An Allamakee County woman is suing the State of Iowa over $34,700 she says she’s owed from the state’s Crime Victim Compensation Program.
Annarae Mathis, 44, of Postville, is suing the Iowa Department of Justice and its Crime Victim Compensation Program in Polk County District Court, alleging they have refused to compensate her for losses.
Mathis’ lawsuit states she was the victim of a violent crime that occurred on Aug. 13, 2024, which resulted in a serious knee injury that required surgical reconstruction. The injury left her unable to work for approximately 12 months, as confirmed by her treating physician, the lawsuit claims.
Mathis filed a crime victim compensation claim in December 2024 and her application was approved and her eligibility was confirmed, according to the lawsuit. She alleges she was advised a claim typically takes 30 to 40 days to process, but that her claim has been pending for roughly 18 months without payment of benefits related to lost income, transportation costs and other expenses.
The Iowa Administrative Code specifies that any denial of eligibility must be based on written documentation, and that an applicant shall be deemed eligible for compensation if the documentation supporting a denial isn’t filed by the state within six months of the application, according to the lawsuit.
As part of her lawsuit, Mathis also alleges the Iowa Department of Justice has documentation of her disability from three licensed healthcare providers, but that the DOJ has refused to pay any lost wages other than $1,000 that covered a two-week period.
The lawsuit suggests the DOJ’s alleged refusal to pay more is based on a lack of documentation from third parties that would substantiate Mathis’ claim of lost wages. The lawsuit also indicates that compensation for lost income is capped at $6,000, and that while her actual loss is significantly greater, she remains entitled to $5,000 in benefits in addition to the $1,000 already collected.
In addition, she seeks payment of up to $24,000 for the loss of support sustained by her six dependent children, as provided for under the Crime Victim Compensation Program, plus $685 in unpaid transportation costs, plus $5,000 as undue-hardship compensation. The maximum total amount still owed, she alleges, is $34,700.
The lawsuit notes that in October 2024, the Iowa Judicial Branch disclosed that a coding error in the distribution of court fees had resulted in the Crime Victim Compensation Program being shorted $7.2 million, with that money mistakenly routed to the state’s general fund, which carries a surplus. The Crime Victim Compensation Program’s loss of revenue is “a matter of correction rather than true insolvency,” the lawsuit claims, and so if the state claims there are insufficient funds to pay Mathis, that situation can be corrected through accounting.
The state’s failure to compensate her, Mathis argues, has exacerbated her financial situation through increased expenses related to insurance, medical coverage and transportation. “The program designed to relieve crime-related financial hardship has instead compounded it,” the lawsuit claims.
The Iowa Department of Justice, which does not comment on pending litigation, has yet to file a response to the lawsuit.
