A. G. Huseman and Winnie Huseman v. Robert H. Finch, Secretary of Health, Education and Welfare

424 F.2d 1237, 1970 U.S. App. LEXIS 9595
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 24, 1970
Docket117-68_1
StatusPublished
Cited by3 cases

This text of 424 F.2d 1237 (A. G. Huseman and Winnie Huseman v. Robert H. Finch, Secretary of Health, Education and Welfare) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. G. Huseman and Winnie Huseman v. Robert H. Finch, Secretary of Health, Education and Welfare, 424 F.2d 1237, 1970 U.S. App. LEXIS 9595 (10th Cir. 1970).

Opinion

HILL, Circuit Judge.

Appellants, A. G. Huseman and Winnie Huseman, brought suit in the District Court against appellee, the Secretary of Health, Education and Welfare, seeking relief from the Social Security Administration’s recomputation of appellants’ social security benefits and the consequent reduction in benefits payable to appellants. After the trial judge dismissed appellants’ original complaint, leave was granted to file an amended complaint. *1238 Ultimately the trial judge determined from the undisputed facts that appellants had not exhausted their administrative remedies because no administrative hearing had been held concerning the dispute and thus no final decision had been made by appellee Secretary. 1 2 Conse-quently, the trial judge found that under 42 U.S.C. § 405(g) the court lacked jurisdiction and thereupon dismissed the complaint.

In 1961, appellants applied for and were granted old age insurance benefits under the Social Security Act. On April 3, 1967, the Social Security Administration — apparently acting upon information that A. G. Huseman had recovered a state court judgment in the amount of $1935 for wages earned in 1960 but not paid to him by his former employer —notified appellants that they were entitled to increased primary insurance benefits. According to the Administration’s letter of April 3, 1967, Mr. Huse-man’s increased benefits amounted to $85 per month effective October, 1960, and $91 per month as of January, 1965. In early August, 1967, appellants were notified by the Administration that an error had been made in the April 3rd computation of their primary insurance benefits rate and that they had been overpaid.* The Social Security Administration advised appellants that their benefits would be withheld from November 3, 1967, until August 3, 1968, in order for the Administration to recoup the overpayment, and thereafter appellants would receive benefits at the recomputed rate.

Upon notification of the August, 1967, recomputation, Mr. Huseman on August 4, 1967, wrote to the Social Security Administration requesting a breakdown of their computations so that he could check the accuracy of the Administration’s recomputed benefits rate and the resulting overpayment. In the absence of a reply, Mr. Huseman again wrote the Administration on August 30, 1967, and requested an explanation of the recent recomputation of the benefits rate. That letter also denied any overpayment, denied responsibility for any overpayment, asserted that the withholding of any social security checks would work a severe hardship on appellants, and requested that the benefits remain at the rate determined on April 3, 1967. The Administration construed this letter as a request for a reconsideration of the August, 1967 recomputation of appellants’ benefits rates which, in the parlance of the Administration, is a request for a “reconsideration determination.”

The Social Security Administration failed to notify appellants that the Administration was treating Mr. Huseman’s letter as a request for a reconsideration determination, and on November 15, 1967 appellants instituted suit in the District Court. Their complaint sought a .preliminary injunction against the enforcement of the Administration’s recomputed benefits determination pending resolution of the dispute, an order of mandamus requiring the Administration to furnish appellants with the earnings record of A. G. Huseman plus other facts pertinent to the recomputation of appellants’ benefits and the resulting overpayment, and declaratory relief determining the status and rights of appellants. Prior to the institution of the suit, appellants had filed a request for a hearing with the Administration, and during the pendency of the suit on November 29, 1967 appellants’ request for a hearing was denied by the Administration for the reason that a hearing was premature because at that time a reconsideration determination was in the *1239 offing pursuant to appellants’ letter of August 30, 1967.

Upon the allegation of these undisputed facts and in the light of an affidavit by an Administration official stating that a reconsideration determination was pending and that no final administrative decision had been made, the trial judge dismissed the action on the grounds of lack of jurisdiction stemming from appellants’ failure to exhaust their administrative remedies. Subsequently the Social Security Administration held the reconsideration determination and affirmed the benefits determination made as of August, 1967. Included in the reconsideration determination findings was the conclusion that the error made in the April 3, 1967 computations which resulted in the overpayment was not made through the fault of appellants, but nonetheless the Administration was not barred from recovering the overpayment because appellants refused to complete the required financial forms necessary for the Administration to waive the overpayment. Appellants still refuse to fill out the forms (OA-C 632; OA-C 634) because they contend that the forms force them to acknowledge an overpayment despite the fact that this is the very point in dispute.

After the Social Security Administration’s decision in the reconsideration determination, appellants once again sought judicial relief, and on June 28, 1968 the trial court granted appellants leave to amend their original complaint. Appellants amended their pleadings to include the allegations that the Administration had refused to afford appellants a hearing after the reconsideration determination, that they had not been given notice of their right to a hearing after the reconsideration determination, and that the trial court should review appellants’ exhibits and thereupon decide the issues between the parties. Once again the trial court determined that it lacked jurisdiction because appellants were still entitled to an administrative hearing and in the absence of such a hearing the administrative decision is not final and cannot be litigated.

On appeal, appellants first attack the trial judge’s determination that they have not exhausted their administrative remedies by arguing that the Social Security Administration in effect has denied them any administrative remedy. In support of this they contend that the Administration has been dilatory, has failed to notify appellants of their right to a hearing which is in violation of the Administration’s regulations, and has ignored appellants’ request for a hearing subsequent to the reconsideration determination. Appellants by this appeal seek to obtain a fair hearing.

This issue is easily disposed of because appellee has agreed to forthwith conduct an administrative hearing on appellants’ claim. This provides appellants with their requested relief; and we conclude that the trial judge was correct in denying jurisdiction since appellants have this remaining administrative remedy, 3 and since appellee’s decision on appellants’ claim is not final until after at least a hearing by the Administration’s hearing examiner. 4 This precludes our determination whether appellants have been denied appropriate hearings in derogation of their rights.

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Bluebook (online)
424 F.2d 1237, 1970 U.S. App. LEXIS 9595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-g-huseman-and-winnie-huseman-v-robert-h-finch-secretary-of-health-ca10-1970.