Gallagher v. Department of Social Services

180 N.W.2d 477, 24 Mich. App. 558, 1970 Mich. App. LEXIS 1751
CourtMichigan Court of Appeals
DecidedJune 24, 1970
DocketDocket 7,113
StatusPublished
Cited by4 cases

This text of 180 N.W.2d 477 (Gallagher v. Department of Social Services) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gallagher v. Department of Social Services, 180 N.W.2d 477, 24 Mich. App. 558, 1970 Mich. App. LEXIS 1751 (Mich. Ct. App. 1970).

Opinions

Bronson, J.

The issue presented is whether child support arrearage payments are the property of the mother for the purpose of determining eligibility of aid to the disabled.

The department of social services terminated plaintiff Clotilde Gallagher’s aid to disabled grant [560]*560because she was in possession of personal property in excess of the statutory maximum of $750. The department based its decision on the ground that child support arrearages paid under the uniform reciprocal enforcement of support act to a mother who was receiving aid to the disabled assistance was the property of the mother.

Plaintiff, Clotilde Gallagher, a resident of North-ville, Michigan, has been a recipient of public assistance from the State of Michigan since 1964, when in December she established eligibility for aid to dependent children. At that time, she was maintaining a home for her daughter, Anne, then aged 11. In March of 1965, plaintiff was found eligible for public assistance under the aid to the disabled program. In September of 1965, the aid to dependent children case was closed, there being no further need for assistance under that program for the reason that Anne was attending St. Joseph’s Academy at Adrian, Michigan, and her expenses were met from private sources.

Plaintiff is severely handicapped, having had polio, which limits her mobility and demands the use of a crutch. She also suffers from rheumatoid arthritis and from heart complications. The plaintiff has been in and out of the hospital continually since she began receiving aid to the disabled. There is no question of her eligibility for this categorical assistance program. The only question as to her eligibility is whether she possessed personal property above the statutory maximum when she was terminated in August of 1967. The only period when the plaintiff did not receive aid to the disabled assistance was during the period in issue in this case, that is, from September, 1967, through April, 1968.

The plaintiff was abandoned by her husband, who left for Puerto Rico in the spring of 1964. A divorce [561]*561was obtained in the Wayne County Circuit Court, and a court order for both alimony and child support was entered on July 19, 1965. On January 19, 1965, an order for child support for Anne in the amount of $200 was entered in the general court of justice for the commonwealth of Puerto Rico. Amounts were originally set in the latter order for $200 per month, which was increased to $225 per month on August 24, 1965, to cover a large arrearage.

The termination of plaintiff from aid to the disabled in late August of 1967 arose out of an investigation by a caseworker for the department of social services on July 3, 1967. The caseworker had received from two or three banks reports indicating over $5,000 in checking and savings accounts, and in a time savings certificate. A representative of the department called the plaintiff on the telephone and informed her that she would be terminated by the next check, and the letter of termination was sent on August 29, 1967. Although an investigation continued, no attempt was made to communicate with the plaintiff nor to ask her assistance in order to clarify the matter. Before the hearing, the plaintiff was not given an opportunity to explain the source of ownership of the funds, nor given the opportunity to establish her continued need. On October 21, 1967, the plaintiff’s attorney wrote to the defendant requesting a hearing. A hearing was held on November 9 of 1967.

At the hearing several accounts were indicated. These accounts totaled $5,105.22. $786.45 of this amount was held in a special checking account in plaintiff’s name. The referee found that $395 in this account was Anne’s money. Its source was gifts from a friend. The money was placed in the account so that the plaintiff could expend the money for [562]*562Anne’s educational needs. The remaining $391.45 was found to he the property of the plaintiff, and this she does not dispute. Ten dollars, apparently plaintiff’s money, was in another account.

$308.77 was held in a savings account in the joint names of the plaintiff and Anne. Monies deposited in this account had been used solely for Anne’s school expenses. The referee found that the $308.77 represented personal savings of Anne and was not the property of the plaintiff.

$4,000 was in a time savings certificate in the joint names of the plaintiff and Anne. $2,756.45' of this amount came from bequests turned over to the plaintiff to be used for Anne’s education and $325.37 came from Anne’s personal savings. The balance of $918.18 consisted of the two child support arrearage payments of $474.18 and $444. The plaintiff testified that the entire amount on deposit in this savings certificate was being held to be used solely for Anne’s education expense. The referee found that the two child support deposits were “not Anne’s property, but income to Mrs. Gallagher, and as such, now set aside and converted to a bank deposit, must be considered available property to Mrs. Gallagher.”

The $444 consisted of four checks sent by Mr. Gallagher pursuant to the uniform reciprocal support enforcement act to the friend of the court. The cheeks represented accumulated child support payments to cover arrearages. As indicated in the letters from the child welfare worker, most of the child support payments sent by Mr. Gallagher were in the amount of $111 while the uniform reciprocal support enforcement act order requires payments of $255 per month.

The $474.18 represents the amount of a bequest from the estate of an uncle to Anne’s father. Pursuant to a court order issued by the probate court, [563]*563the bequest, while it was still part of the estate funds, was made payable to the friend of the court, in order to apply on past child support arrearages.

There is nothing in the record to indicate that the plaintiff accepted any public assistance or direct relief for Anne since the 1965 termination, although Anne might be eligible.

Summarizing, the referee found that $391.45 in the special checking account was the plaintiff’s property, and this is not disputed; and that the two child support arrearage payments of $474.18 and $444 were also plaintiff’s property, and this is disputed.

Anne was enrolled in St. Joseph’s Academy in Adrian, Michigan, on the advice of Hawthorne Center where she was consulting. After Anne entered St. Joseph’s Academy, her expenses were largely covered by private sources and gifts and from Anne’s earnings.

While she was in the academy, Anne returned home weekends and her mother, the plaintiff, maintained a home purchased by her husband, including the making of mortgage payments. Some money was paid for her support from plaintiff’s special checking account, but it does not appear whether the amount so paid represented expenditures by the plaintiff in excess of those for which she had received support money from Anne’s father. In any event, there is no evidence that any particular portion of the two arrearage payments of $474.18 and $444 were applicable to expenditures by the plaintiff for Anne’s support in excess of other support payments received from Anne’s father.

On December 20, 1967, the director of the department of social services issued his decision upholding the county welfare department in their cancellation of the grant because, “as of the date of closing you own personal property in excess of the maximum of [564]

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Gallagher v. Department of Social Services
180 N.W.2d 477 (Michigan Court of Appeals, 1970)

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Bluebook (online)
180 N.W.2d 477, 24 Mich. App. 558, 1970 Mich. App. LEXIS 1751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gallagher-v-department-of-social-services-michctapp-1970.