Statutory Lien
Wednesday, February 16th, 2011
Since 1935, in North Carolina, there has been a statutory lien upon sums of money recovered as damages for personal injury claims. “This lien is in favor of any person, corporation, State entity, municipal corporation or county to whom the person so recovering, or the person in whose behalf the recovery has been made, may be indebted for any drugs, medical supplies, ambulance services, services rendered by any physician, dentist, nurse, or hospital, or hospital attention or services rendered in connection with the injury in compensation for which the damages have been recovered. Where damages are recovered for and in behalf of minors or persons non compos mentis, the liens shall attach to the sum recovered as fully as if the person were sui juris.” . N.C.G.S § 44-49.
N.C.G.S § 44-50 provides that “lien provided for shall in no case, exclusive of attorneys’ fees, exceed fifty percent (50%) of the amount of damages recovered.” North Carolina Baptist Hospitals, Inc. v. Crowson, 155 N.C.App. 746, 573 S.E.2d 922 (N.C.App. 2003) provided that the medical providers did not have to be paid in a pro rata manner. That case held that: “The dispositive issue on appeal is whether sections 44-49 and 44-50 of the North Carolina General Statutes prohibit an attorney from disbursing funds recovered from the settlement of a personal injury lawsuit in a non-proportional manner where there are multiple medical service providers holding equally valid liens upon such settlement funds and insufficient funds to compensate all lien holders. Because we conclude that sections 44-49 and 44-50 do not require a pro rata disbursement of funds, we affirm the order of the trial court granting summary judgment in favor of defendant.”
However, in 2003, the North Carolina Legislature passed a new section which requires pro rata distribution. N.C.G.S. § 44-50.1, entitled “Accounting of disbursements; attorney’s fees to enforce lien rights” provides that “Notwithstanding any confidentiality agreement entered into between the injured person and the payor of proceeds as settlement of compensation for injuries, upon the lienholder’s written request and the lienholder’s written agreement to be bound by any confidentiality agreements regarding the contents of the accounting, any person distributing funds to a lienholder under this Article in an amount less than the amount claimed by that lienholder shall provide to that lienholder a certification with sufficient information to demonstrate that the distribution was pro rata and consistent with this Article. If the person distributing settlement or judgment proceeds is an attorney, the accounting required by this section is not a breach of the attorney-client privilege.” N.C.G.S. § 44-50.1. “The certification under subsection (a) of this section shall include a statement of all of the following: (1) The total amount of the settlement. (2) The total distribution to lienholders, the amount of each lien claimed, and the percentage of each lien paid. (3) The total attorney’s fees.
These statutes are part of the laws regulating the pursuit and settlement of personal injury claims in North Carolina. If you or someone you know has been injured in an automobile accident through no fault of their own, call Collins Law Firm for a free consultation at: 910-793-9000.

The recent snow storm in the east coast caused school closings and court closings in Southeastern North Carolina including New Hanover, Brunswick, Pender, Columbus, Bladen, Sampson, Duplin, and Onslow Counties. The criminal and traffic charges which were set for the days court was closed are continued to the next court day for the charging officer. Most people with court dates which were set for the days court was closed will be notified by the clerk’s office about their next court date. Defendant’s with lawyers should consult with their attorney about their next court date.
Anyone can be charged with a crime, and many people are wrongfully accused. Just because someone has been charged does not mean they are guilty. Criminal charges, even wrongful criminal charges, result in criminal records which can affect people for their entire life. Therefore, it is very important that people who are charged take the matter seriously and take appropriate steps to avoid or mitigate the negative consequences of criminal charges. In some cases, it is possible to have criminal records expunged which means the official public records are removed and destroyed by a process called expungement or expunction.
The holidays are upon us and most people are attending holiday parties and other holiday events. Many of these events offer alcohol and law enforcement is aware of that fact. Enforcement of traffic laws are often increased during holidays and this season is no exception. Last week alone, for example, there were over 70 people charged with driving while impaired (DWI/DUI) in New Hanover County, NC.
North Carolina’s New Motor Vehicles Warranties Act (§§ 20-351 – 20-353), also known as North Carolina’s Lemon Law (and federal Lemon Laws such as the Magnuson-Moss Warranty Act) provide for compensation for purchasers of defective vehicles. To qualify for relief under North Carolina’s Lemon Law, you must have purchased a new vehicle that has had multiple repair attempts under the manufacturer’s factory warranty, and it must be “seriously defective” and cannot be repaired in a “reasonable number of attempts.”
Traffic tickets can be a lot more expensive than the fine and court costs stated on the ticket. For most traffic tickets, if you just pay off the ticket, you will be convicted of the charge, and you will be assessed points both on your driver’s license and on your insurance policy. Insurance points can be very expensive. They cause your insurance premiums to increase for three years, and for most policies, that will add up to thousands of dollars. Details about insurance points and the percentage of premium increases can be found
Employees who are laid off, or terminated through no fault of their own may qualify for unemployment compensation. Unemployment benefits are administered by the Employment Security Commission (ESC). To receive unemployment benefits, a former employee must file a claim with the ESC, and meet eligibility requirements. To be eligible for benefits, you must be unemployed through no fault of your own, be able and available for work and be actively seeking work. You may be disqualified from receiving benefits if you were discharged from work due to work “misconduct,” such as use of alcohol or drugs, fighting, unauthorized absences without good cause or theft of company property. You may also be disqualified if you are terminated for a reason that does not constitute misconduct, but is considered a ”substantial fault.” Substantial fault includes acts, over which you have reasonable control, that violate reasonable job requirements.
Historically, in relationships between landlords and tenants, landlords have all the power. However, the North Carolina Residential Rental Agreements Act provides specific rights for tenants and duties for landlords. One duty of the landlord is to keep the rental premises in a fit and habitable condition. If the landlord fails to do so, the tenant can sue for mitigation, or to enforce the rights provided by the statutes. However, before doing so, the tenant must put the landlord on notice in writing of the breach for most types of necessary repairs.