FILED: December 16, 1998
STATE OF OREGON, Acting by and
through Department of Human Resources
and Senior and Disabled Services
Division,
Respondent,
v.
SHARON D. PAYNE, in her capacity
as Personal Representative of the
Estate of Myrtle Payne,
Appellant.
Appeal from Circuit Court, Multnomah County.
Joe D. Bailey, Judge pro tempore.
Argued and submitted May 11, 1998.
Richard S. Diaz argued the cause for appellant. With him on the briefs was MacPherson, Gintner, Gordon & Diaz.
Jas. Adams, Assistant Attorney General, argued the cause for respondent. With him on the brief were Hardy Myers, Attorney General, and Michael D. Reynolds, Solicitor General.
Before Deits, Chief Judge, and De Muniz and Haselton, Judges.
DEITS, C. J.
Affirmed.
DEITS, C. J.
Plaintiff, the State of Oregon, made a claim against the estate of Myrtle
Payne, pursuant to ORS 414.105, to recover medical assistance payments that had been
made to the decedent. Defendant personal representative disallowed the claim. Plaintiff
then brought this action pursuant to ORS 115.145(1)(b) but did not do so within the 30-day period following the disallowance that ORS 115.145(1) prescribes. Defendant
pleaded as an affirmative defense that the action is time-barred, to which plaintiff
responded that it, as a governmental body, is not subject to statutes of limitations. Both
parties moved for summary judgment. There are no disputed material questions of fact.
The decisive issue is which party is correct, as a matter of law, as to whether ORS
115.145 bars plaintiff's action.(1) The trial court agreed with plaintiff and granted its
motion and denied defendant's. Defendant appeals, assigning error to the trial court's
rulings on the summary judgment motions. We affirm.
ORS 115.145 provides:
"(1) If the personal representative disallows a claim in whole or in
part, the claimant, within 30 days after the date of mailing or delivery of the
notice of disallowance, may either:
"(a) File in the estate proceeding a request for summary
determination of the claim by the probate court, with proof of service of a
copy of the request upon the personal representative or the attorney for the
personal representative; or
"(b) Commence a separate action against the personal representative
on the claim in any court of competent jurisdiction. The action shall
proceed and be tried as any other action.
"(2) If the claimant fails to either request a summary determination
or commence a separate action as provided in subsection (1) of this section,
the claim, to the extent disallowed by the personal representative, is barred.
"(3) In a proceeding for summary determination of a claim or in a
separate action on a claim the claim shall be allowed or judgment entered
on the claim in the full amount of the liability, if any, of the decedent to the
claimant. However, the claim shall be paid only to the extent of the assets
of the estate allocable to the payment of the claim pursuant to ORS 115.115
and 115.125."
ORS 12.250 provides:
"Unless otherwise made applicable thereto, the limitations
prescribed in this chapter shall not apply to actions brought in the name of
the state, or any county, or other public corporation therein, or for its
benefit."
Since its enactment in 1903, ORS 12.250 has been interpreted and applied according to
its terms in decisions by the Supreme Court and this court. The most recent significant
interpretation is in City of Medford v. Budge-McHugh Supply Co., 91 Or App 213, 754
P2d 607, rev den 306 Or 661 (1988), where we discussed the statute, the earlier case law
construing it, and held that it applied to limitation provisions outside ORS chapter 12 as
well as the provisions in that chapter.
Defendant argues that ORS 12.250 does not apply here, because ORS
115.145(1) is not a limitation statute of a kind that simply bars a remedy. Rather, she
maintains, the time for bringing the action that the statute specifies is part of the right of
action. She relies for that distinction on Lamb v. Young, 250 Or 228, 230-31, 441 P2d
616 (1968), where the court explained that, "unlike general statutes of limitations," which
affect
"only the remedy, not the right, * * * some statutes stating the time within
which one must bring an action to enforce a right created by the statute do
more than state a time within which the remedy must be commenced. In
such statutes, the right, not just the remedy, is extinguished if the right is
not asserted within the time specified."
The practical effect of the distinction is that, in cases where the "right" is "extinguished,"
the plaintiff is per se not entitled to proceed, whereas the plaintiff is barred under
"general statutes of limitation" only if the defendant asserts and establishes the
untimeliness of the action.
The court in Lamb relied principally on its earlier decision in Richard v.
Slate, 239 Or 164, 396 P2d 900 (1964), overruled on other grounds, Rennie v. Pozzi, 294
Or 334, 656 P2d 934 (1982).(2) The court in Richard had applied the rationale, later
endorsed in Lamb, in holding that the limitation period in the wrongful death statute was
"a part of the right and not a statute of limitations." Richard, 239 Or at 168. The court
explained:
"The right of action for wrongful death is statutory, for it is well-established that at common law no remedy by way of a civil action for
wrongful death existed. The action for injury died with the person. * * *
"ORS 30.020 created a new right and a new liability, and is not a
survival statute." Id. at 167 (citations omitted). See also Greist v. Phillips,
322 Or 281, 906 P2d 789 (1995).
Defendant argues that probate claims and ensuing judicial procedures
under ORS 115.145, like the subjects of the cited cases, are statutory creatures and that
the time limits they contain are therefore part of the right rather than limitations on the
remedy. We disagree. The statutory procedures for pursuing claims against an estate do
not create a right; they provide a mechanism for vindicating rights that exist
independently of them. The state's right to pursue the medical assistance payments in
this case is codified in ORS 414.105 and, under subsection (1) of that section, the state
had a direct right of action to recover the payment from the decedent before her death.
Moreover, ORS 414.105 itself has non-statutory underpinnings; it codifies a variation of
the common law action for money had and received which, in turn, has precursors dating
to the forms of action.
The best way to illustrate the proposition is by comparison with the
wrongful death statute. As noted in Richard, the wrongful death act is not a "survival
statute." Conversely, the probate code is. ORS 115.305 provides that "[a]ll causes of
action or suit, by one person against another, survive to the personal representative of the
former and against the personal representative of the latter." The claim provisions of the
probate code simply provide the procedures by which claims and ensuing actions against
the estate, including those that were viable but had not been instituted before the
decedent's death, may be pursued. See Thomas v. Senior and Disabled Services Div.,
319 Or 520, 529, 878 P2d 1081 (1994) (in claim against estate under ORS 414.105(2),
the "remedy of statutory interest under ORS 82.010(1)(a)" is available, "but only through
those procedures specifically provided in the probate code") (emphasis added).
We conclude that the probate claims procedure is not analogous to the
statutorily created rights of action considered in Lamb and related cases but is instead a
statutory mechanism for vindicating rights that have their origins elsewhere. Although
defendant phrases her arguments in various ways (e.g., "jurisdiction," "indispensable
condition"), none of them has merit apart from her premise that the probate statutes are
the source of plaintiff's right of action.(3)
The only question that remains is whether ORS 115.145 is a statute of
limitations for purposes of ORS 12.250, leaving aside the Lamb and related rationales
that defendant espouses. The answer to that question is not difficult. ORS 115.145(1)(b)
is a statute of limitation, because it places a limit on the time within which an action of
this precise kind may be brought. See Ben Rybke Co. v. Royal Globe Insurance Co., 293
Or 513, 518, 651 P2d 138 (1982) (effect of statutes of limitations is "to set a maximum
time within which a lawsuit may be filed"). ORS 115.145 is a statute of limitations and
ORS 12.250 makes it inapplicable to plaintiff. City of Medford, 91 Or App 213. The
trial court did not err in granting plaintiff's motion for summary judgment.(4)
Affirmed.
1. The state makes an alternative argument based on a theory that defendant
waived the benefit of ORS 115.145. We need not reach that argument.
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2. In Nichols v. Wilbur, 256 Or 418, 420, 473 P2d 1022 (1970), the court
indicated that Richard "is to be disregarded" with respect to still another different
ground. However, the point in Richard for which it was cited in Lamb appears to remain
viable. In Owens v. Maass, 323 Or 430, 439, 918 P2d 808 (1996), the Supreme Court
cited Lamb and adhered to the proposition that some statutorily created rights are
extinguished by the running of "time limitations" that are contained in the creating
statute. Richard is still good authority on that issue.
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3. Defendant relies on Hovden and Hovden, 104 Or App 514, 802 P2d 89
(1990). Hovden is not on point. In that support arrearage action, the state invoked ORS
12.250 as support for its thesis that it retained enforcement rights in a judgment that had
expired under and had not been renewed pursuant to ORS 18.360. We concluded that
ORS 18.360 is not a statute of limitations on the bringing of an action and, further, that
there was direct evidence in the statutory scheme of a legislative intent to make ORS
18.360 applicable to the state. Neither basis for our holding in Hovden is relevant here.
Defendant also seeks support in the fact that ORS 115.145(3) and other
provisions of the probate code place limits and priorities on the amounts some claimants
may recover. However, that does not alter the fact that the underlying right of action
exists independently of the probate code. See Lakin v. Senco Products, Inc., 144 Or App
52, 79, 925 P2d 107 (1996), rev allowed 325 Or 438 (1997).
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4. We have considered but are not persuaded by defendant's remaining arguments. Insofar as defendant contends that ORS 115.145 or related statutes contain provisions that make its limitation period applicable to the state, within the meaning of the first clause of ORS 12.250, we disagree. Defendant's contention that the applicability of ORS 12.250 offends the probate code's policies of finality and expeditiousness is for the legislature.
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