Boe v. Department of Human Services

844 A.2d 531, 367 N.J. Super. 572, 2004 N.J. Super. LEXIS 114
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 25, 2004
StatusPublished
Cited by1 cases

This text of 844 A.2d 531 (Boe v. Department of Human Services) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boe v. Department of Human Services, 844 A.2d 531, 367 N.J. Super. 572, 2004 N.J. Super. LEXIS 114 (N.J. Ct. App. 2004).

Opinion

The opinion of the court was delivered by

KESTIN, P.J.A.D.

Plaintiff, Harold G. Boe, filed a complaint seeking a judgment declaring: 1) that an institutional lien on a parcel of real property had been extinguished upon the death of Mary Boe (decedent), plaintiffs mother; and 2) that title in the premises was vested in plaintiff entirely free of defendant’s institutional lien by reason of plaintiffs joint ownership of the parcel with the right of survivor-ship. On cross-motions for summary judgment, the trial court dismissed the complaint, declared the lien to be valid, and held that the estate of the decedent was liable for the costs of the care and maintenance furnished her by a State institution. We affirm.

Before May 16, 1996, Mary Boe was the sole owner of the residential property at issue. On that date, she executed a deed transferring title in the property to herself and plaintiff “as joint tenants with rights of survivorship.” Also on that date, decedent and plaintiff executed a mortgage on the property securing a $10,808 loan.

[574]*574On September 20, 1996, the trial court entered a “temporary order for involuntary commitment,” on the basis of which decedent became a patient at the Senator Garrett W. Hagedom Gero-Psychiatrie Hospital (the hospital), a State institution, on October 1, 1996. She was seventy-six years of age at the time. Over the course of the next ten-and-a-half months, between October 18, 1996 and August 15,1997, five orders were entered continuing the placement.

On May 19, 1997, the hospital filed a lien claim, pursuant to N.J.S.A. 30:4-80.1, for the costs attributable to the care and maintenance furnished to decedent. The amount of the delinquent maintenance stated in the lien as of April 30, 1997 was $71,160.24. The specified rate of maintenance was $2,063.04 per week. By the time of decedent’s discharge from the hospital on August 19,1997, the amount of the lien was calculated at $82,048.23.

A medical summary stated decedent’s discharge diagnoses to be:

Dementia with delusions.
Mild hypercholesterolemia which we did not want to intervene and do anything considering her age.

A psychiatric discharge summary recited her discharge diagnoses as follows:

Axis I: Dementia of the Alzheimer’s type with delusions and behavioral disturbances
Axis II: No diagnosis
Axis III: Hypercholesterolemia
Axis IV: No. 4
Axis V: GAF:15-20

The reports characterized decedent as “non-ambulatory” and requiring “total nursing care.”

Decedent died on March 6, 2000. She was, at the time, a resident of the Perth Amboy Nursing Home (nursing home).

On July 13, 1999, counsel, on plaintiffs behalf, had sent a letter to the Bureau of Financial Standards and Procedures noting that “[a] recent title search indicates that there is an institutional lien [575]*575filed against [decedent] as a result of her confinement at the [hospital].” The letter described decedent’s limited resources: “her one-half interest in her home____[and h]er only source of income [from] Social Security ($900 a month) and a pension from her deceased husband ($417.95 a month).” Counsel enclosed a copy of the May 16, 1996 deed, noting decedent’s then current residence in the nursing home and plaintiffs residence in the property. The letter also referred to an application then pending in the Superior Court

to appoint Harold Boe as guardian over the person and financial affairs of his mother, Mary Boe. As neither Mary Boe or her son, Harold, have any assets to speak of, they intend to sell the house and for the most part use the proceeds for her support and maintenance.

Counsel’s letter went on to inquire:

Would the Stale of New Jersey consider releasing the lien on this real estate without monetary consideration? If so, would you kindly prepare the appropriate release and forward same to our office.
Alternatively, we ask that the amount of the lien be reduced to the lowest amount acceptable to the State of New Jersey. Upon sale of the residence we will apply the sale proceeds to pay off the agreed upon lien amount.

The State responded on August 11, 1999, in a letter from the Compromise Panel Chairperson and Chief, Bureau of Financial Standards and Procedures, Department of Human Services (Department). The letter noted that the total cost of decedent’s care and maintenance was $85,583.98. It stated that the Department would regard counsel’s proposal as a compromise offer; it described the procedures for effecting a compromise; and it referred to a “compromise offer fact sheet” that was enclosed for completion. Counsel was instructed also to prepare and submit “[a] separate written compromise offer, which includes the exact amount being offered in compromise, specific reasons for requesting a compromise ... and how an acceptance of the offer will benefit Ms. Boe.” The letter also sought information concerning the patient’s Medicaid eligibility.

In responding with the requested data on February 22, 2000, counsel stated that plaintiff and two of his brothers were residing in the home; and that, although the property’s assessed value was [576]*576$155,200, its market value was about $120,000, subject to the mortgage and to tax liens for the years 1996 through 1999. He asserted

that the enforcement of the [hospital] lien would create an extreme hardship for the destitute Boe brothers as well as for their sick and destitute mother. Given these circumstances we respectfully ask that the amount of the lien be waived, and that the lien be discharged. If your decision is otherwise, we ask that you set a minimal amount required to satisfy this lien.

A few weeks later, counsel advised the Department of decedent’s death on March 6, 2000. The Department responded that decedent’s passing

changes any position this Department may have held in connection with the compromise offer you submitted on her behalf.
Please be advised that the statutory obligation of the Department of Human Services to assess charges, lien assets and make recoveries is generally inflexible. The purpose of the compromise procedure is to mitigate against the possible harmful or counter-productive effects of Departmental actions against clients and former clients (i.e. the filing of a lien claim). It is Departmental policy that persons, or entities, other than the client or her financial dependents, not be allowed to benefit from the acceptance of a compromise offer. As our former client is deceased and as there are no financial dependents, considering this case for compromise is in direct conflict with the policies and standards set by this Department.
Furthermore, New Jersey Statutes establish the continuing liability of a patient’s estate, specifically N.J.S.A. 30:4-74, which states “A patient’s estate ... shall be liable for institutional support[.]” * * * Pursuant to the State’s institutional lien against Mary Boe, the State of New Jersey must be reimbursed from her estate up to the amount of her institutional debt balance of $85,583.98.

Counsel rejoined with a letter in which he stated:

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Related

Boe v. State
873 A.2d 500 (Supreme Court of New Jersey, 2005)

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Bluebook (online)
844 A.2d 531, 367 N.J. Super. 572, 2004 N.J. Super. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boe-v-department-of-human-services-njsuperctappdiv-2004.