Court Opinion

ID: 9483753
Source: CourtListenerOpinion
Date Created: 2023-08-05 09:30:37.334832+00
Date Added: 2024-06-11T17:49:49.243377
License: Public Domain

JOHN R. GIBSON, Circuit Judge.
This appeal arises from a denial of attorneys’ fees under the Equal Access to Justice Act. We hold that the government’s position was not substantially justified until it filed a motion for remand with the district court. We reverse.
On June 16, 1986, Mary L. Koss applied for insurance benefits, disabled widow’s benefits, and supplemental security income benefits under Title II and Title XVI of the Social Security Act, 42 U.S.C. §§ 401-433 (1988) and 42 U.S.C.A. §§ 1381-1383 (West Supp.1991). Koss alleged that she was entitled to disability benefits because pain in her left leg and back prevented her from working. She was denied benefits at the initial stage of the administrative process, and upon reconsideration. Koss then requested a hearing before an Administrative Law Judge, and she appeared pro se in that proceeding. Doctors Morrow and Leydig examined Koss on behalf of the Social Security Administration. Dr. Morrow diagnosed Koss as suffering from superficial venous varicosities, which would not significantly impair her ability to be gainfully employed. Doctor Leydig could not make a diagnosis of objective disability, but stated that he “believe[d] that there is considerable functional overlay,1 present which accounts for most of Koss’ complaints.” He also suggested that a “neurological examination might offer some reason for her disability.” Koss testified at length about *1228pain in her leg and back, and that she had seen a Dr. Mitchell on fifteen occasions. The AU denied Koss’ application for benefits and concluded that Koss' functional limitations were not supported by medical evidence. The AU failed to obtain Dr. Mitchell’s treatment records or evaluate her complaints of pain under the guidelines set forth in Polaski v. Heckler, 739 F.2d 1320 (8th Cir.1984), and its progeny.
The appeals council incorporated the evidence by reference and affirmed the denial of disability. Koss then appealed pro se to the district court and sought the appointment of counsel. The Secretary filed an answer denying that Koss was entitled to benefits and stating that substantial evidence supported the findings of fact contained in the final decision. The Secretary asked that the decision be affirmed, and that the action be dismissed for a failure to state a claim upon which relief could be granted.
The district court appointed counsel, who filed a motion for summary judgment. Counsel articulated the AU’s duty to fully and fairly develop the record, a well established legal principle in this circuit, which applies even when a claimant is represented by counsel. Vaughn v. Heckler, 741 F.2d 177, 179 (8th Cir.1984). The motion also stated that although Koss testified that she had seen Dr. Mitchell fifteen times, the AU failed to obtain her treatment records. Counsel pointed out that the AU failed to obtain any kind of psychological or neurological consultation despite Dr. Leydig’s opinion that Koss suffered a “considerable functional overlay,” which accounted for most of her complaints. Counsel argued that the AU’s failure to develop the record was contrary to Eighth Circuit precedent, citing as an example Benson v. Heckler, 780 F.2d 16, 17-18 (8th Cir.1985). Finally, counsel argued that the AU failed to adequately develop a record of Koss’ subjective complaints of pain as required by Polaski.
The Secretary responded by filing a motion for remand. In the memorandum in support of the motion to remand, the Secretary referred to the AU finding that Koss’ functional limitations were not supported by medical evidence. The Secretary acknowledged that although the AU based his decision on the reports of two consulting physicians, there might be records from treating sources that were not submitted to the AU. The Secretary conceded that the AU failed to pursue the possibility of a psychological origin for Koss’ impairment despite Dr. Leydig’s statement. The Secretary also acknowledged that the AU did not adequately evaluate Koss’ subjective complaints of pain under the Polaski guidelines. The district court remanded the case, and on remand, the AU found that Koss suffered from a psychological impairment, and had been disabled since June 14, 1986. The Secretary therefore awarded benefits.
Koss filed this subsequent action in the district court requesting an award of $8,343.15 in attorneys’ fees pursuant to the Equal Access to Justice Act, 28 U.S.C. § 2412.2 The district court, however, found the Secretary’s actions to be substantially justified, and denied Koss’ request for attorneys’ fees. Koss v. Sullivan, No. 87-1913C(6), Memorandum and Order, at 3 (E.D.Mo. November 27, 1991). Koss appeals the denial of attorneys’ fees.
We review a denial of attorneys’ fees under the Equal Access to Justice Act for an abuse of discretion. Pierce v. Underwood, 487 U.S. 552, 562-63, 108 S.Ct. 2541, 2548-49, 101 L.Ed.2d 490 (1988); Truax v. Bowen, 842 F.2d 995, 997 (8th Cir.1988).
Under the Equal Access to Justice Act, a prevailing party is entitled to an *1229award of attorneys’ fees unless the government’s actions were substantially justified or “special circumstances make an award unjust.” Sullivan v. Hudson, 490 U.S. 877, 883, 109 S.Ct. 2248, 2253, 104 L.Ed.2d 941 (1990). Koss is a prevailing party. A disability benefits claimant is a prevailing party if the claimant ultimately obtains the benefits sought on appeal to the district court. See Sullivan, 490 U.S. at 886-87, 109 S.Ct. at 2254-55; Swedberg v. Bowen, 804 F.2d 432, 434 (8th Cir.1986).
“Substantially justified” means “justified to a degree that could satisfy a reasonable person” or having a “reasonable basis in law and fact.” Pierce, 487 U.S. at 565, 566 n. 2, 108 S.Ct. at 2550, 2550 n. 2; Welter v. Sullivan, 941 F.2d 674, 676 (8th Cir.1991). The question we ask here is at what point in time were the Secretary’s actions substantially justified. Certainly, the Secretary is to be commended for seeking a remand for further administrative action. Before that time, however, we cannot conclude that the Secretary’s actions were “justified” or had a “reasonable basis in law or fact.” As the Secretary admitted in its motion for remand, it failed to follow established precedent by failing to pursue the psychological aspect of Koss’ disability, obtain the medical records of a treating physician, or analyze Koss’ claim of pain under Polaski.
The statements filed in the Secretary’s memorandum in support of its motion for remand are admissions that its position was not substantially justified before the ALJ, the appeals council, or when the Secretary filed an answer denying any responsibility for benefits to Koss. The Secretary filed the motion for remand on July 31, 1989, adopting the very reasons vigorously articulated by Koss’ appointed counsel in her summary judgment motion. It was at this point that the Secretary adopted a position that was “substantially justified.”
The district court for the Eastern District of Missouri concluded that the Secretary’s failure to follow Eighth Circuit precedent may be the basis for concluding the Secretary’s actions were not substantially justified. Teramoto v. Bowen, 771 F.Supp. 292, 295 (E.D.Mo.1991); see also Trundle v. Bowen, 830 F.2d 807, 810-11 (8th Cir.1987) (concluding government’s position not “substantially justified” based, in part, on ALJ’s failure to follow Polaski guidelines).3
We also look to the language of 28 U.S.C. § 2412(d)(1)(A), which provides that a prevailing party should be awarded fees unless ... “special circumstances make an award unjust.” There are no “special circumstances” in this case. On the other hand, the denial of fees to counsel whose efforts brought about the Secretary’s change of position is unjust.
For these reasons, the Secretary’s position was not substantially justified until the Secretary filed its motion for remand, and the district court abused its discretion in refusing to award attorneys’ fees for services rendered by counsel to that point in time. See Truax, 842 F.2d at 999 (Heaney, J., dissenting) (approving benefits for legal work after date of controlling decision).
Accordingly, we reverse and remand for a determination and award of attorneys’ fees consistent with this opinion.

. Functional overlay is defined as:
The emotional response to physical illness. It may take the form of a conversion or hysterical response, affective overreaction, prolonged symptoms of physical illness after signs of the illness have subsided, or combinations of these reactions. Functional overlay may appear to be the primary disease and require skillful diagnosis to determine the actual cause of illness.
Taber’s Cyclopedic Medical Dictionary, 16th Ed. at 705 (1989).

. 28 U.S.C. § 2412(d)(1)(A) provides:
Except as otherwise specifically provided by statute, a court shall award to a prevailing party other than the United States fees and other expenses, in addition to any costs awarded pursuant to subsection (a), incurred by that party in any civil action (other than cases sounding in tort), including proceedings for judicial review of agency action, brought by or against the United States in any court having jurisdiction of that action, unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust.

. In Brouwers v. Bowen, 823 F.2d 273 (8th Cir.1987), we affirmed the district court’s conclusion that the government’s position was "substantially justified.” Id. at 276. The facts of that case are different from those here, as intervening events contributed to the claimant’s success on remand. Id. at 275.