Saurino v. Weinberger, Civ. A. No. 74-140.

• Decision Date: 03 June 1975
• Docket Number: Civ. A. No. 74-140.
• Citation: 396 F. Supp. 992
• Parties: Joseph A. SAURINO and Albert Silva, Individually and on behalf of all others similarly situated, Plaintiffs, v. Casper WEINBERGER, Individually and as Secretary of the United States Department of Health, Education and Welfare, Defendant.
• Court: U.S. District Court — District of Rhode Island

396 F. Supp. 992

Joseph A. SAURINO and Albert Silva, Individually and on behalf of all others similarly situated, Plaintiffs, v. Casper WEINBERGER, Individually and as Secretary of the United States Department of Health, Education and Welfare, Defendant.

Civ. A. No. 74-140.

United States District Court, D. Rhode Island.

June 3, 1975.

John M. Roney, Kenneth F. MacIver, Rhode Island Legal Services, Providence, R. I., for plaintiffs.

Lincoln C. Almond, U. S. Atty., Constance L. Messore, Asst. U. S. Atty., Providence, R. I., for defendant.

OPINION

PETTINE, Chief Judge.

This is a class action¹ for declaratory and injunctive relief to require the defendant, Casper Weinberger, Secretary of Health, Education and Welfare, to afford plaintiffs Joseph Saurino, Albert Silva and other members of their class their alleged right to pretermination hearings under Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 1011, 25 L.Ed.2d 287 (1970) before terminating their Supplementary Security Income (hereinafter referred to as SSI) benefits. 42 U.S.C. § 1381 et seq.

The defendant argues that plaintiffs have no right to a pretermination hearing because they were never certified as eligible for benefits under the SSI program. Defendant claims that SSI is a totally new federal program and that although plaintiffs were eligible under an earlier state-federal program of disability assistance, their eligibility terminated on January 1, 1974, the effective date for the SSI program and the date upon which the state-federal program was repealed.

This case is before the Court on cross motions for summary judgment and has been submitted for decision on a Stipulation of Facts.² A previous order of the Court establishing a class-wide Temporary Restraining Order remains in effect.³

FACTS

Prior to January 1, 1974, persons in Rhode Island, who were aged, blind or permanently and totally disabled, and whose income and resources were insufficient "to maintain a reasonable standard of health and well-being," R.I.G.L. §§ 40-6-5, 40-6-6 (Supp.1974), qualified for a program entitled "Aid to the Aged, Blind and Disabled" (hereinafter referred to as AABD). This was a joint federal-state program of categorical assistance. See 42 U.S.C. § 1351 et seq. However, under P.L. 92-603, § 303, the federal authorization for the joint federal-state program, 42 U.S.C. § 1351 et seq., was repealed as of January 1, 1974, and the SSI program was enacted as a replacement effective January 1, 1974, 42 U.S.C. § 1381 et seq. The SSI program provided that persons who were aged, blind or disabled under the definition in the statute (P.L. 92-603, § 1614; 42 U.S.C. § 1382c), and who met the income limitation provisions (P.L. 92-603, §§ 1611-1613; 42 U.S.C. §§ 1382-1382b), were eligible for benefits. The functions of the federally supported and state administered program, AABD (42 U.S.C. § 1351 et seq.), were transferred to the SSI program which was financed, administered and operated by the Social Security Administration of Health, Education and Welfare (H.E.W.) 42 U.S.C. § 1381 et seq. In addition under the new legislation, the state retained the right to offer higher benefits to its citizens by a written agreement executed between Rhode Island and the Secretary of H.E.W. On November 30, 1973 the federal government would also administer these state supplementary payments. P.L. 92-603, § 1616; 42 U.S.C. § 1382e. See, P.L. 93-66, § 212. See, Stipulation of Facts, Exhibit D.

Subsequently, a number of amendments to P.L. 92-603 were passed by Congress. Their sequence and content offer some assistance in the determination of how Congress intended persons in plaintiffs' class to be treated. In July of 1973, the Congress amended the provisions of the SSI program (P.L. 92-603) and provided that an individual would qualify for benefits under SSI,

". . . if . . . for the month of December 1973 such individual was a recipient of aid or assistance under a State plan approved under title I, X, XIV, or XVI of the Social Security Act, . . ." P.L. 93-66, § 211(b)

Thus, under this amendment any person who in December 1973 was receiving AABD benefits (which was a state plan approved under title XIV of the Social Security Act, 42 U.S.C. § 1351 et seq.) would be automatically eligible for SSI benefits in January of 1974. This amendment providing for automatic eligibility was called the "grandfather" provision.

On December 30, 1973, two days before the SSI program was to go into effect, Congress amended the "grandfather" provision by passing P.L. 93-233. P.L. 93-233, § 9 provided that:

"an individual shall . . . be considered to be disabled for the purposes of this title if he is permanently and totally disabled as defined under a State plan approved under title XIV or XVI of this chapter as in effect for October 1972 and received aid under such plan (on the basis of disability) for December 1973 (and for at least one month prior to July 1973), so long as he is continuously disabled as so defined." (emphasis added)

Thus, in order to be "grandfathered" into the SSI program an individual had to have received AABD benefits "at least one month prior to July 1973;" otherwise, the individual would have to establish his or her eligibility for SSI by meeting the definitions in 42 U.S.C. § 1382c (P.L. 92-603, § 1614).

As a result of this amendment, those persons who received AABD aid one month prior to July, 1973, would be automatically eligible for SSI, but those who qualified for AABD on or after July, 1973 were excluded from automatic benefits. The plaintiffs⁴ and members of their class were those who fell into the latter category. They received AABD benefits during December 1973 but had not qualified for benefits prior to July 1973.

To meet the needs of those in plaintiffs' class, the Secretary of H.E.W. invoked authority provided to him in 42 U.S.C. § 1383(a)(4)(B) (P.L. 92-603 § 1631(a)(4)(B)) whereby he classified those persons in plaintiffs' class as "presumptively disabled" and continued payments to them pending a redetermination of their eligibility to receive such benefits on a permanent basis. However, the authority of the Secretary to pay such benefits to "presumptively disabled" persons was limited by the statute to three months. 42 U.S.C. § 1383(a)(4)(B); P.L. 92-603 § 1631(a) (4)(B). Congress then passed a special exemption from the three month limitation to those persons deemed "presumptively disabled" because they had received disability aid under AABD before December 1973 but after July 1, 1973. Under the exemption the Secretary was empowered to pay benefits for any month in the calendar year 1974 to such persons until a determination was made on whether those persons individually qualified for aid under the SSI guidelines. P.L. 93-256 (March 28, 1974).

In December 1973, notices of eligibility for SSI were issued by the Social Security Administration (hereinafter referred to as SSA) to all Rhode Island residents on the AABD rolls at that time. This notice stated:

"This is a notice that you are eligible (or the individual named above, on whose behalf you applied, is eligible) to receive the Supplemental Security Income payment shown above, as provided in Title XVI of the Social Security Act.

You do not need to file an application to get supplemental security income. A gold-colored U. S. Government check for the amount shown above will come to you automatically about the first day of each month. This check will take the place of the checks you now get from your state or local public assistance office."

Stipulation of Facts Exhibit B.

This notice made no distinction between those completely eligible and those "presumptively disabled." Subsequently, in January 1974, plaintiffs Saurino and Silva were converted from AABD to SSI. Plaintiff Saurino received a monthly benefit check for $269.80⁵ and plaintiff Silva and his wife, $276.00.

On March 21, 1974 each of the named plaintiffs was informed that he was ineligible to receive further SSI payments.⁶ Neither plaintiff had received any prior notice that his SSI eligibility was being examined nor was he given an opportunity to present any evidence of his disability nor was he given a hearing prior to the termination of his benefits.

Around March 27, 1974, plaintiff Saurino requested reconsideration of his case.⁷ He was informed that an earlier decision of the SSA denying him eligibility for disability benefits under the Old Age, Survivors and Disability Insurance Program (hereinafter referred to as OASDI) and the denial's reaffirmation on reconsideration were binding on him. He was told that no reconsideration of his SSI eligibility would be held until after the hearing to review the denial of OASDI benefits.⁸

Plaintiff Silva also applied to the SSA for a reconsideration of his eligibility for SSI benefits. He was examined by a doctor selected by the Rhode Island Disability Determination Unit at government expense.⁹ The decision of ineligibility was affirmed on May 30, 1974, and failed to inform plaintiff Silva of the specific medical facts upon which the determination was based.¹⁰ Around June 20, 1974, plaintiff Silva requested a hearing on the question of his ineligibility before an administrative law judge.

Some of the members of plaintiffs' class may have received the notice set forth in the margin.¹¹ However, no evidence has been presented as to when this notice was mailed or to whom. At least 56 of the class of approximately 516 "presumptively disabled" Rhode Island citizens have been found ineligible for SSI benefits in a manner similar to that of plaintiffs Saurino and Silva.

Procedural Due Process

In the case at bar, the plaintiffs contend that they have a statutory entitlement in continued SSI benefits that cannot be terminated without procedural due process protections. Defendant, on the other hand, argues that plaintiffs have no property interest in SSI benefits inasmuch as they have never shown their initial...