A U.S. district court holds that parents can proceed on behalf of their children with special needs in a claim against the city, alleging the city improperly asserted Medicaid liens against personal injury claims that included reimbursement for federally-mandated education services. Green v. City of New York(U.S. Dist. Ct., E.D.N.Y., No. 05-CV-0429, July 17, 2006).
Three children with special needs received Medicaid benefits and special education and related services under the Individuals with Disabilities Education Act (IDEA). The parents of the children filed personal injury actions against the organizations responsible for the children's injuries. The city asserted liens against the actions for reimbursement of Medicaid expenses. The liens were paid from the personal injury settlements.
The parents filed a class action lawsuit in federal court individually and on behalf of their children, alleging that the liens improperly included monies paid by the city for federally-mandated education services that were required to be provided for free. The parents requested that the city return any money collected for education-related services. The complaint alleged several violations, including a violation of the state Medicaid law's subrogation provision. The city filed motions to dismiss, claiming the court lacked subject matter jurisdiction because the Rooker-Feldmandoctrine bars cases brought by losers in state court who are complaining about injuries caused by the state court, the court lacked jurisdiction because the claim was barred by claim preclusion, there was no private right of action under the state Medicaid law, and the statute of limitations barred the parents' individual claims.
The U.S. District Court for the Eastern District of New York denies the motion to dismiss based on subject matter jurisdiction and claim preclusion, but grants the motion to dismiss the state Medicaid law claim and the parents' individual claims. According to the court, it has subject matter jurisdiction because the state court did not miscalculate the lien amount, so it did not cause the injury, but merely ratified a decision made by the city. The case is not barred by claim preclusion because there is no privity between the city and the defendants in the personal injury lawsuit. The court also holds that the parents do not have a private right of action under the state Medicaid law's subrogation provision because enforcement is vested in the Department of Social Services and the Department of Health, not private citizens. Finally, the court holds the parents' individual claims are barred by the three-year statute of limitations.
To download the full text of this decision, go to: https://attorney.elderlawanswers.com/green-v-city-of-new-york-us-dist-ct-edny-no-05-cv-0429-july-17-2006-5534
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