Burrell v. Southern Truss

Jennifer Burrell (plaintiff) filed a negligence complaint in circuit court against Southern Truss (defendant) and later settled her claims for $8,500. Three of Burrell’s creditors filed separate liens in circuit court against Burrell’s settlement proceeds. One lienholder asserted a lien for $913.65 under the Hospital Lien Act, and two lienholders asserted liens for $473 and $1,529, respectively, under the Physicians Lien Act. Burrell then filed a petition to adjudicate the liens, arguing that the total amount of the three liens exceeded one-third of her settlement proceeds. Although the three liens in total exceeded one-third of Burrell’s settlement amount, the separate total amounts claimed under the two separate lien acts did not exceed one-third of the settlement amount. That is, the total amount claimed under the Hospital Lien Act did not exceed one-third of $8,500, and the total amount claimed under the Physicians Lien Act did not exceed one-third of $8,500. The circuit court aggregated the three lien claims, limited the total recovery on the liens to one-third of Burrell’s settlement, and accordingly prorated the amounts to be distributed to the lienholders. The total paid to the lienholders did not exceed one-third of Burrell’s settlement. Two of the lienholders appealed. The appellate court affirmed this distribution to the lienholders.