Michael Kelly v. Nancy Berryhill

Court of Appeals for the Ninth Circuit·Decided May 1, 2018·No. 16-17173·Unpublished

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS MAY 1 2018 MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

MICHAEL TROY KELLY, No. 16-17173 Plaintiff-Appellant, D.C. No. 2:15-cv-00455-MHB

v.

MEMORANDUM*

NANCY A. BERRYHILL, Acting Commissioner Social Security,

Defendant-Appellee.

Appeal from the United States District Court for the District of Arizona Michelle H. Burns, Magistrate Judge, Presiding

Argued and Submitted March 16, 2018 San Francisco, California

Before: PAEZ and IKUTA, Circuit Judges, and ADELMAN,** District Judge.

Michael Troy Kelly appeals the district court’s judgment affirming the Commissioner of Social Security’s denial of his application for Disability Insurance Benefits under Title II of the Social Security Act, 42 U.S.C. § 1381 et

*

This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3.

**

The Honorable Lynn S. Adelman, United States District Judge for the Eastern District of Wisconsin, sitting by designation.

seq. We review de novo the district court’s decision affirming the denial of benefits, and may set aside the decision of the administrative law judge (ALJ) where that decision is based on legal error or where the findings of fact are not supported by substantial evidence in the record taken as a whole. Tackett v. Apfel, 180 F.3d 1094, 1097 (9th Cir. 1999). We have jurisdiction pursuant to 28 U.S.C. § 1291, and we reverse and remand for further proceedings. 1. We first hold that the ALJ erred in rejecting the three opinions provided by Kelly’s treating physician, Dr. Dale Ratcliffe. Where, as here, the treating doctor's opinions are contradicted by another doctor, the ALJ may not reject the opinions without providing “specific and legitimate reasons” supported by substantial evidence in the record; the same is required for rejecting the treating doctor’s “ultimate conclusions” as to disability. Lester v. Chater, 81 F.3d 821, 830 (9th Cir. 1995).

a. The ALJ rejected Dr. Ratcliffe’s May 2012 and April 2013 opinions by stating they were “not supported by the objective medical evidence,” elaborating that 1) Kelly’s “pain responded well to medications and other treatments”; 2) “objective medical imaging did not indicate disabling impairment”; and 3) “[n]o significant neurologic deficits are documented by any treating or consulting doctor.” As to the ALJ’s first reason, “[w]hen viewed in its entirety,” Orn v. Astrue, 495 F.3d 625, 634 (9th Cir. 2007), the record thoroughly contradicts the

ALJ’s assertion that Kelly’s pain “responded well to medications and other treatment.” Where an ALJ’s reasoning is belied by the record, it cannot constitute a “specific and legitimate” reason for rejecting the controverted opinion of a treating physician. Id. at 634–35. Indeed, the record demonstrates the quite the opposite: that Kelly—despite being treated with high doses of opioids, muscle relaxers, epidural steroid injections, lumbar intrathecal opioid injections, and a thoracic spinal cord stimulator, among other treatments—experienced pain that was “minimally controlled;” that high doses of opioid medications at best provided mild, occasionally moderate, improvement; and that his treating physician considered his pain “refractory to treatment.”1 The ALJ’s assertion that “objective medical imaging did not indicate disabling impairment” was error in several ways. First, it inappropriately substituted the ALJ’s layperson opinion for that of Kelly’s treating physician

1 Although the dissent cites to several treatment records it views as supporting the ALJ’s assertion that Kelly’s pain was under control, the dissent errs in several ways. First, the dissent cites to evidence not relied upon by the ALJ, a practice we are forbidden from doing in reviewing an agency’s decision. See, e.g., Burrell v. Colvin, 775 F.3d 1133, 1138 (9th Cir. 2014). Second, the dissent—much like the ALJ—engages in impermissible cherry-picking of the record, rather than properly viewing the record in its entirety. See Ghanim v. Colvin, 763 F.3d 1154, 1164 (9th Cir. 2014); Trevizo v. Berryhill, 871 F.3d 664, 679 (9th Cir. 2017). Finally, the dissent’s citation to Dr. Chettri’s 2013 treatment note is somewhat curious, given that the same treatment note discusses how Kelly was suffering from “constant” pain in his right hip that “radiate[d] to the right leg” with “associated pain at the lumbar area”—pain severe enough that it caused him to have trouble walking.

without any support from other medical opinions in the record. See Day v. Weinberger, 522 F.2d 1154, 1156 (9th Cir. 1975) (recognizing that an ALJ is “not qualified as a medical expert”); Trevizo v. Berryhill, 871 F.3d 664, 676–77 (9th Cir. 2017); cf. Taylor v. Comm'r of Soc. Sec. Admin., 659 F.3d 1228, 1235 (9th Cir. 2011) (holding that an ALJ may not substitute his layperson personal observations of claimant for the opinions of claimant’s treating physicians). The ALJ additionally “improperly cherry-picked” several normal findings from the MRI— including “no acute lumbar spinal fracture” and “no moderate or severe canal stenosis”—while ignoring a number of abnormal findings. See Ghanim v. Colvin, 763 F.3d 1154, 1164 (9th Cir. 2014). This selective cherry-picking of the MRI results was also error because Dr. Ratcliffe’s opinion as to Kelly’s limitations was not based on Kelly suffering from either “acute lumbar spinal fracture” or “moderate or severe canal stenosis.” Where an ALJ’s reasoning is “not responsive” to the basis of a physician’s opinion, it fails the “specific and legitimate” standard. Orn, 495 F.3d at 634-35. Moreover, Dr. Ratcliffe explicitly opined that his opinions as to Kelly’s limitations were based on objective clinical and diagnostic findings.2 Here, such objective findings include not only the MRI

2 The dissent’s reliance on Dr. Ratcliffe’s statement that Kelly’s pain was “out of proportion to what is seen objectively on MRI, CT” and his accompanying notes that Kelly’s pain may be magnified by other issues (such as depression or opioid- induced hyperalgesia) is not persuasive. Not only did the ALJ not mention these notes—thus making them impermissible grounds on which to affirm the ALJ—but

results, but also the many positive straight-leg tests, positive Braggard maneuvers, diminished lumbar range of motion, and other clinical findings. By isolating a few normal findings from the MRI results while ignoring the numerous abnormal MRI findings as well as all of the other abnormal clinical findings in the record, the ALJ erred. See Ghanim, 763 F.3d at 1164; Holohan v. Massanari, 246 F.3d 1195, 1207 (9th Cir. 2001).

Further, the ALJ failed to discuss the more recent lumbar MRI in the record, from May 2012. This MRI—which predated all of Dr. Ratcliffe’s opinions, was ordered by Dr. Ratcliffe, and was undoubtedly taken into account by Dr. Ratcliffe in his opinions—also showed abnormal findings.3 While the ALJ need not

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