Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca10-90-01025/USCOURTS-ca10-90-01025-0/pdf.json

Nature of Suit Code: 864
Nature of Suit: Social Security - SSID Title XVI
Cause of Action: 

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FILED 

United States Court of Appeals 

Tenth Circuit 

UNITED STATES COURT OF APPEALS 

FOR THE TENTH CIRCUIT 

FEB 2 8 1991 

ROBERT L. HOECKER 

Clerk 

ALLEN NICHOLS, 

Plaintiff-Appellant, 

v. 

LOUIS W. SULLIVAN, M.D., Secretary of 

Health & Human Services, 

Defendant-Appellee. 

) 

) 

) 

) 

) No. 90-1025 

) (D.C. No. 87-K-646) 

) (D. Colo.) 

) 

) 

) 

ORDER AND JUDGMENT* 

Before ANDERSON, TACHA, and BRORBY, Circuit Judges. 

After examining the briefs and appellate record, this panel 

has determined unanimously that oral argument would not materially 

assist the determination of this appeal. See Fed. R. App. P. 

34(a); 10th Cir. R. 34.1.9. The case is therefore ordered 

submitted without oral argument. 

Plaintiff appeals from an order of the district court 

affirming the Secretary's decision to terminate supplemental 

security income (SSI) benefits effective November, 1986. We 

affirm. 

* This order and judgment has no precedential value and shall 

not be cited, or used by any court within the Tenth Circuit, 

except for purposes of establishing the doctrines of the law of 

the case, res judicata, or collateral estoppel. 10th Cir. R. 

36.3. 

Appellate Case: 90-1025 Document: 010110031044 Date Filed: 02/28/1991 Page: 1 
, 

On October 2, 1986, the Social Security Administration sent 

plaintiff notice that he was not eligible for SSI payments 

starting November, 1986, because his monthly income was too high. 

Plaintiff's request for reconsideration of this decision was 

denied. After holding a hearing, the administrative law judge 

(ALJ) determined plaintiff's unearned income in the form of 

disability benefits was and is in excess of the amount allowable 

for eligibility for SSI benefits. On appeal, the district court 

appointed counsel for plaintiff and remanded to the Secretary for 

a new hearing. 

The ALJ held a second hearing and again determined that 

plaintiff's unearned income made him ineligible for SSI benefits. 

The Appeals Council adopted the ALJ's findings and conclusions. 

Thereafter, plaintiff's counsel filed a status report in the 

district court indicating there was no further basis for appeal of 

the termination of plaintiff's benefits. The district court 

entered an order affirming the Secretary. 

This court upholds the Secretary's decision and findings if 

they are supported by substantial evidence. Bernal v. Bowen, 851 

F.2d 297, 299 (10th Cir. 1988). Substantial evidence is evidence 

a reasonable mind would accept as adequate to support a 

conclusion. Richardson v. Perales, 402 U.S. 389, 401 (1971). 

Also, this court considers whether the Secretary applied the 

correct legal standards in making his determination. Bernal, 851 

F.2d at 299. Failure to apply the correct legal standards or to 

provide this court with a sufficient basis to determine if the 

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Appellate Case: 90-1025 Document: 010110031044 Date Filed: 02/28/1991 Page: 2 
appropriate legal principles have been followed are grounds for 

reversal. Byron v. Heckler, 742 F.2d 1232, 1235 (10th Cir. 1984). 

After examining the briefs, record on appeal and relevant 

legal authority, we conclude, for the reasons stated by the ALJ in 

his recommended decision of April 26, 1988, that there is 

substantial evidence that plaintiff's unearned income exceeded the 

permissible amount, thereby precluding him from eligibility for 

SSI. 

SSI, which is based on need, provides a minimum level of 

income to disabled persons. 42 u.s.c. § 1382(a)(l), (c)(l); 

Paxton v. Secretary of Health & Human Servs., 856 F.2d 1352, 1353 

(9th Cir. 1988); Dion v. Secretary of Health & Human Servs., 823 

F.2d 669, 670 (1st Cir. 1987); Lyon v. Bowen, 802 F.2d 794, 796 

(5th Cir. 1986). Eligibility for SSI is determined by the amount 

of a claimant's income, 42 u.s.c. § 1381a; 20 C.F.R. § 416.202, 

including unearned income such as disability benefits, 42 u.s.c. 

§ 1382a(a)(2)(B); 20 C.F.R. § 416.1121(a). 

In 1986, claimants were eligible to receive SSI benefits only 

if their income did not exceed $4,032 per year or $336 per month. 

42 U.S.C. S 1382(a)(l)(A); 20 C.F.R. S 416.410. Plaintiff had 

unearned income, in the form of disability benefits, of $391 per 

month in 1986. Plaintiff's countable unearned income, the amount 

which exceeded the $20 per month unearned income exclusion, 20 

C.F.R. § 416.1124, was $371 per month. In years after 1986, the 

allowable unearned income for SSI increased, as did plaintiff's 

unearned income. At all times, his unearned income exceeded the 

permitted amount. Thus, there is substantial evidence to support 

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, 

the Secretary's determination that plaintiff's unearned income 

from 1986 on exceeded the permissible amount, thereby precluding 

him from eligibility for SSI. 

Plaintiff argues on appeal that the Secretary failed to 

comply with social security law and that he was denied due process 

during the ALJ hearings. We conclude these arguments are without 

merit. 

The judgment of the United States District Court for the 

District of Colorado is AFFIRMED. Plaintiff's motions for 

contempt orders, for clarification, and regarding oral argument 

are DENIED. 

The mandate shall issue forthwith. 

Entered for the Court 

Deanell Reece Tacha 

Circuit Judge 

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