Kizer

Petitioner/appellant Kenneth W. Kizer, Director of the Department of Health (hereinafter the Department), appeals the denial of the Department’s petition for permission to withdraw funds to satisfy a Medi-Cal lien to recover costs of medical services it provided to respondent Sergio Ortiz, a minor, by his guardian ad litem Margarita Ortiz. (Welf. & Inst. Code, § 14124.70, et seq.) Finding that the petition was time barred, the court denied the petition. We hold that the court erred because the pertinent statute of limitations did not begin to run until the Department received notice of the settlement having been reached. Consequently, we order the superior court to grant the Department’s petition forthwith.

Facts

The pertinent facts are not in dispute. On April 19, 1979, Sergio Ortiz (respondent) was injured in a car accident. The Medi-Cal program paid $5,786.27 for the medical care and services rendered to treat his injuries.

On January 15, 1980, a civil suit was commenced on respondent’s behalf for the personal injuries he sustained as a result of the car accident. At some time in 1985, respondent and defendant in that action agreed to settle for $35,000. On December…