Probate & Trust Law Section Conference Manual ... - Minnesota CLE

federal law. See 42 U.S.C. § 1396p(b). The defendants argued
that federal law does not allow a transferee cause of action when a
hardship waiver is granted. Douglas County argued that the federal
statute does not apply.
5. On July 28, 2010, Judge David R. Battey issued his decision
denying the County's Motion for Partial Summary Judgment, and
granting the Defendent's Motion for Summary Judgment.
6. The Court's memorandum concluded with the following statements:
The County is correct; Congress was in fact
concerned that people would transfer assets for less
than fair market value. However it addressed the
issue by requiring a period of ineligibility for those
who did. It did not leave open the possibility for
states to create separate claims against third parties
for medical assistance correctly paid. The Court
acknowledges that, from a policy standpoint,
preempting Minnesota's cause of action against
transferees could lead to individuals transferring
large amounts of assets to non-dependent children in
hopes of receiving publicly-funded assistance;
however, it is clear Congress considered this, and
added the ineligibility period to combat this potential
problem.
For those reasons, the Court finds that 42 U.S.C. section
1396p(b) preempts Minnesota Statutes section 256B.0595,
subd. 4b(b). Because section 256B.0595, subd. 4b(5) is
preempted, summary judgment is granted in favor of the
Defendants. 36
7. The rationale of the Lindgren decision would apply to all of the
"transferee cause of action" provisions in Minn. Stat. § 256B.0595.
8. Douglas County appealed the Lindgren decision to the Court of
36
The citation to Minn. Stat. § 256B.0595, subd. 4b(5) is a typographical error and incorrect.
The correct citation to the specific statute under which the cause of action was brought is to
256B.0595 (2009), subd. 3(b). Subdivision 4b was enacted in 2003 but has never become
effective because it has been blocked by federal law. The citation was corrected in the amended
order.
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