Friday, March 15, 2024

Ferguson v. O'Malley -- When Not Accepting Limitations Described In Testimony Is a Rejection

The Ninth Circuit published Ferguson v. O'Malley on March 14, 2024. The divided panel used the clear and convincing standard to reverse the decision denying Ferguson's benefits. The dissent would affirm. 

The decision affirms the proposition that an administrative decision lacks the support of substantial evidence if the ALJ improperly rejected the symptom testimony. The decision relies on Lingenfelter v. Astrue, 504 F.3d 1028, 1035 (9th Cir. 2007) and Garrison v. Colvin, 759 F.3d 995, 1014 (9th Cir. 2014). 

Judge Rawlinson in dissent asserts that the substantial evidence standard is not high and some evidence supports the ALJ decision. Judge Rawlinson relies on Ahearn v. Saul, 988 F.3d 1111, 1115 (9th Cir. 2021) and Biestek v. Berryhill, 139 S. Ct. 1148, 1154 (2019). 

The characterization of a decision that does not properly address the testimony as stripping the ALJ decision of a foundation in substantial evidence is the source of the problem. Substantial evidence is a low bar. It gets the case past a directed verdict and is grounds for denying a motion for judgment not withstanding the verdict. According to Judge Rawlinson, there is evidence that Ferguson had less severe symptoms, i.e., the medical evidence. Could a factfinder rely on the medical evidence and reject Ferguson's testimony? In a civil trial, clearly that is the case. 

But this is administrative law. The ALJ must not only reach a permissible result but also reach that result for permissible reasons. The permissible result is the foundation of substantial evidence. The permissible reasons turns on the articulation standards. In essence, the decision holds that the ALJ did not have sufficient reasons for rejecting Ferguson's testimony. That sounds more an error of law rather than a failure of evidence. Therein lies the nuance. The reasons articulated were insufficient to persuade the reasonable mind under Biestek and therefore the decision lacks the support of substantial evidence. It would be easier and avoid Judge Rawlinson's dissent if the decision -- and the decades of precedent -- called a failure to state clear and convincing reasons for rejecting the symptom testimony an error of law and a failure of substantial evidence. The clear and convincing standard does invoke a mixed question of law and fact. 

Judge Rawlinson rails against the decision because the ALJ did not reject Ferguson's testimony but actually incorporated the testimony into the residual functional capacity assessment. The decision summarizes the record that the ALJ discounted the testimony about the severity and frequency of headaches caused by a history of epilepsy, Arnold-Chiari malformation, and headaches as a separate impairment. Ferguson has headaches that occur two to three times per week and last for up to two days. Judge Rawlinson says that the ALJ accepted the symptom testimony. The ALJ did find headaches but rejected the intensity and persistence of those headaches. This part of the dissent is semantically wrong. 

Judge Rawlinson doubles down on the ALJ reliance of activities of daily living. Ferguson watched television and played video games daily (Judge Rawlinson's emphasis). We should play along. Ferguson turns on the TV and plays games every day. He plays for hours and hours. Two or three days a week, he has a headache that lasts for two hours and he cannot watch TV or play games for those two hours. Is the fact that Ferguson watches TV or plays games for eight hours a day evidence that Ferguson could perform the sustained requirements of work on a regular work schedule? Of course not. One or two interruptions per week for up to two hours is an unacceptable interruption of the work pace and productivity required of competitive work. Taking car of wild cats, making meals, building models, attending to self-care, possessing the knowledge and ability to drive do not detract from an episodic impairment. 

If Ferguson had testified that he had headaches 16 hours a day and slept the other 8 hours, having any activity that required concentration to task would contradict the testimony. That was not his testimony according to the decision and the dissent. The substantial evidence standard is not high but it is not a trough either. Substantial evidence satisfies the reasonable mind. Having a host of activities of daily living does not negate the interruption of those activities two or three times per week for up to two hours per day. Garrison, 759 F.3d at 1016 addresses the difficulty in applying activities of daily living performed when the person can or wants to perform them to the rigors of performing work functions when the employer wants them done. 

Judge Sung joined by Judge Bea reached the right result. The ALJ does not have discretion to reject the testimony about the severity, persistence, and impact of symptoms on the ability to function simply by pointing to the medical evidence or that the claimant does not vegetate in a dark room. That is not the standard. The question is and has always been whether the person could get to work every day, remain productive throughout the day, and continue that pattern week after week, month after month. 

You are an employer. You have a simple job for Ferguson to do. He leaves early, arrives late, or is unproductive for up to two hours at a time twice a week. How long does that pattern last before Ferguson gets fired -- by you. Severe headaches that render the person unable to function in a work setting on a repeating basis cannot sustain work. 

The dissent is wrong. 

Hat tip to Alyson Young and Kevin Kerr. Lawyers do not make enough money on SSI cases in federal court. Lawyers do not make enough money in Social Security cases to warrant a trip to the Court of Appeals in any case. We take the cases because someone has to hold the agency's feet to the fire and someone has to correct persistent errors in the district courts. It is a loss leader. It is the right thing to do. We who journey into the federal courts have more lucrative things to do. But we seek justice because the system needs it.  


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Suggested Citation:

Lawrence Rohlfing, Ferguson v. O'Malley -- When Not Accepting Limitations Described In Testimony Is a Rejection, California Social Security Attorney (March 15, 2024)

https://californiasocialsecurityattorney.blogspot.com

The author has been AV-rated since 2000 and listed in Super Lawyers since 2008.




 




Friday, March 8, 2024

January 2024 Unpublished Ninth Circuit Memoranda -- What Is Not Working

Two months into the 2024 calendar and the Ninth Circuit has issued nine unpublished memoranda, two in January. We take a look at those two dispositions to get a sense of what works and what does not work. 

1. Cross v. O'Malley - We discussed using the APA as a basis for reviewing SSA decisions and actions in the discussion of published part of the disposition of this case. The court affirmed the Commissioner. 

    a. In the memorandum, the court repeats the conclusion that the refusal to reopen or revise a prior decision/determination is not subject to judicial review. 

    b. Dr. Loreli suggested caution in relying on test results and observed that Cross gave up quickly. The ALJ relied on inconsistencies (not specified in the memorandum) between Dr. Loreli's opinion and the medical records.

    c. Cross raised error in failing to include PCOS (polycystic ovary syndrome) is the list of severe impairments. The ALJ proceeded past step two. The ALJ would include limitations from severe and non-severe impairments in the residual functional capacity assessment. Counsel conceded at oral argument that the record did not include evidence of limitations from PCOS during the relevant period. 

    d. Cross contended that the ALJ did not properly consider the symptoms and limitations. The memorandum cites the ALJ reliance on inconsistencies about the presence of seizures, the need for daytime sleeping, the ability to drive, and activities of daily living. 

    e. Cross contended that the ALJ failed to include all limitations in the examination of the vocational witness. This is not a separate issue but a rehash of the opinion evidence and testimonial evidence issue. The step five hypothetical question issue compares the question to the RFC. This issue is otherwise relegated to a materiality component of the second, third, and fourth issues. 

2. Kennedy v. O'MalleyThe court affirmed the Commissioner. 

    a. Kennedy provided evidence that Dr. Pickett provided false evidence in another case, not this case but another case. Kennedy did not provide that evidence to the ALJ. Nor did Kennedy present the evidence to the district court. The issue was waived. Nor could Kennedy point to any part of the report in this case that was false. 

    b. Kennedy raised the issue rejected in Cross. A panel cannot override a precedential decision of another panel. 

    c. Kennedy contended that the ALJ improperly rejected parts of one consultative examiner's opinions and all of the other CE. The ALJ relied on normal EMG studies to reject lifting limitations below the 10/20 required by the definition of light work. The ALJ (referred to as IJ in the memorandum) could reject an unexplained conclusion as neither inherently valuable or persuasive. 

    d. Kennedy raised the excess pain argument. The ALJ pointed to evidence of malingering and the lack of objective findings. Kennedy participated in pain management but stopped taking the medication. 

    e. The ALJ did not address the observations of the SSA employee citing 20 CFR § 404.1520c(d). The panel got it wrong. The regulations bind the ALJ to "consider all of the evidence presented, including [...] observations by our employees." 20 CFR § 404.1529(c)(3). "Consider" means what it means in grade school, "show your work." 

    f. Kennedy contended that the ALJ failed to include all limitations in the examination of the vocational witness. See the discussion of Cross, supra, at paragraph e. 

The common thread is Cross and Kennedy is mistaking an incomplete hypothetical that matches the RFC assessed as an independent issue. See Embrey v. Bowen, 849 F.2d 418, 423 (9th Cir. 1988) (requiring remand and reconsideration because the ALJ's hypothetical did not reflect all of the claimant's limitations). It is not. The incomplete hypothetical show materiality of an RFC that lacks the support of substantial evidence. Bruton v. Massanari, 268 F.3d 824, 828 n.1 (9th Cir. 2001) (ALJ could not rely on the grids where the RFC has a non-exertional limitation not considered, that the ALJ did not find to be true).

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Suggested Citation:

Lawrence Rohlfing, January 2024 Unpublished Ninth Circuit Memoranda -- What Is Not Working, California Social Security Attorney (March 8, 2024)

https://californiasocialsecurityattorney.blogspot.com

The author has been AV-rated since 2000 and listed in Super Lawyers since 2008.