Guardianship Estate of Keffeler v. STATE, DSHS

88 P.3d 949
CourtWashington Supreme Court
DecidedApril 29, 2004
Docket67680-1
StatusPublished
Cited by12 cases

This text of 88 P.3d 949 (Guardianship Estate of Keffeler v. STATE, DSHS) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guardianship Estate of Keffeler v. STATE, DSHS, 88 P.3d 949 (Wash. 2004).

Opinion

88 P.3d 949 (2004)
151 Wash.2d 331

GUARDIANSHIP ESTATE OF Danny KEFFELER, by Wanda PIERCE, Guardian, and other persons similarly situated, Respondents,
v.
STATE of Washington, Department of Social and Health Services; Lyle Quasim, Director of the Department of Social and Health Services; and Michael R. Hobbs, Program Manager for the Department of Social and Health Services, Appellants.

No. 67680-1.

Supreme Court of Washington, En Banc.

Argued October 30, 2003.
Decided April 29, 2004.

*950 Christine O. Gregoire, Attorney General, Debra Casparian, Asst., Olympia, WA, Lawrence Lockwood, Asst., Lacey, WA, William Collins, Asst., Olympia, WA, for Appellants.

Rodney Reinbold, Okanogan, WA, Richard B. Price, Omak, WA, for Respondents.

Eugene A. Studer, Assistant United States Attorney, Tacoma, WA, Deborah Kant, William Kanter, Colette Matzzie, and Peter D. Ke Bler, of the Department of Justice, Washington, DC, for Amicus Curiae (Commissioner of the U.S. Social Security Administration).

OWENS, J.

The representative class plaintiff, Keffeler, argues that the State violated the equal protection clause of the fourteenth amendment to the United States Constitution by misusing funds and refusing to exercise discretion in social security fund disbursement, causing foster children with the State as a representative payee to be treated differently from children with a private representative payee. Keffeler further argues that the State of Washington violated the due process clause of the Fourteenth Amendment by refusing to provide appropriate notice to children and their guardians before the State was chosen as a representative payee. We find that children with a state representative payee are not treated differently from children with a private representative payee and that prior federal notice sent to guardians fulfills procedural due process. Therefore, we reverse the trial court on the constitutional issues and hold that the State has not violated the equal protection or procedural due process *951 requirements of the Fourteenth Amendment. Further, if Keffeler has concerns about the misuse of funds, he should direct his claims to the Social Security Administration (Administration).

FACTS

Keffeler brought a class action suit in Okanogan County Superior Court challenging the State's use of foster children's social security benefits. Keffeler based his claims on constitutional and statutory violations. The court granted Keffeler summary judgment based on the State's violation of 42 U.S.C. § 407. The court also noted that the State violated procedural due process by not sufficiently notifying children and their guardians prior to appointment of the State as representative payee. Mem. Op., Clerk's Papers (CP) at 628.[1] This court affirmed the trial court on the statutory basis and therefore did not address Keffeler's constitutional claims. Guardianship Estate of Keffeler v. Dep't of Soc. & Health Servs., 145 Wash.2d 1, 4, 32 P.3d 267 (2001) (Keffeler I), overruled by Wash. State Dep't of Soc. & Health Servs. v. Guardianship Estate of Keffeler, 537 U.S. 371, 381, 123 S.Ct. 1017, 154 L.Ed.2d 972 (2003) (Keffeler II). The United States Supreme Court reversed our decision and held that the State's use of benefits to reimburse itself for foster care was not a violation of 42 U.S.C. § 407. Keffeler II, 537 U.S. at 375, 392, 123 S.Ct. 1017. Because the United States Supreme Court decided the case on a statutory basis, it did not address the constitutional claims. A motion to resume jurisdiction over the constitutional issues in the case was granted on May 29, 2003. We now review these issues de novo. See Shoop v. Kittitas County, 149 Wash.2d 29, 33, 65 P.3d 1194 (2003) (stating that constitutional challenges are reviewed de novo); Fusato v. Wash. Interscholastic Activities Ass'n, 93 Wash.App. 762, 767, 970 P.2d 774 (1999) (same).

ISSUES

1. Did the State violate the Fourteenth Amendment's equal protection clause by misusing funds and refusing to exercise discretion in social security fund disbursement?

2. If the State is required to provide notice prior to appointment of a representative payee, is the Administration's notice adequate to satisfy procedural due process?

ANALYSIS

(1) LEGAL CONTEXT

The Department of Social and Health Services (DSHS) has the authority to accept custody of children from parents and juvenile courts in order to provide for the child's physical care and maintenance costs if needed. RCW 74.13.031(6). The secretary of DSHS is the custodian of any money the child may receive while in DSHS placement. By statute, the secretary has the authority to disburse these funds "for such personal needs of such person as the secretary may deem proper and necessary," and funds may be applied "against the amount of public assistance otherwise payable to such person." RCW 74.13.060(1), (2). Therefore, under RCW 74.13.060(2), a child's funds obtained from any source may be used to reimburse any benefits paid to the child or on behalf of the child during the time the child is in DSHS placement. See WAC XXX-XX-XXXX (explaining that unexempted resources and unearned income of a child in foster care must be used by DSHS for the child's cost of care).[2]

One source of funds a child may receive while in DSHS custody is social security benefits. 42 U.S.C. § 401 (2000) (Title II benefits/OASDI) allows children to receive social security benefits if they are unmarried and are dependent on a wage earner entitled to these benefits who has subsequently died. Keffeler II, 537 U.S. at 375, 123 S.Ct. 1017. 42 U.S.C. § 1381 (2000) (Title XVI benefits/SSI) *952 allows children that are blind or disabled to receive benefits if their income and assets are below $2,000. Id.; see 42 U.S.C. § 1382 (2000). Although the two types of benefits are separate and distinct programs, we agree with the State that for the purpose of this litigation and the issues raised, they are comparable. CP at 529.

Supplemental Security Income (SSI) and Old-Age, Survivors, and Disability Insurance (OASDI) benefits are usually distributed to the entitled individual, but the Social Security Commissioner (Commissioner) may decide to distribute the benefits to a representative payee instead. Keffeler II, 537 U.S. at 375-77, 123 S.Ct. 1017; 42 U.S.C. §§ 405

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88 P.3d 949, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guardianship-estate-of-keffeler-v-state-dshs-wash-2004.