Jones ex rel. Williams v. Missouri Department of Social Services

966 S.W.2d 324, 1998 Mo. App. LEXIS 477, 1998 WL 113226
CourtMissouri Court of Appeals
DecidedMarch 17, 1998
DocketNo. 72304
StatusPublished
Cited by8 cases

This text of 966 S.W.2d 324 (Jones ex rel. Williams v. Missouri Department of Social Services) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones ex rel. Williams v. Missouri Department of Social Services, 966 S.W.2d 324, 1998 Mo. App. LEXIS 477, 1998 WL 113226 (Mo. Ct. App. 1998).

Opinion

AHRENS, Presiding Judge.

The Missouri Department of Social Services, Division of Medical Services (“DMS”) appeals from a judgment reducing its lien pursuant to Section 208.215 RSMo Cum. Supp.1996.1 DMS first contends the application of Section 208.215 was an unconstitutional and unlawful retrospective application of a statute in that the events creating respondents’ liability to pay the lien occurred before the effective date of Section 208.215. DMS also contends the respondents presented insufficient evidence to support a reduction in the lien, the trial court did not consider all of the factors set out in Section 208.215.9, and the trial court did not make specific findings of fact. We affirm.

Deshauna Jones, a four year old child, was struck by a motorist while crossing a street in the City of St. Louis on July 27, 1995. As a direct result of the accident, Deshauna suffered permanent injuries. She underwent extensive medical treatment and incurred substantial medical expenses. Deshauna by her next friend and natural mother, Sonia Williams, settled her claim against the motorist for the policy limits of $25,000.

Deshauna was a Medicaid recipient. DMS provides Medicaid to Missouri citizens in conjunction with the United States government. DMS paid at least $91,841 in Medicaid benefits to compensate medical providers for their treatment of Deshauna’s injuries, resulting from the July 27, 1995 accident. DMS perfected a lien in the amount of $91,841 and sought to enforce the lien against the $25,000 proceeds from the settlement of the claim.

On October 2,1996, Deshauna by her next friend, Sonia Williams, filed a petition with the St. Louis City Circuit Court requesting that the lien held by DMS be reduced under the authority of Section 208.215 RSMo Cum. Supp.1996. At the hearing on December 4, 1996, the parties stipulated that DMS held a properly perfected lien in the amount of $91,-841.

Counsel for DMS objected to further proceedings upon the ground that respondents were proceeding under the incorrect version of the statute. Counsel for DMS argued that because Section 208.215 did not take effect until August 28, 1996, its application would be an improper retrospective application of the statute under the Missouri Constitution. The court overruled the objection of DMS.

Sonia Williams testified she is Deshauna’s natural mother. She further testified that as a result of the accident, Deshauna suffered a stroke, sustained brain damage affecting her learning ability, lost the use of one of her arms, and suffers from impaired speech. Deshauna cannot perform daily functions, such as dressing herself or going to the bathroom without assistance.

Doctors do not know Deshauna’s prognosis with any certainty. Sonia Williams testified the doctors explained that Deshauna suffered brain damage from the stroke. Doctors hope that Deshauna can train herself, through therapy, to compensate for her losses. The doctors are uncertain whether Deshauna will ever fully recover. The doctors believe that in time Deshauna may be able to walk again.

[327]*327Sonia Williams testified she received a bill from the Children’s Hospital in the amount of $161,000 and a second bill in the amount of $25,000. She stated that Deshauna continues to receive therapy at Children’s Hospital. She thought these bills were being paid by Medicaid.

Sonia Williams does not have the ability to pay for any of the medical bills incurred. She did not have any private insurance available to cover Deshauna. Deshauna’s father had private medical insurance that paid approximately $20,000 of the bills, exhausting the insurance limits.

On January 13, 1997, the trial court found that Section 208.215.9 was a procedural statute and did not create or impair the substantive rights of DMS. The trial court considered the factors set forth in Section 208.215.9(1-6). Sonia Williams had entered a contingency fee agreement on behalf of her daughter, entitling an attorney to one-third of any amount recovered. The trial court reduced the lien of DMS to $8,333.34, which is the equivalent of fifty percent of the remaining recovery amount from the settlement of the claim against the motorist, after payment of attorney fees and costs. DMS appealed.

It is the position of DMS that the crucial events occurred before the effective date of Section 208.215 and the trial court’s application of the amended statute was therefore unconstitutionally retrospective. Mo. Const. Art. 1, Section 13.

Section 208.215.9 provides that a party may file a petition requesting an evidentiary hearing for the purpose of determining whether a lien asserted by DMS should be reduced or apportioned. There is no right to a reduction hearing under the previous version, Section 208.215 RSMo 1994. Additionally, Section 208.215.7 RSMo 1994 provided “[t]he director shall have the right to recover the full amount of payments made to a provider under this chapter_” Our legislature removed the word “full” in the 1996 amendment. DMS contends these changes attach new disabilities to past transactions and impair its vested rights in violation of Missouri’s Constitution. State v. Thomaston, 726 S.W.2d 448, 459 (Mo.App.1987). We disagree.

Article 1, Section 13 of the Missouri Constitution provides “no ex post facto law, nor law ... retrospective in its operation can be enacted.” We, therefore, presume statutes operate prospectively. Callahan v. Cardinal Glennon Hosp., 863 S.W.2d 852, 872 (Mo. banc 1993). There are, however, two exceptions: (1) where the legislature manifests a clear intent that the statute act retroactively, and, (2) where the statute is solely procedural or remedial and does not affect the substantive rights of the parties. Schweigert v. Braxton, 902 S.W.2d 370 (Mo.App.1995).

Clearly, the legislature has not indicated by express language that Section 208.215 is to operate retroactively. Similarly, a thorough reading of the statute does not reveal an unavoidable implication that Section 208.215 should apply retroactively. Dept. of Co. Serv. v. Villa Capri Homes, 684 S.W.2d 327, 332 (Mo. banc 1985). The first exception does not apply.

DMS goes beyond this analysis, contending the decision to draft the statute in the future tense is indicative of the legislature’s intent that the statute is to be applied only prospectively. See Gershman Inv. Corp. v. Duckett Creek Sewer District, 851 S.W.2d 765, 768 (Mo.App.1993). We are not persuaded that the tense of the language is controlling on this issue. See Schweigert v. Braxton, 902 S.W.2d 370 (Mo.App.1995) (finding retroactive application appropriate even though the statute at issue did not use language in the past tense).

Respondents contend the second exception is applicable in that Section 208.215 is procedural or remedial rather than substantive in nature. A law that makes only a procedural or remedial change and does not affect the substantive rights of a party is not “retrospective” and may be applied “retroactively”. State ex rel. Webster v. Myers, 779 S.W.2d 286

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Bluebook (online)
966 S.W.2d 324, 1998 Mo. App. LEXIS 477, 1998 WL 113226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-ex-rel-williams-v-missouri-department-of-social-services-moctapp-1998.