William N. RAY, Plaintiff-Appellant, v. Otis R. BOWEN, Secretary of Health and Human Services, Defendant-Appellee

843 F.2d 998, 1988 U.S. App. LEXIS 5062, 1988 WL 32565
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 29, 1988
Docket86-3044
StatusPublished
Cited by99 cases

This text of 843 F.2d 998 (William N. RAY, Plaintiff-Appellant, v. Otis R. BOWEN, 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
William N. RAY, Plaintiff-Appellant, v. Otis R. BOWEN, Secretary of Health and Human Services, Defendant-Appellee, 843 F.2d 998, 1988 U.S. App. LEXIS 5062, 1988 WL 32565 (7th Cir. 1988).

Opinion

COFFEY, Circuit Judge.

William Ray appeals the district court’s order granting summary judgment in favor of the Secretary of Health, Education and Welfare (Secretary) on Ray’s suit pursuant to 42 U.S.C. § 405(g), seeking judicial review of the Secretary’s denial of disability benefits under the Social Security Act. Ray argues that the Secretary’s decision denying him disability benefits was not supported by substantial evidence, that the evidence demonstrated that he was disabled under the pertinent regulations, and that any alleged lack of relevant medical evidence to support a finding of disability is a result of the Secretary’s breach of his statutory duty to develop the record. Because the Appeals Council failed to comment on its assessment of certain material evidence presented, we reverse and remand this case to the Secretary for further proceedings consistent with this opinion.

I. BACKGROUND AND PRIOR PROCEEDINGS

William Ray is a fifty-year old man with a fifth grade education. From 1955 until October 24,1975, Mr. Ray was employed as a welder with American Bridge, a division of the United States Steel Company located in Gary, Indiana (American Bridge). In 1965, Mr. Ray’s right leg was amputated below the knee as the result of a work-related injury. Mr. Ray received a prosthesis and returned to work for American Bridge, though he occasionally required medical attention to correct complications with his artificial leg.

On October 24, 1975, Mr. Ray suffered a dizzy spell and chest pains which caused him to pass out at work. He was immediately hospitalized and diagnosed by Dr. Buyer as suffering from alcoholic cardiom-yopathy. 1 He never returned to work at American Bridge, but was retired as of the date of his hospitalization. Ray filed for disability insurance benefits on January 23, 1976 stating that he had been disabled since October 24, 1975 as a result of his amputated leg and a “heart condition.” His application was denied initially and on reconsideration. Ray requested and received a hearing before an Administrative Law Judge (AU) on October 22, 1976. He was not represented by counsel at that hearing. On February 7, 1977, the AU denied Ray’s application for disability benefits. The Appeals Council declined review. Ray then filed this action seeking review of the Secretary’s decision on June 30, 1977. On October 14, 1983, over six years later, the district court denied cross motions for summary judgment and remanded the case to the Secretary. 2 In its order remanding the case to the Secretary, the district court noted that the administrative record was replete with references to Mr. Ray’s alcoholism and that the AU had neither considered this factor in his decision denying benefits, nor had he developed the record concerning Ray’s alcohol dependency. Because of this failure to develop the record, the district court ordered the Secretary: 1) to make a meaningful record regarding Ray’s alcoholism, and 2) to allow Ray to rebut an adverse post-hearing medical report on which the AU had relied.

On remand, Ray’s application was assigned to the same AU. Five days prior to a scheduled supplemental hearing in this matter, Ray’s attorney made a motion for a *1000 continuance in order to secure additional medical evidence, to schedule Ray for a psychological evaluation and to issue a subpoena for Dr. Lanman, the physician on whose 1976 report the AU had previously relied. The AU denied these motions and held the supplemental hearing on May 29, 1986. At the hearing, Mr. Ray and his nephew testified at length about the history and effects of Ray’s alcoholism during the relevant period. 3 The AU also admitted into evidence Mr. Ray’s employment and medical records from American Bridge, as well as medical records pertaining to Mr, Ray’s inpatient treatment for alcoholism in March and April of 1986. The AU held the record open for approximately seven more months in order to permit Ray’s attorney to furnish additional documents. The AU then issued his recommended decision on January 13,1986, in which he again denied Ray’s claim for disability benefits.

The AU found that Ray had the following severe impairments: “severe status post amputation of the right leg below the knee, which has not prevented work activity; alcoholic cardiomyopathy with occasional arrhythmias; history of alcoholism without evidence of interference with work performance.” The AU concluded that none of these impairments, when considered in isolation or in combination, met the listings in Appendix 1, Subpart P, Regulations No. 4, which would direct a finding that he was disabled. The AU further held that Ray’s testimony regarding the effect of his alco-

holism on his ability to perform his work assignments was not credible in light of his employment records, which were free of disciplinary action for any alcohol-related incident. Though the AU concluded that Mr. Ray could not perform his past relevant work as a welder, he concluded that he retained the capability to do light work. Considering this residual functional capacity, along with Mr. Ray’s age, education and work experience, the AU concluded that the Medical-Vocational Guidelines 4 directed a finding that he was not disabled at any time on or before December 81, 1981, which was the last date that he qualified for disability benefits.

Ray filed exceptions to the AU’s recommended decision with the Appeals Council and introduced in evidence four additional exhibits relating to the severity of his alcoholism during the relevant period. The Appeals Council adopted the findings and conclusions of the AU, though it made several significant modifications to the AU’s decision. The Council noted first that because Mr. Ray’s alcoholism is classified as a mental impairment under the regulations (see 20 C.F.R. Part 404, Subpart P, Appendix 1, Section 12.09), the AU should have evaluated the effects of his alcoholism on his ability to work according to the special procedures set out in the regulations. 5 To correct the AU’s omission, the Appeals Council itself completed the required “Psychiatric Review Technique Form” and appended it to its decision. 6

*1001 The Appeals Council further noted that, in light of Mr. Ray’s mental impairment, the AU’s reliance solely on the Medical-Vocational Rules in determining whether he was disabled was misplaced. The Appeals Council recognized that where a claimant has a combination of impairments that are both exertional and non-exertional, the Medical-Vocational Rules should be used only in evaluating the individual’s ex-ertional limitations. Once this determination has been made, it serves as a framework from which to evaluate any further effect that a non-exertional impairment has on the person’s remaining work capability. 20 C.F.R. Pt. 404, Subpart P, Appendix 2, § 200.00(e)(2).

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843 F.2d 998, 1988 U.S. App. LEXIS 5062, 1988 WL 32565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-n-ray-plaintiff-appellant-v-otis-r-bowen-secretary-of-health-ca7-1988.