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I'm a paralegal with 22 years experience and very proficient in personal injury (both plaintiff and defense). My job is to process settled cases, get medical bill reductions, negotiate lien reductions, etc. I've got some cases wherein 1) the hospital's notice of lien, is not perfected by a lien filed with the county clerk's office and I believe thus, invalid; and 2) I believe a lien filed with the county clerk's office that has the "wrong date of admit" even by 1 day, is enough to make the lien invalid and thus unenforcable. The attorney that owns the firm tells me he doesn't know the law in this area, but instructs me to pay the hospitals, even though I believe legally, and ethically, I should be paying those funds to the clients. Please advise me with undisputable, fact-certain law, of what the attorney's legal obligation to the client is in this matter.

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Arlington, Texas

Already Tried:
I've read the statutes, contacted other prominant and well versed PI attorneys and they have all agreed with me so far.

Customer (name blocked for privacy)

Status: Closed Value: $15

The issue is far more complex then if there is an argument that a bill can be disputed or if a lien is not perfected properly.

However you have a significant cause of concern if the lawyer says that because of their ignorance of the law, they do not want to challenge something, and therefore their clients are not benefiting to the degree they potentially could.

According to the Ethical rules examined by the NCBEX, (MPRE Multistate Professional Responsibility Exam, based on the ABA Model Rules of Conduct), the lawyer is responsible and has full discretion in the Legal Strategy, outside of direct instructions from the client.

The lawyer could argue that their strategy is to minimize the adversarial process, give a nickel at the front to get a dime at the back.

According to the ABA rules, Rule 1.3 the term is REASONABLE DILIGENCE. It is not exhaustive, or complete but reasonable.

While I appreciate the concern, the test of an ethical violation would be a relationship between the fees to be paid, any potential negligence in not asserting a claim, the strategy of the larger picture, and the costs/time involved.

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Regards

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Reply to Flagbridge-ADR's Post: Thank you very much for taking the time to review my question and provide me with your input. As far as the ethical issue, I'm woefully aware of the fact that we do not provide the legal representation that we hold ourselves out as being qualified to do. Too often, statute runs on our case before filing suit, we settle cases without client's consent, we file suit even when instructed at times "not" to by the client, and the list of egregious acts go on and on daily, to my dismay.

However, I need an answer as to the validity of hospital liens and our duty to pay or not pay them. I know they are not to be trifled with, but have worked in firms where I was taught that if a lien filed did not meet the criteria as stated in the Texas statute, I did not have to pay it and we moved on. Same thing if a hospital did "not" file a lien timely "prior" to my disbursement of settlement funds. I have settled and disbursed on severe injury or death cases quickly before the hospital had time to file their lien and thus, I was legally able to disburse funds to the clients what would normally have had to be paid to a hospital once they filed their lien with the county. That is texas law.

I will be happy to pay you the $15 for your answer rendered if you would provide me with the necessary information to either mail you a check or pay you or your firm on line with a credit card. However, I do believe I need to leave my question Open in hopes of getting an answer more specific to my question as it relates to Texas law.

Thank you. Fee free to contact me at (817) 903-7550 with any questions or instructions on how to pay you.

Sincerely,

Jan

Hello,

Firstly let me just highlight how the system here works. It is generally a one question one answer system, so each answer you feel is adequate will be followed up by you clicking accept. As we are a peer review system we do not allow for telephone conversations.

This does not close the question, or the thread. You may ask follow up or trailer questions to it.

I trust the first answer about the ethics and the ABA rule reference is adequate.

With respect to the second question, about the specific issue of paying an improperly perfected lien, without legal requirement.

There is no absolute right or wrong here which makes pointing to a particular statute improper.

On the face of it, it is incorrect, as a breach of the fiduciary duty the attorney has over managing the trust funds for the client.

The above behavior is a breach of ABA rule 1.15 care of clients property.

These are professional discipline grounds, and not a specific violation of a code or statute. There is no law saying a hospital bill, or contractor bill can not be paid without a proper and fully perfected lien.

On the face of it the lawyer should only release funds of a clients that he/she is legally obligated to do. If lien might be technically improper, but there is a valid claim the lawyer may decide to forgo contesting. If there is no lien, or invoice is not authorized by the client, then the lawyer is forbidden under 1.15 to release the funds, unless subject to a court order.

I saw one firm, that paid a forensic accounting firm very quickly regardless of proper liens, invoices etc to ensure there was a clear and clean working relationship. If this PI lawyer wants the hospital to be on his side to get proper and timely discovery, then he has to play fair and ensure his clients pay.

If you feel there are long and calculated ethical breaches, such as the above, then you should file a complaint with the Texas Bar association.

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Regards

If this helps in any way please CLICK ACCEPT. The question will not close, and you may follow up if needed.

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