One of the unusual components of the Montana Workers’ Compensation system is the Lockhart lien that exists against medical benefits to be paid to medical providers.  The basis for Lockhart liens is a decision by the Montana Supreme Court in Lockhart v. New Hampshire Ins. Co., et al, 295 Mont 4677, 984 P.2d 744 (1999).  In that case, the Supreme Court held that an attorney representing an injured worker in a workers’ compensation insurance claim has a lien for any medical benefit that the attorney obtains for the injured worker.  The lien can be in place for all medical benefits on a claim if the attorney was successful in getting the insurer to accept a previously denied claim or the lien can exist for a specific benefit such as a surgery if the attorney gets the insurer to cover the previously denied surgery.  The lien amount will be 20% of the fee schedule amount payable unless the dispute was resolved by the Workers’ Compensation Court or Montana Supreme Court; in which case the attorney lien will be 25% of the fee schedule amount.

Lockhart Decision