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20 soc.sec.rep.ser. 298, unempl.ins.rep. Cch 17,844 Mary Cohen v. Otis Bowen, Secretary of Health and Human Services

Citations: 837 F.2d 582; 1988 U.S. App. LEXIS 957Docket: 446

Court: Court of Appeals for the Second Circuit; January 24, 1988; Federal Appellate Court

Narrative Opinion Summary

The case involves a plaintiff challenging the recoupment of overpaid widow's benefits by the Social Security Administration (SSA) and seeking attorney fees under the Equal Access to Justice Act (EAJA). The plaintiff continued receiving widow's benefits after remarriage, which should have been reduced, leading to an overpayment. She argued for a waiver under 42 U.S.C. § 404(b), claiming no fault in her failure to report the remarriage, which was supported by a magistrate who found a lack of substantial evidence against her testimony. The district court reversed the SSA's denial of the waiver and restored her benefits. However, her subsequent application for attorney fees was denied by the court, which found the Government's defense substantially justified, despite the reversal of the administrative ruling. This decision was grounded in the EAJA's standard of reasonableness, emphasizing that the Government's position need not be correct to be justified. The court maintained a balanced approach towards fee awards, rejecting both automatic awards and those strictly for arbitrary actions. The judgment was affirmed, highlighting the reasonableness of the Government's litigation stance and the credibility of the plaintiff's claim of acting without fault.

Legal Issues Addressed

Credibility and Fault in Social Security Overpayment Cases

Application: The determination of fault relied on the plaintiff's credibility regarding her belief about the nature of her benefits, which supported the conclusion that she acted without fault.

Reasoning: The district court found her credible, which supported the conclusion that she acted without fault.

Recoupment of Overpaid Social Security Benefits

Application: The plaintiff sought a waiver for the recoupment of overpaid widow's benefits, arguing her failure to report remarriage was innocent and would cause economic hardship.

Reasoning: Cohen claimed her failure to report her remarriage was innocent and would cause her serious economic hardship if the recoupment were enforced.

Standard for Awarding Attorney Fees under EAJA

Application: The court affirmed that the standard for awarding fees is reasonableness, rejecting automatic awards or those reserved for arbitrary actions.

Reasoning: Judge Motley emphasized a balanced standard for fee awards, rejecting both automatic awards and those reserved for only arbitrary government actions.

Substantial Justification under the Equal Access to Justice Act (EAJA)

Application: The court denied attorney fees, ruling the Government's defense was substantially justified despite the plaintiff's success in her waiver appeal.

Reasoning: The district court ruled that the Government's defense was 'substantially justified,' denying her request for fees.

Waiver of Overpayment under 42 U.S.C. § 404(b)

Application: The court examines whether the recipient is 'without fault' and if recovery would defeat the purpose of the Social Security Act, considering factors like failure to provide material information.

Reasoning: Under 42 U.S.C. § 404(b), repayment can be waived if the recipient is 'without fault' and recovery would defeat the purpose of the Social Security Act.