ILNews

Hospital doesn't owe attorney any contingency fees

Back to TopCommentsE-mailPrintBookmark and Share

A Kokomo attorney is not entitled to collect his contingency fees from a hospital in his representation of a patient caught in an insurance dispute, the Indiana Court of Appeals has held.

Patient T.W. was admitted to St. Francis Hospital in Beech Grove for emergency treatment of kidney cancer. He had insurance with Kaiser Permanente of Southern California, but his insurer refused to pay the $26,524.27 bill because T.W. didn’t receive the treatment in California.

T.W. hired Alan D. Wilson to go after Kaiser for not paying the bill and he agreed to pay Wilson on a contingency fee basis. Kaiser later paid the entire amount directly to St. Francis. Wilson then tried to recover one-third of the amount from St. Francis by asserting an attorney’s lien. St. Francis refused to pay, and Wilson filed his complaint seeking the money.

The Court of Appeals affirmed the entry of summary judgment in favor of St. Francis in Alan D. Wilson v. Sisters of St. Francis Health Services, No. 34A02-1101-CC-57. Wilson also argued he was entitled to the money because St. Francis had asserted a hospital lien, which is subordinate to an attorney fee lien.

Wilson does not have a valid equitable attorney fee lien on the payment made by Kaiser to St. Francis, the judges ruled. Wilson failed to cite any authority that allows a charging lien under these circumstances – that insurance payments made to a third party under the client’s health insurance policy are subject to a charging lien.

The appellate court also rejected Wilson’s claim that he’s entitled to the money based on an unjust enrichment theory. The judges agreed that the hospital, which is a “stranger” to the contingency fee agreement, shouldn’t be forced to carry the burden of T.W.’s contractual obligations. Wilson didn’t prove that a measurable benefit was conferred on St. Francis that it’s retention of the insurance payment without payment of attorney fees would be unjust.

The judges also found that because St. Francis did not have a valid hospital lien and Wilson didn’t have a valid attorney lien, the statutory requirement that a hospital lien be “subject and subordinate to any attorney’s lien” wasn’t applicable.
 

ADVERTISEMENT

  • No good deed goes unpunished
    Another blow to lawyers. So, this lawyer agrees to a contingency fee to go after $27,000. He fights the insurance company, and wins for the intended third party beneficiary (the hospital). Then, he has to actually bring suit against the hospital for approximately $9,000, which, in turn, goes up on appeal. Wow. That's a lot of work for $9,000. My question is how much work was expended in the first place, trying to get the insurance company to cough up the money.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I can understand a 10 yr suspension for drinking and driving and not following the rules,but don't you think the people who compleate their sentences and are trying to be good people of their community,and are on the right path should be able to obtain a drivers license to do as they please.We as a state should encourage good behavior instead of saying well you did all your time but we can't give you a license come on.When is a persons time served than cause from where I'm standing,its still a punishment,when u can't have the freedom to go where ever you want to in car,truck ,motorcycle,maybe their should be better programs for people instead of just throwing them away like daily trash,then expecting them to change because they we in jail or prison for x amount of yrs.Everyone should look around because we all pay each others bills,and keep each other in business..better knowledge equals better community equals better people...just my 2 cents

  2. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  3. My situation was hopeless me and my husband was on the verge of divorce. I was in a awful state and felt that I was not able to cope with life any longer. I found out about this great spell caster drlawrencespelltemple@hotmail.com and tried him. Well, he did return and now we are doing well again, more than ever before. Thank you so much Drlawrencespelltemple@hotmail.comi will forever be grateful to you Drlawrencespelltemple@hotmail.com

  4. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  5. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

ADVERTISEMENT