Patrick R. v. Frank Bisignano, Commissioner of Social Security

District Court, E.D. Washington·Decided July 6, 2026·No. 1:26-cv-03017·Unknown

Opinion

1 Jul 06, 2026

2 SEAN F. MCAVOY, CLERK

4 5 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WASHINGTON 6

7 PATRICK R.,1 No. 1:26-cv-3017-EFS

8 Plaintiff, ORDER REVERSING THE 9 v. ALJ’S DENIAL OF BENEFITS, AND REMANDING FOR 10 FRANK BISIGNANO, MORE PROCEEDINGS Commissioner of Social Security, 11 Defendant. 12

13 Plaintiff Patrick R. claims he is unable to work due to severe 14 mental impairments and asks the Court to reverse the Administrative 15 Law Judge’s (ALJ) denial of Title 2 and Title 16 benefits. Plaintiff 16 17

18 1 For privacy reasons, Plaintiff is referred to by first name and last 19 initial or as “Plaintiff.” See LCivR 5.2(c). 20 1 primarily contends that the ALJ erred in finding that he was not

2 disabled in the absence of substance use, asserting that his co- 3 occurring mental disorders are disabling even when he does not use 4 drugs. As is explained below, substantial evidence does not support the

5 ALJ’s finding that Plaintiff’s substance use was material to the 6 disability determination. This matter is remanded for further 7 proceedings.

8 I. Background 9 Plaintiff filed his Title 2 and 16 applications for benefits in May 10 2023, alleging disability beginning July 1, 2018.2

11 Plaintiff appeared for a hearing before ALJ Matthew Dawson in 12 August 2025, at which Plaintiff testified to the following.3 He worked 13 as a mechanic until 2018 when he was hospitalized for his mental

14 health.4 He worked as a mechanic again for approximately six months 15 16

17 2 Administrative Record (AR) 355–80. 18 3 See AR 45–69. 19 4 AR 52–53. 20 1 in 2019.5 He was incarcerated from 2019 to 2023.6 He had been

2 homeless since his release from prison in 2023.7 At the time of the 3 hearing, he was living in a behavioral health center and had been 4 staying there for a month because of mental health issues.8 He suffered

5 from drug addiction and had only a few periods of sobriety outside of 6 prison or treatment centers.9 He suffered from bipolar disorder and, 7 even when he was sober, experienced periods of mania followed by

8 crashes and depressive states.10 9 The ALJ issued a decision finding Plaintiff not disabled.11 The 10 ALJ found that including Plaintiff’s substance use, the severity of his

12 5 AR 51–52. 13 6 AR 55–56. 14 7 AR 55. 15 8 AR 54. 16 9 AR 56–57. 17 10 AR 57–58. 18 11 AR 17–37. Per 20 C.F.R. §§ 404.1520(a)–(g), 416.920(a)–(g), a five- 19 step evaluation determines whether a claimant is disabled. If there is 20 1 mental impairments met listing 12.03 for schizophrenia spectrum and

2 other psychotic disorders, but if he stopped the substance use, he could 3 perform substantial gainful activity.12 The substance use disorder, 4 therefore, was a contributing factor material to the determination of

5 disability.13 6 The ALJ found Plaintiff’s alleged symptoms were inconsistent 7 with the medical evidence and other evidence.14 As to the medical

8 opinions, the ALJ found: 9 • the prior administrative medical findings of Richard B., PhD, 10 partially persuasive.

11 12

13 medical evidence of drug or alcohol addiction, the ALJ must then 14 determine whether drug or alcohol use is a material factor contributing 15 to the disability. 42 U.S.C. § 423(d)(2)(C); 20 C.F.R. §§ 404.1535, 16 416.935; Sousa v. Callahan, 143 F.3d 1240, 1245 (9th Cir. 1998). 17 12 AR 22, 35. 18 13 AR 36. 19 14 AR 30. 20 1 • the prior administrative medical findings of John G., PhD,

2 unpersuasive. 3 • the prior administrative medical findings of Stephen Gerrish, 4 MD, and Ian C., MD, overall persuasive.

5 • the examining opinions of Justin Stamschror, MD, and Linda 6 Wolcott, PhD, persuasive only to the extent they endorsed 7 disabling mental limitations when using substances.

8 • the treating opinions of Dennen Frazier, PA, and Beverly 9 Khodra, MD, unpersuasive.15 10 As to the sequential disability analysis, the ALJ found:

11 • Plaintiff met the insured status requirements through June 12 30, 2020. 13 • Step one: Plaintiff had not engaged in substantial gainful

14 activity since July 1, 2018, the alleged onset date. 15 • Step two: Plaintiff had the following medically determinable 16 severe impairments: schizoaffective disorder, bipolar type;

17 PTSD; panic disorder; anti-social personality disorder; 18

19 15 AR 32–34. 20 1 substance use disorders (cannabis, stimulants); and

2 degenerative disc disease. 3 • Step three: including Plaintiff’s substance use, the severity of 4 his impairments met listing 12.03, but if he stopped the

5 substance use, he did not have an impairment or combination 6 of impairments that met or medically equaled the severity of 7 one of the listed impairments.

8 • RFC: if Plaintiff stopped the substance use, he had the RFC to: 9 perform light work as defined in 20 CFR 404.1567(b) and 416.967(b) except he can frequently stoop, kneel, crouch, 10 and crawl. He can never climb ladders, ropes, or scaffolds. He can tolerate frequent exposure to extreme 11 cold but no exposure to moving mechanical parts and high exposed places. He can understand, remember, and 12 carry out simple instructions. He can tolerate occasional changes in a routine work setting. He can make simple 13 work-related decisions and can tolerate occasional interactions with supervisors, coworkers, and the general 14 public.

15 • Step four: Plaintiff did not have past relevant work. 16 • Step five: if Plaintiff stopped the substance use, considering his 17 RFC, age, education, and work history, Plaintiff could perform 18 19 20 1 work that existed in significant numbers in the national

2 economy, such as router, marker, and collator/operator.16 3 Plaintiff timely requested review of the ALJ’s decision by the 4 Appeals Council, which denied review.17 Plaintiff now appeals to

5 district court.18 6 II. Standard of Review 7 The ALJ’s decision is reversed “only if it is not supported by

8 substantial evidence or is based on legal error”19 and such error 9 impacted the nondisability determination.20 Substantial evidence is 10

11 16 AR 17, 20–36. See AR 62–63 (Vocational expert testified that a 12 hypothetical individual with the ALJ’s crafted RFC except for more 13 manipulative restrictions could perform those three jobs.). 14 17 AR 1–3. 15 18 ECF No. 1. 16 19 Hill v. Astrue, 698 F.3d 1153, 1158 (9th Cir. 2012). See 42 U.S.C. § 17 405(g). 18 20 Molina v. Astrue, 674 F.3d 1104, 1115 (9th Cir. 2012), superseded on 19 other grounds by 20 C.F.R. § 416.920(a) (recognizing that the court may 20 1 “more than a mere scintilla but less than a preponderance; it is such

2 relevant evidence as a reasonable mind might accept as adequate to 3 support a conclusion.”21 4 III. Analysis

5 Plaintiff argues the ALJ erred by finding that substance use was 6 material to the disability determination, improperly rejecting his 7 symptom testimony, and improperly evaluating the medical opinions.

8 9

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Patrick R. v. Frank Bisignano, Commissioner of Social Security, (E.D. Wash. 2026).

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