Ayala v. O'Malley, Commissioner of the Social Security Administration

CourtDistrict Court, D. New Mexico
DecidedOctober 1, 2025
Docket1:24-cv-01209
StatusUnknown

This text of Ayala v. O'Malley, Commissioner of the Social Security Administration (Ayala v. O'Malley, Commissioner of the Social Security Administration) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ayala v. O'Malley, Commissioner of the Social Security Administration, (D.N.M. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

AMOR AYALA,

Plaintiff,

vs. Civ. No. 24-1209 DHU/JFR

FRANK BISIGNANO, Commissioner, Social Security Administration,

Defendant.

PROPOSED FINDINGS AND RECOMMENDED DISPOSITION1 THIS MATTER is before the Court on the Social Security Administrative Record (Doc. 10)2 filed January 31, 2025, in connection with Plaintiff’s Opposed Motion to Reverse or Remand, filed April 30, 2025. Doc. 17. On June 30, 2025, Defendant filed a Response. Doc. 21. On July 10, 2025, Plaintiff filed a Reply. Doc. 22. The Court has jurisdiction to review the Commissioner’s final decision under 42 U.S.C. §§ 405(g) and 1383(c). Having meticulously reviewed the entire record and the applicable law and being fully advised in the premises, the Court finds that Plaintiff’s Motion is well-taken and recommends that it be GRANTED. I. Background and Procedural Record Plaintiff Amor Ayala (“Ms. Ayala”) alleges that she became disabled on April 20, 2022, at the age of twenty-three and four months, because of iritis, rheumatoid arthritis,

1 On January 21, 2025, United States District Judge David H. Urias entered an Order of Reference referring this case to the undersigned to conduct hearings, if warranted, including evidentiary hearings and to perform any legal analysis required to recommend to the Court an ultimate disposition of the case. Doc. 9.

2 Hereinafter, the Court’s citations to Administrative Record (Doc.10), which is before the Court as a transcript of the administrative proceedings, are designated as “Tr.” spondylarthrosis, autism, asthma, hypothyroidism, hypertension, and depression. Tr. 36, 201. Ms. Ayala has a GED plus two years of college and has worked as an election ballot counter and fast food restaurant assistant manager. Tr. 202, 211. Ms. Ayala stopped working on November 7, 2020, because of her conditions and having caught COVID. Tr. 201. On April 20, 2022, Ms. Ayala protectively filed an application for Social Security

Supplemental Security Income (“SSI”) under Title XVI of the Act, 42 U.S.C. § 1381 et seq. Tr. 177-83, 184-85. On September 26, 2022, Ms. Ayala’s application was denied upon initial review. Tr. 61-68, 69, 89-92. On August 18, 2023, it was denied at reconsideration. Tr. 70-80, 81, 121-24. Ms. Ayala requested a hearing before an Administrative Law Judge (“ALJ”), which was held on March 4, 2024, before ALJ Marjorie Panter. Tr. 32-60. Ms. Ayala was represented at the hearing by Attorney Benjamin Decker. Id. On June 14, 2024, ALJ Panter issued an unfavorable decision. Tr. 11-27. On October 3, 2024, the Appeals Council issued its decision denying Ms. Ayala’s request for review and upholding the ALJ’s final decision. Tr. 1-6. On December 2, 2024, Ms. Ayala timely filed a Complaint seeking judicial review of the

Commissioner’s final decision. Doc. 1. Ms. Ayala argues (1) that the ALJ failed to resolve a significant discrepancy between the Dictionary of Occupational Titles and the VE’s testimony and failed to apply the Trimiar factors to determine whether other work within Plaintiff’s restrictions arises in significant numbers; and (2) that the ALJ failed to meaningfully consider the impact of Ms. Ayala’s obesity on her mental impairments. Doc. 17 at 20-28. For the reasons discussed below, the Court finds that the ALJ failed to resolve an apparent conflict and erroneously included the job of document preparer as a job Ms. Ayala could perform. As such, the Court finds that the ALJ’s determination as to the number of national jobs available to Ms. Ayala is not supported by substantial evidence. The Court further finds on harmless error review that it is constrained from finding as a matter of law that 50,000 jobs in the national economy constitutes a significant number. The Court, therefore, recommends remand. II. Applicable Law A. Disability Determination Process An individual is considered disabled if she is unable “to engage in any substantial gainful

activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months”. 42 U.S.C. § 423(d)(1)(A) (pertaining to disability insurance benefits); see also 42 U.S.C. § 1382(a)(3)(A) (pertaining to supplemental security income disability benefits for adult individuals). The Social Security Commissioner has adopted the familiar five-step sequential analysis to determine whether a person satisfies the statutory criteria as follows: (1) At step one, the ALJ must determine whether the claimant is engaged in “substantial gainful activity.”3 If the claimant is engaged in substantial gainful activity, she is not disabled regardless of her medical condition.

(2) At step two, the ALJ must determine the severity of the claimed physical or mental impairment(s). If the claimant does not have an impairment(s) or combination of impairments that is severe and meets the duration requirement, she is not disabled.

(3) At step three, the ALJ must determine whether a claimant’s impairment(s) meets or equals in severity one of the listings described in Appendix 1 of the regulations and meets the duration requirement. If so, a claimant is presumed disabled.

(4) If, however, the claimant’s impairments do not meet or equal in severity one of the listings described in Appendix 1 of the regulations, the ALJ must determine at step four whether the claimant can perform her “past relevant work.” Answering this question involves three phases. Winfrey v. Chater, 92

3 Substantial work activity is work activity that involves doing significant physical or mental activities. 20 C.F.R. §§ 404.1572(a). “Your work may be substantial even if it is done on a part-time basis or if you do less, get paid less, or have less responsibility than when you worked before.” Id. “Gainful work activity is work activity that you do for pay or profit.” 20 C.F.R. §§ 404.1572(b). F.3d 1017, 1023 (10th Cir. 1996). First, the ALJ considers all of the relevant medical and other evidence and determines what is “the most [claimant] can still do despite [her physical and mental] limitations.” 20 C.F.R. § 404.1545(a)(1). This is called the claimant’s residual functional capacity (“RFC”). Id. §§ 404.1545(a)(3). Second, the ALJ determines the physical and mental demands of claimant’s past work. Third, the ALJ determines whether, given claimant’s RFC, the claimant is capable of meeting those demands. A claimant who is capable of returning to past relevant work is not disabled.

(5) If the claimant does not have the RFC to perform her past relevant work, the Commissioner, at step five, must show that the claimant is able to perform other work in the national economy, considering the claimant’s RFC, age, education, and work experience. If the Commissioner is unable to make that showing, the claimant is deemed disabled. If, however, the Commissioner is able to make the required showing, the claimant is deemed not disabled.

See 20 C.F.R.

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