In re the Estate of Bricker

183 Misc. 2d 149, 702 N.Y.S.2d 535, 1999 N.Y. Misc. LEXIS 558
CourtNew York Surrogate's Court
DecidedDecember 23, 1999
StatusPublished

This text of 183 Misc. 2d 149 (In re the Estate of Bricker) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Estate of Bricker, 183 Misc. 2d 149, 702 N.Y.S.2d 535, 1999 N.Y. Misc. LEXIS 558 (N.Y. Super. Ct. 1999).

Opinion

OPINION OF THE COURT

Lee L. Holzman, J.

In this accounting proceeding, the objectant, the Department of Social Services of the City of New York, has moved for summary judgment granting its claim in the sum of $34,913.44 for Medicaid benefits that it paid on behalf of the decedent to Montefiore Hospital. The parties stipulated that the papers filed by the executrix in opposition to the summary judgment motion would be deemed a cross motion for summary judgment.

The underlying issue, a question of first impression, is whether the decedent or the hospital should pay for the hospital care during the period that the decedent would have been discharged from the hospital if either he had accepted the hospital’s discharge plan or the hospital had not delayed his discharge by instituting a proceeding, which was ultimately denied, to appoint a conservator for him. In the absence of any express statutory authority, the court holds that the facts presented are analogous to those cases in which the court denies or dismisses the petition for the appointment of a guardian under article 81 of the Mental Hygiene Law, and, consequently, the hospital costs at issue may be charged to the hospital or to the patient “or * * * both in such proportions as the court may deem just” (see, Mental Hygiene Law § 81.09 [i]; § 81.10 [f]).

The decedent entered Montefiore Hospital for hip replacement surgery on October 19, 1984 and was not discharged until May 13, 1985. The hospital petitioned pursuant to article 77 of the Mental Hygiene Law for the appointment of a conservator, alleging that the decedent had a “substantial impairment of his ability to care for his property and to provide for himself’ as a result of “advanced age and illness.” The petition was supported by an affidavit of a social worker sworn to on March 7, 1985 in which she stated the following: the decedent states that he has hundreds of thousands of dollars at Chase Manhattan Bank, a claim which has not been verified but “his reported wealth has not been refuted by other information gleaned about him;” that he is presently stable for discharge but refuses to go along with the discharge plan of either a nursing home placement or return to his home with care for 24 hours a day because of his “reluctance to allow people in his home or to [151]*151part with the considerable sums it would cost to obtain these services;” and that the “case cries out for the appointment of a conservator to conserve his property and oversee a safe discharge plan.” The Honorable Irma Vidal Santaella denied the application in a decision rendered on December 2, 1985, stating that after “extensive and in-depth hearings,” she found that the decedent was “capable of managing his property and providing for himself and that he does not suffer any mental or physical impairment which impedes him from doing so.”

Although the objectant paid Medicaid benefits totaling $76,010.46 for the decedent’s entire stay in the hospital, it has filed a claim in the sum of only $34,913.14 because it is not seeking to be reimbursed for any benefits that it had provided more than 10 years prior to March 13, 1995, the date of the decedent’s death at 94 years of age (see, Social Services Law § 104 [1]). Notwithstanding that Montefiore Hospital knew that the decedent claimed to have a large sum of money deposited at Chase Manhattan Bank, it, nevertheless, apparently applied for Medicaid benefits on his behalf. The decedent died with an estate having a value in excess of $200,000. Thus, even though it appears that the decedent was not eligible for Medicaid benefits when the benefits were provided, it also appears that Montefiore and not the decedent was the party who was primarily responsible for applying for the benefits. Inasmuch as the objectant paid Montefiore for the Medicaid benefits, the objectant should stand in the shoes of Montefiore with regard to its right to recover from the decedent’s estate.

The objectant asserts that, regardless of whether the Medicaid benefits were correctly paid on behalf of the decedent, it is entitled as a preferred creditor to recover from his estate for the assistance that was provided to the decedent when he was 84 years of age (see, Social Services Law §§ 104, 369 [2] [b] [i] [B]). Furthermore, it contends that the provisions in the Mental Hygiene Law which previously authorized hospitals to institute a conservatorship proceeding for a patient (Mental Hygiene Law former § 77.03) and now grant the same authority to the hospital to institute a guardianship proceeding (Mental Hygiene Law § 81.06 [a] [7]) reflect a public policy in favor of paying the hospital for the services that it provides while the proceeding is pending. It also avers that it is significant that Public Health Law § 2803 (1) (g) (which it notes in its brief did not become effective until January 1, 1988, a date after which the benefits at issue were provided) provides that a hospital is prohibited from discharging a patient until the ser[152]*152vices needed by the patient are available. The objectant argues that this statutory provision also reflects a public policy that the hospital should not have to bear the cost of hospitalization for the period that the hospital is attempting to obtain the services needed for a safe discharge of the patient.

The principal contention of the executrix is that, regardless of whether the hospital acted in good faith, it would be unjust to require the decedent’s estate to pay the hospital bill for services rendered during the period that the hospital refused to discharge the decedent because it erroneously was of the opinion that he could not handle his own affairs. The executrix also avers that the objectant’s claim should be rejected on the grounds of laches because it waited for approximately a decade to assert its claim, by which time the decedent had died and could no longer assist in defending against the claim.

At the outset, the reliance of the executrix on the doctrine of laches is rejected both upon equitable considerations, the decedent possessed assets and knew that he had not paid for his hospitalization, and upon the controlling authority that the State may not be charged with laches in the absence of statutory authority (Matter of Jamestown Lodge 1681 Loyal Order of Moose v Catherwood, 31 AD2d 981). However, her contention that it would be unjust to require the estate to pay for these services merits more serious consideration.

Social Services Law § 104 (1) explicitly states that the right of the public welfare official to recover from the recipient for the benefits provided is based upon an “implied contract.” The law recognizes two types of implied contracts, those which are implied by the facts and those which are implied by the law. A contract implied from the facts is found where the consent of the parties to the agreement may be inferred from the acts of the parties and all of the surrounding circumstances (Tjoa v Butterfield Mem. Hosp., 205 AD2d 526). A contract that is implied by the law or a quasi-contract is not based upon express or implied consent and is really not a contractual remedy but, instead, is an equitable remedy erected to prevent unjust enrichment (Clark-Fitzpatrick, Inc. v Long Is. R. R. Co., 70 NY2d 382, 388-389).

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Related

Clark-Fitzpatrick, Inc. v. Long Island Rail Road
516 N.E.2d 190 (New York Court of Appeals, 1987)
In re Jamestown Lodge 1681 Loyal Order of Moose, Inc.
31 A.D.2d 981 (Appellate Division of the Supreme Court of New York, 1969)
T. Seng Tjoa v. Julia Butterfield Memorial Hospital
205 A.D.2d 526 (Appellate Division of the Supreme Court of New York, 1994)

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Bluebook (online)
183 Misc. 2d 149, 702 N.Y.S.2d 535, 1999 N.Y. Misc. LEXIS 558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-bricker-nysurct-1999.