AMELIA HORTA, APPELLANT,
v.
DEPARTMENT OF CHILDREN AND FAMILIES, APPELLEE

Fla. 3d DCA | 2005-06-08
No. 3D04-1774
Before GERSTEN and FLETCHER, JJ., and SCHWARTZ, Senior Judge.
911 So. 2d 139 Florida District Court of Appeal, Third District (2005) Positive Treatment
Cited by 3 cases

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Synopsis

Amelia Horta challenged the Department of Children and Families' recovery claims for overpaid temporary cash assistance and food stamps, arguing the claims were time-barred under Florida's four-year statute of limitations. The court affirmed the Department's right to seek recovery, holding that neither federal nor state statute of limitations principles preclude recovery of welfare overpayments.


Holding

The court held that neither federal nor state statute of limitations principles preclude the state's recovery of welfare overpayments. Federal regulations do not impose a statute of limitations on benefit recovery claims and do not require cancellation of claims not processed within specified timeframes; rather, federal policy instructs states not to cancel referrals based on age.


Headnotes

[1] State statutes of limitations do not preclude recovery of federal benefit overpayments when federal law does not impose a time limit.

[2] Federal regulations requiring prompt action on benefit overpayment referrals are directory, not mandatory, and do not bar subsequent recovery.

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Key Quotes

“the view that, in effect, there is no federal or state statute of limitations or untimeliness principle which precludes the state's recovery of overpayments is in accord with the great weight of well-reasoned authority, with which we fully agree”

Establishes the core holding that neither federal nor state statute of limitations bars welfare overpayment recovery

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Facts & Procedural History

Horta received erroneous overpayments of temporary cash assistance and food stamps due to agency errors discovered on September 3, 1997, and October 8…

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Opinion of the Court
SCHWARTZ, Senior Judge.

SCHWARTZ, Senior Judge.

The appellant was the recipient of erroneous overpayments of temporary cash assistance and food stamps from the Department of Children and Families. She now seeks review of the following decision of the Department of Children and Families, Office of Appeal Hearings, rejecting her claim that the state’s claims for reimbursement were barred as untimely:

[Petitioner argues that the benefit recovery claims are no longer a legally enforceable debt, as it’s time-barred by Florida’s Statute of Limitations. [She] cite[s] Florida Statutes § 95.11(3)(f) (2003) which limits an action founded on a statutory liability, to four years and therefore, contend that the claim should be cancelled. The Department countered, that this was a Federal debt. The authorities provided by the petitioner’s representative do not lead the hearing officer to believe that the Federal debt should be cancelled because of this Florida law.

In the case at hand, overpayments were discovered on September 3, 1997, and October 8, 1998, due to agency errors. The claims were established on December 15, 2003, and notices of the overpayments were generated on December 16, 2003. While Federal Regulations instruct the State to act on referrals within a certain time frame, they do not list the penalty for not acting timely nor do they instruct the state agency to set aside the petitioner’s claim, for not acting on them timely. In fact, the Federal requirement mentioned in the [Benefit Recovery] Policy Bulletin, instructs the Department not to cancel referrals based on their age.

Therefore, not only is the Federal agency not forgiving the claims, it does not intend this language to mean that the state agency forgive a claim that is not processed within the time frame.

Based on the above-mentioned regulations, the hearing officer finds that the Department must seek recovery of the food stamp overpayment claims.... Additionally, the Department must seek recovery of cash assistance overpayment claims....

We find no error and affirm.

First, there is no basis for departing from the presumptively correct administrative interpretation of the statute below. See Fla. Hosp. v. Agency for Health Care Admin., 823 So. 2d 844 (Fla. 1st DCA 2002); Metro. Dade County v. State Dep’t of Envtl. Prot., 714 So. 2d 512 (Fla. 3d DCA 1998).

Second, and more important, the view that, in effect, there is no federal or state statute of limitations or untimeliness principle which precludes the state’s recovery of overpayments is in accord with the great weight of well-reasoned authority, with which we fully agree. See Sarasota County v. Nat’l City Bank of Cleveland, 902 So. 2d 233 (Fla. 2d DCA 2005)[30 Fla.

L. Weekly D1244](chapter 95 inapplicable to administrative code enforcement and “quasi-judicial administrative proceedings initiated pursuant to any administrative law”); Quarterman v. Dep’t of Health and Rehab. Servs., 650 So. 2d 104 (Fla. 1st DCA 1995)(regulations requiring prompt recovery of benefit overpayments are merely directory); Prince v. Div. of Family Servs., 886 S.W. 2d 68 (Mo.Ct.App.1994)(regulation time requirement for recovering overpayments of benefits does not serve as statute of limitations); Obert v. Colo. Dep’t of Soc. Servs., 766 P. 2d 1186 (Colo.1988)(no time limit on right to correct underpayment of benefits which right is identical to overpayment), cert. denied, 490 U.S. 1116, 109 S.Ct. 3178, 104 L.Ed.2d 1039 (1989); Cudal v. Sunn, 69 Haw. 336, 742 P. 2d 352 (1987)(failure to comply with promptness provision to correct overpayments does not foreclose subsequent recovery or act as statute of limitations); Anderson v. Comm’r of Dep’t of Human Servs., 489 A. 2d 1094 (Me.1985)(time regulations and promptness to correct benefit overpayment provisions directory and not mandatory); Wilson v. Dryden, 169 F. Supp. 2d 1010 (D.Minn.2001)(noting that recoupment did not violate agency’s discretionary authority to recover cash assistance benefits without time limit); see also Marshall v. State of Iowa, Dep’t of Human Servs., 559 N.W. 2d 612 (Iowa 1997)(statute of limitations inapplicable to state enforcing public right in recovery of welfare overpayment); Burton v. Dep’t of Health & Soc. Servs., 103 Wis.2d 670, 309 N.W. 2d 388 (Wis.Ct.App.1981)(state statute of limitations not applicable to re-computation of AFDC benefits where statute is inconsistent with federal law granting full retroactive relief).

Affirmed.


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Citator

Cited By

  • Lee Mem'l Health Sys. Gulf Coast Med. Ctr. v. State, 272 So. 3d 431 (Fla. 1st DCA 2019)
    …n is a direct substitute for a civil action. That [*440] exception does not apply here. There is no federal or state statute that requires Medicaid overpayments to be audited within a certain period of time. See Horta v. Dep't of Children Families , 911 So. 2d 139, 140 (Fla. 3d DCA 2005). We hold the statute of limitations does not apply, because the instant case is a quasi-judicial administrative proceeding. The case is similar to Horta , in that an overpayment of federal funds was alleged, and the recoverin…
  • Lee Mem'l Health Sys. v. State, 272 So. 3d 431 (Fla. 1st DCA 2019)
    …ction is a direct substitute for a civil action. That exception does not apply here. There is no federal or state statute that requires Medicaid overpayments to be audited within a certain period of time. See Horta v. Dep’t of Children Families, 911 So. 2d 139, 140 (Fla. 3d DCA 2005). We hold the statute of limitations does not apply, because the instant case is a quasi-judicial administrative proceeding. The case is similar to Horta, in that an overpayment of federal funds was alleged, and the recove…

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