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What a lien actually is
The law lists what can be filed as a lien against a workers’ compensation award — medical treatment expenses, medical-legal costs, living expenses advanced, attorney fees, and reimbursement to agencies and plans that paid something the carrier should have paid.
The lien claimant is a separate party to your case. They file, they can appear, and their claim is resolved with the insurance carrier — by agreement or by a judge.
The number on the letter is very often not the number that gets paid. Liens are negotiated down routinely, and a substantial share do not survive the procedural rules at all.
Why many liens fail
There is a filing fee — § 4903.05 — and it has to be paid.
There are deadlines. A lien filed outside the statutory period is barred.
There are declaration requirements, and a lien filed without a proper declaration is subject to dismissal.
And a provider charged with fraud loses the lien’s momentum entirely. On the filing of criminal charges for a crime described in § 139.21, any lien filed by or on behalf of that physician, practitioner or provider — and any accrual of interest on it — is automatically stayed, and the stay runs “from the time of the filing of the charges until the disposition of the criminal proceedings.” § 139.21 is the separate provider-suspension machinery.
None of this is your problem to litigate. It is the reason the letter you received is a starting position rather than a bill.
Where it does affect you
In a Compromise and ReleaseC&R — Compromise and Release A lump sum that closes future medical treatment permanently.. If you are settling everything for one number, who is responsible for known liens has to be written into the agreement. A well-drafted C&R says so. A poorly drafted one leaves you exposed to something you thought was resolved. What a C&R does.
In the net. Liens are one of the five things that come out between the settlement figure and your check. All five are knowable before you sign. The five things.
Something is about to be decided
Ratings, offers, conferences, and the documents that end a case.
Sources
Labor Code § 4903(a)–(i) (permissible liens)§ 4903.05 (filing fee and the lien-filing declaration)§ 4615 (automatic stay of a charged provider’s lien)§ 139.21 (provider suspension)§ 4903.5 (limitation period)§ 4903.6 (conditions on filing)§ 4904 (notice to the appeals board)§ 5001 (settlement approval)Labor Code § 4903§ 4615(a).
General information about California law, not legal advice about your case.
Reviewed by Jamey Teitell, Partner & Trial Attorney · Last reviewed
Law Offices of Solov & Teitell, APC · (213) 380-9310
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