United States District Court, W.D. Washington
ANTHONY J. PAULEY, Plaintiff,
NANCY A. BERRYHILL, Acting Commissioner of Social Security, Defendant.
P. DONOHUE, CHIEF UNITED STATES MAGISTRATE JUDGE.
Anthony J. Pauley appeals the final decision of the
Commissioner of the Social Security Administration
(“Commissioner”) that denied his applications for
Disability Insurance Benefits (“DIB”) and
Supplemental Security Income (“SSI”) under Titles
II and XVI of the Social Security Act, 42 U.S.C. §§
401-33 and 1381-83f, after a hearing before an administrative
law judge (“ALJ”). For the reasons set forth
below, the Court REVERSES the Commissioner's decision and
REMANDS for further administrative proceedings.
FACTS AND PROCEDURAL HISTORY
is a 47-year-old man with a GED and one year of college
education. Administrative Record (“AR”) at 40,
64, 629. His past work experience includes employment as a
casino dealer, boat laminator, and grocery store stocker. AR
at 245, 269. Plaintiff was last gainfully employed in
February 2010. AR at 245.
September 25, 2013, Plaintiff protectively applied for SSI
and DIB, alleging an onset date of June 1, 2012. AR at 91-92,
216-28. Plaintiff asserts that he is disabled due to sleep
apnea, depression, coronary artery disease, bipolar disorder,
post-traumatic stress disorder, attention deficit
hyperactivity disorder, chronic rebound cluster headaches,
hypertension, and an arachnoid cyst. AR at 243.
Commissioner denied Plaintiff's applications initially
and on reconsideration. AR at 156-59, 164-73. Plaintiff
requested a hearing, which took place on February 10, 2015.
AR at 34-90. On July 29, 2015, the ALJ issued a decision
finding Plaintiff not disabled and denied benefits based on
his finding that Plaintiff could perform a specific job
existing in significant numbers in the national economy. AR
at 12-26. Plaintiff's administrative appeal of the
ALJ's decision was denied by the Appeals Council, AR at
1-6, making the ALJ's ruling the “final
decision” of the Commissioner as that term is defined
by 42 U.S.C. § 405(g). On January 11, 2017, Plaintiff
timely filed the present action challenging the
Commissioner's decision. Dkt. 1, 3.
to review the Commissioner's decision exists pursuant to
42 U.S.C. §§ 405(g) and 1383(c)(3).
STANDARD OF REVIEW
to 42 U.S.C. § 405(g), this Court may set aside the
Commissioner's denial of social security benefits when
the ALJ's findings are based on legal error or not
supported by substantial evidence in the record as a whole.
Bayliss v. Barnhart, 427 F.3d 1211, 1214 (9th Cir.
2005). “Substantial evidence” is more than a
scintilla, less than a preponderance, and is such relevant
evidence as a reasonable mind might accept as adequate to
support a conclusion. Richardson v. Perales, 402
U.S. 389, 401 (1971); Magallanes v. Bowen, 881 F.2d
747, 750 (9th Cir. 1989). The ALJ is responsible for
determining credibility, resolving conflicts in medical
testimony, and resolving any other ambiguities that might
exist. Andrews v. Shalala, 53 F.3d 1035, 1039 (9th
Cir. 1995). While the Court is required to examine the record
as a whole, it may neither reweigh the evidence nor
substitute its judgment for that of the Commissioner.
Thomas v. Barnhart, 278 F.3d 947, 954 (9th Cir.
2002). When the evidence is susceptible to more than one
rational interpretation, it is the Commissioner's
conclusion that must be upheld. Id.
Court may direct an award of benefits where “the record
has been fully developed and further administrative
proceedings would serve no useful purpose.”
McCartey v. Massanari, 298 F.3d 1072, 1076 (9th Cir.
2002) (citing Smolen v. Chater, 80 F.3d 1273, 1292
(9th Cir. 1996)). The Court may find that this occurs when:
(1) the ALJ has failed to provide legally sufficient reasons
for rejecting the claimant's evidence; (2) there are no
outstanding issues that must be resolved before a
determination of disability can be made; and (3) it is clear
from the record that the ALJ would be required to find the
claimant disabled if he considered the claimant's
Id. at 1076-77; see also Harman v. Apfel,
211 F.3d 1172, 1178 (9th Cir. 2000) (noting that erroneously
rejected evidence may be credited when all three elements are
claimant, Mr. Pauley bears the burden of proving that he is
disabled within the meaning of the Social Security Act (the
“Act”). Meanel v. Apfel, 172 F.3d 1111,
1113 (9th Cir. 1999) (internal citations omitted). The Act
defines disability as the “inability to engage in any
substantial gainful activity” due to a physical or
mental impairment which has lasted, or is expected to last,
for a continuous period of not less than twelve months. 42
U.S.C. §§ 423(d)(1)(A), 1382c(a)(3)(A). A claimant
is disabled under the Act only if his impairments are of such
severity that he is unable to do his previous work, and
cannot, considering his age, education, and work experience,
engage in any other substantial gainful activity existing in
the national economy. 42 U.S.C. §§ 423(d)(2)(A);
see also Tackett v. Apfel, 180 F.3d 1094, 1098-99
(9th Cir. 1999).
Commissioner has established a five step sequential
evaluation process for determining whether a claimant is
disabled within the meaning of the Act. See 20
C.F.R. §§ 404.1520, 416.920. The claimant bears the
burden of proof during steps one through four. At step five,
the burden shifts to the Commissioner. Id. If a
claimant is found to be disabled at any step in the sequence,
the inquiry ends without the need to consider subsequent
steps. Step one asks whether the claimant is presently
engaged in “substantial gainful activity.” 20
C.F.R. §§ 404.1520(b), 416.920(b). If he is,
disability benefits are denied. If he is not, the
Commissioner proceeds to step two. At step two, the claimant
must establish that he has one or more medically severe
impairments, or combination of impairments, that limit his
physical or mental ability to do basic work activities. If
the claimant does not have such impairments, he is not
disabled. 20 C.F.R. §§ 404.1520(c), 416.920(c). If
the claimant does have a severe impairment, the Commissioner
moves to step three to ...