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12/09/87 In Re Estate of Kathryn Louise Phillips

December 9, 1987

IN RE ESTATE OF KATHRYN LOUISE PHILLIPS, A MINOR (THE


APPELLATE COURT OF ILLINOIS, SECOND DISTRICT

Sisters of the Third Order of St. Francis, d/b/a

Saint Anthony Medical Center,

Petitioner-Appellant v.

Kathryn Louise Phillips, Respondent-Appellee)

517 N.E.2d 30, 163 Ill. App. 3d 935, 115 Ill. Dec. 65 1987.IL.1812

Appeal from the Circuit Court of Winnebago County; the Hon. Galyn Moehring, Judge, presiding.

APPELLATE Judges:

JUSTICE HOPF delivered the opinion of the court. DUNN and WOODWARD, JJ., concur.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE HOPF

Petitioner, the Sisters of the Third Order of St. Francis, appeals from the trial court's order denying its petition to enforce a hospital lien against Kathryn Louise Phillips, respondent. This cause involved the enforceability of a hospital lien against the settlement proceeds of Phillips, an injured minor. On appeal, petitioner disputes the trial court's determination that its lien notice was not timely filed since it was filed after the physical distribution of the proceeds.

On May 3, 1986, Phillips sustained injuries as a result of being struck by a riding lawn mower. Phillips received treatment for her injuries from petitioner, a not-for-profit hospital. Phillips' father, who was appointed guardian of her estate, petitioned the court to settle the cause of action by approving the settlement offer of $25,000 and applying the proceeds to the outstanding medical bills and attorney fees. On October 14, 1986, the court approved the proposed settlement of $25,000 and set for hearing the matter of distributing the proceeds.

According to the court's order of October 22, 1986, the medical creditors received none of the proceeds. The court instead awarded attorney fees of $6,250, costs of $188.75, a guardian ad litem fee of $225, parents' expenses of $600, and $17,736.25 to Phillips' estate.

Petitioner filed a post-trial motion on November 12, 1986, asserting that it continued to have a lien on the proceeds of the settlement, which the court failed to recognize. The motion requested the court to modify the order and pay petitioner $2,635.21, the amount of services rendered, from the proceeds of the settlement. The court granted the petitioner's motion, vacated its order only with respect to the petitioner, and set for hearing petitioner's request for reimbursement.

Petitioner mailed its lien notice to the respondent on November 21, 1986. Thereafter, on December 8, 1986, petitioner filed its petition to enforce the hospital lien. After a full hearing on December 23, 1986, the court determined that petitioner's lien had not attached to the settlement proceeds ...


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