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Disability Benefits – Overpayment

By: Derek Hawkins//February 6, 2017//

Disability Benefits – Overpayment

By: Derek Hawkins//February 6, 2017//

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7th Circuit Court of Appeals

Case Name: John R. Casey v. Nancy A. Berryhill

Case No.: 15-2810

Officials: BAUER, ROVNER, and HAMILTON, Circuit Judges.

Focus: Disability Benefits – Overpayment

In 2009, the Social Security Administration notified Plaintiff John Casey that he needed to repay about $334,000 in disability benefits he should not have received. Casey sought a waiver, but an administrative law judge denied his request. Six months later, Casey submitted an untimely request to the Appeals Council seeking review of the ALJ’s decision. Casey argued that he had good cause for his delay. The Appeals Council seemed to agree. On April 12, 2012, the Council extended Casey’s deadline to submit evi‐ dence or a statement in support of his waiver claim. But on July 17, 2013, the Appeals Council reversed course, informing Casey that it had dismissed his request for review because there was “no good cause to extend the time for filing.” Casey then sued the Acting Commissioner of Social Security in dis‐ trict court. The Commissioner moved to dismiss, and a mag‐ istrate judge recommended granting the Commissioner’s mo‐ tion. The district judge adopted the magistrate’s recommen‐ dation and dismissed the case. The district court erred. The action by the Appeals Council in first granting and then retroactively denying Casey’s good cause request was arbitrary, having the effect of an unfair bu‐ reaucratic bait‐and‐switch. To be sure, the Council had discre‐ tion to determine initially whether Casey offered good cause for his late administrative appeal. See 20 C.F.R. §§ 404.968(b), 404.911. But having granted Casey’s request, the Council could not simply change its mind and dismiss Casey’s appeal on the theory that he had not adequately justified his delay, after leading him on for over a year without suggesting he needed to provide more information, an affidavit, or anything else by way of support. We reverse the judgment of the district court and remand with instructions to remand this matter to the agency for administrative proceedings consistent with this opinion.

Reversed and Remanded

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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