Philpott v. Commissioner of Social Security

District Court, W.D. Washington·Decided March 28, 2022·No. 3:21-cv-05741·Unknown

Opinion

WESTERN DISTRICT OF WASHINGTON CARLA P., Case No. 3:21-CV-05741-TLF Plaintiff, v. ORDER REVERSING AND REMANDING DEFENDANT’S COMMISSIONER OF SOCIAL SECURITY, DECISION TO DENY BENEFITS Defendant. Plaintiff has brought this matter for judicial review of defendant’s denial of her applications for supplemental security income (SSI) benefits. The parties have consented to have this matter heard by the undersigned Magistrate Judge. 28 U.S.C. § 636(c); Federal Rule of Civil Procedure 73; Local Rule MJR 13. I. ISSUES FOR REVIEW A. Whether Res Judicata Should Apply to the ALJ’s 2018 RFC Determination B. Whether the ALJ Properly Evaluated Medical Opinion Evidence II. BACKGROUND On July 29, 2014, plaintiff filed an application for Supplemental Security Income (“SSI”), alleging a disability onset date of March 1, 2012. Administrative Record (“AR”) 114. Plaintiff’s application was denied upon official review and upon reconsideration. Id. A hearing was held before Administrative Law Judge (“ALJ”) Rebecca L. Jones on July 18, 2019. AR 72–110. On February 12, 2018, ALJ Jones issued a decision finding that plaintiff was not disabled. AR 111-29. Plaintiff did not appeal the denial of her application, making the February 12, 2018 decision administratively final. On December 19, 2018, plaintiff protectively filed an application for SSI, alleging

a disability onset date of February 7, 2018. AR 13. Plaintiff’s application was denied upon official review and upon reconsideration. Id. A hearing was held before ALJ Lyle Olsen on December 14, 2020, during which plaintiff amended her alleged onset date to December 19, 2018. AR 35–71. On January 21, 2021, ALJ Olsen issued a decision finding that while plaintiff had rebutted the presumption of continuing nondisability from the 2018 decision, plaintiff was not disabled. AR 10–34. Plaintiff seeks judicial review of the ALJ’s January 21, 2021 decision. Dkt. 10. Pursuant to 42 U.S.C. § 405(g), this Court may set aside the Commissioner’s denial of Social Security benefits if the ALJ’s findings are based on legal error or not supported by substantial evidence in the record as a whole. Revels v. Berryhill, 874 F.3d 648, 654 (9th Cir. 2017). Substantial evidence is “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Biestek v. Berryhill, 139 S. Ct. 1148, 1154 (2019) (internal citations omitted). IV. DISCUSSION In this case, the ALJ found that plaintiff had the following severe impairments: degenerative disc disease, cervical spine, with stenosis at C4-5 and a history of cervical spine fusion at C5-6 and C6-7; degenerative disc disease, lumbar spine; status post right shoulder surgery; morbid obesity; asthma/COPD (severe when considered in combination with obesity); osteoarthritic changes in the left hip (severe when considered in combination with obesity); mild degenerative changes, left knee (severe when considered in combination with obesity); osteoarthritis of the right carpometacarpal joint; depressive disorder; and a social anxiety disorder. AR 16. Based on the limitations

stemming from these impairments, the ALJ found that plaintiff could perform a reduced range of light work. AR 28. Relying on vocational expert (“VE”) testimony, the ALJ found at step four that plaintiff could not perform her past relevant work, but could perform other light, unskilled jobs at step five of the sequential evaluation; therefore, the ALJ determined at step five that plaintiff was not disabled. AR 29. A. Whether Res Judicata Should Apply to the ALJ’s 2018 RFC Determination In the ALJ’s February 2018 decision, the prior ALJ assessed that plaintiff could reach overhead bilaterally no more than occasionally and engage in superficial interaction with co-workers no more than occasionally. AR 125. In the current decision, the ALJ assessed that plaintiff can frequently reach overhead with her bilateral upper

extremities and interact frequently with her supervisors and co-workers. AR 20-21. Plaintiff argues that the ALJ failed to properly “apply res judicata” to the residual functional capacity (RFC) findings from the February 2018 decision, contrary to Chavez v. Bowen, 844 F.2d 691, 693 (9th Cir. 1988) and Social Security Acquiescence Ruling (SSAR) 97-4(9) (Dec. 3, 1997). Dkt. 10, pp. 3-5. “The principles of res judicata apply to administrative decisions, although the doctrine is applied less rigidly to administrative proceedings than to judicial proceedings. The claimant, in order to overcome the presumption of continuing nondisability arising from the first administrative law judge's findings of nondisability, must prove “changed

circumstances,” indicating a greater disability.” Chavez, 844 F.2d at 693 (internal citation omitted). See also Green v. Heckler, 803 F.2d 528, 531 (9th Cir. 1986) (changed circumstances include a showing impairments became more severe since the date of the earlier decision).

If the claimant has rebutted the presumption, “[t]he first administrative law judge's findings concerning the claimant's residual functional capacity, education, and work experience are entitled to some res judicata consideration in subsequent proceedings,” unless there is new and material evidence related to those findings or a change in law or regulations. See Chavez, 844 F.2d at 693; SSAR 97-4(9). Both parties agree that plaintiff has proven her “changed circumstances,” rebutting the presumption of continuing nondisability with new evidence of her additional severe impairments. Dkt. 10, pp. 3; AR 14. The question therefore is whether the prior ALJ’s findings about plaintiff’s ability to reach overhead and interact with others are “entitled to some res judicata consideration” by the current ALJ. Plaintiff contends that,

because she successfully rebutted the presumption of continuing nondisability, Chavez requires the current ALJ to adopt the prior ALJ’s RFC findings. Dkt. 10, pp. 3–5 . But this is not always the case. “[T]he Chavez presumption does not prohibit a subsequent ALJ from considering new medical information and making an updated RFC determination.” Alekseyevets v. Colvin, 524 Fed. Appx. 341, 344 (9th Cir. 2013). Under Chavez, the current ALJ is allowed to adopt the prior ALJ’s findings -- unless there is new evidence, not already considered by the prior ALJ, related to those findings that could change their evaluation. 844 F.2d at 694.

Here, the current ALJ found that the new evidence would “support the assessment of a different residual functional capacity than the finding in the prior ALJ decision.” AR 14. The new evidence consisted of treatment notes about plaintiff’s upper extremities, treatment records from plaintiff’s therapy sessions, and plaintiff’s testimony

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