Department of Public Welfare v. Tyree

540 N.E.2d 18, 1989 Ind. LEXIS 411, 1989 WL 67982
CourtIndiana Supreme Court
DecidedJune 16, 1989
DocketNo. 63SO1-8906-CV-473
StatusPublished
Cited by2 cases

This text of 540 N.E.2d 18 (Department of Public Welfare v. Tyree) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Public Welfare v. Tyree, 540 N.E.2d 18, 1989 Ind. LEXIS 411, 1989 WL 67982 (Ind. 1989).

Opinions

PIVARNIK, Justice.

This cause comes to us on a petition to transfer from the First District Court of Appeals. Transfer is sought by the Estate of Linda K. Fithian, Deceased. The Court of Appeals summarized the facts as follows:

On February 9, 1984, Linda K. Fithian and her daughter, Jessica Lynn Fithian, were injured in an automobile accident caused by Lula J. Tyree. Linda K. Fithi an ultimately died as a result of her injuries. On September 16, 1985, Tyree and her insurer, Transamerica Insurance Company (Transamerica), filed a com[19]*19plaint seeking declaratory relief. The complaint averred that Tyree's automobile liability policy had limits for bodily injury or death of $25,000.00 per person and $50,000.00 per accident. The complaint also related that a settlement had been reached whereby Transamerica would pay Aldridge, who had been named guardian of Jessica and adminis-tratrix of the Estate, $50,000.00, to be divided evenly between Jessica and the Estate. In return Tyree and Trans-america would be released from all further claims. The prayer for relief asked the trial court to discharge Tyree and Transamerica from all liability upon making payment, require Aldridge to execute releases, and require the defendants to interplead and determine their respective rights to the settlement proceeds. Named as defendants were: Jessica Lynn Fithian; Aldridge, as both guardian of Jessica and administratrix of the Estate; Theodore C. Fithian, Linda's husband; DPW [Department of Public Welfare], which had paid for Linda's medical treatment; and several health-care providers. DPW was named as a defendant because it had filed a lien for $59,984.90, representing the amount DPW had paid for medical assistance on Linda Fithian's behalf. The Estate then filed a cross-claim against DPW and the health-care providers, alleging that none of the settlement proceeds were being recovered for medical, hospital, funeral, or burial expenses, but were for the support of Linda Fithian's two dependent children. The trial court ordered the settlement proceeds deposited in an interest-bearing account, and one-half of the funds were later paid to Jessica Fithian in settlement of her personal injury claim against Tyree and Transamerica. DPW did not object to this disbursement because it had not made any expenditures on Jessica Fithian's behalf.
Both DPW and the Estate moved for summary judgment. DPW claimed that its lien entitled it to all the funds in the account, and, because none of the proceeds could pass into the Estate until DPW's lien was satisfied, the statutes concerning claims against an estate were inapplicable. The Estate maintained that DPW's lien was unenforceable because Linda Fithian was survived by two dependent children and also because DPW had failed to deny the Estate's allegation in its cross-claim that none of the settlement proceeds were being sought for medical, hospital, funeral, or burial expenses. Following a hearing on the motions, the trial court granted summary judgment in favor of the Estate, prompt ing DPW to institute this appeal.

Department of Public Welfare v. Tyree, et al. (1987), Ind. App., 512 N.E.2d 1114, 1115-16.

The Court of Appeals reversed, and directed the trial court to enter judgment for DPW. It held that the personal representative was a mere trustee for those entitled to the damages and that she had an affirmative duty under the wrongful death statute to first pay the medical and hospital expenses. Appellee Maxine Brown Al dridge, as administratrix of the Estate, now seeks transfer. We grant transfer and order the opinion of the Court of Appeals vacated for the following reasons.

Although the Court of Appeals discusses the issues herein as a claim under the wrongful death statute, Ind.Code § 34-1-1-2, this action did not arise as a wrongful death claim. Transamerica Insurance Company, insurer of Plaintiff Lula J. Tyree, instituted this action as a "complaint for interpleader and declaratory relief." Transamerica had determined Tyree was at fault in the accident but full coverage of her insurance amounted to $50,-000.00, an insufficient amount to cover the damages to Jessica Lynn Fithian, a minor daughter of Linda, and damages arising from the death of Linda K. Fithian, a twenty-eight (28) year-old woman with minor children surviving her. Transamerica claimed it would subject itself to multiple liability claims should it choose to pay the $50,000.00 to any of the named defendants, so it offered to pay the full $50,000.00 into court, relieving Transamerica of all further responsibility and requiring the defendants to interplead and settle between them[20]*20selves their rights to money due and owing under a settlement agreement providing for such arrangements. Jessica Lynn Fit hian received serious injuries in the accident and all parties agreed she was entitled to $25,000.00 of the settlement amount and the same was paid to her. The issues now presented arise from the disbursement of the $25,000.00 available for the death of Linda K. Fithian.

Aldridge, as personal representative of Linda K. Fithian, deceased, filed an Answer and a Cross-Complaint against all other defendants. Although the Cross-Complaint was not entitled an action for wrongful death, Aldridge alleged that Linda Fit-hian's minor children, Jessica Lynn Fithian and Stephanie Ann Ardizzone, were entitled to the money because of the "wrongful death" of their mother, Linda Fithian. We, of necessity, recognize the pleading not for what its title infers but for what relief it seeks. Aldridge's paragraphs of answer and cross-complaint sometimes claim the money should go directly to the minor children and at other times request the money be paid into the estate subject only to the lawful claims of ereditors. The only authority in the law for one to seek and collect damages for the wrongful death of a decedent is found in the wrongful death statute, Ind.Code § 84-1-1-2, which provides for the personal representative to bring the action for damages as trustee for those entitled to them. It would seem proper, therefore, to consider the distribution of these funds pursuant to the provisions of that statute. We must also consider, however, the position of DPW, who had filed a lien for $59,984.90, representing the amount DPW had paid for medical assistance on Linda Fithian's behalf for health care provided for the very serious injuries resulting in her death. DPW filed an Answer claiming it was entitled to the full amount of $25,000.00 as reimbursement from liable third parties pursuant to Ind. Code § 12-1-7-24.6.

In her Cross-Complaint, Aldridge claimed the health care providers, Deaconess Hospital, Inc., Gibson General Hospital, St. Joseph Hospital and Huntingburg Convalescent Center, had no claim to any of the funds since DPW paid for their total services rendered. She claimed Linda Fit hian's husband, Theodore C. Fithian, was not entitled to take any part of decedent's estate since he had abandoned her and the children long before any of these incidents occurred. She claimed DPW had no lien or any right to these funds pursuant to Ind. Code §§ 12-1-7-24.6

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fitch v. Select Products Co.
134 Cal. Rptr. 2d 120 (California Court of Appeal, 2003)
Elkhart County Department of Public Welfare v. Estate of Cripe
660 N.E.2d 1062 (Indiana Court of Appeals, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
540 N.E.2d 18, 1989 Ind. LEXIS 411, 1989 WL 67982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-public-welfare-v-tyree-ind-1989.