Barnett v. Bowen

794 F.2d 17, 1986 U.S. App. LEXIS 25705
Court of Appeals for the Second Circuit·Decided May 30, 1986·No. Nos. 1143, 1144, Dockets 85-6252, 6315·Published·Cited by 19 cases

Opinion

FEINBERG, Chief Judge:

This is a consolidated appeal from orders of Judge James S. Holden of the United States District Court for the District of Vermont, which dismissed two class actions brought on behalf of social security disability applicants.1 The first case, Day v. Bowen, No. 85-6315 (hereafter Day), involved the proceedings on remand from the Supreme Court in Heckler v. Day, 467 U.S. 104, 104 S.Ct. 2249, 81 L.Ed.2d 88 (1984). On remand, the district judge vacated his injunction, which had imposed 90-day deadlines for reconsideration determinations and administrative hearings reviewing denial of social security disability benefits under Title II of the Social Security Act (the Act), 42 U.S.C. § 401 et seq. The judge also concluded that Heckler v. Day foreclosed any other form of class-wide relief and dismissed the class action. In the second case, Barnett v. Bowen, No. 85-6252 (hereafter Barnett), Judge Holden also vacated an injunction which had created a 90-day deadline for administrative hearings following denial of disability benefits under Title XVI of the Act, 42 U.S.C. § 1381 et seq. He denied further class-wide relief and dismissed the class action. Because we believe that Heckler v. Day does not foreclose all class-wide relief, we reverse those portions of the district court’s orders that deny all class-wide relief and dismiss the class actions. We remand to the district court for further consideration of appropriate remedial action.

I.

The complicated facts underlying these lengthy proceedings are described in our two earlier opinions, Day v. Schweiker, 685 F.2d 19 (2d Cir.1982) and Barnett v. Cali-fano, 580 F.2d 28 (2d Cir.1978), and in the Supreme Court’s opinion in Heckler v. Day, supra. We set forth below only those facts [20] essential to an understanding of the appeals now before us.

Plaintiffs in Day are a class of applicants for Old Age, Survivors and Disability Insurance (OASDI) benefits under Title II of the Act, 42 U.S.C. § 401 et seq. They challenged delays in two stages of the four-step administrative review process for disability claims. That process begins with a state agency’s initial determination of eligibility, 42 U.S.C. § 421(a); 20 C.F.R. § 404.-1503; if declared ineligible, the claimant may request a de novo reconsideration of the initial determination. 20 C.F.R. §§ 404.907-404.921. If the reconsideration determination is adverse, the claimant is entitled to a hearing before an Administrative Law Judge (AU). 42 U.S.C. § 405(b); 20 C.F.R. §§ 404.929-404.961. The claimant can appeal an AU’s decision to the Appeals Council of the Department of Health and Human Services. 20 C.F.R. §§ 404.967-404.983. After exhausting these four steps, the claimant can seek judicial review in federal district court. 42 U.S.C. § 405(g).

Day involved delays in issuing reconsideration determinations and in scheduling hearings. Plaintiffs relied on 42 U.S.C. § 405(b), which entitles OASDI claimants to “reasonable notice and opportunity for a hearing” after an adverse determination. The district court certified a statewide class of applicants who experience “an unreasonable delay in the scheduling of and/or issuance of decisions in reconsidera-tions and fair hearings.” Finding that delays of more than 90 days for both recon-siderations and hearings violated section 405(b), the district court granted summary judgment to the plaintiff class. The court then imposed mandatory 90-day deadlines for both reconsideration determinations and hearings,2 and provided for payment of interim benefits if certain deadlines were exceeded. This court affirmed. 685 F.2d 19 (2d Cir.1982).

Thereafter, the Supreme Court reversed. Heckler v. Day, supra. In his opinion for the majority, Justice Powell relied on “Congress’ continuing concern that mandatory deadlines would subordinate quality to timeliness, and its recent efforts to ensure the quality of agency determinations,” 467 U.S. at 117, 104 S.Ct. at 2257, to strike down the 90-day time limits. The Court held that “[i]n light of the unmistakable intention of Congress, it would be an unwarranted judicial intrusion into this pervasively regulated area for federal courts to issue injunctions imposing deadlines with respect to future disability claims.” Id. at 119. In a footnote, reproduced in full in the margin,3 the Court stated that “nothing in this opinion precludes the proper use of injunctive relief to remedy individual violations of § 405(b).” Id. at 119 n. 33 (emphasis in original). The Court vacated the decision of this court and remanded the case for further proceedings consistent with its opinion. Id. at 119. This court thereafter summarily remanded the case to the district court.

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Barnett v. Bowen, 794 F.2d 17, 1986 U.S. App. LEXIS 25705 (2d Cir. 1986).

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