McCarthy v. Bowen

668 F. Supp. 1439, 1987 U.S. Dist. LEXIS 8273
CourtDistrict Court, D. Oregon
DecidedAugust 14, 1987
DocketCiv. 86-1485-PA
StatusPublished
Cited by2 cases

This text of 668 F. Supp. 1439 (McCarthy v. Bowen) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarthy v. Bowen, 668 F. Supp. 1439, 1987 U.S. Dist. LEXIS 8273 (D. Or. 1987).

Opinion

OPINION

PANNER, Chief Judge.

Plaintiff appeals the decision of the Secretary denying waiver of alleged overpayment of $6,615.00 in benefits paid by the Social Security Administration (Administration) under the Social Security Act. The issue is whether the overpayment exists and, if so, whether repayment by the plaintiff would defeat the purposes of Title II or be against equity and good conscience. I affirm the decision of the Secretary. In addition, plaintiff has moved for a restraining order and injunctive relief to stop recoupment and harassment. I deny the motion.

ADMINISTRATIVE PROCEEDINGS AND FACTUAL BACKGROUND

Plaintiff’s husband was awarded Social Security disability benefits with an onset date of September 22, 1981. Plaintiff’s husband requested, and was granted, a change in the onset date from September 22 to February 25, 1981, which resulted in additional benefits. Plaintiff filed an application for wife’s benefits on October 1, 1981. She was determined to be eligible effective August 1981. In addition, the McCarthys’ four children qualified at various times for benefits.

On May 15, 1983, plaintiff and plaintiff’s husband were sent a notice of an award of $3,319.73 for past due benefits. Plaintiff’s husband died on May 27, 1983. Plaintiff thereafter applied for and received mother’s insurance benefits. Her application estimated her 1983 earnings to be approximately $12,000. She actually earned $13,-214.75. She also estimated her 1984 earnings at $14,000.00. She actually earned *1441 $17,470.00. These underestimates were the major contributing cause of overpayment by the Administration.

The Administration withheld a 25% fee in the amount of $1,542.42 to pay for the McCarthys’ lawyer. The lawyer waived entitlement to any fee, however. The amount was refunded to the family.

Between 1982 and 1984, three of the four children ceased at various times to be entitled to benefits. In December 1983, plaintiff did not receive payment for one child because the child was erroneously believed to have died. The missed payment was corrected the following month.

In September 1984 plaintiff was first notified that she had been overpaid in the amount of $3,135.00 because of her excess earnings in 1983. Plaintiff has not received benefits since that time. One child continued to receive payments. Waiver of repayment was denied. Plaintiff requested reconsideration. Prior to reconsideration, plaintiff was informed of additional over-payments of $3,836.00 due to excess earnings in 1984. Both of these rulings were considered at the time of reconsideration. This review resulted in changes in both of the alleged overpayment amounts. It was determined that overpayment in 1983 was $3,827.97, and overpayment in 1984 was $3,880.00, for a total of $7,707.97. This figure was reduced by $1,092.97, which represented underpayment from an earlier period for the children. As provided by 20 C.F.R. §§ 404.502-.503, overpayments and underpayments can be reconciled from other individuals entitled to benefits on the same earnings record. The total overpayment as calculated by the Administration was $6,615.00. The Administration denied waiver of payment because plaintiff was found to be “not without fault” for failure to report her earnings accurately. This decision was upheld by an Administrative Law Judge (ALJ).

The Appeals Council granted plaintiff’s request to review. The Council found that plaintiff was without fault because she had provided timely estimates of her yearly income. Nevertheless, the Council denied waiver of repayment, deciding that under plaintiff’s circumstances it would not defeat the purpose of Title II, nor be against equity and good conscience, to require repayment of the $6,615.00. This is the final decision of the Secretary for purposes of review.

STANDARD OF REVIEW

1. The Motion For A Restraining Order.

A party seeking a restraining order must make a persuasive showing of irreparable harm and likelihood of prevailing on the merits. New Motor Vehicle Bd. of California v. Fox, 434 U.S. 1345, 98 S.Ct. 359, 54 L.Ed.2d 439 (1977). The equitable criteria for granting preliminary relief consist of a showing of either a combination of probable success and possible irreparable injury, or sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly toward the party seeking relief. Aleknagik Natives Ltd. v. Andrus, 648 F.2d 496, 502 (9th Cir.1980).

2. The Decision Of The Secretary.

The decision of the Secretary must be supported by substantial evidence. 42 U.S.C. § 405(g) (1986); Universal Camera Corp. v. National Labor Relations Bd., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951). Substantial evidence is such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Richardson v. Perales, 402 U.S. 389, 401, 91 S.Ct. 1420, 1427, 28 L.Ed.2d 842 (1971). It is more than a scintilla but less than a preponderance. Sorenson v. Weinberger, 514 F.2d 1112, 1119 n. 10 (9th Cir.1975). The court may not affirm the AU’s decision “simply by isolating a specific quantum of supporting evidence,” but must also consider evidence that detracts from the AU’s conclusion. Ray v. Bowen, 813 F.2d 914 (9th Cir.1987).

The Secretary is directed to recover overpayments of Social Security benefits. 42 U.S.C. § 1383(b)(1) (1983). The statute does not designate which party bears the burden of proof of the fact of overpayment. However, both the Third and *1442 Eighth Circuits have held that when the government seeks to recover an alleged overpayment, it must demonstrate that the claimant was not entitled to the funds. Cannuni On Behalf of Cannuni v. Schweiker, 740 F.2d 260, 263 (3d Cir.1984); United States v. Smith, 482 F.2d 1120, 1124 (8th Cir.1973). Recovery of the overpayment may be waived:

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Cite This Page — Counsel Stack

Bluebook (online)
668 F. Supp. 1439, 1987 U.S. Dist. LEXIS 8273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarthy-v-bowen-ord-1987.