AHCA v. Estate of Johnson

743 So. 2d 83
CourtDistrict Court of Appeal of Florida
DecidedSeptember 8, 1999
Docket98-963
StatusPublished
Cited by10 cases

This text of 743 So. 2d 83 (AHCA v. Estate of Johnson) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AHCA v. Estate of Johnson, 743 So. 2d 83 (Fla. Ct. App. 1999).

Opinion

743 So.2d 83 (1999)

AGENCY FOR HEALTH CARE ADMINISTRATION, Appellant,
v.
In re ESTATE OF Kevin JOHNSON a/k/a Robert Watson, Appellee.

No. 98-963.

District Court of Appeal of Florida, Third District.

September 8, 1999.
Rehearing Denied November 22, 1999.

Moses E. Williams (Tallahassee), for appellant.

Barbara Green, Miami, for appellee.

Before NESBITT, GODERICH, and GREEN, JJ.

GREEN, J.

The Agency for Health Care Administration ("AHCA") appeals an order of the probate court setting aside an order granting enforcement of its lien against the estate of Kevin Johnson a/k/a Robert Watson ("estate") pursuant to section 733.702, Florida Statute (1991). Although AHCA's verified claim for reimbursement of Medicaid expenditures advanced to the decedent was initially filed with the clerk of the court pursuant to the "Medicaid Third-Party Liability Act" ("FTPLA"), section 409.910, Florida Statute (1991), on December *84 21, 1992, and prior to the opening of the estate, we conclude that it was nevertheless a timely creditor's claim also for purposes of section 733.702. We therefore reverse the order under review.

I

In October 1989, the decedent, Kevin Johnson, was hit by an automobile while enrolled in a Dade County after-school program. Kevin sustained severe spinal cord injuries and was treated for approximately twenty-two months at Jackson Memorial Hospital ("JMH"). He was then placed in a personal care facility where he later died on February 18, 1994. During his hospital stay, JMH applied for and received Medicaid payments for medical assistance rendered to Kevin from October 1989 until October 1993. Joanne Adside, Kevin's mother and guardian, filed suit against the Dade County School Board for negligence. This suit was subsequently settled for approximately 2.2 million dollars.

On December 21, 1992, prior to Kevin's death and the opening of the estate, AHCA filed and recorded its initial verified claim of lien totaling $488,442.38 with the clerk of court in Dade County pursuant to section 409.910, Florida Statutes.[1] AHCA's verified substituted claim of lien in the amount of $617,227.94 was subsequently filed and recorded on November 3, 1993. Neither of these claims bears any certificate of service denoting personal service to anyone. Pursuant to section 409.910(6)(c)3,[2] however, the mere filing of such claims with the clerk of court is sufficient to provide all persons with notice of these claims.

When Kevin died in 1994 and his estate went into probate, AHCA filed a formal caveat by creditor in the probate division requesting the clerk to provide it with notice of the probate matters pertaining to the decedent's estate. On May 12, 1994, Kevin's mother (Adside) was appointed personal representative of the estate. Letters of administration were issued to her on August 9, 1994, for her to administer the estate and pay the debts of the decedent. On August 11, 1994, the notice of administration was filed and published in a local newspaper specifically directing all creditors and persons having claims or demands against the decedent's estate to file their claims within three months of the date of the publication of the notice or have their claims forever barred pursuant to section 733.702. Specifically, this statute provides in relevant part that:

733.702 Limitations on presentation of claims.—
(1) If not barred by § 733.710, no claim or demand against the decedent's estate that arose before the death of the decedent, including claims of the state and any of its subdivisions, whether due or not, direct or contingent, or liquidated or unliquidated; no claim for funeral or burial expenses; no claim for personal property in the possession of the personal representative; and no claim for damages, including, but not limited to, an action founded on fraud or another wrongful act or omission of the decedent, is binding on the estate, on the *85 personal representative, or on any beneficiary unless filed within the later of 3 months after the time of the first publication of the notice of administration or, as to any creditor required to be served with a copy of the notice of administration, 30 days after the date of service of such copy of the notice on the creditor, even though the personal representative has recognized the claim or demand by paying a part of it or interest on it or otherwise....
* * * * * *
(3) Any claim not timely filed as provided in this section is barred even though no objection to the claim is filed on the grounds of timeliness or otherwise unless the court extends the time in which the claim may be filed. Such an extension may be granted only upon grounds of fraud, estoppel, or insufficient notice of the claims period. No independent action or declaratory action may be brought upon a claim which was not timely filed unless such an extension has been granted. If the personal representative or any other interested person serves on the creditor a notice to file a petition for an extension or be forever barred, the creditor shall be limited to a period of 30 days from the date of service of the notice in which to file a petition for extension.

A copy of this notice was sent by the clerk of court to AHCA on August 11, 1994, pursuant to its formal caveat of creditor. Despite this notice of administration, AHCA did not file an additional creditor's claim pursuant to section 733.702. Instead, some ten months later, AHCA filed a motion for enforcement of lien and substituted claim of lien totaling $697,356.89 in the probate proceeding on July 5, 1995. Thereafter, a hearing was held on August 25, 1995, on AHCA's motion for enforcement of lien before then probate Judge Robert H. Newman. Although provided notice of this hearing, the estate's counsel arrived late and after the court had orally granted AHCA's motion. The estate filed its motion for rehearing on September 13, 1995, three days prior to the court's filing of its written order granting the enforcement of AHCA's lien. In this order, Adside, as the personal representative, was directed to disburse $697,356.89 to AHCA within ten days.

Thereafter, the issue of AHCA's claim and the estate's motion for rehearing basically remained dormant during the pendency of JMH's independent litigation with the school board and Adside and the resulting appeal to this court. See Public Health Trust of Dade County, Florida v. Dade County Sch. Bd., 693 So.2d 562 (Fla. 3d DCA 1996). In July of 1997, AHCA initiated proceedings to have Adside held in contempt of court for her failure to pay the $697,356 .89 in accordance with the court's September 14, 1996 order. By this time, Adside and the estate had secured new counsel who, on September 5, 1997, filed a motion to set aside the order granting enforcement of lien.

In an order dated March 23, 1998, the successor probate judge below set aside the order granting enforcement of AHCA's lien and concluded that AHCA had never filed a timely lien pursuant to section 733.702; therefore, it was forever barred from recouping any payment from the estate. This appeal followed. AHCA argues that the trial court erred because section 733.702 is a statute of limitations and thus, an affirmative defense which has been specifically superseded or abrogated by the Florida Legislature in section 409.910. AHCA further asserts that the estate's motion to set aside the order enforcing lien filed two years after the filing of the order granting enforcement of lien was untimely and the court below lacked jurisdiction to entertain the same.

II

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Bluebook (online)
743 So. 2d 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ahca-v-estate-of-johnson-fladistctapp-1999.