The opinion of the court was delivered by: LORD, III
Plaintiff McKinnon commenced this action in August of 1985 to review a decision by the defendant Secretary denying her application for Social Security Disability Insurance benefits. Cross motions for summary judgment were filed on June 11, 1986. Magistrate Richard A. Powers, III recommended that the plaintiff's motion for summary judgment be granted. I adopted the Magistrate's Report and Recommendation. The matter was remanded to the Secretary for an award of benefits.
Plaintiff now moves for attorney's fees under the Equal Access to Justice Act, 28 U.S.C. § 2412 (d) (1) (A) (Supp. III 1985) ("EAJA"). Under EAJA, plaintiff is entitled to attorney's fees unless the government's litigation position and the agency action that made the lawsuit necessary were "substantially justified." Washington v. Heckler, 756 F.2d 959, 961 (3d Cir. 1985). To meet the burden of establishing substantial justification, the government must make a strong showing that there was: "(1) a reasonable basis in truth for the facts alleged; (2) a reasonable basis in law for the theory it propounds; and (3) a reasonable connection between the facts alleged and the legal theory advanced." Id.
Plaintiff points to three key areas where the government's position was not "substantially justified." First, the plaintiff argues the defendant ignored clear precedent by rejecting the opinions of the treating physicians. The Secretary's position is that adequate justification was offered.
At the hearing, plaintiff testified to experiencing, inter alia, burning chest pains, and arrhythmic contractions and attacks that made her feel as if she would pass out. Treating physician Dr. Quilo reported that plaintiff suffers from angina and arrhythmia secondary to coronary artery spasm. The Administrative Law Judge ("ALJ"), and the Secretary in his brief for summary judgment, severely discounted the doctor's statements because " all of the other medical records and reports reveal that [plaintiff] consistently denied any chest pain, and . . . Dr. Quilo's statement [concerning] arrhythmia secondary to coronary artery spasm is inconsistent with, and contradicted by, all of the other medical evidence of record." Tr. 12 (emphasis added).
This is both an indefensible and an incredible position. In fact, both of plaintiff's other doctors, and the government's doctors, acknowledged both the chest pain and the arrhythmia. A treating cardiologist presented a diagnosis of "transient ischemic attacks, . . . complaints of recurrent . . . chest pain . . . [and] evidence of complex ventricular arrhythmia requiring . . . medication." Tr. 280. Government witness Dr. Miller acknowledged "a history of cardiac cerebrovascular disease with transient ischemic attacks" and "definite exhibit[ions] of cardiac arrhythmia, showing premature ventricular contractions . . . ." Tr. 222-23. He also detailed a "history of cardiac disease as manifested by chest pain," and a history of "documented arrhythmia." Tr. 226. Dr. Miller did not discuss the cause of the arrhythmia. Examination by the other government doctor revealed an "irregular heart rate and rhythm with frequent premature beats." Tr. 258. This doctor concluded that plaintiff's impairments included "cardiac arrhythmias associated with some atypical chest pain." Tr. 259.
The statement in the ALJ's report, quoted in the government's brief, is nothing more nor less than a willful misstatement, calculated to give surface validity to another callous denial of merited benefits and cavalier disregard of court rulings. Under Third Circuit precedent, the ALJ improperly rejected the testimony of the treating physician. More specifically, before the "opinion and evidence [of a treating physician] can be rejected the Secretary must point to some other evidence contradicting it." Rossi v. Califano, 602 F.2d 55, 58 (3d Cir. 1979). Here, as outlined, the ALJ and Secretary purportedly relied upon "inconsistent and contradictory" medical records. However, the other records tended to substantiate, rather than undermine, the findings of the treating physician. The Magistrate found, and this court agreed, that the ALJ failed to accord proper weight to the reports of the treating physicians. Although the mere fact that the government's position was rejected does not automatically mean it was unreasonable, see Washington v. Heckler, supra, 756 F.2d at 961, the record here reveals that, on this crucial issue, the government's rationale for rejecting the treating physician's position was unreasonable, as there was clearly "no reasonable basis in truth" for the ALJ's rejection of the treating physician's opinion.
A second instance in which the government's position is not "substantially justified" concerns the questions posed to the vocational expert. The ALJ failed to pose hypotheticals which included restrictions resulting from plaintiff's subjective symptoms. The ALJ and the Secretary argue that the hypotheticals posed properly accounted for plaintiff's objectively substantiated symptoms.
The Secretary's position is again at odds with the Third Circuit standard, which requires that: (1) "subjective complaints of pain be seriously considered, even where not fully confirmed by objective medical evidence; [(2)] when such complaints are supported by medical evidence, they should be given great weight; [and (3)] where a claimant's testimony as to pain is reasonably supported by medical evidence, the ALJ may not discount claimant's pain without contrary medical evidence." See, e.g., Ferguson v. Schweiker, 765 F.2d 31, 37 (3d Cir. 1985) (citations omitted).
On one final issue, the government's position was "substantially justified." Plaintiff argues that the ALJ improperly "relied on" the grids,
notwithstanding the fact that this case involved significant nonexertional impairments. The government argues the ALJ merely used the grids as a framework.
The Magistrate concluded that the ALJ "relied on" the grids. However, the ALJ explicitly found that the plaintiff's condition "does not specifically coincide with any of the [grids]," and that the grids do not direct the result in this case. Tr. 16. The ALJ then discussed the two grids that most closely fit the plaintiff and, in conjunction with the testimony of the vocational expert, found plaintiff to be not disabled.
The Third Circuit has reserved the question of whether use of the grids to add to the weight of a vocational expert's testimony is proper. See Washington v. Heckler, supra, 756 F.2d at 966-68. The government's position in this instance has a "reasonable" legal basis. Thus, on ...