State Department of Social Welfare v. Newman
State Department of Social Welfare v. Newman
Opinion of the Court
The case before us involves a controversy between the department of social welfare of Iosco county, Michigan, hereinafter termed the county, and the State of Michigan. It has to do with the assets of Bhoda Ann Goodwin, deceased, and their division between county and State.
Mrs. Goodwin, in her declining years, was in what is termed “unfortunate financial circumstances.” For 10 years prior to her death she had received old-age assistance. In October of 1955 (she died early in January of 1959) she required hospitalization. She was admitted in a semiconscious condition and remained hospitalized for about a month. On November 30, 1955, the department of social welfare of the county took (and later recorded) a real-estate mortgage on her home, to “secure the repayment of $100, more or less, according to hospital bills.”
Mrs. Goodwin’s estate consisted entirely of her home, “which was of negligible worth.” The State, with its claim for old-age assistance in the amount of some $8,000, has come in conflict with the county, having a claim of approximately $400. The county claims priority, relying on the lien of its mortgage.
The problem is entirely statutory and solution must be found within the statutory framework as it existed at the time of the creation of the lien. The county points in justification to a section of PA 1915, No 267, as amended, which, it argues, specifically grants to it the authority to enter into agreements for reimbursement from patients. The section upon which reliance is placed reads in part as follows;
“Said department [the county department of social welfare] shall enter into an agreement for the use and benefit of the county liable, signed by the parties benefited under this act, or a legally responsible relative, or guardian, for reimbursement of the expenses incurred by said counties in furnishing-such medical care and treatment. The husband, wife, father, mother and children of any such indigent adult person, being of sufficient ability, shall be jointly and severally liable to the said county for the reimbursement of the expenses incurred by said county in furnishing such medical care and treatment; and such liability may be enforced in an action at law, in any court having jurisdiction of the parties, commenced and maintained in the name of the said county.” (Bracketed material added.)1
The essence of the position of the county, then, is-that there was a mandatory provision that it enter into an agreement for reimbursement and that, as an incident to such an agreement, it might take-security. The taking of a mortgage to secure the-payment of a debt is, of course, a commonplace, the-
The State’s disputation thereof is not impressive.. It points to section 77 of the social welfare act
The action of the county in securing its agreement was not offensive to statute, and the lien, as the lower court held, is valid and enforceable. The order below is affirmed. No costs, a public question.
CL 1943, § 404.101 (Stat Ana 1900 Rev § 16.281).
Ginsberg v. Capitol City Wrecking Co., 300 Mich 712, 717.
CLS 1956, § 400.77 (Stat Ann 1960 Rev § 16.477).
CL 1948, § 400.34a (Stat Ann 1960 Rev § 16.434 [1]).
CLS 1956, § 400.60 (Stat Ann 1960 Rev § 16.460).
CLS 1956, § 400.26 (Stat Ann 1960 Rev § 16.426).
CLS 1956 § 708.10 (Stat Ann 1959 Cum Supp § 27.3178 [420]).
Reference
- Full Case Name
- In re GOODWIN ESTATE. STATE DEPARTMENT OF SOCIAL WELFARE v. NEWMAN
- Cited By
- 1 case
- Status
- Published