online contact form or call us.