Filing Lien After C&R (California)

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Filing Lien After C&R (California)

Postby on Thu Nov 05, 2009 11:11 am

My client (Doctor is Secondary) as requested us not to file a lien until the case has C&R.

There reason:

If we received a denial and the defense does not attempt to settle with us after the case settled that they are in violation of the L.C. What L.C I asked and I could not find one.

Has anyone hear of this tatic?

In addition, the doctor now believe he should be paid in full.

Is there some en banc case or something I am missing in the L.C?
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Re: Filing Lien After C&R (California)

Postby jonbrissman on Thu Nov 05, 2009 1:44 pm

Not a good strategy. Although 8 CCR Sect. 10888 says, in part, "the parties shall make a good-faith attempt to contact the lien claimants and resolve their liens," most defendants argue that the section applies only to liens of record. There is no Labor Code section or regulation that requires defendant to contact potential lien holders. There are some unpublished Decisions After Reconsideration on the lien statute-of-limitations issue (L.C. Section 4903.5) that say that defendant must address the bills of medical providers of which they have knowledge, even when the provider has not filed a lien, but the cases are not precedential.

In your situation, the provider is risking a lot for no particular advantage. The case-in-chief may settle and the provider may not discover the settlement until long afterwards, and then it may have a fight over LC 4903.5. Given the WCAB's current interpretation, the provider will win a 4903.5 battle if defendant had knowledge of the services under LC 4904, but that is a needless battle that the provider's strategy provoked. Also, defendant may perfect a laches defense in the interim.

Advise your client: File a lien as soon as it receives a denial, and let the existing regulations work to its benefit.

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Re: Filing Lien After C&R (California)

Postby on Thu Nov 05, 2009 2:31 pm

Thanks Jon,

I agree 100% with you. Someone feeding the doctor a bunch of B.S. A little knownledge can be dangerous!!

Thanks again.
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