Beware Of Attorney Charging Liens

Attorneys' fee liens, commonly referred to as "charging liens," pose a difficult problem for defendants. Increasingly, plaintiffs are represented by multiple attorneys due to plaintiffs switching attorneys or attorney referrals. This is particularly true in product liability cases where it is typical for the original plaintiff's attorney to refer the case to an attorney specializing in product liability. Sometimes former plaintiff's attorneys file a formal notice of lien in the lawsuit. However, other times the former plaintiff's attorney does not file a formal lien notice with the court. When a settlement is reached it is typical for the defendant to require the plaintiff to resolve all liens, including any attorney charging liens, as a condition of the settlement. However, if the plaintiff and current plaintiff's attorney fail to resolve a charging lien, then the former attorney claiming a charging lien may seek to collect from defendant either in the original action or in a separate action.

Under Florida law, a former attorney's charging lien is enforceable against a defendant. Sinclair, Louis, Siegel, Heath, Nussbaum & Zavertnik, P.A. v. Baucom, 428 So. 2d 1383, 1385 (Fla. 1983). When a defendant has notice of a charging lien before settlement of the case, the defendant may be held liable to the former plaintiff's attorney. The Florida Supreme Court has held that "there are no requirements for perfecting a charging lien beyond timely notice." Id. Florida courts have found that "to give timely notice of a charging lien an attorney should either file a notice of lien or otherwise pursue the lien in the original action." Daniel Mones, P.A. v. Smith, 486 So. 2d 559, 561 (Fla. 1986). While courts have not defined what constitutes "pursuit" of the lien, the former attorney is probably not required to file a formal notice of lien with...