Nicoletti v. Lizzoli

In Nicoletti v. Lizzoli (1981) 124 Cal. App. 3d 361, a judgment creditor appealed from an order subordinating his statutory lien to the consensual liens of doctors and other medical lienors on the settlement proceeds from a personal injury action. The appellate court held that the trial court had not abused its discretion, noting that the medical lienors "are medical people required to provide services to people in emergency situations. They are not judgment creditors. To force a medical person to perfect a lien every time a service is provided is not logical nor reasonable. Such a requirement would not only damage the physician-patient relationship but would create a tremendous burden upon an already burdened judicial system. In personal injury matters the ability of litigants to pay the doctors before the services are performed is not always present. If the doctors were then obligated to file a court action to protect their liens after the services were performed it would not be long before doctors would cease to perform their services until they were paid. Such a practice would truly culminate in an unfortunate result. And public policy should support a system which enables medical people and medical businesses to be secure in a belief they will be paid for their services without having to become involved in civil litigation. To place any responsibility upon respondent and the other medical lienors to do more than perform their much needed services should not be encouraged nor allowed." ( Id. at pp. 369-370.) Accordingly, the Nicoletti court concluded that the trial court had not abused its power by (1) reviewing the conflicting claims, (2) ruling on their reasonableness and genuineness, and (3) establishing an equitable distribution based on the public policy of encouraging doctors to provide medical services to injured persons who were not immediately able to pay for them. ( Nicoletti, supra, 124 Cal. App. 3d at p. 370.)