Sullivan v. County of Suffolk, 174 F.3d 282 (2nd Cir. 1999)

A tort plaintiff sought to fund his special needs trust without first repaying the Medicaid lien. Citing Norwest, the Court concluded that 1396p(d)(4) does not alter Medicaid’s right to recover on its lien prior to funding a special needs trust. The recipient’s rights against the third-party tortfeasor were assigned when he applied for and received Medicaid. The Medicaid recipient cannot defer payment of settlement proceeds to which he has no right to recover. NEGATIVE HISTORY NOTED.

cert. denied, 528 U.S. 950 (1999).