Legal Memorandum: Scope of Medical Lien Law

Issue: What is the scope of the North Carolina hospital lien law?

Area of Law: Healthcare & Pharmaceutical Law Compliance, Litigation & Procedure
Keywords: Medical lien statute; Scope of law
Jurisdiction: North Carolina
Cited Cases: 196 S.E.2d 731; 642 F. Supp. 1119; 86 S.E.2d 925; 367 S.E.2d 6
Cited Statutes: N.C. Gen. Stat. §§ 44-49 and -50; N.C. Gen. Stat. §§ 131-E-48 to -51; N.C. Gen. Stat. §§ 44-51.1 to -51.8, § 44-51.4.
Date: 02/01/2001

           North Carolina’s medical lien statute is N.C. Gen. Stat. §§ 44-49 and -50 (1990).  The following cases are among those applying the lien statutes:

Ellington ex. rel. Ellington v. Bradford, 86 S.E.2d 925 (N.C. 1955) (statutes to be strictly construed).

Travelers Ins. Co. v. Keith, 196 S.E.2d 731 (N.C. 1973) (statute imposing medical-expenses lien on patient’s recovery in personal injury action does not impose obligation upon the defendant against whom judgment was rendered).

Duke Univ. Medical Ctr., Private Diagnostic Clinic v. Hardy, 367 S.E.2d 6 (N.C. Ct. App. 1988) (filing requirements for lien must be strictly met or lien is not preserved).

There also is a statute allowing garnishment for debts owed to public hospitals.  N.C. Gen. Stat. §§ 131-E-48 to -51 (1992).

Applicability if suit could be filed outside North Carolina.  Whether N.C. Gen. Stat. §§ 44-49 and -50 were intended to have extraterritorial effect is not clear; there are no cases addressing the issue.

The issue was raised but not resolved in a diversity action in Illinois federal court involving a choice of law between the Illinois and District of Columbia hospital lien statutes.  Travelers Indem. Co. v. Moore, 642 F. Supp. 1119, 1128 n.8 (C.D. Ill. 1986).  However, on a related point the court concluded:  “Perfection of a lien under the District of Columbia’s hospital lien statute simply does not conflict with any of the policies underlying Illinois law […]

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