Board of Social Welfare v. County of Los Angeles

162 P.2d 635, 27 Cal. 2d 90, 1945 Cal. LEXIS 220
California Supreme Court·Decided October 16, 1945·No. S. F. 17112·Published·Cited by 23 cases

Opinion

SCHAUER, J.

In this mandamus proceeding the State Board of Social Welfare seeks to compel respondents to comply with its orders to return to certain recipients of old age assistance various sums of money which respondent County of Los Angeles had demanded and secured from such recipients in repayment of assistance which the county claimed had been illegally obtained. The following three factual situations are presented:

1. Prior to December 1, 1941, one Fannie Vos received aid, pursuant to an award by the Board of Supervisors of Los Angeles County, in the sum of $40 a month; between January 1, 1942, and May 31, 1943, she was paid as aid from such county the total sum of $520. At that time a needy aged person was entitled to aid notwithstanding the possession of cash or other personal property up to $500 (Welf. & Inst. Code, § 2163) and real estate of an assessed net value up to *92 $3,000 (Welf. & Inst. Code, § 2164), but upon coming into possession of property in excess of such amounts was required to report such fact immediately to the board of supervisors (Welf. & Inst. Code, §2222).

During the month of December, 1941, the recipient had come into possession of the additional sum of $805.29 as the proceeds of the sale of certain real property, but (assertedly because of illness) she failed until some time during May, 1943, to inform the county of the receipt of such money. At that time she still had a balance of $550 on hand from such $805.29, of which the county board of supervisors demanded that she deliver to the county the sum of $520 in repayment of the aid she had received between January 1, 1942, and May 31, 1943. On July 29, 1943, Mrs. Vos, in partial compliance with such demand, repaid to the county the sum of $400, and on October 5, 1943, appealed to the State Board of Social Welfare from the order of the board of supervisors that she make such repayment. The welfare board, on December 17, 1943, determined that “As the appellant [Vos] was possessed of $305.29 in excess of the $500 permitted under the Welfare and Institutions Code at a time when she was receiving Old Age Security, this amount is collectible, but none in excess of this amount. The Board therefore orders the return to the appellant of $94.71.”

2. Prior to April 3, 1940, the county awarded to one Mary Prahl old age assistance in the sum of $40 a month. On April 30, 1940, she assigned to the county as security for repayment of aid theretofore received (as the result of a prior application and award), her beneficial interest in a second trust deed which then had a face value of $970.78 and a market value of something over $825.16. On October 13, 1942, the county had realized from payments on the trust deed sufficient funds to pay off the previously existing debt. It thereupon reassigned to Mary Prahl the trust deed, the face value of which had been reduced to $816.02 and the market value to $693.62. On November 30, 1942, the board of supervisors found that Mrs. Prahl was, and had been from May 1, 1940, to November 30, 1942, because of her ownership of such trust deed, ineligible for old age assistance payments and that she had illegally received such payments in the sum of $40 per month for a period of thirty-one months, or a total of $1,240. Aid to her was thereupon discontinued and was not restored until February 1, 1943, on which date she reassigned to the county, pursuant to its order, the trust deed mentioned hereinabove. *93 In February, 1944, the county sold the trust deed for $720.85; that sum, when added to other repayments received by the county from Mrs. Prahl, made a total of $840.85 which she had repaid to it on account of the $1,240 which it asserted she had illegally received as assistance. On October 4, 1943, Mrs. Prahl appealed to the state welfare board, and on March 23, 1944, that board determined that “As the trust deed and note were out of the possession of the appellant [Prahl] during the entire period of receipt of Old Age Security with the exception of November of 1942, and as the appellant had no use of this for her own support, it is the determination of the Board that the appellant could not be considered possessed of excess personal.property and that therefore the collection on the trust deed made by the county was erroneous. Of the $840.85 retained by the County, $800.85 is ordered returned to the appellant, the $40 to be retained by the county for repayment of aid paid for the month of November of 1942.”

3. Prior to November, 1940, one James L. Gilkerson received old age assistance from the County of Los Angeles in the sum of $40 a month, and from that date through May, 1941, he continued to receive assistance in the same monthly sum. However, during such seven-month period from November, 1940, through May, 1941, he owned and was in possession of personal property of a value between $500 and $531.30. In August, 1941, the county demanded that Gilkerson repay to it the sum of $280 as aid received by him during such seven-month period, and on August 19,1941, he made the repayment as demanded. On September 2, 1943, he appealed to the state welfare board in an effort to recover the $280 so repaid to the county; on November 19, 1943, the welfare board found that he had at all times acted in good faith and had made “no attempt to conceal from the county the true facts,” and determined that “appellant [Gilkerson] had no fraudulent intent, and that the money was collected by the county erroneously; and that in accordance with Section 2222.7 of the Welfare and Institutions Code, $248.70 [$280 less $31.30] should be returned to appellant. ...”

Section 2222.7 of the Welfare and Institutions Code, pursuant to which the welfare board ordered the above-described repayments to recipients of aid, became effective May 7, 1943 (operative July 1, 1943), and provides as follows; “Whenever the State Department of Social Welfare finds that moneys collected from recipients in repayment of aid granted . . . *94 have been collected erroneously, because of mistake of law or fact, refunds shall be made as provided in this section. . . . This section shall be applied retroactively, to require the refund of all repayments erroneously collected from recipients of aid within the two years immediately preceding its effective date. ...” It should be here noted that part of the repayments to the county in the three cases under consideration occurred within the two years immediately preceding July 1, 1943, and part of them subsequent to that date.

Respondents assert that although the above-quoted section allows the welfare board to order the refund of repayments erroneously collected within two years prior to the effective date of such section, the question as to whether or not a collection was erroneous must be measured by the law as it existed at the time the events occurred and the collection was made (citing State Commission in Lunacy v. Welch (1912), 20 Cal.App. 624 [129 P.

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Board of Social Welfare v. County of Los Angeles, 162 P.2d 635, 27 Cal. 2d 90, 1945 Cal. LEXIS 220 (Cal. 1945).

162 P.2d 635 (Board of Social Welfare v. County of Los Angeles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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