Attorney’s “charging lien” trumps hospital’s lien for services
The Supreme Court of Delaware has reversed a trial court decision and held that an attorney’s “charging lien” to recover fees earned in obtaining a recovery for an accident victim has priority over a lien of the hospital that provided treatment for the injury. A woman retained a law firm to represent her in recovering for her injuries under a contingent fee agreement that provided the law firm would receive 40% of any recovery plus costs. The firm obtained a settlement of $19,641 from the defendant’s insurance company and deducted $8,052 in fees and costs before depositing the balance in its escrow account. Nanticoke Hospital claimed $160,958 for its services and claimed that it was...
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