Richard ANDREWS, Plaintiff-Appellant, v. Otis R. BOWEN, M.D., Secretary of Health and Human Services, Defendant-Appellee

848 F.2d 98, 1988 U.S. App. LEXIS 7917, 1988 WL 59007
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 10, 1988
Docket87-1963
StatusPublished
Cited by5 cases

This text of 848 F.2d 98 (Richard ANDREWS, Plaintiff-Appellant, v. Otis R. BOWEN, M.D., Secretary of Health and Human Services, Defendant-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard ANDREWS, Plaintiff-Appellant, v. Otis R. BOWEN, M.D., Secretary of Health and Human Services, Defendant-Appellee, 848 F.2d 98, 1988 U.S. App. LEXIS 7917, 1988 WL 59007 (7th Cir. 1988).

Opinion

COFFEY, Circuit Judge.

Andrews' disability benefits were withdrawn ás a result of an administrative decision that his condition had sufficiently improved. His appeal to the district court resulted in a remand for consideration of new evidence. Upon reconsideration, the department reversed itself and found that Andrews had suffered a disability during all relevant times. Andrews then moved the district court for costs and fees under the Equal Access to Justice Act, and Rule 11 sanctions. The district court found that the government’s position was substantially justified. We affirm.

At the age of 35, Richard Andrews became disabled, suffering from a mental illness classified as schizophrenia. Five years later he applied for and obtained disability benefits. In 1981, ten years after the onset of his mental illness, Andrews was reexamined pursuant to Congress’s 1980 amendments requiring the Secretary of Health and Human Services to periodically confirm that recipients remain eligible. 42 U.S.C. § 421(h)(1). On the basis of the reexamination, Andrews was notified that his condition had improved sufficiently to make him ineligible for continued disability benefits. He applied for a reconsideration of the decision, but the determination was the same. He appealed to the administrative court, electing to proceed without counsel. The administrative law judge, on de novo review, found that the evidence indicated that as of the termination date “the claimant’s impairment improved” and that he “was capable of performing basic work activities....” The Appeals Council declined review.

Andrews retained counsel and commenced a civil action for a review of the Secretary’s decision. 42 U.S.C. § 405(g). On cross motions for summary judgment, a magistrate found that the decision was supported by substantial evidence on the record as a whole. The record before the administrative law judge contained four doctors’ reports and the plaintiff’s testimony. One of the reports is from Andrews’ own doctor, an internist, five years earlier, indicating that he believed his patient un *100 able to work at that time. The report was corroborated by the psychiatric evaluation of Dr. Martinez, a psychiatrist Andrews had been referred to by the department in 1976. Two other doctors, both independent practitioners, had examined Andrews by referral from the department in the year immediately prior to the hearing. Dr. Pe-demonte, a psychiatrist, concluded that as of July, 1981, Andrews could cope with the pressures of unskilled work. She found that Andrews could “understand, carry out and remember instructions” and “would be able to respond appropriately to supervisors and co-workers_” Dr. Panapio, an internist who sought to appraise the validity of Andrews’ physical complaints (he claimed to suffer from, among other things, irregular heart beats, chest pains, eye infection, Arthritis and leg problems) concluded that Andrews was in fact in good health. The physical examination revealed no cause or even evidence of the illnesses. His neurological exam found that: “The higher cerebral cortical functions such as understanding, speech, reading, writing, and calculation abilities were normal.” More, “[t]here were no psychotic signs [or] indication of any major affective disorder.” The magistrate held that the Secretary was justified in relying on the two more recent examinations by neutral doctors. Andrews also asked the magistrate, in the alternative, for a remand to the Secretary on the basis of a new psychiatric evaluation he had commissioned from Dr. Ostrov after the Secretary’s decision. Andrews’ counsel failed, however, to attach the doctor’s report to the motion, so the magistrate was unable to consider it. 1

The district court adopted the magistrate’s report in part. It accepted the finding that the Secretary had acted on substantial evidence. But it took note of Dr. Ostrov’s report, apparently properly submitted this time. Reasoning that no other tribunal had had the opportunity to consider Dr. Ostrov’s opinion, the district court used its discretion and remanded the case for consideration of the newly proffered evidence. 42 U.S.C. § 405(g). With Dr. Ostrov’s report in hand, Andrews returned to the administrative court. The new report convinced the department of Andrews’ continuing illness. The administrative law judge found that despite a period of recovery, Andrews had relapsed into disability on the date of Dr. Ostrov’s examination. The Appeals Council rejected the recommended decision to the extent it found Andrews had ever enjoyed a period of substantial remission. It reinstated benefits and awarded back benefits in full.

Andrews then returned to the district court to obtain $2,475 in fees and $600 in costs under the Equal Access to Justice Act, (“EAJA”), 28 U.S.C. § 2412(d)(1)(A), or, alternatively, under Rule 11, Fed.R.Civ. P. Having convinced the Secretary of his error, Andrews stands as the prevailing party and is thus entitled to costs and fees unless the position of the United States was substantially justified. The matter was referred to a magistrate, who denied the petition for costs and fees. He observed that the prior decision of the district court had found the Secretary’s original decision supported by substantial evidence and had remanded only for consideration of the newly identified evidence from Dr. Os-trov. Having decided that the Secretary’s position was supported by substantial evidence, it logically followed that it was substantially justified. The district court adopted the magistrate’s recommendation. Andrews appeals.

Both parties in this case have given considerable attention to whether an agency position lacking support of substantial evidence (thus failing judicial review) must necessarily also lack substantial justification (producing costs and fees under the EAJA). The facts of this case, however, do not present the question. The remand to the agency was not prompted by a lack of substantial evidence for the Secretary’s decision, but rather by new evidence Andrews subsequently acquired and presented. In remanding the case, the district judge found that the “Administrative Law *101 Judge’s report is supported by substantial evidence....”

We agree and conclude that the district court’s reasoning and decision was not clearly erroneous. Ferrell v. Pierce, 743 F.2d 454, 466 (7th Cir.1984). The administrative law judge reviewed reports from two physicians who had personally examined Andrews in the preceding year, both making findings consistent with non-disability. The opposing medical evidence was five years old and thus not even directly inconsistent with a finding of improvement in Andrews’ condition and a period of remission of his psychiatric illness. The judge also heard Andrews’ testimony but focused his opinion on the medical evidence.

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848 F.2d 98, 1988 U.S. App. LEXIS 7917, 1988 WL 59007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-andrews-plaintiff-appellant-v-otis-r-bowen-md-secretary-of-ca7-1988.