Hospitals filed liens against proceeds of personal injury suits arising from plaintiffs’ injuries in auto accidents. The Illinois Supreme Court ruled that the common fund doctrine entitling attorneys to a share of the recovery of lien monies is inapplicable to a hospital's statutory lien under the Health Care Services Lien Act. The Act does not allow recovery of attorney fees out of hospital liens. The court reasoned that even though hospitals benefitted from the attorneys' efforts in pursuing suits, the hospitals had no opportunity to choose their own counsel or to negotiate a settlement on their own terms in the person injury litigation. Even more, plaintiffs and hospitals do not share the same interests in the fund as they are not similarly situated with respect to the fund. Attorneys should make sure they consider this in calculating their fees and project final proceeds to clients.
Wendling v. Southern Illinois Hospital Services, Nos. 110199, 110200 Cons. (Ill. Sup. Ct. March 24, 2011).
