Hinton v. Sullivan

737 F. Supp. 232, 1990 U.S. Dist. LEXIS 3347, 1990 WL 66318
CourtDistrict Court, S.D. New York
DecidedMarch 28, 1990
Docket84 Civ. 9276(CES)
StatusPublished
Cited by7 cases

This text of 737 F. Supp. 232 (Hinton v. Sullivan) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hinton v. Sullivan, 737 F. Supp. 232, 1990 U.S. Dist. LEXIS 3347, 1990 WL 66318 (S.D.N.Y. 1990).

Opinion

*234 MEMORANDUM DECISION

STEWART, District Judge:

At the outset we express our great hope that this decision will help to resolve a long and often troubling course of events. This action has been particularly frustrating because the parties had reached the brink of what all considered to be an fair settlement over a year ago only to see it subsequently unravel. A recitation of the background to this action will amply illustrate the convoluted twists and turns this case has taken and the almost unfathomable bureaucracy of the Social Security Administration (the “SSA”) which has in great part complicated the resolution of this matter.

FACTUAL BACKGROUND Plaintiff, Granville Hinton, originally filed this action pro se on December 26, 1984 seeking, inter alia, reinstatement of Supplemental Security Income (“SSI”) benefits. 1 Mr. Hinton’s difficulties began in 1980 when the SSA erroneously denied plaintiffs application for Social Security retirement insurance benefits in 1980. In 1981 this error was corrected and retroactive retirement benefits of $5626.50 were awarded to plaintiff along with monthly retirement benefits of $180.40. Since plaintiff was also a recipient of SSI this award of retirement benefits reduced his SSI benefits. 2 Thus, commencing in March of 1982 plaintiff began to receive monthly SSI benefits of $167.51. 3

This would have been the end of it were it not for the fact that plaintiffs receipt of over $5000 in retroactive retirement benefits also had an effect on his eligibility for SSI benefits. SSI recipients must have limited resources to be eligible for SSI benefits. 4 In 1982 the resource limit was $1500. Accordingly, despite plaintiffs assertion that he had spent $4500 of his retroactive retirement benefits repaying loans, the SSA terminated his SSI benefits in July of 1982 for being over the resource limit. It also concluded that plaintiff had been overpaid $1646.66 in SSI benefits, and that no SSI benefits were due to plaintiff for the preceding three months. Plaintiff requested a reconsideration of these actions since he contended that the retroactive benefit funds had been used to pay creditors. His request for reconsideration was administratively denied.

In December of 1982 plaintiff requested an administrative hearing to appeal the termination and overpayment determinations before an administrative law judge. Unfortunately, the administrative law judge did not directly address these issues in her decision, deciding only a collateral issue. In May of 1983 the Appeals Council denied plaintiffs request for review. Plaintiff then filed in June of 1983 a new application for SSI benefits. This new application was apparently not acted upon.

The next step taken by plaintiff was the filing of the instant action in December of 1984. Defendant Secretary of Health and Human Services (the “Secretary”) moved for remand in order to locate plaintiffs claims file. On August 16, 1985 we granted the Secretary’s motion for remand (the “August Order” or “remand Order”) and awarded plaintiff interim benefits during the pendency of the remand “in an amount equal to the amount that plaintiff had been receiving prior to defendant’s termination of benefits in July 1982.”

Again, this presumably would have been a relatively simple case were it not for the fact that in September of 1985 an SSA employee interviewed the plaintiff to dis *235 cuss his “potential SSI eligibility.” This employee directed the plaintiff to sign a standard form which erroneously stated that Hinton was receiving about $128/month in support from two individuals (“in-kind support”). Plaintiff apparently signed the form without reading it carefully. Almost immediately after signing the form, he returned to inform the SSA employee that he was not receiving support from the two individuals named on the form since the named parties were deceased.

Nevertheless, the defendant released a check of approximately $1800 representing retroactive SSI benefits from June 1983 until July 1985. Despite plaintiffs statements to the contrary this check calculated retroactive benefits on the assumption that plaintiff had “reported” receiving in-kind support from the two deceased individuals. Moreover, the SSA informed plaintiff that his SSI benefits also were reduced because of his receipt of unearned income of $250.00/mon'th from June 1983 until July 1985. However, and incredibly, this $250/month was apparently a “phony” entry which had been entered into the computer by SSA employees to keep the computer from releasing any checks to the plaintiff for retroactive benefits. See Defendant’s Memorandum of Law In Opposition To Plaintiffs Motion for an Order Directing the Payment of Additional Benefits and Penalties and Enjoining the Reduction or Termination of Benefits (“Deft’s Brief in Opposition”) at 5. Yet this “phony” amount was actually charged as income to plaintiff.

Plaintiff requested an administrative appeal of this determination. This appeal was apparently not acted upon. Therefore, since plaintiff believed the amount of the retroactive benefits to be wrong he returned the check to the SSA uncashed.

To add to the confusion, the information about the in-kind support from the two deceased individuals was not corrected in the computer. The result was that plaintiff also received greatly reduced SSI benefit checks for the winter months of 1985. When plaintiff also returned these , benefit checks uncashed, he was placed on “non-pay” status and no longer received any checks whatsoever. 5

Meanwhile pursuant to our remand Order a number of administrative hearings were held. On October 6, 1986, the Social Security Appeals Council issued a decision which held that the plaintiff was not over the resource limit, that there was no basis for termination of his benefits, and that there was no basis for the overpayment determination except for the month of April 1982. The Appeals Council waived this April overpayment. 6 In February of 1987 defendants notified this court of the Appeals Council determination.

Finally, in July of 1987 plaintiff was restored to SSI benefits. Presumably, pursuant to the Appeals Council decision which reinstated plaintiff’s benefits from July 1982, several checks were also issued to plaintiff by SSA totaling approximately $6100. These checks were sent in varying amounts over a period of months without any explanation as to what they were for. Because plaintiff believed that these checks were for retroactive payments and since the amount did not represent the full retroactive amount he believed was due him, he moved to hold defendant in contempt of our August Order and for an accounting. This motion was not adjudicated since there was definite movement by the parties toward settlement after the contempt motion was filed.

In June of 1989, on the eve of final settlement approval, plaintiff was terminated from SSI benefits again. In addition, *236

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Cite This Page — Counsel Stack

Bluebook (online)
737 F. Supp. 232, 1990 U.S. Dist. LEXIS 3347, 1990 WL 66318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hinton-v-sullivan-nysd-1990.