State drops lien against Nazareth Area School District family over special education costs

FROM THE EXPRESS TIMES

A long legal battle that prevented an Upper Nazareth Township family from collecting a medical malpractice settlement for their severely injured son is coming to an end.

A traumatic brain injury suffered during childbirth left Thomas Salzman, 16, struggling with multiple learning and mental disabilities his entire life.

After a two-year legal battle, his parents received a $300,000 settlement. However, when it came time to collect, they were told there was a $50,112 lien against the settlement, and they could not receive any of it until the lien was paid.

The lien was issued by the Pennsylvania Department of Public Welfare for services Thomas received from the Nazareth Area School District, where he is a high school sophomore.

The Salzmans had been fighting the lien on two fronts. In a lawsuit against the DPW, they argued the lien should never have been issued. And, in a suit against the district, they argued if the lien stands, then the district should have to pay it.

But the DPW has agreed to withdraw the lien, which means the Salzmans will be able to collect their money and all lawsuits will be dropped, according to David Conn, the school district's attorney.

"We did believe from the beginning that the lien was inappropriate, and we're happy that the DPW is withdrawing it," Conn said. "That should be the end of the matter at this point."

Elliot Salzman, the boy's father, did not respond to a phone message for comment, nor did his attorney, Mark Voigt.

DPW spokeswoman Anne Bale said the department could not comment on a case involving children.

Conn said the judge overseeing the lawsuits will maintain jurisdiction for the next 90 days, so if the DPW does not follow through in revoking the lien, the lawsuits can be reinstated.

The DPW had issued the lien to pay for services the district provided and, since 2005, had billed Medicaid for the welfare department, according to legal documents. Those services included an educational aide and speech, language and occupational therapies.

Under the federal Individuals with Disabilities Education Act, Thomas is entitled to free special-education services. Salzman said the family didn't know the district was billing the state and that there was no indication they'd be charged for those services.

The district had argued it was correct to bill Medicaid but that the lien was improper. Conn long maintained that although the district wanted to fight the lien, they would have paid it if the courts upheld the lien.

In the Salzmans' original malpractice suit, the health care provider's insurance company went bankrupt, leaving the state of New Jersey responsible for the settlement.

Because of state law, the Salzmans' payout was capped at $300,000, according to legal documents. After legal fees, the settlement was $179,000, and would have been only $129,000 if the lien had stood.

http://www.lehighvalleylive.com/nazareth/index.ssf/2011/08/state_drops_lien_against_nazar.html