May 26, 2019

Colorado Court of Appeals: Hospital Lien Statute Only Applies to Lien Violations Existing at the Time a Complaint is Filed

The Colorado Court of Appeals issued its opinion in Marchant v. Boulder Community Health, Inc. on Thursday, August 23, 2018.

Hospital Lien Statute—Statutory Penalties—Summary Judgment.

Marchant’s daughter was struck by an automobile and received medical treatment from Boulder Community Health, Inc. (BCH) for which she was billed $27,681.10. Cardon Outreach, LLC (Cardon), as agent for BCH, filed a statutory lien in that amount “upon the net amount payable . . . as damages on account of such injuries,” without first billing the daughter’s insurance company. BCH subsequently made an insurance adjustment to reduce the bill and billed the insurer, which paid $6,999.36, leaving a balance of $777.74. Cardon amended the lien to that amount. Marchant paid the balance, and the lien was released. Later, Marchant, as guardian of her daughter, filed an amended complaint alleging violation of the hospital lien statute, C.R.S. § 38-27-101, regarding her right to seek damages of twice the amount of the hospital lien filed.

The parties filed cross-motions for determination of a question of law, and the trial court ruled that C.R.S. § 38-27-101(7) only provides standing for a lawsuit if the plaintiff is subject to an improper lien at the time the legal action is filed. The trial court granted defendants’ motion for summary judgment.

On appeal, plaintiff contended that the trial court misinterpreted the hospital lien statute. The parties agreed that when the lien was filed it violated the hospital lien statute. However, the lien did not violate the statute at the time the lawsuit was commenced. The statute clearly applies only to liens that violate the statute at the time a complaint is filed. Thus, the statute does not allow plaintiff to seek damages.

The judgment was affirmed.

Summary provided courtesy of Colorado Lawyer.

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