Meuser v. Colvin, 838 F.3d 905

Background

Meuser, diagnosed with schizophrenia since 1996, worked until late 2011 but stopped after worsened symptoms following a switch to generic Zyprexa; he lives with his parents and applied for Disability Insurance Benefits (DIB) in Feb 2012.
After switching back to brand Zyprexa and changing psychiatrists to Dr. Rhoton (Jan 2012–Aug 2013), Meuser showed fluctuating symptoms: persistent sleep disturbance, blunted/flat affect (negative symptoms), dysthymic mood, and limited social and occupational functioning; no consistent reports of active positive psychotic symptoms.
Dr. Rhoton (treating psychiatrist) completed a Mental RFC noting numerous moderate, marked, and extreme limitations persisting since Feb 2012.
Agency nonexamining consultants found Meuser’s schizophrenia non-severe, citing long prior stability on Zyprexa and only mild limitations; ALJ gave those opinions significant weight and little weight to Rhoton.
At Step 2 the ALJ concluded Meuser’s schizophrenia was not a severe impairment (denying benefits) because objective findings allegedly showed minimal effect and because Meuser reported no hallucinations; the Appeals Council denied review.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether schizophrenia met Step 2 "severe impairment" threshold	Diagnosis and functional evidence meet the de minimis Step 2 screening; negative symptoms and treating notes show more than minimal limitation	ALJ: objective findings minimal; long prior stability on Zyprexa and lack of positive symptoms show non-severity	Reversed — ALJ erred; schizophrenia cannot be dismissed at Step 2 given the record and ALJ’s misreading of negative symptoms
Whether ALJ properly interpreted "negative" vs "positive" symptoms	ALJ misunderstood negative symptoms and treated them as absence of symptoms; this misinterpretation undermines his findings	Commissioner contends any misunderstanding was harmless or a minor notation	Reversed — ALJ improperly equated lack of positive symptoms with no impairment and ignored negative symptoms; error not harmless
Whether ALJ properly weighed treating psychiatrist Dr. Rhoton’s opinion	Rhoton is treating specialist; his marked/extreme limitations warranted controlling or at least well-explained weight	ALJ gave little weight, favoring nonexamining consultants and asserting inconsistency with treatment record	Reversed — ALJ failed to apply treating-source factors and improperly rejected Rhoton without adequate reasons
Whether ALJ properly assessed claimant credibility and daily activities	Credibility and activity findings rest on ALJ’s misinterpretation and cherry-picked evidence; activities do not show capacity for work	Commissioner: claimant forfeited some arguments; medication response and activities support ALJ	Remand — credibility and activity findings premised on errors; ALJ must reassess on remand

Key Cases Cited

Jelinek v. Astrue, 662 F.3d 805 (7th Cir.) (substantial-evidence standard for ALJ findings)
O'Connor-Spinner v. Colvin, 832 F.3d 690 (7th Cir.) (Step 2 is a de minimis screening; diagnosis implies functional impairment)
Spiva v. Astrue, 628 F.3d 346 (7th Cir.) (schizophrenia may be severe but not disabling at later steps)
Stage v. Colvin, 812 F.3d 1121 (7th Cir.) (ALJ may not play doctor or substitute own medical judgment)
Moon v. Colvin, 763 F.3d 718 (7th Cir.) (ALJ must not reinterpret medical evidence contrary to experts)
Scrogham v. Colvin, 766 F.3d 686 (7th Cir.) (treating-source opinions cannot be simply discarded)
Yurt v. Colvin, 758 F.3d 850 (7th Cir.) (ALJ must explicitly apply treating-source regulatory factors)
Goins v. Colvin, 764 F.3d 677 (7th Cir.) (consulting opinions based on incomplete records are weak support)
Moss v. Astrue, 555 F.3d 556 (7th Cir.) (ALJ cannot disregard limitations in daily activities)
Punzio v. Astrue, 630 F.3d 704 (7th Cir.) (mental-illness records vary over time; ‘‘snapshot’’ evidence is insufficient)