What does your lawyer say about this? Sounds like he/she is trying to get the health insurer to waive its claim because you aren't made whole from the settlement. Getting the agreement to waive can take some time.
Most Milwaukee county judges order mediation be completed before you receive a trial date. The cost is usually split evenly. However, sometimes part of a settlement at mediation is that the insurance company pay the full mediation cost.
I'm very sorry to hear about your fiancee's injury. The statue of limitations is 3 years. I'd be happy to discuss whether the landlord can be held accountable for her injury. You can contact me at 414-212-0000.
If this is an uninsured motorist claim, the insurer will insist on obtaining the records itself. You do not want to sign a blank authorization. You can limit the authorization. You also only want them to obtain records from providers who have treated for injuries due to the accident. Why are you handling this on your own? How will you know how to respond to the ultimate question the insurance company is going to ask you - "how much is this worth?" There are plenty of pitfalls for you...
Lots of questions to be answered. Is this a full and final payment of the personal injury claim? Is it just a payment of medical payments benefits? Your friend should talk to an attorney.
PS you start a lawsuit when legal documents, a summons and complaint, are filed in county circuit court (In WI).