The Indiana Court of Appeals recently held in Parkview Hosp. Inc. v. Am. Family Ins. Co. that a hospital was entitled to judgment as a matter of law on its hospital lien claim against an automobile insurance company that paid settlement funds directly to an injured party pursuant to an Ohio court order due to the insurance company’s failure to comply with the Indiana Hospital Lien Act. After suffering injuries in a car accident in Ohio, Carl Willis (“Willis”) received treatment for his injuries at Parkview Hospital (“Parkview”) in Allen County, Indiana with a balance due of $95,541.88 for the treatment provided at Parkview. Parkview filed a hospital lien in Allen County, Indiana pursuant to the Hospital Lien Act, Ind. Code § 32-33-4-4, and provided notice of such lien to Willis, Willis’ attorney, and American Family Insurance Company (“American Family”). Willis thereafter filed suit in Ohio against the parties responsible for the accident and American Family.
The Ohio trial court granted a motion to join Parkview as a party plaintiff in the Ohio action, ordering Parkview to appear or otherwise waive its rights. Parkview disputed that the Ohio court had subject matter jurisdiction over its claim and did not appear in the action. After settling the claim, Willis filed a motion to enforce the settlement agreement, which the Ohio trial court granted, ordering American Family to pay Willis $50,000.00 and ordering Willis to execute a hold harmless agreement with respect to any remaining valid liens. Parkview was not notified of the motion to enforce settlement agreement or order. The Ohio case was thereafter dismissed with prejudice.
Parkview then filed a complaint in Allen County, Indiana against Willis and American Family. Default judgment was entered against Willis. American Family and Parkview filed motions for summary judgment. American Family argued Parkview’s claim was barred based upon the proceedings in Ohio. Parkview argued that American Family violated the Hospital Lien Act. The trial court denied American Family’s motion finding the Ohio court did not have subject matter jurisdiction over Parkview’s hospital lien claim. The trial court also denied Parkview’s motion finding there existed a genuine issue of material fact as to whether American Family was justified in complying with the Ohio trial court’s order requiring it to pay the settlement proceeds to Willis.