Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney to address your specific situation.
Detailed Answer
When you settle a personal injury claim in Wyoming, you must identify and satisfy all hospital and insurer liens before you disburse net settlement proceeds. Failing to resolve liens can expose you and your client to double payment claims and ethical issues. Follow these key steps under Wyoming law:
1. Conduct a Comprehensive Lien Search
Begin by obtaining all medical treatment records and billing statements related to the incident. Cross-check the patient’s records with hospital billing departments and known health insurers. Ask opposing counsel and the claims adjuster to disclose any liens they know of. Document every potential lienholder.
2. Review Wyoming Hospital Lien Statutes (W.S. 16-6-401 et seq.)
Wyoming grants hospitals a statutory lien for services provided to an injured patient. Under W.S. 16-6-402, the lien attaches when the hospital delivers written notice to the patient or patient’s attorney, within 30 days of the first treatment. Ensure the hospital has satisfied notice requirements. If they have not, you may challenge lien validity.
3. Verify Proper Lien Notices and Deadlines
Wyoming law requires hospitals to file lien notices with the clerk of district court in the county where treatment occurred. See W.S. 16-6-406. Confirm the lien’s enforceability by checking that:
- Notice went to the correct attorney or insured.
- The lien was filed within statutory timeframes.
4. Identify Insurer Subrogation Claims
Health insurers (including ERISA plans) may assert subrogation or reimbursement rights. Review policy documents or plan summaries for subrogation clauses. Send a written request for a statement of subrogation balance. Under federal ERISA rules, plans must provide a reasonable claim within 30 days.
5. Obtain Itemized Statements and Demand Releases
Request itemized bills from each lienholder. Compare billed charges against usual and customary rates. Negotiate reductions where possible. Once you agree on an amount, get a signed lien release or satisfaction document. This protects against future claims for the same services.
6. Negotiate and Pay Liens Before Disbursement
Allocate settlement funds to satisfy hospital and insurer liens first. Issue joint checks to the claimant and lienholder where practical. Maintain clear accounting of gross settlement, lien deductions, attorney fees, and net disbursement.
7. File a Satisfaction of Lien
After payment, file a satisfaction of lien in the district court clerk’s office. This officially removes the lien from title and protects your client from further liability. Retain copies of all payments and recorded satisfactions in your case file.
Helpful Hints
- Start lien research early—before negotiating settlement terms.
- Keep a centralized spreadsheet of all lien amounts, deadlines, and contact info.
- Check for multiple liens from hospitals, ambulance services, and rehabilitation facilities.
- Use joint checks to simplify lien payments and ensure proper credit.
- Require lienholders to provide lien releases on official letterhead.
- Verify that subrogation claims by insurers comply with ERISA timelines.
- Document every step and maintain signed releases in the client’s file.