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RULE v. SAUL (2021)

United States Court of Appeals, Ninth Circuit.2021-06-30No. No. 20-35618

Summary

Holding. The court reversed the district court's affirmance of the denial of benefits and remanded to the Social Security Administration for further proceedings, instructing reconsideration of whether Rule's impairments meet a listing and reassessment of her mental residual functional capacity.

Stephanie Rule appealed the denial of her disability and supplemental security income benefits. The court found that the administrative law judge improperly rejected medical opinions from four healthcare providers—two examining physicians, one non-examining physician, and a nurse practitioner—without offering legally sufficient reasons. The ALJ's stated reasons for discounting these opinions, such as reliance on a check-box form, inconsistency with the medical record, or consideration of the patient's self-reported symptoms, either contradicted the record itself or were not valid grounds for rejection under Social Security regulations.

The court determined that the ALJ's errors in rejecting the medical evidence were prejudicial to Rule's case because they affected both the step-three analysis of whether her impairments met a listed condition and the step-five determination of her residual functional capacity. Although the rejected opinions contained some ambiguities that prevented the court from making a final determination on disability, the record suggested that Rule's anxiety and depression may meet the required listings.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether substantial evidence supported rejection of examining physician's opinion based on inconsistency with mental-status exam findings
  • Whether an ALJ may reject a medical opinion based on the purpose for which it was obtained or its reliance on patient self-report
  • Whether use of a check-box form constitutes sufficient reason to discount a physician's opinion
  • Whether treatment notes showing some appointments attended and cooperative presentation contradicted an opinion of severe functional limitations

Procedural posture

Rule appealed from the district court's order affirming the ALJ's denial of her Social Security disability benefits.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

MEMORANDUM *

Stephanie Rule appeals from the district courts order affirming a decision of an administrative law judge (ALJ) denying disability insurance benefits and supplemental security income under Titles II and XVI of the Social Security Act. We have jurisdiction under 28 U.S.C. § 1291. We reverse and remand to the district court with instructions to remand to the Social Security Administration for further proceedings.

1. Substantial evidence does not support the ALJs decision to discount Dr. N.K. Markss opinion. See Smolen v. Chater, 80 F.3d 1273, 1279 (9th Cir. 1996). Because Dr. Marks was an examining physician whose opinion was controverted only by the opinions of non-examining physicians, the ALJ had to provide specific and legitimate reasons to reject it. Lester v. Chater, 81 F.3d 821, 830–31 (9th Cir. 1995). The ALJ did not do so.

The ALJ discounted Dr. Markss opinion on the ground that it was inconsistent with the results of Rules mental-status exam. But Dr. Markss findings that Rules thought processes, memory, and concentration were within normal limits did not contradict her conclusions that Rule was markedly impaired in her ability to maintain a schedule, communicate with others in a work setting, or plan independently. Instead, Dr. Markss conclusions were consistent with her findings that Rule was depressed, anxious, and distractible. The inconsistency that the ALJ identified is not supported by the record. See Orn v. Astrue, 495 F.3d 625, 635 (9th Cir. 2007).

The ALJ also discounted Dr. Markss opinion on the basis that it was “rendered for DHS purposes” and thus likely to be “substantially based on [Rules] self-reported symptoms and complaints.” But an ALJ cannot reject an opinion based on the purpose for which it was obtained. Lester, 81 F.3d at 832. And psychiatric opinions “will always depend in part on the patients self-report.” Buck v. Berryhill, 869 F.3d 1040, 1049 (9th Cir. 2017).

The ALJs final reason for discounting Dr. Markss opinion was that it was on a check-box form. But Dr. Markss check-box markings were based on her review of Rules medical history and her own detailed findings made during Rules mental-status exam. See Burrell v. Colvin, 775 F.3d 1133, 1140 (9th Cir. 2014). Dr. Markss use of a check-box form alone therefore was not a specific and legitimate reason for the ALJ to reject her opinion. Trevizo v. Berryhill, 871 F.3d 664, 677 n.4 (9th Cir. 2017).

Accordingly, the ALJ erred in rejecting Dr. Markss opinion. He also erred in rejecting Dr. Rachel Carstenss opinion for the same invalid reasons.

2. Substantial evidence also does not support the ALJs decision to discount Dr. Manuel Gomess opinion. The ALJ discounted Dr. Gomess opinion because it was inconsistent with Dr. Laces opinion, and because Dr. Lace had reviewed “the entire longitudinal record,” but Dr. Gomes had not. While better familiarity with the record can be a specific and legitimate reason to credit one physicians opinion over anothers, see 20 C.F.R. § 416.927(c)(6), Dr. Laces opinion was contradicted by the record. Dr. Lace testified that Rule had not been hospitalized after February 2015, but the record shows that Rule has been hospitalized multiple times since that date. Dr. Laces testimony was therefore not a basis on which the ALJ could discount Dr. Gomess opinion.

Also contrary to the ALJs findings, Dr. Gomess opinion was consistent with his own mental-status exam and Dr. Markss mental-status exam. Both exams noted that Rule was anxious, depressed, and showed signs of stress. Dr. Gomess opinion was not inconsistent with his observations that Rule was cooperative, had adequate hygiene, and could maintain proper eye contact. See Revels v. Berryhill, 874 F.3d 648, 663 (9th Cir. 2017). Nor was it inconsistent with Rules “ability to attend to various responsibilities across the longitudinal period” when the record showed that Rule in fact struggled to fulfill her responsibilities, which led to, among other things, her giving up her foster children. And the ALJ could not reject Dr. Gomess opinion for relying in part on Rules subjective complaints when the opinion was a psychiatric evaluation that also relied on Rules medical records and the results of a mental-status exam. See Ryan v. Commissioner of Soc. Sec., 528 F.3d 1194, 1199–1200 (9th Cir. 2008).

Because none of the reasons the ALJ gave for rejecting Dr. Gomess opinion was supported by substantial evidence, the ALJ erred in discounting his opinion.

3. Substantial evidence does not support the ALJs decision to discount nurse practitioner Daniel Pittss opinion. Because Pittss opinion qualified as an “other source” opinion, the ALJ needed to provide “germane reasons” to discount it. Popa v. Berryhill, 872 F.3d 901, 907 (9th Cir. 2017). The ALJ found Pittss treatment notes showing that Rule arrived on time and presented as calm and cooperative at many of her appointments inconsistent with his conclusion that Rule was severely limited in her ability to complete a workweek without interruptions from her psychological disorder. But these same treatment notes show that Rule failed to attend many of her scheduled appointments and, other times, arrived anxious and upset. When Pittss treatment notes are “read in full and in context,” they are consistent with his opinion. Holohan v. Massanari, 246 F.3d 1195, 1205 (9th Cir. 2001); see also Garrison v. Colvin, 759 F.3d 995, 1013–14 (9th Cir. 2014).

Pittss opinion likewise was consistent with Dr. Gomess and Dr. Markss mental-status exams, which also noted that Rule was anxious and depressed. And Pittss opinion that Rule would have difficulty maintaining attendance at work and staying on task is consistent with the record evidence that Rule failed to attend to many of her responsibilities, including regularly attending therapy with Pitts and his colleagues.

Because none of the ALJs reasons for discounting Pittss opinion was germane, the ALJ erred. See Popa, 872 F.3d at 907–08.

4. The ALJs decision to discount Dr. Markss, Dr. Carstenss, Dr. Gomess and nurse practitioner Pittss medical opinions affected the ALJs analysis at step three, in deciding whether Rules impairments meet or equal one of the listed impairments, see C.F.R. Pt. 404 Subpt. P, App. 1, and at step five, in determining Rules mental residual functional capacity. The ALJs errors were therefore prejudicial. See Brown-Hunter v. Colvin, 806 F.3d 487, 494 (9th Cir. 2015). While the improperly discounted opinions may suggest that Rules anxiety and depression meet the listing requirements at step three, there are some ambiguities and inconsistencies in those opinions. We therefore remand to the district court with instructions to remand to the agency for further proceedings. See Dominguez v. Colvin, 808 F.3d 403, 408–10 (9th Cir. 2015).

On remand, the agency should reconsider at step three whether any of Rules impairments equals a listing and, if necessary, reassess at step five whether Rules mental impairments permit her to perform a job with significant numbers in the national economy. We do not consider whether the ALJ erred in discounting Rules symptom testimony.

REVERSED and REMANDED.