(SS) Ortiz v. Commissioner of Social Security

District Court, E.D. California·Decided August 20, 2025·No. 2:21-cv-01563·Unknown

Opinion

1 2 3 4 5 6 7 10 11 Luis Ortiz, No. 2:21-cv-01563 KIM DMC 12 Plaintiff, ORDER 13 v. Commissioner of Social Security, 1S Defendant. 16 17 Luis Ortiz brought this action with retained counsel for judicial review of a final decision 18 | of the Commissioner of Social Security under the Social Security Act, 42 U.S.C. § 405(g). The 19 | court remanded Ortiz’s case to the Administrative Law Judge (ALJ) to recalculate Ortiz’s residual 20 | functional capacity (RFC) based on the medical opinions in the record and granted judgment in 21 | Ortiz’s favor under sentence four of section 205(g) of the Social Security Act, 42 U.S.C. § 405(g). 22 | Ortiz now moves for attorneys’ fees under the Equal Access to Justice Act (EAJA), 23 | 28U.S.C.§ 2412. As explained more fully below, the court grants Ortiz’s motion. 24 | ///// 25 | ///I/ 26 | ///// 27 | JI

2 Ortiz initially applied for social security benefits on April 1, 2019. Admin. Record (AR) 3 at 25, ECF No. 14-1.1 After a hearing, the ALJ found Ortiz was not disabled in part because he 4 had an RFC of full range of medium work. See id. at 25–35. After the Appeals Council declined 5 review, Ortiz appealed to this court and moved for summary judgment. See Soc. Sec. Compl., 6 ECF No. 1; Pl.’s Mot. Summ. J., ECF No. 17. The government also moved for summary 7 judgment. See ECF No. 21. The assigned magistrate judge issued findings and recommendations 8 recommending the court deny Ortiz’s motion for summary judgment, grant the government’s 9 motion for summary judgment and affirm the government’s final decision on Ortiz’s social 10 security benefits application. See F&Rs at 15, ECF No. 23. Ortiz objected, arguing this court 11 should not adopt the magistrate judge’s recommendations because, in pertinent part, the ALJ 12 ignored three relevant medical opinions. See Objs. at 4–5, ECF No. 24. After evaluating the 13 record, the court agreed the ALJ had improperly relied on his own lay opinion, which was 14 contradicted by the opinions by three medical experts. See Order (Feb. 10, 2025) at 4–5, ECF 15 No. 28. The court also found the ALJ had not properly analyzed the record in other respects, such 16 as by placing too much weight on the observations of field agents who had not actually recorded 17 any reliable “observations/perceptions” in their report. See id. at 4. The court remanded the 18 matter for the ALJ to recalculate Ortiz’s RFC and granted judgment in Ortiz’s favor under 19 sentence four of section 205(g) of the Social Security Act, 42 U.S.C. § 405(g). See id. at 6; ECF 20 No. 37. 21 On May 12, 2025, Ortiz moved for attorneys’ fees under the EAJA, seeking $10,609.67. 22 See Mot., ECF No. 30; Mem. at 3–6, ECF No. 30-1. The government opposes the motion, 23 arguing its position during the prior proceedings was substantially justified. See Opp’n at 2–8, 24 ECF No. 34. In the alternative, the government seeks a reduction of the award to $8,871.05. See 25 id. at 8–11. The motion is now fully briefed. See Mot.; Opp’n; Reply, ECF No. 35. The court 26 took the matter under submission without hearing oral argument. See E.D. Cal. L.R. 230(g). 1 All page citations are to the top right by the CM/ECF system. 2 The EAJA provides: 3 Except as otherwise specifically provided by statute, a court shall 4 award to a prevailing party other than the United States fees and other 5 expenses, in addition to any costs awarded pursuant to subsection (a), 6 incurred by that party in any civil action (other than cases sounding 7 in tort), including proceedings for judicial review of agency action, 8 brought by or against the United States in any court having 9 jurisdiction of that action, unless the court finds that the position of 10 the United States was substantially justified or that special 11 circumstances make an award unjust. 12 28 U.S.C. § 2412(d)(1)(A). A claimant who receives a sentence four remand is a prevailing party 13 for the purposes of the EAJA. See Shalala v. Shaefer, 509 U.S. 292, 301–02 (1993). The parties 14 do not contest Ortiz’s status as a prevailing party for the purposes of the EAJA. Further, to obtain 15 attorneys’ fees under the EAJA, the prevailing party’s net worth must be below $2 million. See 16 28 U.S.C. § 2412(a)(2)(B). Ortiz’s counsel, Eddy Pierre Pierre has declared, and the government 17 does not disagree, that Ortiz’s net worth is below $2 million. See Pierre Pierre Decl. ¶ 17, ECF 18 No. 30-2. The government argues only that its position was substantially justified and a portion 19 of Ortiz’s request for attorneys’ fees is unreasonable. The court addresses each of these 20 arguments in turn. 21 A. Substantially Justified? 22 The government has the “burden to show that its position was substantially justified.” 23 Meier v. Colvin, 727 F.3d 867, 870 (9th Cir. 2013). The government’s position includes both its 24 “litigation position and the underlying agency action giving rise to the civil action.” Id. Because 25 the government has the burden to prove both its litigation position and the underlying agency 26 action were substantially justified, if the court finds the underlying agency action was not 27 substantially justified, the court may not need to evaluate the government’s litigation position. 28 See Tobeler v. Colvin, 749 F.3d 830, 832 (9th Cir. 2014). To be substantially justified, the 29 government’s position should be “justified to a degree that could satisfy a reasonable person.” 30 Pierce v. Underwood, 487 U.S. 552, 565 (1988). The government’s position must be 31 substantially justified in both “law and fact.” Id. A finding that an ALJ’s decision is not 1 grounded in substantial evidence almost always also yields a finding that the ALJ’s decision also 2 was unreasonable. See Thangaraja v. Gonzales, 428 F.3d 870, 874 (9th Cir. 2005) (“[I]t will be 3 only a decidedly unusual case in which there is substantial justification under the EAJA even 4 though the agency’s decision was reversed as lacking in reasonable, substantial and probative 5 evidence in the record.”). 6 Here, the court finds the underlying agency action was not substantially justified. While 7 an ALJ may evaluate the entire record when crafting the RFC, see Vertigan v. Halter, 260 F.3d 8 1044, 1049 (9th Cir. 2001), the ALJ’s decision must still be grounded in substantial evidence, and 9 thus the weighing of the evidence must be reasonable. See Meier, 727 F.3d at 870. The Ninth 10 Circuit has held that failing to provide clear and convincing reasons for discounting medical 11 testimony is a “serious procedural error” and is “difficult to justify.” Murphy v. Colvin, 12 No. 14-3784, 2016 WL 1410279, at *2 (N.D. Cal. Apr. 11, 2016) (quoting Shafer v. Astrue, 13 518 F.3d 1067, 1071–72 (9th Cir. 2008), and Corbin v. Apfel, 149 F.3d 1051, 1053 (9th Cir. 14 1998)). Here, in light of the Ninth Circuit authority, the ALJ’s reliance on unrecorded 15 observations by field agents and his rejection of three medical opinions was not reasonable.

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