Stanley v. Heckler

604 F. Supp. 1102, 1985 U.S. Dist. LEXIS 21676, 9 Soc. Serv. Rev. 611
CourtDistrict Court, D. Montana
DecidedMarch 18, 1985
DocketNo. CV-84-215-GF
StatusPublished
Cited by1 cases

This text of 604 F. Supp. 1102 (Stanley v. Heckler) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stanley v. Heckler, 604 F. Supp. 1102, 1985 U.S. Dist. LEXIS 21676, 9 Soc. Serv. Rev. 611 (D. Mont. 1985).

Opinion

MEMORANDUM AND ORDER

HATFIELD, District Judge.

This action is before the court on motion of the plaintiff, Thomas M. Stanley, requesting the court to enter judgment by default against the defendant, the Secretary of Health and Human Services (“Secretary”), pursuant to Rule 55(e), Federal Rules of Civil Procedure.

PROCEDURAL HISTORY

On January 23, 1985, the Secretary’s default was entered in this matter pursuant to Rule 55(a), Fed.R.Civ.P. The Secretary’s default was appropriately entered after she failed, for the second time, to file a timely answer to Mr. Stanley’s complaint for judicial review, under 42 U.S.C. § 405(g), of the Secretary’s decision denying Stanley’s claim for Disability Income Benefits and Supplemental Security Income under the Social Security Act. Substantially contemporaneous with the entry of her default, the Secretary moved to dismiss Mr. Stanley’s complaint upon jurisdictional grounds; a motion which the court denied for lack of merit.

On January 28, 1985, the Secretary filed a motion requesting the court to set aside the default and grant the Secretary leave to file her answer.1 The only basis advanced by the Secretary in support of that motion was her assertion that the filing of the motion to dismiss somehow entitles her to relief from the default.

On February 28, 1985, a hearing was held before the court, at which time the plaintiff was allowed the opportunity to present evidence sufficient to establish his claim for relief, and the Secretary the opportunity to rebut the same. At the time of the hearing, the Secretary renewed her request for relief from the default, and asked the court to allow the administrative record to be filed.

DISCUSSION

Relief from Default

Under Rule 55(c), Fed.R.Civ.P., the court can set aside an entry of default for “good cause.” Cognizant of the fact that default judgments are not favored in the law, see, Schwab v. Bullock’s Inc., 508 F.2d 353 (9th Cir.1974), the court is, nonetheless, [1104]*1104compelled to deny the Secretary’s request for relief.

A default should not be set aside when the reasons urged for doing so are insufficient to warrant that relief. See e.g., Dolphin Plumbing Co. of Florida, Inc. v. Financial Corp. of North America, 508 F.2d 1326 (5th Cir.1975). The Secretary has not offered, let alone established, any reason why she failed to file a timely answer. The Secretary simply submits that the filing of an untimely motion to dismiss entitles her to relief from the default entered against her. The filing of an untimely motion to dismiss, however, does not constitute “good cause,” sufficient to relieve a party from the entry of default, even under the relaxed standard of Rule 55(c), Fed.R.Civ.P.

The Secretary moves in virtually every action for judicial review under 42 U.S.C. § 405(g) for an extension of time to file an answer upon the ground that additional time is needed to prepare the transcript of the administrative hearing. In fact, multiple requests for additional time are made in nearly every case. The default of the Secretary has been entered in numerous prior cases before this court. Whenever the default is entered, however, the Secretary immediately files an answer and the administrative record, beseeching the court to set aside her default. To this point, the court has exercised its discretion in a lenient manner, but has never received an explanation for the inordinate delay associated with the preparation of the administrative transcripts in these matters.

The transcript of the administrative hearing in the present action is less than 20 pages in length. Surely, the 120 days granted the Secretary to file an answer was adequate time to prepare that transcript. The Secretary has not offered any fact which would warrant a conclusion to the contrary.

The court is acutely aware of both the Secretary’s heavy workload, and the fact that the federal courts are prohibited from interfering with the administrative process. Where a final decision has been rendered by the Secretary and a complaint for judicial review filed, however, the individual' claimant is entitled to a timely judicial review. Unwarranted and unexplained delays will not be condoned by this court, where the ultimate decision in such cases is of paramount importance to the individual claimant, disability benefits represent perhaps the only source of income to a deserving claimant.

Default Judgment

Rule 55(e), Fed.R.Civ.P. provides:

No judgment shall be entered against the United States or an officer or agency thereof unless the claimant establishes his claim or right to relief by evidence satisfactory to the court.

Consistent with the proscription of Rule 55(e), the court, in the matter sub judice, held an evidentiary hearing with respect to Mr. Stanley’s claim. Mr. Stanley presented evidence which established to the satisfaction of the court that he is “disabled” within the meaning of the Social Security Act, and entitled to the benefits claimed in his complaint. Accordingly, the court finds it appropriate, on the basis of the evidence presented, to enter judgment by default in favor of Mr. Stanley.

The Secretary submits that the court may not enter default judgment against her without considering the administrative record. The Secretary contends that federal courts are precluded, by Rule 55(e) in conjunction with 42 U.S.C. § 405(g) and (h), from granting relief to a Social Security claimant, even where the Secretary is in default under Rule 55(a), unless the claimant establishes that the Secretary’s final decision is not supported by substantial evidence.

Several circuit courts have struggled to develop a logical analysis of the interrelationship between Rule 55(e) and the standard of review established by 42 U.S.C. § 405(g), and reach a conclusion as to whether a district court is without authority in cases under the Social Security Act, to affirm, modify or reverse a decision of the [1105]*1105Secretary, even in the context of a default by the Secretary, without considering the administrative record. See, Alameda v. Sec. of Health, Educ. and Welfare, 622 F.2d 1044 (1st Cir.1980); Williams v. Califano, 593 F.2d 282 (7th Cir.1979); Poe v. Matthews, 572 F.2d 137 (6th Cir.1978); Carroll v. Sec. of Health, Educ. and Welfare, 470 F.2d 252 (5th Cir.1972).

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Cite This Page — Counsel Stack

Bluebook (online)
604 F. Supp. 1102, 1985 U.S. Dist. LEXIS 21676, 9 Soc. Serv. Rev. 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stanley-v-heckler-mtd-1985.