Philley v. Cohen

293 F. Supp. 1068, 1968 U.S. Dist. LEXIS 11872
CourtDistrict Court, N.D. Mississippi
DecidedDecember 18, 1968
DocketNo. GC 682-K
StatusPublished
Cited by3 cases

This text of 293 F. Supp. 1068 (Philley v. Cohen) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Philley v. Cohen, 293 F. Supp. 1068, 1968 U.S. Dist. LEXIS 11872 (N.D. Miss. 1968).

Opinion

MEMORANDUM OPINION

READY, Chief Judge.

This is an action brought pursuant to § 205(g) of the Social Security Act, as amended (42 U.S.C. § 405(g)), to obtain judicial review of a decision of the Secretary of Health, Education, and Welfare, and is presently before the court on motions for summary judgment filed by both parties and on motion of defendant to strike certain appendices to plaintiff’s motion. The principal issue is whether or not there is “substantial evidence” in the record to support the finding of the Secretary that the plaintiff received an over-payment of old-age benefits in the amount of $4,472, recovery of which could not be waived under the provisions of § 204(b) of the Social Security Act (42 U.S.C. § 404(b)).1 An additional question is whether this court may consider affidavits appended to the motion for summary judgment by plaintiff which were not before the Hearing Examiner.

The facts are set forth briefly as follows: Plaintiff filed an application for old-age insurance benefits on June 28, 1960, and, accordingly, was awarded monthly benefits of $86 effective July of 1960, when he became 65 years of age. He was notified, however, on July 16, 1960, that no benefits would actually be paid at that time since he was expected to earn more than $1,200 during that taxable year. Plaintiff completed and returned the “Request for Benefits Payable Form” enclosed, stating that he did not [1070]*1070expect to earn more than $1,200 during that year, and on the basis of his request, payments were made commencing July 1960 and continuing through December 1964.

On March 23, 1965, plaintiff’s wife filed an application on her own earnings record for old-age benefits, alleging that she had operated the family farm since 1960, thereby establishing the required quarters of coverage under the Social Security Act. The Administration determined initially and later, upon reconsideration, that she was not the operator of the farm, that the earnings reported by her were attributable to plaintiff, and that he had, therefore, received overpayments in the amount of $4,472 during the period from July 1960 to December 1964. Pursuant to plaintiff’s request, a hearing was held on March 24, 1966, at Greenwood, Mississippi, at which time he was represented by counsel and had as his witnesses his wife, his son, and his accountant. The Hearing Examiner, by decision dated July 7, 1966, found that plaintiff had not relinquished his farming operations to his wife, and that during each of the years 1960, 1961, 1962, 1963 and 1964, he rendered substantial services as the farm operator with earnings in excess of the allowable amount. Plaintiff obtained review of the decision by the Appeals Council, and by order dated January 18, 1967, the Appeals Council remanded the case with instructions that plaintiff’s wife be made a party and that the Examiner considered whether the overpayment should be waived under § 204(b) of the Social Security Act. At the hearing on remand, additional testimony — that of an insurance agent and plaintiff’s daughter— was introduced to corroborate the earlier testimony that in July of 1960 plaintiff relinquished all control of the family farm to Mrs. Philley. The Hearing Examiner found, however, that deductions had been properly imposed because of excess self-employment earnings and that recovery of the overpayment could not be waived because to do so would not “defeat the purpose of the Social Security Act or be against equity or good conscience.” The Hearing Examiner’s decision of April 13, 1967, became the “final decision” of the Secretary on June 21, 1967, when the Appeals Council denied plaintiff’s request for review.

The jurisdiction of this Court is confined to a limited review of the Secretary’s decision and the record made in the administrative hearing process. 42 U.S.C. § 405(g) provides in pertinent part, as follows:

“ * * * The court shall have power to enter upon the pleadings and transcript of the record, a judgment affirming, modifying or reversing the decision of the Secretary, with or without remanding the cause for a rehearing. The findings of the Secretary as to any fact, if supported by substantial evidence, shall be conclusive * *

We may consider only the record developed before the defendant’s department, and, therefore, defendant’s motion to strike the affidavits attached to plaintiff's motion for summary judgment must be sustained. Fels v. Ribicoff, 30 F.R.D. 141 (U.S.D.C.S.D. New York 1962). Congress intended that the district courts should have only the power to review the record as compiled below and not to proceed de novo. The authorization in Rule 56 F.R.Civ.P. for the use of affidavits on a motion for summary judgment is for the purpose of establishing whether there is or is not a triable issue of fact, and is inapplicable in a case such as that sub judice where the court’s power is limited to a determination whether the Secretary’s findings and decision are supported by substantial evidence. Sage v. Celebrezze, 246 F.Supp. 285 (U.S.D.C.W.D.Va.1965).

We hold further on the basis of our examination of the record developed by the Secretary that there was no “substantial evidence” to support the finding that the plaintiff had not relinquished his farm to his wife in July 1960. On the contrary, the evidence overwhelmingly shows that, as of that date, plaintiff com[1071]*1071pletely relinquished control of the farm to his wife, and rendered no substantial services in connection therewith subsequently thereto.

Plaintiff and his wife owned as tenants in common 80 acres of land in Leflore County, Mississippi, and prior to July 1960 the plaintiff and his son, James W. Philley, farmed this tract, along with certain acreage rented from third parties. Plaintiff’s wife did not participate in the farming operation until about July, when she and her son began their operations. Plaintiff testified that after turning the farm over to his wife, he would occasionally drive over the farm but was not active in its management, leaving that to his wife and son. He stated that his retirement was the result of bad health. He claimed to have had no authority to direct or supervise any of the personnel, and that the income derived from the .farming operations belonged to his wife. He further testified that he took no part in obtaining crop production loans, that all crops were sold by his wife and sale proceeds handled by her, and that she paid all bills incurred for the farm. He claimed not to have discussed farming operations with his wife after his retirement. Plaintiff's wife testified that she was familiar with farming, having lived on a farm all of her life, and that when she assumed her husband’s duties in the farming operation she continued, as did the plaintiff, to operate on an informal partnership basis with the son, retaining equipment, workers and insurance in common. The plaintiff’s son corroborated the testimony of Mr. and Mrs. Philley. The family accountant testified that it was to Mrs. Philley that he looked for instructions after July 1960. On July 6, 1960, plaintiff’s son and Mrs. Philley became joint owners of the farm’s general liability policy.

On July 19, 1960, Mrs.

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293 F. Supp. 1068, 1968 U.S. Dist. LEXIS 11872, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philley-v-cohen-msnd-1968.