State ex rel. State Department of Public Health & Welfare, Division of Welfare v. Hogg

466 S.W.2d 167, 1971 Mo. App. LEXIS 709
CourtMissouri Court of Appeals
DecidedMarch 26, 1971
DocketNo. 9032
StatusPublished
Cited by7 cases

This text of 466 S.W.2d 167 (State ex rel. State Department of Public Health & Welfare, Division of Welfare v. Hogg) 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
State ex rel. State Department of Public Health & Welfare, Division of Welfare v. Hogg, 466 S.W.2d 167, 1971 Mo. App. LEXIS 709 (Mo. Ct. App. 1971).

Opinion

STONE, Judge.

For the use and benefit of the division of welfare, “an integral part of the department of public health and welfare” [§ 207.-010],1 this action was instituted on May 19, 1969, in the name of the State of Missouri [Rule 52.01, V.A.M.R.; § 507.010] to recover from defendants Finis M. and Gertie A. Hogg, husband and wife, the sum of $11,040 alleged to have been the aggregate amount of old age assistance benefits paid to them from November 1956 through March 1969. At the close of plaintiff’s evidence, defendants’ motion for a directed verdict was sustained; and, from the judgment for defendants entered upon the verdict so directed, plaintiff appeals.

As we recently had occasion to point out in State ex rel. State Dept. of Public Health & Welfare v. Ruble, Mo.App., 461 S.W.2d 909, 913, § 208.210(2) dealing with the recovery of benefits by the division of welfare is “a bifurcated statute whereby the General Assembly has disjunctively afforded the division of welfare different avenues of recovery,” to wit, “either [I] ‘If ... it is found the recipient . . . was possessed of any property or income in excess of the amount reported that would affect his [a] needs or [b] right to receive benefits, or [II] if it be shown such benefits were obtained through misrepresentation, non-disclosure of material facts, or through mistake of fact . . . . ’” (All emphasis herein is ours.)

In its petition, instant plaintiff pleaded, inter alia, that in their several written applications “for the purpose of obtaining old age assistance benefits defendants falsely represented to the plaintiff . . . that they did not own or possess real or personal property that would disqualify them to receive such benefits under state laws”;2 that, on the contrary (so plaintiff averred in paragraph 5) during the period old age assistance benefits in the aggregate sum of $11,040 were paid to them, i. e., from November 1956 to March 1969, defendants “owned or possessed cash and resources in excess of the statutory maximum”; and that (so plaintiff alleged in paragraph 6) “each and every payment made to the defendants . . . were (sic) obtained through misrepresentations, non-disclosure of material facts, or through mistake of fact . . . . ” Plaintiff thus pleaded alternately, as it was privileged to do [Rule 55.12; § 509.110; Kaiser Aluminum & Chemical Sales, Inc. v. Lingle Refrigeration Co., Mo.App., 350 S.W.2d 128, 131(6)], both of the grounds or “avenues of recovery” [Ruble, supra, 461 S.W.2d at 913] afforded by § 208.210(2) which were in no wise repugnant or inconsistent.

Plaintiff offered in evidence five “Eligibility Statements” signed by both defendants, which were completed on comprehensive forms designed to elicit and develop detailed information concerning defendants’ financial status and resources. In the [169]*169earliest statement dated September 24, 1956, and identified as Exhibit E, defendants represented that they had 36‡ in cash, no checking account, no savings account and no time deposits, and that they then owned and resided on a 13-acre tract valued at $2,000 and subject to a “recorded indebtedness” of $760. The next statement dated October 1, 1957, and identified as Exhibit D included representations that defendants then had no cash, no checking account, no savings account and no time deposits and still resided on the 13-acre tract then subject to a $500 “mortgage.” The same declarations of no cash, no checking account, no savings account and no time deposits were repeated in the statement dated May 18, 1959, and identified as Exhibit C, which also showed that defendants had acquired an additional 40 acres and then resided on a 53-acre tract valued at $2,900 and subject to a $450 “mortgage.” The next statement dated June 1, 1966, and identified as Exhibit B likewise reported no cash, no checking account, no savings account and no time deposits, as well as defendants’ continued residence on the same 53-acre tract then valued at $4,000 and subject to no “mortgage.” In the final eligibility statement dated March 25, 1969, and identified as Exhibit A, which triggered further investigation by plaintiff and the institution of this action, defendants revealed for the first time that they had a checking account of “about $1,200,” but they repeated prior representations that they had no cash, no savings account and no time deposits and again recorded the fact of their residence on the same 53-acre farm then valued at $4,500 and subject to no “mortgage.” Exhibits A and B were admitted in evidence, but Exhibits C, D and E were excluded on the theory that recovery of benefits paid more than five years prior to the institution of this action on April 17, 1969, was barred by the five-year statute of limitations [§ 516.120] applicable to actions brought in the name or for the benefit of the state, in the same manner as to actions by private parties. § 516.360.

Plaintiff’s witness Shain, executive vice-president of the State Bank of Fisk, Missouri, produced fourteen “permanent ledger sheets of the checking account of [defendants] F. M. or Gertie Hogg” in that bank, identified collectively as Exhibit J. Three of these ledger sheets (unnumbered) reflected scattered transactions between April 24, 1950, and April 12, 1960, in a relatively inactive account carried in the sole name of defendant “F. M. Hogg.” However, the remaining eleven ledger sheets numbered by the bank from 3 to 13, inclusive, recorded a multitude of transactions between September 4, 1962, and October 21, 1968, in the active account of “F. M. or Gertie Hogg,” 3 and showed that the balance in defendants’ bank account was in excess of $1,500 (a) during the entire period from September 4, 1962, the date of the first entry on sheet numbered 3, to January 7, 1965, on which date a check for $3,000 was charged to the account,4 and (b) during the entire period from April 28 to November 15, 1967, on which latter date a check for $2,950 was charged to the [170]*170account.5 That portion of Exhibit J reflecting the status of defendants’ bank account prior to April 17, 1964, was excluded from evidence, but the remainder of the exhibit pertaining to the period subsequent to that date was admitted.

Section 208.210, subsec. 3, states that “[t]he possession of undeclared property by a recipient [of public assistance] or his spouse with whom he is living shall be prima facie evidence of its ownership during the time benefits were granted, and the burden to prove otherwise shall be upon the recipient or his legal representative.” The effect of this statutory provision “is to create [or constitute] certain specified facts when proved as prima facie evidence of a further fact, i. e., proof of possession of undeclared property is prima facie evidence of its ownership by recipient during the time benefits were granted.” Ruble, supra, 461 S.W.2d at 913.

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Bluebook (online)
466 S.W.2d 167, 1971 Mo. App. LEXIS 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-state-department-of-public-health-welfare-division-of-moctapp-1971.