United States v. Housing Authority of City of Bremerton, 22611.

• Decision Date: 04 August 1969
• Docket Number: No. 22611.,22611.
• Parties: UNITED STATES of America, Appellant, v. HOUSING AUTHORITY OF the CITY OF BREMERTON, a Public Body Politic and Corporate, Appellee.
• Court: U.S. Court of Appeals — Ninth Circuit

415 F.2d 239 (1969)

UNITED STATES of America, Appellant, v. HOUSING AUTHORITY OF the CITY OF BREMERTON, a Public Body Politic and Corporate, Appellee.

No. 22611.

United States Court of Appeals Ninth Circuit.

August 4, 1969.

Stephen R. Felson (argued), Edwin L. Weisl, Jr., Asst.Atty.Gen., Morton Hollander, Daniel Joseph, Attys., Washington, D. C., Eugene G. Cushing, U. S. Atty., Seattle, Wash., for appellant.

John A. Roberts, Jr., (argued) of Hullin, Ehrlichman, Roberts & Hodger, Seattle, Wash., for appellee.

Before BARNES, HAMLIN and MERRILL, Circuit Judges.

HAMLIN, Circuit Judge.

The United States instituted this suit in the district court pursuant to the Medical Care Recovery Act, 42 U.S.C. § 2651. In the suit the United States sought to recover for the value of medical care furnished by it to the infant daughter of an enlisted man in the Navy. The district court, holding that the United States should have sought recovery by intervening in a prior suit brought on behalf of the daughter against the Housing Authority, dismissed the action. It is from this dismissal that the United States appeals, under 28 U.S.C. § 1291. We reverse.

Carrie Thomas, an 18-month old infant, was severely burned when she opened a hot water faucet in her home. The home was located in a housing project under the control of the Housing Authority of Bremerton, Washington. Because she was the infant daughter of an enlisted man on active duty in the Navy, the United States was required by law to furnish, and did furnish, hospital and medical care to the child. In September, 1963, the daughter, by her father, brought suit against the Housing Authority. The United States, although it had notice of the suit, took no steps to intervene. A jury determined that the accident had been caused by the negligence of the Housing Authority, and rendered damages in favor of the daughter which explicitly did not include any amount for medical or hospital expenses. In September, 1965, the United States filed the instant action to recover for the value of the hospital and medical expenses, stipulated by the parties to amount to $3275.00. The Housing Authority contends that the United States is barred from recovery because of its failure to intervene in the prior suit. Additionally, it urges that should the suit be permitted, the case should be remanded to the district court to permit the Housing Authority to show that the parents had been contributorily negligent, and that their negligence bars recovery by the United States.¹

42 U.S.C. § 2651(a) states the basic right of the United States to recover for medical services rendered under the circumstances of this case:

"In any case in which the United States is authorized or required by law to furnish hospital, medical, surgical, or dental care and treatment * * * to a person who is injured * * * under circumstances creating a tort liability upon some third person * * * to pay damages therefor, the United States shall have a right to recover from said third person the reasonable value of the care and treatment so furnished * * * and shall, as to this right be subrogated to any right or claim that the injured or diseased person * * has against such third person to the extent of the reasonable value of the care and treatment so furnished * * *."

All courts which have considered the question have agreed that the statute gives the United States an independent right of recovery against the tortfeasor; the United States is not merely subrogated to the injured party's claim. E. g., United States v. York, 398 F.2d 582 (6th Cir. 1968); United States v. Merrigan, 389 F.2d 21 (3rd Cir. 1968); United States v. Wittrock, 268 F.Supp. 325 (E.D.Pa.1967).

The issue which has created some uncertainty under the Medical Care Recovery Act is the method by which the United States may enforce this independent right. The enforcement provision, section 2651(b), states:

"The United States may, to enforce such right, (1) intervene or join in any action or proceeding brought by the injured or diseased person * * against the third person who is liable for the injury or disease; or (2) if such action or proceeding is not commenced within six months after the first day in which care and treatment is furnished by the United States in connection with the injury * * * involved, institute and prosecute legal proceedings against the third person who is liable for the injury * * *."

Thus, the statute authorizes the United States to enforce its independent right either by intervention in a suit brought by the injured party, or on its own if no such action is brought for six months. But the statute is silent on the situation involved in the instant case; the injured person did institute a legal action against the tortfeasor within six months, but the United States did not intervene. However, since the decision of the district court in this case, two Circuits have decided that the United States may bring an independent action against the tortfeasor despite its failure to intervene. York, supra;Merrigan, supra.

We agree that the United States may maintain this suit against the Housing Authority, following the reasoning of the York and Merrigan courts. The key to the interpretation of section 2651 (b) is that it is phrased in permissive, rather than mandatory, terms. It states that the United States may intervene in an action brought by the injured party against the tortfeasor. Especially since section (a) gives the United States an independent right of recovery, such permissive language cannot be read as meaning that it is the exclusive method by which the United States may enforce its right. "When a specific interest and right has been conferred upon the United States by statute, the remedies and procedures for enforcing that right are not to be narrowly construed so as to prevent the effectuation of the policy declared by Congress." United States v. York, supra, 398 F.2d at 586. Thus, even where a suit is brought by the injured party within six months and the United States does not intervene, the language of section 2651(b) does not prevent the United States from instituting its own suit.

This conclusion is buttressed by further considerations. As noted by the court in Merrigan, supra, nothing in the Act requires that the injured person give the United States notice of his suit against the tortfeasor. Here the United States did in fact receive notice of the injured infant's suit shortly before her case went to trial. However, if the United States were required to intervene at the risk of forfeiting its right, surely Congress would have required that the United States be given notice.

Furthermore, this interpretation casts only a slight additional burden of multiple litigation upon a tortfeasor. Multiple litigation can occur even under the Housing...