McCoy v. Albin, 903 N.W.2d 902

In 1995 the Nebraska Department of Labor mailed Troy McCoy a notice that he had been overpaid $850 in unemployment benefits; McCoy did not appeal and made no repayments.
In 2016 Nebraska intercepted McCoy’s state income tax refund ($293) and applied it toward the overpayment; McCoy appealed administratively (also challenged a 1997 interception).
An appeal tribunal concluded the Department was time-barred by Nebraska statutes of limitations and held for McCoy; the Department sought judicial review.
The Sarpy County District Court affirmed the tribunal’s decision; the Department appealed to the Nebraska Supreme Court.
Central statutory provisions: Neb. Rev. Stat. § 48-665(1) (collection methods for overpayments, including setoff against state tax refunds) and more general limitations statutes (§§ 25-206, 25-218, and 25-1515).

Issue	Plaintiff's Argument (McCoy)	Defendant's Argument (Department)	Held
Whether a statute of limitations bars the Department from offsetting a state income tax refund to collect unemployment overpayments	The Department’s interception was time-barred under §§ 25-206/25-218 (and § 25-1515 as to dormant judgments)	§ 48-665(1)(c) authorizes setoff against state refunds and contains no limitations; general limitations for actions do not apply to administrative setoff; any limitation is an affirmative defense waived if not pleaded	No statute of limitations applies to administrative setoff under § 48-665(1)(c); reversal of district court and tribunal decision

Marion’s v. Nebraska Dept. of Health & Human Servs., 289 Neb. 982 (2015) (administrative review standard and scope)
ML Manager v. Jensen, 287 Neb. 171 (2014) (statutory interpretation principles)
Arthur v. Microsoft Corp., 267 Neb. 586 (2004) (statutory construction — legislative intent and plain language)
Tiedtke v. Whalen, 133 Neb. 301 (1937) (distinction between actions/judgments and other administrative remedies)