Olson v. Commissioner of Social Security

District Court, W.D. Washington·Decided December 18, 2024·No. 3:24-cv-05514·Unknown

Opinion

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5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 MICHAEL L. O., 8 Plaintiff, CASE NO. C24-5514-BAT 9 v. ORDER REVERSING AND 10 REMANDING FOR FURTHER COMMISSIONER OF SOCIAL SECURITY, ADMINISTRATIVE PROCEEDINGS 11 Defendant. 12

13 Plaintiff appeals the denial of his application for Disability Insurance Benefits. He 14 contends the ALJ erred by rejecting all the medical opinions, plaintiff’s testimony, and his wife’s 15 testimony and then concluding at step two of the sequential evaluation that none of his 16 impairments are severe. Dkt. 9. The Court finds the ALJ did not support the decision with 17 substantial evidence and harmfully misapplied the law. The Court REVERSES the 18 Commissioner’s final decision and REMANDS the matter for further administrative proceedings 19 before a different ALJ under sentence four of 42 U.S.C. § 405(g). 20 BACKGROUND 21 Plaintiff is currently 50 years old, has a master’s degree, had a career in the Air Force 22 before being honorably discharged, was declared totally and permanently disabled by the 23 Department of Veterans Affairs related 100% to his service as of June 2020, and worked as a 1 survival equipment repairer and a social services aide counseling service members on domestic 2 violence and sexual assault. Tr. 57, 60–63, 105, 338, 861. In April 2022, he applied for benefits, 3 alleging disability as of March 19, 2021. Tr. 206. His application was denied initially and on 4 reconsideration. Tr. 94–117. The ALJ conducted a telephonic hearing in September 2023 and

5 issued a decision in March 2024. Tr. 22–92. The ALJ determined plaintiff meets the insured 6 status requirements through December 31, 2026, and has not engaged in substantial gainful 7 activity since the alleged onset date of March 19, 2021. Tr. 27–28. The ALJ found plaintiff has a 8 number of medically determinable impairments: status post lumbar spine surgery; lumbar 9 degenerative disc disease; degenerative joint disease; kyphosis; migraines; posttraumatic stress 10 disorder (“PTSD”); major depressive disorder (“MDD”); lipomas; asthma; insomnia; obstructive 11 sleep apnea (“OSA”); allergic rhinitis; gastroesophageal reflux disease (“GERD”); erectile 12 dysfunction; hypertension; vitamin D deficiency; left shoulder pain; and correctable vision loss. 13 The ALJ determined at step two of the sequential evaluation, however, that none of plaintiff’s 14 medically impairments qualified, alone or in combination, as “severe.” The ALJ determined

15 these medically determinable impairments could not reasonably be expected to produce the 16 alleged symptoms, plaintiff’s symptom testimony is not consistent with the record, and plaintiff 17 has no mental limitations in any functional area. Tr. 29, 33–34. The ALJ therefore found plaintiff 18 was not disabled throughout the relevant period. Tr. 37. As the Appeals Council declined review, 19 the ALJ’s decision is the Commissioner’s final decision. Tr. 8–14. 20 DISCUSSION 21 The Court will reverse the ALJ’s decision only if it is not supported by substantial 22 evidence in the record as a whole or if the ALJ applied the wrong legal standard. Molina v. 23 Astrue, 674 F.3d 1104, 1110 (9th Cir. 2012), superseded on other grounds by 20 C.F.R. 1 § 404.1502(a). The ALJ’s decision may not be reversed on account of an error that is harmless. 2 Id. at 1111. Where the evidence is susceptible to more than one rational interpretation, the Court 3 must uphold the Commissioner’s interpretation. Thomas v. Barnhart, 278 F.3d 947, 954 (9th Cir. 4 2002).

5 Plaintiff has demonstrated the ALJ not only failed to support his decision with substantial 6 evidence but also harmfully misapplied the law. Instead of applying the step two inquiry as a de 7 minimis screening device to dispose of groundless claims, the ALJ rejected undisputed medical 8 and testimonial evidence about plaintiff’s medical impairments in favor of an unreasonable 9 interpretation of the record. 10 At step two of the five-step sequential inquiry, the Commissioner determines whether the 11 claimant has a severe impairment or combination of impairments. 20 C.F.R. § 404.1520(a)(4)(ii). 12 An impairment is severe if it “significantly limits” an individual’s “ability to do basic work 13 activities.” 20 C.F.R. §404.1520(c). In Smolen, the Ninth Circuit explained the scope of a step 14 two inquiry:

15 Important here, at the step two inquiry, is the requirement that the ALJ must consider the combined effect of all of the claimant's 16 impairments on her ability to function, without regard to whether each alone was sufficiently severe. See 42 U.S.C. § 423(d)(2)(B) 17 (Supp. III 1991); Social Security Ruling 868 (“SSR 86–8”). See also SSR 85–28. Also, he is required to consider the claimant's 18 subjective symptoms, such as pain or fatigue, in determining severity. SSR 88–13; 20 C.F.R. § 404.1529(d)(2) (effective 19 11/14/91) (adopting SSR 88–13). Finally, the step-two inquiry is a de minimis screening device to dispose of groundless claims. 20 Bowen v. Yuckert, 482 U.S. at 153–54, 107 S.Ct. at 2297–98. An impairment or combination of impairments can be found “not 21 severe” only if the evidence establishes a slight abnormality that has “no more than a minimal effect on an individual[’]s ability to 22 work.” See SSR 85–28; Yuckert v. Bowen, 841 F.2d 303, 306 (9th Cir.1988) (adopting SSR 85–28). 23 1 Smolen v. Chater, 80 F.3d 1273, 1290 (9th Cir. 1996). Thus, “an ALJ may find that a claimant 2 lacks a medically severe impairment or combination of impairments only when his conclusion is 3 ‘clearly established by medical evidence.’” Webb v. Barhart, 433 F.3d 683, 687 (9th Cir. 2005) 4 (quoting SSR 85-28).

5 In this case, although the ALJ acknowledged plaintiff suffered from a number of 6 medically determinable impairments, he concluded that none of those impairments, considered 7 singly or in combination, resulted in an impairment on basic work activities, and plaintiff’s 8 mental impairments resulted in no limitations to the four broad functional areas of understanding, 9 remembering, or applying information; interacting with others; concentrating, persisting, or 10 maintaining pace; or adapting or managing oneself. Tr. 28–37. In doing so, the ALJ rejected 11 substantial and undisputed evidence of pain and physical and mental symptoms related to spine 12 surgery, persistent migraines, PTSD, and MDD. Having improperly rejected the consistency of 13 the testimony of plaintiff and his wife regarding his pain and difficulties in focusing, 14 concentrating, and remembering with the medical diagnoses, the ALJ also failed to consider his

15 subjective symptoms in making the severity determination.

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