In the context of a personal injury lawsuit, a lien is a claim or encumbrance placed on a portion of the injured plaintiff's monetary recovery by a third-party. Liens on personal injury settlements are authorized by law, their purpose being to allow certain third-parties the ability to recoup monies spent on medical treatment and care for an injured plaintiff.
Third-parties who are authorized to assert liens on personal injury settlements include healthcare insurance carriers and providers, Medicaid and Medicare, automobile insurers, and workers' compensation insurance carriers. Lien limits may vary based on the specific third-party who is asserting the lien. Importantly, under certain circumstances liens may be challenged and/or negotiated down from the legally permissible limits, resulting in a higher net settlement recovery for an injured plaintiff.
Due to the various types of insurers, service providers and liens involved in personal injury lawsuits, it is imperative that injured persons consult with an experienced New Jersey / New York Personal Injury Lawyer who can properly identify and analyze the liens that may be asserted on a personal injury settlement. Failure to recognize and satisfy all applicable liens on a personal injury settlement can not only result in a lower net settlement recovery for an injured plaintiff, but can also result in a continuing debt against the injured plaintiff that remains in place after the conclusion of the personal injury lawsuit.
The Reinartz Law Firm is experienced in a variety of personal injury matters. Our offices are located in Jersey City, New Jersey and downtown Manhattan. Contact us if you have been injured or have a question regarding any lien that might be asserted on your New Jersey / New York personal injury lawsuit.