Dotson v. Shalala

1 F.3d 571
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 2, 1993
Docket92-3148
StatusPublished
Cited by8 cases

This text of 1 F.3d 571 (Dotson v. Shalala) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dotson v. Shalala, 1 F.3d 571 (7th Cir. 1993).

Opinion

1 F.3d 571

42 Soc.Sec.Rep.Ser. 17, Unempl.Ins.Rep. CCH 17453A
Harold W. DOTSON, Plaintiff-Appellant,
v.
Donna E. SHALALA,* Secretary of the Department
of Health and Human Services of the United States
of America, Defendant-Appellee.

No. 92-3148.

United States Court of Appeals,
Seventh Circuit.

Argued April 6, 1993.
Decided Aug. 2, 1993.

Thomas M. Henry, Peoria, IL (argued), for plaintiff-appellant.

Michael C. Messer (argued), Dept. of Health and Human Services, Region V, Office of Gen. Counsel, Chicago, IL, K. Tate Chambers, Asst. U.S. Atty., Peoria, IL, for defendant-appellee.

Before RIPPLE and MANION, Circuit Judges, and ENGEL, Senior Circuit Judge.**

ENGEL, Senior Circuit Judge.

Harold Wayne Dotson, a Supplemental Security Income claimant, appeals the district court's grant of summary judgment in favor of Donna E. Shalala, Secretary of the Department of Health and Human Services. In granting summary judgment, the district court upheld an administrative law judge's finding that Dotson was engaging in substantial gainful activity by supporting a $200- to $300-per-day heroin and cocaine habit through illegal means. See Dotson v. Sullivan, 813 F.Supp. 651 (C.D.Ill.1992). Because we agree that illegal activity can constitute substantial gainful activity, we affirm.

I. BACKGROUND

Dotson applied for Supplemental Security Income benefits on September 25, 1989, alleging disability since 1968 due to asthma, multiple allergies, and past drug abuse. The Social Security Administration denied his application on January 10, 1990, and again upon reconsideration on May 21, 1990. Dotson then requested and received a hearing before an administrative law judge ("ALJ"). At the administrative hearing, Dotson testified that he uses $200 to $300 worth of heroin and cocaine each day. Additionally, he testified that he supports his drug habit by hustling. When asked to define hustling, Dotson replied: "steal, beg, whatever, you know."

With regard to his begging, Dotson stated that he usually panhandles at the Warner Homes, which are located in a poor neighborhood in Peoria, Illinois. As to Dotson's thievery, the following colloquy occurred during the administrative hearing:

Q. [By ALJ] Where do you steal at?

A. [By Dotson] You can do that anywhere. Wherever we can find a place to.
Q. Give me an idea. Give me some examples.
A. The mall, downtown, wherever. You just ride and look and, you know.
Q. How long do you spend riding and looking until you find a place to steal?
A. As long as you have to.
Q. Like how long?
A. Sometime--
Q. All day long?
A. Sometimes it takes all day.
Q. What kinds of things have you stolen this month?
A. This month?
Q. Uh huh.
A. I, well, I like to, I try to concentrate on saws.
Q. On what?
A. Saws.
Q. Saws?
A. You know, the chainsaws, the little bitty chainsaws?
Q. Where do you find those at?
A. Everywhere, everywhere.
Q. And once you get them, what do you do with them?
A. You sell them.
Q. To who?
A. A lot of people buy.

Q. Well, where do you find--I wouldn't imagine there would be a lot of demand for them in Warner homes.

A. No.
Q. Where do you go to sell the chainsaws?
A. Different businesses.
Q. Like what?
A. Small businesses.
Q. Give me some examples.
A. Like small stores or cleaners, different places like that.

Q. Do you have to travel around to these places? How long does it take you to find somebody to buy a saw?

A. Usually, they already, you have been--you kind of already know they probably want one.

Q. So you have already canvassed these places earlier? You have gone out and--

A. No, you have probably sold them stuff and they can give you kind of an idea about what else they might like, you know.

Based on Dotson's testimony, the ALJ found that Dotson's stealing and panhandling constituted substantial gainful activity ("SGA") worth an average of approximately $5,600 per month and, accordingly, denied his claim for SSI benefits. Specifically, the ALJ found that, due to the poor area in which Dotson panhandles, the bulk of his income must come from illegal means. As to the nature of Dotson's criminal endeavors, the ALJ concluded:

In order to steal he must "case" the area in which he has determined to steal the property. He must then plan on how he is going to steal the property and then actually steal it. During the month in which the hearing was held the claimant was stealing chainsaws. Lifting and carrying the chainsaws would also be significant physical activity. The planning and execution of the larceny entails significant mental activity. From these activities the claimant earns enough money to support his cocaine habit and provide him with other money in substantial amounts exceeding $200 to $300 a day. [Emphasis in original.]

On July 9, 1991, the Appeals Council declined to review the ALJ's decision. Dotson then filed the instant action against the Secretary of the Department of Health and Human Services ("Secretary") in federal court. On July 1, 1992, with cross-motions for summary judgment before it, the district court granted the Secretary's motion for summary affirmance and entered a separate judgment against Dotson and in favor of the Secretary. See Dotson v. Sullivan, 813 F.Supp. 651 (C.D.Ill.1992). This appeal followed.

II. DISCUSSION

Dotson essentially raises four arguments. First, he believes that illegal activities undertaken solely to satisfy a drug addiction cannot constitute SGA.

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