Vitale v. Secretary of Health and Human Services

673 F. Supp. 1171, 1987 U.S. Dist. LEXIS 10825, 1987 WL 3466
CourtDistrict Court, N.D. New York
DecidedNovember 23, 1987
Docket83-CV-543
StatusPublished
Cited by15 cases

This text of 673 F. Supp. 1171 (Vitale v. Secretary of Health and Human Services) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vitale v. Secretary of Health and Human Services, 673 F. Supp. 1171, 1987 U.S. Dist. LEXIS 10825, 1987 WL 3466 (N.D.N.Y. 1987).

Opinion

MEMORANDUM DECISION AND ORDER

McCURN, District Judge.

Pending before the court in the above-captioned case is a motion by plaintiffs attorney, James Baker, for attorney's fees and expenses pursuant to § 2412(d)(1)(A) of the Equal Access to Justice Act (“EAJA”). 1 In the alternative, plaintiffs attorney is seeking attorney’s fees for representing plaintiff before this court, paid out of plaintiff’s past-due benefits pursuant to § 406(b)(1) of the Social Security Act. 2 For the reasons set forth herein, the motion by plaintiffs attorney for attorney’s fees and expenses under the EAJA is granted; and consequently, the alternative motion by plaintiffs attorney for fees under the Social Security Act is denied.

On May 6, 1983, plaintiff filed the present action pursuant to 42 U.S.C. § 405(g) seeking judicial review of a final decision by the Secretary of Health and Human Services (“the Secretary”) terminating his disability benefits under the Social Security Act. Eventually, the Secretary moved to remand plaintiff’s claim pursuant to § 2 of the then recently enacted Social Security Disability Benefits Reform Act of 1984 (“the Reform Act”). Section 2 of the Reform Act set forth a new medical improvement standard to be applied in decisions to terminate disability benefits. See 42 U.S.C. § 423(f) (West Supp.1987). Section 2 further required that courts “shall remand” to the Secretary cases such as the present one where plaintiffs action seeking judicial review was pending on September 19, 1984, and where medical improvement was an issue. 42 U.S.C. § 423 note (West Supp.1987).

On January 9, 1985, this court granted the Secretary’s motion and ordered this action remanded pursuant to the statutory mandate of section 2 of the Reform Act. Upon remand, the Secretary reconsidered plaintiffs claim in accordance with the relevant provisions of the Reform Act and determined that the decision to terminate plaintiffs disability benefits was in error. Plaintiff received $23,289.20 in retroactive benefits for the period of February, 1982 through November, 1984.

*1173 Plaintiff then moved for an order dismissing the complaint because he was ultimately awarded all the benefits to which he was entitled. On September 22, 1987, the parties stipulated on the record before this court to a dismissal of the complaint. The Secretary further stipulated that he would not be appealing this action on the merits.

DISCUSSION

The EAJA provides that courts shall award attorney’s fees and expenses to the “prevailing party” in litigation against the government. 28 U.S.C. § 2412(d)(1)(A) (West Supp.1987). Attorney’s fees will not be awarded, however, if the government’s position was “substantially justified” or if “special circumstances” exist making such an award unjust. Id.

This motion for EAJA attorney’s fees presents three issues for the court’s determination. The first issue is whether plaintiff is a “prevailing party” for EAJA purposes. Before addressing the merits of that issue, however, the court must consider a somewhat novel issue raised by the Secretary. Basically, it is the Secretary’s position that the plaintiff is not a prevailing party within the meaning of the EAJA because this court did not retain jurisdiction over the present action. The court must therefore determine whether it has jurisdiction to award EAJA fees here. Finally, the court must determine whether the Secretary’s position in litigating this action was “substantially justified.”

I. Jurisdiction

Turning first to the jurisdiction argument, § 2 of the Reform Act provides, inter alia:

The decision by the Secretary on a case remanded by a court pursuant to this subsection shall be regarded as a new decision on the individual’s claim for benefits, which supersedes the final decision of the Secretary. The new decision shall be subject to further administrative review and to judicial review only in conformity with the time limits, exhaustion requirements, and other provisions of section 205 of the Social Security Act [section 405 of this title] and regulations issued by the Secretary in conformity with such section.

42 U.S.C.A. § 423 note (West Supp.1987) (emphasis added). Relying upon that provision, the Secretary urges that plaintiff is not a prevailing party within the meaning of the EAJA because this court did not retain jurisdiction over the present action when it remanded the case pursuant to § 2 of the Reform Act. The court finds that the Secretary’s argument is specious, however, for several reasons.

First; although the Secretary couches its argument in terms of jurisdiction, he is actually making an exhaustion argument. That is, when a case is remanded pursuant to § 2 of the Reform Act, at what point during the course of the subsequent administrative and judicial proceedings are plaintiffs’ attorneys entitled to seek EAJA fees? Although not expressly stated by the Secretary, he seems to be suggesting that because his decision on remand is a new decision under the Reform Act language, plaintiff must exhaust his administrative and judicial remedies before his attorney may request EAJA fees. The obvious response here is that the plaintiff has adequately exhausted his administrative remedies with respect to the new decision. On remand plaintiff prevailed on the merits of his claim and the Secretary expressly agreed that he would not appeal the merits of that decision. Therefore, because plaintiff was successful on remand and because the Secretary will not be appealing that award, plaintiff has exhausted his administrative remedies, and there is no need for any further judicial review. Plaintiff’s action is thus in the appropriate posture for the present motion for EAJA attorney’s fees. By agreeing not to appeal the merits of the new decision favorable to plaintiff, the Secretary effectively waived any argument it might have had that plaintiff’s attorney is premature in seeking EAJA attorney’s fees at this juncture.

An additional reason for not accepting the Secretary’s assertion that the “new decision” language of the Reform Act deprived this court of jurisdiction is that that *1174 assertion is inconsistent with the general rules pertaining to remand orders. District court orders remanding cases to the Secretary for further administrative review are considered to be interlocutory orders. Zambrana v. Califano, 651 F.2d 842, 844 (2d Cir.1981) (citations omitted). Therefore, it follows that because remand orders are interlocutory, the district court retains jurisdiction over the case until the remand proceedings have been completed. Taylor v. Heckler,

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673 F. Supp. 1171, 1987 U.S. Dist. LEXIS 10825, 1987 WL 3466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vitale-v-secretary-of-health-and-human-services-nynd-1987.