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NORTH CAROLINA STATUTES AND CODES

§ 44-50. Receiving person charged with duty of retaining funds for purpose stated; evidence; attorney's fees; charges.

§ 44‑50.  Receivingperson charged with duty of retaining funds for purpose stated; evidence;attorney's fees; charges.

A lien as provided under G.S.44‑49 shall also attach upon all funds paid to any person in compensationfor or settlement of the injuries, whether in litigation or otherwise. If anattorney represents the injured person, the lien is perfected as provided underG.S. 44‑49. Before their disbursement, any person that receives thosefunds shall retain out of any recovery or any compensation so received asufficient amount to pay the just and bona fide claims for any drugs, medicalsupplies, ambulance services, services rendered by any physician, dentist,nurse, or hospital, or hospital attention or services, after having receivednotice of those claims. Evidence as to the amount of the charges shall becompetent in the trial of the action. Nothing in this section or in G.S. 44‑49shall be construed so as to interfere with any amount due for attorney'sservices. The lien provided for shall in no case, exclusive of attorneys' fees,exceed fifty percent (50%) of the amount of damages recovered. Except asprovided in G.S. 44‑51, a client's instructions for the disbursement ofsettlement or judgment proceeds are not binding on the disbursing attorney tothe extent that the instructions conflict with the requirements of thisArticle. (1935,c. 121, s. 2; 1959, c. 800, s. 2; 1969, c. 450, s. 2; 1995 (Reg. Sess., 1996),c. 674, s. 3; 2001‑377, s. 2.)

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