Joseph Labrie v. Secretary of Health and Human Services

976 F.2d 779, 1992 U.S. App. LEXIS 24519, 1992 WL 247594
Court of Appeals for the First Circuit·Decided September 30, 1992·No. 92-1066·Published·Cited by 21 cases

Opinion

PER CURIAM.

This case compels us to enter the fray which has arisen in the wake of Melkonyan v. Sullivan, — U.S.-, 111 S.Ct. 2157, 115 L.Ed.2d 78 (1991), concerning the timeliness of attorney’s fees applications in so-called “sentence four” Social Security remands. The district court read that decision as creating a “procedural no-man’s land” — as mandating that the application here be denied because it was not filed at an earlier time when, under then-prevailing law, it would have been premature. We disagree.

I.

The facts are straightforward. Joseph Labrie (claimant) filed an application for Supplemental Security Income benefits in December 1985. The Administrative Law Judge (ALJ) denied the claim at step five of the sequential evaluation, the Appeals Council denied review, and claimant filed a timely appeal. A magistrate-judge, to whom the case was referred, determined that the Secretary’s decision was unsupported by substantial evidence. In particular, he found that the Secretary failed adequately to consider claimant’s subjective complaints of pain. The magistrate-judge recommended that the case be remanded for further proceedings. On January 9, 1990, neither party having filed an objection, the district court entered an order adopting the magistrate-judge’s report and recommendation, vacating the Secretary’s decision, and remanding for further agency action.

On remand, the AU conducted a new hearing and, on September 17, 1991, issued a decision awarding benefits to claimant. Following the prevailing practice, claimant then submitted to the district court, on October 22, 1991, a proposed final order and application for attorney’s fees under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412(d). Among the prerequisites to an EAJA award is that the party file an application “within thirty days of final judgment in the action.” Id. § 2412(d)(1)(B). Relying on Melkonyan, the district court determined that its January 9, 1990 remand order constituted the final judgment, such that claimant’s application needed to have been filed within ninety days of that date. 1 The application was thus denied, on November 5, 1991, as being over eighteen months late. Claimant thereafter filed motions for relief under Fed.R.Civ.P. 59(e) and 60(b), which were denied on January 3, 1992. The district court acknowledged that its ruling “may be perceived as an unfair result,” 2 but considered such an outcome mandated by the intervening Melkonyan decision. This appeal followed.

II.

A trio of Supreme Court decisions involving claims for disability benefits informs the analysis here. In Sullivan v. Hudson, 490 U.S. 877, 109 S.Ct. 2248, 104 L.Ed.2d 941 (1989), the Court determined that an EAJA fee award could encompass work *781 performed before the agency on remand. Specifically, it found that such agency proceedings may be so “intimately connected” to the judicial proceedings as to be considered part of the “civil action” 3 for which EAJA fees were available. Id. at 892, 109 S.Ct. at 2257. In reaching this conclusion, the Court first took note of the “somewhat unusual” judicial review provisions in 42 U.S.C. § 405(g):

The detailed provisions for the transfer of proceedings from the courts to the Secretary and for the filing of the Secretary’s subsequent findings with the court suggest a degree of direct interaction between a federal court and an administrative agency alien to traditional review of agency action under the Administrative Procedure Act.

490 U.S. at 885, 109 S.Ct. at 2254. 4 It then emphasized three points. First, “[i]n many remand situations, the court will retain jurisdiction over the action pending the Secretary’s decision and its filing with the court.” Id. at 886, 109 S.Ct. at 2254. 5 Second, where a remand for further proceedings does not dictate the receipt of benefits, “the claimant will not normally attain ‘prevailing party’ status ... until after the result of the administrative proceedings is known.” Id. And third, referring to EAJA’s requirement that an application be filed within thirty days of “final judgment,” it noted that “[a]s in this case, there will often be no final judgment in a claimant’s civil action for judicial review until the administrative proceedings on remand are complete.” Id. at 887, 109 S.Ct. at 2255. The Court concluded that EAJA fees for representation on remand were available “where a court orders a remand ... and retains continuing jurisdiction over the case pending a decision from the Secretary which will determine the claimant’s entitlement to benefits.” Id. at 892, 109 S.Ct. at 2258.

The following term, Sullivan v. Finkelstein, 496 U.S. 617, 110 S.Ct. 2658, 110 L.Ed.2d 563 (1990), was decided. At issue there was whether a remand order was immediately appealable as a “final decision” under 28 U.S.C. § 1291; EAJA was not involved. An agency regulation provided that a surviving spouse (unlike a wage earner) was disabled only if he or she suffered from an impairment meeting the Secretary’s Listing of Impairments; age, edu *782 cation and work experience were not to be considered. The district court effectively invalidated this regulation. It found that the claimant did not have a listed impairment, but nonetheless remanded because of suggestions that claimant was unable to engage in any gainful activity. The Secretary sought to take an immediate appeal; the appellate court dismissed for lack of jurisdiction.

In finding the remand order to be an appealable final decision, the Court distinguished between remands ordered pursuant to sentence four of 42 U.S.C. § 405(g) and those pursuant to sentence six. Claimant argued that § 405(g), in sentence seven, contemplated an appealable final judgment to be entered by the district court following the remand proceedings. Yet the post-remand review called for under sentence seven, the Court held, referred only to cases that had been remanded under sentence six. And a sentence six remand was only “appropriate when the district court learns of evidence not in existence or available to the claimant at the time of the administrative proceeding that might have changed the outcome of that proceeding.” 496 U.S. at 626, 110 S.Ct. at 2664. Rather, the district court’s order was a sentence four remand — “a judgment ...

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Joseph Labrie v. Secretary of Health and Human Services, 976 F.2d 779, 1992 U.S. App. LEXIS 24519, 1992 WL 247594 (1st Cir. 1992).

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