Opinion ID: 2417477
Heading Depth: 1
Heading Rank: 10

Heading: Intervention of ADHS

Text: Appellant ADHS argues that the trial court erred in denying its motion to intervene. On November 8, 1993, ADHS filed a motion to intervene pursuant to Ark.R.Civ.P. 24(a)(1) and Ark.Code Ann. § 20-77-304 (Repl.1991). The complaint asserted Emily Golden had applied for and received benefits administered by the Medicaid program and she had assigned any recovery from the defendants to ADHS. The complaint further asserted that Ark.Code Ann. § 20-77-301 et seq. imposes such an assignment as a matter of law and creates an absolute lien in favor of ADHS. The trial court denied the motion for intervention on the basis that ADHS's claims were derivative of the parents' claims for recovery of medical expenses incurred during the minority of Emily Golden. The trial court found that because the parents' claims were barred, ADHS's derivative claim was also time barred. Appellant ADHS contends it has a right (1) to initiate an action on its own behalf, irrespective of the actions of others, and (2) to intervene in an existing action brought by or on behalf of a Medicaid recipient. We hold the trial court erred in denying the motion for intervention, as ADHS's claims are clearly not derivative of the claims of the parents. Arkansas Code Annotated § 20-77-301 (Repl.1991) provides in part: (a) When medical assistance benefits are provided or will be provided to a medical assistance recipient because of injury, disease, or disability for which another person is liable, the appropriate division of the Department of Human Services shall have a right to recover from the person the cost of benefits so provided. The department may, to enforce the right, institute and prosecute legal proceedings against the third person who may be liable. (b) No action taken on behalf of the division pursuant to this section or any judgment rendered in the action shall be a bar to any action upon the claim or cause of action of the recipient, his guardian, personal representative, estate, or survivors against the third person who may be liable for the injury. Nor shall any action operate to deny to the recipient the recovery for that portion of any damages not covered hereunder. (Emphasis added.) Further, Ark.Code Ann. § 20-77-306 (Repl.1991) provides in part: All parties who were legally liable for any or part of any medical cost of an injury, disease, disability, or condition requiring medical treatment for which the medicaid program, established by Acts 1965 (2nd Ex.Sess.), No. 14, § 7 [superseded], has paid, or has assumed liability to pay, shall be liable to the Department of Human Services for the amount of their liability to the extent that the Department of Human Services has paid or agreed to pay. Thus, it is clear that ADHS has an independent right to recover the cost of benefits provided from persons who are liable for injury to a medicaid recipient. In the instant case, ADHS sought to intervene in the action filed on behalf of Emily Golden, pursuant to Ark.Code Ann. § 20-77-304 (Repl.1991), asserting that Emily assigned any recovery from the defendants to ADHS pursuant to Ark.Code Ann. § 20-77-307 (Supp.1995). Section 20-77-307 provides in part: (a) As a condition of eligibility, every Medicaid applicant shall automatically assign his or her right to any settlement, judgment, or award which may be obtained against any third party to the Arkansas Department of Human Services to the full extent of any amount which may be paid by Medicaid for the benefit of the applicant. (b) The application for Medicaid benefits shall, in itself, constitute an assignment by operation of law. (c) The assignment shall be considered a statutory lien on any settlement, judgment, or award received by the recipient from a third party. Further, § 20-77-304 provides in part: (a) If either the medical assistance recipient or the division brings an action or claim against a third person, the recipient or department shall, within thirty (30) days of filing the action, give to the other party written notice of the action or claim by personal service or registered mail.... (3) If an action or claim is brought by either the department or recipient, the other may, at any time before trial on the facts, become a party to the action or shall consolidate his action or claim with the other if brought independently. (Emphasis added.) The appellees contend ADHS has no independent cause of action; however, that assertion is directly contradicted by § 20-77-301. Further, § 20-77-304(3) clearly contemplates ADHS may become a party to the action brought by the guardians. The trial court erred in denying the intervention; we reverse. The guardians have also asked that we retax costs pursuant to Ark.R.App.P. 6(c) because the appellees filed a Designation of Record which resulted in the inclusion of unnecessary material not used by any parties in this appeal, at an additional cost to appellants of $15,699.50. The appellees point out that the guardians initially listed 23 issues they intended to raise on appeal. The brief filed by the guardians contained only ten of these issues. Appellees further contend that among the issues raised by the guardians were vague and overbroad points which required the designation of virtually all liability testimony. We cannot say that the appellees were unreasonable in their belief that the additional portions of the record were needed for consideration of the issues initially raised by the guardians. Accordingly, the guardians' motion to retax costs is denied. Affirmed in part; reversed and remanded in part. GLAZE and BROWN, JJ., not participating. Special Justices JAMES McLARTY and W. KELVIN WYRICK join in this opinion.