RICHARDSON, SECRETARY OF HEALTH, EDUCATION, AND WELFARE v. WRIGHT ET AL.
No. 70-161
Supreme Court of the United States
Argued January 13, 1972—Decided February 24, 1972
405 U.S. 208
*Together with No. 70-5211, Wright et al. v. Richardson, Secretary of Health, Education, and Welfare, also on appeal from the same court.
Robert N. Sayler argued the cause and filed briefs for appellees in No. 70-161 and for appellants in No. 70-5211.
Briefs of amici curiae in both cases were filed by Thomas L. Fike for the Legal Aid Society of Alameda County; by David H. Marlin and Jonathan A. Weiss for the National Council of Senior Citizens; and by Albert C. Neimeth for Luella H. Mills et al. Bernard P. Becker and Harvey N. Schmidt filed a brief for Stella Van Guilder et al. as amici curiae.
PER CURIAM.
We noted probable jurisdiction of these appeals, 404 U. S. 819 (1971), to consider the applicability of Gold-berg v. Kelly, 397 U. S. 254 (1970), to the suspension and termination of disability benefit payments pursuant to
Vacated and remanded.
MR. JUSTICE DOUGLAS, dissenting.
While I join MR. JUSTICE BRENNAN who reaches the merits, I add a word about the unwisdom of the policy pursued by the Court.
Now, however, it is suggested that the Secretary has so far complied with the instructions of the District Court to formulate new procedures that we should remand the cases to the District Court for further proceedings in light of these new requirements. Such a course, I submit, would be a perversion of the philosophy of due process that we expressed in Goldberg.
Judge Matthews, below, captured the essence of Goldberg in her brief partial dissent:
“In Goldberg the Supreme Court held that a welfare recipient, in addition to timely and adequate notice detailing the reasons for a proposed termination of benefits, must have ‘an effective opportunity to defend by confronting any adverse witnesses and by presenting his own arguments and evidence orally.‘” 321 F. Supp., at 387-388.
I think it unseemly, needlessly to shuttle any litigant, especially an indigent, back and forth from court to court, hoping that his exhaustion of newly created remedies will somehow or other make his problem disappear and relieve us of an obligation. No concession promising justice to the claimants has been made. The issue of due process
MR. JUSTICE BRENNAN, with whom MR. JUSTICE DOUGLAS and MR. JUSTICE MARSHALL join, dissenting.
I respectfully dissent. The Court justifies today‘s sua sponte action on the ground that if reprocessing under the Secretary‘s new regulations “results in a determination of entitlement to disability benefits, there will be no need to consider the constitutional claim that claimants are entitled to an opportunity to make an oral presentation.” (Emphasis by the Court.) Avoidance of unnecessary constitutional decisions is certainly a preferred practice when appropriate. But that course is inappropriate, indeed irresponsible, in this instance. We will not avoid the necessity of deciding the important constitutional question presented by claimants even should they prevail upon the Secretary‘s reconsideration. The question is being pressed all over the country. The Secretary‘s brief lists no less than seven cases presenting it with respect to disability benefits and 10 cases presenting it with respect to nondisability benefits.1
Both the beneficiaries and the Secretary appeal from the District Court‘s judgment. The beneficiaries contend that the District Court erred in not holding that the procedure must afford an evidentiary hearing as in Goldberg. The Secretary contends that procedural due process requirements are satisfied by the “paper” hearing afforded by his new regulations. I agree with the beneficiaries and would therefore vacate the judgment of the District Court and remand with direction to enter a new judgment requiring the procedures held in Goldberg to be requisite with respect to discontinuance of welfare
The Secretary does not challenge that holding in this Court as applied to his now-discarded procedures. Rather, the Secretary insists that the “hearing on paper” afforded to disability beneficiaries by his new regulations is constitutionally sufficient. The Secretary does not contend that disability beneficiaries differ from welfare and old-age recipients with respect to their entitlement to benefits or the drastic consequences that may befall them if their benefits are erroneously discontinued. The only distinctions urged are that the evidence ordinarily adduced to support suspension and termination of disability benefits differs markedly from that relied upon to cut off welfare benefits and that an undue monetary and administrative burden would result if prior hearings were required. Neither distinction withstands analysis.
First. The Secretary points out that the decision to discontinue disability benefits is generally made upon the basis of wage reports from employers and reports of medical examinations. This evidence, in the Secretary‘s view, “is highly reliable and not of a type that draws into issue veracity or credibility.” Brief 10.
The Secretary seriously misconstrues the holding in Goldberg. The Court there said that “the pre-termination hearing has one function only: to produce an initial determination of the validity of the welfare department‘s grounds for discontinuance of payments in order to protect a recipient against an erroneous termination of his benefits.” 397 U. S., at 267. The Secretary does not deny that due process safeguards fulfill the same function in disability cases. In Goldberg, the Court held that welfare recipients were entitled to hearings because decisions to discontinue benefits were challenged “as resting on incorrect or misleading factual premises or on misapplication of rules or policies to the facts of particular cases.” Id., at 268. The Court expressly put aside consideration of situations “where there are no factual issues in dispute or where the application of the rule of law is not intertwined with factual issues.” Id., at 268 n. 15. However reliable the evidence upon which a disability determination is normally based, and however rarely it involves questions of credibility and veracity, it is plain that, as with welfare and old-age determinations, the determination that an individual is or is not “disabled” will frequently depend upon the resolution of factual issues and the application of legal rules to the facts found. It is precisely for that reason that a hearing must be held.
The Secretary, of course, recognizes that disability determinations often involve factual disputes. His new
To support the assertion that pre-termination hearings are required in welfare cases because “credibility and veracity” are in issue, the Secretary focuses upon
The Secretary also relies upon the statement, quoted in Goldberg from Greene v. McElroy, 360 U. S. 474, 496 (1959), that:
“[W]here governmental action seriously injures an individual, and the reasonableness of the action depends on fact findings, the evidence used to prove the Government‘s case must be disclosed to the individual so that he has an opportunity to show that it is untrue. While this is important in the case of documentary evidence, it is even more important where the evidence consists of the testimony of individuals whose memory might be faulty or who, in fact, might be perjurers or persons motivated by malice, vindictiveness, intolerance, prejudice, or jealousy. We have formalized these protections in the requirements of confrontation and cross-examination.” 397 U. S., at 270 (emphasis added).
The premise of the Secretary‘s entire argument is that disability benefits are discontinued “only on the basis of an objective consideration—that the previous disability has ceased—and that conclusion rests on reliable information.” Brief 26. Whether or not the information is reliable, the premise is questionable. The Secretary himself emphasizes that disability determinations require “specialized medical and vocational evaluations” and not simply the acquisition of “medical and other relevant data.” Id., at 28. In any event, there are three grounds, pertinent here, upon which disability can be found to have ceased. None can fairly be characterized by the term “objective.”
Second, cessation may be found if the beneficiary “has regained his ability to engage in substantial gainful activity . . . as demonstrated by work activity.”
Third, cessation of disability may be found if the evidence establishes medical recovery.
The Secretary‘s claim for “objectivity” is even less persuasive in the situation where a beneficiary‘s benefits are suspended. “Benefits are suspended when information is received which indicates that the individual may no longer be under a disability.” Claims Manual § 6708. Here, by definition, there has been no determination that disability has ceased.
Finally, the post-termination reversal rate for disability determinations makes the asserted “objectivity” even more doubtful. According to the Secretary‘s figures for 1971, 37% of the requests for reconsideration resulted in reversal of the determination that disability had ceased. Moreover, 55% of the beneficiaries who exercised their right to a hearing won reversal. While, as the Secretary says, these figures may attest to the fairness of the system, Richardson v. Perales, supra, at 410, they also appear to confirm that the Court‘s reference in Goldberg to “the welfare bureaucracy‘s difficulties in reaching correct decisions on eligibility,” 397 U. S., at 264 n. 12, is fully applicable to the administration of the disability program.
Second. The Secretary also contends that affording disability beneficiaries the opportunity to participate in evidentiary hearings before discontinuance of their benefits will result in great expense and a vast disruption of the administrative system. This justification for denial of pre-termination hearings was, of course, specifically rejected in Goldberg, 397 U. S., at 265-266, and
In Goldberg, the Court pointed out “that termination of aid pending resolution of a controversy over eligibility may deprive an eligible recipient of the very means by which to live while he waits.” 397 U. S., at 264 (emphasis in original). That statement applies equally to eligible disability beneficiaries, for, as the District Court noted and the Secretary does not deny, “a disability beneficiary is by definition unable to engage in substantial gainful activity and he would, therefore, be liable to sustain grievous loss while awaiting the resolution of his claim.” 321 F. Supp., at 386. In view of that result, the District Court concluded that the “fiscal and administrative expenses to the government, whatever their magnitude, are insufficient justification considering the crippling blow that could be dealt to an individual in these circumstances.” Ibid. The Secretary‘s response is simply to stress the magnitude of the burden.
Here, as in Goldberg, “[t]he requirement of a prior hearing doubtless involves some greater expense.” 397 U. S., at 266. The Secretary points out that current procedures include a two-step determination of disability: first by the state agency, after a district office of the Social Security Administration has conducted a disability investigation, and then, on review of the state agency‘s determination, by the Administration‘s Bureau of Disability Insurance, which is located in Baltimore, Maryland.3 Thus, the Secretary says, a prior hearing “either would require the beneficiary to travel great distances or would necessitate that State or federal officials travel to the area in which the beneficiary resides,
Except for bald assertion, the Secretary offers nothing to indicate that any great burden upon the system would result if the state agencies conducted the hearings. Moreover, the Secretary omits even to mention the existence of the current post-termination hearing procedures. See
The Secretary also claims that the requirement of prior hearings “would result in losses to the Social Security Trust Fund of nearly $16 million per year for disability cases and still greater sums when all Title II programs are considered.” Brief 10. This conclusion does not follow from the facts the Secretary presents.
As to the disability program, the Secretary says that in 1971 there were 38,000 determinations that disability
First, this figure depends upon the unwarranted assumption that all beneficiaries will demand a prior hearing. The Secretary suggests no reason to suppose that would happen. In fact, while there were 38,000 disability cessations in 1971, there were only 10,941 requests for reconsideration, and although 6,885 cessations were affirmed on reconsideration, there were only 2,330 requests for hearings. These post-termination procedures, of course, were utilized by beneficiaries who could not present their views before termination. Under the new regulations, affording notice and the opportunity to respond in writing before termination, it may well be that even fewer beneficiaries will demand hearings. In any event, experience in the welfare area has not demonstrated that recipients abuse their right to pre-termination hearings, and the Secretary does not claim that disability beneficiaries will do so.
Second, the $16 million figure requires not only that all 38,000 beneficiaries request prior hearings, but also that they all lose. Yet, as noted above, 37% of the reconsiderations on written submissions and 55% of the post-termination hearings in 1971 resulted in reversal. The Secretary does not claim, nor is it conceivable, that in every case a prior hearing would uphold the initial determination that disability had ceased.
Third, not only must every beneficiary request a prior hearing and every hearing affirm cessation of disability, it must also be true, to reach the $16 million figure, that the Secretary will be unable to recover any of the benefits paid to beneficiaries pending the hearings. That result
Fourth, the $16 million figure depends upon the stated premise that the requirement of a hearing would cause a two-month delay in the termination of benefits. The Secretary does not explain why he chose that time period. Under the new regulations, a beneficiary receives notice of the proposed discontinuance, is informed of the information upon which it is based, and is given the opportunity to submit a written response presenting rebuttal evidence. Only then is the disability determination made. It is difficult to believe that it would require another two months just to provide a hearing.
Finally, under
Viewing Title II programs as a whole, the Secretary points out that there were nearly three million terminations of benefits in 1969. The vast majority of these terminations were for death, attainment of a certain age, and so forth, but the Secretary asserts that apart from those cases there were 515,189 terminations that would have been affected by the requirement of a prior hearing. That number, however, includes terminations based upon a student‘s leaving school, a change in a beneficiary‘s marital status, and the death or adoption of a child. Without those cases, the number drops to 186,035. Moreover, even this number includes disability terminations and the terminations of dependents based thereon. Putting aside those cases, the total appears to be somewhat closer to 100,000. While that is a substantial number of terminations, the Secretary does not indicate what issues are involved in making the decisions. As noted above, prior evidentiary hearings are necessary in disability cases because factual disputes exist. They may exist to a far lesser extent in other programs. Moreover, to whatever extent they do exist, the objections to the Secretary‘s inflated cost figure for disability terminations would seem to apply equally to nondisability terminations. In any event, the Secretary has simply provided the bare number of terminations, with no further information, and it
I do not deny that prior hearings will entail some additional administrative burdens and expense. Administrative fairness usually does. But the Secretary “is not without weapons to minimize these increased costs.” Goldberg v. Kelly, 397 U. S., at 266. Despite the Secretary‘s protestations to the contrary, I believe that in the disability, as in the welfare, area “[m]uch of the drain on fiscal and administrative resources can be reduced by developing procedures for prompt pre-termination hearings and by skillful use of personnel and facilities.” Ibid. The Court‘s conclusion on this point in Goldberg is fully applicable here:
“Indeed, the very provision for a post-termination evidentiary hearing . . . is itself cogent evidence that the State recognizes the primacy of the public interest in correct eligibility determinations and therefore in the provision of procedural safeguards. Thus, the interest of the eligible recipient in uninterrupted receipt of public assistance, coupled with the State‘s interest that his payments not be erroneously terminated, clearly outweighs the State‘s competing concern to prevent any increase in its fiscal and administrative burdens.” Ibid.
My answers to the Secretary‘s contentions are also the reasons I disagree with the majority of the District Court and agree with the dissenting judge. I would therefore vacate the judgment of the District Court and remand with direction to enter a new judgment requiring that disability benefits not be discontinued until the beneficiary has been afforded procedural due process in the form mandated by Goldberg with respect to discontinuance of welfare and old-age benefits.
