In re Leverich

AFD-70/81303 (Wis. Dep’t of Health & Social Servs. Sept. 27, 1995). ; Clearinghouse Number: 51151

Description

Agency Equitably Estopped from Recouping Overpayment Caused by Agency’s Inaccurate Verification of Recipient’s Life Insurance Policy Cash Value

Abstract

The court has held that respondent Wisconsin Department of Health and Social Services (DHSS) is equitably estopped from recovering an AFDC overpayment from petitioner, a divorced mother of two minor children. The divorce decree ordered petitioner’s former husband to maintain petitioner’s life insurance policy for the children’s benefit. When petitioner applied for AFDC, she gave the county agency a copy of the life insurance policy, which showed a $0 cash surrender value, verified at subsequent eligibility reviews by her caseworkers. Four years later, her caseworker requested new verification of the policy’s value, which now was $1,319, exceeding the $1,000 asset limit. DHSS found that petitioner had been overpaid $2,395 in benefits and sought recoupment. The court held that DHSS was equitably estopped from recouping because DHSS caseworkers had verified that the insurance policy had no cash value at six periodic eligibility reviews from her application to when the policy’s actual cash value was discovered; petitioner reasonably relied on the information from the caseworkers; and a balance of the equities at stake weighed in petitioner’s favor. Counsel notes that the court subsequently awarded petitioner attorney fees.

Additional Information

Attorney Information
Petitioner represented by Karen S. Roehl, Legal Services of Northeastern Wisconsin, 404 N. Main St., Suite 702, Oshkosh, WI 54901, (414) 233-6521.
Docket Date
1995-09-27 00:00:00+00:00