Mark Schloesser v. Nancy A. Berryhill

Court of Appeals for the Seventh Circuit·Decided September 7, 2017·No. 16-1862·Published

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 16‐1862 MARK SCHLOESSER, Plaintiff‐Appellant,

v.

NANCY A. BERRYHILL, Acting Commissioner of Social Security,* Defendant‐Appellee. ____________________

Appeal from the United States District Court for the Western District of Wisconsin. No. 15‐cv‐276‐bbc — Barbara B. Crabb, Judge. ____________________

ARGUED JANUARY 19, 2017 — DECIDED SEPTEMBER 7, 2017 ____________________

Before FLAUM, MANION, and WILLIAMS, Circuit Judges. WILLIAMS, Circuit Judge. Mark Schloesser, who suffers from a combination of physical impairments, applied for dis‐

* Nancy A. Berryhill was substituted for Carolyn W. Colvin, as Acting Commissioner of Social Security, on January 27, 2017. See Fed. R. App. P. 43(c)(2). 2 No. 16‐1862

ability insurance benefits in November 2012. The Social Secu‐ rity Administration (“SSA”) initially denied his application. After reconsideration and a hearing, an Administrative Law Judge (“ALJ”) found him disabled and granted benefits in Au‐ gust 2014. One month later, sua sponte, the SSA Appeals Coun‐ cil commenced review of the ALJ’s favorable decision. The Appeals Council reversed the ALJ’s favorable decision, con‐ cluding that the ALJ’s findings were not supported by sub‐ stantial evidence and that Schloesser was not disabled as of September 30, 2011, his last insured date. Schloesser sought review of the Appeals Council’s deci‐ sion in the district court. It affirmed the Appeals Council’s de‐ cision, finding that it was supported by substantial evidence. Schloesser now appeals, arguing that the Appeals Council erred because: (1) it failed to apply SSR 83‐20 in its determi‐ nation of his onset date; (2) its findings that he did not suffer from severe impairments of cervical radiculopathy, major joint dysfunction, and history of left shoulder surgery were not supported by substantial evidence; and (3) its finding that his residual functional capacity (“RFC”) did not include being off‐task up to 10% of the workday or needing unscheduled breaks was not supported by substantial evidence. We affirm the denial of benefits because we find that SSR 83‐20 was ir‐ relevant to the Appeals Council’s determination and that its findings regarding his impairments and RFC are supported by substantial evidence. I. BACKGROUND Mark Schloesser worked for 23 years as a dry curer in a meat‐processing factory, a position that required him to regu‐ larly lift more than 70 pounds. But, after undergoing rotator No. 16‐1862 3

cuff surgery on his left shoulder in 2001 and then a lactimec‐ tomy (disc removal in his lower back) in 2002, Schloesser left the meat‐processing factory in 2003. For approximately six years, he was self‐employed in construction, until his persis‐ tent shoulder and lower back problems prevented him from being able to regularly lift more than 50 pounds as required by his construction work. In November 2012, Schloesser ap‐ plied for disability insurance benefits under 42 U.S.C. § 416(i). Schloesser, who had not worked since October 2009, com‐ plained that he suffered disabling pain in his back, neck, and shoulder, which, combined with his obesity, made it impossi‐ ble for him to work. He alleged a disability onset date of Oc‐ tober 1, 2009 (later amended to January 1, 2011). The SSA ini‐ tially denied his application, and so he requested a hearing before an ALJ. A. ALJ’s Favorable Decision On August 13, 2014, based on the medical evidence sub‐ mitted and Schloesser’s testimony at the hearing, an ALJ found Schloesser to be disabled. In making this finding, the ALJ applied the five‐step sequential evaluation process out‐ lined in 20 C.F.R. § 404.1520(a)(4). The ALJ first determined that Schloesser had not engaged in substantial gainful activity since his alleged onset date of January 1, 2011, and, second, that Schloesser suffered from severe impairments of a history of cervical radiculopathy, degenerative disc disease, major joint dysfunction, history of left shoulder surgery, and obesity. Third, the ALJ found that Schloesser did not have an impair‐ ment that met or medically equaled any impairment in Ap‐ pendix 1 to 20 C.F.R. Part 404, Subpart P, and that Schloesser could perform only light work, stand and walk for four hours, sit for six hours, occasionally climb, stoop, kneel, crouch and 4 No. 16‐1862

crawl, frequently balance, not reach overhead with either ex‐ tremity, no more than frequently reach in all other directions with his non‐dominant left upper extremity, occasionally flex, extend and rotate his neck, he may need unscheduled breaks in addition to regular breaks, and he may be off‐task more than 10% of the workday. Fourth, the ALJ found that Schloes‐ ser was not capable of performing his past relevant work as a dry curer or construction worker based on this RFC. Finally, relying on testimony from a vocational expert, the ALJ deter‐ mined that given Schloesser’s age, education, work experi‐ ence, and RFC, there were no jobs that existed in significant numbers in the national economy that he could perform. Based on these findings, the ALJ found Schloesser disabled since January 1, 2011, which was prior to his September 30, 2011 date last insured, and so granted his application for dis‐ ability benefits. B. Appeals Council Reversed ALJ On September 9, 2014, the SSA’s Appeals Council sent no‐ tice to Schloesser that it intended to set aside the ALJ’s favor‐ able decision and issue a finding that Schloesser was not enti‐ tled to disability insurance benefits because he was not disa‐ bled before his date last insured. Schloesser filed a response on November 12, 2014. The Appeals Council determined that the new evidence he submitted was mostly dated after his in‐ sured status had expired and the evidence that did pertain to the period prior to his date last insured was duplicative or cu‐ mulative of the evidence already considered. Following the same five‐step process as the ALJ, the Appeals Council: (1) agreed with the ALJ’s findings at step one; (2) partially agreed with its findings at step two, but disagreed that Schloesser had severe impairments of cervical radiculopathy, major joint No. 16‐1862 5

dysfunction, and left shoulder surgery on or before his date last insured; (3) agreed with the ALJ’s finding at step three; (4) agreed with the ALJ’s finding that he could not work his prior job and partially agreed with the ALJ’s determination of Schloesser’s RFC, but disagreed that he could only occasion‐ ally flex, extend, and rotate his neck, may need to be off task for more than 10% and may need unscheduled breaks; and, importantly, (5) disagreed that there were no jobs that existed in significant numbers in the national economy that he could perform, based on its determination of his RFC. Therefore, it found that Schloesser was not disabled as of his date last in‐ sured. In finding that Schloesser did not have the severe impair‐ ment of cervical radiculopathy at step two, the Appeals Coun‐ cil explained that Schloesser was diagnosed with only mild, not severe, cervical degeneration with radicular symptomol‐ ogy in December 2011, which was over two months after his date last insured. It also noted that his symptoms improved with physical therapy, and his radiculopathy resolved in Feb‐ ruary 2012. He did not report neck pain again until February 2014.

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