A lien as provided under G.S. 44-49 shall also attach upon all funds paid to any person in compensation for or settlement of the injuries, whether in litigation or otherwise. If an attorney represents the injured person, the lien is perfected as provided under G.S. 44-49. Before their disbursement, any person that receives those funds shall retain out of any recovery or any compensation so received a sufficient amount to pay the just and bona fide claims for any drugs, medical supplies, ambulance services, services rendered by any physician, dentist, nurse, or hospital, or hospital attention or services, after having received notice of those claims. Evidence as to the amount of the charges shall be competent in the trial of the action. Subject to G.S. 135-48.37, 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. Nothing in this section or in G.S. 44-49 shall be construed so as to interfere with any amount due for attorney's services. The lien provided for shall in no case, exclusive of attorneys' fees, exceed fifty percent (50%) of the amount of damages recovered. Except as provided in G.S. 44-51, a client's instructions for the disbursement of settlement or judgment proceeds are not binding on the disbursing attorney to the extent that the instructions conflict with the requirements of this Article. (1935, c. 121, s. 2; 1959, c. 800, s. 2; 1969, c. 450, s. 2; 1995, c. 538, s. 6(b); 1995 (Reg. Sess., 1996), c. 674, s. 3; 2001-377, s. 2; 2018-52, s. 5(c).)
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 41× “Defendant argues that its issuance to a pro se personal injury claimant of a check for a total settlement-without retaining funds owed to medical lienholders-did not violate N.C. Gen. Stat. §§ 44-50 and 44-50.1 because the check was made payable jointly to the claimant and the…”
North Carolina Baptist Hospitals, Inc. v. Crowson, 573 S.E.2d 922 (N.C. Ct. App. 2003).
· cites it 56× “N.C. Gen.Stat. § 44-50 (1999). As this was the statute in effect at the time that the disputed events occurred, this is the controlling version of the statute in this case.”
Triangle Park Chiropractic v. Battaglia, 532 S.E.2d 833 (N.C. Ct. App. 2000).
· cites it 9× “On 3 January 1997, plaintiff filed this action against defendant seeking to enforce two medical provider liens pursuant to N.C. Gen. Stat. § 44-50 . Plaintiff alleged that defendant failed to honor its liens when defendant disbursed the two settlement proceeds.”
USA Trouser v. Williams, 812 S.E.2d 373 (N.C. Ct. App. 2018).
· cites it 2× “Nash Hospitals eventually sued State Farm, asserting that N.C. Gen. Stat. § 44-50 "specifically requires the liability insurer to retain out of any recovery, before any disbursements, a sufficient sum to pay lien holders," and State Farm's failure to comply with §§ 44-49 and -50…”
North Carolina Baptist Hospitals, Inc. v. Mitchell, 362 S.E.2d 841 (N.C. Ct. App. 1987).
· cites it 4× “Having determined the assignment in the present case to be invalid, we turn to whether the trial court correctly concluded that defendant complied with the provisions of G.S. 44-50. G.S. 44-50 attaches a lien upon any funds paid to any person in compensation for or settlement of…”
Smith v. State Farm Mut. Auto. Ins., 580 S.E.2d 46 (N.C. Ct. App. 2003).
· cites it 30× “N.C. Gen. Stat. § 44-50 (2001). In the instant case, although plaintiff forwarded the relevant information to Wynne’s attorney pursuant to section 44-49(b), because Wynne thereafter settled his claim pro se, the attorney did not communicate with defendant or participate in the…”
Travelers Ins. Co. v. Keith, 196 S.E.2d 731 (N.C. 1973).
· cites it 3× “Nor will the facts support Norfolk Southern’s assertion that it “had no choice but to pay the money [for Keith’s bills] to the Clerk of the Court,” and that G.S. 44-50 “served as [a] conduit for their payment.”
Ellington Ex Rel. Ellington v. Bradford, 86 S.E.2d 925 (N.C. 1955).
“The view that the rule is not changed is supported by the succeeding section, G.S. 44-50, which provides a like lien shall attach to funds paid in settlement for injuries whether in litigation or otherwise in cases where evidence as to the amount of such charges would be…”
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