N.Y. Lien Law § 189: Liens of hospitals

§ 189. Liens of hospitals. 1. Every corporation incorporated under

general law or special act as a charitable institution maintaining a

hospital in the state supported in whole or in part by charity, the

state university of New York and every county, city, town or village

operating and maintaining a hospital shall to the extent hereinafter

provided have a lien upon any and all rights of action, suits, claims,

counterclaims or demands, of any nature whatsoever, of any person

receiving emergency treatment or admitted to any such hospital and

receiving treatment, care and maintenance therein, on account of any

personal injuries received within a period of one week prior to

receiving emergency treatment or admission to the hospital and as the

result of the negligence, wrongful act or any other tort, of any other

person or persons or corporation, which any such injured person or the

legal representative of such injured person, in case of death as the

result of such injuries, may or shall have, assert or maintain against

any such other person or corporation for damages on account of such

injuries, for the amount of the reasonable charges of such hospital, for

the treatment, care and maintenance of such injured person at cost rates

in such hospital. If such injured person received emergency treatment or

was admitted to the hospital on account of personal injuries received

within a week prior to such treatment or admission, the state university

or any such corporation or such municipal corporation maintaining a

hospital to which such person may be transferred for subsequent

treatment of the same injuries shall also have a lien as provided herein

although such transfer may occur during or after a week from the time

when such injuries were received. No such lien shall be effective,

however, unless a written notice containing the name and address of the

injured person, the date of the accident, the name and location of the

hospital and the name of the person or persons, firm or firms,

corporation or corporations alleged to be liable to the injured party

for the injuries received, shall prior to the payment of any moneys to

such injured person, his attorneys, or legal representatives as

compensation for such injuries be mailed, registered or certified and

postage prepaid, to the person or persons, firm or firms, corporation or

corporations, alleged to be liable to the injured party for the injuries

sustained prior to the payment to such injured person, his attorneys or

legal representatives, as compensation for such injuries. Such hospital

shall mail a copy of such notice to any insurance carrier which has

insured such person, firm or corporation against such liability. Such

mailing shall be deemed to be effective notwithstanding any inaccuracy

or omission therein if the information contained therein shall be

sufficient to enable the person or persons or corporation alleged to be

liable, by the exercise of reasonable diligence, to identify the injured

person, the occurrence upon which the claim for damages is based and the

name and address of the hospital asserting the lien. Any hospital

claiming a lien hereunder shall, in addition to the foregoing, file in

the office of the county clerk of the county in which the hospital is

located and mail to the persons and in the manner above provided, after

the discharge of any injured person, an additional notice of lien, duly

verified, which shall show the total hospital charges which have accrued

and no lien hereunder shall exceed this amount.

2. (a) Subject to the provisions of paragraph (b) hereof the lien of

any such hospital shall attach: (i) To any verdict, decision, decree,

judgment or final order made or rendered in any suit, action or

proceeding of any nature whatsoever, brought in any court of this state,

by such injured person, or the legal representative of such injured

person in case of death as the result of such injuries, against any

other person or persons or corporation for the recovery of damages or

compensation on account of such injuries or for the death of such person

resulting therefrom, as well as to the proceeds of any settlement of any

such verdict, decision, decree, judgment or final order made or rendered

in any such suit, action or proceeding.

(ii) To the proceeds of the settlement or compromise of any such suit,

action or proceeding, effected, before any verdict, decision, decree,

judgment or final order is made or rendered therein, by any such injured

person or his legal representative in case of death, with any other

person, persons, or corporation claimed or alleged to be liable for said

injuries or death, or with any other person or persons or corporations

on account thereof.

(iii) To the proceeds of the settlement or compromise of any such

claim, demand, or cause of action effected, before the commencement of

any suit, action or proceeding thereon, by any such injured person or

his legal representative in case of death, with any other person, or

persons or corporation claimed or alleged to be liable for said injuries

or death, or with any other person or persons or corporation on account

thereof.

(b) In the case of a recovery by judgment, settlement or compromise

under sections one hundred nineteen and one hundred twenty or one

hundred thirty, one hundred thirty-two and one hundred thirty-three of

the decedent estate law, such lien shall attach only if the reasonable

expenses of medical aid, nursing and attention incident to the injury

are an element of the damages recoverable in such action.

3. After the filing of the notice and mailing of the copy and

statement as herein provided, no release of any judgment, claim, or

demand by such injured person shall be valid or effective against such

lien. The person or persons or corporation making any payment to such

injured person or his legal representative for the injury sustained

shall give notice by registered mail to the hospital having such lien

and shall for a period of one year from the date of the receipt of such

notice by such hospital as aforesaid remain liable to such hospital for

the amount of its reasonable charges as aforesaid due at the time of

such payment, to the extent of the full and true consideration paid or

given to the injured person or his legal representative, less the amount

of any other liens or claims against such moneys superior to such

hospital lien, and the state university or any such corporation or other

institution or body maintaining such hospital may within such period

enforce its lien by a suit at law against such person or persons or

corporation making any such payment or gift.

4. Every county clerk shall, at the expense of the county, provide a

suitable, well-bound book, to be called the hospital lien docket, in

which, upon the filing of any lien claim under the provisions of this

section, he shall enter the name of the injured person, the date of the

accident or event causing the injury, the name of the hospital or other

institution making the claim. The said clerk shall make a proper index

of the same in the name of the injured person.

5. Any person or persons, firm or firms, corporation or corporations

legally liable for such lien or against whom a claim shall be asserted

for compensation for such injuries, shall be permitted to examine the

records of such hospital or of any such corporation, or other

institution or body maintaining such hospital in reference to such

treatment, care and maintenance of such injured person, except such

confidential communications or records as are privileged, unless such

confidential status shall have been waived.

6. The lien of any such hospital under the provisions of this section

shall not apply to any award or settlement made pursuant to the

workmen's compensation law of this state, nor to the proceeds of any

such award or settlement, in respect to the injury for which a lien is

filed, nor in case the amount paid to the injured person or his

representative in the event of death in settlement or compromise is

three hundred dollars or less.

6-a. At any time after the filing and mailing of the notices of lien

as provided in subdivision one of this section, any such injured person,

or his legal representative in case of death, such hospital, or any

person, firm or corporation alleged to be liable to the injured person

or to his legal representative, may apply for an order determining the

validity of such lien and fixing the amount thereof. Such application

shall be made to the surrogate of the county wherein letters have been

issued to the executor or administrator of the injured person, or to any

court which would have jurisdiction of an action based upon contract for

a sum equal to the amount set forth in the notice of lien filed in the

office of the county clerk as provided in subdivision one of this

section; provided, however, that except for an application made to such

surrogate, the application shall be made in the county in which the

notice of lien has been filed. Such application shall be made upon not

less than eight nor more than ten days' notice. Notice of the

application shall be served upon the following persons, other than the

applicant: (a) the person, firm or corporation alleged to be liable to

the injured person or to his legal representative, (b) the hospital, or

the attorney, if known, who on its behalf filed said notice of lien, (c)

the injured person or his legal representative, (d) any insurance

carrier, if known, which has insured such person, firm or corporation

alleged to be liable, against such liability. If an action for damages

on account of such injury or death is pending, service upon any party

thereto may be made upon his or its attorney of record. Upon the return

of such application and the determination of the validity of such lien,

if it appears that there is a bona fide dispute as to the charges, an

immediate hearing to determine the amount of the reasonable charges of

such hospital for the treatment, care, and maintenance of such injured

person at cost rates shall forthwith be ordered before the court and a

jury, or, if a jury be waived, before the court or a referee. Upon such

hearing the party making the application or the hospital may apply to

the court for an order requiring the other to pay the reasonable

expenses, not including attorneys' fees, incurred in making proof. For

the purposes of this section, proof that the charges made by the

hospital to the injured person for bed, board, routine nursing, ordinary

dressings and drugs, x-ray services, laboratory tests, and other medical

care or treatment do not exceed the charges made by the hospital for

such services and supplies in the care of workmen's compensation

patients shall be prima facie evidence of the reasonableness of such

charges at cost rates in the care of the injured person. A copy of the

order upon such application, with notice of entry, shall be served by

the party making the application on every person, firm or corporation

served with notice of the application, or upon his or its attorney

appearing upon the application, and the sum fixed in said order shall

constitute the extent of the lien provided in this section.

7. The provisions of this section to the contrary notwithstanding, the

lien herein created shall be subject and subordinate to the lien of the

amount recovered by verdict, report, decision, judgment or decree,

settlement or compromise, of any attorney or attorneys retained by any

such injured person or his legal representative in case of death, to

prosecute his claim for damages for personal injuries or for the death

of the injured person, having or acquiring by virtue of such retainer a

lien on the cause of action of any such injured person, or his legal

representative in case of death, or on the verdict, report, decision,

judgment, decree made in, or any settlement or compromise of, any such

action or claim for damages for personal injuries or for the death of

such injured person; and, notwithstanding the provisions of this

section, the lien created hereunder in no case shall be operative so as

to create a priority or a precedence therefor as against any other lien,

debt or claim in the administration of the estate of a decedent or the

distribution of damages recovered or obtained on account of a wrongful

act, neglect or default causing a decedent's death, and the amount of

the debt or claim covered by such lien in such a case shall have the

same position as to priority and be payable in the same manner and to

the same extent as otherwise provided by law.

8. Execution upon any judgment obtained in an action based upon

injuries for which a lien has been filed as herein provided shall be

stayed until the lien has been satisfied or discharged in accordance

with the provisions of this section.

9. Upon the order of any court of record having jurisdiction in the

premises, any person, persons or corporation against whom a lien shall

have been filed and served may deposit the amount of any settlement or

judgment less the amount of any other liens or claims against such

moneys superior to such hospital lien, with the county treasurer in the

county in which the lien is filed, except, in a county within the city

of New York where such deposit shall be made with the commissioner of

finance of such city, and the person, persons or corporation so

depositing shall be discharged from all liability in connection with

such lien which lien shall attach to the fund so deposited.

10. Any such lien may be enforced by action against the person,

persons or corporations claimed to be liable or against the fund

deposited as hereinbefore provided in any court of record.

11. The filing of a notice of lien of a hospital under the provision

of this section shall be valid for a period of ten years only. The

validity of the filing may be extended for successive additional period

of ten years each from the date of refiling, by filing in the proper

county clerk's office, a copy of the original notice of lien within

ninety days next preceding the expiration of each period, with a

statement attached, signed by the lienor, showing the amount remaining

to be paid thereon. Such copy, with statement attached, shall be filed

and entered in the same manner as a notice of hospital lien filed and

entered for the first time, and the county clerk shall be entitled to a

like fee as upon the original filing. Every renewal of a hospital lien

must be stamped or marked "renewal," and contain therein reference to

the date of filing of the lien which it is desired to continue for a

further period, and the date of filing of the latest previous renewal

thereof. The county clerk is authorized to destroy any and all notices

of liens of hospitals filed in his office pursuant to the provisions of

this section, after the expiration of twelve years from the date of

filing, and any and all indexes to such notices of lien, after the

expiration of twenty-five years from the date of the last entry of a

lien therein.