A Texas judge granted a motion for summary judgment in a case involving an insurance dispute over a hospital lien.
Attorneys at Loncar Associates filed a lawsuit against GEICO and others for negotiating and paying a hospital lien for its insured. Loncar’s client, Herman Wright, was in a car accident on August 2, 2017 in Arlington, Texas and went to a hospital emergency room. The hospital filed a lien as allowed by law after the client failed to pay for services provided by the hospital. As the client’s insurance company, GEICO negotiated and paid the hospital lien to protect its insured. Loncar later sued GEICO, claiming the insurance company could not pay the lien without paying a 40 percent contingency fee to the attorney.
Perry Law attorneys Meloney Perry and Stacy Thompson filed a motion for summary judgment, stating GEICO could negotiate the lien on behalf of its insured under Texas law without paying Loncar’s contingency fee. The judge granted GEICO’s motion and dismissed Loncar’s suit against GEICO. Loncar did not appeal the decision.
The case is Loncar v. GEICO, et al.