Fields v. Colorado State Department of Public Welfare

437 P.2d 538, 165 Colo. 118, 1968 Colo. LEXIS 762
CourtSupreme Court of Colorado
DecidedFebruary 19, 1968
DocketNo. 21573
StatusPublished

This text of 437 P.2d 538 (Fields v. Colorado State Department of Public Welfare) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fields v. Colorado State Department of Public Welfare, 437 P.2d 538, 165 Colo. 118, 1968 Colo. LEXIS 762 (Colo. 1968).

Opinion

Mr. Justice McWilliams

delivered the opinion of the Court.

In their complaint W. G. Fields and Mabel Fields, hereinafter referred to as the plaintiffs, asserted two claims for relief against the Colorado State Department of Public Welfare and the Colorado State Board of Public Welfare, which agency and Board will hereinafter be referred to as the Department and the Board respectively, or collectively as simply the defendants.

In the first claim for relief the plaintiffs alleged that they were the owners and administrators of the Fields Nursing Home and in this claim they complained about certain action of the Board occurring on May 8, 1964 whereby the plaintiffs were “eliminated from those nursing homes authorized to receive nursing home vendor payments for the care of welfare department public assistance recipients.” More specifically, the plaintiffs averred that the evidence adduced at the hearing before the hearings office did not support the Board’s ultimate finding that the recipients of public assistance in the Fields Nursing Home had been “inhumanely treated” or the further finding that there had been a falsification of records submitted for medical care payments by the Nursing Home. Hence, according to the plaintiffs, the Board had abused its discretion by arbitrary and capricious action. The first claim for relief, therefore, is essentially one seeking judicial review of an administrative decision, namely a ruling by the Board that as of May 8, 1964 the plaintiffs were to be cut off from all nursing home vendor payments from the medical care fund.

The second claim for relief is essentially one in mandamus and for the recovery of money allegedly due the plaintiffs by the Department. In this second claim the plaintiffs alleged that the Fields Nursing Home was [121]*121entitled to a so-called group IV rating through March 20, 1964 and a group III rating beginning as of April 20, 1964. However, according to the allegations in the second claim, the Department beginning November 20, 1963 rated the Fields Nursing Home as a group I nursing home, and that as a result of this reduced rating from November 20, 1963 till April 20, 1964 the Department failed to pay the plaintiffs the amount of money to which they were entitled for the nursing home services which they had rendered welfare department patients. Accordingly, as concerns their second claim, the plaintiffs prayed that the Department be ordered to “reclassify” the Fields Nursing Home to its “proper” group rating and for the Department to also pay the plaintiffs the amount of money which they should have received from the period of time from November 20, 1963 till April 20, 1964 had they been assigned, as allegedly they should have been, a group IV rating.

By answer the defendants generally denied the allegations of the complaint, as such have been summarized above. Also, the defendants tendered the record as theretofore made before the Board.

Thereafter by appropriate order of court this matter came on for trial on the “first cause of action only.” In its ultimate ruling on the matter the trial court first denied the plaintiffs’ oral motion to amend the caption of the case to include Fields, Inc., and to amend the complaint so as to show Fields, Inc. as the owner of the nursing home and W. G. and Mabel Fields as the administrators thereof. Then the trial court proceeded to affirm the decision of the Board and accordingly dismissed, not just the first claim, but the entire complaint. The trial court additionally held that the plaintiffs had no capacity to maintain the action and ruled that the complaint in toto should be dismissed for that reason too.

The plaintiffs thereafter again filed a motion, this time in written form, seeking leave of court to file an amended complaint wherein Fields, Inc., a corporation, [122]*122would, be added as a party plaintiff. In this motion it was alleged that the nursing home in question was in fact owned by Fields, Inc., a Colorado Corporation, with W. G. Fields and Mabel Fields each owning one-half of the outstanding and issued stock.

The defendants then filed a motion in which they “stipulated” that Fields, Inc. be made an additional party plaintiff, on the condition that in such event they would then be permitted to file a counterclaim for alleged overpayments to Fields, Inc.

However, the trial court denied plaintiffs’ motion to file an amended complaint adding Fields, Inc. as an additional party plaintiff and then denied the defendants’ motion for leave to file a counterclaim. Also, the trial court denied plaintiffs’ motion for a new trial. A supplemental motion for a new trial pointed out that the judgment of dismissal was in any event too broad, as the second claim was by specific order of court not even involved in the earlier proceeding which by order of court was limited to a consideration of the first claim only. This motion was denied. By writ of error the plaintiffs now seek reversal of the judgment dismissing their complaint.

Under the circumstances outlined above the trial court erred in dismissing the entire complaint. By agreement of the parties, confirmed by an express order of court, the trial of this matter was limited to the first claim of the complaint. In this setting, then, the second claim was not even before the trial court, and it was of course error to enter a judgment which was so broad as to include dismissal of the second claim. This part of the judgment must therefore be reversed.

However, that portion of the judgment of the trial court dismissing the first claim of the complaint is under the circumstances proper and should be affirmed. The trial court, as we understand it, dismissed the first claim on two grounds: (1) that the decision of the board was correct and should therefore be affirmed; or in the [123]*123alternative, (2) that the plaintiffs as nursing service vendors did not have standing or capacity to maintain the action. We shall now consider these two points in reverse order.

The defendants argue that the medical care payments provided for in the Colo, const. Art. XXIV, § 7(c) and by C.R.S. 1963, 101-1-1, et seq. are but a part of the total pension given an individual old age pensioner. Ergo, it is argued, this is strictly a matter between the individual pensioner and the Department and one in which the plaintiffs as operators of a nursing home where pensioners reside have no interest at all. Furthermore, according to the argument of the defendants, the plaintiffs are not “aggrieved persons adversely affected by the agency action,” as that phrase is used in the administrative code, and therefore they have no standing to seek judicial review of the Board’s decision cutting them off from all medical care payments. C.R.S. 1963, 3-16-5.

With this general line of argument we simply do not agree. From the record before us it is clear that for some time prior to May 8, 1964 the plaintiffs had been rendering nursing services to old age pensioners and the defendants had been making medical care payments on behalf of the pensioners directly to the plaintiffs. However, over a period of many months complaints regarding the operation of this home had been received by the Department. Accordingly, the Board determined that a full-scale hearing should be held in order to look into the entire matter. To facilitate the matter the Board directed that one of its “hearing officers” should conduct the actual hearing.

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Bluebook (online)
437 P.2d 538, 165 Colo. 118, 1968 Colo. LEXIS 762, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fields-v-colorado-state-department-of-public-welfare-colo-1968.