History
  • No items yet
midpage
Wendling v. Southern Illinois Hospital Services
242 Ill. 2d 261
| Ill. | 2011
Read the full case

Background

  • Plaintiffs injured in auto accidents had liens filed by hospitals under the Health Care Services Lien Act against their tort settlements or judgments.
  • Total liens under the Act are capped at 40% of the recovery; attorneys’ liens under the Attorneys Lien Act are limited to 30% when liens reach the 40% cap.
  • Circuit court held that plaintiffs’ attorneys could recover 30% of the settlement plus one-third of the Hospitals’ liens under the common fund doctrine.
  • Appellate court affirmed, holding Hospitals benefited from the plaintiffs’ attorney work and thus should contribute to fees.
  • Supreme Court reverses, holding the common fund doctrine does not apply to health care liens under the Act, citing Maynard v. Parker.
  • Key reasoning includes that Hospitals’ claims exist independently of the outcome of the personal injury action and Hospitals are not creditors sharing a fund created by the lawsuit.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does the common fund doctrine apply to health care liens under the Health Care Services Lien Act? Wendling/Howell: doctrine should apply to apportion attorney fees. Hospitals: doctrine does not apply; lien recovery is statutory and independent of fund creation. No; common fund doctrine does not apply.

Key Cases Cited

  • Maynard v. Parker, 75 Ill.2d 73 (1979) (hospital lien not subject to common fund contributions)
  • Bishop v. Burgard, 198 Ill.2d 495 (2002) (ERISA subrogation and fund creation; common fund applies where fund created by attorney actions)
  • Scholtens v. Schneider, 173 Ill.2d 375 (1996) (common fund doctrine origin and scope)
  • Boeing Co. v. Van Gemert, 444 U.S. 472 (1980) (support for common fund rationale)
  • Morris B. Chapman & Associates, Ltd. v. Kitzman, 193 Ill.2d 560 (2000) (principles limiting attorney-fee apportionment)
  • Baier v. State Farm Insurance Co., 66 Ill.2d 119 (1977) (equitable basis for sharing litigation costs)
Read the full case

Case Details

Case Name: Wendling v. Southern Illinois Hospital Services
Court Name: Illinois Supreme Court
Date Published: Mar 24, 2011
Citation: 242 Ill. 2d 261
Docket Number: 110199, 110200 cons.
Court Abbreviation: Ill.