Baeder v. Heckler

• Decision Date: 24 July 1985
• Docket Number: No. 84-5663,84-5663
• Citation: 768 F.2d 547
• Parties: , Unempl.Ins.Rep. CCH 16,225 Paul H. BAEDER v. Margaret HECKLER, Secretary of Health and Human Services of the United States, Appellant.
• Court: U.S. Court of Appeals — Third Circuit

Page 547

768 F.2d 547

10 Soc.Sec.Rep.Ser. 292, Unempl.Ins.Rep. CCH 16,225

Paul H. BAEDER v. Margaret HECKLER, Secretary of Health and Human Services of the United States, Appellant.

No. 84-5663.

United States Court of Appeals Third Circuit.

Argued June 20, 1985.

Decided July 24, 1985.

Peter R. Ginsberg (Argued), W. Hunt Dumont, U.S. Atty., Edward G. Spell, Newark, N.J., for appellant.

James Katz (Argued), Tomar, Parks, Seliger, Simonoff & Adourian, Haddonfield, N.J., for appellee.

Frederick M. Stanczak, Peter B. Macky, Williamsport, Pa., James Lafferty, Jonathan M. Stein, Philadelphia, Pa., amici curiae [certified class of Soc. Sec. applicants in Bailey, et al. vs. Heckler].

Before ADAMS, HUNTER and MANSMANN, Circuit Judges.

OPINION OF THE COURT

JAMES HUNTER, III, Circuit Judge:

Appellee, Paul Baeder brought this action in the United States District Court for the District of New Jersey under Sec. 205(g) of the Social Security Act, as amended, 42 U.S.C. Sec. 405(g) (1982), to review a final determination of the Secretary of Health and Human Services, denying his application for disability and disability insurance benefits. Baeder applied for benefits on November 17, 1982. The Secretary denied him benefits both initially and on reconsideration. Baeder requested and was granted a hearing before an Administrative Law Judge ("ALJ"). After a de novo consideration of the case, the ALJ ruled on May 27, 1983, that Baeder was not disabled within the meaning of the Act. The ALJ's ruling became the final decision of the Secretary when the Appeals Council approved it on July 21, 1983. Baeder then commenced the present suit in the district court to review the Secretary's decision finding him not disabled, as well as to determine the validity of the regulation pursuant to which the finding was made. The district court invalidated the regulation and remanded Baeder's case to the Secretary for further proceedings, 592 F.Supp. 1489 (D.C.N.J.1984).

For thirty years, from 1950 through 1980, Baeder worked as a glass bottle machine operator at the Owens-Illinois Glass Company plant. The job required Baeder to lift up to 35 pounds frequently during each work day. The job also required continual bending, reaching and climbing as well as constant standing and walking. Because of developing health problems in the last few years of his employ at Owens-Illinois, Baeder did less strenuous work, such as "spare boy" and janitor. Baeder left the company in 1980, allegedly due to his physical impairments.

The ALJ evaluated Baeder's claim for disability using the five-step process set out in the regulations promulgated by the Secretary to implement the Social Security Act. 20 C.F.R. 404.1520, 404.1521 (1985). The pertinent regulations provide as follows:

Sec. 404.1520

(a) Steps in evaluating disability. We consider all material facts to determine whether you are disabled. If you are doing substantial gainful activity, we will determine that you are not disabled. If you are not doing substantial gainful activity, we will first consider your physical or mental impairment(s). Your impairment must be severe and meet the duration requirement before we can find you to be disabled. We follow a set order to determine whether you are disabled. We review any current work activity, the severity of your impairment(s), your residual functional capacity and your age, education, and work experience. If we can find that you are disabled or not disabled at any point in the review, we do not review further.

(b) If you are working. If you are working and the work you are doing is substantial gainful activity, we will find that you are not disabled regardless of your medical condition or your age, education, and work experience.

(c) You must have a severe impairment. If you do not have any impairment or combination of impairments which significantly limits your physical or mental ability to do basic work activities, we will find that you do not have a severe impairment and are, therefore, not disabled. We will not consider your age, education, and work experience. However, it is possible for you to have a period of disability for a time in the past even though you do not now have a severe impairment.

(d) When your impairment meets or equals a listed impairment in Appendix 1. If you have an impairment which meets the duration requirement and is listed in Appendix 1, or is equal to a listed impairments, we will find you disabled without considering your age, education, and work experience.

(e) Your impairment(s) must prevent you from doing past relevant work. If we cannot make a decision based on your current work activity or on medical facts alone, and you have a severe impairment(s), we then review your residual functional capacity and the physical and mental demands of the work you have done in the past. If you can still do this kind of work, we will find that you are not disabled.

(f) Your impairment(s) must prevent you from doing any other work. (1) If you cannot do any work you have done in the past because you have a severe impairment(s), we will consider your residual functional capacity and your age, education, and past work experience to see if you can do other work. If you cannot, we will find you disabled. (2) If you have only a marginal education, and long work experience (i.e., 35 years or more) where you only did arduous unskilled physical labor, and you can no longer do this kind of work, we use a different rule (see Sec. 404.1562).

Sec. 404.1521 What we mean by an impairment(s) that is not severe.

(a) Non-severe impairment(s). An impairment or combination of impairments is not severe if it does not significantly limit your physical or mental ability to do basic work activities.

(b) Basic work activities. When we talk about basic work activities, we mean the abilities and aptitudes necessary to do most jobs. Examples of these include--

(1) Physical functions such as walking, standing, sitting, lifting, pushing, pulling, reaching, carrying, or handling;

(2) Capacities for seeing, hearing, and speaking;

(3) Understanding, carrying out, and remembering simple instructions;

(4) Use of judgment;

(5) Responding appropriately to supervision, co-workers and usual work situations; and

(6) Dealing with changes in routine work settings.

After a cursory review of the record, the ALJ found that Baeder did not suffer from a "severe impairment," and therefore under Sec. 404.1520(c) deemed Baeder "not disabled" within the meaning of the statute. In accordance with the section, the ALJ did not consider Baeder's age, education or past work experience, but simply concluded that he had residual functional capacity to perform basic work activities at a substantial gainful level.

In the district court, Baeder challenged the findings of the ALJ as not supported by substantial evidence. In addition, Baeder challenged the validity of 20 C.F.R. Sec. 404.1520(c), the "severe impairment" requirement as authorized by 42 U.S.C. Sec. 405(g). ¹ Because the regulation allowed the denial of disability benefits without any consideration of vocational factors such as age, education and past work experience, he claimed it was inconsistent with the Social Security statute under which it had been promulgated. The district court held that the ALJ's finding of no severe impairment was not supported by substantial evidence, and went on to hold the severe impairment regulation invalid. It accordingly vacated the decision of the ALJ, remanded the case to the Secretary for further evaluation of the evidence, and directed the Secretary to proceed on Baeder's claim without reference to 20 C.F.R. Sec. 404.1520(c). But the district court went further, and enjoined the Secretary from conducting any proceedings, in any other case, using the severe impairment regulation. The Secretary appeals only that portion of the district court's order which invalidated the regulation, and prohibited its further use.

Preliminarily, we note that the district court correctly concluded that Baeder had standing to attack the regulation. Baeder was expressly denied disability benefits on the ground that he did not meet the "severity" requirement of 20 C.F.R. Sec. 404.1520(c). He thus suffered a direct, tangible injury as a result of the Secretary's application of the regulation, and has standing to challenge its application to his case. The district court also found some disparities and omissions in the record before the ALJ, and sent the case back to allow the ALJ to make further findings of fact as to Baeder's medical conditions. Thus, on remand, Baeder again faces the possibility that the Secretary will deny benefits on the basis of the "severity" regulation. We believe that appellee showed the requisite "actual or threatened injury" necessary to invoke the authority of the court. See e.g., Valley Forge Christian College v. Americans United for Separation of Church and State, 454 U.S. 464, 472, 102 S.Ct. 752, 758, 70 L.Ed.2d 700 (1982).

The Social Security Act provides that anyone insured for disability benefits who has not attained retirement age, and who files an application for benefits shall receive benefits if he "is under a disability." 42 U.S.C. Sec. 423(a)(1) (1982). The Act defines a disability as an "inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months." Id. at Sec. 423(d)(1)(A). It goes on to state that a " 'physical or mental impairment' is an impairment that results from anatomical, physiological, or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic techniques." Id. at Sec. 423(d)(3). Thus, on its face, the statute provides for benefits for any person who cannot work due to any medically...