Jackson v. Harris

84 F.R.D. 602
CourtDistrict Court, N.D. Indiana
DecidedDecember 11, 1979
DocketNo. S 79-213
StatusPublished
Cited by3 cases

This text of 84 F.R.D. 602 (Jackson v. Harris) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Harris, 84 F.R.D. 602 (N.D. Ind. 1979).

Opinion

MEMORANDUM AND ORDER

ALLEN SHARP, District Judge.

Plaintiff has moved to certify a class composed of “all recipients of and applicants for Supplement Security Income (SSI) in the State of Indiana who have had or will have SSI benefits reduced, terminated or denied because of the enforcement by the Social Security Administration of the policy and practice of considering the difference between the fair market value and the actual price paid by an SSI recipient for a necessity of life as in-kind income.”

The Supreme Court decision in Califano v. Yamasaki, 442 U.S. 682, 99 S.Ct. 2545, 2556-2558, 61 L.Ed.2d 176 (1979) has resolved many questions originally raised regarding the propriety of class certification, plaintiff’s purported class does not comport with the Supreme Court’s conclusion regarding the appropriate scope of a class under § 205(g) of the Social Security Act.

In regard to class actions brought under the Act, in Yamasaki, Mr. Justice Blackmun writing for the Court stated:

Moreover, class relief is consistent with the need for case-by-case adjudication emphasized by the Secretary, at least so long as the membership of the class is limited to those who meet the requirements of § 205(g) [42 U.S.C. § 405(g)]. See Norton v. Mathews, 427 U.S. 524, 535-537, 96 S.Ct. 2771, 2776-2778, 49 L.Ed.2d 672 and nn. 4-8 (1976) (Stevens, J., dissenting).

Yamasaki, supra, 99 S.Ct. at 2557.

The dissenting opinion in Norton v. Mathews, supra, which was referred to in the Yamasaki opinion sets out the criteria for a class certified under § 205(g). These prerequisites are:

“(1) a final decision of the Secretary made after a hearing; (2) commencement of a civil action within 60 days after the mailing of notice of such decision (or within such further time as the Secretary may allow); and (3) filing of the action in an appropriate district court, in general that of the plaintiff’s residence or principal place of business.” Weinberger v. Salfi, 422 U.S. 749, 763-764 [95 S.Ct. 2457, 2466, 45 L.Ed.2d 522] [1975], The last two requirements may be waived entirely by the Secretary and the first may be partially waived or satisfied by less than literal compliance. See id. at 763-767 [95 S.Ct. at 2466]; Mathews v. Eldridge, 424 U.S. 319, 326-332 [96 S.Ct. 893, 898-901, 47 L.Ed.2d 18]; Mathews v. Diaz, 426 U.S. 67, 75-77 [96 S.Ct. 1883, 1889-1890, 48 L.Ed.2d 478].

Norton v. Mathews, supra at n. 4.

In this matter, plaintiff’s alleged class does not comport with the requirements of § 205(g). None of the § 205(g) require[604]*604ments as described in the dissenting opinion of Norton, supra, and referred to in Yamasaki, supra, have been met.

With respect to the first requirement of § 205(g), the alleged class has had no hearing and no final decision of the Secretary. Accordingly, there is no jurisdiction for their claims to be heard before the court.

Weinberger v. Salfi, supra, has found that the Secretary may waive full exhaustion in certain cases, but Salfi recognized that it is up to the Secretary to make this decision on waiver:

“ * * * The statutory scheme is thus one in which the Secretary may specify such requirements for exhaustion as he deems serve his own interests in effective and efficient administration. While a court may not substitute its conclusion as to futility for the contrary conclusion of the Secretary, we believe it would be inconsistent with the congressional scheme to bar the Secretary from determining in particular cases that full exhaustion of internal review procedures is not necessary for a decision to be ‘final’ within the language of § 405(g). * * ” 422 U.S. at 766-7, 95 S.Ct. at 2467.

Only the named plaintiff in this action has properly exhausted her administrative remedies. Furthermore, the Secretary has not waived exhaustion for the alleged class members.

The limited exception to the requirement for the exhaustion of administrative remedies found in Eldridge, supra, does not apply to this ease. Eldridge applies only to the situation where a plaintiff’s claim in court is “collateral” to his claim for benefits. Eldridge stated:

“Eldridge’s constitutional challenge is entirely collateral to his substantive claim of entitlement * * *. Thus, unlike the situation in Salfi, denying Eldridge’s substantive claim ‘for other reasons’ or upholding it ‘under other provisions’ at the post-termination stage, 422 U.S., at 762 [95 S.Ct. at 2465], would not answer his constitutional challenge.” Eldridge at 330-1, 96 S.Ct. at 900-901.

Plaintiff’s claim in this action is not collateral at all. Plaintiff’s claim in court is directly related to her claim for benefits.

The Third Circuit’s decision in Liberty Alliance of the Blind v. Califano, 568 F.2d 333 (3d Cir. 1977), does not control this case. In holding that a class action was proper in the Liberty Alliance case, the Third Circuit stated that the test for exhaustion of a statutory issue should be whether the Secretary has taken a final position on that issue. This holding improperly extends Mathews v. Eldridge, supra, in that, as stated supra, Eldridge’s waiver of exhaustion requirements was specifically limited to those cases which raised a constitutional issue collateral to a claim for benefits. Even if the Liberty Alliance holding is accepted, however, it is not applicable to the instant case due to decisive factual differences between the two cases. In Liberty Alliance, the Third Circuit found that the Secretary had taken a final position on the issue raised therein. This finding was based on the fact that lengthy negotiations had taken place on the issue between the plaintiff and the Department of Health, Education and Welfare, culminating in a written statement from an HEW official stating that the Secretary’s position was firm and would not be modified except as dictated by legislative action or by the courts. See Liberty Alliance, 568 F.2d at 346. By contrast, plaintiff here has simply completed the exhaustion requirement for her individual case. There has been no broad statement furnished to the plaintiff, as in Liberty Alliance, sufficient to waive the general requirement of exhaustion for all members of the alleged class.

The decision of the Seventh Circuit in Jimenez v. Weinberger, 523 F.2d 689 (1975), cert. denied, 417 U.S. 628, 94 S.Ct. 2496, 41 L.Ed.2d 363 (1976), is similarly inapplicable here. Jiminez dealt, as did Eldridge, with a constitutional claim over which the Secretary had no authority. Even should the court’s reasoning in Jiminez

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84 F.R.D. 602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-harris-innd-1979.