Brennan v. KANSAS INS. GUAR. ASS'N
264 P.3d 102
Kan.2011Background
- Brennan sued Dr. Thode for medical malpractice; PHICO carried $200,000 policy; PHICO later became insolvent.
- KIGA provides coverage for claims against insolvent insurers; Brennan’s claim involved $200,000 from PHICO’s policy.
- Brennan had health insurance paying $500,000 for related treatments; KIGA offset disputes center on these payments.
- 2005 amendment to the Guaranty Act authorized offset of health insurance benefits against KIGA liability, retroactively applied to claims not yet paid.
- Settlement in 2005 left unresolved whether KIGA could offset Brennan's health policy payments; KIGA intervened formally in 2007.
- District court held retroactive amendment unconstitutional as to Brennan; case proceeded on appeal and review of vesting and retroactivity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Retroactive application violatess due process? | Brennan contends retroactivity extinguishes vested rights. | KIGA contends amendment clarifies existing offset rights. | Retroactive application violates due process; offset not allowed. |
| Whether preamendment law allowed offset of health benefits? | Brennan argues no offset under preamendment statute. | KIGA contends offset always permitted and amendment clarifies. | Preamendment did not authorize offset; Brennan entitled to $200,000 from KIGA. |
| Did the 2005 amendment change or clarify original intent? | amendment simply clarifies; does not broaden liability. | amendment broadens and extends offset to health benefits. | Amendment changed original law; not a mere clarification. |
| Are Brennan's vested rights violated by retroactive amendment? | Brennan possessed vested rights in preamendment regime. | Offset rights are not vested; remedy may be modified. | Brennan had vested rights; retroactive amendment violated due process. |
Key Cases Cited
- Hetzel v. Clarkin, 244 Kan. 698 (Kan. 1989) (offsetting uninsured motorist benefits; statutory purpose to avoid windfall)
- Sands v. PA Ins. Guaranty Ass'n, 283 Pa. Super. 217 (Pa. Super. 1980) (not entitled to offset medical insurance benefits under preamendment law)
- Bell v. Slezak, 571 Pa. 333 (Pa. 2002) (offset allowed under amended statute)
- Owen Lumber Co. v. Chartran, 276 Kan. 218 (Kan. 2003) (retroactive amendments and vested rights analysis framework)
- Fleischer, 257 Kan. 360 (Kan. 1995) (vested rights and retroactive remedies considerations)