§ 35-11-372 — Release or Satisfaction

(a) During the period of time allowed by Section 35-11-371 for perfecting the lien, including that period of time during which the hospital is awaiting payment or denial by the patient’s health care payor, and also after the lien provided for by this division has been perfected by any lienholder entitled thereto, no release or satisfaction of any action, claim, counterclaim, demand, judgment, settlement, or settlement agreement, or of any of them, shall be valid or effectual as against the lien unless the lienholder shall join therein or execute a release of the lien.
(b) Any acceptance of a release or satisfaction of any action, claim, counterclaim, demand, or judgment and any settlement of any of the foregoing in the absence of a release or satisfaction of the lien referred to in this division shall prima facie constitute an impairment of the lien, and the lienholder shall be entitled to a civil action for damages on account of the impairment, and in the action may recover from the one accepting the release or satisfaction or making the settlement the reasonable charges for the hospital care, treatment, and maintenance. Satisfaction of any judgment rendered in favor of the lienholder in any action shall operate as a satisfaction of the lien. Any action by the lienholder shall be brought in any court having jurisdiction thereof and may be brought and maintained in the county wherein the lienholder has his or her, its, or their residence or place of business. If the lienholder shall prevail in the action, the lienholder shall be entitled to recover from the defendant, costs and reasonable attorney’s fees. The action shall be commenced against the person liable for the damages within one year after the date the liability shall be finally determined by a settlement release covenant not to sue or by the judgment of a court of competent jurisdiction.

Legislative History

(Acts 1955, No. 488, p. 1098, §4; Act 2019-273, §1.)