PALMER, J.
General Statutes § 17b-93 (a)
The following facts, as found by the trial court, and procedural history are not disputed. On May 4, 2006, in the course of her employment as a driver for Hartford Elderly Services, LLC (Hartford Elderly), the plaintiff transported a client to the emergency room of the health center. While the plaintiff was waiting for the client in the health center's waiting room, a woman asked the plaintiff to turn on the television, which was suspended approximately six feet above the floor and held in place by a wall mounted bracket and threaded spindle. Because there was no remote control for the television, the plaintiff attempted to turn it on manually. When the plaintiff pressed the power button, the television fell onto her, causing injuries to her neck, right shoulder and right hand. It subsequently was determined that the repetitive act of operating the power button manually, over time, had caused the threads on the spindle to wear and the television to move onto the last thread. The plaintiff received workers' compensation benefits from Hartford Elderly for subsequent periods of incapacity and for varying degrees of permanent partial impairment to her neck, shoulder and hand.
In May, 2009, after obtaining permission from the claims commissioner to sue the state in accordance with General Statutes § 4-160, the plaintiff commenced the present negligence action. The state filed a counterclaim, seeking an equitable setoff of the financial assistance that it had provided to the plaintiff "with the legal liability established by General Statutes § § 17b-93, 17b-94 and 17b-265 and 42 U.S.C. §§ 1396a (a) and 1396k."
Prior to trial, the state filed a "Motion for Setoff of [Department of Administrative Services (department)] Lien,"
Thereafter, the trial court considered the state's renewed motion for setoff, which had been revised to reflect assistance payments made to date. The parties stipulated that deductions totaling $156,174.10 for certain expenses and the workers' compensation lien properly could be made from the damages award, leaving $78,896.73 in proceeds subject to the state's setoff.
The trial court agreed with the plaintiff, relying, in part, on the fact that, under § 17b-93 (a), the state's claim is "subject to the provisions of section 17b-94...." The court further reasoned that applying the limitation of § 17b-94 to the state's recovery in a case, like the present one, brought by a beneficiary against the state, would be consistent with the purpose of that limitation insofar as it provides an incentive for the beneficiary to recover on a claim for damages in circumstances where the beneficiary otherwise might decline to do so because the state would be entitled to a setoff of the entire recovery. Accordingly, the trial court concluded that the state was entitled only to "one half of $78,896.73, representing the net amount of the judgment after proper deductions," and ordered the state to pay an equal amount to the plaintiff as damages. Following the trial court's judgment rendered in favor of the plaintiff and Hartford Elderly on their complaints and the judgment in part for the state on its counterclaim, this appeal followed.
The plaintiff claims that, notwithstanding the fact that rules of strict construction would apply in the present case if the statutory scheme were ambiguous, the statutory terms unambiguously support the trial court's conclusion. The plaintiff contends that § 17b-93 expressly is limited by § 17b-94, and, in turn, § 17b-94 unambiguously applies to a cause of action against the state. Relying on the principle of expressio unius est exclusio alterius — the expression of one thing is the exclusion of another — the plaintiff contends that, because a lien is the only mechanism provided to the state in § 17b-94 to recover its debt from the proceeds of a beneficiary's cause of action and because no exception is provided therein for a cause of action brought against the state, § 17b-94 clearly abrogates the state's common-law right of setoff. The plaintiff further contends that the state's reliance on legislative history as evidence of the purpose of the limitation in § 17b-94 is improper and that plausible policy justifications other than those cited in that legislative history support the application of § 17b-94 to limit the state's recovery. We agree with the state.
Whether § 17b-94 operates as a limitation on § 17b93 in a cause of action brought against the state presents a question of law over which we exercise plenary review. Fennelly v. Norton, 294 Conn. 484, 492, 985 A.2d 1026 (2010). In resolving this question, we apply well settled rules of construction for the purpose of ascertaining legislative intent, beginning with the plain meaning rule set forth in General Statutes § 1-2z. If an examination of the text of the applicable statute and related statutes yields an ambiguity, we may resort to extratextual sources, such as the legislative history and circumstances surrounding the statute's enactment, the legislative policy it was designed to implement and its relationship to common-law principles governing the same general subject matter. See Board of Selectmen v. Freedom of Information Commission, 294 Conn. 438, 449, 984 A.2d 748 (2010). In addition to these generally applicable rules, in light of the nature of the particular statutory scheme and the parties' claims in relation thereto, certain other principles of construction apply. Specifically, "[i]n determining whether or not a statute abrogates or modifies a common law rule the construction must be strict, and the operation of a statute in derogation of the common law is to be limited to matters clearly brought within its scope."
We begin with § 17b-93, which both parties agree sets forth the general rule concerning the rights of the state with respect to reimbursement for state administered general assistance payments. That statute provides in relevant part: "If a beneficiary of aid under [various programs including state administered general assistance] has or acquires property of any kind or interest in any property, estate or claim of any kind, except moneys received for the replacement of real or personal property, the state of Connecticut shall have a claim subject to subsections (b) and (c) of this section ... against such beneficiary for the full amount paid, subject to the provisions of section 17b-94, to the beneficiary or on the beneficiary's behalf under said programs...." (Emphasis added.) General Statutes § 17b-93 (a).
This court long ago recognized the important governmental interest reflected in the predecessors to § 17b93 and related provisions. "[T]he underlying purpose for which [these provisions] were intended ... [is] the recoupment of public assistance funds from those now able to make repayment. The legislature and the courts recognize that public assistance grants to those in need are a worthy necessity. No less necessary is the availability of funds to these programs and it is for this purpose that the legislature has enacted such provisions as those under consideration." Thibeault v. White, 168 Conn. 112, 118, 358 A.2d 358 (1975); see also McDougald v. Norton, 361 F.Supp. 1325, 1328 (D.Conn. 1973) (stating with respect to predecessors to §§ 17b-93 and 17b-94, "[i]n view of the severe shortage of public assistance funds and the ever mounting demands on them, there is certainly a bona fide governmental interest in recouping such funds from persons who subsequently receive funds from other sources").
Section 17b-93 (a), however, expressly recognizes two limitations on the state's right to recoup public assistance funds when beneficiaries of such funds acquire property. First, the state's claim is "subject to subsections (b) and (c)" of that section. General Statutes § 17b-93 (a). Those subsections preclude claims against persons who received public assistance when under eighteen years of age; General Statutes § 17b-93 (b); and claims against funds derived from certain sources not relevant to the present case. General Statutes § 17b-93 (c).
Turning to subsection (a) of § 17b-94, we note that, although the plaintiff relies specifically on the 50 percent limitation contained therein, the broader question to be addressed is whether the provision applies generally to causes of action brought against the state.
With respect to whether these limitations apply in the present case, however, even putting aside the circular cross-references to §§ 17b-93 and 17b-94,
The use of the terms lien and assignment suggests that the overarching purpose of § 17b-94 (a) is to provide the state with a mechanism to secure and obtain payment on the debt owed to it under § 17b-93 before the funds can be disbursed by the beneficiary's attorney and thereafter dissipated by the beneficiary. See State v. Blawie, 31 Conn.Sup. 552, 555, 334 A.2d 484 (App.Div.1974) (noting that "[s]tatutes such as [the predecessor to § 17b-94 (a)] ... are intended to secure efficient avenues to state governments for
There is no need for any such mechanism or protection, however, when a beneficiary brings an action against the state. In such cases, the state must prove to the court the amount of the beneficiary's debt and the court determines the amount of setoff to which the state is entitled. Following that determination, the damages award is reduced accordingly and the state simply retains possession of those funds. When the beneficiary's action is against the state, therefore, the beneficiary's debt need not be secured by a lien, the beneficiary need not assign its interest in the cause of action to the state, and the state need not make a demand on the beneficiary's attorney to pay the debt.
Instead, by statute and under the common law, the state has a mechanism that, unlike the lien and concomitant assignment, is fully consistent with application to a cause of action brought against the state. Under General Statutes § 17b-96,
The plaintiff's reliance on language in § 17b-94 (a) providing that the state's claim "shall be a lien"; (emphasis added); as evidence of legislative intent to supplant the state's equitable right of setoff under the common law suffers from several defects in addition to those previously stated.
The language referencing a lien was added to the predecessor to § 17b-94 in 1969. Public Acts 1969, No. 730, § 29. Since at least 1947, however, the public assistance scheme has provided for a claim by the state against beneficiaries for the full amount of aid paid, when such beneficiaries acquired property; General Statutes (Cum.Sup. 1947) §§ 457i, 463i; and the attorney general has been vested with authority to bring a civil action to vindicate such claims. General Statutes (1949 Rev.) § 2881. At that time, separate provisions governed treatment of "Aid to Dependent Children" and "Assistance for the Aged," but both programs were governed by essentially the same terms as in the present case. In the 1950s, the legislature continued to require as part of the eligibility provision for assistance for the aged, the blind and the totally disabled that a beneficiary assign his or her interest in personal property; see General Statutes (1958 Rev.) § 17-114; and later specified that a beneficiary's interest in a decedent's estate or the proceeds of a cause of action was subject to assignment.
In addition to the evidence relating to the history and effect of the lien and assignment mechanisms provided under the scheme, the purpose of the subsequent amendment limiting the amount of the state's lien is inconsistent with its application to a cause of action brought against the state. The language limiting the state's lien to the lesser of the amount of the assistance paid or 50 percent of the proceeds was added to the scheme in 1984. See Public Acts 1984, No. 84-455, § 1. There is no legislative history related to that change. The following year, however, a similar limitation was added to subsection (b) of § 17-83f, the predecessor to § 17b-94, capping the amount of the state's recovery in the case of a beneficiary's inheritance of an estate to no more than 50 percent of the assets of the estate payable to the beneficiary.
"Concomitantly, this provision benefits the state. First, even while the public assistance beneficiary is alive, the state does receive up to 50 percent of the inheritance, whereas, if the beneficiary refused the inheritance, the state would receive nothing. Second, a public assistance beneficiary, by retaining the balance of his or her inheritance, may in many cases thereby become ineligible for continued public assistance due to applicable asset limitation rules.... In those cases, therefore, the state would save money by not having to continue to pay public assistance benefits. Thus, as the [state] argues, § 17b-94 (b) applies to living public assistance beneficiaries, because they are the persons to whom this calculus of incentives and benefits applies.
"This common sense reading of this statutory scheme is supported by the legislative genealogy and legislative history of § 17b-94. As originally enacted in 1969 as General Statutes § 17-83f, and until 1982, what is now § 17b-94 applied only to causes of action held by public assistance beneficiaries, and not to inheritances by such beneficiaries, and provided for reimbursement to the state for the full amount of the proceeds of any such cause of action. See General Statutes (Rev. to 1977) § 17-83f. In 1982, the statute was amended by adding a provision regarding inheritances by public assistance beneficiaries, and the same rule of full reimbursement to the state out of such inheritances was applied. See General Statutes (Rev. to 1983) § 17-83f. In 1984, the statute was again amended to reduce the amount of the state's lien against the proceeds of causes of action held by public assistance beneficiaries to the lesser of 50 percent thereof or the amount of assistance paid, but the amendment did not disturb the rule of full reimbursement out of inheritances by such beneficiaries. See General Statutes (Rev. to 1985) § 17-83f. The obvious purpose of reducing the amount of the state's lien on such proceeds and, thereby, affording some of the recovery to the public assistance beneficiary, was to give an incentive to the beneficiary to prosecute his or her cause of action, thus benefiting the beneficiary and, possibly, the state as well, as described previously.
"In 1985, however, by enacting No. 85-564 of the 1985 Public Acts, the legislature inserted the 50 percent rule into the provision regarding inheritances by public assistance beneficiaries as well, thereby providing that such beneficiaries could retain at least 50 percent of their inheritances, just as they could retain at least 50 percent of the proceeds of their causes of action. See General Statutes (Rev. to 1987) § 17-83f. The legislative debate on the bill supports the inference we have drawn from the structure and genealogy of the statutory scheme, namely, that the purpose of the 50 percent rule is to give an otherwise absent incentive to public assistance beneficiaries to take their inheritances, thus benefiting both the beneficiaries and the state. See 28 S. Proc., Pt. 11, 1985 Sess., p. 3527, remarks of Senator Joseph C. Markley; 28 H.R. Proc., Pt. 31, 1985 Sess., pp. 11401-11402,
Viewing this history in light of the issue in the present case, it seems exceedingly unlikely that the legislature intended to incentivize actions against the state by public assistance beneficiaries. In such cases, the action would not result in the replenishment of the state coffers to make funds available for others in need. See Thibeault v. White, supra, 168 Conn. at 118, 358 A.2d 358. No benefit would inure to the state. A beneficiary might have less of a need to rely on public assistance if he or she was permitted to retain a larger share of the proceeds of a cause of action against the state, but the state simply would pay out of one pocket instead of the other. The net effect would be the same. Although reading § 17b-94 (a) to apply to actions brought against the state undoubtedly would result in a benefit to the beneficiary, as Marks indicates, that benefit merely provides the incentive to achieve the state's ultimate goal of recovering more money; that benefit is not a goal in and of itself. Moreover, the beneficiary obtains some benefit from bringing an action against the state even without application of § 17b-94 because the beneficiary is relieved of the debt owed under § 17b-93 in the amount of the setoff.
We recognize the possibility that the provision of a lien and assignment in § 17b-94 (a) may simply reflect that the legislature never considered the circumstance of an action by a beneficiary against the state and, in turn, never considered whether the state's recovery should be limited in such circumstances. In light of the applicable rules of strict construction favoring the state, as we previously have discussed, we are not at liberty to interpret the statute more expansively than originally intended if the result in doing so is to limit the state's common-law right of setoff for the full debt. Indeed, even if we were free to do so, the fact that the purpose of the limitation on the lien is inconsistent with its application to a claim against the state would counsel against reading the statute to embrace such claims.
Finally, we are not persuaded by the plaintiff's argument that it would contravene public policy to construe § 17b-94 (a) to apply only to actions brought against third parties and, thus, the legislature could not have intended such an effect. Specifically, the plaintiff contends that allowing setoff of the state's claim for the full amount of repayment owed would create a class of people against whom the state could commit torts with little fear of consequence. We reject this argument for several reasons. First, there is nothing in
The judgment is reversed in part and the case is remanded with direction to render judgment in favor of the state on its counterclaim for the full amount of the setoff.
In this opinion the other justices concurred.
See footnote 12 of this opinion for the text of subsections (b) and (c) of § 17b-93.
Although § 17b-93 has been amended several times since the events giving rise to this appeal, because those changes have no bearing on the merits of this appeal, we refer to the current revision of the statute.
Although § 17b-94 has been amended since the events giving rise to this appeal, because those changes have no bearing on the merits of this appeal, we refer to the current revision of the statute.
"(c) No claim shall be made, or lien applied, against any payment made pursuant to chapter 135, any payment made pursuant to section 47-88d or 47-287, any moneys received as a settlement or award in a housing or employment or public accommodation discrimination case, any court-ordered retroactive rent abatement, including any made pursuant to subsection (e) of section 47a-14h or section 47a-4a, 47a-5 or 47a-57, or any security deposit refund pursuant to subsection (d) of section 47a-21 paid to a beneficiary of assistance under the state supplement program, medical assistance program, aid to families with dependent children program, temporary family assistance program or state-administered general assistance program or paid to any person who has been supported wholly, or in part, by the state, in accordance with section 17b-223, in a humane institution...." Chapter 135 and General Statutes §§ 47-88d and 47-287 involve relocation payments for persons displaced from housing.
"(b) In the case of causes of action, the claim of the state against the proceeds therefrom for repayment shall have priority over all other claims except attorneys' fees, expenses of suit, cost of hospitalization connected with the cause of action and, unless hospitalization was paid for by the state, physicians' fees for services connected with the cause of action; and such claim shall consist of the total assistance repayment for which claim may be made under the provisions of this chapter. Upon presentation to the attorney for the beneficiary of an assignment of such proceeds executed by the beneficiary, such assignment shall constitute an irrevocable direction to the attorney to pay the welfare commissioner in accordance with its terms."