In a personal injury lawsuit, the Plaintiff (injured person) either negotiates with the Defendant (the negligent person – or person that caused the accident) and reaches a settlement that awards the plaintiff a sum of money representing compensation for the damages they suffered in the accident or the case proceeds to trial and a jury awards the plaintiff a monetary award for her damages. In either the scenario, the plaintiff then has a right to receive the amount of money that has been awarded to her for the damages (injuries) caused by the defendant. In a perfect world, this would be the last step in the legal process. Once the amount has been agreed on or awarded by the jury the plaintiff would receive a check for the compensation amount and the legal process would conclude. Unfortunately, sometimes that is not the end of the legal process because the defendant does not immediately pay the plaintiff the money owed to her. In this case, there are additional legal options available to the plaintiff to attempt to secure payment.
If the Defendant has refused to pay the money owed pursuant to a settlement agreement or a jury award in a personal injury case, the plaintiff may return to court and attempt to secure a settlement lien. A settlement lien is essentially a lien on any property that the defendant owns. As with all liens, in most cases the lien must be satisfied before the defendant can sell or otherwise dispose of the property.
In order to obtain a personal injury settlement lien, the plaintiff’s attorney must return to court in most cases and ask the judge to order the lien. The exact process by which a plaintiff can secure a personal injury settlement lien will vary by state so you should check with your attorney for the specific requirements in your state. Generally, the court must confirm that the defendant owes the plaintiff money. If the award was determined by a jury, then a judicial determination of the amount owed has already been made. If the compensation was decided by agreement between the parties without a trial, then the plaintiff may need to have the agreement reduced to an order by the court before she can ask for a lien to be placed on the defendant’s property.
Once the court has determined the amount owed to the plaintiff, the court can order a settlement lien placed on the defendant’s property. The lien is then recorded in the county where the property is located in most cases. If the defendant wishes to sell the property, apply for a mortgage or transfer the property, they will usually need to satisfy the lien before doing so. While this may not get the plaintiff her money immediately, it is one avenue that the plaintiff can pursue when the defendant does not immediately compensate the plaintiff pursuant to the agreement or award.
If you have any additional questions, or would like a free and detailed evaluation about a California personal injury case, please contact personal injury attorney Emery Ledger at 1-800-300-0001 or online at www.ledgerlaw.com.
