Kahrs v. Sanchez

Certiorari denied, No. 24,831, February 25, 1998 APPEAL FROM THE DISTRICT COURT OF CHAVES COUNTY ALVIN F. JONES, District Judge {1} On August 1, 1997, this Court filed its opinion in this case. On August 26, 1997, the New Mexico Human Services Department (HSD) filed a motion for rehearing. Thereafter, this Court ordered Plaintiff to file a response to the motion for rehearing, which response was filed on October 17, 1997. We hereby deny HSD's motion, but we withdraw our opinion of August 1, 1997, and substitute this opinion in its place. {2} In this case we are called upon to interpret HSD's statutory right to reimbursement of medicaid expenditures from a medicaid recipient's claim against a third-party tortfeasor. See NMSA 1978, 27-2-28(G)(1)(b) (1995) (providing for assignment to HSD of right to recovery against tortfeasor); NMSA 1978, 27-2-23(B) (1969) (providing for subrogation of recipient's right to recover medical expenses from third party). Plaintiff is the recipient, and co-defendant Karen Sanchez (Sanchez) is the third-party tortfeasor. HSD contends that its right to reimbursement is controlled by Section 27-2-28(G) and that assignment by operation of law entitles HSD to full reimbursement regardless of the facts. We disagree and affirm the trial court's equitable reduction.