Prado v. ICE Agent Perez

Background

The court had approved the parties’ settlement on July 21, 2021. The settlement included a payment to Jesus Prado. According to Prado’s letter-motion, the payment had not yet been made because Prado needed to enroll in a special needs trust, which would administer the settlement funds and distribute small amounts for basic necessities.

Prado did not have a Social Security number and therefore had to obtain an individual tax identification number from the Internal Revenue Service. The letter said the IRS initially delayed and then incorrectly denied his application. After a new application, the IRS issued the number on March 21, 2023. Further administrative delays followed before Prado could enroll in the trust. The expected payment date was close to Prado’s 65th birthday on June 5, 2023.

Request

Prado asked the court to treat the settlement payment as legally made on June 2, 2023, even if the payment was received later. His lawyers argued that this date would preserve his ability to qualify for Medicaid funding for long-term care under an exception for assets transferred to a trust established solely for the benefit of a disabled person under age 65. The letter stated that defense counsel did not oppose the request.

Ruling

Judge J. Paul Oetken ordered that the settlement payment be deemed made, retroactively, as of June 2, 2023. The court also directed the clerk to close the docket entry for the request. The order included a disclaimer that it did not constitute an admission by the United States about Prado’s eligibility for benefits or coverage under any federal health-care program, and did not limit the government’s ability to make that determination.

Disposition and scope

This was an ancillary order concerning the timing and legal treatment of a settlement payment. The opinion does not describe the underlying claims or decide whether Prado qualified for Medicaid or any other benefit.