Giles ex rel. Giles v. Astrue

• Decision Date: 16 April 2007
• Docket Number: No. 06-2293.,06-2293.
• Citation: 483 F.3d 483
• Parties: Damien GILES, a Minor, by Denise GILES, his Mother and Natural Guardian, Plaintiff-Appellant, v. Michael J. ASTRUE,<SMALL><SUP>*</SUP></SMALL> Defendant-Appellee.
• Court: U.S. Court of Appeals — Seventh Circuit

483 F.3d 483

Damien GILES, a Minor, by Denise GILES, his Mother and Natural Guardian, Plaintiff-Appellant, v. Michael J. ASTRUE,^* Defendant-Appellee.

No. 06-2293.

United States Court of Appeals, Seventh Circuit.

Argued January 23, 2007.

Decided April 16, 2007.

Barry A. Schultz (argued), Evanston, IL, for Plaintiff-Appellant.

Danielle A. Pedderson (argued), Social Security Administration, Office of the General Counsel, Chicago, IL, for Defendant-Appellee.

Before FLAUM, KANNE, and WILLIAMS, Circuit Judges.

FLAUM, Circuit Judge.

On September 1, 1995, Damien Giles began receiving Supplemental Security Income ("SSI") benefits for physical and cognitive deficiencies. In 1997, Congress passed the Personal Responsibility and Work Opportunity Reconciliation Act, which re-defined childhood disability. As a result, the Social Security Administration ("SSA") found Damien no longer disabled under the new definition, and thus ineligible to receive disability benefits. Damien's mother, Denise Giles, appealed and testified at a hearing before an Administrative Law Judge ("ALJ"). The ALJ found that Damien was no longer disabled, and Ms. Giles brought suit in federal district court pursuant to 42 U.S.C. § 405(g). The district court affirmed the ALJ and Ms. Giles appeals. For the following reasons, we reverse the decision of the district court and remand for further proceedings.

I. BACKGROUND

Damien Giles was born in June 1994. Within his first year, Damien was diagnosed with developmental delays and underwent casting to correct the alignment of his feet. He had frequent ear infections and underwent surgery to receive ear tubes. These impairments qualified him for physical and speech therapy at Curative Rehabilitation Services ("CRS") in Milwaukee. In 1995, when Damien was a year old, his mother, Denise Giles, filed an application for SSI, alleging that Damien was disabled. The SSA granted the application and, beginning in September 1995, Damien began to receive SSI benefits.

On September 29, 1995, Damien underwent testing performed by Dr. Roland Manos, during which Damien displayed delayed mental development and significantly delayed psychomotor development. In January 1996, Damien began walking with a normal gait, although it was wide-based. In August 1996, he scored in the twenty-fifth percentile in gross motor skills and did not qualify for continued physical therapy at CRS. He did, however, continue to receive services at CRS for speech developmental delays. In December 1996, CRS staff noticed that Damien had "really opened up," was talking a lot, and was following classroom routines and simple directions. In March 1997, a progress report indicated that Damien was making further progress in speech therapy, and shortly thereafter, CRS discharged him from its care. Though he was three years old, Damien functioned at the 18-19 month cognitive level.

After CRS discharged him, Damien began receiving special education services from the Milwaukee Public School system. In April 1997, Damien underwent a Multi-disciplinary Team (M-Team) evaluation to determine whether he needed further special care. The M-Team was comprised of teachers, educational specialists, and psychologists. Their evaluation revealed that Damien had continuing speech and language delays as well as a learning disability. As a result, the M-Team developed an Individualized Education Program ("IEP") for Damien. The IEP's "Speech/Language Report" stated that on the preschool language scale, Damien had expressive language skills at the 14-month level. The M-Team noted that Damien had a short attention span and became easily distracted. The evaluating psychologist observed that it was very difficult to maintain his attention and that Damien exhibited impulsive, wilful, and oppositional behavior.

On October 30, 1997, Damien underwent a consultative examination with Dr. Christopher Morano of the Milwaukee County Department of Public Health. During the examination, Damien focused his attention "very well" and put forth a good effort. He was responsive and cooperative, although his speech was poor. Dr. Morano opined that Damien had mild problems "across the board" with no severe deficits in any area. On October 31, 1997, Damien's pre-school teacher completed a school activities questionnaire in which she reported that Damien had a "very short" attention span and needed constant reminders to stay on task. She also noted Damien's difficulties following routines and getting along with other children. She further mentioned that his speech was not clear or understandable.

In November 1997, SSA re-evaluated Damien's eligibility for benefits.¹ Two agency physicians reviewed Damien's record and determined that he no longer qualified for SSI. Ms. Giles appealed the SSA's decision to an ALJ.

While the appeal was pending, Damien's teachers continued to complete progress reports for him. In October 1998, his teacher reported that his attention span was improving, but that it was still not age-appropriate. He needed constant supervision and reminders to stay on task. His speech was still difficult to understand, although he was beginning to interact more with his peers. The following year, in October 1999, Damien's teacher observed his short attention span and noted that he engaged in overactive behavior and had difficulty with regular classroom routines.

A November 1999 psychological assessment revealed that Damien was cooperative and willing to be tested, but that he was distracted from tasks he found too difficult. The assessment also noted that Damien was very active; he had difficulty staying on task in the classroom setting and appeared to be "daydreaming." In October 2002, Damien's special education teacher completed a questionnaire and reported that Damien was reading, writing, and performing math at an early first-grade level and was able to follow up to three-step directions without difficulty. She also noted that he had a short attention span compared with his same aged peers.

On October 21, 2002, the ALJ assigned to Damien's appeal held a hearing during which both Damien and Ms. Giles testified. Damien testified that he could dress and groom himself. He stated that he did chores, homework, and enjoyed playing video games. Ms. Giles testified that Damien's mind tended to wander when he did his homework after school. She further stated that Damien had difficulty paying attention and "catching on" to things in school. She told the ALJ that Damien was not taking any medication for his attention or behavior difficulties. She also reported that Damien had not exhibited any behavioral problems in school within the last year. Ms. Giles also offered the various doctor and school reports discussed above.

On June 27, 2003, the ALJ concluded that Damien was not disabled. The ALJ found that:

1. The claimant is eight years of age and is not engaging in substantial gainful work activity

2. The medical evidence establishes that the claimant has severe speech/language disorder, learning disability, asthma and developmental delays, but does not have an impairment or combination of impairments that meets or medically or functionally equals the severity of any impairment on the Listing of Impairments.

3. Aside from being markedly limited in terms of the domain of acquiring and using information and the cognitive functioning area, the claimant is less than markedly limited in all other areas of functioning.

4. When the claimant's complaints and allegations about his limitations and impairments are considered in light of all of the objective medical evidence as well as the record as a whole, they reflect a child who has improved and who does not have any impairment or combination of impairments in the Listing of Impairments.

5. The claimant is not under a "disability" as defined in the Social Security Act and is not eligible for child's supplemental security income benefits under the provisions of section 1614(a)(3). The claimant's disability ceased in November 1997.

Following this decision, Ms. Giles filed a request for review to the SSA's appeals council, which denied the request, leaving the ALJ's decision as the final decision of the Commissioner. Ms. Giles then filed a complaint in federal court challenging the ruling. The district court affirmed, holding that the substantial evidence supported the ALJ's finding. Ms. Giles filed a timely appeal with this Court, asking us to review the ALJ's decision.

II. ANALYSIS

Ms. Giles contends that the ALJ did not adequately articulate the basis for denying Damien benefits. This Court reviews the Commissioner's final decision to determine whether it is supported by substantial evidence. Young v. Sec'y of Health and Human Servs., 957 F.2d 386, 388 (7th Cir.1992). An ALJ's findings are supported by substantial evidence if the ALJ identifies supporting evidence in the record and builds a logical bridge from that evidence to the conclusion. Haynes v. Barnhart, 416 F.3d 621, 626 (7th Cir.2005). However, where the ALJ's decision "lacks evidentiary support or is so poorly articulated as to prevent meaningful review, the case must be remanded." Steele v. Barnhart, 290 F.3d 936, 940 (7th Cir.2002).

A. Disability Determination

Under the Personal Responsibility and Work Opportunity Reconciliation Act, a child is disabled if he or she has a "physical or mental impairment, which results in marked and severe functional limitations, and . . . which has lasted or can be expected to last for a continuous period of not less than 12 months." 42 U.S.C. § 1382c(a)(3)(C)(i). The SSA employs a three-step analysis to decide whether a child meets this definition. 20 C.F.R. § 416.924(a). First, if the child is engaged in substantial gainful activity, his or her claim is denied. Id. Second, if the child does not have a medically severe impairment or combination of impairments, then his or her claim is denied. Id. Finally, the child's impairments...