Richardson V. Perales - Discussion

Discussion

The Supreme Court held that Dr. Leavitt's interpretation of the medical data was acceptable evidence in an agency hearing, even if it would have been inadmissible under rules of evidence applicable to court procedure. Justice Douglas joined by Justice Black and Justice Brennan dissented saying that although Section 556(d) of the Administrative Procedure Act provided that "ny oral or documentary evidence may be received," which could include hearsay evidence, hearsay evidence could not by itself be the basis for an adverse ruling. Written reports by physicians who have examined claimant for disability insurance benefits under Social Security Act constitute "substantial evidence" supporting a nondisability finding within the standard of 205 (g) of the Act, notwithstanding the reports' hearsay character, the absence of cross-examination (through claimant's failure to exercise his subpoena rights), and the directly opposing testimony by the claimant and his medical witness; and procedure followed under Act does not violate due process requirements.

This case distinguishes the termination of welfare benefits already granted Goldberg v. Kelly and the due process requirements in termination from Social Security disability benefits not yet granted. The hearsay nature of medical records does not preclude their use in determining the disability status of a claimant in a social security case. The use of medical or case advisors to clarify complex medical issues is also encouraged. The court was critical of so-called “stacked hearsay” - situations where medical reports are generated from review of other medical reports, without examination of the patient. The practice of hiring doctors by HEW and Social Security to render unfavorable opinions toward claimants, without ever examining them, was condemned by the Court. The Social Security statute is to be interpreted liberally.