15-Year-Old Estate Recovery Not Barred By Oregon Statute of Limitations

An Oregon appeals court rules that there is no limitation on the time the state has to bring a claim for reimbursement for medical expenses other than the requirement that the state must bring the claim within four months of the estate's notice to interested persons. State v. Broyles (Or. Ct. App., No. A136521, May 13, 2009).

The Oregon Department of Human Services (DHS) brought an estate recovery claim to recover Medicaid payments from the estate of Keith Broyles in 2006, 15 years after Mr. Broyles passed away. An estate had not been opened until DHS brought its claim, and when the estate was opened, the estate's personal representative rejected DHS's claim as barred under a statute of limitations found outside of the probate code.

The trial court granted the estate summary judgment. It found that DHS's claim was an "action" governed by a general statute of limitations that was long past, and that the probate code's more lenient time limitations did not apply to the state's claims. On appeal, DHS argued that claims brought by the state were statutorily exempt from the operation of the general statute. DHS also claimed that the language in the probate code clearly applied the probate code's statute of limitations to claims brought by the state.

The Oregon Court of Appeals reverses, ruling that the probate code governs in this case and allowing DHS to bring an estate recovery claim. The court first explains that, even if the estate was correct that the general statute of limitations applies, the statute exempts actions brought in the name of the state. According to the court, "neither statute imposes a limitation on the time that the state has to bring a claim for reimbursement of medical expenses" and the only limitation was that the "claim must be brought within four months of the estate's publication of notice to interested person."

For the full text of this decision, go to: https://www.publications.ojd.state.or.us/A136521.htm

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