What Is a Lien in a New York Injury Lawsuit—and Why It Matters to Your Settlement
Welcome to The New York Injury Law Show! I’m Scott Peterson from D’Orazio Peterson LLP. Our goal is to give you helpful, easy-to-understand answers to common legal questions after an accident or injury in New York State.
Today, we’re talking about liens—a legal issue that often catches accident victims by surprise. If you’re not familiar with lawsuits or legal proceedings, you might not know what a lien is or how it can affect your settlement.
What Is a Lien in a Personal Injury Case?
In simple terms, a lien is a legal right for someone (usually an insurance provider or government agency) to be paid back from your settlement money if they covered certain costs related to your injury.
Real-Life Example: Workplace Injury and a Third-Party Lawsuit
Let’s say you get injured while working—maybe you’re driving a company vehicle, making a delivery, and another driver crashes into you. You break your leg.
- Step One: You file a New York Workers’ Compensation claim. Workers’ comp covers your medical bills and a portion of your lost wages.
- Step Two: You decide to sue the at-fault driver (not your employer) for causing the accident.
- Step Three: You settle the personal injury lawsuit for, let’s say, $100,000.
Here’s where the lien comes in: if workers’ comp already paid $30,000 in medical bills, they can legally ask to be repaid from your settlement. That $30,000 is considered a lien against your recovery.
Can Liens Be Negotiated?
Yes, and often they are. An experienced New York personal injury attorney may be able to negotiate the lien amount down. But make no mistake—under New York law, these liens are enforceable in most situations.
That’s why it’s so important for your attorney to identify any potential liens early in your case. This ensures you understand how much money you’ll actually walk away with once your case settles.
Other Common Types of Liens in New York
It’s not just workers’ compensation. Liens can also come from:
- Medicare
- Medicaid
- New York State social services programs
For example, if a 75-year-old slips and falls and breaks their hip in a nursing home and Medicare covers their medical bills, Medicare can place a lien on any lawsuit recovery to get reimbursed.
These liens can significantly impact the final amount you receive—so they must be considered during settlement negotiations.
Why You Need a New York Injury Lawyer Who Understands Liens
Liens are part of the “behind-the-scenes” work your attorney should be handling. Unfortunately, many accident victims don’t even know about them until it’s too late. That’s why working with a lawyer who understands New York’s personal injury laws—and how liens work—is essential to protecting your settlement.
Have Questions About a Personal Injury Case or Medical Liens in New York?
At D’Orazio Peterson LLP, we’ve helped countless New Yorkers navigate personal injury claims, workers’ comp issues, and complex lien situations. If you’ve been hurt and need answers, contact us today. We’re here to help you understand your rights—and fight for what you deserve.