2017 Arizona Revised Statutes
Title 33 - Property
§ 33-934 Release of claim by injured person ineffective as to lienholder; action to enforce lien

Universal Citation: AZ Rev Stat § 33-934 (2017)

33-934. Release of claim by injured person ineffective as to lienholder; action to enforce lien

A. A release of claims on which a lien or assignment is given by section 33-931 or of any judgment on that claim is not valid or effectual against the lien or assignment unless the lienholder or assignee joins in the release or executes a release of the lien or assignment. If any amount has been or is to be collected by the injured person or that person's legal representative from or on account of the person, firm or corporation liable for damages by reason of a judgment, settlement or compromise, the claimant or assignee of the lien or assignment may enforce the lien or assignment by action against the person, firm or corporation that is liable for damages, or against any insurer or other person, firm or corporation that is responsible for paying all or part of the damages.

B. An action pursuant to this section shall be commenced and tried in the county in which the lien or assignment is filed, unless ordered by the court to be removed to another county for cause. The court may allow reasonable attorney fees and disbursements to the prevailing party. The action shall be commenced within two years after the entry of the judgment or the making of the settlement or compromise. In an action to enforce a lien or assignment, the lienholder or assignee may not recover more than the amount of the lien or assignment nor may it recover more against a defendant in the lien action than that defendant is obligated to pay under judgment or settlement. The defendant in the lien or assignment action cannot raise as a defense in that action that it is not liable for the amount it is obligated to pay under the judgment or settlement except that it may dispute the amount of the lien on the grounds that the charges giving rise to the lien are erroneous or exceed the customary charges, or that the care, treatment or transportation giving rise to the charges was not medically necessary or causally related to the event giving rise to the claim to which the lien or assignment extends.

C. This section does not create any rights or causes of action on behalf of the lienholder other than are provided for in this section.

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