Mills v. Richardson

464 F.2d 995
Court of Appeals for the Second Circuit·Decided July 14, 1972·No. No. 768, Docket 71-2172·Published·Cited by 21 cases

Opinion

FRIENDLY, Chief Judge:

The circumstances of this case, alleged in the complaint in this action in the District Court for the Northern District of New York and in an affidavit of an officer of the Social Security Administration submitted to the district court1 are as follows:

In 1959, as a result of the death of her husband and her custody of their three minor children, Merry Lou, Arlee, and Gloria, plaintiff Louella Mills became entitled to mother’s insurance benefits under 42 U.S.C. § 402(g)(1), and the children became entitled to child’s insurance benefits under 42 U.S.C. § 402(d), which were paid to the mother for their use, 42 U.S.C. § 405(j). Benefit payments for Merry Lou were terminated as a consequence of her marriage [997] on June 11, 1960, 42 U.S.C. § 402(d)(1)(D), and for Arlee on her becoming eighteen in December, 1963. In consequence of an automobile accident in 1964, Mrs. Mills, who had theretofore been gainfully employed, suffered a nearly total loss of vision and a crippling leg injury which rendered her unemployable and entitled her to disability insurance benefits under Title II of the Social Security Act, 42 U.S.C. § 423. Eligibility for these benefits has never been at issue. The payments for Gloria were technically terminated in April 1968 on her becoming 18, 42 U.S.C. § 402(d)(1)(E) and (g)(1). However, when the Administration determined that Gloria was a full-time student, 42 U.S.C. § 402(d)(1)(E), benefits were immediately reinstituted without any period of non-receipt. Later Mrs. Mills sought reconsideration of Gloria’s entitlement to survivor’s benefits, without regard to age or student status, on the basis of disability due to mental retardation. She was notified on August 6, 1969 of favorable reconsideration of Gloria’s claim, and on September 19 that this entitled her to mother’s payments for having a disabled adult child in her care. She was sent a check covering the latter item for the 16 months beginning April 1968, see 42 U.S.C. § 402(s) (1).

On July 11, 1969, Gloria married a man who also was mentally retarded and was consequently unemployable. Mrs. Mills’ complaint alleged that she then contacted the Ithaca, N. Y., branch of the Social Security Administration to inquire whether Gloria’s marriage would affect the payments being received and was informed that it would not so long as Gloria’s husband was not also receiving Social Security Benefits. Allegedly also Mrs. Mills continued to apply the payments in respect of Gloria for the latter’s use and benefit.

On February 15, 1971, Mrs. Mills received a letter from the Social Security Administration that she would receive no further disability payments until April 1973, since a large overpayment of other benefits had to be recouped. Although the complaint reads as if this notice were a bolt from the blue and appellant’s brief on appeal maintains that it was the “first indication to Mrs. Mills that her benefits were to be suspended,” the affidavit submitted on behalf of the defendant indicates that it was the end result of fruitless correspondence stretching over 18 months. Having learned of Gloria’s marriage, the Ithaca District Office wrote Mrs. Mills on August 26, 1969, that this would terminate both the child’s survivors benefits and mother’s insurance benefits unless Gloria had married someone who was receiving Social Security benefits, 42' U.S. C. § 402(d)(5), (g)(1); it asked that, if Gloria had not married someone entitled to such benefits, the August 3, 1969 check be returned and said that if it was not, the office might have to suspend Mrs. Mills’ benefits. Mrs. Mills answered that she had not received a check since June 3, and had been told that Gloria’s benefits were terminated. In fact, due partially to a lack of coordination with the New York payment center, the payments continued (save for Gloria’s July, 1969 payment) for a considerable time. In August, 1970, Mrs. Mills was notified that she had thus received an overpayment of $2,053.20, which she was required to refund unless she could bring herself within 42 U.S.C. § 404(b), which provides there shall be no adjustment of payments in the case of “any person who is without fault if such adjustment or recovery would defeat the purpose of this subchapter or would be against equity and good conscience” (emphasis supplied), and the regulations, 20 C.F.R. §§ 4Ó4.506-.515, which the Secretary had issued to implement this. Although Mrs. Mills did not respond, the Ithaca District Office sought to elicit facts that might support her retention of the payments ; the County Welfare Department informed it that Mrs. Mills had not turned over any social security benefit cheeks to Gloria (who apparently was receiving welfare payments) and that Mrs. Mills had told the Welfare Department she was receiving only $118.80 per [998] month from the Social Security Administration, this being her own disability payment. In the absence of any communication from Mrs. Mills showing entitlement to the relief provision of § 404(b), the Social Security Administration finally wrote the letter of February 11, 1971, availing itself of the rights to recover overpayment provided in § 404(a)(1).

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464 F.2d 995 (Second Circuit, 1972)