ÿWPCç £ÊÚ}¢P¹™Ê²9vñI£yµÔ}) Õ£Œªmû¸õJ¬Œè3š†è*wßbÃÓ9öpó3ÎÏÊ”ïám.À‰ MZ»~¢z‘çHñÐY)r÷»Üº+ †‚@>µŸ‹ ½ÂloLöÖn«—ýaÀκê¸Æ|ŸhYoÀçfP|~²!²öÛ[Ã劳†Ô* Ú«%é{r—R9¤l~¥÷]Ý¡|[;ˆf ÐÛîIKï—(kŽSã›gâT¶¿Þ"Å`kXßHàõýzPx%¨Þï!xöìqüÀ¯~þ›Q¦‰‰ºã0FY+ëÁZ`1:¸²KFá5¯"Â,ñ¯ÂxÿÜ·–œ=å€ÚS0F¿4R…¡Å+‚²Z¤ˆVCÍq¨Ý0»`&èºú5†C<Ρ|Ç]‡;r?0:CÙN}+ …Ûé§Þ§Ó ÷j?‚¿èñÏKsóé‚k~t¼½´Œ«Oµ6ªž²¾E ž´>à[»€<AIDj§Åvø·Ê wÍð0¢ó·)d’€þ§îà-ꎪØcælVµà¤ÊºÝ¤ºü“e¸ˆLŸ>t%˜;íëÉu›ÆcÃe'×!Ô¤1½ßS8ÆÊªè6œðï5b#Á\ % ^ # 0ˆ/ UN· w 4 z Ò— i x mz ‘ Æ™ Æ_ Æ% Æë UN±Nÿ• 0D–EÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚÚbÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜÜ 0ëääää BÏÏ 0¤ì D3 D-à 0Kðð AS;ÆŽ 0¤T 0Dø A«<˜HP LaserJet 4050 Series PCL 5eÈÈ,,,,ÈÈ0»”xv) (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular-vn)  k14¤ ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|x ÿU‹ÿÀÀÀ Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(ÈhH  Z 6Times New Roman Regular ‹Ý ƒR}J$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôîUò»»ÔÝ  ÝÔ_ÔIn€his€brief,€Mr.€Dalton€attempts€to€argue€that€the€$8,786.00€is,€actually,€more€than€one„third€of€Ms.€MartinoððsÐ ° Ðnet€recovery.€€We€find€no€basis€for€applying€Tenn.€Code€Ann.€ðð€29„22„101(b)ððs€limitation€of€one„third€of€the€settlementÐ tÄ Ðamount€to€anything€other€than€the€settlement€amount.€€òòSee€Spivey€v.€Andersonóó,€No.€02A01„9704„CV„00075,€1997€WLÐ 8ˆ Ð563190€at€*5€€(Tenn.€Ct.€App.€Sept.€9,€1997)€(Ô‡X‘XòôîUÔÔ#†ôîUòXX‘O#Ôno€Tenn.€R.€App.€P.€11€application€filed).€€Further,€although€Mr.€DaltonððsÐ üL Ðargument€appears€to€refer€to€the€effect€of€litigation€expenses,€there€is€nothing€in€the€record€before€us€establishing€suchÐ À Ðexpenses.(#Ã$òòÚ  Ú0Ú  Úóó- ù-(|G2}J$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€]­»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôîUò»»Ô d(|3$££Ý ƒ£ª!ÝÑ€.ÑÑ8€]­»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€]­»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€]­»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼]­»»»ÔÑ8€‘XXdì»»d8ÑÑ  Ñà@ü ü ìàÔ‡îUü]­ÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@kk$ìàAT€NASHVILLEÔ#†¼]­»îîUü #ԈРÖ& ÐÓ  ÓMay€3,€2000€SessionÐ üL ÐÔ‡X‘X»¼]­ÔÌò òÔ#†¼]­»XX‘ð#ÔANITA€MARTINO,€òòet€al.óó€v.€ROBERT€L.€DYER,€òòet€alóó.Ô‡X‘X»¼]­Ôó óÐ úJ ÐÌà@@½½ìàò òAppeal€from€the€Circuit€Court€for€Sumner€CountyÐ ú J Ðà@@øøìàNo.€17632€€€€€€William€M.€Dender,€JudgeÐ æ 6 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<©` AßÐ ªú  ÐÌà@@TTìàNo.€M1999„02397„Ô_ÔCOAÔ_Ô„R3„CV€„€Filed€November€22,€Ô_Ô2000Ô_ÔÐ ¥õ  ÐÌßA€V) °°` dE<|` AßÐ }Í  Ðó óÌÓ  ÓThe€trial€court€granted€the€motion€of€an€attorney€seeking€collection€of€a€òòpro€rataóó€share€of€his€feeÐ xÈ  Ðfrom€a€hospital€lien€against€his€clientððs€settlement.€€The€effect€of€the€trial€courtððs€order€is€to€requireÐ d´ Ðthe€hospital€to€pay€fees€to€an€attorney€it€did€not€hire.€€We€reverse€the€judgment.Ð P  ÐÓ°ÓÌò òTenn.€R.€App.€P.€3€Appeal€as€of€Right;€Judgment€of€the€Circuit€Court€Reversed€andÐ (x ÐRemandedó óÐ d ÐÌòòÓ  ÓÔ#†¼]­»àX‘q#ÔÔ‡X‘X.¼]­ÔPatricia€J.€Cottrell,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòBen€H.€Cantrell,€P.J.,€M.S.,óóÐ ì< Ðand€òòWilliam€C.€Koch,€Jr.,€J.óó,€joined.Ð Ø( ÐÌH.€E.€Miller,€Jr.,€Gallatin,€Tennessee,€for€the€appellants,€Robert€L.€Dyer€and€Sumner€RegionalÐ ° ÐMedical€CenterÐ œì ÐÌCatherine€S.€Hughes€and€Joseph€M.€Dalton,€Jr.,€Nashville,€Tennessee,€for€the€appellees,€AnitaÐ tÄ ÐMartino€and€Joseph€M.€Dalton,€Jr.Ð `° ÐÌÓÄÓÌò òOPINIONó óÔ#†¼]­»XX‘ó#ÔÔ‡X‘X»¼]­ÔÐ $"t! ÐÌòòóóÔ#†¼]­»XX‘U #ÔÔ‡X‘X»¼]­ÔÓ  Óà  àÔ#†¼]­»XX‘³ #ÔÔ€X‘X»¼]­ÔAnita€Martino€was€injured€in€an€automobile€accident€and€received€treatment€for€these€injuriesÐ ü#L# Ðat€Sumner€Regional€Medical€Center€(SRMC).€€Ms.€Martino€filed€suit€against€Robert€L.€Dyer,€theÐ è$8 $ Ðdriver€of€the€other€vehicle€involved€in€the€collision,€and€informed€SRMC€that€she€was€seekingÐ Ô%$!% Ðdamages€from€the€other€driver.€€Rather€than€filing€a€lawsuit€against€Ms.€Martino€to€collect€on€its€bill,Ð À&"& Ðthe€hospital€held€her€outstanding€accounts€for€some€time.€€After€she€notified€the€hospital€she€was€Ð ¬'ü"' Ðproceeding€against€the€other€driver,€SRMC€filed€an€amended€Notice€of€Hospital€Lien€for€the€amountÐ ˜(è#( Ðof€$8,786.00€pursuant€to€Tenn.€Code€Ann.€ðð€29„22„101.€€Ms.€Martino€and€Mr.€Dyer€reached€aÐ „)Ô$) Ðsettlement€agreement€for€$42,500.€€Mr.€Dyerððs€attorney€delivered€a€check€for€this€amount€to€Mr.Ð p*À%* ÐDalton,€attorney€for€Ms.€Martino.€€Mr.€Dalton€retained€the€$8,786.00€claimed€by€SRMC,€despiteÐ \+¬&+ Ðinquiries€from€the€hospital€as€to€its€status,€and€then€filed€a€motion€for€attorney€fees€ð ðfor€the€collectionÐ H,˜', Ðof€monies€on€behalf€of€Sumner€Regional€Medical€Center€in€the€amount€of€$8,786.00ðð€requestingÐ 4-„(-ý¾ Ðone„third€of€the€amount€of€the€hospital€lien.€€The€trial€court€granted€this€motion,€ordering€Mr.€DaltonÐ ° Ðto€pay€$5,887.00€to€SRMC.€€The€trial€court€found€that€Mr.€Dalton€had€already€deducted€his€fee€fromÐ œì Ðthe€net€settlement€and€ordered€that€the€remaining€$2,899.00€of€the€total€money€attached€by€theÐ ˆØ Ðhospital€lien€be€given€to€Ms.€Martino€as€compensation.€€The€trial€court€stated:Ð tÄ ÐÌà8  à[Ô_ÔT]heÔ_Ô€amount€due€Sumner€Regional€Medical€Center€from€.€.€.€the€settlement€proceedsÐ L œ Ðheld€in€escrow€is€the€amount€of€the€lien€filed€less€the€amount€of€attorney€fee€chargedÐ 8 ˆ ÐMs.€Martino€on€the€amount€claimed€by€the€lien.€€The€attorney€fee€charged€on€theÐ $ t Ðamount€claimed€by€the€lien€should€be€the€same€percentage€as€was€charged€on€theÐ  ` Ðentire€settlement.€€The€amount€of€the€attorney€fee€charged€Ms.€Martino€on€theÐ ü L  Ðamount€of€the€lien€of€Sumner€Regional€Medical€Center€shall€be€refunded€to€Ms.Ð è 8  ÐMartino€out€of€the€proceeds€of€the€settlement€funds€held€in€escrow€by€AttorneyÐ Ô$  ÐDalton.ÐÀ Ð Ð  ÐÌà  àIn€essence,€the€trial€court€awarded€Ms.€Martinoððs€counsel€33%€of€the€hospitalððs€recovery€toÐ ˜è  Ðbe€deducted€from€the€hospitalððs€payment.Ð „Ô  ÐÌà@´´)ìàI.ˆÐ \¬ ÐÌà  àWe€begin€our€analysis€with€the€statute€creating€hospital€liens:Ð 4„ ÐÌà8  àa)€€Every€person,€firm,€association,€corporation,€institution,€or€any€governmental€unit,Ð  \ Ðincluding€the€state€of€Tennessee,€any€county€or€municipalities€operating€andÐ øH Ðmaintaining€a€hospital€in€this€state,€shall€have€a€lien€for€all€reasonable€and€necessaryÐ ä4 Ðcharges€for€hospital€care,€treatment€and€maintenance€of€ill€or€injured€persons€uponÐ Ð  Ðany€and€all€causes€of€action,€suits,€claims,€counterclaims€or€demands€accruing€to€theÐ ¼  Ðperson€to€whom€such€care,€treatment€or€maintenance€was€furnished,€or€accruing€toÐ ¨ø Ðthe€legal€representatives€of€such€person€in€the€case€of€his€or€her€death,€on€account€ofÐ ”ä Ðillness€or€injuries€giving€rise€to€such€causes€of€action€or€claims€and€whichÐ €Ð Ðnecessitated€such€hospital€care,€treatment€and€maintenance.Ðl¼Ð Ð  ÐÌà8  àb)€The€hospital€lien,€however,€shall€not€apply€to€any€amount€in€excess€of€one„thirdÐ D!” Ð(1/3)€of€the€damages€obtained€or€recovered€by€such€person€by€judgment,€settlementÐ 0"€  Ðor€compromise€rendered€or€entered€into€by€such€person€or€his€or€her€legalÐ #l! Ðrepresentative€by€virtue€of€the€cause€of€action€accruing€thereto.Ð$X"Ð Ð  ÐÌà8  àc)€The€lien€herein€created€shall€be€subject€and€subordinate€to€any€attorneyððs€lienÐ à%0!$ Ðwhether€by€contract,€suit€or€judgment€upon€such€claim€or€cause€of€action€and€shallÐ Ì&"% Ðnot€be€applicable€to€accidents€or€injuries€within€the€purview€of€the€TennesseeÐ ¸'#& ÐWorkersðð€Compensation€Law,€compiled€in€chapters€9„12€of€title€50.€€Any€such€lienÐ ¤(ô#' Ðarising€out€of€a€motor€vehicle€accident€shall€not€take€priority€over€a€mechanicððs€lienÐ )à$( Ðor€prior€recorded€lien€upon€a€motor€vehicle€involved€in€said€accident.Ð|*Ì%)Ð Ð  ÐÐ h+¸&* ÐTenn.€Code€Ann.€ðð€29„22„101€(2000).Ð ° ÐÌà  àThe€Attorney€General€of€Tennessee€has€opined€that€the€legislative€purpose€of€this€statute€isÐ ˆØ Ðto€protect€hospitals.Ð tÄ ÐÌà8  àIn€enacting€this€legislation€[hospital€lien€statute],€the€legislature€indicated€that€theÐ L œ Ðpurpose€of€this€Act€is€to€create€liens€for€hospitals€to€ensure€that€hospital€bills€are€paid.€Ð 8 ˆ Ѐ(Senate€Debate€on€S.B.€824€(February€11,€1970)€(Tape€No.€S„056).€€The€legislatureÐ $ t Ðrecognized€that€hospitals€were€losing€funds€from€providing€care€to€individuals€whoÐ  ` Ðlater€collected€a€settlement€or€judgment€for€their€injuries€but€failed€to€pay€theirÐ ü L  Ðhospital€bills.€€Id.€€The€legislature€noted€that€this€Act€would€help€keep€hospital€costsÐ è 8  Ðdown€by€setting€up€an€orderly€method€for€the€establishment€of€liens€on€suchÐ Ô$  Ðsettlements€or€judgments.€€(House€Debate€on€Ô_ÔH.B.Ô_Ô€1056€(S.B.824)€(February€20,Ð À  Ð1970)€(Tape€No.€H„126).Ьü Ð Ð  ÐÌOp.€Tenn.€Ô_ÔAttððyÔ_Ô€Gen.€94„067€(May€13,€1994).Ð „Ô  ÐÌà  àCourts€in€other€states€have€found€a€similar€purpose€in€similar€hospital€lien€statutes:Ð \¬ ÐÌà8  àThe€purpose€of€a€hospital€lien€statute€is€to€provide€hospitals€an€additional€method€ofÐ 4„ Ðsecuring€payment€for€medical€services,€thus€encouraging€the€prompt€and€adequateÐ  p Ðtreatment€of€accident€victims.Ð \Ð Ð  ÐÌòòBashara€v.€Baptist€Ô_ÔMemððlÔ_Ô€Hosp.€Ô_ÔSysÔ_Ô.óó,€685€S.W.2d€307,€309€(Tex.€1985).Ð ä4 ÐÌà  àSimilarly,€the€Indiana€Court€of€Appeals€has€found€that€Indianaððs€hospital€lien€statute€has€asÐ ¼  Ðits€underlying€purpose€ð ðto€[ensure]€that€hospitals€are€compensated€for€their€services.ðð€€òòCommunityÐ ¨ø ÐHosp.€v.€Carlisleóó,€648€N.E.2d€363,€365€(Ind.€Ct.€App.€1995).Ð ”ä ÐÌà8  àBy€allowing€health€care€providers€direct€interests€in€funds€collected€by€personalÐ l¼ Ðinjury€patients,€the€statute€furthers€the€important€policy€of€reducing€the€amount€ofÐ X ¨ Ðlitigation€that€would€otherwise€be€necessary€to€secure€repayment€of€the€health€careÐ D!” Ðdebts.Ð0"€ Ð Ð  ÐÌòòId.óóÐ $X" ÐÌà  àWe€interpret€Tenn.€Code€Ann.€ðð€29„22„101€as€providing€hospitals€with€a€mechanism€toÐ à%0!$ Ðensure€that€those€people€who€recover€damages€for€injuries€pay€their€hospital€bills€out€of€thoseÐ Ì&"% Ðrecoveries.€€The€hospital,€of€course,€is€not€obligated€to€file€a€lien€and€is€not€precluded€from€otherÐ ¸'#& Ðremedies€available€to€it€to€collect€from€any€patient€who€has€not€paid€his€or€her€bill.Ð ¤(ô#' ÐÌÌÐ h+¸&* Їà@••)ìàII.ˆÐ ° ÐÌà  àThe€trial€court€herein€read€subsection€(c)€of€Tenn.€Code€Ann.€ðð€29„22„101€as€subordinatingÐ ˆØ Ðthe€hospitalððs€lien€to€Mr.€Daltonððs€fees.€€We€disagree€and€interpret€the€priority„setting€provision€toÐ tÄ Ðapply€only€where€the€recovery€is€insufficient€to€meet€both€the€attorneyððs€lien€and€the€hospitalððs€lien.Ð `° ÐÌà  àWe€agree€with€the€reasoning€of€the€Court€of€Appeals€of€Indiana€as€set€out€in€òòCommunityÐ 8 ˆ ÐHospital€v.€Carlisleóó,€a€case€involving€the€same€issue€presented€in€the€case€before€us€and€based€onÐ $ t ÐIndianaððs€hospital€lien€statute.€€That€court€stated:Ð  ` ÐÌà8  àWhere€settlement,€compromise€or€other€proceeds€are€sufficient€to€pay€all€interestedÐ è 8  Ðparties,€rules€regarding€order€of€payment€serve€no€useful€function.€€A€problem€arisesÐ Ô$  Ðonly€where€funds€are€insufficient€to€meet€all€claims.ÐÀ Ð Ð  ÐÌòòCarlisleóó,€648€Ô_ÔN.E.Ô_Ô€2d€at€365.Ð ˜è  ÐÌà  àThe€Indiana€court€recognized€the€various€interests€which€that€stateððs€statute€attempted€toÐ pÀ Ðaccommodate€and€noted€that€by€expressly€allowing€attorneys€to€collect€their€fees€before€satisfactionÐ \¬ Ðof€other€liens,€the€statute€helped€ensure€that€personal€injury€claims€are€pursued€on€behalf€of€injuredÐ H˜ Ðpersons€who€cannot€initially€afford€attorney€fees.€€òòSee€idóó.€€Both€the€Tennessee€statute€and€the€IndianaÐ 4„ Ðstatute,€by€different€methods,€ensure€that€the€injured€personððs€recovery€cannot€be€depleted€by€theÐ  p Ðhospitalððs€lien.€€Tenn.€Code€Ann.€ðð€29„22„101(b)€limits€the€hospital€lien€to€one„third€of€the€damagesÐ  \ Ðrecovered.Ð øH ÐÌà  àA€lien€is€a€legal€claim€on€property€for€the€payment€of€a€debt€or€obligation.€€òòSeeóó€òòKeep€FreshÐ Ð  ÐFilters,€Inc.€v.€Regulióó,€888€S.W.2d€437,€443€(Tenn.€Ct.€App.€1994).€€Ms.€Martino€owed€the€hospitalÐ ¼  Ðfor€the€services€provided,€and€she€recovered€damages€which€included€her€medical€costs.€€She€alsoÐ ¨ø Ðowed€her€attorney€for€his€services€on€her€behalf.€€It€is€undisputed€that€the€amount€Ms.€MartinoÐ ”ä Ðrecovered€was€sufficient€to€pay€both€the€hospital€and€her€lawyer.׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€Therefore,€the€lawyer€and€theÐ €Ð Ðhospital€were€not€competing€for€the€same€money€and€the€issue€of€priority€of€their€rights€is€simply€notÐ l¼ Ðrelevant.€Ð X ¨ ÐÌà  àOther€provisions€of€the€Tennessee€hospital€lien€statutes€contravene€any€implication€that€theÐ 0"€  Ðhospitalððs€recovery€can€be€reduced€by€anything€other€than€its€statutory€one„third€limit.€€The€statutesÐ #l! Ðprovide€that€any€acceptance€of€a€release€of€a€claim€for€damages€and€any€settlement€of€such€claim,Ð $X" Ðin€the€absence€of€a€release€of€the€lien€by€the€hospital€Ô_ÔlienholderÔ_Ô,€constitute€an€impairment€of€theÐ ô$D # Ðhospitalððs€lien.€€Tenn.€Code€Ann.€ðð€29„22„104(b)(1).€€ð ð[T]he€lienholder€shall€be€entitled€to€an€actionÐ à%0!$ Ðat€law€for€damages€on€account€of€such€impairment.ðð€€òòId.óó;€òòsee€also€University€of€Tennessee€v.Ð ° ÐPrudential€Ins.€Coóó.,€No.€03A01„9611„CV„00345,€1997€WL€119582€at€*3€(Tenn.€Ct.€App.€March€18,Ð œì Ð1997,€order€on€Rehearing€July€1,€1997)€(perm.€app.€denied€Dec.€22,€1997)€(hospital€lien€applied€toÐ ˆØ Ðcontractual€obligation€of€insurer€who€paid€its€insured€for€hospital€costs,€and€hospital€was€entitled€toÐ tÄ Ðrecover€full€amount€of€the€lien€as€damages€in€suit€against€insurer€for€impairment€of€its€lien).Ð `° ÐÌà  àWe€conclude€that€the€statute€provides€no€basis€for€the€reduction€by€the€trial€court€of€theÐ 8 ˆ Ðamount€due€to€the€hospital.Ð $ t ÐÌà@vv(ìàIII.ˆÐ ü L  ÐÌà  àMr.€Dalton€asserts€alternative€or€additional€bases€for€the€trial€courtððs€decision.€€Before€weÐ Ô$  Ðexamine€those€bases,€however,€it€is€important€to€identify€the€specific€effect€of€the€trial€courtððs€ruling.€Ð À  ÐWhile€limiting€the€total€amount€of€fees€payable€to€Mr.€Dalton,€the€court€ordered€that€the€hospitalððsÐ ¬ü  Ðlien€amount€be€reduced€by€33%€and€that€Ms.€Martinoððs€attorney€fees€be€reduced€by€that€much.€€InÐ ˜è  Ðessence,€the€trial€court€required€the€hospital€to€pay€Ms.€Martinoððs€lawyer€as€if€he€had€also€been€theÐ „Ô  Ðhospitalððs€lawyer.€€Mr.€Dalton€describes€the€order€as€requiring€the€hospital€to€pay€its€share€of€attorneyÐ pÀ Ðfees€necessary€to€recover€the€settlement€on€a€òòpro€rataóó€basis.€€He€asserts€that€the€order€appropriatelyÐ \¬ Ðrecognizes€the€benefit€the€hospital€received€due€to€his€efforts.Ð H˜ ÐÌà  àThe€general€rule€in€Tennessee,€however,€is€to€the€contrary.Ð  p ÐÌà8  àThere€are,€of€course,€many€situations€in€which€the€work€of€an€attorney€proves€usefulÐ øH Ðto€persons€other€than€his€own€client.€€The€normal€rule€in€such€cases€is€that€he€mustÐ ä4 Ðlook€only€to€his€client,€with€whom€he€has€contracted,€for€his€compensation,Ð Ð  Ðnotwithstanding€the€acceptance€of€benefits€by€others.м Ð Ð  ÐÌòòTravelers€Ins.€Co.€v.€Williamsóó,€541€S.W.2d€587,€589€(Tenn.€1976).Ð ”ä ÐÌà  àWhile€acknowledging€the€general€rule,€Mr.€Dalton€asserts€that€the€situation€before€us€fallsÐ l¼ Ðwithin€a€recognized€exception.€€Mr.€Daltonððs€motion€for€attorney€fees€was€originally€based€upon€aÐ X ¨ Ðtheory€of€òòquantum€meruitóó.€€In€a€supplemental€memorandum,€he€also€asserted€alternative€theories€ofÐ D!” Ðsubrogation€and€the€common€fund€doctrine.€€On€appeal,€Mr.€Dalton€argues€the€common€fundÐ 0"€  Ðdoctrine€and€unjust€enrichment.€€Each€of€these€theories€must€be€examined€in€the€context€of€theÐ #l! Ðparticular€facts€of€this€case€and€with€recognition€that€the€beginning€point€is€the€general€rule€that€aÐ $X" Ðlawyer€must€look€to€his€or€her€client,€not€others€incidentally€benefitted€by€the€attorneyððs€efforts,€forÐ ô$D # Ðpayment€of€fees.Ð à%0!$ ÐÌà  àð ðA€òòquantum€Ô_ÔmeruitÔ_Ôóó€action€is€an€equitable€substitute€for€a€contract€claim€pursuant€to€whichÐ ¸'#& Ða€party€may€recover€the€reasonable€value€of€goods€and€services€provided€to€anotherðð€under€certainÐ ¤(ô#' Ðcircumstances.€€òòÔ_ÔSwaffordÔ_Ô€v.€Harrisóó,€967€S.W.2d€319,€324€(Tenn.€1998).€€Among€the€circumstancesÐ )à$( Ðâ ârequired€to€be€shown€are€(1)€that€the€parties€to€the€transaction€should€have€reasonably€understoodÐ |*Ì%) Ðthat€the€person€providing€the€goods€or€services€expected€to€be€compensated€and€(2)€that€it€would€beÐ ° Ðunjust€to€retain€the€goods€or€services€without€payment.€€òòSee€id.Ð œì Ðâ âÌà  àóóThe€facts€in€this€case€demonstrate€that€the€hospital€did€not€hire€Mr.€Dalton€to€act€in€its€behalf.€Ð tÄ ÐMr.€Dalton€was€hired€by€Ms.€Martino€to€pursue€her€claim€against€the€driver€who€caused€her€injuries.€Ð `° ÐThe€record€herein€includes€an€undisputed€affidavit€from€an€employee€of€the€hospitalððs€accountingÐ L œ Ðdepartment.€€It€documents€the€hospitalððs€efforts€to€get€Ms.€Martino€to€pay€her€bill.€€After€telling€Ms.Ð 8 ˆ ÐMartino€that€it€could€not€hold€the€accounts€indefinitely,€the€hospital€received€a€letter€from€Mr.€DaltonÐ $ t Ðasking€for€ð ðsome€understanding€on€your€part€in€your€efforts€to€satisfy€any€outstanding€medical€bills.ðð€Ð  ` ÐThe€hospital€filed€its€lien,€but€continued€to€seek€information€regarding€any€legal€action€Ms.€MartinoÐ ü L  Ðmight€take,€including€communications€with€Mr.€Daltonððs€office.€€The€affidavit€makes€it€clear€thatÐ è 8  Ðthe€hospitalððs€efforts€and€interest€were€solely€related€to€its€collecting€from€Ms.€Martino€the€$8,786.00Ð Ô$  Ðit€had€billed€her.€€The€affidavit€concludes:Ð À  ÐÌà8  àÔ_ÔSRMCÔ_Ô€did€not€employ€Attorney€Dalton€to€represent€its€interest€in€regard€to€theÐ ˜è  ÐHospital€Lien€which€applies€to€the€above€styled€lawsuit.€€Attorney€Dalton€has€notÐ „Ô  Ðprovided€a€valuable€service€to€SRMC.€€To€encourage€SRMC€not€to€pursue€collectionÐ pÀ Ðactions€against€his€client,€Plaintiff€Martino,€Attorney€Dalton€suggested€to€SRMC€thatÐ \¬ Ðit€file€a€Hospital€Lien,€which€would€protect€its€interest€in€recovering€the€amount€ofÐ H˜ Ðits€hospital€charges.Ð4„Ð Ð  ÐÌà  àAlthough€the€affidavitððs€conclusions€are€not€undisputed€statements€of€fact€and€Mr.€DaltonÐ  \ Ðdisagrees€with€any€legal€conclusion€to€be€drawn€from€the€facts,€Mr.€Dalton€has€furnished€no€evidenceÐ øH Ðthat€he€had€any€agreement€with€the€hospital€to€represent€it.€€The€hospital€was€Ms.€Martinoððs€creditorÐ ä4 Ðand€had€available€to€it€various€remedies€to€collect€the€debt€she€owed,€regardless€of€her€ability€toÐ Ð  Ðcollect€damages€for€her€injuries€from€another€party.€€We€agree€with€the€Supreme€Court€of€Montana,Ð ¼  Ðwhich€stated:Ð ¨ø ÐÌà8  àThe€attorneys€here€simply€performed€the€services€they€were€obligated€to€performÐ €Ð Ðunder€their€employment€contract€with€their€client,€the€accident€victim.€€The€clientÐ l¼ Ðreceived€the€benefit€of€her€attorneysðð€services€in€the€form€of€accident€settlementÐ X ¨ Ðproceeds€from€which€she€could€pay€the€hospital€bill€she€owed€to€the€hospital€andÐ D!” Ðdischarge€its€lien.€€The€fact€that€an€incidental€benefit€was€also€received€by€theÐ 0"€  Ðhospital€from€her€attorneysðð€services€in€the€form€of€settlement€proceeds€from€whichÐ #l! Ðits€bill€could€be€paid€does€not,€in€itself,€create€an€implied€contract€by€the€hospital€toÐ $X" Ðpay€her€attorneys€for€their€services.Ðô$D #Ð Ð  ÐÌòòSisters€of€Charity€of€Providence€of€Montana€v.€Nicholsóó,€483€P.2d€279,€282„83€(Mont.€1971).Ð Ì&"% ÐÌà  àIn€addition,€Mr.€Dalton€has€not€met€another€requirement€for€a€successful€òòquantum€meruitóóÐ ¤(ô#' Ðclaim:€a€showing€that€it€would€be€unjust€for€one€party€to€retain€the€goods€or€services€providedÐ )à$( Ðwithout€payment.€€On€appeal,€Mr.€Dalton€has€also€argued,€independently€of€a€òòquantum€meruitóó€claim,Ð |*Ì%) Ðthat€the€hospital€would€be€unjustly€enriched€if€it€were€not€required€to€pay€a€òòpro€rataóó€share€of€theÐ h+¸&* Ðattorney€fees€involved€in€acquiring€the€settlement€for€Ms.€Martino.€€We€disagree€that€the€hospitalÐ ° Ðwould€be€unjustly€enriched€by€receiving€full€payment€for€the€medical€services€it€provided.€€There€isÐ œì Ðno€dispute€that€the€services€were€provided€and€no€dispute€as€to€their€reasonableness.€€The€hospitalÐ ˆØ Ðwas€entitled€to€full€payment€of€its€bill€from€Ms.€Martino,€and€we€cannot€see€how€receiving€thatÐ tÄ Ðpayment€could€be€considered€unjust€enrichment.€€òòSee€Ô_ÔBroadlawnsÔ_Ô€Polk€County€Hosp.€v.€Estate€ofÐ `° ÐMajoróó,€271€N.W.2d€714,€716€(Iowa€1978)€(in€response€to€a€similar€unjust€enrichment€argument,€theÐ L œ Ðcourt€noted€that€the€patient,€rather€than€the€hospital,€would€be€unjustly€enriched€if€the€hospital€wereÐ 8 ˆ Ðrequired€to€pay€a€portion€of€the€patientððs€attorney€fees).Ð $ t ÐÌà@ll)ìàIV.ˆÐ ü L  ÐÌà  àMr.€Daltonððs€alternative€argument€regarding€subrogation€must€also€fail.€€Subrogation€is€theÐ Ô$  Ðsubstitution€of€another€person€in€the€place€of€a€creditor,€so€that€the€person€in€whose€favor€it€isÐ À  Ðexercised€succeeds€to€the€rights€of€the€creditor€in€relation€to€the€debt.€€òòSee€York€v.€Ô_ÔSevierÔ_Ô€CountyÐ ¬ü  ÐAmbulance€Auth.óó,€8€S.W.3d€616,€618€(Tenn.€1999);òò€Ô_ÔBlankenshipÔ_Ô€v.€Estate€of€Bainóó,€5€S.W.3d€647,Ð ˜è  Ð650€(Tenn.€1999)òòóó.€€A€right€of€subrogation€may€arise€by€contract,€by€application€of€equitableÐ „Ô  Ðprinciples,€or€by€application€of€a€statute.€€òòSee€Ô_ÔBlankenshipÔ_Ôóó,€5€S.W.2d€at€650.€€However,€subrogationÐ pÀ Ðis€only€available€where€the€subrogee€pays€a€debt€for€which€the€other€party€is€primarily€liable.€€òòSeeÐ \¬ ÐIn€re€Ô_ÔYearginÔ_Ôóó,€116€Ô_ÔB.R.Ô_Ô€621,€622€(Ô_ÔBankrÔ_Ô.€M.D.€Tenn.€1990).€€In€the€case€before€us,€the€hospital€hasÐ H˜ Ðnot€paid€a€debt€for€Ms.€Martino,€and€Mr.€Dyer,€the€defendant,€is€not€Ms.€Martinoððs€creditor.€€NoneÐ 4„ Ðof€the€required€elements€to€establish€subrogation€is€present,€and€the€hospital€cannot€be€substitutedÐ  p Ðfor€Ms.€Martino€in€pursuing€a€claim€for€damages€against€Mr.€Dyer.Ð  \ ÐÌà  àAn€Indiana€Court€of€Appeals€has€recognized€the€difference€between€a€subrogee€and€a€hospitalÐ ä4 Ðlienholder€by€holding€that€Indianaððs€hospital€lien€statute,€which€is€comparable€to€that€of€Tennessee,Ð Ð  Ðdoes€not€subrogate€the€hospital€for€its€patient.€€The€court€concluded€that:Ð ¼  ÐÌà8  à[Ô_ÔW]eÔ_Ô€have€stated€that€subrogation€is€a€ð ða€legal€fiction€through€which€a€person,€whoÐ ”ä Ðnot€as€a€volunteer€or€in€his€own€wrong,€and€in€the€absence€of€outstanding€andÐ €Ð Ðsuperior€equities,€pays€the€debts€of€another,€is€substituted€to€all€rights€and€remediesÐ l¼ Ðof€the€other.ðð€In€this€case€[the€hospital]€did€not€ð ðpayðð€the€debts€of€[the€patient],€andÐ X ¨ Ðthe€hospital€lien€statute€does€not€give€[the€hospital]€a€right€to€substitute€itself€in€placeÐ D!” Ðof€[the€patient]€to€collect€a€claim€belonging€to€.€.€.€€its€patient.€€The€hospital€merelyÐ 0"€  Ðhas€an€interest€in€the€proceeds€of€a€claim€or€settlement€that€[the€patient]€is€to€receive.Ð#l!Ð Ð  ÐÌòòNational€Ins.€Ô_ÔAssððnÔ_Ô€v.€Ô_ÔParkviewÔ_Ô€Ô_ÔMemððlÔ_Ô€Hospóó.,€590€N.E.2d€1141,€1145€(Ind.€Ct.€App.€1992)€(citationsÐ ô$D # Ðomitted).Ð à%0!$ ÐÌà  àIn€a€case€involving€whether€the€attorney€for€an€injured€party€was€entitled€to€fees€from€theÐ ¸'#& Ðinsurer€subrogee,€our€Supreme€Court€stated:Ð ¤(ô#' ÐÌÔ‡X‘XXX‘Ôà8  àUpon€payment€by€the€insurer€of€a€loss,€it€becomes€the€real€party€in€interest€withÐ |*Ì%) Ðrespect€to€the€subrogation€claim€and€has€the€right€to€bring€suit€in€the€name€of€theÐ h+¸&* Ðinsured€or€in€its€own€name.€The€insurer€may€intervene€in€an€action€brought€by€theÐ ° Ðinsured€against€a€wrongdoer€and€assert€its€subrogation€claim€therein€but,€it€cannotÐ œì Ðbring€suit€against€the€wrongdoer€after€judgment€has€been€rendered€in€the€insured'sÐ ˆØ Ðaction.€In€short,€the€subrogation€claim€is€the€property€of€the€insurer€to€deal€with€asÐ tÄ Ðit€pleases€so€long€as€the€rights€of€others,€e.g.,€the€insured€or€the€wrongdoer,€are€notÐ `° Ðprejudiced.€ÐL œÐ Ð  ÐÌà8  àIt€follows€that€whether€or€not€an€attorney€is€entitled€to€collect€from€the€insurer€a€feeÐ $ t Ðwith€respect€to€a€subrogation€claim€depends€upon€whether€an€express€or€impliedÐ  ` Ðcontract€or€a€quasi€contractual€relation€exists€between€them.Ðü L Ð Ð  ÐÌòòTravelers€Ins.€Coóó,€541€S.W.2d€at€590€(citations€omitted).Ð Ô$  ÐÌà  àThere€is€no€evidence€in€the€record€before€us€of€a€contract,€express€or€implied,€between€theÐ ¬ü  Ðhospital€and€Mr.€Dalton.€€Because€Mr.€Dalton€represented€Ms.€Martino,€a€debtor€of€the€hospitalÐ ˜è  Ðwhich€was€prepared€to€take€necessary€action€against€her€to€collect€the€debt€owed,€it€would€beÐ „Ô  Ðinappropriate€to€assume€that€Mr.€Dalton€also€undertook€to€represent€the€hospitalððs€interests.€€In€anyÐ pÀ Ðevent,€the€hospital€was€not€a€subrogee€to€Ms.€Martinoððs€action€against€Mr.€Dyer.Ð \¬ ÐÔ#†X‘XXX‘Œe#ÔÌà@‹‹)ìàV.ˆÐ 4„ ÐÌà  àLike€òòquantum€meruitóó,€the€ð ðcommon€fund€doctrineðð€is€an€equitable€concept€designed€toÐ  \ Ðprevent€unjust€enrichment.€€Tennessee€courts€have€recognized€the€common€fund€doctrine€in€thoseÐ øH Ðcircumstances€where€more€than€one€party€and€counsel€have€contributed€to€securing€a€single€judgmentÐ ä4 Ðthat€inures€to€the€benefit€of€all€the€parties.€€In€such€situations,€the€common€fund€doctrine€may€beÐ Ð  Ðapplied€to€determine€the€allocation€of€fees€and€expenses.€€òòSee€PST€Vans,€Inc.€v.€Reedóó,€Nos.€03A01„Ð ¼  Ð9901„CV„00113€and€E1999€01963€COA€R3€CV,€1999€WL€1273517€at€*3€(Tenn.€Ct.€App.€Dec.€28,Ð ¨ø Ð1999)€(no€Tenn.€R.€App.€P.€11€application€filed).€€Essentially,€the€common€fund€doctrine€is€anÐ ”ä Ðexception€to€the€general€rule€that€attorneys€may€look€only€to€the€clients€with€whom€they€contract€forÐ €Ð Ðcompensation.€€It€provides€that€ð ða€private€plaintiff,€or€his€attorney,€whose€efforts€create,€discover,Ð l¼ Ðincrease€or€preserve€a€fund€to€which€others€also€have€a€claim€is€entitled€to€recover€from€the€fund€theÐ X ¨ Ðcosts€of€his€litigation,€including€attorneysðð€fees.ðð€€òòHobson€v.€First€State€Bank,€óó801€S.W.2d€807,€809Ð D!” Ð(Tenn.€Ct.€App.€1990)€(quoting€òòVincent€v.€Hughes€Air€West,€Inc.óó,€557€F.2d€759,€769€òòóó(9th€Cir.€1977)).Ð 0"€  ÐÌà  àOur€Supreme€Court€has€recognized€the€doctrine:Ð $X" ÐÌà8  àThere€are,€of€course,€many€situations€in€which€the€work€of€an€attorney€proves€usefulÐ à%0!$ Ðto€persons€other€than€his€own€client.€€The€normal€rule€in€such€cases€is€that€he€mustÐ Ì&"% Ðlook€only€to€his€client,€with€whom€he€has€contracted,€for€his€compensation,Ð ¸'#& Ðnotwithstanding€the€acceptance€of€benefits€by€others.€€But,€an€exception€to€this€ruleÐ ¤(ô#' Ðis€made€whenever€one€person,€having€assumed€the€risks€and€expense€of€litigation,€hasÐ )à$( Ðsucceeded€in€securing,€augmenting,€or€preserving€property€or€a€fund€of€money€inÐ |*Ì%) Ðwhich€other€people€are€entitled€to€share€in€common.€€In€that€event,€the€expenses€ofÐ h+¸&* Ðthe€action€are€borne€by€each€participant€according€to€his€interest.€The€fairest€and€mostÐ ° Ðefficient€means€of€distributing€these€costs€is€thought€to€be€to€make€them€a€chargeÐ œì Ðupon€the€fund€itself.€€This€device,€known€as€the€'fund€doctrine,'€was€invented€byÐ ˆØ Ðcourts€of€equity€to€prevent€passive€beneficiaries€of€the€fund€from€being€unjustlyÐ tÄ Ðenriched.€€It€is,€therefore,€never€applied€against€persons€who€have€employed€counselÐ `° Ðon€their€own€account€to€represent€their€interests.€€Thus,€the€right€to€employ€counselÐ L œ Ðof€one's€own€choosing€is€preserved.Ð8 ˆÐ Ð  ÐÌòòTravelers€Ins.€Co.óó,€541€S.W.2d€at€589„90€(citations€omitted).Ð  ` ÐÌà  àIn€òòTravelersóó,€the€court€implied,€without€specifically€holding,€that€the€common€fund€doctrineÐ è 8  Ðmay€apply€to€actions€involving€an€injured€party€and€the€insurer€subrogee,€on€the€basis€that€theÐ Ô$  Ðsubrogee€becomes€a€real€party€in€interest€in€an€action€against€the€party€causing€the€injury.€òò€HobsonÐ À  Ðv.€First€State€Bankóó€involved€payment€of€attorney€fees€in€a€class€action€lawsuit,€and€this€courtÐ ¬ü  Ðdetermined€that€the€attorneys€for€the€class€were€entitled€to€recover€their€fees€from€the€common€fundÐ ˜è  Ðor,€in€effect,€from€all€class€members,€including€those€represented€by€other€counsel.€€òòSee€Hobsonóó,€801Ð „Ô  ÐS.W.2d€at€812.€€Damages€recovered€in€a€class€action€on€behalf€of€a€class€of€plaintiffs€unquestionablyÐ pÀ Ðconstitute€a€ð ðcommon€fund.ðð€€Tennessee€courts€have€also€applied€the€common€fund€doctrine€toÐ \¬ Ðdamages€in€a€wrongful€death€action€where€more€than€one€party€has€a€statutorily„created€claim.€€òòSeeÐ H˜ ÐWheeler€v.€Burleyóó,€No.€01A01„9701„CV„00006,€1997€WL€528801€at€*4„*5€(Tenn.€Ct.€App.€Aug.Ð 4„ Ð27,€1997)€(perm.€app.€denied€Apr.€13,€1998);€òòIn€re€Estate€of€Stoutóó,€No.€01A01„9308„CH„00360,Ð  p Ð1994€WL€287765€at€*4€(Tenn.€Ct.€App.€June€29,€1994)€(no€Tenn.€R.€App.€P.€11€application€filed);Ð  \ ÐòòPST€Vans,€Inc.€v.€Reedóó,€1999€WL€1273517€at€*5;€òòÔ_ÔSpiveyÔ_Ô€v.€Andersonóó,òòÔ‡ôîUòXX‘Ôóó€€Ô#†X‘XòôîUò~#ÔNo.€02A01„9704„CV„00075,Ð øH Ð1997€WL€563199€at€*€5€(Tenn.€Ct.€App.€Sept.€9,€1997)€(no€Tenn.€R.€App.€P.€11€application€filed).Ð ä4 ÐÌà  àWe€are€unaware€of€any€other€situation€in€which€Tennessee€courts€have€applied€the€commonÐ ¼  Ðfund€doctrine.€€It€is€axiomatic€that€the€ð ðcommon€fund€doctrineðð€can€be€applied€only€where€aÐ ¨ø Ðð ðcommon€fundðð€exists.€€òòSee€Tennessee€Small€Schools€Ô_ÔSysÔ_Ô.€v.€Ô_ÔMcWherterÔ_Ôóó,€No.€01A01„9211„CH„Ð ”ä Ð00447,€1993€WL€295006€at€*6€(Tenn.€Ct.€App.€Aug.€4,€1993)€(perm.€app.€denied€Mar.€7,€1994)€(theÐ €Ð Ðð ðcommon€fundðð€doctrine€is€inapplicable€where€there€is€no€judicially€created€common€fund).€€ThereÐ l¼ Ðis€no€such€fund€in€this€situation€because€the€hospital€has€no€claim€against€a€third€party€who€may€haveÐ X ¨ Ðcaused€the€injuries€treated€by€the€hospital.€€Its€claim€is€against€its€debtor.Ð D!” ÐÌà  à€The€hospital€lien€statutes€make€it€clear€that€the€filing€of€a€lien€does€not€give€a€hospital€aÐ #l! Ðcause€of€action€against€an€alleged€tortfeasor:Ð $X" ÐÌà8  àThe€provisions€of€this€chapter€shall€not€be€construed€as€giving€any€hospital€anÐ à%0!$ Ðindependent€right€of€action€to€determine€liability€for€injuries€sustained€by€any€personÐ Ì&"% Ðcovered€herein€nor€shall€any€settlement€or€compromise€of€a€claim€entered€into€onÐ ¸'#& Ðbehalf€of€such€person€require€the€approval€of€the€hospital.Ф(ô#'Ð Ð  ÐÌTenn.€Code€Ann.€ðð€29„22„107(a).Ð |*Ì%) ÐÐ h+¸&* Ðà  àThe€common€fund€doctrine€is€not€applicable€to€this€case,€primarily€because€SRMC€and€Ms.Ð ° ÐMartino€do€not€have€equal€rights€to€share€in€the€settlement€funds.€€SRMC€is€a€creditor€who€mayÐ œì Ðcollect€from€Ms.€Martino€regardless€of€the€source€of€the€funds€she€uses€to€pay€her€hospital€bill.€€TheÐ ˆØ Ðsettlement€itself€belongs€to€Ms.€Martino.€€The€hospital€has€no€cause€of€action€against€Mr.€Dyer.€€TheÐ tÄ Ðproceeds€of€the€settlement€are€not€a€ð ðcommon€fundðð€because€the€hospital€and€Ms.€Martino€are€notÐ `° Ðentitled€to€share€in€the€settlement€in€common.Ð L œ ÐÌÌà@‹‹)ìàV.ˆÐ  ` ÐÌà  àAccordingly,€we€reverse€the€order€granting€Mr.€Daltonððs€request€for€a€òòpro€rataóó€share€ofÐ è 8  Ðattorney€fees€from€Sumner€Regional€Medical€Centerððs€hospital€lien€and€remand€the€case€to€the€trialÐ Ô$  Ðcourt€for€such€further€proceedings€as€may€be€required.Ð À  ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð pÀ Ðà  àà ` àà ¸ àà  àà h àà À àà  àPATRICIA€J.€COTTRELL,€JUDGEÐ \¬ Ð