Tesson v. Commissioner, Massachusetts Department of Public Welfare

3 Mass. L. Rptr. 650
Massachusetts Superior Court·Decided April 14, 1995·No. No. 940163A·Published·Cited by 1 cases

Opinion

Donohue, J.

Plaintiff, Cecile Tesson, brought this action pursuant to G.L.c. 30A, §14 (1992) seeking review of defendant’s, Massachusetts Department of Public Welfare, wrongful termination and denial of Aid [651] to Families with Dependent Children (“AFDC”) and Emergency Aid to Elderly, Disabled, and Children (“EAEDC”). This case is now before the court on Plaintiffs motion for summary judgment. Plaintiff contends that the Adam L. Richardson Trust (“Trust") was not accessible to her in June 1988, when defendant wrongfully terminated her AFDC benefits. Likewise, plaintiff also argues that the Trust assets were not accessible to her in September 1993, when defendant denied her application for new benefits. Accordingly, plaintiff insists that she is retroactively entitled to benefits from June 1988 or September 1993.

Defendant, meanwhile, asserts that because the Trust did not meet the inaccessible trust requirements under 106 Code Mass.Reg. §§304.125(A) and 321.125(A) (1993), the trust assets were considered accessible to plaintiffs assistance unit and thus, were countable assets. Consequently, defendant contends that it properly terminated plaintiffs benefits in 1988 and denied her application for new benefits in 1993.

For the reasons set forth below the decision of the Welfare Appeals Referee must be affirmed.

BACKGROUND

In 1983, plaintiffs seven-year-old son, Adam Richardson, was severely injured in a swimming pool accident. In February 1988, plaintiff received $62,666.67 in settlement of her loss of consortium claim, and her son received $162,630.41 in settlement ofhis personal injury claim. Plaintiffs son also received an annuity providing for the payment of $1,500 a month for the duration of his life. Plaintiff placed over $162,000 of the settlement in trust for her son. Plaintiff is the trustee of the Trust. Plaintiff drafted the Trust to ensure that the family’s public assistance eligibility would not be affected by the Trust. In June 1988, however, defendant terminated plaintiffs AFDC benefits because the Trust did “not satisfy all of the conditions necessary to qualify as an inaccessible asset.” Plaintiff did not appeal the termination of her benefits.

On September 7, 1993, plaintiff applied for AFDC and EAEDC benefits. Because of the Trust funds, defendant concluded that plaintiff did not qualify for either program. Plaintiff appealed defendant’s denials. On December 22, 1993, following a hearing, a Welfare Appeals Referee affirmed defendant’s denial of benefits and stated that it lacked jurisdiction to consider the 1988 termination of benefits. Pursuant to G.L.c. 30A, §14 plaintiff filed this appeal.

DISCUSSION

Summary judgment shall be granted where there are no genuine issues as to any material fact and where the moving party is entitled to judgment as a matter oflaw. Good v. Commissioner of Correction, 417 Mass. 329, 332 (1994); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community National Bank v. Dawes, 369 Mass. 550, 553 (1976); Mass.R.Civ.P. 56(c). The moving party bears the burden of affirmatively demonstrating the absence of a triable issue “and [further,] that the moving party is entitled to judgment as a matter of law.” Pederson v. Time Inc., 404 Mass. 14, 16-17 (1989).

The party appealing an administrative decision bears the burden of demonstrating the decision’s invalidity. Merisme v. Board of Appeals on Motor Vehicle Liability Policies and Bonds, 27 Mass.App.Ct. 470, 474 (1989); Faith Assembly of God v. State Building Code Commission, 11 Mass.App.Ct. 333, 334 (1981), citing Almeida Bus Lines, Inc. v. Department of Public Utilities, 348 Mass. 331, 342 (1965). In reviewing the agency’s decision, this Court is required to give due weight to the agency’s experience, technical competence, specialized knowledge, and the discretionary authority conferred upon it by statute. Flint v. Commissioner of Public Welfare, 412 Mass. 416,420 (1992); Seagram Distillers Co. v. Alcoholic Beverages Control Commission, 401 Mass. 713, 721 (1988). The reviewing court may not substitute its judgment for that of the agency. Southern Worcester County Regional Vocational School District v. Labor Relations Commission, 386 Mass. 414, 420-21 (1982), citing Olde Towne Liquor Store, Inc. v. Alcoholic Beverages Control Commission, 372 Mass. 152, 154 (1977). A court may not dispute an administrative agency’s choice between two conflicting views, even though the court would justifiably have made a different choice had the matter come before it de novo. Zoning Board of Appeals of Wellesley v. Housing Appeals Commission, 385 Mass. 651, 657 (1982).

I. The Inaccessible Trust Requirement ■

106 Code Mass.Regs. §304.125(A) (1993) provides that:1

An inaccessible asset is an asset to which the individual has no ready access and is not counted when determining eligibility for AFDC.
(1) Inaccessible assets include, but are not limited to, property the ownership of which is the subject of legal proceedings and irrevocable trust funds.
(2) Any funds in a trust, and the income produced by that trust to the extent it is not available to the assistance unit, shall be considered inaccessible to the assistance unit if all of the conditions listed below are met by the trust arrangement.
(a) No assistance unit member has the power to revoke the trust arrangement or change the name of the beneficiary.
(b) The trustee administering the trust is either (1) a court or an institution, corporation, or organization that is not under the direction or ownership of any assistance unit member; or (2) an individual appointed by the court who has court imposed limitations placed on his or her use of the funds; or (3) an individual whose responsibilities are governed by the terms of the irrevocable trust and who is not under the direction or control of any assistance unit member(s) (emphasis added).

[652] In the present case it is undisputed that the Trust satisfies the requirements of §§304.125(A)(1) & (2)(a) and 321.125(A)(1) & (2)(a). Moreover, plaintiff concedes that §§304.125(A)(2)(a) and (c) and 321.125(A)(2)(a) and (c) are inapplicable to this case. Therefore, the only issue is whether the Trust satisfies §§304.125(2)(b)(2) and 321.125(2)(b)(2).

Plaintiff argues that by approving the settlement, the court appointed her as trustee of the Trust. Additionally, plaintiff contends that the limitations imposed by the Trust on her use of the Trust funds constitute limitations imposed by the court. In opposition, defendant insists that passive approval of a settlement agreement does not constitute the court’s exercise of its appointment power. Defendant analogizes the court’s approval of the settlement agreement naming plaintiff as trustee to a court’s approval of a testamentary trust.

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Tesson v. Commissioner, Massachusetts Department of Public Welfare, 3 Mass. L. Rptr. 650 (Mass. Ct. App. 1995).

3 Mass. L. Rptr. 650 (Tesson v. Commissioner, Massachusetts Department of Public Welfare) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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