Burrell v. Southern Truss

667 N.E.2d 172, 281 Ill. App. 3d 553
CourtAppellate Court of Illinois
DecidedJune 28, 1996
DocketNo. 5—95—0556
StatusPublished
Cited by2 cases

This text of 667 N.E.2d 172 (Burrell v. Southern Truss) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burrell v. Southern Truss, 667 N.E.2d 172, 281 Ill. App. 3d 553 (Ill. Ct. App. 1996).

Opinion

JUSTICE MAAG

delivered the opinion of the court:

The plaintiff, Jennifer Panky Burrell, filed a complaint on April 7, 1993, in the circuit court of Saline County, seeking to recover money damages from the defendants, Joel Kingston and Southern Truss, based on the negligent or wrongful acts of Kingston in the course of his employment with Southern Truss. The parties subsequently entered into a good-faith settlement of all disputed facts, which allowed for a recovery of $8,500. The plaintiff filed a petition to adjudicate liens on May 18, 1995. It is undisputed that the plaintiff asserted that the total amount of all "medical liens” could not exceed one-third of the settlement. The lien claimants filed briefs and arguments claiming that the hospital was entitled to one-third of the settlement pursuant to the Hospital Lien Act (770 ILCS 35/0.01 et seq. (West 1992)) and that the physician was entitled to another one-third of the settlement pursuant to the Physicians Lien Act (770 ILCS 80/0.01 et seq. (West 1992)). The lien claimants argued that these two types of liens do not share in the same one-third and that there is no category entitled "medical liens.” On July 6, 1995, an order of dismissal was entered. The court determined that the plaintiff had incurred a total of $4,152.60 in medical expenses. The court also found that notice had been given to all interested medical creditors by certified mail and that only Wood River Township Hospital, Medical Radiological Services, and Dr. Anthony Marrese had entered an appearance. The court determined that the total amount of bills pertaining to the aforementioned medical creditors was $2,915.65 and that said amount was in excess of one-third of the total settlement. One-third of the settlement would have been a total amount of $2,833.33. The circuit court then apportioned one-third of the $2,833.33 between the three medical lienholders that had entered their appearance and awarded them 97.17% of their total lien. Wood River Township Hospital received $887.79, rather than $913.65, for a total reduction of $25.86. Medical Radiological Services received $459.61, rather than $473, for a total reduction of $13.39. Dr. Anthony Marrese received $1,485.72, rather than $1,529 for a total reduction of $43.28. The circuit court’s order concluded by stating: "Nothing in this order, however, discharges the obligation of the plaintiff for payment of said bills. Only the liens are discharged.”

Wood River Township Hospital and Medical Radiological Services (appellants) appeal from this order.

The appellants claim that the trial court erred in combining the physician’s lien and the hospital’s lien under the label "medical liens.” The appellants state that "[tjhey are separate liens with separate one-third máximums.” The appellants argue that since the hospital’s lien was less than one-third of the amount of the settlement and the physician’s lien was less than one-third, the liens should not have been reduced. The appellants cite Wheaton v. Department of Public Aid, 92 Ill. App. 3d 1084, 416 N.E.2d 780 (1981), and In re Estate of McMillan, 115 Ill. App. 3d 1022, 451 N.E.2d 958 (1983), as support for their argument.

In Wheaton, the plaintiff argued that the circuit court had authority to reduce the hospital’s and physicians’ liens. After reviewing the language of the Hospital Lien Act and the Physicians Lien Act, the Wheaton court determined that "the 'adjudication’ of such liens in no way authorizes a trial court to reduce the amount of the liens so long as the total amount of the liens filed under each act is not in excess of one-third of the settlement.” (Emphasis added). Wheaton, 92 Ill. App. 3d at 1086, 416 N.E.2d at 782. In McMillan, the hospital appealed from an order awarding it less than one-third of the settlement proceeds collected by the plaintiff. Relying on Wheaton, O’Donnell v. Sears, Roebuck & Co., 71 Ill. App. 3d 1, 388 N.E.2d 1073 (1979) (disapproved on other grounds in In re Estate of Cooper, 125 Ill. 2d 363, 367, 532 N.E.2d 236, 237-38 (1988)), and In re Estate of Enloe, 109 Ill. App. 3d 1089, 441 N.E.2d 868 (1982), the McMillan court determined that pursuant to the Hospital Lien Act, once a lien is properly established, the court may only reduce the lien when it exceeds one-third of the settlement. In O’Donnell, the court stated that it is "only charged with the responsibility of adjudicating and enforcing hospital liens pursuant to a mechanical 'one-third of proceeds’ formula,” with no trial court discretion. O’Donnell, 71 Ill. App. 3d at 13, 388 N.E.2d at 1083.

Subsequent to the aforementioned cases, the court in Illini Hospital v. Bates, 135 Ill. App. 3d 732, 734, 482 N.E.2d 235, 237 (1985), relying on the Wheaton, McMillan, and O’Donnell decisions, also determined that the court has no discretion to reduce hospital liens when that amount is less than one-third of plaintiff’s settlement proceeds. The Illini court noted that if the trial court is to have the statutory authority to apply equitable principles in order to determine the amounts of liens, language to this effect should have been employed in the statute. In Illini, the defendant argued that interpreting the statute in such a mandatory manner was contrary to the legislative intention and that if all of the various lien acts were enforced, the liens could exceed the amount of the recovery. We agree.

A lien can only be created by statute or by express language in an agreement. La Salle National Trust, N.A. v. Village of Westmont, 264 Ill. App. 3d 43, 75, 636 N.E.2d 1157, 1177 (1994); Kunde v. Biddle, 41 Ill. App. 3d 223, 225, 353 N.E.2d 410 (1976). Illinois currently has seven classes of health care providers that are given lien rights. Separate lien acts govern hospitals (770 ILCS 35/0.01 et seq. (West 1992) (Hospital Lien Act)), physicians (770 ILCS 80/0.01 et seq. (West 1992) (Physicians Lien Act)), dentists (770 ILCS 20/0.01 et seq. (West 1992) (Dentists Lien Act)), physical therapists (770 ILCS 75/1 (West 1992) (Physical Therapist Lien Act)), home health care agencies (770 ILCS 25/1 et seq. (West 1992) (Home Health Agency Lien Act)), clinical psychologists (770 ILCS 10/0.01 et seq. (West 1992) (Clinical Psychologists Lien Act)), and emergency medical services personnel (770 ILCS 22/1 et seq. (West 1992) (Emergency Medical Services Personnel Lien Act)).

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Related

Burrell v. Southern Truss
679 N.E.2d 1230 (Illinois Supreme Court, 1997)

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Bluebook (online)
667 N.E.2d 172, 281 Ill. App. 3d 553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burrell-v-southern-truss-illappct-1996.