Heather D. Grady v. Social Security Administration

District Court, E.D. Arkansas·Decided June 8, 2026·No. 4:25-cv-00197·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

HEATHER D. GRADY PLAINTIFF

v. Case No: 4:25-cv-00197-KGB

SOCIAL SECURITY ADMINISTRATION DEFENDANT

ORDER Before the Court are defendant Social Security Administration’s motion to dismiss (Dkt. No. 8), United States Magistrate Judge Patricia S. Harris’s Findings and Recommendation (“Recommendation”) (Dkt. No. 15), and plaintiff Heather D. Grady’s motion (Dkt. No. 17). Grady filed objections to the Recommendation and requested a de novo review of the record (Dkt. No. 16). Grady also filed a second notice (Dkt. No. 18). After conducting a de novo review of the record, including but not limited to the Recommendation, objections, motion to dismiss, and other filings, the Court adopts the Recommendation in its entirety as this Court’s findings in all respects (Dkt. No. 15). The Court writes separately to address Grady’s objections (Dkt. No. 16). I. Background The undisputed facts are that on June 12, 2024, an Administrative Law Judge (“ALJ”) conducted a hearing by telephone to determine if Grady qualified for a waiver of the recovery of an overpayment of benefits (Dkt. No. 15). On July 3, 2024, the ALJ found that Grady was overpaid benefits in the amount of $35,312.00 during the period from August 2011 to October 2019 and that Grady was at fault for causing the overpayment (Id.). The ALJ found that recovery of the overpayment was not waived, and Grady was liable for the overpayment (Id.). A copy of the ALJ’s decision was mailed to Grady (Id.). On July 10, 2024, Grady filed an administrative request for review (Id.). The Appeals Council denied her request for review on July 15, 2024, and the Commissioner’s decision became final (Id.). Grady was notified of her right to file a civil action in federal court and the time within which she must do so (Id.)

On March 5, 2025, Grady began this case by filing a pro se complaint on a standard form and listing the Social Security Administration as a defendant (Dkt. No. 2). In the complaint, Grady challenged the denial of her request for a waiver of the recovery of the overpayment of benefits and asked that she be awarded retroactive benefits (Id.). At some point, the Appeals Council learned of the complaint at bar and Grady’s reason for its untimely filing. The Appeals Council construed her reason for her late filing as a belated request for an extension of time, but the Appeals Council denied her request in a letter dated June 3, 2025, finding the following: In your civil complaint, you stated, without elaboration or corroboration, that “the reason for late filing is due to illness, hospitalization, and treatment.” Without more, we cannot grant an extension of time and deem the civil complaint timely filed. Therefore, we have denied your request for more time. (Dkt. No. 15). On June 9, 2025, the Commissioner filed a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) (Dkt. No. 8). In the motion, the Commissioner asked that Grady’s complaint be dismissed as untimely (Id.). The Commissioner supported the motion with a declaration from Lesha Cowell, Chief of Court Case Preparation and Review Branch 4 of the Office of Appellate Operations (Dkt. No. 8-1). On August 27, 2025, Grady filed a response to the Commissioner’s motion to dismiss (Dkt. No. 11). In the response, Grady acknowledged that her complaint is untimely, but Grady maintained that her untimely filing should be excused (Id.). She argued that she was involved in other litigation during the period for filing a timely complaint in this case, and she believed that “an additional filing was not appropriate until a response had been received from the court on the previously filed claim.” (Id., at 2). Additionally, Grady contended that she was experiencing health and other personal problems that prevented her from filing a timely complaint (Id.). When Judge Harris began reviewing the Commissioner’s motion to dismiss and Grady’s

response, the motion was construed as one for summary judgment pursuant to Federal Rule of Civil Procedure 56 because it was likely that Judge Harris would consider Cowell’s declaration attached to the motion (Dkt. No. 12). The parties were notified of the construction and given until September 18, 2025, to present any pertinent information for Judge Harris’s consideration regarding the pending motion (Id.). After reviewing the record before the Court, Judge Harris entered her Recommendation, recommending that the Court affirm the ALJ’s decision and enter judgment in favor of the Commissioner (Dkt. No. 14). Grady objected (Dkt. No. 16). Grady specifically objects because she contends her “trip-ups” during the filing period tolled the time required to file her complaint. She describes her trip ups as “two moves, severe illness,

and constant harassment.” (Id.). II. Legal Framework The law permits a Supplemental Security Income (“SSI”) claimant to seek judicial review of an unfavorable decision by filing a civil action within 60 days of the mailing of a final decision. 42 U.S.C. § 405(g) (“Any individual, after any final decision of the Commissioner of Social Security made after a hearing to which he was a party, irrespective of the amount in controversy, may obtain a review of such decision by a civil action commenced within sixty days after the mailing to him of notice of such decision or within such further time as the Commissioner of Social Security may allow.”). Under the Commissioner’s regulations, a decision is “mailed” for the purpose of the 60–day filing requirement on the date the claimant receives notice that the Appeals Council denied a request for review. 20 C.F.R. § 422.2110(c) (“[T]he date of receipt of notice of denial of request for review of the presiding officer’s decision or notice of the decision by the Appeals Council shall be presumed to be 5 days after the date of such notice, unless there is a

reasonable showing to the contrary.”). A person is presumed to have received notice 5 days after the notice is mailed. 20 C.F.R. § 404.901 (“Date you receive notice means 5 days after the date on the notice, unless you show us that you did not receive it within the 5–day period.”); 26 C.F.R. § 422.210(c) (“a civil action under section 205(g) of the Act must be commenced within 60 days after the date the individual receives notice.”). If a claimant files her civil case outside the 60–day filing period in the absence of tolling, the case is time-barred. Bowen v. City of New York, 476 U.S. 467, 478 (1986) (60–day filing requirement acts as a statute of limitations); see Caran v. Bowen, 834 F.2d 720, 721 (8th Cir. 1987) (“[T]imely filing requirement is not jurisdictional but rather is a statute of limitations and as such will bar suit unless it is tolled.”). III. Discussion

A. Tolling The decision challenged in this case became final on July 15, 2024, when the Commissioner’s Appeals Council denied Grady’s request for review. Grady was notified of her right to file a civil action in federal court if she disagreed with the decision.

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