New York Probate and Estate Administration Lawyer Blog
Cases involving wrongful death settlements can be quite complex, as demonstrated in the case of In re Torres, 28 Misc. 3d 677 (N.Y. Surr. Ct. 2010) , involving the New York City Department of Social Services (DSS).
Wrongful death occurs when an individual dies due to the negligent or intentional actions of another party. This legal concept allows surviving family members to seek compensation for their losses resulting from the death. A wrongful death claim typically arises when the deceased would have had a personal injury claim had they survived.
A wrongful death compromise proceeding seeks to determine who to allocate money awarded as a result of the death. The money can be designated as based on a wrongful death claim or a personal injury claim. The damages awarded for wrongful death are meant for the pecuniary losses suffered by the decedent’s distributees, whereas personal injury damages might include compensation for the decedent’s conscious pain and suffering. Proper allocation ensures the right parties receive the appropriate compensation.
The New York City Department of Social Services (DSS) can become a party in wrongful death compromise proceedings if the deceased received Medicaid benefits during their lifetime. DSS may assert a Medicaid recoupment lien to recover the costs of medical services provided to the decedent. The department has a financial interest in the settlement proceeds, particularly when the allocation includes damages for conscious pain and suffering, which are considered estate assets subject to recoupment.
In essence, the DSS’s involvement adds a layer of complexity to the proceedings, as the department seeks to protect its financial interest in the settlement while navigating the statutory requirements and ensuring a fair allocation between wrongful death and personal injury claims.
Background Facts
The case revolves around a settlement approved by the Supreme Court in 2009, allocating the entire $300,000 proceeds to the wrongful death cause of action, with the personal injury claim discontinued. DSS, initially failing to file objections, now seeks an extension, contesting the allocation that jeopardizes its potential recovery of $87,903.76, a Medicaid recoupment lien.
Issue
The pivotal question arises from the allocation decision made by the Supreme Court, as it impacts the rights of the decedent’s distributees and the ability of DSS to recoup its claim. The challenge lies in the absence of notice to potential creditors, particularly DSS, during the allocation process.
Holding
The court recognizes DSS’s plea of law office failure for not timely filing objections and, in the interest of justice, allows an extension. However, the court highlights that DSS’s objections hinge on the modification of the Supreme Court order, which exclusively allocated the settlement to wrongful death. The court refrains from addressing the merits until the allocation issue is revisited.
Discussion
The case underscores the shortcomings in the statutory framework, particularly EPTL 5-4.6, which lacks provisions for obtaining jurisdiction over potential creditors when the Supreme Court directs a specific allocation. The absence of notice to DSS, representing the city’s interests, presents a dilemma. The blog explores the broader implications of such scenarios, emphasizing the need for a more comprehensive approach.
The court suggests that, as a general rule, Supreme Court orders in cases alleging both wrongful death and personal injury causes of action should approve the settlement amount without delving into allocation details. Instead, allocation issues should be left for determination in Surrogate’s Court after jurisdiction is established over all relevant parties.
Conclusion
The case highlights the challenges posed by the current statutory framework in handling wrongful death settlements. The court wisely defers a decision on DSS’s objections, urging them to seek appropriate relief in the Supreme Court regarding the allocation matter. This case prompts a closer examination of the procedures involved in wrongful death settlements, advocating for a more streamlined and just process.
Because of the complexities of wrongful death cases, it is critical to contact an experienced New York wrongful death lawyer who can help ensure that your interests are protected and that you receive the maximum settlement given the facts of your case.