Dcpp v. H.V.
CourtNew Jersey Superior Court Appellate Division
Date FiledJune 16, 2026
DocketA-3362-23/A-3391-23/A-3710-23/A-3789-23/A-3791-23/A-3850-23/A-3898-23/A-4045-23/A-0097-24/A-0102-24/A-0103-24/A-0271-24/A-1801-24/A-1802-24
StatusPublished
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Full Opinion
RECORD IMPOUNDED
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NOS. A-3362-23
A-3391-23
A-3710-23
A-3789-23
A-3791-23
A-3850-23
A-3898-23
A-4045-23
A-0097-24
A-0102-24
A-0103-24
A-0271-24
A-1801-24
A-1802-24
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent, APPROVED FOR PUBLICATION
June 16, 2026
v.
APPELLATE DIVISION
H.V.,1
Defendant-Respondent,
and
W.D., deceased,
1
We use initials to protect privacy of the families' identities. R. 1:38-
3(d)(12).
Defendant.
_________________________
IN THE MATTER OF I.V.,
a minor,
Appellant.
_________________________
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
v.
D.K.L.H., deceased,
Defendant,
and
T.T.H., SR.,
Defendant-Respondent.
_________________________
IN THE MATTER OF T.T.H.,
JR. and C.C.P.H., minors,
Appellants.
_________________________
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
A-3362-23
2
v.
A.D.,
Defendant-Respondent,
and
A.H., deceased,
Defendant.
_________________________
IN THE MATTER OF A.R.H.
and A.H., minors,
Appellants.
_________________________
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
v.
C.J., deceased and
R.A., deceased,
Defendants.
________________________
IN THE MATTER OF C.J.
and A.K.A., minors,
Appellants.
________________________
IN THE MATTER OF M.V.
A-3362-23
3
________________________
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
v.
J.L.P. and B.J.W.,
Defendants-Respondents.
__________________________
IN THE MATTER OF J.C.P.,
J.E.P., and J.M.P., minors,
Appellants.
__________________________
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
v.
S.D., deceased, B.S., and
A.M.,
Defendants-Respondents.
__________________________
IN THE MATTER OF M.M.,
a minor,
Appellant.
__________________________
A-3362-23
4
NEW JERSEY DIVISION OF
CHILD PROTECTION AND
PERMANENCY,
Plaintiff-Respondent,
v.
J.G., JR., D.P., and H.G.,
Defendants-Respondents,
and
R.F.,
Defendant.
__________________________
IN THE MATTER OF J.G., III
and I.G., minors,
Appellants,
and
H.G., a minor,
Respondent.
__________________________
Argued April 14, 2026 – Decided June 16, 2026
Before Judges Sumners, Susswein and Augostini.
On appeal from the Superior Court of New Jersey,
Chancery Division, Family Part, Sussex County,
Docket No. FN-19-0011-23, Monmouth County,
Docket Nos. FN-13-0056-22 and FN-13-0147-22,
Somerset County, Docket No. FN-18-0124-22,
A-3362-23
5
Hudson County, Docket No. FC-09-0184-20, Ocean
County, Docket No. FN-15-0045-23, Bergen County,
Docket No. FN-02-0021-23, and Cumberland County,
Docket No. FN-06-0087-23.
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellant I.V. in A-3362-23
(Jennifer N. Sellitti, Public Defender, Law Guardian,
attorney; Meredith Alexis Pollock, of counsel and on
the briefs; Todd Wilson, Designated Counsel, on the
briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellants T.T.H. and C.C.P.H. in
A-3391-23 and A-3850-23 (Jennifer N. Sellitti, Public
Defender, Law Guardian, attorney; Meredith Alexis
Pollock, of counsel and on the briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellants A.R.H. and A.H. in A-
3710-23 and A-3898-23 (Jennifer N. Sellitti, Public
Defender, Law Guardian, attorney; Meredith Alexis
Pollock, of counsel; Jennifer M. Sullivan, Assistant
Deputy Public Defender, of counsel and on the briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellants C.J. and A.K.A. in A-
3789-23 and A-3791-23 (Jennifer N. Sellitti, Public
Defender, Law Guardian, attorney; Meredith Alexis
Pollock, of counsel and on the briefs; Todd Wilson,
Designated Counsel, on the briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellant M.V. in A-4045-23
(Jennifer N. Sellitti, Public Defender, Law Guardian,
attorney; Meredith Alexis Pollock, of counsel; Neha
Gogate, Assistant Deputy Public Defender, of counsel
and on the briefs).
A-3362-23
6
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellants J.C.P., J.E.P., and
J.M.P. in A-0097-24, A-0102-24, and A-0103-24
(Jennifer N. Sellitti, Public Defender, Law Guardian,
attorney; Meredith Alexis Pollock, of counsel and on
the briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellant M.M. in A-0271-24
(Jennifer N. Sellitti, Public Defender, Law Guardian,
attorney; Meredith Alexis Pollock, of counsel and on
the briefs; Neha Gogate, Assistant Deputy Public
Defender, of counsel and on the briefs).
Meredith Alexis Pollock, Deputy Public Defender,
argued the cause for appellants J.G., III and I.G. in A-
1801-24 and A-1802-24 (Jennifer N. Sellitti, Public
Defender, Law Guardian, attorney; Meredith Alexis
Pollock, of counsel; Daniel L. J. Adamek, Assistant
Deputy Public Defender, of counsel and on the briefs).
Adrienne Kalosieh, Assistant Deputy Public Defender,
argued the cause for respondent H.V. in A-3362-23
(Jennifer N. Sellitti, Public Defender, attorney;
Adrienne Kalosieh, of counsel and on the brief).
Jennifer N. Sellitti, Public Defender, attorney for
respondent A.D. in A-3710-23 and A-3898-23
(Richard Foster, Deputy Public Defender, of counsel
and on the brief).
Jennifer N. Sellitti, Public Defender, attorney for
respondent J.L.P. in A-0097-24, A-0102-24, and A-
0103-24 (T. Gary Mitchell, Deputy Public Defender,
of counsel and on the brief).
Adrienne Kalosieh, Assistant Deputy Public Defender,
argued the cause for respondent H.G. in A-1801-24
and A-1802-24 (Jennifer N. Sellitti, Public Defender,
A-3362-23
7
attorney; Adrienne Kalosieh, of counsel and on the
brief).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-3362-23 (Jennifer
Davenport, Attorney General, attorney; Janet
Greenberg Cohen, Assistant Attorney General, of
counsel; Michelle McBrian, Deputy Attorney General,
on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-3391-23 and A-3850-
23 (Jennifer Davenport, Attorney General, attorney;
Janet Greenberg Cohen, Assistant Attorney General,
of counsel; Wesley Hanna, Deputy Attorney General,
on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-3710-23 and A-3898-
23 (Jennifer Davenport, Attorney General, attorney;
Janet Greenberg Cohen, Assistant Attorney General,
of counsel; Julia B. Colonna, Deputy Attorney
General, on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-3789-23 and A-3791-
23 (Jennifer Davenport, Attorney General, attorney;
Janet Greenberg Cohen, Assistant Attorney General,
of counsel; Wesley Hanna, Deputy Attorney General,
on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-4045-23 (Jennifer
Davenport, Attorney General, attorney; Janet
Greenberg Cohen, Assistant Attorney General, of
A-3362-23
8
counsel; Nicholas Dolinsky, Deputy Attorney General,
on the brief).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent New Jersey Division of Child
Protection and Permanency in A-0097-24, A-0102-24,
and A-0103-24 (Jennifer Davenport, Attorney
General, attorney; Janet Greenberg Cohen, Assistant
Attorney General, of counsel; Wesley Hanna, Deputy
Attorney General, on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent in A-0271-24 (Jennifer
Davenport, Attorney General, attorney; Janet
Greenberg Cohen, Assistant Attorney General, of
counsel; Nicholas Dolinsky, Deputy Attorney General,
on the briefs).
Leah A. Schmidt, Deputy Attorney General, argued
the cause for respondent in A-1801-24 and A-1802-24
(Jennifer Davenport, Attorney General, attorney; Janet
Greenberg Cohen, Assistant Attorney General, of
counsel; Wesley Hanna, Deputy Attorney General, on
the briefs).
Randi Mandelbaum argued the cause for amici curiae
Rutgers Child Advocacy Clinic, and Advocates for
Children of New Jersey (Rutgers Child Advocacy
Clinic, and Advocates for Children of New Jersey,
attorneys; Randi Mandelbaum, Mary E. Coogan, Jared
M. H. Flanery, and Meghan K. Knapp, on the briefs).
Mitchell Y. Mirviss (Venable LLP) of the District of
Columbia and Maryland bars, admitted pro hac vice,
argued the cause for amici curiae Children's Advocacy
Institute, Children's Rights, Facing Foster Care in
Alaska, Juvenile Law Center, Lawyers for Children,
Legal Aid Society, National Center for the Rights of
Abused Children, National Foster Youth Institute, and
Nebraska Appleseed Center for Law in the Public
A-3362-23
9
Interest in A-1801-24 and A-1802-24 (Mitchell Y.
Mirviss, attorney; Mitchell Y. Mirviss, Jessie F.
Beeber (Venable LLP) of the New York bar, admitted
pro hac vice, and Stephanie P. Diu (Venable LLP) of
the New York bar, of counsel; Patrick J. Boyle and
Michael A. Guerra, on the brief).
The opinion of the court was delivered by
SUMNERS, JR., C.J.A.D.
In these fourteen appeals, which were calendared back-to-back, argued
together, and consolidated for purposes of issuing a single opinion, we are
asked to determine whether the Division of Child Protection and Permanency
(Division), in its capacity as representative payee designated by the Social
Security Administration (SSA), can use the fourteen minors' Supplemental
Security Income (SSI) or Old Age, Survivors, and Disability Insurance
(survivor) benefits (collectively, Social Security benefits) to reimburse itself
for the maintenance costs incurred for the minors' care and custody.
The eight Family Part courts issued orders dismissing the minors'
motions to terminate the Division's reimbursement practice. The courts, in
various ways, determined that: (1) they lacked subject matter jurisdiction
because the issue was preempted by the Social Security Act (the Act); (2) the
Division's practice does not violate state law; (3) the minors' due process rights
were not violated by the Division's failure to notify them of its intent to use
their Social Security benefits for reimbursement; and (4) the minors' equal
A-3362-23
10
protection rights were not violated when the Division used their Social
Security benefits for reimbursement but did not seek reimbursement from
minors without Social Security benefits. We affirm the dismissal orders but
take a different path in doing so.
We disagree with the trial courts' determination that federal law
preempts state court review. Several states, including New Jersey through
N.J.S.A. 9:6B-7, have enacted laws specifying how, if at all, their
administrative agencies can use the Social Security benefits of minors under
state care and custody for reimbursement of maintenance costs, and the
Supreme Court of the United States has approved of such practices. Because
Congress's intent to fully occupy the field is not clear from federal law, and
family law is an area of law traditionally regulated by states, state courts can
review the minors' claims against the Division.
We, however, agree with some of the trial courts' determinations that the
Division's actions did not violate state law. Until the recent enactment of
N.J.S.A. 9:6B-7, effective December 1, 2026, state law has not prohibited the
Division's reimbursement efforts. See L. 2025, c. 162 § 1. And although
N.J.S.A. 30:4C-30 requires the State to bear the cost of maintenance for
children under its care and custody, N.J.S.A. 30:4C-22 allows the Division to
apply funds—other than earned income, the corpus of a trust, devise or
A-3362-23
11
intestate share, insurance proceeds or a personal injury award—to offset
maintenance expenses for a child under its custody, care, guardianship, or
placed in a resource family home. We hold that SSA representative payee
accounts are not trust accounts and are not excluded as a permissible source of
reimbursement.
Furthermore, we conclude that the minors' due process and equal
protection claims lack merit. The Division's failure to provide advance notice
of its intent to file a representative payee application does not violate the
minors' due process rights because the risk of erroneous deprivation is low, the
current procedures afford sufficient notice, and additional procedures would
not affect a minors' eligibility for benefits. As for the equal protection claim,
the minors do not show that they are similarly situated to the proposed
comparator groups because the alleged distinctions are created by the Act not
the Division. Moreover, the Division's policy survives rational basis scrutiny
as the State has a legitimate interest in the policy which is rationally related to
the classification it has created.
I.
We briefly summarize the undisputed factual and procedural background
involving each minor appellant:
I.V., A-3362-23: Survivor Benefits
A-3362-23
12
I.V. was born on May 6, 2008 to H.V. (mother) and W.D. (father).
Following W.D.'s death in January 2020, I.V. began receiving survivor
benefits under the Act. On July 19, 2022, the trial court issued an order
approving I.V.'s removal and granting the Division's application for ongoing
care, custody, and supervision of I.V. H.V. consented to the trial court's order,
and the Division placed I.V. in the care of L.L. (maternal grandmother).
In October of 2022, the SSA granted the Division's application to be
appointed I.V.'s representative payee. About two months later, the SSA denied
L.L.'s application to become I.V.'s representative payee, stating "it would be
best for [I.V.] to have his checks sent to another payee." The Division later
used I.V.'s survivor benefits to offset maintenance costs for his care.
Subsequent efforts by I.V. to prevent the Division from using his
survivor benefits to offset maintenance costs and to have L.L. or H.V. become
his representative payee culminated in an April 24, 2024 court order denying
I.V.'s reconsideration motion. The court reiterated its denial of I.V.'s
requested relief in its August 9, 2023 order dismissing his motion without
prejudice because he had not exhausted administrative remedies under the Act.
The court noted in its oral decision that the Division "was not acting in [I.V.'s]
best interests" and that the funds "should be held in trust for [I.V.]" but it was
A-3362-23
13
constrained by the procedural requirements under the Act. On May 15, 2024,
the court issued an order and oral decision terminating the litigation.
T.T.H., JR. and C.C.P.H., A-3391-23 & A-3850-23: Survivor Benefits
T.T.H., Jr., born October 28, 2008, and C.C.P.H., born July 10, 2011, are
the sons of D.H., their mother, who died in October 2021. Three days after
D.H.'s death, the trial court granted the Division's request for custody and care
of the children at an order to show cause hearing. The minors' father had
previously been ordered not to have contact with them.
On January 23, 2022, the SSA approved the Division's application to
serve as the minors' representative payee. The Division applied the funds to
their maintenance expenses and held any excess money on their behalf in
interest-bearing accounts.
On July 9, 2023, T.T.H., Jr. and C.C.P.H. filed a motion seeking that the
court: require the Division to cease using their survivor benefits to reimburse
maintenance costs and return all funds; prevent the Division from objecting to
the maternal grandmother's application to serve as their representative payee;
and compel an accounting of the survivor benefits it received.
On January 12, 2024, the trial court issued an order and statement of
reasons denying the minors' motion, finding that "federal preemption
prevent[ed] [it] . . . from granting the [requested] relief." Three months later,
A-3362-23
14
the court denied their reconsideration motion and granted the minors'
application for a stay of the disbursement of any SSI funds pending appeal.
On June 24, the court issued an order and oral decision terminating
litigation and granting Kinship Legal Guardianship (KLG) to the maternal
grandmother.
A.R.H. and A.H., A-3710-23: Survivor Benefits
A.R.H., born January 16, 2008, and A.H., born September 2, 2013, are
the children of A.D., the mother, and A.H., the father. A.H. passed away in
September 2018, and A.D. was designated as the representative payee of the
minors' survivor benefits.
On January 26, 2022, the Division removed the children from their
mother's care due to physical abuse and substance abuse issues and placed
them with a paternal uncle. Two days later, the court issued an order and oral
decision placing the children in the Division's custody.
On June 29, the SSA approved the Division's application to serve as the
minors' representative payee. The minors subsequently moved to enjoin the
Division from using their survivor benefits to reimburse maintenance costs,
return the benefits that had been applied to maintenance costs, and provide an
accounting of the benefits received.
A-3362-23
15
On May 30, the trial court issued an order and written decision denying
the minors' motion, finding that their arguments were preempted by federal
law, and dismissing their due process and equal protection arguments based on
Guardianship Estate of Keffeler v. State (Keffeler III), 88 P.3d 949 (Wash.
2004). Three weeks later, the court issued an order terminating litigation
because the minors were placed in the care of their maternal grandparents.
C.J. and A.K.A., A-3789-23 & A-3791-23: Survivor Benefits
C.J., born September 27, 2007, and A.K.A., born April 6, 2009, share a
mother but have different fathers. Their mother passed away in May 2022.
On June 27, 2022, the trial court granted the Division's application for
custody and care of the minors. A few months later, the SSA approved the
Division's application to serve as the minors' representative payee.
On April 29, 2024, the minors moved to have the Division cease using
their survivor benefits to reimburse maintenance costs, objected to the
maternal grandmother's appointment as representative payee, requested the
return of the benefits, and asked for an accounting of the benefits received.
The trial court denied the motion in a June 4 order and a statement of reasons
finding that it lacked jurisdiction over federal claims but granted the minors'
accounting demands. Two weeks later, the trial court issued a written order
terminating litigation and granting KLG to the maternal grandmother.
A-3362-23
16
M.V., A-4045-23: Survivor Benefits
M.V. was born on August 28, 2018. His father passed away almost two
months before his birth.
On February 25, 2020, M.V. was removed from his mother's custody due
to her substance abuse. Three months later, the SSA approved the Division's
application to serve as the minor's representative payee.
A February 22, 2022 court order placed M.V. under the Division's
guardianship, which was affirmed on appeal. N.J. Div. of Child Prot. &
Permanency v. T.M., No. A-2072-21 (App. Div. Apr. 11, 2023) (slip op. at
17).
Following a court-ordered accounting of the Division's use of the
survivor benefits, M.V. moved on December 21, 2023, to compel the Division
to return $15,870 it withdrew from his payee account while he was in
placement. On July 11, 2024, the trial court issued an order and oral decision
denying M.V.'s motion, finding that he failed to show there was "an excess of
funds that should have been set aside for [him] in a[n] [interest bearing
account]" since the monthly reimbursement cost was $763 and exceeded the
monthly SSI benefits of $411. Although the trial court didn't address federal
preemption, it reasoned that the Division's actions complied with the Act.
A-3362-23
17
That same day, the trial court terminated the litigation because M.V. was
adopted by his paternal aunt.
J.C.P., J.E.P., and J.M.P., A-0097-24, A-0102-24 & A-0103-24: SSI
Benefits
J.C.P., J.E.P., and J.M.P. are triplets with multiple disabilities born on
February 19, 2013. The SSA found them eligible for SSI benefits on January
24, 2023.
On November 18, 2022, the trial court approved the Division's emergent
removal and placed the children in the Division's custody. Two months later,
the SSA approved the Division's request to serve as the minors' representative
payee in place of their mother. At a permanency hearing on April 10, 2024,
where the Division sought to have the triplets adopted by their resource
parents, the minors requested that the court bar the Division from using the
children's SSI benefits to offset maintenance costs.
On July 29, 2024, the trial court issued an order and oral decision
denying the minors' motion to: bar the Division from using their SSI benefits
to offset maintenance costs; place the SSI benefits in an account; and require
the Division to provide notice to the court and minors prior to using SSI
benefits for reimbursement. The trial court reasoned that it lacked jurisdiction
to hear federal claims. The court also terminated the litigation and ordered
A-3362-23
18
that the Division retain legal custody of the minors, and the resource parents
retain physical custody of them.
M.M., A-0271-24: Survivor Benefits
M.M. was born on August 15, 2006. Her mother passed away on
September 29, 2018.
On July 19, 2022, the Division obtained custody of M.M. and placed her
in a non-relative resource home. Two months later, the SSA approved the
Division's request to become the M.M.'s representative payee.
On June 7, 2024, the trial court denied M.M.'s motion to stop the
Division from using her survivor benefits for reimbursement purposes but
granted her request that the Division provide an accounting of her survivor
benefits and required the Division to assist her in becoming her own
representative payee. The trial court reasoned that the Division's practice "no
matter how abhorrent it may seem," was authorized under New Jersey law.
The trial court also denied M.M.'s request for the Division to open a separate
account as moot.
J.G., III and I.G., A-1801-24 & A-1802-24: SSI benefits
On December 5, 2017, H.G., the paternal grandmother, obtained care
and custody of J.G., III, born June 16, 2006, and I.G., born July 26, 2009, who
are disabled and were removed from their mother's care due to concerns of
A-3362-23
19
neglect. In June 2023, the Division emergently removed the children from
H.G.'s home and placed them in the Division's custody. Four months later, the
Division's application to the SSA to become the minors' representative payee
was approved.
On April 16, 2024, H.G. moved for the court to order the Division to pay
over $6,000 of her past bills because she was dependent on the children's SSI
benefits. The court issued a written order and oral decision requiring the
Division to pay H.G.'s mortgage, car payment, and utility costs. The Division
moved for a stay and reconsideration of the order; the court reversed its order
in part rescinding the requirement to pay H.G.'s car loan.
On April 19, the trial court issued a written order requiring the Division
to provide "particularized accounting" of its use of the children's SSI funds.
After J.G., III and I.G. were reunited with H.G., on March 15 and June 6,
respectively, the Division notified the SSA that it was no longer the children's
legal custodian, relinquished its payee status, and returned the children's
conserved funds to the SSA.
On June 7, J.G., III and I.G. filed a motion seeking: (1) the Division to
repay the SSI funds it used to offset maintenance costs; and (2) provide a final
accounting of its use of the children's SSI benefits. After a motion hearing on
September 3, the trial court issued a written order and oral decision on
A-3362-23
20
September 20, denying the minors' motion without prejudice. The trial court
reasoned that because the minors' arguments were preempted by federal law, it
lacked jurisdiction to hear the federal claims, and the Division's actions were
permitted under New Jersey law. On January 6, 2025, the court issued an
order and oral decision terminating the litigation because the children were
returned home and conditions had been remediated.
II.
To avoid a repetitive and unnecessary recitation of each trial court's
decision, we summarize them except to highlight a particular court's reasoning.
In denying the minors' requests to cease the Division's use of their Social
Security benefits and to refund those benefits, seven of the eight trial courts
found that they lacked jurisdiction due to federal preemption. Because 42
U.S.C. § 405(a) vests in the SSA Commissioner the exclusive "authority to
make rules and regulations . . . necessary or appropriate to carry out such
provisions" of the Act, the trial courts determined that our state courts have no
lawful authority under New Jersey law to monitor the Division's use of Social
Security benefits as the minors' representative payee. Federal preemption was
also evident when the United States Supreme Court recognized that "a
[representative] payee must expend funds 'only for the use and benefit of the
beneficiary,' in a way that the payee determines 'to be in the [beneficiary's]
A-3362-23
21
best interest.'" Wash. State Dep't of Soc. & Health Servs. v. Guardianship Est.
of Keffeler (Keffeler II), 537 U.S. 371, 376 (2003) (second alteration in
original) (quoting 20 C.F.R. §§ 404.2035(a), 416.635(a)). Six of the eight trial
courts also relied on a Maryland Court of Appeals decision, In re Ryan W., 76
A.3d 1049, 1061-63 (Md. 2013), which held that amendments to the Act
enhancing the "'monitoring of institutional representative payees'" and giving
federal remedies for the misuse of Social Security benefits indicate federal
preemption over "'disputes regarding the allocation of benefits by
representative payees.'"
Six of the eight trial courts dismissed the minors' argument—that the
Legislature's intent to prohibit the Division's reimbursement policy could be
gleaned from the amendment to N.J.S.A. 9:6B-4. part of the Child Placement
Bill of Rights (CPBR). That amendment, effective January 16, 2024, requires
the Division to notify a child in its care of the Division's "intent to file for
federal benefits on the child's behalf." N.J.S.A. 9:6B-4(z). The amendment
was considered by the six courts as merely authorizing them to enforce the
Division's obligation to provide notice to a child under its care, custody, and
supervision.
Two trial courts viewed the primary issue as a failure to exhaust the
administrative remedies provided in 42 U.S.C. § 405(b), and three viewed the
A-3362-23
22
issue as one of misuse. One court cited an Indiana Court of Appeals decision,
Randall v. Woodson, 212 N.E.3d 691, 693, 696 (Ind. Ct. App. 2023), where a
trust beneficiary sued an individual acting as representative payee to recover
misused Social Security benefits, and the court found the claims preempted by
42 U.S.C. § 1383, which is "directed at preventing, identifying, and rectifying
the misuse of benefit funds by representative payees." Id. at 695.
Trial courts that addressed the merits of the minors' claims determined
that the Division's reimbursement policy did not violate state law. Although
the policy was considered unfair to the minors, there was no law preventing it.
In fact, N.J.S.A. 30:4C-22, was seen as conferring to the Division the control
over the minors' assets and the ability to use them to cover their maintenance
costs.
As for the trial court that addressed the state constitutional equal
protection and due process claims, it relied on the Washington Supreme
Court's opinion in Keffeler III. The equal protection claims were dismissed
because "there was only one group of foster children" and the Division was
using the Social Security benefits "lawfully under state and federal laws and
regulations." Keffeler III, 88 P.3d at 954. Therefore, the trial court reasoned,
the minors were not treated differently from others under the Division's care
and custody who have assets from jobs or inheritance that are used to offset
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maintenance costs. The court did not directly address the minors' due process
claims regarding failure to provide notice of the Division's reimbursement
measures, but relied on the reasoning in Keffeler III, which held that the
"federal notice sent to beneficiaries and their guardians is sufficient to fulfil
any procedural due process rights the children may have." 88 P.3d at 956.
III.
Our resolution of these appeals turns on: (1) whether state courts have
jurisdiction to decide if the Division can use minors' Social Security benefits
to reimburse the agency for the maintenance costs of their care, custody and
supervision; and if so, (2) whether the Division's reimbursement actions
violate state law or constitutional due process and equal protection rights. We
address these issues in turn.
IV.
FEDERAL PREEMPTION
Arguments
The minors aver that the trial courts erred in holding that the courts lack
jurisdiction over their Social Security benefits claims. They emphasize that a
family court's inherent equitable parens patriae authority allows it to intervene
and override the Division's policy of using Social Security benefits to offset
maintenance costs. See Hoefers v. Jones, 288 N.J. Super. 590, 607-08 (App.
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Div. 1994). They contend that the Child Placement Review Act, N.J.S.A.
30:4C-50 to -65, and the CPBR authorize the family court to intervene and
protect the child's best interests, which is the situation here.
The minors2 assert that the Act does not preempt New Jersey law
because they are not claiming the Division misused their Social Security
benefits, which falls under the purview of the SSA and not state court. The
dispute here, the minors contend, is whether New Jersey law prohibits the
practice. The minors contend that the trial court misinterpreted 42 U.S.C. §
405(a) as preempting New Jersey law because although the Act's regulations
govern the designation of representative payees and the scope of their
fiduciary duties, the regulations are silent on whether a state can utilize Social
Security benefits to reimburse itself for a minor's maintenance costs. See 42
U.S.C. § 405(j)(1)(A); 20 C.F.R. § 404.2035(a).
The minors 3 also argue that there are no federal statutes or regulations
providing an equitable remedy for the Division's actions in utilizing SSI
benefits to offset maintenance costs. For instance, the minors allege
"restitution against state or local government agencies who serve as
2
M.V. did not address federal preemption in his brief.
3
M.V. did not address federal remedies for misuse of SSI benefits in his brief.
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representative payees" is precluded per 42 U.S.C. § 405(j)(7)(A), which
governs misuse of funds. Thus, the minors contend the Division's
reimbursement policy should be reviewable by a state court to prevent the
Division from being immune from liability and to hold the Division
accountable to the minors.
Lastly, the minors contend the courts' reliance on Keffeler II and Ryan
W. are misplaced because those cases are distinguishable from the present
matter. They note that the state statutes implicated in Keffeler II and Ryan W.
expressly required the Division to use Social Security benefits to offset
maintenance costs, whereas here, they argue New Jersey law, prior to the
enactment of N.J.S.A. 9:6B-7, prohibited it. Moreover, the minors argue
Keffeler II is distinguishable because it focused on whether maintenance costs
amounted to an "execution, levy, attachment, garnishment, or other legal
process" under 42 U.S.C. § 407(a), whereas here, the minors challenge the
Division's maintenance costs based on New Jersey law. 537 U.S. at 382. The
minors contend that the Supreme Court's analysis in Keffeler II affirming
Washington State's reimbursement practice was dicta, and its discussion on the
best interests of the child implicated Chevron4 deference to the SSA, which has
4
Chevron, U.S.A., Inc., v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984).
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since been overruled in Loper Bright Ent. v. Raimondo, 603 U.S. 369 (2024),
and is thus not binding. The minors add that, to the extent the Supreme Court's
approval is relevant, it indicates "consideration of state law is essential to the
ultimate determination on this issue."
Amici Rutgers Law School Child Advocacy Clinic and Advocates for
Children of New Jersey present no argument regarding federal preemption.
Amici Child-Advocacy Organizations 5 agree with the minors' contention that
the Act does not preempt New Jersey law and that the minors are not required
to exhaust federal remedies before bringing a claim in state court.
The Division contends that "[c]ongressional intent to preempt state
jurisdiction and fully occupy the field in this case is 'clear and manifest.'" See
Health Maintenance Org. of New Jersey, Inc. v. Whitman, 72 F.3d 1123, 1127
(3rd. Cir. 1995). It argues that the minors' claims are subject to federal
preemption because they constitute allegations of misuse of benefits , which,
under the Act's comprehensive statutory and regulatory scheme, are expressly
resolved by the SSA and, thereafter, federal court. Thus, minors must exhaust
the administrative remedies set forth in the SSA.
5
These organizations are comprised of the Children's Advocacy Institute,
Children's Rights, Facing Foster Care in Alaska, Juvenile Law Center,
Lawyers for Children, Legal Aid Society, National Center for the Rights of
Abused Children, National Foster Youth Institute, and Nebraska Appleseed
Center for Law in the Public Interest.
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The Division asserts that other states' laws addressing their use of Social
Security benefits do not invite federal preemption because the laws were
"carefully crafted to fall well within the benefit use permitted under federal
law" and do not "attempt to confer jurisdiction onto state courts to resolve
claims of benefit misuse," which is the case here. The Division argues that
despite its parens patriae role over the minors, state court jurisdiction is not
conveyed over allegations that it misused their Social Security benefits as their
representative payees. State court jurisdiction, according to the Division, is
not conferred by the requirement under N.J.S.A. 9:6B-4(z) that minors be
notified of the Division's plan to be appointed as representative payee of their
Social Security benefits. The Division rebuts the minors' claim that the Act
provides no remedy, arguing that it explicitly precludes liability from
governmental agency payees like the Division, pointing to 42 U.S.C.