Broehm v. Saul

CourtDistrict Court, E.D. Wisconsin
DecidedNovember 30, 2020
Docket1:19-cv-01186
StatusUnknown

This text of Broehm v. Saul (Broehm v. Saul) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broehm v. Saul, (E.D. Wis. 2020).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

RANDY J. BROEHM,

Plaintiff,

v. Case No. 19-C-1186

ANDREW M. SAUL, Commissioner of Social Security,

Defendant.

DECISION AND ORDER REVERSING DECISION OF COMMISSIONER

Plaintiff Randy Broehm filed this action for judicial review of a decision by the Commissioner of Social Security denying his claim for disability insurance benefits under Title II of the Social Security Act. In his most recent decision, the Commissioner concluded that Plaintiff was ineligible for benefits because he had continued to engage in substantial gainful activity as the proprietor of a family sheep farm. Alternatively, the Commissioner concluded that Plaintiff was not disabled because he retained the residual functional capacity to perform his previous job. For the reasons that follow, the decision of the Commissioner will be reversed and the case remanded for further proceedings. BACKGROUND This case has a long and unusual history. Plaintiff filed an application for disability insurance benefits in December 2010. R. 162. Initially, he alleged his disability onset date as November 15, 2008. R. 168. He listed club foot, knee and ankle surgeries, hamstring pulls/tears, pinacular tendon tear in left foot, arthritis, and weight increase due to limited physical activities as the conditions that limited his ability to work. R. 208. Plaintiff later amended his onset date to October 10, 2010. R. 1552. After his claim was denied initially and on reconsideration, a hearing was held with administrative law judge (ALJ) Thomas A. Ciccolini on June 4, 2013. R. 20. In a nine-page decision dated July 9, 2013, ALJ Ciccolini found that Plaintiff was disabled from November 15, 2008, through June 30, 2010, but that he was no longer disabled after that time.

R. 28. The ALJ reached this conclusion notwithstanding Plaintiff’s amendment of his onset date to October 23, 2010, when he last had full-time employment. R. 70–71. Plaintiff appealed, claiming that his disability continued beyond October 2010, but was denied review by the Appeals Council. Pursuant to a joint stipulation of the parties, the district court remanded Plaintiff’s claim with direction for the ALJ to hold a new hearing and issue a de novo decision. R. 967. ALJ Timothy J. Malloy held a hearing on July 7, 2016, and, in an eight-page decision dated October 6, 2016, found that Plaintiff was not disabled at any point from the November 2008 alleged onset date through December 2015 because he was engaged in substantial gainful employment throughout that period of time as the proprietor of the family sheep farm. ALJ Malloy recommended the initiation of an overpayment action to recoup the benefits paid under the partially

favorable decision that was previously issued. R. 1638. Plaintiff appealed this decision, and the case was yet again remanded pursuant to a joint stipulation of the parties. R. 1655. On remand, the Commissioner was to instruct the ALJ to reevaluate whether Plaintiff was engaged in substantial gainful activity and, if not, proceed with the sequential evaluation process (and, if necessary, obtain supplemental vocational expert evidence). Id. On October 25, 2018, ALJ Timothy Malloy conducted a third hearing in Milwaukee, Wisconsin, where Plaintiff, who was represented by counsel, and a vocational expert (VE) testified. R. 1579. The ALJ opened the hearing by noting that Plaintiff had participated in two previous hearings and that the ALJ issued the immediately prior decision in his case. Id. The ALJ noted he had to comply with the remand order. R. 1580. The ALJ also observed that Plaintiff had been given benefits for a closed period by a different ALJ that “appears to be problematic” but was not presently at issue before him at the moment. Id. For this case, the ALJ said the remand order required him to reevaluate Plaintiff’s substantial gainful activity, if any, and expand the record

with vocational testimony, if necessary. R. 1581. At the time of the third hearing, Plaintiff was 48 years old. R. 1583. Plaintiff is a college graduate and has an associate degree in marketing and a bachelor’s degree in management. Id. Plaintiff testified he is not working because he is disabled. Id. Plaintiff last worked in October 2010 in business and sales for West Business Services. R. 1583–84. He had previous jobs in sales and also worked in the shipping department of a factory. R. 1584. Plaintiff testified that the only income he was then receiving was child support payments from his first ex-wife. R. 1583. Plaintiff testified that he had been living on a farm with his sons and his mother. R. 1585. Plaintiff agreed that he previously told the ALJ and another judge that this was a “hobby farm.” Id. The ALJ then questioned Plaintiff about tax returns Plaintiff filed, each of which included

Schedule F (Profit or Loss From Farming), and named Plaintiff as the proprietor and sheep as the principle crop or activity. Id. Referencing a letter indicating that Plaintiff “did materially participate in the business of sheep farming,” the ALJ noted “[t]here’s a difference between running a hobby farm and having—and being in business with farming.” R. 1586. Plaintiff agreed but stated that “we spend money, but I have never made money” and that he “consider[s] [it] more as a hobby because I do not make income off of it, where I can solely live off that income.” Id. The ALJ questioned Plaintiff about representing to the IRS that he materially participated in the business while at the same time representing that he did not for social security purposes and that it was solely a hobby farm. Id. Plaintiff testified that he worked about seven hours per week on the farm and said he had always worked a separate full-time job for his family’s primary source of income. R. 1587–88. Plaintiff added that the family did the farm “on the side” to teach his kids responsibility and that it had a lot of expenses that they deducted from whatever income he received. R. 1589. He testified that his mother owns the farm, his sons own the animals, and he

never owned the farm. Id. He reiterated that the farm never made a profit, though they did sell animals that helped cover the costs of running the farm and came close to breaking even one year. R. 1590. The farm also received subsidies for selling wool from the Department of Agriculture. R. 1590–91. Plaintiff agreed with the ALJ that he had told the IRS he was substantially engaged in the business of farming in returns filed for the years 2010 through 2013. R. 1551, 1591. Plaintiff also testified that he has always had an accountant prepare his taxes and has no education in the tax code—nor does he understand how the IRS defines a hobby as compared to a business. R. 1611–12. Plaintiff next described his medical and work history. In 2008, Plaintiff had surgery on his lower left foot. R. 1592. At the time, he was performing sales work that was sedentary in nature.

Id. Before he had the surgery, he worked at a desk in sales for about three years. R. 1593. He returned to the sales job after the surgery and worked for about a year while in a wheelchair. Id. His doctor told him to use the wheelchair to elevate his foot and reduce the swelling, according to Plaintiff. R. 1595. While in a wheelchair, Plaintiff stated that his employer provided some accommodation to access the building. R. 1597. Plaintiff said he was terminated from the sales job at West Business Services twice, initially after his first or second surgery after which he was rehired to a different team. R. 1595–96. Plaintiff said he returned to the job after his third surgery but was then terminated again in October 2010. R. 1583, 1596. Plaintiff testified that the company was downsizing at the time it fired him and suspected it fired others because they had medical issues. R. 1598.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Schaaf v. Astrue
602 F.3d 869 (Seventh Circuit, 2010)
Securities & Exchange Commission v. Chenery Corp.
318 U.S. 80 (Supreme Court, 1943)
Campbell v. Astrue
627 F.3d 299 (Seventh Circuit, 2010)
Allord v. Astrue
631 F.3d 411 (Seventh Circuit, 2011)
Delapaz v. Richardson
634 F.3d 895 (Seventh Circuit, 2011)
Jelinek v. Astrue
662 F.3d 805 (Seventh Circuit, 2011)
Shauger v. Astrue
675 F.3d 690 (Seventh Circuit, 2012)
Hicks v. Midwest Transit, Inc.
500 F.3d 647 (Seventh Circuit, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
Broehm v. Saul, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broehm-v-saul-wied-2020.