Arizona Laws 33-937. Limitation of lien or assignment; compromise; cause of action; attorney fees
A. All interested parties, including the health care provider, patient and patient’s attorney, shall compromise any lien or assignment granted pursuant to section 33-931 and the amounts owed pursuant to any such lien or assignment to provide a settlement of the claim that is fair and equitable to all parties.
Terms Used In Arizona Laws 33-937
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Dependent: A person dependent for support upon another.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
B. In determining the extent of the compromise required by subsection A of this section, the health care provider shall consider the following factors:
1. The nature and extent of the patient’s injury or illness.
2. The sufficiency of liability insurance or other sources of indemnity available to the patient from the tortfeasor or the tortfeasor’s insurer. The potential availability of health insurance or a similar medical benefit plan that covers the patient as an insured or dependent may not be considered as a factor in any compromise, if the patient and the health care provider have agreed not to use that health insurance or similar medical benefit plan coverage.
3. Whether the health care provider, the hospital or an assignee has received any payment reducing the patient’s financial obligation to pay the lien balance.
4. The nature and complexity of the services rendered by the health care provider to the patient.
5. The health care provider’s customary charges for the services rendered to the patient.
6. The total amount of the third-party judgment, settlement or award.
7. Other valid liens made pursuant to section 33-931 that are attached to any third-party judgment, settlement or award and the priority position of the liens.
8. The patient’s attorney fees and costs.
9. Any reductions agreed to by any other claimants to the total amount of the third-party judgment, settlement or award.
10. Other valid claims against the third-party judgment, settlement or award, including health insurance reimbursement and subrogation claims.
11. Any other factor relevant to a fair and equitable settlement under the circumstances of that particular case.
C. On request of the health care provider, the patient shall provide a proposed distribution of the settlement monies that contains a complete listing of how the monies would be distributed among all parties along with a statement of the monies that the patient would receive if the liens are compromised.
D. If the interested parties cannot agree on a compromise of a lien or assignment as prescribed by this section, an action may be filed for a judicial determination of an appropriate compromise of the lien or assignment based on the factors prescribed by this section. The action may be filed by the injured person whose care, treatment or transportation is subject to a lien or assignment pursuant to section 33-931, the health care provider or assignee, or the person, firm or corporation liable for damages, or any insurer or other person, firm or corporation that is responsible for paying all or part of the damages. In any action brought pursuant to this section, the prevailing party may not recover attorney fees authorized by section 33-934.