Kobak v. Commissioner Social Security Administration

District Court, D. Oregon·Decided June 1, 2023·No. 3:21-cv-01589·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

LINDIE K.,1 Case No. 3:21-cv-01589-SB

Plaintiff, OPINION AND ORDER

v.

KILOLO KIJAKAZI, Acting Commissioner of Social Security,

Defendant.

BECKERMAN, U.S. Magistrate Judge. This matter comes before the Court on the Commissioner of the Social Security Administration’s (“Commissioner”) motion to alter judgment pursuant to Federal Rule of Civil Procedure (“Rule”) 59(e). The Commissioner asks the Court to reconsider its Opinion and Order dated March 22, 2023, which reversed the Commissioner’s denial of Plaintiff’s applications for Supplemental Security Income and Disability Insurance Benefits and remanded for a finding of disability and payment of benefits. (See Op. & Order, ECF No. 33.) The parties have consented

1 In the interest of privacy, this opinion uses only the first name and the initial of the last name of the non-governmental party in this case. to the jurisdiction of a magistrate judge pursuant to 28 U.S.C. § 636(c). For the reasons explained below, the Court denies the Commissioner’s motion. DISCUSSION I. STANDARD OF REVIEW “Rule 59(e) allows a litigant to file a ‘motion to alter or amend a judgment.’” Banister v. Davis, 140 S. Ct. 1698, 1702 (2020) (quoting FED. R. CIV. P. 59(e)). Rule 59(e) “gives a district

court the chance ‘to rectify its own mistakes in the period immediately following’ its decision.” Id. (quoting White v. N.H. Dep’t of Emp. Sec., 455 U.S. 445, 450 (1982)). Under Rule 59(e), “a court has discretion to alter or amend a judgment if: (1) it is presented with newly discovered evidence; (2) it committed clear error or made an initial decision that was manifestly unjust; or (3) there is an intervening change in controlling law.” Fenton v. Colvin, No. 6:14-cv-0350-SI, 2015 WL 3464072, at *1 (D. Or. June 1, 2015) (citing Ybarra v. McDaniel, 656 F.3d 984, 998 (9th Cir. 2011) and McDowell v. Calderon, 197 F.3d 1253, 1255 (9th Cir. 1999)). Courts, however, “will not address new arguments or evidence that the moving party could have raised before the decision issued.” Banister, 140 S. Ct. at 1703 (citing 11 C. Wright, A. Miller, & M. Kane, Federal Practice and Procedure § 2810.1, pp. 163-

64 (3d ed. 2012)). The Ninth Circuit has explained that Rule 59(e) “offers an extraordinary remedy, [which should] be used sparingly in the interests of finality and conservation of judicial resources.” Kona Enters., Inc. v. Est. of Bishop, 229 F.3d 877, 980 (9th Cir. 2000) (citation omitted). II. ANALYSIS In its March 22, 2023, Opinion and Order, the Court concluded, inter alia, that the Administrative Law Judge (“ALJ”) improperly discounted Plaintiff’s symptom testimony based on a finding that her testimony was inconsistent with the objective medical evidence, and that the ALJ failed to include all of Plaintiff’s limitations in the residual functional capacity (“RFC”) determination. See Lindie K. v. Kijakazi, No. 3:21-cv-01589-SB, 2023 WL 2597611, at *3-4 (D. Or. Mar. 22, 2023). The Court found that “there [was] not substantial evidence in the record to support the ALJ’s conclusion” and that if Plaintiff’s symptom testimony was “credited as true, the ALJ would be required to find Plaintiff disabled on remand.” Id. at *6. The Court further

found that it “d[id] not have any serious doubt about whether Plaintiff is disabled” and therefore the Court exercised its discretion to remand for an award of benefits. Id. at *7-8. The Commissioner argues that the Court clearly erred by remanding for an award of benefits.2 (See Def.’s Mem. Supp. Mot. at 1, ECF No. 35.) Although the Commissioner “maintains that substantial evidence supports the ALJ’s decision on the merits[, ]for the purposes of th[e] Rule 59(e) motion, the Commissioner focuses only on the Court’s ruling concerning the remedy.” (Id. at 2.) Specifically, the Commissioner argues that because the “record contains various discrepancies that call [Plaintiff’s] disability into question” further administrative proceedings are necessary. (Id. at 4.) The Commissioner asserts that the Court “misapplied” the

“ordinary remand rule[.]” (Id. at 3, citing Leon v. Berryhill, 880 F.3d 1041, 1045 (9th Cir. 2018) and Brown-Hunter v. Colvin, 806 F.3d 487, 594 (9th Cir. 2015)). Plaintiff responds that the Commissioner “reiterate[s] arguments made in the response brief which have already been considered by the Court and rejected.” (Pl.’s Opp’n at 3, ECF No. 36.) In reply, the Commissioner asserts that “significant factual conflicts in the record” and “inconsistencies” in the evidence demonstrate that “an award of benefits is inappropriate.” (Def.’s Reply at 2-3, ECF No. 37) (citations omitted).

2 The Commissioner does not assert that there has been an intervening change in controlling law nor any new evidence discovered. Despite the ordinary remand rule, the Ninth Circuit has recognized that “Congress has granted courts some additional flexibility . . . ‘to reverse or modify an administrative decision without remanding the case for further proceedings.’” Treichler v. Comm’r Soc. Sec. Admin., 775 F.3d 1090, 1099 (9th Cir. 2014) (citations omitted). The Ninth Circuit has clearly instructed that “in appropriate circumstances” a district court may remand a Social Security appeal for an award

of benefits. Garrison v. Colvin, 759 F.3d 995, 1019 (9th Cir. 2014); see also Treichler, 775 F.3d at 1100 (“‘[T]here are sound practical reasons why we have viewed our own decisions in this area as discretionary,’ namely because the ‘decision whether to remand for further development of the administrative record or to direct an immediate award of benefits is a fact-bound determination that arises in an infinite variety of contexts,’ and ‘[n]arrow rules do not serve well in such a situation.’”) (citation omitted). As the Court discussed in its Opinion and Order, courts determine whether such circumstances exist by applying the “credit as true” standard. See Treichler, 775 F.3d at 1100-01. The credit-as-true standard is satisfied if three conditions are present: “(1) the record has been fully developed and further administrative proceedings would

serve no useful purpose; (2) the ALJ has failed to provide legally sufficient reasons for rejecting evidence, whether claimant testimony or medical opinion; and (3) if the improperly discredited evidence were credited as true, the ALJ would be required to find the claimant disabled on remand.” Garrison, 759 F.3d at 1020 (citations omitted). In its March 22, 2023, Opinion and Order, the Court made specific findings regarding each condition of the “credit as true” standard. See Lindie K., 2023 WL 2597611, at *6. Specifically, the Court found that the ALJ failed to provide legally sufficient reasons for rejecting Plaintiff’s gastrointestinal and urinary symptom testimony, that the record has been fully developed, and that if the improperly discredited evidence is credited as true, on remand the ALJ would be required to find Plaintiff disabled. Id.

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