Soulis v. Saul

District Court, N.D. California·Decided March 17, 2021·No. 1:19-cv-04480·Unknown

Opinion

ANITA D. S.,1 Case No. 19-cv-04480-RMI

Plaintiff, ORDER ON CROSS-MOTIONS FOR v. SUMMARY JUDGMENT

ANDREW SAUL, Re: Dkt. Nos. 15, 20 Defendant.

Plaintiff, seeks judicial review of an administrative law judge (“ALJ”) decision denying her application for disability insurance benefits under Title II of the Social Security Act. Plaintiff’s request for review of the ALJ’s unfavorable decision was denied by the Appeals Council, thus, the ALJ’s decision is the “final decision” of the Commissioner of Social Security which this court may review. See 42 U.S.C. §§ 405(g), 1383(c)(3). Both parties have consented to the jurisdiction of a magistrate judge (dkts. 5 & 9), and both parties have moved for summary judgment (dkts. 15 & 20). For the reasons stated below, Plaintiff’s motion for summary judgment is granted, and Defendant’s motion is denied. The Commissioner’s findings “as to any fact, if supported by substantial evidence, shall be conclusive.” 42 U.S.C. § 405(g). A district court has a limited scope of review and can only set aside a denial of benefits if it is not supported by substantial evidence or if it is based on legal error. Flaten v. Sec’y of Health & Human Servs., 44 F.3d 1453, 1457 (9th Cir. 1995). The phrase “substantial evidence” appears throughout administrative law and directs courts in their review of factual findings at the agency level. See Biestek v. Berryhill, 139 S. Ct. 1148, 1154 (2019). Substantial evidence is defined as “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” Id. at 1154 (quoting Consol. Edison Co. v. NLRB, 305 U.S. 197, 229 (1938)); see also Sandgathe v. Chater, 108 F.3d 978, 979 (9th Cir. 1997). “In determining whether the Commissioner’s findings are supported by substantial evidence,” a district court must review the administrative record as a whole, considering “both the evidence that supports and the evidence that detracts from the Commissioner’s conclusion.” Reddick v. Chater, 157 F.3d 715, 720 (9th Cir. 1998). The Commissioner’s conclusion is upheld where evidence is susceptible to more than one rational interpretation. Burch v. Barnhart, 400 F.3d 676, 679 (9th Cir. 2005). On July 1, 2016, Plaintiff filed an application for disability insurance benefits, alleging an onset date of May 6, 2016. See Administrative Record “AR” at 16.2 As set forth in detail below, the ALJ found Plaintiff not disabled and denied the application on November 21, 2018. Id. at 16- 28. The Appeals Council denied Plaintiff’s request for review on May 29, 2019. See id. at 1-4. Thereafter, on August 1, 2019, Plaintiff sought review in this court (dkt. 1), contending, inter alia, that the ALJ erred by failing to consider the effects of Plaintiff’s depression and anxiety (which the ALJ had found to be non-severe at Step Two) at Step Four and Step Five. See Pl.’s Mot. (dkt. 15) at 13-15. Defendant contends that the ALJ properly evaluated the evidence in question, but that if the court disagrees and finds error in this regard, the proper remedy would be a remand for further proceedings. See Def.’s Mot. (dkt. 20) at 3-10. In reviewing the ALJ’s decision in this case to determine whether it was, in its entirety, supported by substantial evidence, the court has concluded (for the reasons stated below) that the ALJ’s determination at Step Two (to the effect that Plaintiff’s anxiety and depression were non- severe) was based on legal error and a failure on the ALJ’s part to properly develop the record; thus, the ALJ’s determination at Step Two was not supported by substantial evidence. Accordingly, the following is a statement of the evidence relevant to the ALJ’s erroneous evaluation of Plaintiff’s anxiety and depression at Step Two.3 Medical Evidence of Plaintiff’s Anxiety and Depression The record in this case is mostly focused on the multitude of Plaintiff’s physical illnesses and impairments. However, even a cursory review of the 1400-page record in this case reveals the undeniable fact that Plaintiff suffers from an anxiety disorder and a depression disorder, and that the two conditions combine to cause Plaintiff to suffer from insomnia and near-constant fatigue. In fact, there is even ample evidence that Plaintiff’s anxiety disorder exacerbates her gastrointestinal issues. For example, on a number of occasions, her physicians have noted that Plaintiff’s anxiety disorder predates her adrenal problems and that her anxiety symptoms are “not completely responsive to adrenal therapy.” See AR at 663, 705, 714, 848. On numerous other occasions, Plaintiff has been diagnosed with major depression, diagnoses that are attended with the notation that her depression is “possibly reactive to current pain condition as well as endocrine problems,” coupled with her “intolerance of multiple antidepressants in the past.” See e.g., id. at 855, 847. The 3 It should be noted here that Plaintiff has only asserted that the ALJ erred in failing to consider the “non- severe” conditions of anxiety and depression at Steps Four and Five, however, the court will, sua sponte, raise the issue of the incorrectness of the non-severity determination itself. In this regard, the court is not precluded from raising such an issue sua sponte; indeed, this court has an independent duty to determine whether the ALJ’s findings (in every regard) are supported by substantial evidence. This is so because an appeal from the denial of Social Security benefits is quite unlike ordinary civil litigation as the underlying claims process before the ALJ is not adversarial. See Sims v. Apfel, 530 U.S. 103, 110 (2000). Although it is true that claimants carry the burden of demonstrating that they qualify for benefits, the state of the law is not such as to leave them entirely to their own devices; consequently, lapses of pleading or procedure cannot be relied upon to withhold benefits from a claimant who may otherwise be entitled to them. See Tackett v. Apfel, 180 F.3d 1094, 1098 n.3 (9th Cir. 1999). Thus, when such a case is before this court, while a plaintiff must make her own arguments for remand, that does not relieve this court of its independent duty to effect a proper review of the facts and to render a thorough and independent determination as to whether the ALJ’s findings are supported by substantial evidence. Stone v. Heckler, 761 F.2d 530, 532 (9th Cir. 1985). In this context, it cannot be reasonably contended that the failure by a Plaintiff to raise an error is an acceptable reason for a court to actively ignore it. See Ariz. State Dep’t of Pub. Welfare v. Dep't of Health, Educ. & Welfare, 449 F.2d 456, 472 (9th Cir. 1971); Hess v. Sec’y of Health, Educ. & Welfare, 497 F.2d 837, 840 (3d Cir. 1974); see also Moran v. Astrue, 569 F.3d 108, 112 (2d Cir. 2009). A significant number of courts faced with this issue have arrived at a similar conclusion. See e.g., Farley v. Colvin, 231 F. Supp. 3d 335, 339-41 (N.D. Cal. 2017) (collecting cases standing for the proposition that while a remand request record reflects that Plaintiff’s physicians have consistently listed her depression, anxiety, and insomnia as ongoing problems. See id. at 563, 602, 612, 653, 662, 681, 687, 704, 713, 751, 754, 817, 834, 839, 846, 851, 854. Even a casual perusal of the record reveals that

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