Banks v. Chater

• Decision Date: 09 September 1996
• Docket Number: Civil No. 95-3870 (JEI).
• Parties: Ulysses BANKS, Plaintiff, v. Shirley S. CHATER, Commissioner of Social Security, Defendant.
• Court: U.S. District Court — District of New Jersey

949 F.Supp. 264

Ulysses BANKS, Plaintiff, v. Shirley S. CHATER, Commissioner of Social Security, Defendant.

Civil No. 95-3870 (JEI).

United States District Court, D. New Jersey.

September 9, 1996.

Robert A. Petruzzelli, Jacobs, Schwalbe & Petruzzelli, Cherry Hill, NJ, for plaintiff.

John C. Jeannopoulos, Special Asst. U.S. Atty., Newark, NJ, for defendant.

OPINION

IRENAS, District Judge:

This is an action brought by plaintiff for judicial review of the denial by the Appeals Council of the Social Security Administration ("SSA") to review a decision by an Administrative Law Judge ("ALJ") which found no "good cause" for plaintiff's untimely filing of appeal and thus dismissed plaintiff's request for a hearing. Defendant argues that this Court does not have jurisdiction because the denial by the Appeals Council does not constitute a "final decision" of the Commissioner. Because we agree that there has been no "final decision" for jurisdictional purposes and do not believe that claimant presents a colorable constitutional claim on which jurisdiction might rest, we will dismiss for lack of jurisdiction.

I. BACKGROUND

The SSA mailed a reconsideration denial notice to Banks on October 16, 1992. Banks does not dispute that he and his lawyer received the notice shortly thereafter. From the date of receipt, Banks had 60 days in which to file for a hearing before an ALJ. The SSA received nothing from plaintiff within that time frame.

In December 1994 and early 1995, the SSA received two letters from plaintiff's lawyer dated, respectively, December 8, 1994, and January 9, 1995. In these letters, plaintiff's attorney asserted that the request for a hearing had been filed on time. As proof, he attached two letters which he averred had previously been sent to the SSA on or near their indicated dates. One of them was dated December 9, 1993; it inquired about the hearing and referred to an even earlier letter. That earlier letter, which was dated October 22, 1992, forms the basis of plaintiff's claim that his notice was timely filed within 60 days of the denial of reconsideration.

On February 3, 1995, the ALJ dismissed Banks' request for a hearing as not timely filed. The ALJ noted in his dismissal order that plaintiff's request for a hearing, together with the above-mentioned letters, had not been received in the district office until January 6, 1995. The ALJ further noted that the letters were dated December 8, 1994; December 9, 1993; and October 22, 1992. Remarking that the "attorney's follow-ups on alleged letter ... were spaced a year apart," the ALJ concluded that "there is no good cause to extend the time for filing."

Plaintiff appealed. In the letter of appeal, plaintiff's lawyer again stated that the notice of appeal had been timely filed by letter dated October 22, 1992, and suggested that his delay in following up was a product of his familiarity with the "significant backlog in the processing of requests for hearing." On April 18, 1995, the Appeals Council found no compelling basis to vacate, and declined to reverse the Administrative Law Judge's dismissal. The Appeals Council made reference to plaintiff's lawyer's assertions, but concluded that "[t]he Administrative Law Judge, however, declined to accept your attorney's account of the facts in your case. Your attorney has not submitted additional evidence showing either that he mailed a letter requesting a hearing in October 1992, or that he mailed a letter requesting status in December 1993. Neither the documents in your file nor your attorney's assertions provide a compelling basis for vacating the Administrative Law Judge's order of dismissal."

Plaintiff seeks two alternative forms of relief in his complaint. First, he asks that the determination of the Commissioner be reversed and he be awarded SSI benefits. Alternatively, plaintiff asks that the case be remanded to the Commission for a hearing on the merits of his claim.

Plaintiff's brief in opposition to the government's motion to dismiss, however, presents somewhat different arguments from those of his complaint. In his brief, plaintiff argues that, prior to a dismissal for lateness, plaintiff should have been given notice and provided with an opportunity to present evidence in a special hearing on the issue of the timeliness of his filing. Along with his brief, plaintiff has provided an affidavit dated May 14, 1996, and signed by a paralegal employed by plaintiff's lawyer, which states that notice was timely filed.¹

II. ANALYSIS

Title II of the Social Security Act limits judicial review to a "final decision of the Secretary made after a hearing." 42 U.S.C. § 405(g). The decision by the SSA not to consider an untimely request for review is not a "final decision" subject to judicial review. Bacon v. Sullivan, 969 F.2d 1517 (3d Cir.1992)². We therefore do not have jurisdiction to review the merits of the claim or even to review the SSA's determination of the timeliness of filing. Id. at 1519.

Our lack of jurisdiction is subject to an exception where a plaintiff asserts a "colorable constitutional claim." Id. at 1521; Penner v. Schweiker, 701 F.2d 256 (3d Cir. 1983). Plaintiff asserts that the failure of the ALJ to notify him that timeliness was at issue and to hold a hearing prior to the "good cause" determination violated his due process rights under the Fifth and Fourteenth Amendments.

A constitutional claim is not "colorable" if it "clearly appears to be immaterial and made solely for the purpose of obtaining jurisdiction or ... is wholly insubstantial or frivolous." Boettcher v. Secretary of HHS, 759 F.2d 719, 722 (9th Cir.1985). The mere allegation of a due process violation is not sufficient to raise a "colorable" constitutional claim to provide subject matter jurisdiction. "[I]f the mere allegation of a denial of due process can suffice to establish subject-matter jurisdiction, then every decision of the Secretary would be [judicially] reviewable by the inclusion of the [magic] words" "arbitrary" or "capricious." Robertson v. Bowen, 803 F.2d 808, 810 (5th Cir.1986). "Every disappointed claimant could raise such a due process claim, thereby undermining a statutory scheme designed to limit judicial review." Holloway v. Schweiker, 724 F.2d 1102, 1105 (4th Cir.1984). See U.S. v. Neville, 985 F.2d 992 (9th Cir.1993) (holding that ALJ's dismissal of claim following claimant's refusal to appear before him because claimant believed that the ALJ was prejudiced against his attorney did not present a colorable constitutional claim and that jurisdiction was lacking).

Petitioner asserts that he should have been notified of the ALJ's intention to dismiss the claim for late filing and provided with an opportunity to present evidence at a hearing, citing Mathews v. Eldridge, 424 U.S. 319, 332, 96 S.Ct. 893, 901, 47 L.Ed.2d 18 (1975) (noting requirement of notice and opportunity to be heard prior to taking a property interest, but concluding that "an evidentiary hearing is not required prior to the termination of disability benefits and that the present administrative procedures fully comport with due process." Id. at 349, 96 S.Ct. at 910). The regulations do not require the ALJ to conduct a hearing on the issue of "good cause" under 20 C.F.R. § 416.1411. Coffey v. Schweiker, 559 F.Supp. 1375 (D.Kan.1983). Of course, the regulations do not decide the constitutional issue.

Petitioner argues that, if a hearing had been granted, Banks would have testified under oath that he was aware that his lawyer had made a request for an administrative hearing. In addition, the lawyer would have asserted that the request for hearing had been timely filed. Notably lacking from the evidence plaintiff asserts he would produce, however, is any concrete proof of timely filing, such as a file-stamped copy or a certified-mail stub.³

We fail to see how notice and a hearing would provide the ALJ with any more information than he had at the time he made his ruling. Banks was clearly aware of the timeliness issue prior to the ALJ's determination, as demonstrated by his submission of his previous letters and his assertion that the initial request for hearing was timely filed. Banks' lawyer already affirmed in his letters that the initial request was timely filed. And the ALJ clearly considered all this evidence in making his determination. He simply found that plaintiff's laxness in pursuing his claim and inability to prove timely filing did not warrant a "good cause" extension of time to file. The Appeals Council reviewed the evidence and affirmed. Plaintiff has already submitted all probative evidence and obtained two rulings. We cannot see what purpose an additional evidentiary hearing would serve and fail to see how — given a determination of the "good cause" issue by two fully informed deliberative bodies — plaintiff can assert that the process was defective.

Nor do we consider the SSA's implicit holding, that the burden of proving timely filing is properly placed on the filer, to be a violation of plaintiff's constitutional rights. The regulations require that a request for a hearing before an ALJ "must be filed at one of our offices within 60 days after the date you receive notice of the previous determination." 20 C.F.R. 416.1433(b). Whatever weight the old "mailbox rule" may carry for service and other purposes, it is perfectly clear that, for filings in New Jersey state and federal courts, it is actual receipt that counts, and not the date or fact of mailing. See, Lite, N.J.Fed.P.Rules, R. 8(d); Pressler, 1995 NJ Court Rules, R. 1:5-6(b) (and the comments to both rules). SSA regulation 20 C.F.R. 416.1433(b) is therefore unambiguously consistent with the general rule that, even if service is complete upon mailing, filing is complete only on actual receipt.

Although the burden of establishing the SSA's receipt is on the claimant and his attorney, it is not an especially onerous one. Three possibilities come...