State v. Bean

195 A.2d 68, 159 Me. 455, 1963 Me. LEXIS 62
CourtSupreme Judicial Court of Maine
DecidedNovember 21, 1963
StatusPublished
Cited by15 cases

This text of 195 A.2d 68 (State v. Bean) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Bean, 195 A.2d 68, 159 Me. 455, 1963 Me. LEXIS 62 (Me. 1963).

Opinion

Webber, J.

On report. The defendant was committed to the Augusta State Hospital on September 21, 1949 by order of court after he had been found not guilty of the commission of a crime by reason of insanity. On April 25, 1950 a guardian was appointed for the defendant and in the following month the regular payment of benefits to the guardian was commenced by the Veterans’ Administration of the United States. Until December 11, 1959 no bills for board and care of the defendant were submitted by the Hospital and no payments were made by the guardian. Under date of December 11, 1959 the Business Manager of the Hospital wrote to the guardian the following letter:

“Dear Madam: ROBERT BEAN
In accordance with an opinion written by the Attorney General’s Department, November 6 of this year, this 'hospital may make charges for persons committed to the hospital as a result of prosecution for a criminal offense wherever means of payment exists. We will start charges as of December 1 for board and care at $14.00 per week.”

On January 13, 1960 the guardian paid the amount due for the period from December 1, 1959 through January 31, 1960. On January 20, 1960 a bill was sent to the guardian for board and care from September 21, 1949 through December 31, 1959 in the amount of $6651.72. The fixed maximum rate changed on November 1, 1953 from $10.00 per week to $2.00 per day. As of April 26, 1962 the estate of the defendant in the hands of the guardian, all derived from veteran’s benefits and the accrued income thereon, amounted to $13,291.70 and at all material times exceeded the charges alleged by plaintiff to have then accrued. On October 26, 1962 the plaintiff brought its complaint seeking *457 to recover the sum of $6589.72 to December 1, 1959. The defendant by answer denied liability and specifically asserted by way of defense

1. That the only assets of the defendant are funds derived from the Veterans’ Administration claimed as exempt from the claims of creditors.

2. That the claim of the plaintiff for support furnished prior to December 1, 1959 was expressly waived by the letter of December 11, 1959.

3. That the plaintiff is estopped to press its claim by delay and laches.

Later by leave of court the defendant filed his counterclaim noting payments made by the guardian in 1962 of $1744 and claiming that these payments with the payment made in 1960 resulted in an overpayment of $558.

In response the plaintiff filed its answer and compulsory counterclaim by which the plaintiff asserted that after allowance for all proper credits, the defendant yet owed the sum of $262 for the period from December 1, 1959 through October 31,1962. The parties have agreed that if the plaintiff can recover for board and care furnished prior to December 1, 1959 the correct amount therefor is $6279.12 to which might be added the agreed sum of $262 for the period through October 31, 1962. The plaintiff waives any claim to interest.

The statute providing for payment to the State for such board and care in the form as it existed prior to September 16, 1961 was on that date, the defendant contends, effectively repealed. It is agreed that if this be so and as a result the defendant has overpaid, the amount of such overpayment is $560 to which may be added interest.

To the issues specifically raised by the defendant by answer as above noted must be added two others: (a) Whether *458 or not the effect of the enactment of P. L. 1961, Ch. 304 was to terminate any liability of the defendant for board and care furnished prior thereto; and (b) Whether or not the counterclaim filed by the defendant constitutes an action from which the sovereign is immune.

Issue I

Has the State waived its claim to reimbursement or is it estopped by delay and laches to prosecute its claim? The claim is in the nature of an account for goods and services rendered. The defendant frankly concedes that the Statute of Limitations could not be successfully raised in defense in this case against the sovereign. If the defendant relies upon laches, that defense is available only where the action is brought to enforce an equitable claim or right. In the instant case the claim is not of that nature. Even if that were not so, the defendant would still be precluded by the fact that the State of Maine is in the exercise of its police power in institutionalizing the criminally insane and furnishing them with board and care. While thus engaged in a governmental function, the sovereign is not vulnerable to a charge of laches. In State v. Josefsberg, (1957) 275 Wis. 142, 81 N. W. (2nd) 735, 741, the court was satisfied that the great weight of authority supports this view. See cases noted under 19 Am. Jur. 342, Sec. 495 and 30 C. J. S. 526, Sec. 114.

If the defendant relies upon the doctrine of equitable estoppel, the facts disclose no change of position on the part of the defendant. “Furthermore, the facts relied on to establish an equitable estoppel must be such as to have caused the party asserting them to have changed his position in reliance thereon and to his injury.” Town of Milo v. Water Company, 131 Me. 372, 379. Moreover the defense of equitable estoppel is not available against the State *459 when it is engaged in the exercise of sovereign powers. See Town of Milo v. Water Company, supra.

We are satisfied that the Business Manager was without authority to waive any portion of the claim in the discharge of his public duty and if the letter of December 11, 1959 may fairly be construed as an attempted waiver of any sums legally collectible, it may not be given that effect.

Issue II

Title 38, United States Code, See. 3101 provides in part: “Payments of benefits due or to become due under any law administered by the Veterans’ Administration * * * shall be exempt from the claim of creditors, and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary, * *

In a well reasoned opinion the Wisconsin court determined that a state furnishing care and maintenance to the veteran in a state mental institution is not a “creditor” within the meaning of Sec. 3101. The court noted that in Lawrence v. Shaw (1937), 300 U. S. 245, 250, 57 S. Ct. 443, 445 the Supreme Court had declared that such payments are intended primarily for the maintenance and support of the veteran. The Wisconsin court was satisfied that “in view of the long history of state court decisions permitting reimbursement by states in situations like that in this case,” the failure of Congress to make any substantial change in the law indicated tacit approval of the construction placed thereon by such decisions. In Re Bemowski’s Guardianship, (1958) 3 Wis. (2nd) 133, 88 N. W. (2nd) 22. Reaching a like result upon the same reasoning Savoid v. District of Columbia, (1961) 288 F. (2nd) 851, 110 U. S. App. D. C. 39; Auditor General v.

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Bluebook (online)
195 A.2d 68, 159 Me. 455, 1963 Me. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bean-me-1963.