Document: 476 U.S. 467 106 S.Ct. 2022 90 L.Ed.2d 462 Otis R. BOWEN, Secretary of Health and Human Services, et al., Petitionersv.CITY OF NEW YORK al. No. 84-1923. Argued Feb. 26, 1986. Decided June 2, Syllabus The Social Security Act provides benefits to disabled persons under two programs administered by the Administration (SSA): Disability Insurance Program (SSD) Supplemental Income (SSI). Regulations for both establish a five-step "sequential evaluation" process determining eligibility benefits. initial determination whether an individual is made state agency authority control Services (Secretary). This subject review SSA. disappointed claimant then afforded three-stage administrative process. Proceeding through these three stages exhausts claimant's remedies. Thereafter, he may seek judicial in Federal District Court, but must do so within 60 days Secretary's final decision as required 42 U.S.C. § 405(g). Respondents brought class action against Commissioner SSA, seeking relief on behalf all individuals residing New York who had, specified time period, been denied disability or whose were terminated pursuant allegedly illegal internal policy Secretary. Court certified including claimants had not complied with 60-day requirement other exhausted their remedies obtained Holding that question was illegal, ordered reopen decisions denying terminating redetermine eligibility. Appeals affirmed. Held: 1. properly included received from did statutory period. jurisdictional rather constitutes statute limitations. Equitable tolling consistent Congress' intent enacting 405(g), facts this case equities are favor tolling. Tolling serves Act's purpose where prevented knowing violation rights. Pp. 2029-2031. 2. also failed exhaust court err waiving exhaustion only those pursue further appeals lapsed still at suit filed. For lapsed, excused same reasons requiring Since could attack which they unaware, it would be unfair penalize them exhausting such circumstances. It proper waive respect file suit. claims collateral members presented administratively. neither sought nor awarded challenged failure follow regulations. Moreover, irreparably injured if now enforced them. fully policies underlying exhaustion. 2031-2033. 742 F.2d 729 (CA2 1984) 755 31 1985), POWELL, J., delivered opinion unanimous Court. Edwin S. Kneedler, Washington, D.C., petitioners. Frederick A.O. Schwarz, Jr., City, appellees. Justice POWELL 1 405(g) challenging effect numerous have entitled issues correctly (i) more than prior filing action, (ii) 2 * Government distinct (SSA). established Title II Act, 49 Stat. 622, amended, 401 seq., pays contributed program suffer mental physical disability. (SSI) XVI 86 1465, 1381 indigent persons. Both statutes define "disability" "inability engage any substantial gainful activity. . ." §§ 423(d)(1)(A), 1382c(a)(3)(A). An found "his impairment impairments severity unable his previous work cannot, considering age, education, experience, kind exists national economy." 423(d)(2)(A), 1382c(a)(3)(B). 3 Pursuant authority, (Secretary) has adopted complex regulations governing SSD SSI payments. 20 CFR pt. 404, subpart P (1985) (SSD); 416, I essentially first step determines engaged "substantial activity." If is, denied. 404.1520(a), (b), 416.920(a), (b) (1985). activity, moves second step, decides condition "severe"—i.e., one significantly limits ability basic activities. severe, 404.1520(c), 416.920(c). third meet equal set forth "Listing Impairments" (listings) contained P, appendix 1, regulations, 404.1520(d), 416.920(d). listings consist acknowledged sufficient preclude employment. meets equals listed impairments, conclusively presumed listed, fourth assesses individual's "residual functional capacity" (RFC); assessment measures capacity RFC permits him perform work, 404.1520(e), 416.920(e).1 capable doing past fifth whether, light RFC, work. 404.1520(f), 416.920(f). does not, awarded. 4 initially acting 421(a), 1383b(a); 404.1503, 416.903 (1985); see Heckler v. Day, 104, 106, n. 4, 104 2249, 2251, 81 88 (1984). All Quality Assurance Reviews Regional Office Central Baltimore Offices responsible SSA officials determine during either erred, "returned" State correction. 5 beginning de novo reconsideration determination. 404.909(a)(1), 416.1409(a) dissatisfied agency's reconsideration, hearing law judge (ALJ) SSA's Hearings Appeals. 405(b)(1) (1982 ed., Supp. II), 1383(c)(1); 404.929, 416.1429, 422.201 seq. (1985).2 6 ALJ's adverse claimant, Council. 404.967-404.983, 416.1467-416.1483 Following each stage, notified proceed next stage notice taken will considered binding. E.g., 404.905, 416.1405, 416.1409(a), 404.955(a), 404.968(a)(1), 416.1455(a), 416.1468(a) federal district court, See 421(d), 1383(c)(3); 404.900(a)(5), 404.981, 416.1400(a)(5), 416.1481, 422.210 (1985).3 7 On February 8, 1983, respondents, City York, Hospitals Corporation, officials, suing own parens patriae, together eight named individuals, They applied after April 1980, petitioners severe impairment, applications denied, terminated, based petitioners' 8 gravamen respondents' complaint unlawful, unpublished countless deserving contended mandated presumption—applicable level psychiatric assessment—that tantamount finding least unskilled work; presumption led routine denials eligible claimants; arbitrary, capricious, violative Constitution, applicable claimed eliminating steps four five sequential evaluation process, thus ignored individualized nonetheless able alleged never published Register Administrative Procedure implemented various memoranda "returns" sends cases back States make known plaintiffs due law. A. 9 7-day trial, held 1978 until early months 1983,4 followed covert respondents illegal. Heckler, 578 F.Supp. 1109, 1115 (EDNY 1984). noted "Act its require realistic, Campbell, [461 458, 103 1952, 76 66] (1983). receive assessment." Id., 1124.5 Rather, alleged, consistently "followed presumes mentally necessarily retain residual 'unskilled work.' " 1115. tainted assessments physicians subsequently given "great weight" appeal 1125. "[t]he means enforcement policy, memoranda, returns, reviews, meant affected applicant well counsel, social workers advisers long unaware existence." stated evidence "fixed clandestine illness" overwhelming. Ibid. 10 class,6 decided Relying Mathews Eldridge, 424 319, 96 893, 47 18 (1976), concluded appropriate requirement. In court's view, parts Eldridge test satisfied here: claim benefits, harm imposed irreparable. 11 Similarly, "within allow." jurisdictional, limitations waivable parties. supra, 328, 9, S.Ct., 899, 9; Weinberger Salfi, 422 749, 763-764, 95 2457, 2465-2466, 45 522 (1975). Observing no argument concerning post-trial brief, "the justify implying waiver stronger sixty day because requirement, 'central requisite grant subject-matter jurisdiction.' 764 [95 2466, 522] (1975)." F.Supp., 1124. 12 As remedy, interim relief, directed reinstate previously determined.7 B 13 Second Circuit challenge Court's findings fact ruling merits, raised contentions respecting definition class, awarded.8 With composition asserted lacked jurisdiction over most members, remedies, right commenced. 734. 14 rejected upheld caused wrongful While believe "wholly" complaining "fundamentally procedural irregularity substantive standards eligibility." 737. believed significant asked rule merits benefit claims. 15 contention should agreed limitation 738, citing U.S., 2465-2466. secretive conduct justified period "during applying remained operative undisclosed." F.2d, 738.9 16 petition rehearing, panel Appeals, per Judge Newman, rehearing passage Benefits Reform 1984, Pub.L. 98-460, 98 1794, alter holding members' comply writ certiorari We granted certiorari, 474 815, 57, 46 (1985), affirm. III 17 Petitioners renew here arguments grounds inclusion groups claimants: bring Secretary, consider embodied contend provision sets bounds jurisdiction. foreclosed our declared 764, 2466.10 limit limitations, sovereign immunity strictly construed. difficulty agreeing statement. Block North Dakota, 461 273, 287, 1811, 1819-1820, 75 840 Accepting proposition, however, answer equitable can construing we careful "assume narrow Congress intended," United Kubrick, 444 111, 118, 100 352, 357, 62 259 (1979), construe "unduly restrictively." Block, 1820. Honda Clark, 386 484, 87 1188, 244 (1967), congressional intent, called case, "apply traditional principle. 501, 1197.11 argue stands proposition permissible public treasury directly affected. decline hold doctrine limited. When application particular scheme, there justification limiting involve monetary relief. 19 determine, therefore, facts. designed "unusually protective" claimants. 2251. authorized toll limit,12 expressing clear intention allow some cases. extend sought, arise "so great deference judgment inappropriate." 330, 900. conclude "traditional principle" "consistent overall purpose" "nowhere eschewed Congress." 1197. conclude, moreover, compelling. explained: 21 "All permitted expire Government's ineligibility faithfully executing laws States. Though knew denial loss know basis systematic rendered challenge. Where prevents rights, tolled reasonable opportunity learn cause action. full extent uncovered course litigation, notwithstanding requirement." 738 (citations omitted). 22 addition serving customary purpose,13 mechanism move speedy resolution bureaucracy processes millions annually. Thus, interest Government. Tolling, rare this, undermine when viewed connection statute. where, stated, IV 23 erred obtain "final decision" To proceeding Only proceeds receives At outset, note lawsuit filed, too late large number claims, since expiration barred access claimants, "[m]embers aware existed," 1118; Part III, 24 remains include class. Resolution aided upon (1975); supra; Ringer, 466 602, 2013, 80 622 Our teach section "consists elements, purely 'jurisdictional' sense cannot waived case. element prescribed exhausted. nonwaivable shall Secretary." 899. 25 Ordinarily, discretion decide But "cases having issue resolved promptly 26 Two factors influenced finality necessary. First, constitutional "entirely [a] entitlement." Second, rested "on postdeprivation hearing." 331, petitioner "at colorable dependency erroneous termination damage way recompensable retroactive payments." 27 28 seeking, ordeal go trigger medical setback. Many hospitalized trauma cut off. Interim adequately protect harm. Nor ultimate success manage appeals." 1118. here, like "[w]e reason disturb Chief Weinstein's conclusion irreparable." 736. especially sensitive seeks merely enable procedure place. 29 Finally, "intensely practical." 11, 901, 11. 30 "Exhaustion generally matter preventing premature interference processes, function efficiently correct errors, afford parties courts experience expertise, compile record adequate review." 765, 2467. solely mechanical factors, guided purposes served materially distinguishable sues alleging mere deviation proceeding. normal course, errors correctable subsequent alert deviation. Because expertise administering ordinarily factual context. today suggest whenever alleges proceedings. 32 These stand different footing arguing incorrectly regulation. systemwide, unrevealed inconsistent critically important ways depend before it; rather, precisely being adhered agencies pressure therefore futile. Under unique circumstances, nothing gained permitting compilation detailed record, expertise. Cf. McKart States, 395 185, 200, 89 1657, 1666, 194 (1969). 33 addition, order paid interfere role determiner relevant Indeed, ordering simply reopened level, showed it, instead alerted charge undisclosed improperly innumerable 34 assert that, might despite policy. likely many disqualified Such observations, serve remind us why vast majority cases; aid deciding excused.14 V 35 bridge bureaucracies take certain actions unknown public. every legal requirements, arguably touches outcome cases, excusing But, whatever outer today, falls "hard" arise, 36 inconvenience result today. capability duty prevent exist fair neutral procedure. 37 ordered. physician employed contract His written becomes part claim. See, e.g., Plaintiffs' Ex. 50, p. 10; App. 148, 158; Record Doc. 73; Tr. 27. weight later review. 1125 provided separate cessation XVI. recipient ALJ requests 416.1407, 416.1415 part: "Any individual, party, irrespective amount controversy, civil commenced mailing allow. plaintiff resides, principal place business, or, reside business district, Columbia. copy transcript complained based. power enter, pleadings affirming, modifying, reversing without remanding rehearing. fact, supported evidence, conclusive. 1983 "yielded vocational allowances disabilities. change precipitated preliminary injunction issued December 22, 1982, Mental Association Minnesota Schweiker, 554 157 (D.Minn.1982), aff'd, 720 965 (8th Cir.1983)." added: "On contrary, relied bureaucratic instructions overruled opinions consulting instructed deny Physicians pressured reach 'conclusions' contrary professional beliefs felt, very least, additional needed gathered form realistic assessment. resulting supremacy judgments flaunting published, objective spirit letter Act. "The practices violated requirements her Defendants presuming automatically translates into five. done reduced paper charade completed cursory report checked off Medical experts demonstrated symptoms restrictions measure withstand stress even demanding work." ultimately defined trial consisting of: and/or who, between 1980 May 15, Determinations psychotic nonpsychotic (i.e., determined 404.1520(c) 416.930(c) Appendix Regulation), defendants' Pet. Cert. 65a. estimated 50,000 residents. 729, 731 notify reopened, inform pending option existing reopening 65a-66a. affirmed award portion Appeals' decision. alternative jurisdiction, 1361 "in event review, unavailable members." 739. available, mandamus reject Salfi jurisdictional. premised timely below. 2466. Were declined citizens residents Japanese descent recover funds vested Trading Enemy 40 411, 50 U.S.C.App. seized American assets businesses owned nationals. After war return rightful owners owners' creditors. central problem revolved around schedule payments allowed pendency related litigation scheme principles so. extensions considerations fairness extension filed illness, accident, destruction records, mistake. misunderstands collect necessary information, undertook "misled" 404.911, 416.1411 concerns support explained Pipe & Construction Co. Utah, 414 538, 554, 94 756, 766, 38 713 (1974), periods 'designed promote justice surprises revival slumber lost, memories faded, witnesses disappeared. theory just unjust put adversary defend free stale comes prevail prosecute them' (quoting Railroad Telegraphers Railway Express Agency, Inc., 321 342, 348-349, 64 582, 586, L.Ed. 788 (1944)). 1984 comprehensive revisions reaffirmed 2(d) (98 1797), remand redetermination new improvement standard, involving improvement, member personally took approach impairments. 5(a) 1801, develop 5(c) 1802) person March 1981, reapply reevaluated standards. provisions demonstrate how agree observation rehearing: remedial legislation, enacted principally assistance numbers terminated. perverse view Congressional infer beneficial legislation fruits entered unlawfully processed What urging renders stringent Act." 31,

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