[WSBAPT] DSHS Creditor Claim SOL?

Tue Nov 23 13:19:32 PST 2021

Everyone,
Here are the statutes/WAC cited on the creditor claim as authority for the claim: RCW 43.20B.080/41.05A.090 and WAC 182-527.
After receiving off-list advice and digging around some more, below is what I was remembering on SOL’s. In my case, DSHS has never to this day filed a lien, and we are long beyond 10 years. I am going to reject the claim and see what happens….
RCW 41.05A.040<http://app.leg.wa.gov/RCW/default.aspx?cite=41.05A.040>
Time limit for collection of overpayments or other debts—Write-offs of debts.
(1) Except as otherwise provided by law, including subsection (2) of this section, there may be no collection of overpayments and other debts due the authority after the expiration of six years from the date of notice of such overpayment or other debt unless the authority has commenced recovery action in a court of law or unless an administrative remedy authorized by statute is in place. However, any amount due in a case thus extended ceases to be a debt due the authority at the expiration of ten years from the date of the notice of the overpayment or other debt unless a court-ordered remedy would be in effect for a longer period.
(2) There may be no collection of debts due the authority after the expiration of twenty years from the date a lien is recorded pursuant to RCW 41.05A.090<http://app.leg.wa.gov/RCW/default.aspx?cite=41.05A.090>.
(3) The authority, at any time, may accept offers of compromise of disputed claims or may grant partial or total write-off of any debt due the authority if it is no longer cost-effective to pursue. The authority shall adopt rules establishing the considerations to be made in the granting or denial of a partial or total write-off of debts.
[ 2011 1st sp.s. c 15 § 91<http://lawfilesext.leg.wa.gov/biennium/2011-12/Pdf/Bills/Session%20Laws/House/1738-S2.SL.pdf?cite=2011%201st%20sp.s.%20c%2015%20%C2%A7%2091>.]

RCW 43.20B.030<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.030>
Overpayments and debts due the department—Time limit—Write-offs and compromises—Waivers.
(1) Except as otherwise provided by law, including subsection (2) of this section, there will be no collection of overpayments and other debts due the department after the expiration of six years from the date of notice of such overpayment or other debt unless the department has commenced recovery action in a court of law or unless an administrative remedy authorized by statute is in place. However, any amount due in a case thus extended shall cease to be a debt due the department at the expiration of ten years from the date of the notice of the overpayment or other debt unless a court-ordered remedy would be in effect for a longer period.
(2) There will be no collection of debts due the department after the expiration of twenty years from the date a lien is recorded pursuant to RCW 43.20B.080<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.080>.
(3) The department, at any time, may accept offers of compromise of disputed claims or may grant partial or total write-off of any debt due the department if it is no longer cost-effective to pursue. The department shall adopt rules establishing the considerations to be made in the granting or denial of a partial or total write-off of debts.
(4) Notwithstanding the requirements of RCW 43.20B.630<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.630>, 43.20B.635<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.635>, 43.20B.640<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.640>, and 43.20B.645<http://app.leg.wa.gov/RCW/default.aspx?cite=43.20B.645>, the department may waive all efforts to collect overpayments from a client when the department determines that the elements of equitable estoppel as set forth in WAC 388-02-0495, as it existed on January 1, 2012, are met.
[ 2012 c 258 § 1<http://lawfilesext.leg.wa.gov/biennium/2011-12/Pdf/Bills/Session%20Laws/Senate/6508-S.SL.pdf?cite=2012%20c%20258%20%C2%A7%201>; 2005 c 292 § 5<http://lawfilesext.leg.wa.gov/biennium/2005-06/Pdf/Bills/Session%20Laws/House/2304-S.SL.pdf?cite=2005%20c%20292%20%C2%A7%205>; 2003 c 207 § 1<http://lawfilesext.leg.wa.gov/biennium/2003-04/Pdf/Bills/Session%20Laws/House/1561.SL.pdf?cite=2003%20c%20207%20%C2%A7%201>; 1997 c 130 § 5<http://lawfilesext.leg.wa.gov/biennium/1997-98/Pdf/Bills/Session%20Laws/House/1426-S.SL.pdf?cite=1997%20c%20130%20%C2%A7%205>; 1989 c 78 § 4<http://leg.wa.gov/CodeReviser/documents/sessionlaw/1989c78.pdf?cite=1989%20c%2078%20%C2%A7%204>; 1987 c 283 § 6<http://leg.wa.gov/CodeReviser/documents/sessionlaw/1987c283.pdf?cite=1987%20c%20283%20%C2%A7%206>; 1979 c 141 § 308<http://leg.wa.gov/CodeReviser/documents/sessionlaw/1979c141.pdf?cite=1979%20c%20141%20%C2%A7%20308>; 1965 ex.s. c 91 § 2<http://leg.wa.gov/CodeReviser/documents/sessionlaw/1965ex1c91.pdf?cite=1965%20ex.s.%20c%2091%20%C2%A7%202>. Formerly RCW 74.04.306<http://app.leg.wa.gov/RCW/default.aspx?cite=74.04.306>.]

Jennifer L. White, Esq.
[cid:image002.jpg at 01D7E06C.BF108660]

jen at appletreelaw.com<mailto:jen at appletreelaw.com>
PO Box 11037
Yakima, WA 98909
509.225.9813

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Tuesday, November 23, 2021 12:56 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] DSHS Creditor Claim SOL?

That’s what  happened to me in one of my experiences.  They even suggested maybe we would want to voluntarily pay.  It was a solid no from the PR 😉

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Chad Horner
Sent: Tuesday, November 23, 2021 11:44 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] DSHS Creditor Claim SOL?

Jennifer,

I had a similar claim recently from DSHS for services provided many years ago. I reached out to the revenue agent to cite the basic 2-year SOL that I was sure she already knew. She promptly withdrew the claim and request for notice, saying that she thought she’d at least give it a try. If there is another SOL, I’d be interested to know what that is.
Chad Horner
CURRAN LAW FIRM
555 West Smith Street
Kent, WA 98032
T 253 852 2345
F 253 852 2030
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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Sarah McCarthy
Sent: Tuesday, November 23, 2021 11:32 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] DSHS Creditor Claim SOL?

Please reply to list!
Sarah
Sent by dictation from my iPhone. Please excuse typos and missing punctuation!

On Nov 23, 2021, at 11:22 AM, Jennifer L White <jen at appletreelaw.com<mailto:jen at appletreelaw.com>> wrote:

Hello learned colleagues:
I received a creditor claim from DSHS for $50,000 for decedent’s hospital/pharmacy bills dating back to 1999 – 2003. I reviewed the statutes/WACS cited on the claim.
I thought I remembered something earlier on this listserv about a 20 year SOL, but that is not mentioned anywhere in the recovery laws?
There is no doubt that the decedent did receive the services, so the legitimacy of the underlying debt is undisputable. It’s just been such a long time….does such a debt really live on forever? The estate is solvent even with the claim. There is no surviving spouse or disabled or dependent children. Can anyone point me in the right direction as to any possible defenses or is it just time to pay up?

Jennifer L. White, Esq.
[cid:image003.jpg at 01D7E06C.BF108660]

jen at appletreelaw.com<mailto:jen at appletreelaw.com>
PO Box 11037
Yakima, WA 98909
509.225.9813

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