WITHAM v. SOCIAL SECURITY ADMINISTRATION COMMISSIONER

District Court, D. Maine·Decided December 23, 2020·No. 2:19-cv-00258·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MAINE

PHILLIP W., ) ) Plaintiff, ) ) v. ) 2:19-cv-00258-JDL ) ANDREW M. SAUL, Social ) Security Administration ) Commissioner, ) ) Defendant. )

ORDER ON MOTION FOR ATTORNEY FEES

Phillip W. brought this action in June 2019, seeking review of the final administrative decision of the Social Security Administration Commissioner denying his application for supplemental income benefits (ECF Nos. 1, 11). United States Magistrate Judge John C. Nivison recommended that I remand the case to the Commissioner (ECF No. 24), a recommendation that I adopted (ECF No. 25). The Plaintiff now moves for an award of attorney fees and expenses under the Equal Access to Justice Act, 28 U.S.C.A. § 2412 (West 2020) (ECF No. 27). The Commissioner opposes the award, arguing that (1) fees are not warranted under the EAJA because his position in the case was “substantially justified” under § 2412(d)(1)(A), and (2) even if the Commissioner’s position was not substantially justified, the award that the Plaintiff requests is unreasonable (ECF No. 28). For the reasons that follow, I find that the fee award that the Plaintiff seeks is warranted, but with a modest downward adjustment. I. BACKGROUND To evaluate whether the Commissioner’s position was substantially justified, I recount the history of the case—including the administrative proceedings—in some

detail. A. Administrative Proceedings In November 2016, the Plaintiff filed an application for supplemental security income, which was denied. An Administrative Law Judge (ALJ) held an initial hearing on February 28, 2018. At the hearing, the Commissioner presented testimony by a vocational expert (VE). The Plaintiff requested a supplemental

hearing to continue addressing the VE testimony and, at the ALJ’s request, agreed to bring a rebuttal VE witness to that hearing rather than submit a post-hearing affidavit. The Plaintiff did not bring a rebuttal witness to the supplemental hearing, which was held on June 15, 2018; instead, a few days after the hearing, the Plaintiff submitted a post-hearing brief, which included an affidavit by a rebuttal VE witness. On June 29, 2018, the ALJ issued an unfavorable decision, relying on the Commissioner’s expert’s testimony to conclude that the Plaintiff is not disabled. The

ALJ did not admit or consider the rebuttal affidavit in part because the Plaintiff had not complied with the ALJ’s requirement that the testimony be presented in person. On July 26, 2018, the Plaintiff appealed the ALJ’s decision to the Appeals Council on the grounds that the ALJ had erred by declining to admit the rebuttal affidavit. On the same day that he filed his appeal, the Plaintiff filed a letter (the “first Lucia letter”) with the Appeals Council, arguing that the ALJ lacked authority

to decide his claim under the Appointments Clause of the United States Constitution and Lucia v. SEC, 138 S. Ct. 2044 (2018). The Appeals Council denied the appeal on April 8, 2019. On April 26, 2019, the Plaintiff filed a letter with the Appeals Council seeking

reconsideration on Lucia grounds. In that letter, the Plaintiff did not mention the first Lucia letter or otherwise indicate that he had already raised the Lucia issue before the Appeals Council. The Appeals Council did not act on or respond to the Plaintiff’s second letter. B. Judicial Proceedings On June 6, 2019, the Plaintiff filed a complaint seeking review of the ALJ’s

decision under 42 U.S.C.A. § 405(g) (West 2020). On August 19, 2019, the Commissioner filed his answer, along with the transcript and administrative record as required by sentence three of § 405(g); however, the record filed by the Commissioner did not include either of the Plaintiff’s letters raising the Lucia issue.1 In the Plaintiff’s statement of errors, he primarily challenged the ALJ’s refusal to consider the rebuttal affidavit. He also challenged the ALJ’s authority under Lucia, but stated that he had raised Lucia “in a letter to the Appeals Council dated April 26,

2019”—i.e., after the Appeals Council’s decision. ECF No. 11 at 12. The Plaintiff did not mention the first Lucia letter in his statement of errors. In response, the Commissioner defended the ALJ’s evidentiary decision, and argued that the Plaintiff had waived the Lucia issue by failing to raise it at the administrative level.

1 According to the Commissioner, a search of the Social Security Administration’s electronic case management systems “indicates that a supplemental document was submitted after [the Plaintiff’s original] brief to the Appeals Council, but the document itself is not recorded in ”the case management systems that store the administrative record.” ECF No. 28 at 6. On December 8, 2019, the day before the Magistrate Judge was scheduled to hear oral argument in the case, the Plaintiff realized that the first, timely Lucia letter was not in the administrative record and brought it to the Magistrate Judge’s

attention. At oral argument and in a supplemental brief filed later, the Commissioner conceded that remand would be appropriate if the Lucia argument had not been waived, but maintained that the Plaintiff had waived Lucia by failing to mention the timely letter in his statement of errors. On January 7, 2020, the Magistrate Judge determined that the Plaintiff had timely raised Lucia before the Appeals Council and, accordingly, recommended that I remand the case, which I

ordered on April 1, 2020. In July 2020, the Plaintiff moved for a fee award under the EAJA, requesting a total of $7898.12 in fees (ECF No. 27). The Commissioner opposes an award on the grounds that his litigation position in the entire case was substantially justified because (1) it was reasonable to defend the ALJ’s decision on the VE issue, and (2) the Commissioner reasonably relied on the Plaintiff’s representation that he had first raised the Lucia issue on April 26, 2019. The Commissioner also argues that if I

conclude that his position was not reasonable, I should nevertheless reduce the fee award because the requested amount is excessive. II. DISCUSSION A. Substantial Justification “Under the EAJA, ‘a court shall award to a prevailing party other than the United States fees and other expenses . . . unless the court finds that the position of

the United States was substantially justified . . . .’” McLaughlin v. Hagel, 767 F.3d 113, 117 (1st Cir. 2014) (quoting 28 U.S.C. § 2412(d)(1)(A)). The government bears the burden to demonstrate substantial justification. See id. The government’s position is “‘substantially justified’ if it is ‘justified to a

degree that could satisfy a reasonable person’—that is, if the position has a ‘reasonable basis both in law and fact.’” Id. (quoting Pierce v. Underwood, 487 U.S. 552, 565 (1988)). “The Supreme Court has instructed that, ‘while the parties’ postures on individual matters may be more or less justified, the EAJA—like other fee shifting statutes—favors treating a case as an inclusive whole, rather than as atomized line-items.’” Saysana v. Gillen, 614 F.3d 1, 5 (1st Cir. 2010) (quoting

Comm’r, Immigration & Naturalization Serv. v. Jean, 496 U.S. 154, 161-62 (1990) (alteration omitted)). Thus, “[t]o satisfy its burden, the government must justify not only its pre-litigation conduct but also its position throughout litigation.” Dantran, Inc. v. U.S.

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