Wilson v. Sisters of St. Francis Health Services Inc.
2011 Ind. App. LEXIS 1367
| Ind. Ct. App. | 2011Background
- In Nov 2007, T.W. was treated at St. Francis Hospital in Beech Grove, with a bill of $26,524.27 for services.
- T.W. had Kaiser Permanente health insurance; Kaiser denied payment because treatment occurred outside California.
- St. Francis hired a collection agency to obtain payment from T.W.
- T.W. retained Wilson on a contingency basis to pursue Kaiser’s failure to pay the bill.
- Kaiser paid $26,524.27 to St. Francis in June 2009 after an administrative appeal.
- Wilson asserted an attorney’s lien for one-third of amounts collected; St. Francis refused to pay; the trial court granted summary judgment for St. Francis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Equitable attorney lien on insurance payment | Wilson asserts an equitable charging lien on the Kaiser payment. | St. Francis contends no charging or statutory lien exists; funds were paid to a third party. | No equitable or statutory lien attaches; trial court upheld. |
| Unjust enrichment entitlement | Wilson seeks recovery based on unjust enrichment from St. Francis. | St. Francis argues patient would still owe the amount; no direct benefit to St. Francis from Wilson’s work. | No unjust enrichment; hospital’s right to full payment stands. |
| Hospital lien vs attorney lien priority | St. Francis’ hospital lien should subordinate to Wilson’s attorney lien. | Hospital lien statute requires subordination to an attorney lien; Wilson lacks a valid lien. | No valid hospital or attorney lien; statute inapplicable. |
Key Cases Cited
- State ex rel. Shannon v. Hendricks County Circuit Court, 243 Ind. 134 (1962) (equitable liens may supplement statutory liens)
- Bennett v. NSR, Inc., 553 N.E.2d 881 (Ind. Ct. App. 1990) (charging liens do not require possession)
- Mitchell v. Huntsville Hospital, 598 So. 2d 1358 (Ala. 1992) (hospital payment not subject to attorney fees without direct lien)
- Ciarían Health Partners v. Evans, 848 N.E.2d 763 (Ind. Ct. App. 2006) (hospital lien reductions when liens exhaust settlement funds)
- Cmby. Hosp. v. Carlisle, 648 N.E.2d 363 (Ind. Ct. App. 1995) (hospital lien purpose to ensure hospital compensation; liens arise from services provided)