At the hearing, Copeland and SRS presented arguments concerning SRS' statutory right to be fully reimbursed from the settlement proceeds for medical assistance payments. Copeland argued that SRS' share of the settlement proceeds should be reduced or eliminated based on the application of equitable principles. Copeland also argued SRS' share of the proceeds should be reduced pursuant to Kan. Stat. Ann. § 39-719a(c), which provides that "[i]n the event of a recovery pursuant to K.S.A. 60-258a [Kansas’ comparative negligence statute]," SRS' subrogation right "shall be reduced by the percentage of negligence attributable to the injured person." SRS asserted that its recovery should not be reduced under § 39-719a(c) because Copeland had not presented any evidence that she was at fault in the accident.
The court reserved ruling on both the apportionment and fault issues during the hearing, allowing the litigants to submit evidence of Copeland’s fault in the days following the hearing. Accordingly, Copeland submitted evidence that she was under the influence of alcohol and was speeding at the time of the accident. SRS did not submit any evidence that Copeland was not at fault, nor did SRS contest the fault evidence submitted by Copeland.
On April 12, 1996, the district court filed an order approving the settlement but denying the apportionment proposed by Copeland. In the order, the court recited that SRS had paid “at least $244,814.30 in medical benefits to Copeland,"
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