Darlene Olivia Varela v. Frank Bisignano, Commissioner of Social Security

District Court, D. New Mexico·Decided July 23, 2026·No. 1:25-cv-00741·Unknown

Opinion

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

DARLENE OLIVIA VARELA,

Plaintiff,

vs. Civ. No. 25-741 JFR

FRANK BISIGNANO, Commissioner of Social Security,

Defendant.

MEMORANDUM OPINION AND ORDER1 THIS MATTER is before the Court on the Social Security Administrative Record (Doc. 9)2 filed September 30, 2025, in connection with Plaintiff’s Motion to Reverse and Remand for Rehearing With Supporting Memorandum, filed December 12, 2025. Doc. 12. Defendant filed a Response on March 12, 2025. Doc. 18. Plaintiff filed a Reply on March 23, 2026. Doc. 19. 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 is GRANTED. I. Background and Procedural Record Plaintiff Darlene Olivia Varela (Ms. Varela) alleges she became disabled on April 15, 2017, at the age of forty-two years and eleven months, because of chronic back pain, anxiety,

1 Pursuant to 28 U.S.C. § 636(c), the parties consented to the undersigned to conduct any or all proceedings, and to enter an order of judgment, in this case. (Docs. 4, 8, 17.)

2 Hereinafter, the Court’s citations to Administrative Record (Doc. 9), which is before the Court as a transcript of the administrative proceedings, are designated as “Tr.” and depression. Tr. 79, 255. Ms. Varela completed one year of college in 2005. Tr. 256. Ms. Varela worked as a home health care aide and substitute teacher. Tr. 246, 256. Ms. Varela stopped working on March 31, 2018, because of her conditions “and because of other reasons.” Tr. 255. Ms. Varela’s date of last insured is September 30, 2021.3 Tr. 1605. Therefore, to receive disability insurance benefits, Ms. Varela must show she was disabled prior to that date.

See Potter v. Sec’y of Health & Human Servs., 905 F.2d 1346, 1347 (10th Cir. 1990). On September 13, 2018, Ms. Varela filed an application for Social Security Disability Insurance Benefits (“DIB”) under Title II of the Social Security Act (the “Act”), 42 U.S.C. § 401 et seq.4 Tr. 169-77. On December 17, 2018, Ms. Varela’s application was denied. Tr. 77, 78- 88, 104-06. On August 12, 2019, it was denied again at reconsideration. Tr. 89, 90-103, 108- 113. Upon Ms. Varela’s timely request, Administrative Law Judge (ALJ) Holly Hansen held a hearing on June 16, 2020. Tr. 42-76. Ms. Varela appeared telephonically with attorney Michelle Baca.5 Id. On July 21, 2020, ALJ Hansen issued an unfavorable decision. Tr. 7-25. On February 10, 2021, the Appeals Council denied Ms. Varela’s request for review. Tr. 1-3.

On April 1, 2021, Ms. Varela timely filed a Complaint seeking judicial review of the Commissioner’s final decision. Tr. 894-97 (see USDC NM Civ. No. 21-297 JHR (Doc. 1)). On January 2, 2022, Magistrate Judge Jerry H. Ritter entered an Order granting the Commissioner’s Unopposed Motion to Remand. Tr. 898-902. On June 15, 2022, the Appeals Council entered an Order Remanding Case to Administrative Law Judge instructing that ALJ Hansen’s decision did

3 To qualify for DIB, a claimant must establish that he met the statutory requirements for disability on or before her date of last insured. See 42 U.S.C. §§ 416(i)(3), 423(c)(1); Wilson v. Astrue, 602 F.3d 1136, 1139 (10th Cir. 2010).

4 On October 10, 2018, Ms. Varela filed an application for Social Security Supplemental Security Income (“SSI”) under Title XVI of the Act, 42 U.S.C. § 1381 et seq. Tr. 178-86. The Administrative Record contains no other documents related to this application.

5 Ms. Varela is represented in these proceedings by Attorney Laura Johnson. Doc. 1. not adequately consider the supportability of the medical opinions in the record and that the assessed mental RFC did not adequately reflect limitations corresponding to the assessed moderate limitations in concentration, persistence, or pace. Tr. 905-07. On June 21, 2023, ALJ Michelle Lindsay held a second administrative hearing. Tr. 836- 63. On July 24, 2023, ALJ Lindsay issued an unfavorable decision. Tr. 804-26. On

September 22, 2023, Ms. Varela timely filed a Complaint seeking judicial review of the Commissioner’s final decision. See USDC NM Civ. No. 23-818 WJ/JMR (Doc. 1). On March 26, 2024, District Judge William P. Johnson entered an Order granting the Commissioner’s Unopposed Motion to Remand. Tr. 1656-60. On April 27, 2024, the Appeals Council entered an Order Remanding Case to Administrative Law Judge instructing that the ALJ’s decision (1) did not contain an adequate evaluation of the medical source opinion of consultative examiner Jennifer Como, M.D., and that the reasoning for discounting Dr. Como’s opinion was deficient; (2) did not contain an adequate evaluation of medical source opinions Felicia Rivera, MSW, LCSW, Matthew Valeriano, M.D., and Laura Robinson, CNP, and that

further consideration was warranted; and (3) did not adequately evaluate the nature, severity, and limiting effects of claimant’s obesity. Tr. 1661-66. On April 3, 2025, ALJ Lindsay held a third administrative hearing. Tr. 1629-1655. On April 24, 2025, ALJ Lindsay issued an unfavorable decision. Tr. 1600.1617. On August 5, 2025, Ms. Varela filed the Complaint now before the Court. Doc. 1. 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.”6 If the claimant is engaged in substantial gainful activity, she is not disabled regardless of his 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.

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Darlene Olivia Varela v. Frank Bisignano, Commissioner of Social Security, (D.N.M. 2026).

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