Page:Copeland By and Through Copeland v. Toyota Motor Sales U.S.A., Inc.pdf/17

From Wikisource
Jump to navigation Jump to search
This page has been validated.

intent to displace such principles.[1] See White v. Sutherland, 585 P.2d 331, 334 (N.M. Ct. App. 1978); see also Hedgebeth v. Medford, 378 A.2d 226, 230-31 (N.J. 1977). We therefore look at the specific language of § 39-719a to determine whether the Kansas legislature has expressed or otherwise indicated an intent to abrogate or incorporate the equitable principles advanced by Copeland.[2]


  1. Although many courts have concluded that equitable principles do apply to the state’s subrogation right under the relevant state statute, courts have not uniformly adopted the specific equitable principles suggested by Copeland, namely, the “made whole” rule and proportional recovery. Of those cases in which courts have concluded equitable principles apply to the state’s subrogation right, most have involved the question of whether the trial court had discretion to apportion proceeds between the state agency and the injured party in a manner that awarded the state less than full reimbursement for medical assistance payments. In those cases, courts have typically held that, based on general equitable principles, the trial court does have such discretion and that 100% recoupment by the state is not statutorily required, but instead depends on the facts of the case. See, e.g., Smith v. Alabama Medicaid Agency, 461 So.2d 817, 818-20 (Ala. Civ. App. 1984) (stating that the state’s statutory subrogation right was subject to equitable principles and that the statute did not mandate total recoupment by the state in every case, “as such a determination depends on the facts of a particular case”).
  2. As noted above, in arguing equitable principles apply to SRS’ subrogation right, Copeland relies on the fact that the Kansas statute does not provide SRS with a lien securing reimbursement, but only creates a subrogation right. Copeland has not adequately explained, however, why the presence or absence of a lien should control this court’s decision whether equitable principles have been abrogated under Kansas’ statute. Copeland argues generally that "principles of equity govern subrogation while they do not generally govern liens." Copeland then cites cases in which courts have stated that the creation of a statutory lien in addition to, or instead of, a subrogation right "evidences legislative intent to displace equitable principles.” Paulsen v. Department of Soc. & Health Servs., 898 P.2d 353, 354, 356 (Wash. Ct. App. 1995) (stating that “[s]ubrogation and lien are separate equitable remedies designed to secure repayment of an underlying obligation” and that "[t]he structure and language of the statutes at

-17-