Evans v. Secretary of Health, Education & Welfare
Evans v. Secretary of Health, Education & Welfare
Opinion of the Court
MEMORANDUM OPINION
This action was brought by Louis D. Evans on behalf of Genevieve A. Young under section 205(g) of the Social Security Act, 42 U.S.C. § 405(g). Plainiff’s complaint, seeking judicial review of a final decision of the Secretary of Health, Education and Welfare disallowing plaintiff’s claim for benefits, properly invokes the jurisdiction of this Court. Brinker v. Weinberger, 522 F.2d 13 (8th Cir. 1975). Plaintiff Evans initially filed with the Secretary on January 8, 1973 a claim for Child’s Insurance Benefits under 42 U.S.C. § 402(d)(1) on behalf of Genevieve A. Young, his minor step-granddaughter. The claim states that Genevieve is entitled to benefits because her mother, Mona Young, Louis’ stepdaughter, died on October 15, 1964, and her father, Walter H. Young, should be presumed dead since he has been absent and unheard of for more than seven years. Plaintiff has exhausted administrative remedies including a hearing and denial of claim before an administrative law judge and an adverse decision from the Appeals Council, thus, the decision of the Secretary denying benefits to plaintiff is administratively final. Celebrezze v. Bolas, 316 F.2d 498 (8th Cir. 1963). Plaintiff and defendant have cross-moved this Court for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. These pending motions present this Court with two issues for determination: (1) Did the conclusion reached by the A.L.J. have a reasonable basis in the law, and (2) Is there substantial evidence in the record as a whole to support the Secretary’s conclusion that Genevieve’s father, Walter H. Young, could not be presumed dead under 20 C.F.R. § 404.705.
SCOPE OF JUDICIAL REVIEW
The fact findings made by the A.L.J. must be sustained by this Court if they are supported by substantial evidence based on the record as a whole. Social Security Act § 205(g), 42 U.S.C. § 405(g); Brasher v. Celebrezze, 304 F.2d 413, 414 (8th Cir. 1965). Substantial evidence means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Yawitz v. Weinberger, 498 F.2d 956, 957 (8th Cir. 1974). In making this inquiry, this Court should neither consider a claim de novo nor abdicate its duty to scrutinize the record as a whole to determine whether the conclusion reached has a reasonable basis in law. Yawitz v. Weinberger, supra; Celebrezze v. Bolas, 316 F.2d 498, 501 (8th Cir. 1963).
FACTS
The administrative record, which includes the March 20, 1974 hearing transcript and various exhibits, contains the following established undisputed facts relied upon by the Secretary in deciding this case (Tr. 7). Genevieve A. Young was born on June 24, 1958 in Winner, South Dakota to Walter H. Young and
APPLICATION OF LAW
Plaintiff maintains that the A.L.J. did not apply the law correctly to the facts in this case. Construing and applying 20 C.F.R. § 404.705, the A.L.J. stated plaintiff’s burden of proof as follows:
The claimant, by his counsel, alleges that there is a presumption that Wal*318 ter Young is dead by reason of his absence and being unheard of for seven years. The burden of proof in this case is on claimant. In order to meet this burden, claimant must show by clear and convincing evidence that Walter Young’s absence from his residence from January 8, 1966 until the claimants application on behalf of Genevieve seven years later, was unexplained that he had been unheard of during that period and there was no evidence to the contrary. (Tr. 8). (Emphasis added.)
Plaintiff attacks this application of § 404.705 on two grounds. First, plaintiff contends that the “clear and convincing” measure of proof is not correct. This Court agrees. 20 C.F.R. § 404.705 does not change the established rule and place upon the claimant a “clear and convincing” standard of proof. On the contrary, the A.L.J. may receive and consider hearsay testimony, and in a proper case such testimony may even amount to substantial evidence. Richardson v. Perales, 402 U.S. 389, 91 S.Ct. 1420, 28 L.Ed.2d 842 (1971); Miller v. Richardson, 321 F.Supp. 157 (D.C.Pa. 1970), aff’d 457 F.2d 378 (3rd Cir. 1972); 6 A.L.R.Fed. 76-133. Secondly, plaintiff contends that the A.L.J., in preventing the burden of going forward with the evidence from shifting to the Secretary upon proof that Walter H. Young had been unexplainedly absent and unheard of for seven years, failed to give plaintiff the benefit of the presumption granted in 20 C.F.R. § 404.705. Plaintiff charges that the A.L.J.’s ruling, “that only when no evidence to the contrary” exists may a claimant be deemed to have met the burden of proof and therefore granted the benefit of the § 404.705 presumption, places an impossible task on a claimant who is in need of and entitled to Social Security benefits. The Secretary contends that a strict standard of proof is necessary to prevent an award of benefits for desertion of family obligations rather than for death.
What is really at issue here is a fact of death which due to circumstances is not provable with the degree of certainty that other facts are; otherwise there would be no need for the Secretary to provide for a presumption in § 404.-705. This presumption arises out of a perceived need for providing a means for settling the affairs of individuals with some finality. When a length of time elapses which the law regards as reasonable, and seven years is surely that in this age of extensive record keeping and rapid communication, it is a recognized principle that from certain circumstances a presumption may be raised to take the place of a positively known fact. Such a presumption is based upon common human experience that people do not ordinarily disappear for no apparent reason and sever long-established patterns of living and all contacts with family and friends. 20 C.F.R. § 404.705 provides in pertinent part:
Whenever it is necessary to determine the death of an individual in order to determine the right of another to a monthly benefit . . . under section 202 of the act [42 U.S.C.A. § 402] and such individual has been unexplainedly absent from his residence and unheard of for a period of seven years, the Administration, upon satisfactory establishment of such facts and in the absence of any evidence to the contrary, will presume that such individual has died.
Although interpretation of §■ 404.705 is apparently an issue of first impression in this Circuit, other circuits provide guidance to its proper application.
In Aubrey v. Richardson, 462 F.2d 782, 784 (3rd Cir. 1972), the Court was presented with a ruling of the Secretary that if he believes that there is a cogent explanation for disappearance consistent with continued life, he can properly refuse to apply the presumption. Thus, in the Secretary’s view in that case, as in the present case, no affirmative evidence that the insured is alive is necessary to defeat the § 404.705 presumption. The Court disagreed and stated:
The Appeals Council’s rationale virtually creates a presumption of life rath*319 er than death. There is nothing in the regulation which requires the claimant to refute every reasonable theory or explanation which may be potentially present or which the Secretary may suggest. As the Ninth Circuit has noted, such an interpretation would “place an impossible burden of showing a negative upon an applicant . ” Secretary of Health, Education and Welfare v. Meza, 368 F.2d 389, 392-393 (9th Cir. 1966). Thus, the Meza court reasoned that “the most that the applicant can be expected to do is to show . . . that the applicant has no explanation.” The Court went on to fashion the following rule: “When the facts show that a person has been absent from his residence and unheard of for a period of seven years, a presumption arises that he is dead.” 368 F.2d at 392. See also Gardner v. Wilcox, 370 F.2d 492, 494 (9th Cir. 1966); Miller v. Richardson, 321 F.Supp. 157, 159 (W.D.Pa. 1970). 457 F.2d 378 (3rd Cir. 1972).
Other courts have agreed with the Meza rule. See Blew v. Richardson, 484 F.2d 889 (7th Cir. 1973); Christen v. Secretary of Health, Education and Welfare, 439 F.2d 715 (9th Cir. 1971); Miller v. Richardson, 457 F.2d 378 (3rd Cir. 1972); See also 1 A.L.R.Fed. 753-762.
This Court is persuaded to follow the rule adopted by a majority of the courts that have passed on the issue. It is undisputed that plaintiffs established facts at the March 20, 1974 hearing which show that Walter H. Young had been absent from his residence and unheard of for a period of ten years. Thus, the A.L.J. committed error in refusing to allow a § 404.705 presumption of death to arise.
The presumption, of course, is rebut-table. As the Court stated in Gardner v. Wilcox, 370 F.2d 492 (9th Cir. 1966), once the presumption is established the burden of explanation shifts to the Secretary, and the presumption can be dissipated by proof of facts that rationally explain the the disappearance. 370 F.2d at 494. cf. Miller v. Richardson, 457 F.2d 378 (3rd Cir. 1972). However, as the Court stated in Aubrey v. Richardson, 462 F.2d 782 (3rd Cir. 1972):
This standard clearly requires more from the Secretary than mere conjecture as to possible explanations for the wage earner’s disappearance. Meza, supra, 368 F.2d at 393. When the Secretary chooses to infer from a mass of conflicting facts surrounding an insured’s disappearance an explanation therefor, he must support that conclusion “by proof of facts” which do — not merely may — rationally explain the anomaly of the disappearance in a manner consistent with continued life.” 462 F.2d at 785. (Emphasis added.)
Then, as the Court stated in Gardner v. Wilcox, 370 F.2d 492 (9th Cir. 1966):
Although the Secretary has come forward with an explanation it still remains for the hearing examiner to choose between the alternative probabilities of life or death in the light of all the known facts. The balancing of probabilities and likelihoods is his essential fact-finding function. 370 F.2d at 494.
At this point in the Court’s inquiry the related questions remaining are (1) whether on the record as a whole the Secretary by proof of facts rationally explained Walter H. Young’s disappearance in a manner consistent with continued life and (2) whether the conclusion of the A.L.J. that Walter H. young is alive is supported by substantial evidence.
REVIEW OF THE RECORD
Upon careful review of the entire record in this case it is clear that the Secretary’s conclusion is not supported by substantial evidence. The A.L.J. stated in his written decision that he essentially relied upon four facts in reaching his conclusion. These facts, however, simply do not lead rationally to the conclusion of continued life and therefore do not overcome the § 404.705 presumption of death. The first fact relied upon by the A.L.J. was that Walter had only visited his family once during the separa
If . reliance has been placed upon one portion of the record to the disregard of overwhelming evidence to the contrary, the courts are . bound to decide against the Secretary. 498 F.2d at 960.
The second fact relied upon was that Walter was not living with his family in 1964 but was working as a traveling magazine salesman in Pennsylvania. The A.L.J. stated:
It is possible to accept as a known fact that employment in this type of work entails constant moving from town to town. Apparently, Walter Young had established a pattern or life-style not consistent with the assumption of continued family life and this life style is evidence of an explanation for his absence or failure to contact his daughter (Tr. 9). (Emphasis added).
This finding is patently erroneous. As discussed above, the facts relied upon must explain the disappearance in a manner consistent with continued life, not inconsistent with continued family life. Here, however, there are absolutely no facts on the record from which the A.L.J. could have inferred that Walter’s job entailed constant moving from town to town, and even if that fact were in evidence, it is pure conjecture to generally assume that a traveling salesman’s employment life-style is not consistent with continued family life. What is apparent or possible is too frail a reed to base an ultimate conclusion upon. Aubrey, supra at 785. The third fact stated by the A.L.J. in support of his conclusion is that Walter “had financial difficulties and would not be able to carry the burden of supporting a daughter” (Tr. 9). The evidence of Walter’s financial condition, standing alone, does not automatically lead to the conclusion that he abandoned his daughter Genevieve. Again the A.L.J. has ignored important evidence: Walter was employed, sent money and clothes to his family, had an automobile, was planning to send money home to put in savings so that Mona and Genevieve could soon come to live with him, and had enough money to travel round trip from Pennsylvania to visit his family. The last fact relied upon was the evidence that about a year after Walter’s mysterious disappearance the Internal Revenue Service sent an agent to the Evans’ house. From that fact the A.L.J. concluded that such I.R.S. inquiry about Walter “would be reason for him not to divulge his whereabouts” (Tr. 9). Since there is absolutely no evidence that Walter knew that the I.R.S. was looking for him, the conclusion of flight to avoid the I.R.S. does not rationally follow. In fact if the I.R.S. visit was prompted by Walter’s failure to file for 1965, without evidence that he had failed to file prior to his disappearance in 1964, it could be rationally argued that his 1965 failure to file, when coupled with the inability of the I.R.S. to locate any information on him for the past eleven years, amounts to evidence of his death.
CONCLUSION
In the judgment of this Court, the Secretary’s conclusion that Walter H. Young is alive is not supported “ ‘by proof of facts’ which do — not merely may — ‘rationally explain the anomaly of
Since the facts in this case are undisputed, this Court finds that there exists no genuine issue as to any material fact and that the plaintiff is entitled to summary judgment as a matter of law. Plaintiff’s motion for summary judgment is therefore granted and defendant’s motion for summary judgment is denied. On the record taken as a whole it is the judgment of this Court that Genevieve A. Young is entitled to receive Social Security benefits under 42 U.S.C. § 402(d)(1) as claimed.
The above Memorandum Opinion constitutes this Court’s findings of fact and conclusions of law under Rule 52 of the Federal Rules of Civil Procedure.
Reference
- Full Case Name
- Louis D. EVANS, o/b/o Genevieve A. Young v. SECRETARY OF HEALTH, EDUCATION AND WELFARE
- Cited By
- 1 case
- Status
- Published