Document: 442 U.S. 682 99 S.Ct. 2545 61 L.Ed.2d 176 CALIFANO, Secretary of Health, Education and Welfarev.YAMASAKI et al. No. 77-1511. Argued March 19, 1979 Decided June 20, Section 204(a)(1) the Social Security Act (Act) authorizes Department Education, Welfare to recoup erroneous overpayments made a beneficiary under old-age, survivors', or disability insurance programs by decreasing future payments which overpaid person is entitled. However, § 204 (b) commands that "there shall be no adjustment to, recovery United States from, any who without fault if such would defeat purpose this subchapter against equity good conscience." Under Secretary's practice, after an ex parte determination (a) overpayment has been made, recipient notified determination, may file written request seeking reconsideration asking waive in accordance with (b). If, upon review papers, decision goes recipient, recoupment begins given opportunity for oral hearing only he thereafter continues object recoupment. The seek subsequent administrative review, finally federal court 205 (g) Act, provides person, final was party, obtain instituting civil action. Respondents, had unsuccessfully sought relief from determinations, instituted actions, alleging because they not adequate notice before began, procedures violated both Due Process Clause Fifth Amendment. In each action, class certification sought, one action it requested nationwide. respective District Courts granted certification, held were unconstitutional, ordered injunctive relief. Court Appeals consolidated cases on appeal upheld classes. On merits, court, directly addressing respondents' statutory claims, held, inter alia, when waiver pursuant 204(b), required but prior 204(a) dispute centered computational error payment problem demanding evaluation credibility. Held: 1. Recipients 204(b) are entitled prerecoupment hearing, those merely so Pp. 692-697. its face, requires make decision, like concerning fact overpayment, accurate. 693-695. Neither nor standards require hearings as requests whether occurred. rare instance credibility relevant claim sufficient grant few involve respect right recoup, nature involving determinations "fault" "against conscience" makes essential waiver. 695-697. 2. Nothing 205(g) prohibits awarded case. 697-706. Where district jurisdiction over claims members requirements set out 205(g), also discretion Fed.Rule Civ.Proc. 23 certify litigation claims. 698-701. There abuse certifying nationwide class. Pp.701-703 (c) While classes certified here exceed bounds permitted 205(g)'s "final decision" requirement include persons have filed past will do future, nevertheless there basis altering actually granted, did meet requirement. 703-704. (d) Injunctive proceeding, nothing either language legislative history statute indicating Congress intended preclude 704-706. 564 F.2d 1219, affirmed part reversed part. Peter Buscemi, Washington, D. C., petitioner, pro hac vice, special leave Court. Stanley E. Levin, Honolulu, Hawaii, respondents. Mr. Justice BLACKMUN delivered opinion 1 Petitioner, (HEW), determined respondents, beneficiaries overpaid. He seeks withholding benefits respondents otherwise Respondents turn 42 U.S.C. 404. primary questions case petitioner must begins, 405(g), permits 2 * 53 Stat. 1368, amended, 404(a)(1), administered HEW. particular, 3 however, expressly limits authority conferred 204(a)(1). forth 404(b), 4 conscience."1 5 undertaken define terms employed 204(b). his regulations, "without fault" means neither knew should known information based incorrect. 20 CFR 404.507 (1978). For example, justifiably relied official source within Administration fault." 404.510. 6 regulations say "defeat subchapter" "deprive income ordinary necessary living expenses." 404.508(a). Those expenses defined include, among other things, food, rent, medical bills. §§ 404.508(a)(1) (2). Recoupment "because reason incorrect payment, relinquished valuable . changed position worse." 404.509. An example detrimental reliance permitting private hospital lapse mistaken expectation receiving benefits. Ibid. 7 practice notify then shift burden (i) contest accuracy (ii) forgive debt 204(b).2 If files waiver, deferred pending request. Claims Manual 5503.2(c), 5503.4(b) (Dec. 1978) (Claims Manual). papers sent seven regional offices where reviewed. 8 office begins. recipient's monthly reduced terminated3 until recouped. Only present story someone decide That takes form on-the-record de novo evidential independent examiner. 404.917, 404.931 Council, 404.945, court. 405(g). decided initial error, amounts wrongfully recouped repaid. II Elliott Case4 9 Hawaii respondents,5 them overpayments. After unsuccessful attempts relief, brought suit challenging legality procedures. They alleged that, received inadequate Amendment Constitution. declaratory cease time provided hearing. App. 11-21. 10 "all social security old age benefit recipients resident State being subjected their 404(a) grounds disputed issues relating actions." Id., at 35. found mandamus statute, 28 1361, said due process provide informal maker holding, Goldberg v. Kelly, 397 254, 90 1011, 25 287 (1970), Clause, welfare could terminated Constitution modified inform more fully Although discuss claim, judgment constitutional Weinberger, 371 F.Supp. 960 (1974). Buffington Case 11 Relying annual earnings reports, individual previous years.6 notice, named unable halt Western Washington. They, too, contrary class, injunction ordering repayment unlawfully withheld, began again. 188-201. 12 composed individuals eligible [old-age survivors' benefits] whose adjusted hearing." excluded residents Eastern Pennsylvania, suits raising similar brought. 259. See, e. g., Mattern 519 150 (CA3 1975). As precautionary measure, all participated plaintiffs plaintiff issues, merits previously rendered. 259-260. 13 summary 1361.7 It enjoined having maker. amended about Civ. 734-73C2 (W.D.Wash. Oct. 22, 1974). 262-265. 14 Ninth Circuit two disposition appeal. unreported opinion, Nos. 74-1611 74-3118 (Oct. 1, 1975), Pet. Cert. 40A-84A, complaints presented substantial 1361 proper. 23(b)(2), finding counsel sufficiently skilled experienced represent rejected contention certified. Rule improper, believed practical matter damages, manageability problems present. indicated sue individually result unnecessary duplication evil designed prevent. Appeals, holdings unconstitutional. 15 Subsequent Court, Mathews Eldridge, 424 319, 96 893, 47 18 (1976), does termination We petitions writs certiorari Mattern, supra, vacated judgments below, remanded further consideration light Eldridge. 425 987, 2196, 48 812 (1976). 16 remand, adhered features original decision. 1219 (1977). reaffirmed holding statute. noted while Eldridge able assert Weinberger Salfi, 422 749, 755, 764, 95 2457, 2462, 2466, 45 522 (1975), some doubt therefore extraordinary remedy invoked. these actions foreclosed jurisdictional limitations contained 205(h), enforce rights, "to recover claim" 17 distinguishable. One three cited support conclusion particular relevance here. handling waivers created undue risk deprivation. unlike issue frequently depended credibility, ascertained submission relied. thus requested, required, routine centering demand credibility.8 specified six meet, including rights receive submit evidence, cross-examine witnesses, counsel, impartial officer, transcript made. F.2d, 1235. "plainly clearly communicated." suggested accomplished matters statement forms available purpose, description 1236. 19 petition writ properly Secretary, constitutionally defective. Certiorari granted. Califano Elliott, 439 816, 75, 58 106 III A usually pass considering question. New York City Transit Authority Beazer, 440 568, 582-583, n. 1355, 1364, 59 587 (1979); CIO, 335 106, 110, 68 1349, 1351, 92 L.Ed. 1849 (1948); Ashwander TVA, 297 288, 347, 56 466, 483, 80 688 (1936) (concurring opinion). coordinate branches government, well reluctance conscious fallibility speak our utmost finality, see Brown Allen, 344 443, 540, 73 397, 427, 97 469 (1953) (Jackson, J., concurring result), counsels adjudication. And "a construction fairly possible [a serious constitutionality] avoided," Crowell Benson, 285 62, 52 285, 296, 76 598 (1932), adopt construction. willing assume congressional solicitude fair procedure, absent explicit contrary. See Greene McElroy, 360 474, 507-508, 79 1400, 1419-1420, 1377 (1959). 21 now us gave principles somewhat short shrift declining itself first, find read Secretary. With occurred, we agree reject so. essential, determine result. A. 22 pre-recoupment imperative voice,9 says person" qualifies 166, 32. Echoing requirement, "proper" adjustments recoveries implication qualifying "proper." Insofar reading accord manner presently administers No preliminary taken place, default proper 5503.4(b). This interpretation reinforced comparison sections Act. strikingly 225,10 suspension eligibility decided. Richardson Wright, 405 208, 788, 31 151 (1972). hand, analogy drawn between 303(a)(1), 503(a)(1), California Human Resources Dept. Java, 402 121, 91 1347, 666 (1971), interpreted unemployment eligibility.11 303(a)(1) addresses timing mandatory imply mandated act—here recoupment, benefits—is precede B 24 heart concerns making protect improper regard, 204(a), distinguished noted, relatively straightforward computation ordinarily correct mistakes. 1231; Mathews, 582 248, 255-256 1978). Many reports themselves submitted. But case, think sift through leeway administration allowed. Nor tolerant than strict issue, afforded cases. shaped "risk inherent truthfinding applied generality cases, exceptions." U.S., 344, S.Ct., 907. inconsistent principle beneficiary's resolving disputes. 258. 26 By contrast, hardly seems discharge duty accurate subsection, assess absence These apply 204(a). "broad 'fault' standard inherently subject factual adversarial input." Mitchell W. T. Grant Co., 416 600, 617, 94 1895, 1905, 40 406 clear, depends pertinent circumstances" "intelligence physical mental condition" faith. how can evaluated personal contact decides Evaluating fault, judging reliance, assessment submissions particularly inappropriate way distinguish genuine hard luck fabricated tall tale. 269, 1021. 27 consequences injunctions entered confirm reasonableness interpreting compliance orders, beginning calendar year 1977, what term conference employee presents testimony evidence cross-examines recipient." Brief 46. Of approximately 2,000 conferences January 1977 October 1978, 30% resulted reversal Petitioner rate confirms view misjudge number properly, imposed significantly furthers goal no" appropriate. IV Without full question, expressed doubts availability Act's judicial provision. invoked mandamus, 1361. contends though concedes argues section. alternative even appropriate, certified, and, whom courts jurisdiction. cannot suit. contentions entirely, reach question available. 29 connection 205(g),12 argument, relies "[a]ny individual," speaks "any [the plaintiff] party," empowers enter affirming, modifying, reversing Secretary." language, says, indicates contemplated case-by-case adjudication incompatible 30 facts 205(g)13 argument regard. every considered concluded 205(g),14 distinguishes evinced insufficient statute's plain exaggerated need actions. Restricted effect adverse decisions abide rendering them. repetitious order establish legal beyond confines afford 205(g). contains express limitation prescribes usual type "civil action" routinely array litigation. Federal turn, Rules "govern procedure nature." (Emphasis added.) 23(b)(2). direct expression intent depart course trying nature" established appropriate overturn departments Executive Branch Government authorized. 32 clear exempt operation Civil Procedure. individual" contemplates indicate providing controlling, permissible. Indeed, wide variety provisions plaintiffs, never thought unavailable 1343 (civil rights; "authorized law commenced person"); (mandamus; compel certain officials agencies perform owed plaintiff"); 1132(a) (Employee Retirement Income 1974 "by participant beneficiary"). unusual statutes, plaintiff, since class-action device allow exception rule conducted behalf parties only. 33 Moreover, consistent emphasized least long membership limited Norton 427 524, 535-537, 2771, 2776-2778, 49 672 nn. 4-8 (1976) (STEVENS, dissenting). member exercise various single proceeding. 34 Finally, note peculiarly involved common whole. applicable same ultimate little monetary value. unlikely differences background affect outcome issue. saves resources potentially affecting litigated economical fashion 23. 35 36 next assuming maintained sustain unwise forecloses reasoned artificially increases pressure docket endowing national importance adjudicated narrower context, might immediate attention. citing Dayton Board Brinkman, 433 406, 2766, 851 (1977), burdensome defendant complete plaintiffs. 37 23, geographical scope conformity Rule. Since size associated 23(b)(3) directly. jurisprudence, dictated extent violation established, Board, 414-420, 2772-2775. proper, lies necessarily mean redress complaining parties. 38 concede force foreclosing different judges, increasing, pressures Court's docket. often preferable several gain contexts. reason, asked take care ensure indeed it, improperly interfere districts. decline extreme most arising committed first conclude abused especially sensitivity ongoing districts, C 39 satisfied jurisdiction.15 argues, erred awarding recovery. failed construed objects plainly too broad. Both included future.16 them, 41 errs, suggesting lower persons. aptly summarized Courts, "when waiver." 1222. Because claiming involves filing prerequisites objection definition taken, D granting power "affirming, Secretary," encompass equitable implemented authorized Invoking maxim party law, simply hearings. face order, forced, suspend 43 grudging. Absent clearest command Congress, retain Porter Warner Holding 328 395, 398, 66 1086, 1089, 1332 (1946); Scripps-Howard Radio FCC, 316 4, 9-11, 62 875, 86 1229 (1942). history17 suits. 44 Injunctions play role stay purposes "reverse" rights. interests prevent repetitive comply enforceable contempt "[s]urely intend reluctant delay remote eventuality feel bound court." 535, 2777 (dissenting supported implicit three-judge convened Jimenez 417 628, 2496, 363 (1974), opinions four Appeals.18 V reasons, hold hearing; entitled; permissible 205(g); class; filed; 46 ordered. POWELL took part, 404(a), provides: "Whenever finds less amount subchapter, prescribed follows: "(1) [of] amount, decrease entitled, estate refund excess payable wages self-employment combination foregoing." reads full: "In during average old-age exceeded $500, 3.4% 45, 33. figures beneficiaries. 960, 967 (D.C.Haw.1974). altered respects initiation litigation, including: rather terminate completed, nonfraud reduces 25%, 5515 (Jan. 1979); report excessive before, after, 1223 (CA9 1977). changes moot Respondent Evelyn died 1973. Counsel respondent moved substitute Nancy Yamasaki caption motion 441 959, 2402, 60 1063 (1979). heretofore published refer captions. Isabelle Ortiz, Jordan Silva, John Vaquilar, filed. Raymond Gaines errors. F.Supp., 965-966. Fannie wife's Her husband revealed limit. Frances Biner 1972 check her employer showed reported. 1224-1225. asserted Administrative Procedure 701 seq. Thereafter, Sanders, 430 99, 980, 51 192 federal-court rely Third remand ever 248 (1978), cert. sub nom. 78-699. statutes authorizing Most entirely permissive. "is required," 1442, 1453 (serviceman's family annuity benefit); agency "may waive" showing 4108(c) service training expenses), 5922(b)(2) (foreign station allowances); head "shall provision appropriate", 1383(b) (supplemental income); waived," 2774(a) (military pay). form. resembles "equity statutes: 3102(a) (veterans' benefits); 1395gg(c) (Medicare); 231i(c) (Railroad 1974); 352(d) Unemployment Insurance Act). Even identical material respects. use word "shall," reference eliminate discretion, Hecht Co. Bowles, 321 321, 327-331, 64 587, 590-592, 88 754 (1944), imposes decide. recovery, phrased equally terms, reasonable infer exalt H.R.Rep. 728, 76th Cong., 1st Sess., (1939); Hearings House Committee Ways Means, 2287-2288 S.Rep. 404, 89th pt. p. 256 (1965), U.S.Code Cong. & Admin.News 1965, 1943; 744, 90th 257 (1967), 1967, 2834. 225, 425, "If obtained submitted him, believes [disability ceased disability, individual's ceased." 303(a) "The Labor unless includes for— Such methods reasonably calculated insure compensation due." "Any individual, sixty days mailing him allow." noting sparseness points fill gap "specify remedy, any, open claimant event denied [Social Security] Board." 734, (1939). passage claimant" "his claim," believes, bolsters Caswell Califano, 583 9, (CA1 1978); Jones 576 12, 21-22 (CA2 Liberty Alliance Blind 568 333, 344-346 1977); Johnson 539 1111, 1125-1126 (CA8 1976); 523 689, 694-697 (CA7 denied, Jimenez, 912, 3200, 1204 54-55. five representatives advise request, personally touch local objected initiated, Gaines, status timely. 965, 8, 966, 14. show Silva denied. 16. Ortiz expresses reservation she met 55. reconsideration, ruling notice. breadth caused inclusion far larger who, challenge Appeals' none send meaning consider members. 12; re Letourneau, 559 892, 894 1125-1126; 694-697. generally 763

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