(a) From and after March 26, 1935, there is hereby created a lien upon any sums recovered as damages for personal injury in any civil action in this State. 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. The priority of a lien held by the State Health Plan for Teachers and State Employees shall be superior to all nongovernmental liens and rights, whether such liens and rights are prior or subsequent to the lien.
(b) Notwithstanding subsection (a) of this section, no lien provided for under subsection (a) of this section is valid with respect to any claims whatsoever unless the physician, dentist, nurse, hospital, corporation, or other person entitled to the lien furnishes, without charge to the attorney as a condition precedent to the creation of the lien, upon request to the attorney representing the person in whose behalf the claim for personal injury is made, within 60 days of receipt of the request, an itemized statement, hospital record, or medical report for the use of the attorney in the negotiation, settlement, or trial of the claim arising by reason of the personal injury, and a written notice to the attorney of the lien claimed.
(c) No action shall lie against any clerk of court or any surety on any clerk's bond to recover any claims based upon any lien or liens created under subsection (a) of this section when recovery has been had by the person injured, and no claims against the recovery were filed with the clerk by any person or corporation, and the clerk has otherwise disbursed according to law the money recovered in the action for personal injuries. (1935, c. 121, s. 1; 1947, c. 1027; 1959, c. 800, s. 1; 1967, c. 1204, s. 1; 1969, c. 450, s. 1; 2001-377, s. 1; 2001-487, s. 59; 2018-52, s. 5(b); 2023-133, s. 13.)
§ 44-49.1: Recodified as § 58-3-135 by Session Laws 1995 (Regular Session, 1996), c. 674, s. 1.
Notes of Decisions
Nash Hosps., Inc. v. State Farm Mut. Auto. Ins. Co., 803 S.E.2d 256 (N.C. Ct. App. 2017).
· cites it 38× “*728 On 10 May 2013, counsel for Nash Hospitals sent Defendant a notice of medical lien pursuant to N.C. Gen. Stat. §§ 44-49 and 44-50. A month later, Rocky Mount sent a similar notice of medical lien to Defendant.”
USA Trouser v. Williams, 812 S.E.2d 373 (N.C. Ct. App. 2018).
· cites it 13× “State Farm, the insurer for the at-fault driver, received notice of Nash Hospitals' medical liens under N.C. Gen. Stat. §§ 44-49 and -50 from Nash Hospitals' counsel.”
Charlotte-Mecklenburg Hosp. Auth. v. First of Georgia Ins., 455 S.E.2d 655 (N.C. 1995).
· cites it 22× “N.C.G.S. § 44-49 provides in part: From and after March 26, 1935, there is hereby created a lien upon any sums recovered as damages for personal injury in any civil action in this State, the said lien in favor of any person, corporation, municipal corporation or county to whom…”
North Carolina Baptist Hospitals, Inc. v. Crowson, 573 S.E.2d 922 (N.C. Ct. App. 2003).
· cites it 42× “15-2(m) [3] requires a lawyer to "promptly pay or deliver to the client, or to third persons as directed by the client, any entrusted property belonging to the client and to which the client is currently entitled.”
North Carolina Baptist Hospitals, Inc. v. Mitchell, 374 S.E.2d 844 (N.C. 1988).
· cites it 13× “§ 44-50 nor its companion, N.C.G.S. § 44-49, contains any language which suggests that they provide the exclusive means of recovery of medical expenses where a personal injury claim is involved.”
Gordon v. Forsyth Cnty. Hosp. Auth., Inc., 409 F. Supp. 708 (M.D.N.C. 1976).
· cites it 9× “Fernandez in the amount of the medical services rendered, in accordance with N.C.G.S. § 44-49. The intervenor seeks to have the state lien declared invalid.”
Sykes v. Vixamar, 830 S.E.2d 669 (N.C. Ct. App. 2019).
· cites it 4× “" N.C. Gen. Stat. § 44-49 (a). Medical providers routinely use this statutory lien in personal injury cases to recover the amount owed for medical care from the judgment against the tortfeasor responsible for the injury.”
Seguro-Suarez by & Through Connette v. Key Risk Ins. Co., 819 S.E.2d 741 (N.C. Ct. App. 2018).
· cites it 2× “Nash Hospitals informed State Farm that the issuance of a joint check violated Sections 44-49 and 44-50 of our General Statutes, which required insurers to pay valid medical liens prior to any settlement disbursement to a claimant.”
Chappell v. Roth, 539 S.E.2d 666 (N.C. Ct. App. 2000).
· cites it 6× “In that case, the Supreme Court interpreted N.C.G.S. §§ 44-49 and 44-50 (1999) to provide that a lien in favor of a medical provider for unpaid medical expenses attaches to the money held by the tortfeasor's insurance company immediately upon the reaching of a settlement…”
Smith v. State Farm Mut. Auto. Ins., 580 S.E.2d 46 (N.C. Ct. App. 2003).
· cites it 54× “upon request to the attorney representing the person in whose behalf the claim for personal injury is made, an itemized statement, hospital record, or medical report for the use of the attorney in the negotiation, settlement, or trial of the claim arising by reason of the…”
Alaimo Fam. Chiropractic v. Allstate Ins., 574 S.E.2d 496 (N.C. Ct. App. 2002).
· cites it 2× “Finally, Allstate argues that the assignment is not valid and enforceable under N.C. Gen. Stat. §§ 44-49 and 44-50. In our view, those provisions, which deal with liens recovered as damages in personal injury actions, do not apply here.”
Triangle Park Chiropractic v. Battaglia, 532 S.E.2d 833 (N.C. Ct. App. 2000).
· cites it 2× “*203 In its order and judgment filed 3 February 1999, the trial court found that the McAllister lien was invalid, based upon N.C. Gen. Stat. §§ 44-49 and -50, and found that the Williams lien was valid but denied recovery, based upon the doctrine of election of remedies.”
— N.C. Gen. Stat. § 44-49(a) — 1 case
North Carolina Baptist Hospitals, Inc. v. Crowson, 573 S.E.2d 922 (N.C. Ct. App. 2003).
“15-2(m) [3] requires a lawyer to "promptly pay or deliver to the client, or to third persons as directed by the client, any entrusted property belonging to the client and to which the client is currently entitled.”
— N.C. Gen. Stat. § 44-49(b) — 1 case
Smith v. State Farm Mut. Auto. Ins., 580 S.E.2d 46 (N.C. Ct. App. 2003).
“upon request to the attorney representing the person in whose behalf the claim for personal injury is made, an itemized statement, hospital record, or medical report for the use of the attorney in the negotiation, settlement, or trial of the claim arising by reason of the…”
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