Rutan v. McMahon

PER PAOLI v. ANDERSON THE LUMP SUM RULE HAS BEEN ELIMINATED. A PERIOD OF INELIGIBILITY (POI) WILL NO LONGER BE ESTABLISHED. Refer to Paoli v. Anderson.

Issue

The Court has ordered the State to stop applying the lump sum regulations to the income of clients who have not received a written notice explaining the lump sum rule prior to spending the income.

Date the Court Issued the Injunction

August 25, 1986

Retroactivity

All cases that have had the lump sum rule applied since April 2, 1982 and which are currently in a period of ineligibility must be reviewed. In some cases recomputation of the period of ineligibility and of related overpayments will be required. The CROP Unit will be responsible for this phase.

Duration

The Injunction is a preliminary one with continuing effects. The Court has approved and ordered the State to use the form Temp 1683 “Informing Notice” to notify clients of the lump sum rule.  Refer to Paoli v. Anderson.

Related Topics

Brown v. McMahon

Paoli v. Anderson